Opinion

Editorial: Why did Apple pick N.C.? Investments, not tax cuts

Tuesday, May 4, 2021 -- Apple didn't come to North Carolina because of tax or regulatory cuts. It came because of over a half-century of focused expanding investment in key areas: top-notch public university system, establishing quality public schools; expanding early childhood education; infrastructure to move commerce and workforce development. North Carolina's past leaders, Republicans and Democrats, sought to excel in important things like establishing the innovative Microelectronics and Biotechnology centers.

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CBC Editorial: Tuesday, May 4, 2021; Editorial #8664
The following is the opinion of Capitol Broadcasting Company.
It was a too-uncommon display of bipartisanship and government unity last week at the announcement Apple was going to invest about $1 billion, develop its first east coast campus, an engineering hub in the Triangle and create 3,000 high-paying jobs in North Carolina.
On the lawn of the Executive Mansion Democratic Gov. Roy Cooper and Commerce Secretary Machelle Sanders were joined by Republican legislative leaders House Speaker Tim Moore and Senate President Pro Tem Phil Berger as well as the legislature’s Democratic Party leaders Sen. Dan Blue and Rep. Robert Reives. They were all smiles for the display of unity and accomplishment.
They offered a rare joint statement, posted on the state Department of Commerce website: “Innovation has long been North Carolina’s calling card and Apple’s decision to build this new campus in the Research Triangle showcases the importance of our state’s favorable business climate, world-class universities, our tech-ready workforce and the welcoming and diverse communities that make so many people want to call North Carolina home,” they said. “We are proud to work together to continue to grow our economy and bring transformational industries and good paying jobs to North Carolina.”
Still amid the exhibition, Berger could not resist partisan boasting: “We've worked to move North Carolina from the bottom of the pack in business climate ratings to near the top.”
That is a myth, fostered by some partisan thinktanks and with little basis in reality. For a decade before 2011 when Berger started his reign as Senate President Pro Tem, the non-ideological Site Selection Magazine ranked the state’s business climate tops in the nation 9 of the 10 years. From 2011 through 2020, North Carolina ranked first only twice – though it’s been among the top 3 for all but one of those years. Since 2006 when Forbes Magazine started ranking best states to do business, North Carolina has never been lower than fifth.

So much for bottom of the pack.

Berger further sought to suggest that the General Assembly’s business tax and regulation cutting binge somehow was a lure. “We've spent 10 years enacting responsible budget, lowering taxes and making regulations reasonable the winning formula for job creation.”
But that’s not what experts say. When the experts who do the Site Selection Magazine rankings rate their top criteria, most important were: “1. Workforce skills 2. Workforce development. 3. Transportation infrastructure.” Taxes, incentives and legal climate are lower in their top-10 criteria.

Apple didn’t come to North Carolina because of tax or regulatory cuts. It came because of over a half-century of focused expanding investment in key areas: a top-notch public university system, establishing quality public schools; expanding early childhood education; infrastructure to move commerce and workforce development. North Carolina’s past leaders, Republicans and Democrats, sought to excel in important things like establishing the innovative Microelectronics and Biotechnology centers.

The legislature Berger leads today has neglected that kind of dedication to sustained investing in the state’s future. Otherwise it wouldn’t be ignoring the Leandro education roadmap, bond issues for roads, education and other infrastructure as well as expanding Medicaid.

North Carolina cannot afford to live off of a legacy that it does not continue to support. Failure to adequately invest jeopardizes the ability to attract new and expanding companies that spread jobs and opportunities to overlooked or missing out parts of the state.

If North Carolina aims to attract businesses that have plans for their future then the state must also demonstrate the same.

Legislative leaders need to take their finger off the PAUSE button and make the strategic investments beyond merely OK enough to get by. If North Carolina seeks to attract businesses that are focused on achieving excellence, it must also demonstrate the same.

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