RALEIGH, N.C. (AP) — The North Carolina General Assembly wrapped up this year’s chief work session Thursday after overriding Democratic Gov. Roy Cooper’s vetoes, putting a constitutional amendment about citizens and voting on the November ballot and sending to Cooper’s desk many additional bills.

But during its two months of work, the Republican-dominated legislature stumbled by failing to pass a comprehensive budget-adjustment measure for the next 12 months. Attempts at putting additional constitutional referendums before voters fell short. And bills on other contentious topics didn’t get over the finish line.

“I wish we had been able to get more done. I think if we had gotten more done, we’d have a little more to talk about,” Senate leader Phil Berger told reporters after his chamber passed an adjournment resolution. But, Berger added, “there was a lot of productive activity that took place.”

The two chambers disagreed over how much more to spend for the fiscal year that began July 1. That included whether state employees and teachers should get raises that are higher than what were already planned in the second year of the already enacted two-year state budget.

And while the House and Senate managed to approve $67.5 million to help for six months child care centers at risk of closing after federal grants expire, they couldn’t agree on setting aside close to $500 million for scholarships and other funds for K-12 students to attend private schools or receive services. GOP leaders in the two chambers identified the funding as a leading priority to address a spike in applications — and children on waiting lists — this year after the General Assembly removed income limits to receive Opportunity Scholarships.

The Senate initially sent the House a standalone spending measure for those private-school programs, but House members wanted the private-school money accompanied by public school spending increases within a budget bill, House Speaker Tim Moore said. Now it looks like tens of thousands of families will miss out, at least in the short term.

“It would be a real shame and a missed opportunity if we don’t get those Opportunity Scholarship dollars out,” Moore told reporters earlier Thursday. “At the same time, we need to make sure we’re doing all that we can for our public schools.”

Moore said later Thursday he was hopeful that the money could still be approved in time for the school year.

Lawmakers will still get another crack at these and other matters. The General Assembly formally agreed to reconvene occasional short sessions for the rest of the year, mainly to address veto overrides or emergencies. But they also could deal with larger matters.

The Republican leadership succeeded Thursday by overriding Cooper’s three vetoes so far this year, extending a winning streak dating back to last year, when all 19 of Cooper’s vetoes were overturned. The GOP holds small veto-proof majorities in each chamber. Following votes on Wednesday in the House, the Senate completed the overrides of measures that alter the state’s face masking policy, youth prosecutions and billboard maintenance rules.

The constitutional amendment heading to the ballot seeks to change language in the state constitution to clarify that only U.S. citizens at least 18 years of age and meeting other qualifications shall be entitled to vote in elections. Voting by noncitizens is already illegal, but some supporters of the amendment say the current language in the constitution could be challenged so that other people beside citizens could vote.

Other amendment questions only passed one chamber. The House approved an amendment that attempts to repeal a literacy test for registering to vote that was used for decades to prevent Black residents from casting ballots. It became unlawful under the federal Voting Rights Act of 1965 and has been unenforceable. The Senate also approved a bill with two amendments — one to lower the cap on income tax rates from 7% to 5% and a second to make clear photo voter ID also applies to mail-in voting.

Legislators did have bipartisan successes in the final days. They sent to Cooper bills that would create new sex exploitation and extortion crimes and that would help combat human trafficking. And the two chambers backed a compromise measure that will allow the resumption of the automatic removal of criminal charges that are dismissed or that result in “not guilty” verdicts. Such removals had been suspended since August 2022 while problems carrying out the expunctions got resolved.

But negotiators failed to hammer out a final bill that would force sheriffs and jailers to comply with federal immigration requests to hold inmates believed to be in the country illegally. The House and Senate couldn’t resolve what to do about a sheriff who still failed to comply, said Sen. Danny Britt, a Robeson County Republican and negotiator.

And an effort by the Senate to authorize the legal use of marijuana for medicinal purposes didn’t get traction among enough House Republicans, even when the Senate attached it to another measure that placed tough restrictions on federally legal hemp products.

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Associated Press writer Makiya Seminera contributed to this report.

Apple Inc. appears to be delaying its plans to build a corporate campus in Research Triangle Park, which is sited on the boundaries of Raleigh, Chapel Hill and Durham in North Carolina.

Construction was originally slated to begin in 2026, but the tech giant has reportedly told state officials of its desire to delay groundbreaking for up to four years. The delay would be a considerable setback for the area, which anticipated substantial economic growth and job creation from the project.

The first phase of the project was expected to include six buildings across 41 acres, with a promise of a future expansion on a 281 acre site. The proposed project was intended to house roles in machine learning, artificial intelligence, and software engineering, with estimates of 3,000 jobs with salaries approaching $200,000.

As the region grapples with news of the delay, the broader implications in terms of economic development are somewhat less clear. The taxpayer-funded incentives bound up in the project may have made the development less of an unalloyed positive for North Carolinians.

Massive Taxpayer Contributions

The cost to North Carolina for securing Apple’s investment was substantial, with $845.8 million in tax breaks promised over 39 years and local incentives adding another $20 million. The all-in cost to taxpayers totaled nearly $1 billion, or roughly $333,000 per job added.

For context, this is just a few thousand dollars shy of a noted tax incentive boondoggle: the “border war” between Kansas City between Missouri and Kansas. There, some 414 jobs were created in Kansas at a cost of $340,000 per job.

The track record of the Job Development Investment Grant Program, which would facilitate the tax breaks accruing to Apple, has been mixed at best. Notable projects that have also been pushed back by the recipients of tax incentives include an agreement with Allstate to create 2,200 jobs which was made impractical by a shift to remote work and a commitment by a Vietnamese automaker to create 7,500 jobs which has been delayed until 2025.

Apple’s decision to delay the construction of its Research Triangle Park campus brings into question the future economic impact on the Raleigh-Durham area—but it is far from clear the result will be a net negative for North Carolina taxpayers.

Tax Incentives and Job Creation

The efficacy of tax incentives in fostering job creation more broadly has been long debated. While incentives are often touted as necessary to attract large companies and thereby spur economic development, evidence has for some time suggested that they may not be as effective as advertised.

One main criticism is that the incentives often result in a relocating of existing jobs rather than the creation of new ones—put differently, there is no net addition of jobs to the economy writ large, merely a subtraction from one region or state and an addition in another. This can have beneficial local effects, but those effects may be blunted by the broader net loss inherent where an expenditure is made to maintain the same total number of jobs.

The practice of offering tax incentives leads to a zero-sum game, where cities or regions engage in a destructive bidding war, each vying to spend more taxpayer money to the benefit of no one save for the corporations being fought over.

In fact, research suggests that the primary drivers of job growth are not older firms—but young firms. This would suggest North Carolina would be better off incentivizing the next Apple to start its business in the Research Triangle, rather than trying to attract existing behemoths. Newer firms inject competition, spur innovation, and are more likely to hire new workers.

Thus, policies that support the creation of new businesses, rather than providing tax incentives to existing ones, may be more beneficial for long-term sustainable development—but they don’t make the headlines.

With 29% of North Carolina child care programs saying they would close with many in the west of the state eyeing deep cuts, legislators have advanced emergency funding before a June 30 fiscal cliff.

The N.C. State House voted late June 26 to allocate about $67 million for the first half of the July 1 fiscal year in a bill that must still be approved by the Senate. The move came as a 2021 program using hundreds of millions of dollars in federal pandemic aid to boost child care was set to end. The federally funded stabilization grants that were administered by the state helped provide more than 10,000 child care slots in Buncombe, Henderson and Madison counties, state data said.

The loss of the stabilization grants would mean the closure of 29% of child care programs statewide, according to a February N.C. Child Care Resource and Referral Council survey. A report on the survey, conducted by Well World Solutions, did not make clear how many Western North Carolina programs said they would close. The Citizen Times reached out to June 26 to Well World.

Marcia Whitney, president and CEO of Verner Center, which serves 232 children as young as infants at programs in Swannanoa and Emma Elementary, said they did not want to cut salaries or raise tuition. But would have to look at eliminating positions.

“Where do we have potential? Streamlining positions and obviously cutting expenses every other place we can,” Whitney told the Citizen Times four days before the funding cliff.

Those that don’t receive free or subsidized care at Verner pay a monthly tuition of $1,656 for children up to 3 years old and $1,206 for those 3 to 5 years old.

Advocates have been asking the General Assembly in Raleigh to maintain the funding. But the Republican-controlled Senate and House were at a budget impasse.

Greg Borom, director of the WNC Early Childhood Coalition, said he had hoped legislators would step away from other budget issues and pass some kind of separate funding.

“We really can’t go through the summer without our fragile child care landscape being stabilized,” Borom told the Citizen Times June 26.

The grants were created in 2021, when Democratic Gov. Roy Cooper announced that $805 million from the federal American Rescue Plan Act would be used to boost pay for child care workers, many of whom were quitting during the pandemic.

How grants affected local child care

The stabilization grants have supported more than 10,000 child care slots in Buncombe, Henderson and Madison counties, according to the N.C. Division of Child Development and Early Education.

• Buncombe: 7,587 child care slots (1,022 staff positions supported)
• Henderson: 4,079 child care slots (398 staff positions supported)
• Madison: 231 child care slots (29 staff positions supported)

A 2023 N.C. Chamber Foundation survey found that 60% of parents with children who are ages 5 and younger said they had to miss work because of a problem with child care and 32% didn’t pursue job training or continued education because of a lack of affordable child care.

Despite the stabilization grants, some child care programs that have historically faced difficulties providing services in poorer areas, continued to struggle. In October of 2023 the nonprofit Southwestern Child Development closed seven programs in Cherokee, Clay, Graham, Haywood and Jackson counties. The nearly 300 children affected were were up to 5 years in age with most receiving free or subsidized care due to income.

As the grant money was set to run out in December 2023, advocates asked the legislature for $300 million. But the General Assembly came back with $100 million that extended the grants through June.

In his recommended budget for the fiscal year starting July 1, Cooper has said the state should add another $200 million. The House has proposed $135 million and the Senate $136.5 million in their opposing and deadlocked budget bills.

Isabel Taylor, director of Bells School in Fletcher, said because of her program’s small classes they charge a bit more than other centers. If the funding didn’t come they would likely have to raise rates, she said.

Taylor said her main concern was for centers that serve children coming from low-income households.

“If the state supports child care then they should support the centers that are serving the most needy children,” Taylor said. “The centers that serve 50% public assistance are the most deserving of help from the state.”

More: NC Health Dept: 7 Western North Carolina child care centers to close, lack of funding

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Joel Burgess has lived in WNC for more than 20 years, covering politics, government and other news. He’s written award-winning stories on topics ranging from gerrymandering to police use of force. Got a tip? Contact Burgess at jburgess@citizentimes.com, 828-713-1095 or on Twitter @AVLreporter. Please help support this type of journalism with a subscription to the Citizen Times.