North Carolina Incentives Under Fire

A recent analysis of the firms receiving funds from the One North Carolina fund shows that the program, while being a catalyst for economic development, hasn't been working perfectly. On the other hand, no state and local incentive program does in our analysis.

The fund has distributed a total of $18.2 million statewide since its inception, according to a fund disbursement sheet provided by the state's Department of Commerce.

However, in a random sample of 50 businesses that received job creation cash under the One North Carolina incentives program from 1993 through 2002, nine of the firms -- or 18 percent -- are out of business or no longer operating in the state.

When added together, the state established goals for the 50 companies to create 11,175 jobs. Those companies today have an estimated employee count of 8,400, but that includes jobs that existed before the grants were awarded. No figures are available on the net new jobs created.

Read more here.