the pendulum
NEWS
WEDNESDAY. APRIL 21, 2010 // PAGE 7
Perdue introduces plan to benefit small businesses
Proposal includes tax reductions and incentives, offset by federal recovery funds
BREAKING
Pam Richter
Editor-in-Chief
Jeff Mackenzie, the owner of the Fat Frogg
Bar and Grill in Elon, opened his business
in August 2009. Since Mackenzie’s business
has not been open for long, he has not yet
seen the impacts the economy has had on
his business as his peers have.
For the Fat Frogg and other small
businesses within the state of North Carolina,
Gov. Bev Perdue called on the state’s General
Assembly to approve a legislative package
that would help small businesses through
tax incentives and grants, according to the
Charlotte Business Journal.
“Any type of benefit or tax credit would
always be a help, whether it is given federally
or by the state,” Mackenzie said.
The plan totals to $17 million, and $10
million of the package includes tax relief for
these businesses.
Jim Barbour, associate professor of
economics at Elon University, said the plan
is not done as a payment to small businesses
but comes in the reduction of taxes.
“A fair portion of this is being off set by
federal recovery money," Barbour said.
On Feb. 17, 2009 President Obama signed
the American Recovery and Reinvestment
Act, which totaled to $789.5 billion.
According to NCRecovery.gov, $225 billion
of this total was awarded to states, with
North Carolina receiving $6.3 billion.
“Billions of dollars have come into North
Carolina from the federal government,”
Barbour said. “$17 million is only a small
piece.”
In addition, small businesses in the state,
which are on equal playing field with those
outside the state, would be given preferences,
Barbour said. For example, if two businesses
are the same, but from different states,
the one in North Carolina would be given
preference.
“If you are sitting in North Carolina
there’s no downside, but in Virginia (there’s
an) obvious downside,” Barbour said. “Of
course that assumes that businesses are
equally competent. From the perspective
of North Carolinians this is a win-win
situation. The only real downside is as soon
as you give tax relief to an organization, you
have to make up revenue."
According to the Charlotte Business
Journal, the plan would include a small-
business health insurance credit of $250 per
employee for businesses that provide health
insurance to employees making less than
$45,000. The credit applies to businesses
with fewer than 25 employees.
Mackenzie said his company has 12
workers including part-time and full-time
employees.
“1 definitely think that if it makes sense,”
he said. “It’s hard for any business now.
Everyone knows the escalating cost of health
care."
This bill will not only impact small
business but also extends to the state’s
community colleges.
This plan includes restoring funding to
the statewide Small Business Assistance
Network in the state’s 58 community
colleges.
Milele Archibald, the director of the Small
Business Center at Alamance Community
College, said her program was hurt last
year because of budget cuts within the
government.
“We’ll be able to do things we weren’t
able to this past year,” Archibald said.
“We were given certain money for experts,
on workshops, and we had to cut back
on workshops (because) we didn’t have
money.”
Small Business Centers exist at every
community college small business center in
the state. Archibald said the mission is to
help the growth of small businesses.
If passed, the bill will include:
•Tax relief and tax incentives
• Small-business tax relief to encourage investment in
innovative small companies
•A small-business health-insurance credit of $250 per
employee for businesses
• A business-venture tax credit tbat raises the cap to S10
million from S7.5 million
•A state tax break for equipment purchases by small
businesses
•A proposal to restore funding to the statewide Small Business
Assistance Network within the state's 58 community colleges.
• InSource NC, a program that helps state businesses find the
goods and services they need from other N.C. companies
through Web-based buyer-supplier networks.
•A plan to match state grants
•Expanded grants
SARAH COSTELLO | Qr«3htc« Editor
JACK DOOSON I Photographer
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University Drive
construction project raises
safety concerns in town
BYPASS from Page 1
piece of the project occurred in
2004 and 2005 when the state added
the southern end of the road, which
intersects Interstate 85.
On a road where just over a year ago an
Elon professor, Eugene Gooch was killed,
and in 2007, a major accident claimed
the lives of five people, safety concerns
are being raised about the section where
construction is set to occur.
While both of these incidents were
cases where vehicles
ran off the road,
Town of Elon Police
Chief LaVell Lovette
said she doesn’t
think pedestrian
traffic or bicycles
should be on the
road.
“There’s really no
place for pedestrians
and bicycles and
that kind of stuff
on University Drive
and I constantly see
people out there
walking on the edge
of the road, running,
bicycles, in fact the
other day there was
a couple pushing
a baby carriage,”
Lovette said.
University Drive,
she said, may be a safer place to walk
and bike on once there is a separate
portion built specifically for pedestrians
that goes along the entire road. Right
now there is a section of the road on the
southern end, according to Edwards
The construction project raises other
issues, though, in the town. The widening
of Cook Road will bring it closer to Beth
Schmidt Park, said Klepcyk.
“We’ve been very cognizant in the
town for a long time (of that issue),”
Klepcyk said, “because that’s really the
one piece of the bypass that goes through
what are traditional neighborhoods.”
He said that because the widening of
the road will be happening on the side of
the road closer to the university, it will
be bringing the road closer to the park.
But for some, safety concerns are
being raised about the widening project.
“We have a lot
of concern about
that," said Davis
Montgomery, a
member of the
town’s board
of alderman.
“People are out
eryoying the
park, and then
you’ve got a
high traffic area
that will have
tractor trailers
and (cars) going
45 miles per
hour.”
He said the
North Carolina
Department of
Transportation
has allowed
for the Town
of Elon to have
control over what the speed limit will be,
and Montgomery said he hopes it will be
35 miles per hour.
Lovette said she thinks lowering the
speed limit along the Cook Road section
of the University Drive bypass is a good
idea. Klepcyk said the change in the
speed limit hasn’t been voted on yet, but
he expects the speed limit to be lowered
along that area.
“THERE’S REALLY NO PLACE
FOR PEDESTRIANS AND
BICYCLES AND THAT KIND OF
STUFFON UNIVERSITY DRIVE,
AND I CONSTANTLY SEE
PEOPLE OUTTHEREWALKING
ON THE EDGE OF THE ROAD,
RUNNING, BICYCLES. IN
FACT, THE OTHER DAY
THERE WAS A COUPLE
PUSHING A BABY CARRIAGE.”
- LAVELL LOVETTE
TOWN OF ELON POLICE CHIEF