If you have wondered why it is so difficult to figure out how much money is being spent in North Carolina to give select companies an advantage over others (Goodyear, Dell, Honda Jet just to name a few), a recent press release from the Governor?s office adds to the confusion.  Seems that a federally funded grant from the US Dept of Housing and Urban Development designated $1 Million to a new corporate welfare pot in 2007.  The Small Business and Entrepreneurial Assistance Grant program is administered through, you guessed it, the Dept. of Commerce, home of the Bill Lee Act, JDIG, One North Carolina Fund and a dozen or so other corporate welfare programs.  The grants go to local governments who in turn award the money to ?help small businesses expand and grow.?

The recipients of three $250,000 grants are the Town of Biscoe, Clay and Hyde Counties.  Biscoe has awarded their grant to Central Carolina Hosiery Company to purchase new knitting machines, Central Carolina says they?ll create 19 jobs.  Advanced Digital Cable is the largest domestic manufacturer of traffic signal cables and is the recipient of the Clay County grant and will use it to expand its production line and add 10 jobs.  Hyde County is giving it?s $250,000 for building renovations and equipment purchases with plans to create 10 jobs to three businesses ? Chris?s Grocery, a Swan Quarter grocery store; Community Care and Hospice, an intermediate care and state licensed facility; and Alligator River Growers, specializing in onion farming.

So $750,000 of public money is spent to buy equipment for five companies, that if they need additional equipment, should indicate their business is growing and not in need of government handouts, in the hopes that they will add 39 jobs (at over $19,230 per job)

Although the use of this grant money is allowed under the criteria outlined for Community Development Grants, one has to wonder, why?  Why are these five companies more special than the hundreds of other small business struggling across North Carolina? Why do we believe that once the companies spend the money to buy the equipment, they?ll actually create the jobs promised?  Why can?t public money be used to create a fair playing field for all businesses?  Why can?t we stop pouring more and more money into corporate welfare?