Republicans and conservative groups support the veto. But House Democrats – usually in lockstep with their Democratic governor – say they have enough votes to override the veto.
Gov. Mike Easley vetoed the bill last week. If the override is successful, it would be the first time in state history. The governor’s office has had veto power since 1997. Easley has vetoed eight bills since becoming governor seven years ago.
Goodyear is seeking money to retool machinery and make a new line of specialty tires. The money would be seen as a way to secure at least 2,000 factory jobs. The company plans $200 million of private investment.
Easley vetoed the bill, saying Goodyear could cut its work force from about 2,700 to 2,000 and still get the money. It would be paid as grants approved by the state Commerce Department in $4 million annual installments for 10 years.
The incentives bill passed by wide margins in the House and Senate. A veto override requires a three-fifths majority.
Cumberland County lawmakers had hoped an agreement could be reached to avoid a special session.
“I’m still hoping to resolve the differences by negotiating rather than force it to an override,” said state Rep. Rick Glazier, a Fayetteville Democrat who sponsored the bill.
“I think everyone wants those conversations, but if Commerce and the governor do not want those conversations, then we are prepared to have a special session and override the veto.”
Glazier said lawmakers and lobbyists for Goodyear have been meeting and calling other lawmakers to rally support for the override. House Speaker Joe Hackney, an Orange County Democrat, and his staff have been touting an override as well.
If the House kills the veto, the bill would go to the Senate. Majority Leader Tony Rand, a Fayetteville Democrat who has been a close ally of Easley, said he does not believe discussions would avert a veto.
“I’m always willing to listen,” Rand said. “But I don’t know what it would be.”
Rand said he has not talked to the governor about the bill. He said his relations with Easley have been strained since July, when George Tatum of Fayetteville resigned under pressure as director of the Division of Motor Vehicles. Rand and Tatum are friends, and Rand believes Tatum was a victim of politics.
“Not too happy these days,” Rand said when asked about his relationship with Easley.
Rand said he had been talking to Hackney and Senate President Pro Tem Marc Basnight, a Dare County Democrat, about a special session.
Hackney has been the target of at least one conservative group that supports the veto.
“The grassroots members of Americans for Prosperity-North Carolina are against giving taxpayer money to private companies,” said state Director Dallas Woodhouse. “The best economic development plan for North Carolina is to cut North Carolina’s high individual and corporate tax rates. If it is such a good idea to give Goodyear $40 million, even if they cut 700 jobs, then Speaker Hackney would not have to use his vast taxpayer-provided resources to spin the public on the issue.”
Goodyear officials say they were disappointed by the veto, and they have declined to discuss potential job cuts. The company’s labor union supports the bill, acknowledging that some jobs could be lost but saying 2,000 jobs would be saved.
The jobs average $50,000 to $60,000 in annual salary and more than $80,000 when benefits are added.
The Cumberland County Business Council estimates city and county taxes paid by a company the size of Goodyear would exceed $42 million over five years and state tax revenue would top $100 million.
