Updated 01/02/2007 07:03 PM
Economic leaders meet at state forum
State Treasurer Richard Moore
RESEARCH TRIANGLE PARK -- The state's leading economists are predicting a very good year ahead in North Carolina. The fourth annual State Economic Forecast Forum was held Tuesday in Research Triangle Park. Analysts say while continued growth is expected, the challenges that come with that growth are also expected.
In 2006, the state had a great year. It exceeded expectations in revenues and left the state with a huge budget surplus.
“This year, we're going to continue to do that, but we're going to slow down along with the rest of the nation,” said Harry Davis, of the North Carolina Banker’s Association.
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Davis and his colleagues at the forum expect continued job growth in the military, construction and financial sectors among others.
‘Certainly the biotech and anything related to energy is largely driven by whatever subsidies are made available either by the state or the federal government,” said Davis.
But economists warn North Carolina must continue to evolve with the changing economy.
“We need to make sure we have an educated workforce that has the skill sets to compete in a global world, and we run some risks in that regard,” said John Allison, the CEO of BB&T.
The business world in general also wants the General Assembly to cut the corporate income tax, an idea the state's elected banker agreed with.
“Well, I've been advocating for several years now that we look at doing away with it, phasing it out.”
Moore believes the corporate income tax hurts small businesses the most, and others believe it could reduce the need for controversial incentive packages to lure in jobs.
BB&T CEO John Allison
“I'm personally not a big fan of incentives because I'd rather have lower taxes for everybody because most of the jobs are created by jobs that are already here,” Allison said.
The one thing economists all agree on is the state will continue to grow and looking beyond 2007 will be just as important in the year ahead.
The N.C. Banker's Association and Citizens for Business and Industry host the annual forum. Watch Political Connections Friday at 6 p.m. and again Sunday at 11 a.m. for complete coverage.