Table of Contents
Back in January, PENC asked you to participate in a survey to help in determining the unemployment rate among Professional Engineers licensed in North Carolina. With over 1,700 PEs responding, the results are as follows:
Principle Area of Practice:
21% - Industry/Manufacturing
22% - Construction
7% - Government
47% - Private Practice
1% - Higher Education
2% - Other
74% work in companies employing 50 or more
16% work in companies with 11-50 employees
10% work in companies with 10 or fewer employees
78% report that there have been recent layoffs in their companies
99% were employed this time last year
97%
are currently
employed or said another way, based on the survey results only 3% of licensed
professional engineers in NC are currently unemployed.
However 40% of the
survey respondents consider themselves
underemployed.
Underemployed is defined as a reduction in
wages, benefits, hours, etc.
And, although 60% believe that their company will have a layoff in the near future, 70% do not believe they will personally be laid off.
There is both good and bad news found in the survey results. First, it’s encouraging to see that most licensed professional engineers in NC are still employed even though there have been layoffs in their companies. Because almost half of the respondents were in private practice, this likely means that support staff and engineering interns were likely those that were laid off – rather than the engineer that produces direct income from billable hours.
The bad news is that 40% are considered underemployed and based on this, one can surmise that if the economy does not turn around soon, there could be further reductions in pay and/or benefits or, those that are underemployed could join the ranks of the unemployed. But, because 70% of our respondents believe that they will not personally be laid off, it is more likely that the underemployment will continue.
So, what next?
PENC will conduct another survey in June to determine if these numbers have changed. In the meantime, we will continue our work with the Jobs Recovery Coalition of AIA, ACEC, and the Landscape Architects to develop a legislative strategy intended to produce more design work for our coalition members. As a first step in that direction, we will be meeting with the NC Banker’s Association and key legislators on March 10th to discuss access to credit for investments and financing infrastructure options that the General Assembly could consider that would get the design community working.Join the PAC
Of course, first and foremost, you can vote. Or, you can run for an elected office or volunteer on a campaign. Or, you can provide financial support for a candidate that you feel best represents your interests and values – both personally and professionally.
With over 600 political action committees in North Carolina and even more special interest groups and constituencies, it’s difficult for one individual or even a small group of individuals to be heard among all the competing interests. Even more challenging is to distinguish yourself and actually have elected officials and other decision-makers listen to what you have to say and incorporate your ideas and recommendations into policy or legislation.
Some say the larger the group, in terms of number of individuals and funding, the more influence you have. And while conceding that this is important, it’s also just as important to be recognized for your credibility and knowledge since that is what truly distinguishes you from the rest.
The Engineers PAC of North Carolina is the only PAC representing the interest of the engineering profession and the business of engineering. It gives you, as an engineer or future engineer, a chance to join forces with individuals that share your interests and have a “voice” in the political process.
Political Action Committees, or PACS as they are commonly known, are mechanisms by which individuals can pool their contributions, creating a committee that chooses to financially support political candidates that they believe best represent their interests. For a PAC , such as E-PAC, that operates within the strict letter of the law, there is nothing unethical or “dirty” about this process. PACs are not only legal but are guaranteed by the First Amendment. Additionally, there are very specific rules and reporting requirements that all PACs must follow.
The Engineers PAC of North Carolina, which has an elected Board of Trustees representing its parent organizations, the Professional Engineers of North Carolina and the American Council of Engineering Companies of NC, is structured in a way that provides even more oversight and transparency than the law requires. For instance, E-PAC has its own By-Laws, separate from the parent organizations, which dictate how it operates. The E-PAC Trustees also have an internal audit committee that reviews financial information and ensures that all reporting requirements have been met. In addition, E-PAC uses specific, relevant criteria to evaluate political candidates to determine if they will receive contributions. All the proceedings from E-PAC Board meetings are available to its members through the meeting minutes and contributions to political candidates are readily disclosed if requested.
In past election years, E-PAC has been ranked close to the top 50 based on the total contributions that were made to political candidates. This amount falls well behind other professional groups like the NC Academy of Trial Lawyers and the NC Medical Society. While we have typically given away between $40,000-$50,000 during an election year, these PACS have contributed over $300,000 and $400,000 respectively. Our contributions, while significant, do not come close to what engineers are capable of contributing. For instance, if every professional engineer licensed in North Carolina gave a minimum of $25 to E-PAC, we would collected over $400,000, surpassing the two professional PACS mentioned above as well as the NC Home Builders Association PAC. And, we wouldn’t be far behind the NC Realtors PAC which is currently listed as the number 1 PAC in NC.
There’s never been a better time than now to become politically involved. With all US congressional seats, one Senate seat, and all NC state legislative seats to be decided this Fall, candidates who we know support the profession and business of engineering need our help to be elected or re-elected so that they can influence policy and legislative issues in a way that is favorable to the engineering profession. While our contributions do not buy us votes, it does give us the “ear” of our legislators enabling us to deliver quality information to help educate them on issues and decisions that affect the engineering industry.
But, joining the PAC is not all about how much money we can collect so that our PAC can be listed in the top 25 – although admittedly, that is one of our goals. It is more important that engineers become involved so that they understand the political process, build relationships with elected officials - becoming trusted experts and advisors enabling your voice to be heard loud and clear. E-PAC is one of the most important political advocacy tools you have that supports your profession so join the “PAC” of engineers that are “involved, informed and influential”.
For more information on E-PAC and becoming a member please visit www.penc.org and click on E-PAC.
Bid Matching
Gov. Beverly Perdue has signed
an executive order that would give North Carolina companies an advantage in
competing for state business. The order allows North Carolina companies to match
the bid of an out-of-state company if their initial bid was within five percent
or $10,000 of the lowest bid. "The order can help save and grow jobs right here
in North Carolina," Perdue said in announcing the order at the United Restaurant
Equipment Co. in Raleigh. "At a time when North Carolina companies are looking
hard for customers, this change will give them a chance to compete for business,
stay in business, and grow their business." The move was hailed by Greg
Thompson, state director of the National Federation of Independent Business, who
said it "really levels the playing field for small business." Perdue also
appointed Scott Daugherty as North Carolina's first Small Business Commissioner.
He currently serves as director of the Community College System's Small Business
Center Network. Daugherty will report to Commerce Secretary Keith Crisco.(THE
NEWS & OBSERVER, 2/17/10).
Budget Talk
North Carolina will be facing at
least a $500 million budget shortfall by the end of June, according to top
lawmakers. "It would not surprise me if it hit $600 (million) or $700 million,"
said Sen. David Hoyle, D-Gaston and co-chairman of the Senate Finance Committee.
"But $500 million seems like a given." Revenue at the end of January was $35
million behind estimates. The state would be in a $300 million hole if not for a
special Revenue Department program that settled dozens of business tax disputes,
bringing in a flood of money. But income and sales tax collections continue to
trail what the legislature's fiscal staff projected.
Barry Boardman, chief economist on the staff, said the state could face a $500 million gap when the budget year ends June 30. He offered a little more optimism than lawmakers, though: He said if April tax collections are higher than anticipated, the shortfall could be cut in half. Those collections, though, are so difficult to predict that they could just as easily balloon the budget gap. Gov. Beverly Perdue ordered agencies to slice 5 percent from their budgets last summer, but further cuts could be necessary. Boardman and other economists predicted last spring that the economy would bottom out late in 2009 and start rebounding by now. It hasn't. But there are hints that the bounce is beginning. "There are some glimmers," said Sen. Richard Stevens, R-Wake. "For example, with temporary employment up in consecutive months, ... that's usually the first sign of hiring."
Boardman said estimated tax payments are below estimates by about 5 percent. Those are income tax payments, primarily from wealthy individuals, that are spread out over the year instead of paid in lump sums in April. He also said sales tax revenue is behind estimates by about 4 percent. Because the legislature added a penny to the sales tax, that revenue stream props up an even larger part of the budget. So a lag in sales tax translates into a larger dollar figure, a bigger problem than in preceding years. preceding years.
Still, not all budget news has been bad. President Barack Obama's administration announced Friday it was cutting what states owe the federal government in the Medicare prescription drug plan. North Carolina received a $150 million reduction in its bill. And the Revenue Department's one-time program to settle tax bill disputes with corporations and businesses last year raked in $427 million, well above the $150 million projected. But Rep. Mickey Michaux, D-Durham and senior budget committee chairman in the House, said the extra money was a windfall that was quickly wiped out by unexpected Medicaid expenses. "We keep coming up every day with other problems," Michaux said.(Mark Johnson, THE CHARLOTTE OBSERVER, 2/21/10).
Restructuring Government
Gov. Beverly Perdue
cautioned last week that 2012 will again be a bleak year for North Carolina's
budget. "It's my goal with the (legislative) session to focus on restructuring
government," Perdue said during a meeting of the N.C. Metropolitan Mayors
Coalition, a group of mayors representing 26 of the state's larger cities. She
said that includes everything from eliminating some of the state's 600 boards
and commissions to getting outside experts to provide some of the functions that
make the government run, such as technology services. Layoffs of state workers
also looks likely, said Andy Willis, Perdue's senior adviser for governmental
affairs. "Two thousand to 3,000 employees will probably lose their jobs," he
told the mayors.
While some areas appear to be stabilizing and corporate tax collections are improving, the state's largest revenue sources are still weak, Willis said. For the first time, the state budgeted for negative revenue growth this year, Willis said. The state projected a drop of 1.6 percent for this fiscal year, which runs until June 30. The outlook for the next budget year is a growth of 2.8 percent. However, Perdue said the situation has improved since last year and many things are going on that position North Carolina to recover quicker than some other states. But revenue continues to come in at a slower pace than state officials would like, despite a 1-cent, temporary sales tax increase imposed last year. The Christmas shopping season also did not create as much sales tax as expected, Willis said.(Vicky Eckenrode, WILMINGTON STAR-NEWS, 2/24/10).
Landfill Lawsuit
A lawsuit filed
after lawmakers derailed plans to build a 490-acre landfill in Camden County
continues to work its way through the state's court system. In early February,
the N.C. Coastal Federation announced that it has asked to join the state and
the North Carolina conference of the NAACP in defending the state's right to
deny construction of the landfill planned by Waste Industries USA, Inc., and
their subsidiary, Black Bear Disposal, LLC. The suit challenges the
constitutionality of a law passed in 2007 that puts buffers between landfills
and perennial streams and wetlands, prohibits against building landfills in the
100-year floodplain and requires environmental review for proposed public and
private landfills. The bill also requires that landfills be built at least five
miles from national wildlife refuges, two miles from state parks and one mile
from state game lands. The N.C. Coastal Federation said in a press release that
forested wetlands, state parks, national wildlife refuges and state game lands
should not be subjected to the threats that accompany mega-landfills because
potentially dangerous contaminants can leach from landfills and migrate to
groundwater or to streams.
Waste Industries signed a franchise agreement with Camden County in 2002 to build the landfill. The county, which would have generated an estimated $60 million in host fees over the 25-year lifespan of the landfill, did not join the lawsuit. The county also did not file its own lawsuit against the state, something Camden Commissioners had considered, according to Camden County Attorney John Morrison. The lawsuit states that the law's requirement that no landfill be located within five miles of the outermost boundary of a national wildlife refuge is an "arbitrary, capricious and irrational constraint with no defensible justification." The lawsuit said the law, without justification, improperly regulates commerce along several states and deprives Waste Industries of their property without due process of law. Waste Industries bought the more than 1,000 acres, including the proposed landfill site, for $6.5 million in 2004.
The company asked the court to force the state to comply with the U.S. Constitution so it can proceed with the landfill. In the alternative, it asked the court to "justly compensate" the company for the "taking" of its property. Morrison said on Friday that Camden County is involved to the extent that they are still under contract with Waste Industries. "If Black Bear was to win, Camden is under contract to go forward. If they lose, the contract is invalid by operation of law," he said. Ven Poole, vice president for corporate development with Waste Industries USA, Inc., could not be reached for comment.(Toby Tate, THE DAILY ADVANCE, 2/13/10).
Swine Waste
The state's major power suppliers are seeking bids for electricity generated from swine waste. Raleigh-based Progress Energy will administer the request for proposals on behalf of itself, Duke Energy, Dominion Energy, and several electric cooperatives and municipal power companies. Progress asks renewable-energy producers to bid on the contracts by April 15. The company expects to award contracts by Oct. 1. Starting next year, state law will require power companies to produce 0.07 percent of the energy they sell from swine waste. That rises to 0.14 percent in 2015. The N.C. Utilities Commission cleared the way for the joint effort in an order issued this month. The order also allows the companies to invest together in swine-waste power facilities. The power companies are looking to purchase either actual power for resale or renewable energy credits from qualified swine-power producers. Both can be used to meet the state requirements. Progress says each power company will decide for itself whether to participate in contracts awarded in October.(John Downey, CHARLOTTE BUSINESS JOURNAL, 2/20/10).
Coal Ash
Only one other state has as many toxic coal ash pits as North Carolina,
according to a new report by a coalition of environmental groups. The state is
home to at least six coal ash pits that store dangerous levels of toxins such as
arsenic, lead and mercury, says the report issued Wednesday by Earthjustice and
Environmental Integrity Project. Only Pennsylvania has as many sites with
dangerous accumulations of waste from coal-burning power plants, the report
says. The groups are urging the U.S. Environmental Protection Agency to step up
enforcement at the sites, which have operated for decades out of public eye
until a massive spill in December 2008 released tons of toxic sludge in
Tennessee. "The EPA has never gone out and actively investigated these sites,"
said Jeff Stant, director of the Coal Combustion Waste Initiative at the
Environmental Integrity Project. "The delay is unconscionable when there's this
much data showing this much damage." The EPA is working on new oversight
standards that have not yet been released to the public for comment. Nationally,
EPA had cited 70 ash contamination incidents as justification for new rules. The
advocacy groups said they found 31 more, including the six in North Carolina.
"These groups have an agenda," Duke Energy spokesman Andy Thompson said of the report. "What they're not saying is that we've worked with state regulators to address these issues." The state Division of Water Quality is moving ahead with plans to monitor groundwater quality at the sites. The division this month asked power companies to propose locations for new wells to expand site monitoring at four ash pits. The North Carolina portion of the report was compiled by the Watauga Riverkeeper team within Appalachian Voices, an environmental organization in Boone. The analysis is based on data reported to state environmental regulators by Duke and Progress Energy, which together operate 13 coal ash pits in the state. The site with the worst contamination readings is at Progress Energy's Sutton Steam Plant near Wilmington. The site shows arsenic contamination measured as high as 29 times above federal standards, according to the report. Other sites with dangerous levels include Progress Energy's Lee Steam Plant in Goldsboro, Cape Fear Steam Plant in Moncure in Chatham County, Asheville Steam Electric Plant in Buncombe County and Duke Energy's Belews Creek Steam Station in Stokes County.(John Murawski, THE NEWS & OBSERVER; Bruce Henderson, THE CHARLOTTE OBSERVER, 2/24/10).
Camp Lejeune Water
A federal judge has denied a government motion to dismiss a lawsuit claiming the government knowingly exposed hundreds of thousands of North Carolina-based Marines to contaminated drinking water. U.S. District Judge Terrence Boyle's decision released on Wednesday said that 45-year-old Laura Jones of Glenwood, Iowa, filed her lawsuit on time and that the court has jurisdiction. Jones, who has non-Hodgkin's lymphoma, lived at Camp Lejeune with her Marine husband from 1980 until May 1983. Her 14-page complaint, filed along with numerous supporting documents, said Jones can't work as a nurse because of pain. Attorneys for Jones said the chemicals in the water at Camp Lejeune caused numerous health problems including cancers, reproductive disorders and birth defects. Health officials think as many as 1 million people may have been exposed.(THE ASSOCIATED PRESS, 2/24/10).
Bridge Replacement
North Carolina has been awarded $10 million of the $300 million in federal stimulus funds it requested last year to widen Interstate 85 near Salisbury and to replace an obsolescent four-lane bridge over the Yadkin River. The state Department of Transportation now plans to indefinitely delay the $150 million project to widen six miles of I-85. However, the department will use a fallback plan to get started this summer with construction on a new eight-lane, $180 million Yadkin River bridge. "We're going to go ahead and let that contract in April," said Ted Vaden, a DOT deputy secretary. Construction will start by this fall, to finish in mid-2013. DOT will pay for the $180 million bridge with $150 million in federal GARVEE bonds -- basically a loan against future federal highway dollars -- plus $20 million in other state funding and the $10 million federal stimulus grant announced Wednesday. The narrow bridge, built in 1955, carries 70,000 cars and trucks every day on the main interstate highway between Richmond and Atlanta.(Bruce Siceloff, THE NEWS & OBSERVER, 2/17/10).
Road Scores
The state Department of Transportation has taken a first
step toward deciding which projects are built based more on objective standards
and less on politics. Transportation officials said Thursday they have developed
a scoring system to rank 2,000 potential road, transit and other projects
through 2020. The agency will release the scores Monday before meetings in
Graham, Kinston and Hickory. A five-year draft construction schedule will be
developed based on the scores. Many projects won't appear on the plan because of
financial constraints, environmental concerns and other obstacles. Public
comment will follow before the plan is approved in June 2011. Gov. Beverly
Perdue ordered changes after complaints that wheeling and dealing by state Board
of Transportation members allowed some bad projects to get built.(THE ASSOCIATED
PRESS, 2/18/10).