Picking up the pace
Sustaining North Carolina’s economic success requires a bipartisan approach to improve education systems, Gov. Roy Cooper says.
Governor Roy Cooper
Urging businesses to enter North Carolina or expand here was not a key part of Roy Cooper’s career before he was elected governor in 2016. The Nash County native, 61, has bachelor’s and law degrees from UNC Chapel Hill and had served as the state’s attorney general for the previous 16 years. But his leadership in recruitment over the last two years has earned praise from industry experts.
“Cooper has done a number of things we like, and our clients have a good relationship with his office,” says New Jersey-based site-selection consultant John Boyd. “They are willing to negotiate and deliver incentives. … I like what I see in the legislature and how they are working together with the governor on economic development.”
Cooper and the GOP-dominated N.C. General Assembly agreed to expand the incentives offered for “transformational” projects involving more than 3,000 jobs and $1 billion in investment. The move is helping the state compete against aggressive rivals. Also, Cooper and the legislators supported an unprecedented $3 billion bond issue to expand and improve state roads. Unlike most debt transactions, this fundraising approved last June bypasses the traditional voter referendum.
Midway through his four-year term, Cooper had an approval rating of 53% of N.C. voters surveyed in a Spectrum News North Carolina poll in October 2018. That compares with 23% who don’t approve of his leadership.
The governor shared his comments in an interview that was edited for brevity and clarity.
WHAT ARE KEY REASONS NORTH CAROLINA IS REGULARLY CITED AS A TOP STATE FOR BUSINESS?
There are a lot of reasons companies want to come to North Carolina. I hear often about the quality of our workforce and our emphasis on education, particularly our universities and community colleges. Employers say they need adaptable employees who have skills but also the ability to collaborate and solve problems. Our universities and community colleges are doing a great job developing talent.
I also hear from businesses that they want to be here because of our quality of life. Once they get here, employees don’t want to leave. Everything from climate to cost of living and, most of all, the friendliness and openness of people.
YOU’VE SAID CEOS REGULARLY ASK ABOUT NORTH CAROLINA’S EDUCATION SYSTEMS. IS THE STATE MAKING PROGRESS IN IMPROVING EDUCATIONAL OUTCOMES?
An educated North Carolina is a job-ready North Carolina. I’ve spoken to CEOs and business leaders across the globe, urging them to invest and create jobs in our state. The question business executives ask when they’re looking at North Carolina is whether we have the well-trained workforce to make their company successful. The answer is yes, we absolutely do.
When I took office, I set an ambitious goal: make North Carolina a top 10 educated state by 2025. To get there, we need to increase the number of 4-year-olds enrolled in high-quality pre-K, raise the high-school graduation rate and grow the number of North Carolinians with a postsecondary degree. We’re making progress, but more work remains.
My mission statement for North Carolina is to build a state where people are better educated and healthier, and where they have more money in their pockets and the opportunity to live abundant and purposeful lives. By investing in education, we can improve our workforce, recruit better-paying jobs and grow the economy for everyone.
YOU’VE FOCUSED ON RURAL ECONOMIC DEVELOPMENT. ARE YOU PLEASED WITH THE RESULTS, SUCH AS TRAINGLE TYRE NEAR TARBORO AND EGGER GROUP IN DAVIDSON COUNTY?
Rural North Carolina is a special place. I grew up in eastern North Carolina and understand the unique benefits, opportunities and challenges facing our rural communities. In two years as governor, I’ve visited dozens of small towns that any business would be lucky to call home. The quality of life, the goodness of people, the work ethic, the low cost of living, the access to community-college training — all these qualities make rural North Carolina a place where businesses like Triangle Tyre and EGGER Group will flourish.
We will make sure they flourish by investing in education and job training so that employers can find the workforce necessary for their companies to grow. I also believe that means trusting local business leaders, empowering local innovation and giving communities the tools they need to succeed.
Last spring, we launched Hometown Strong, an initiative to strengthen rural communities and build partnerships between local leaders and state government. Most local governments don’t have big staffs and often spend a lot of their time just keeping the trains on the tracks. They also struggle with red tape and a web of state government agencies when looking for support. Hometown Strong was born of the idea that breaking down silos and increasing communication can help rural communities succeed. So instead of creating a new agency or new bureaucracy, Hometown Strong is a small action team in the Governor’s Office that is charged with listening to local leaders in rural counties and helping them to achieve their goals.
YOU’VE URGED CAUTION ON FURTHER INCOME-TAX REDUCTIONS. WHAT IS YOUR REASONING?
There is no doubt that a competitive tax climate is necessary to grow our economy, and North Carolina has that. But when I talk to CEOs, they stress that the No. 1 quality they are looking for when considering a move or an expansion is a great workforce and education system. In order to train people for good-paying jobs, we must continue to invest in public education.
Of states with a corporate income tax, North Carolina has the lowest rate in the country [at 3%], but teacher pay in North Carolina continues to lag behind the national average. We can improve our investment in public schools and grow our skilled workforce while maintaining a business-friendly tax climate.
WHAT IS YOUR GENERAL VIEW ON THE IMPORTANCE OF INCENTIVES TO BE COMPETITIVE WITH OTHER STATES?
Competitive incentives are often needed to recruit the kinds of companies we want. We are in a global competition for good jobs, and we are fortunate that North Carolina has a lot to offer. We have a high quality of life, low cost of living and a talented workforce that can meet any challenge. It’s only in the last 18 months or so that we have stepped up to put in place the transformative incentives we need. I’m proud of that. While there must be accountability in incentives to ensure success, we should continue to use them to recruit employers who want to create good jobs across our state and grow roots here.
HAS ANYTHING ABOUT THE ECONOMIC-DEVELOPMENT PROCESS SURPRISED YOU?
I’ve been somewhat surprised by the recognition among so many CEOs that education and a skilled workforce are first on their list when looking to move or expand. Employers want to be here and want to be a part of the community in North Carolina. But while a competitive tax climate is important, they know that the top requirement for their long-term success is the ability to hire skilled employees.
I am committed to improving public education and working with business leaders to tailor job training to growing industries so that North Carolinians can find the training they need for good jobs right here at home.