Counties with jail beds to spare will soon be able to make a little cash housing state prison inmates.

Under a new program introduced by the N.C. General Assembly earlier this year, minor criminals with short sentences won’t be housed in state prisons anymore. The new measure will mean more heads in local jails and, for some counties, a little more money in local funds, too.

Currently, county jails hold inmates charged with a crime and awaiting trial. Once sentenced, they are shipped off to state prison, unless their sentence is less than 90 days, in which case they serve the short time in the jail.

But starting next year, county jails could end up housing inmates with sentences up to 180 days who would have otherwise ended up in the state system. It will only apply to prisoners convicted of misdemeanors; felons will still go into the state system.

Essentially, it’s a logistical move, said Eddie Caldwell, vice president and general counsel for the North Carolina Sheriff’s Association. They’re the group that’s going to manage the project.

“The legislature believes that there is available capacity in the county jails, but we’ve never had a mechanism to match up the heads with the beds that are available,” said Caldwell.

The program is completely voluntary. Local sheriffs don’t have to take on the prisoners if they don’t want to.

But for those who do have extra room, they’ll get paid to house these prisoners that would have otherwise ended up in the state’s prisons. How much counties would get is not yet known, according to Keith Acree, public affairs director for the department of corrections.

“The payment structure has yet to be determined, whether it’s a flat rate or something else,” said Acree. But, he said, what is certain is that on January 1, the department of corrections will get out of the business of housing misdemeanor criminals.

It’s welcome news for some counties that have new or unfilled jails where empty beds are eating up money.

“If you’ve got a county that has beds sitting vacant, there’s a certain amount of cost built into that bed anyway, so the cost putting an inmate in there is incremental,” said Caldwell. “We think that those sheriffs who have vacant beds would be glad.”

Especially if it means they can make a little money to cover their jail overhead.

Originally, state lawmakers wanted to save money by dumping the misdemeanor criminals on counties without compensating them, an idea bandied about for several years, said Caldwell. Several other states already do it.

But clearly the state’s sheriffs didn’t like the idea unless it came with money to cover the inmates room and board.

In the current scenario, the state is still projected to save a bit of money. They’re closing four small, minimum-security prisons, including the Haywood Correctional Facility, which will cut some costs.

And the state will increase court costs starting this month to cover the cost of housing prisoners.

Statewide, the changes should affect between 5,000 and 6,000 inmates, said Caldwell. It’s hard to really pin down an exact annual number of those that could land in county jails — those with sentences between 90 and 180 days with misdemeanor crimes.

On one day in March when he took a tally, there were 1,700 inmates who fit the bill, and he figures that’s about average.

In Haywood County, there were 14 inmates convicted in 2010 who match the criteria. Jackson County had four, Macon County had eight and Swain County only two for that year.

So, on the surface, it doesn’t seem such a big deal for smaller, rural counties.

But in Wake County, the state’s most populous, there were 296 convictions in 2010 that would have to be housed locally somewhere under the new rules. And portioning those out could be a boon to empty jails.

Eventually, Caldwell sees this program giving counties an incentive to build bigger jails than they may need, theoretically paid for by prisoners other places didn’t want.

Currently, the N.C. Sheriff’s Association is figuring out how many beds there are in facilities around the state, then contracts will be signed before the program goes into effect at the beginning of next year.

In what promises to become an increasingly expensive proposition, county taxpayers must now pick up the tab for cleaning up illegal methamphetamine labs.

The federal government notified states in February that it would no longer pay for such clean ups, which involve dangerous, potentially explosive, chemicals and toxic residue. The state covered the cost for a while, but after spending about $165,000 to clean up some 50 labs in North Carolina in the past six months, the state has spent all it wants to and will now place the burden on counties.

More than 230 meth labs were discovered and destroyed in North Carolina last year; Jackson County destroys between one and nine of the illegal labs a year.

Jackson County this week got stuck with its first meth-lab bill.

In this case, the bill was estimated to come to just $1,500, but that’s because the meth lab deputies busted was a particularly primitive operation. Some cleanups downstate of “superlabs” have cost as much as $20,000, according to news reports.

The lab operators were using a makeshift method recently developed called “shake-and-bake,” said Lt. Shannon Queen of the Jackson County Sheriff’s Office, in which the ingredients are mixed in soda bottles. This can pose great potential dangers, because the shaken chemicals are highly volatile.

During a discussion at a Jackson County meeting this week, Commissioner Doug Cody worried aloud about the possibility of a “huge cleanup” in the future, and the potential cost to a county unprepared for such a financial blow. Queen said that law enforcement and prosecutors routinely seek restitution, but “as the saying goes, you really can’t get blood from a turnip.”

In other words, getting money out of convicted drug dealers could prove an uphill battle for local governments.

Queen said deputies received an anonymous tip late last week that resulted in the bust. Following the lead, they set up surveillance at the bottom of Greens Creek Road on July 29, and discovered Keisha Leigh Maki, 25, of Granite Falls, and Billy Ray Davis, 54 of Waynesville, according to a news release from the sheriff’s department.

The couple was hunkered in the weeded area near where Greens Creek goes into a culvert and crosses under U.S. 441. Queen told commissioners this week that the two were using creek water as part of their meth-cooking cooling process.

Whenever local officers breakup a meth lab, a hazardous-materials mitigation team must come and remove the chemicals involved, and everyone involved — officers and suspects — go through decontamination.

Maki and Davis were both charged with manufacturing methamphetamine, trafficking, possessing precursors for methamphetamine, conspiring to manufacture methamphetamine and possession of drug paraphernalia. Both were being held early this week under $100,000 bonds. Their first court date on the charges was scheduled for Aug. 16.

In North Carolina, it’s illegal to hit a prison inmate. You can’t hit a child in a day care center. Military officers can’t hit their subordinates. In workplaces, nursing homes, hospitals and elsewhere, hitting is forbidden. It is even illegal to hit an animal.

But in the state’s public schools, there’s no ban on hitting, because North Carolina is one of 19 states that still allows corporal punishment to be used in schools.

The practice, once common, has fallen out of favor, but there are still 38 school districts out of 115 in North Carolina that allow kids to be punished with the paddle.

Only 17 used it last year, and only a handful of times compared to some other states, but the option still exists for teachers and administrators who find it effective. Haywood, Macon and Swain are among those that use it. Jackson and the Eastern Band do not.

Starting this school year, however, the choice falls into the hands of parents, who will be able to opt-out of corporal punishment for their child.

A bill just passed by the N.C. General Assembly requires school districts to get parent permission for corporal punishment at the beginning of the school year, a right already given to parents of students with disabilities last year.

Before, the only parental involvement required was notification. Schools had to let parents know they’d done it, but not necessarily before, and they certainly didn’t have to ask permission.

Allison Best-Teague of Waynesville is one parent who will be taking the state up on that offer.

She doesn’t use that kind of discipline in her own house and is glad she can now have a say in what happens to him at school, too.

“I’m actually against it for the school system overall, so I’m very glad to have the option to opt out for my child,” said Best-Teague. “I really think the bigger problem is that the state is still allowing it.”

Best-Teague now runs Blue Ridge Books in Waynesville, but she was once the director of KARE, a Haywood County anti-child abuse organization.

In her role there, she helped parents learn how to deal with disciplining their children. In all the methods she worked with, she never saw corporal punishment listed as an option.

The new state law is a win for groups such as Action For Children, a statewide policy group that advocates for the eradication of corporal punishment in North Carolina schools.

“It has helped that the legislature has voted on this, it has changed policies,” said Tom Vitaglione, a senior fellow with the group. “It means that the school district’s that are still allowing it will have to reassess their position on this.”

And in Haywood County, that’s certainly true. It has been used extremely sparingly in Haywood — only 16 times out of student population of more than 7,000 between 2008 and 2010. This past school year, Assistant Superintendent Bill Nolte estimates fewer than 10 instances of paddling in the county’s schools.

“It’s just not used very often and when it is, it’s by parent request,” said Nolte. None of his schools, he said, ever suggest it to parents. But they might comply if a parent asks for it.

Now, however, the new state law might lead Haywood to end corporal punishment all together for fear of sending the wrong message to parents, Nolte said. The school system would have to send permission forms to the parents of all 7,000 students, creating the false public perception that corporal punishment is commonplace, Nolte said.

Nolte said the decision will be up to individual principals. But he doubts many will choose to send that paper home.

“It’s not worth the trouble or the message to have that option available for five students,” he said.

The result will likely be a de facto end to corporal punishment in Haywood.

The issue is expected to be on the agenda at Macon and Swain County school board meetings this month, if not to look at a ban, at least to discuss the new regulations.

To what end?

In Western North Carolina, there are a number of districts that still allow corporal punishment. Haywood, Macon, Swain, Graham and Transylvania counties are still on the list, as are Burke and McDowell. Jackson County banned it in 2001, and Cherokee and Clay counties have stopped over the past three years. The Eastern Band of Cherokee Indians school system does not use corporal punishment, either.

Even among chronic users, however, the numbers have dropped precipitously in recent years.

Burke County, for example, paddled 325 kids in the 2008-2009 school year. The next year, it was only 93.

Macon County was much the same: 71 in 2008-2009, but just 30 the following year.

School officials and advocates such as Vitaglione chalk this up to increased awareness and changing times.

“I really think it’s probably a form of discipline that has aged out,” said Nolte. “It’s probably timed out in terms of its broad scope effectiveness.”

Dan Brigman, Macon County’s superintendent, concurs.

“Based on historical data, that’s what I’m seeing,” said Brigman. “I think corporal punishment is effective somewhat on a few students, but in most instances it’s a temporary disciplinary measure and if it impacts long term behavior, that’s a question.”

And that view is essentially a watered-down version of what groups such as Action For Children have long been saying.

“Over the last two decades, study after study has come out regarding school discipline, and none have found that corporal punishment is effective, and by that we mean in ongoing student behavior,” said Vitaglione. “Whatever indicator you use, there’s no correlation in using corporal punishment and improving any of those other outcomes that you’d like in schools.”

And the literature seems to back up that outlook.

Studies in places such as Psychological Bulletin and the Journal of School Psychology have noted little if any long-term changes in how students act because of paddling.

The debate over corporal punishment, though, is unlike other contentious issues in one notable way: it’s pretty difficult to find a strong advocate on the other side of the ideological divide.

There are plenty who have taken the findings as ammunition for their vocal campaigns against the practice. The American Academy of Pediatrics has taken a position against it. The ACLU and Human Rights Watch teamed up in 2009 on a study and subsequent campaign that decried the use of corporal punishment on students with disabilities. Urban clothing pioneer Marc Ecko has launched a crusade called Unlimited Justice, a play on his Ecko Unlimited label, that seeks to ban physical punishment in all 50 states. There are numerous regional and local groups who have set up opposition.

But on the other side, it seems that there are only a few school administrators who will make a defense for it, and even then it’s half-hearted and with some pretty strong caveats.

“It works on some occasions, on other occasions, that’s not the answer for it,” said Bob Marr, Swain County superintendent.

It could be, as Nolte said, that the practice is just trending out, fading in deference to a more modern perspective.

The touchy legal ramifications probably don’t hurt, though.

While North Carolina hasn’t really faced court challenges over corporal punishment, it is also pretty low in the numbers rankings.

Take Mississippi. In 2009-2010, Action For Children estimates there were 38,000 instances of corporal punishment in that state’s schools. Fellow Southern states Arkansas, Texas and Alabama were similarly inclined, their numbers reaching into the tens of thousands. In comparison, North Carolina’s approximately 700 instances are hardly in the same league.

In Mississippi, however, three suits were brought against school systems for corporal punishment in 2010.

One, a gender discrimination suit brought by a male high schooler, is still working its way through the courts. Two others were money damages suits brought against a single district. The students in those cases were 11 and 6.

In Tennessee, a high school basketball player brought a case against his coaches for what the player said was excessive use of paddling. He lost on appeal, as the court said the action was disciplinary.

That sticking point is one of the key objections of anti-corporal punishment activists.

In North Carolina, teachers and administrators are immune from any prosecution over practicing physical discipline unless the child needs medical attention.

Even then, said Vitaglione, he’s not encountered a parent willing to prosecute.

“There have been a few instances where we’ve heard of a child being injured, but we have not had a family who was willing to participate in filing a suit,” said Vitaglione. “In part they feel intimidated, in part they feel guilty on their own. We, frankly, are loathe to get into that as well. We would prefer that the decision be made in the school board room or in the legislature.”

The legislature, however, is unlikely to enact an outright ban anytime soon. Bills with such proposals were defeated in 2007, 2008 and 2009. This most recent bill leaves the choice in local and parental hands, and both lobbyists and legislators anticipate that it will stay that way.

“Probably not,” was Rep. Ray Rapp’s, D-Mars Hill, answer, when asked if he saw a blanket ban coming anytime soon, although Rapp himself does not support corporal punishment. “I would say that most legislators may have strong feelings one way or the other on it, but they’re content to leave it to local jurisdictions.”

Action For Children says they’ll take what they can get, but statewide elimination is really what they’re pushing for.

One of the main reasons is oversight. There really isn’t any. The state has hitherto not required any reporting of corporal punishment statistics, nor have they handed down any guidelines on how, when or why the discipline can be meted out.

In Haywood County, it’s a principals-only policy. In other school districts, teachers, teacher’s assistants and even substitute teachers are allowed.

Without more careful oversight, say advocacy groups, some sections of the student population may be getting a disproportionate share of the corporal punishment.

Nationally, that ACLU-Human Rights Watch study found this to be the case for students with disabilities. They found those students twice as likely to be hit than the general student body.

Rapp believes that’s partly why it’s on the decline, and why lawmakers were spurred to action on the issue over the last few years.

“Without the strictest supervision and care, you can easily find yourself in court,” said Rapp.

In North Carolina, the districts that allow spanking and paddling are quickly dwindling. Gaston County eliminated it a few months ago. Vitaglione expects Greene County to follow suit at their school board meeting next week. The issue came up at Monday’s Swain County School Board meeting, where the board decided to send the forms to parents this year and revisit the question later.

Macon County’s school board is scheduled to discuss it later this month, if not to consider a ban, at least to look at new regulations.

Nationwide, the trend is also towards extinction for the disciplinary tactic. Most major urban areas have long since outlawed it — New York City schools have had a policy against it since the 19th century.

States that still allow it are mostly in the South, with a few dotted around the rural west.

Internationally, the United States is alone among developed nations in still allowing it in schools. Many developing nations — Iran, Iraq, Turkmenistan, Malawi, Namibia and many others — also forbid it.

Though a nationwide ban seems as unlikely as a state proscription, it’s more plausible that de facto bans will become more widespread, as legislation like North Carolina’s recent bill become more commonplace.

Locally, school administrators say most parents think it has already long been phased out anyway.

“I do think the new law probably makes it impractical to even have as an option,” said Haywood’s Bill Nolte. “Do you want to sent home 7,000 sheets of paper for something you may or may not even do? What’s the practicality in that?”

Back in January, a group of environmental advocates gathered for after-work beers at Craggie Brewery in Asheville where they heard a sobering message from one of their green-minded compatriots. In just a couple weeks, new leadership would take the reins of state government in Raleigh, and things probably weren’t going to be pretty on the environmental front.

“That has certainly been born out in spades,” said Julie Mayfield, who was the invited speaker that week at Asheville Green Drinks, a standing meeting for those in the environmental community.

While they were bracing for less-than-friendly legislation from the new Republicans majority, Dan Crawford, a lobbyist with the League of Conservation Voters, said they were “shocked with what we got.”

SEE ALSO: Loss of regulators means fewer inspections, say environmentalists

“To see the environmental assault that took place this session was quite surprising,” Crawford said. “It is like a game of whack a mole — there are all these new laws popping up that we’ve been trying to fight. I call this the 87-day war on the environment.”

Keeping up with the so-called assault was more than a one-person job. Close to 2,000 bills were introduced this session, and the League of Conservation Voters flagged about 200 to watch. Crawford’s group pays for a bill tracking service to keep on top of what’s being introduced or amended.

But that wasn’t what made this year one of the worst in history for environmental lobbyists.

“It was very hard to get the ear of our legislators on anything related to the environment,” said DJ Gerken, an attorney with the Southern Environmental Law Center in Asheville. “There was very little interest from the leadership or bill sponsors to hear concerns from counter viewpoints.”

When the writing was on the wall and there was no hope of stopping a bill, they at least tried to lessen its blow.

“It is better to drink the poison that makes you sick than the poison that kills you,” Crawford said. “There were many times in the session that we went down fighting.”

What environmentalists have dubbed rollbacks, however, others consider needed reform. Sen. Jim Davis, R-Franklin, said environmental regulations in the state have run amok, and it is time to reassess many of them.

“For myself and my kids and my grandkids, I want clean water and I want clean air as much as the next person. But regulation, in my opinion, some of it is onerous and in some cases it is counter-productive,” Davis said.

The new Republican majority in the General Assembly has overturned a host of environmental policies. Some bills are a direct answer to request from industry, like a repeal of the state’s toxic emission standards specifically sought by Evergreen paper mill in Canton. There’s even the vaguely worded “Act to amend certain environmental laws,” a catch all where legislators seemingly inserted fixes to address pet peeves of constituents — from increasing the size of dams that need a state permit to lifting the ban on incinerating plastic bottles.

Meanwhile, new rules are being blocked from going on the books. Bills in the General Assembly have barred any new environmental rules that are more stringent than federal limits. And environmental agencies can no longer set their own policies.

“The more regulations we have means more regulators and the more hoops we have to jump through, so I think it is time to take a breather and sit back and examine them,” Davis said.

Sometimes, environmental rules bear an uncanny resemblance to a make-work program for regulators. Davis pointed to emission limits for arsenic imposed on Jackson Paper. As soon as one target was met, regulators raised the bar.

“It ensures their job for one thing. If all these goals are met, then we have to find another goal to impose on people,” Davis said. “Frankly, we have a lot of business in the United States that just says The heck with this. I am moving to Malaysia or Mexico or China where we don’t have to deal with these issues.’”

But Gary Wein, executive director of the Highlands-Cashiers Land Trust, doesn’t want to see the state move backwards in its environmental protections.

It may make it easier for industry to operate, but society will bear the cost in the long run, said Wein.

“We are still cleaning up messes from 50 to 60 years ago when there were no environmental regulations,” Wein said.

On the Highlands-Cashiers plateau, a scenic beauty and a healthy environment is vital not just to tourist but a healthy second-home economy, said Michelle Price, director of the Jackson-Macon Conservation Alliance.

“I think a lot of folks come to North Carolina because of the environment,” said Price. “If we are not protecting our environment, they will go somewhere else.”

George Ivey, a farmland specialist and conservation consultant in Haywood County, said the environment is actually valued by companies.

“When businesses are looking to relocate, they are looking for places with high quality of life and the environment is part of it,” Ivey said.

Crawford said he doesn’t know how long it might take to undo the anti-environmental policies promulgated this session. If a new legislature takes over next election, it’s doubtful they would burn precious political capital restoring environmental policies.

“The environment is not the only area that has been attacked by this General Assembly. There are plenty of other things that have to go into the fix bag,” Crawford said.

The environmental community is pinning modest hopes on a governor’s veto, but was selective in which bills it is looking for help with.

“It would be unrealistic to ask her to veto everything. We are one interest group of many and she has her hands full,” Crawford said.

Read on for a snapshot of a few of the budget cuts and bills that environmental advocates are fretting over.

Senate Bill 781

This is environmentalists’ public enemy No. 1. Environmental agencies would lose their ability to enforce regulations and adopt rules, instead placing that power with the General Assembly and falling back on federal standards.

“The regulatory authority of our state agencies is under assault by this bill,” said DJ Gerken with the Southern Environmental Law Center.

The General Assembly would have to sign off on anything that resembles an environmental standard, from designating trout streams to determining emissions standards for factories.

“It really handcuffs the ability of agencies to do their job,” said Tom Bean, lobbyist with the N.C. Wildlife Federation.

The Wildlife Commission couldn’t even adjust innocuous hunting laws, like setting a new opening day for squirrel season, since it classifies as a “rule making” by an environmental agency. Bean said the General Assembly probably doesn’t realize exactly what they’ve bitten off.

“There would be a bottleneck initially and they will have to undo some of this because it will be so unworkable,” Bean said. “Program by program, they are going to have to have broader authority reinstated.”

The bill, which passed both chambers, is billed as “regulatory reform.”

Backseat to federal standards

An environmental provision in the budget forbids new environmental rules that are stronger than federal minimum standards. North Carolina has several environmental laws that go beyond the bare minimum required at the federal level.

“Here in the west, trout buffers, the Clean Smokes Stack Act and the Ridge Law have made an extraordinary difference in our environment,” said Julie Mayfield, director of the WNC Alliance. “If the philosophy is, we should only protect the environment to the extent the federal government tells us we should, we wouldn’t have any of those things.”

Catch-all regulation rewrite

House Bill 119, a loosely titled act to “amend certain environmental and natural resource laws” is chock full of technical rule changes that provide loopholes and exemptions from environmental permits. One of the many changes in the bill would allow even larger dams to be built without a permit, doubling the threshold for how big it must be before triggering state oversight.

In Jackson County, when an earthen dam on the golf course of Balsam Mountain Preserve collapsed three years ago, it sent a torrent of muddy water downstream, wiping out the aquatic ecosystem and filling the water with sediment for miles downstream. That dam was barely large enough to need a state permit, but even at its size wrought major environmental damage when it collapsed due to faulty design.

Loss of conservation funding

Less money for conservation this year means special tracts of lands won’t get protected but instead will be sold for development.

“We have interested land owners with high-quality, high-priority lands, but the grant money is not there to protect those assets so they remain at risk of development, losing the potential to be a source of fresh food, fresh water, food production, scenic views, flood protection, all of those values, even tourism,” said George Ivey, a farmland specialist and conservation consultant and grant writer in Haywood County.

Land trusts rely on state trust funds to help with the cost of preserving special places. But this year, the Clean Water Management Trust Fund — the primary source of money for land conservation in the mountains — has been cut from to $11.5 million from last year’s amount of $50 million, and a precipitous drop from historic levels of $100 million up until two years ago.

“It really has been a bumpy ride for Clean Water (trust fund),” said Gary Wein, executive director for the Highlands-Cashiers Land Trust.

Wein was working with a landowner in Jackson in hopes of protecting a tract of several hundred acres, but the loss of incentive funds will likely sideline the effort.

Another project to improve trout habitat in the Cullasaja River will be stopped in its tracks as well. A two-part plan was hatched to cool down the water, which was unnaturally warm and unable to support trout.

A channel flowing through the Cullasaja golf course would be redesigned from its shallow, slow-moving course to a deeper swifter one. And, the flow coming off a reservoir would be altered so the river runs out of the bottom of the pond where the water temperature is cooler instead of flowing off the top.

Other pots have been reduced too, like the Farmland preservation Trust Fund, Parks & Recreation Trust Fund and the Natural Heritage Trust Fund.

It doesn’t take long to survey North Carolina’s newest town; perhaps five minutes, tops.

There’s the swanky Fontana Village Resort, the community’s sole employer. Just down the road are an ice cream shop, laundromat, post office and gasoline station. There’s a combined general store and outfitter where tourists can purchase their T-shirts, ballcaps, refrigerator magnets, beer and that Smokies gift-shop standard, the iconic black-bear figurine.

That’s pretty much it.

Fontana Dam, despite officially encompassing 250 acres, isn’t even a one-stoplight town — it’s actually a town of stop signs, a blip of urbanity within a huge swath of federally held forestlands.

The General Assembly earlier this month agreed Fontana Dam could incorporate.

This is a company town in every sense of the word. It existed initially to accommodate the workers and their families who helped build Fontana Dam during World War II; and later, to serve Fontana Village Resort and the 100,000 visitors who make their way each year to this remote spot.

“We are a half an hour from any other group of people,” said Theresa Broderick, breaking briefly from greeting and checking in new arrivals at the front desk of Fontana Village Resort to chat. “If you don’t like your neighbors, you’re in trouble.”

During the warm months, about 140 people work at Fontana Village Resort. Come winter, however, the staff drops to a core 45 or so. Officially, just 33 fulltime residents call the new town of Fontana Dam home, including Broderick.

The nuts and bolts of incorporation

It took community unity and a concerted push to get the incorporation approved by the General Assembly. That vote followed literally years of efforts, said Mack Tallent, a lawyer in nearby Robbinsville who has been handling the town’s legal matters.

Tallent believes Fontana Dam’s unusual circumstances — being on federal Tennessee Valley Authority (TVA) lands — gave legislators pause.

Unusual it might be, but the situation is not unheard of: Tallent pointed out that there are military bases in the eastern part of North Carolina where municipalities can be found, like Fontana Dam, situated on federal-land holdings.

Craig Litz, one of the town’s newly appointed interim council members, said the option for Fontana Dam to be a township was contained in original land leases with TVA. It just took this many years to actually make that happen.

This is not about opening the door to selling legalized alcoholic beverages, Litz emphasized. People can already buy beer and such through Fontana Village Resort, if they want to, though Graham County itself is dry.

Fontana Village Resort has supported the incorporation efforts, including offering the use of its events hall both for town council meetings and an election polling site in the fall.

The attorney said that sometime this week, Fontana Dam would have its first town council meeting. The interim board will be sworn in, a town clerk hired and an attorney officially appointed  — probably Tallent, though he was careful to emphasize the town can hire anyone it pleases. His firm, McKinney & Tallent, already represents Graham County’s other two municipalities, bringing a certain level of municipal legal expertise difficult to find elsewhere in a county of fewer than 8,000 people.

It’s fun, the 44-year-old attorney openly acknowledged, to help create a town from scratch. After all, how many people ever experience such a thing?

Though, interestingly, Graham County had another town form within the past couple decades.

Robbinsville was incorporated in 1893. It was joined by the Town of Santeetlah, which incorporated in early 1989 after a developer more or less abandoned the infrastructure of what was then called Thunderbird Mountain.

State grants and assessments on the properties allowed Santeetlah to build a water system; roads were also repaved. A volunteer fire department and community center were built, and a decade later, in 1998, a town hall in Santeetlah was dedicated.

Fontana Dam hopes to follow suit. In November, the new town will hold its first election. But Fontana Dam “needs to be up and running” by then, Attorney Tallent said.

That means creating a budget from scratch. And it means sorting out what Fontana Dam will get in tax payments from Fontana Village Resort. That’s just one of the many issues facing this new town, Tallent said.

Why incorporate?

Interim Mayor Tammie Dees had just come off working the third shift at Fontana Village Resort. She was clearly tired, but still excited to be talking to a reporter about her new town.

Dees’ accent tags her as having growing up in the mountains of Western North Carolina. Turned out she was raised not too far away, on Cochrans Creek in Graham County. As a child, Dees and her family used to travel over to Fontana Dam to see movies. There was a theater in the community in those days.

She takes her new duties seriously.

Residents of the community, Dees said, “have put faith in me to try to get the town off the ground.” She isn’t sure whether she’ll actually run for election in November, but Dees clearly plans to put her heart and energies into Fontana Dam until then, regardless of future political decisions.

Dees said Fontana Dam plans to hire a town manager and clerk; long-term, residents want municipal fire and rescue services and police. Town residents also want Fontana Dam to oversee municipal infrastructure that’s already in place: a sewage and wastewater plant, disposal system, a water treatment plant, solid waste pick up and disposal, paved roads and electrical systems.

That is actually more than many small towns in WNC can offer. Dillsboro has a part-time employee — Webster, none.

Being officially incorporated should allow Fontana Dam to tap state funding these other municipalities take for granted.

“It’s been a long time coming,” Dees said. “We’ve been operating as a town since the 1940s — I think it is about time.”

Law enforcement officers and court officials are being trained on how to use a new $17 million state database that pulls together everything known about a criminal to the screen of a laptop.

Officers using the system will know who and what they are dealing with upon arrival at a traffic stop or crime scene. State Controller David McCoy said during a training session in Franklin last week that he is certain the Criminal Justice Law Enforcement Automated Data Services (CJLEADS, for short), will save lives.

Officers and court officials from Jackson, Macon and Swain were at the Franklin training. Similar teaching efforts are under way across the state.

In addition to integrating data, the new system provides an “offender watch” to alert officers and others who might need to know when there is a change in status. For instance, when a warrant is issued on an offender, or if a particular suspect is due in court, officers can receive email alerts.

The database is massive: 41 million files on 13.8 million offenders in North Carolina.

Previously, officers and court officials were forced to search up to seven different systems for the same information, McCoy said. Now, files including the state’s Administrative Office of Courts, the Department of Corrections and sex-offender registry have been merged.

Privacy issues have been considered, and were at the forefront of the database design, the state controller said. Public records on regular Joes and Janes in North Carolina have not been co-mingled with that of criminal offenders.

“And even for bad actors we don’t want to violate anyone’s rights,” McCoy said.

Sondra Phillips, who works in the data integration section of the state controller office, emphasized the system was built using on-the-job suggestions by officers and court personnel. Warnings on an offender come up immediately to help protect those working in the state’s law enforcement field, she said.

Federal agencies also are gaining access, she said, including the FBI, immigration officers and the U.S. Marshals Service. For its part, by June of next year, Phillips said North Carolina hopes to jump through the necessary security hoops to bring national alerts into the state system — such as missing people and wanted suspects.

The Office of the State Controller was selected to rollout the project after building and launching a $100 million payroll system for North Carolina.

The new criminal database will cost taxpayers $8 million a year to maintain.

Governor Beverly Perdue nixed the $19.7 billion state budget put on her desk by the General Assembly Sunday, winning herself a place in state history.

She is the first governor to veto a budget since veto powers were granted in 1997, and she told lawmakers that education was the impetus for her action.

“For the first time, we have a legislature that is turning its back on our schools, our children, our longstanding investments in education and our future economic prospects,” said Perdue in a statement and speech last Sunday.

Perdue’s veto is unlikely to hold, however. The GOP is expressing confidence that it has the votes necessary to override her historic thumbs down. Five House Democrats voted with Republicans to pass the budget, enough to override the veto if they continue bucking their party. Republicans have a tight enough grasp of the Senate not to need Democrat help for an override vote in that chamber.

Perdue posited that the budget as-is would cause “generational damage” by cutting funds to K-12 schools, preschool programs More at Four and Smart Start and elderly care.

It takes a super-majority of 60 percent to override the Governor’s veto.

In the House, that means 72 votes. There are 68 Republicans in the House — four short of what’s needed to buck the Governor’s veto. But five Democrats had previously sided with Republicans in voting for the budget, and Representative Phil Haire, D-Sylva, doesn’t think those five Democrats can be persuaded to come back to their own party.

“Some of them were promised something in the budget,” Haire said.

Haire personally voted against the budget proffered by Republican leadership.

“I think it is going to have a devastating effect on North Carolina, and it will takes us years to regain the status where we are now,” said Haire.

In the Senate, there are 31 Republicans compared to 19 Democrats, one more than needed to meet the super majority criteria.

The Governor and Democrats in the legislature are pushing to keep a 1-cent sales tax that Republicans want to eliminate. Keeping the extra sales tax, say Perdue and other Democrats, could raise $900,000 to fill the more than $2 billion funding gap facing the state.

Haire doubts Republicans will capitulate on their position on the sales tax.

“Not no, but heck no. If they do that they renege on their whole campaign promise,” Haire said.

Sen. Jim Davis, R-Franklin, said keeping the sales tax, billed as a “temporary measure” when it was put in place two years ago, is non-negotiable.

“It expires June 30, and if they thought that they needed a tax for longer than that, they should’ve voted for it. If the legislature wanted to have a penny sales tax, they’d have to introduce a bill and vote on it, and that’s just not going to happen,” said Davis.

With Republicans unwilling to compromise on the sales tax, Perdue’s veto, if it stood, would accomplish little but a prolonged stalemate.

“The first of July you get to a shut down if you don’t have a budget,” Haire said.

It’s no secret that the state budget is in a tight spot. In the few weeks the General Assembly has been in session, a raft of new laws already have hit the legislative floor, most proposing cuts in varying degrees of severity.

But perhaps the most debated has been Senate Bill 13, a Republican-penned proposal called the Balanced Budget Act of 2011. The bill calls for several money-moving measures that would dip into special pots of money in an effort to relieve the deficit — the most controversial being a proposal to raid the coffers of the Golden LEAF.

Golden LEAF has handed out hundreds of millions in grants during the past 12 years. Its purpose: use proceeds from the lawsuit against tobacco companies to help tobacco-dependent communities transition away from the ever-diminishing returns of the once-bumper crop and into other economic markets.

As the crown jewel of King Tobacco’s reign, few areas have benefited from the funds as much as the western counties. Haywood County alone has received more than $2.7 million in grants from Golden LEAF to fund projects such as the new Regional Livestock Market, a covered arena at the fairgrounds, a sewer line upgrade along Champion Drive in Canton and the Buy Haywood program, which helps local growers market and sell their products.

Jackson County has gotten more than $3.5 million to fund projects, though a good share of that was for regional efforts such as WNC EdNET, a program to bring broadband technology into public schools in six western counties.

Over the years, Golden LEAF has taken in $867 million and doled out just more than half of that as grants and scholarships, keeping the rest invested. Every year, the pot gets another influx of funds from the structured tobacco settlement, and that money is invested for future use.

For WNC, said L.T. Ward, that money has been invaluable, and losing it would be a hefty blow. Ward is the vice president of WNC Communities, the group that, among other things, is the driving force behind the Regional Livestock Market that’s scheduled to open next month in Canton.

The market will offer a place for local cattlemen to sell their livestock, something that’s currently missing from the regional landscape. Such a market is vital for the many former tobacco farmers who have now turned to cattle to replace their lost or dwindling profits.

That particular project got $600,000 from Golden LEAF, and more than that from the Tobacco Trust Fund, whose yearly allocation is also on the chopping block in SB13.

“If the Golden LEAF was not there, the numerous innovative ideas that are continuing to come forward would not because of lack of funding or encouragement,” Ward said. “We obviously would’ve been short of budget considerably.”

But lawmakers in favor of the bill — Republicans all, the vote was split directly down party lines — are quick to point out that no one is proposing a permanent shutdown of Golden LEAF. It’s more, they say, like a one-time emergency payment.

“We’re just taking this year’s allocation for the Golden LEAF,” said Rep. Jim Davis, R-Franklin. “The Golden LEAF still has $560 million. Their principal is still there.”

And while Davis stopped short of praising the fund outright, which many Republicans, particularly those outside rural areas, are wont to refer to as pork spending and corporate welfare, he was adamant about the proposal’s status as a temporary budget measure to cover this year’s shortfall.

But for those closest to Golden LEAF and its benefits, they’re afraid that the one-time measure will be a gateway to endless diversions of the foundation’s money away from the economically depressed communities it was created to help.

And it’s important to note that the money would be diverted for this year’s budget, which is already balanced. Next year, a $2.4 billion deficit, according to the most recent estimates, still lies in wait.

Robbing Peter

If you’re looking for a more vehement opponent of SB13 than Dan Gerlach, it would likely be a futile search. As president of Golden LEAF, he’s understandably worked up about the idea of swiping the foundation’s annual paycheck, and he’s worried that it won’t stop there.

He’s sympathetic, he said, to the legislature’s plight. There’s a pretty big gap between what they’ve got and what they need, and the cash to fill it has to come from somewhere. But he’s concerned that funneling it away from long-term economic drivers such as  Golden LEAF will only lead to more fiscal heartache in the future.

“The thing we’re defending against is the precedent that it would set,” said Gerlach. “Once you start diverting funds from their original purpose into the state’s general fund, it’s easier for this to happen again and again and again. We’ve been good stewards of this money, we should be allowed to continue to do so.”

That is precisely the argument that Democratic lawmakers are making, that while once in an emergency might be appropriate, it opens the floodgates to a slippery slope of fund rediversion that will eventually bleed the original funds dry.

“The first dip into that money is the hardest,” said Rep. Ray Rapp, D-Mars Hill. After that, he said, a dip back into the well becomes easier every time.

Unintended consequences

For Rapp, however, opposition isn’t just about the slippery slope argument, but about the unintended consequences that he sees this bill fostering.

“The funds just are not going to make that significant a difference in the overall savings, but it sends that chilling effect. We’re losing funding from a key economic development source, so it’s especially hurtful for us,” Rapp said.

That chilling effect he’s talking about is one Mark Clasby knows well. Clasby is the economic development director in Haywood County, so he spends a lot of his time courting businesses from around the region and around the nation to set up shop in Haywood County. And diversions like this that take money away from funds that could — and do — entice businesses into the region create a sense of uncertainty that could frighten away potential industry.

“Golden LEAF has been instrumental in recruiting businesses,” said Clasby.

“If you don’t have that kind of funding, then you have almost stagnation. You don’t have the opportunity to have development so you can create new jobs so you can make life better for individuals.”

Not everyone agrees, of course. Brian Balfour, an analyst at conservative thinktank Civitas, has long followed — and opposed — Golden LEAF precisely because it does offer government incentives to businesses.

“I would argue that the use of these incentives causes more uncertainty,” said Balfour, because it creates an economic picture that’s at the mercy of politicians, rather than the market. “It creates an uneven playing field. What that does is it politicizes more of the entrepreneurial decisions and the way the economy grows.”

Instead of incentives, said Balfour, what the state’s economy really needs is deregulation.

Proponents of funds such as Golden LEAF, however, would counter that, after tobacco’s quick exit, WNC in particular desperately needed some help to fill the massive economic gap the departing crop left in its wake.

To hear George Ivey tell it, Golden LEAF, along with the Tobacco Trust Fund and the NC Agriculture Development and Farmland Preservation Trust Fund, have been invaluable in helping revitalize rural areas left destitute by tobacco.

Ivey is a grant writer, consultant and project manager in Haywood County who has been closely involved with many of the area’s Golden LEAF recipients, including the Regional Livestock Market.

“Those three funds are really the primary funders of a lot of projects throughout the state and throughout this region,” said Ivey. “Without them, I honestly don’t know where you turn, because they both have the money and understand the role that farming plays, not only for farmers but in the larger community.

“Those three funds understand that tobacco is gone but agriculture is still the No. 1 driver of the North Carolina economy.”

And that’s pretty much the argument made by the foundation itself: we’re helping to revitalize the rural economy at no cost to the taxpayer; let us keep doing it. Indeed, it is the ready defense Dan Gerlach has for his foundation’s mission and existence.

“Our investment earnings have been over $214 million on the investments that we make,” said Gerlach. “We have paid for grants that didn’t have to come from any taxpayers pocket.”

The subtext there is clear: isn’t a 12 percent return that’s being put back into economic development better than just dumping cash into the general fund?

And that’s a hard argument for Republican lawmakers to counter. In fact, few are trying to do so. But many are pointing at the $2.4 billion hole that’s looming on the horizon in next year’s budget, making the strong point that it has to be filled somehow, and it’s easy to see why Golden LEAF is an enticing cash cow indeed. Compare that to cutting teachers, for example, or community college budgets.

“We have to get our fiscal house in order,” said Davis. “It’s going to be painful, and our job and our mission is to spread the pain.”

What is the Golden LEAF fund?

A quick look at the history of Western North Carolina will show that there is no crop more important than tobacco. The plant has left an indelible mark on the mountain landscape, first with the streams of money it brought, and then the economic hole it has left.

Today, though tobacco itself no longer occupies a place of prominence, its economic effects are still rippling through the mountains, mostly in the form of grant money from Golden LEAF.

For the last 12 years, the region’s tobacco-dependent communities have been reaping the spoils of a massive lawsuit brought by 45 states against major tobacco companies over healthcare costs caused by tobacco use.

In North Carolina, that’s totaled nearly $1.7 billion so far, with 50 percent going straight to the Golden LEAF. The foundation — officially dubbed the Long-Term Economic Advancement Foundation — was set up to funnel that money back into the state’s tobacco-dependent communities.

While other states dropped their settlement cash straight into the general fund from the outset, North Carolina shied away from that approach, setting up Golden LEAF and other stewards — notably the Tobacco Trust Fund — to look after and dole out the settlement cash to tobacco-dependent areas in an effort to foster economic growth.

Local spending

Haywood County Agriculture and Activities Center Association, Inc.: $275,000

Construction and upgrades at the multi-purpose arena at the Haywood County Fairgrounds.

Haywood Community College: $1,573,109

Establishment of the Western Regional Advanced Machining Center at the Regional High Technology Center (RHTC).

Haywood County: $60,000

Created the Buy Haywood Market Development Project to develop a comprehensive plan to brand Haywood County tomatoes and peppers.

Haywood County Schools Foundation: $250,000

Expanded the machinist training program at Pisgah High School to meet the demand for highly skilled machinists.

Haywood County Economic Development Commission: $85,000

Funded the Buy Haywood Market Development Project which helps develop markets for Haywood County farmers.

Haywood Vocational Opportunities, Inc.: $300,000

Helped Haywood Vocational Opportunities, Inc. (HVO) expand its operations and secure additional contracts for production of medical supplies.

Haywood County Economic Development Commission: $15,000

Funded statewide feasibility study to identify demand for a poultry and rabbit processing facility in WNC.

Haywood County Schools Foundation: $50,182

Purchased an office mill and lathe for Pisgah High School metals program.

Town of Canton: $100,000

Expand and upgrade the Canton’s wastewater infrastructure in the I-40 Corridor at Exit 31.

Southwestern Community College: $75,000

E-commerce marketing plans and strategies for a three-county area.

North Carolina Center for the Advancement of Teaching: $930,186

Funding for the North Carolina Center for the Advancement of Teaching’s continuing effort to increase the number of National Board Certified Teachers.

Jackson County: $135,000

Funding for the Jackson County Green Energy Park.

Western Carolina University: $200,000

Western Carolina University’s innovative product development plan for the health care industry.

Western Carolina University: $37,000

Support for the Kimmel School Construction Training Program at Western Carolina University.

Southwestern N.C. Planning & Economic Development Commission: $2,205,539

Funded high-speed broadband connections to schools and counties in a six-county area.

Total: $6,291,016

Most people predicted that this session of the North Carolina General Assembly was going to be fast and furious, and it appears that is indeed the case. The GOP-led General Assembly is advancing legislation that Democrats have traditionally not supported, like raising the cap on charter schools and opposing the federal health care law passed last year by Congress.

In addition, the $3.7 billion projected budget shortfall is also forcing lawmakers to look all over for money, a challenge that is also highlighting the different philosophies of both parties.

The Golden Leaf as a golden egg

It appears a move is afoot to snag money that is supposed to be headed for the Golden LEAF Foundation.

This fund was established from the tobacco settlement proceeds and is supposed to be used to promote the “long-term, economic advancement of rural, economically distressed, and tobacco-dependent counties.” That said, the $68 million annual settlement payment is being eyed by GOP leaders in the General Assembly as a piece of the deficit-reduction puzzle.

On Thursday, the Senate gave tentative approval to a plan that would take proposal that would take money from approximately 20 state accounts and the three funds supported by the 1998 national tobacco settlement — Golden LEAF gets half the tobacco settlement money, and two sister funds, the Health and Wellness Trust Fund and the Tobacco Trust Fund, share the other half.

The vote was 30-18 to take what would amount to about $142 million in all.

An email was sent out yesterday by the Golden Leaf Foundation president saying the idea was a bad one, and that other states have taken similar actions with bad results.

“That’s not the answer. Other states have used their tobacco settlement funds long ago to patch their budget. Now their money is gone, and they face the same issues we face but don’t have access to the assets you currently do through the Golden LEAF Foundation to create jobs and expand economic opportunity. Golden LEAF has helped create an anticipated 4,300 jobs and over $900 million in capital investments in the last two years alone, wrote Golden Leaf president Dan Gerlach.

A Western North Carolina source who is involved in an economic development project funded by the Golden Leaf Fund told The Smoky Mountain News on Thursday that conference calls were held around the region on Thursday to discuss the possibility the fund would be raided and ongoing projects might be stopped in their tracks.

So far this issue has been mostly split right down party lines, with Republicans supporting taking the money and Democrats — along with Gov. Bev Perdue — insisting the money stay where it is. Some Republicans have suggested that the Golden LEAF Fund should be dissolved and all of its $600 million in assets go toward deficit reduction.

N.C.’s own health care debate

Rep. Ray Rapp, D- Mars Hill, wrote in his e-newsletter that debate on repealing the federal health care law was one of the two dominant topics from the General Assembly’s first full week in session (the other was the economy).

Republicans in the House introduced and passed a bill to block the requirement in the federal health care law that requires everyone to buy health insurance by 2014. The bill — which passed essentially along party lines, 66-50 — would force Attorney General Roy Cooper to join other states in challenging the federal law.

“It only seems fair that we ask everyone to take personal responsibility for their own health by purchasing their own insurance so that we can require insurers to cover people with pre-existing conditions, allow young people to stay on their parents’ health policies until age 26, eliminate life time limits and provide tax credits for small businesses that want to cover their employees,” said Rapp, who has been appointed Democratic whip for this session of the General Assembly.

Rapp and other Democrats point out that the Attorney General has said it would cost $344,000 to join the suit, tough money to come by in the face of the projected budget shortfall. Both Rapp and Rep. Phil Haire, D-Sylva, voted against the bill. Rep. Roger West, R-Marble, voted for the bill.

In other General Assembly news

• As reported in the Asheville Citizen-Times Friday, Feb. 4, bills are progressing in both the House and Senate that would ban the practice of involuntary annexation, which forces residents near town limits into the town’s jurisdiction. Annexations typically mean additional city taxes and are usually accompanied by more services.

However, towns now have the right to grow their boundaries even if the residents to be annexed don’t support the move. These laws would ban that type annexation.

“I believe that people should have the opportunity to vote whether or not they should be included in an adjacent municipality,” said rep. Tim Moffitt, a Republican lawmaker from Buncombe County.

The bills would halt all involuntary annexations until July 1, 2012, during which time GOP leaders want to craft a new set of laws governing annexation.

• The Associated Press is reporting that Republicans are in support of a bill to lift the cap on charter schools and allowing proceeds from the state lottery to be used to build new charter schools.

State laws governing charter schools have changed very little since a bill passed in 1996 allowing for up to 100 charter schools in North Carolina. Because of the cap, charter school supporters say students in 53 of the state’s counties don’t have charter schools. The current 100 schools have a waiting list of 20,000 families, according to Darrell Allison, president of Parents for Educational Freedom in North Carolina.

Charter schools don’t charge tuition and have open enrollment. They are run by private boards and exempt from many of the rules that are in place in traditional public schools. The state money allocated for each student follows that student to a charter school, but so far charters have not received any lottery money.

Opponents also worry that lifting the requirement that enrollment in charter schools reflect the general racial and ethnic composition of a county could lead to problems. They argued for slowly raising the allowable number of schools rather than a blanket lifting of the cap.

“What I do not want to do is create a dual system of schools and charter schools,” said Sen. Malcolm Graham, D-Mecklenburg.

The bill is currently in committee.

With Gov. Beverly Perdue reversing her stance on her previous suggestion to privatize liquor sales, towns can rest assured they’ll probably not soon see this important revenue stream go dry.

In Waynesville, beneficiary of about $170,000 in annual profits from its ABC store, Perdue’s announcement might give the local ABC board the reassurance it needs to decide how to best handle cramped quarters. Should Waynesville build a new store as previously considered near the big, new Super Wal-Mart; or, should Waynesville simply expand its existing ABC store? said Town Manager Lee Galloway.

The state’s ABC commission in March approved Waynesville’s request to build a second store. Indecision over whether the state might privatize liquor sales put the plan into limbo, however.

Though, truthfully, Galloway wasn’t all that worried about this looming financial threat to the town’s coffers. He said he believes if the proposal moves forward, which seems highly doubtful now without Perdue’s backing, the state would find another method of reimbursing towns for the docked dollars.

Perdue made her I’m-now-against-privatization announcement last week at a meeting of county commissioners attending a legislative goals session in Durham. In the audience was Macon County Commissioner Ronnie Beale, whose primary concern centered on consumption, not revenue. In this, the local Democrat had an ally in the Christian Action League of North Carolina, which bills itself as having the largest networks of members, volunteers and churches of any Christian public-policy group in the state.

The Christian Action League opposed privatization on the grounds people might drink more if access wasn’t state controlled. Walter Harris, president of the Association of ABC Boards, flatly stated he, too, believed privatization would result in increased imbibing.

“I think it is a wise decision not to put liquor at every stop,” Beale said, adding that North Carolina’s less-than-happy experience with privatizing mental-health care raises serious questions about such initiatives.

Billed as “reform,” many critics — including Beale — have said the new mental-health care system in North Carolina fails to provide the state’s most vulnerable residents with basic, much less adequate, care.

Some highly placed Republicans in the now GOP-controlled legislature had expressed their concerns, too, about letting private business owners sell liquor out of grocery stores or other retail stops. North Carolina currently controls every aspect of the more than $5 billion business, but the governor was eyeing privatization as a means of generating dollars to help with the state’s $3.7 billion shortfall.

Adding fuel to the idea of letting vendors handle liquor sales were a number of lurid headline-generating stories about high times by, and high salaries of, some ABC board members downstate.

Such issues, Beale said, can best be handled through other means than simply handing off sales to private business owners.

Franklin Mayor Joe Collins said he believes the current system works, and that by confining liquor sales to (in Franklin’s case) a single store, “certain challenges” surrounding alcoholic beverage sales are more easily controlled. The mayor added he was pleased that, after study, the governor was willing to squelch her own idea.

Canton Town Manager Al Matthews said he isn’t so sure the matter is closed, however, and said the issue merits continued monitoring. Canton, particularly, might have been in a bit of a pickle if privatization had occurred — it has a relatively new ABC store, and sales revenue is being used to offset the building costs.

“Somebody was going to be stuck with a debt,” Matthews said.

2010 gross sales at area ABC stores

Canton    $964,474

Maggie Valley    $1,588,210

Waynesville    $2,107,992

Sylva    $2,610,265*

Franklin    $2,434,888

Highlands    $1,567,570

Bryson City    $1,751,508*

SOURCE: North Carolina ABC Commission

* Bryson City and Sylva sales include alcohol purchased by Harrah’s Cherokee Casino