Control of tobacco millions may shift; Bill would kill LEAF Foundation
BYLINE: Jerry Allegood, Staff Writer
More than half the state Senate has endorsed legislation that would abolish the Golden LEAF Foundation, which distributes millions of dollars from the state's settlement with tobacco companies.
The legislation, introduced Monday by Sen. Clark Jenkins, D-Edgecombe, would direct money now disbursed by Golden LEAF into a trust fund to benefit "tobacco-dependent communities." That money -- now about $600 million -- would be distributed by the N.C. Rural Economic Development Center, a private not-for-profit organization that works with rural areas.
Jenkins said the legislation was prompted by complaints that Golden LEAF was not doing enough to help counties hurt by the loss of tobacco production. He said many projects were approved in areas, including western counties, that did not rely on tobacco.
"It was just a matter of frustration," he said. "We've had applications in ... [Eastern North Carolina] that were turned down."
In one example, he said, the foundation denied money to help the small Edgecombe County town of Princeville build a museum in a former town hall. Jenkins said museums were approved elsewhere.
He said 15 Republicans and 12 Democrats are listed as sponsors.
The foundation was established in 1999 to manage half the money the state receives from a settlement with cigarette companies.
Valeria L. Lee, Golden LEAF's president, said the foundation was established to help economically distressed counties, not just those that were tobacco-dependent. "We don't make a grant just based on where the post office is," she said.
Lee said criticism occurs anytime a request is denied. She said the Princeville project Jenkins cited was turned down because it apparently could not be maintained without continuing Golden LEAF money.
Gov. Mike Easley has called on Golden LEAF to be more aggressive in helping rural areas. Speaking after a March 14 meeting of the N.C. Chamber in Durham, Easley said the foundation should use more money to build infrastructure and buildings to attract industry.
Seth Effron, Easley's spokesman, said Thursday the foundation is only a small portion of a court settlement involving 50 states and 50 tobacco companies. "It would be difficult to ever attempt to amend it," Effron said.
He said Easley thinks the foundation needs to be more "attentive and aggressive to the mission it serves under the court order, even if some board members need to be replaced."
Richard Holder of Kinston, chairman of the foundation's 15- member board, said the foundation was already planning to change its approach by going into communities to see what they needed, rather than wait for grant applications.
The foundation has awarded about 560 grants since 2000, totaling $205 million. The money has paid for a variety of projects, from increasing tourism in rural communities to funding new educational programs.
Recent grants included $150,000 to help create an East Coast Drag Racing Hall of Fame Museum in Vance County and $1.5 million to N.C. State University to build a pilot plant that can convert sweet potatoes, switch grass and loblolly pines into ethanol.
Billy Ray Hall, president of the N.C. Rural Economic Development Center Inc., said his organization worked well with Golden LEAF and was not seeking to administer the tobacco settlement money. He said his 50-member board had no plans to support Jenkins' legislation.