It's 5.05 and welcome in to a Tuesday edition of the Carolina Journal News Hour on Charlotte's FM News Talk, 107.9 FM, WBT. I'm Nick Craig. Good morning to you. We are following some news this morning out of the North Carolina legislature as Anna Ferguson, who is a Western North Carolina businesswoman and member of the Eastern Band of Cherokee Indians, has been selected by local Republican leaders to fill a vacant seat in the North Carolina House. GOP officials in Jackson, Swain, and Transylvania counties chose Ferguson to represent House District 119.
This is following the very sad death of Representative Mike Clampett, who died last month after a battle with cancer, leaving that seat open for the remainder of his term and he as the candidate for the upcoming election later this year. Ferguson's selection makes her the first enrolled member of the Eastern Band of Cherokee Indians chosen to serve in the North Carolina House. House Speaker Destin Hall, the Republican from Caldwell County, praised Ferguson's selection and emphasized the importance of continued representation for the region. Saying in part in a post, congratulations to Anna Ferguson on her win. The people of Jackson, Swain, and Transylvania counties have chosen a dedicated advocate to represent their district.
I look forward to working with Anna in the North Carolina House to continue advancing policies that support Western North Carolina and our entire state, including our ongoing efforts to help our neighbors recover and rebuild from Hurricane Helene. House District 119 covers a largely rural swath of Western North Carolina, including Jackson, Swain, and Transylvania counties, as well as some portions which are home to the Eastern Band of Cherokee Indians. Ferguson, a Republican, brings experience in construction finance and has been active in local boards and the commissions throughout the community within the region. She did run in the Republican primary that we saw back in early March of this year. She finished second in.
That Republican primary receiving 37.6% of the vote behind Representative Mike Clampett's 56.7%. As I mentioned, Ferguson will serve the remainder of Clampett's term and will be and is expected to face Democrat Marca Burroughs of Transylvania County in the November the 3rd general election and hold on to House District 119 in that seat for Republicans. We'll keep an eye on this. Congratulations to. Representative Ferguson will expect lawmakers back in Raleigh next week, where she will officially likely be sworn into office.
We'll keep an eye on the details over on our website, CarolinaJournal.com, and of course, right here on the Carolina Journal NewsHour. In some other statewide news this morning, the North Carolina Treasurer's Office is expanding its use of artificial intelligence after a strong pilot program and strong results over the last year. North Carolina State Treasurer Brad Breiner announced that his department has successfully integrated artificial intelligence into its daily workflows following a successful 12-week pilot program with OpenAI last year. The department spearheaded the first AI program in state government, using it in the department's unclaimed property as well as state and local government divisions. The announcement of the partnership took place at North Carolina Central University Student Center in Durham, which is an AI hub area for HBCUs in March of 2025.
Breiner said a month later in August that the program had very good results in using OpenAI's very popular chat GPT product, saying at the time, what we've learned first and perhaps most unsurprisingly is that this technology saves a material amount of time. We estimate, thanks to our friends at North Carolina Central University, which conducted the evaluation. That it improved the productivity of our employees by about 10% in the early phases of the trial. The last piece is important because the second thing we learned is that it kept improving, and it would have kept improving had the trial not ended.
So, we did not get to maximize some level of productivity in the 12 weeks we did that in which we did this. And then, third, we were able to orient our people towards more complex and human-centered interactions, which are inherently more productive and satisfying. According to Dr. Day Grady, the founding director of the university's Institute for Artificial Intelligence and Emerging Research, he said that the 48-page report shows that the employees using ChatGPT expressed relief, enthusiasm, and delight. Overall, 71% of individuals within the 12-week pilot program within the state treasurer's office had a very positive statement when using ChatGPT, while only 7% felt neutral about using the software.
Employees began saving anywhere between fifteen to thirty minutes in the beginning of the initial survey, with that time going up to thirty to sixty minutes on average a day with the final results. Again, noting this was only a twelve week pilot program and survey. The department continued testing use cases and multiple AI engines. And with the testing phase complete, training and implementation of artificial intelligence within the office are underway through the department. The treasurer and Republican Brad Briner said in a recent press release, We have a moral obligation to the taxpayers to use their money wisely.
That means improving the efficiency of everything we do as state government. And artificial intelligence is already being used throughout the private sector with stunning results. Our 12-week pilot program with OpenAI showed up to a 10% increased productivity in certain divisions. We expect that implementing AI tools across the department will replicate that productivity increase across our entire team, leading to better return for your taxpayer dollars. All division members have undergone training to maximize the use of AI engines as well as streamlining their day to day tasks all while adhering to privacy standards that they have always followed.
The department has developed a strict policy governing the use of AI to ensure safe and secure protection of all personal and private data, of which the treasurer's office obviously has a lot of. The department has multiple divisions with very different functions, and as a result, multiple different engines have been deployed. Examples of use include coding, audit comparison, deep research, brainstorming, looking into hidden data, as well as assisting with legal compliance. The department's information technology team is currently and will continue tracking AI use and effectiveness through this transition. As we are seeing here in North Carolina, the news out of state Treasurer Brad Briner's office that they are, in fact, moving forward with a long-term implementation and use of artificial intelligence within the treasurer's office.
A 12-week pilot taking place in 2025 had some showed some very strong signs of increased productivity within the office. And as we see with many pilot programs kind of baked into the name and the premise, they run for a relatively short amount of time. The individuals within a variety of different entities can look at the results of that pilot program and determine whether it is something that makes sense or is practical to use in the long term. And according to the details that we're tracking from state treasurer Brad Briner, he, in fact, does feel that AI can. Be very beneficial to the treasurer's office.
We will keep an eye on the implementation, on the use, and on the productivity gains that productivity gains, I should say, that the treasurer highlights.
So, we'll have continued coverage of that right here on the Carolina Journal News Hour. You can read more on this story by visiting our website, CarolinaJournal.com. The headline there: NC Treasurer expands AI use after strong pilot results. When you manage procurement for multiple facilities, every order matters. But when it's for a hospital system, they matter even more.
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Welcome back to the Carolina Journal News Hour, Charlotte's FM News Talk, 107.9 FM, WBT. We were just talking a little bit earlier about AI as the North Carolina treasurer's office and Brad Briner leading the charge there. That is also fueling discussions about data centers here in North Carolina. Democrat Governor Josh Stein's proposal to revisit North Carolina's data center tax incentive is now drawing attention from lawmakers and industry leaders, with some raising questions about the process, available data, and the level of legislative involvement. Stein's administration has begun examining a long-standing sales tax exemption for data centers, citing concerns that the industry's rapid expansion could increase electricity demand and potentially affect costs.
For residential and small business ratepayers. The governor took to social media last week to write in part: if all planned data centers in North Carolina are built, developers would receive an estimated $450 million in sales tax exemptions each and every year. And with the state's impending fiscal cliff and the federal government retreating on long-standing commitments, state revenue is especially precious. We should spend tax dollars only where it adds value to the people. And do we really want to subsidize energy consumption by data centers when they are making everybody else's power bills go up?
It doesn't make much sense to me, is what the governor wrote on X this or late last week. The discussion is unfolding within the governor's state energy policy task force, which has been studying the strain that large-scale computing facilities place on the power grid. with the governor saying, quote, we cannot be blind to the impact that these data centers are having on our state. They need to pay their way so that our residential consumers don't have to bear those costs. Stein questioned the rationale behind continuing the tax incentive, saying, do we really want to subsidize data center consumptions of energy and electricity when they make everybody else's power bills go up?
Joseph Harris, a fiscal policy analyst at the John Locke Foundation, said that tax policy can determine ultimately who bears some of those costs. With Harris telling the Carolina Journal, targeted tax exemptions such as those for data centers distort resource allocation and ultimately require higher rates for everybody else. A lower broad-based tax rate is a more efficient and sustainable alternative. Governor Stein finished by emphasizing that his administration is not opposed to the industry itself, but to what he describes as an imbalance in the distribution of costs, saying during the meeting, AI will be part of our future, and we want to keep innovation central to this state's economic development strategy. but we cannot be blind to the impact that these data centers are having on our state.
The governor argued that the broader economic environment has shifted, reducing the need for incentives altogether. He has framed the issue as a matter of protecting ratepayers, citing rapid growth in energy demand driven by those data centers themselves. That concern resonates strongly with voters. In our most recent Carolina Journal poll, we found overwhelming support among North Carolina voters for requiring data centers to generate their own electricity rather than relying on the broader grid. Nearly 78% of likely voters supported that requirement, including about 60% who said that they strongly supported it, while fewer than 10% opposed said idea.
But members of the task force and others in attendance raised concerns about both the process and the substance of the proposal. Questioning whether a sweeping change to state tax policy should originate outside of the General Assembly. Several lawmakers indicated the issue surfaced quickly with limited prior vetting, leaving some members feeling caught off guard by its scope. Others questioned whether an executive-led energy panel is the appropriate venue for shaping tax policy with far-reaching economic implications. Industry representatives echoed some of those same concerns.
Amazon's government affairs official, Rob Corderi, questioned whether state energy policy questioned whether the state energy policy task force was the appropriate place to begin the conversation about the sales and use tax exemption. Instead, he said that the discussion should start in the General Assembly, with the government affairs official from Amazon also noting that similar efforts in other states have largely failed, pointing to proposals in Virginia and Georgia to roll back or limit data center tax incentives. Beyond the procedural concerns, he warned that changing the rules after companies have already committed significant investments could have broader consequences. For example, For example, in Richmond County, Amazon is planning a data center project with investments upwards of $10 billion. With Corderi saying, we should think about what it looks like when a state makes assurances to an industry that is part of the reason why they came to the state, is that the certain exemptions are in place.
And then, once the industry makes those commitments and starts hiring North Carolina residents and creating jobs that are both permanent and long-term temporary jobs here in the state. what it looks like for a state's business, frankly, its reputation if that landscape begins to shift. A recent analysis by the North Carolina Department of Commerce estimated that existing data centers avoid anywhere between $45 to $57 million in sales tax annually, including roughly $25 to $37 million in equipment sales taxes and about $20 million in electricity sales tax.
Some pretty significant dollar figures and amounts there, according to the North Carolina Department of Commerce. And those numbers are projected to grow significantly just over the next couple of years. If planned projects move forward, officials estimate that the state could forego anywhere between $1.5 million and $2.3 billion in tax revenue during just construction alone, with an additional $450 million in tax revenue annually once those facilities are operated. Operational. The state, however, lacks precise data on the true cost of those tax breaks, as North Carolina has not historically required data center operators to report the value of their sales tax exemptions, leaving policymakers to rely on estimates rather than verified hard figures.
Task force members have also acknowledged that the state does not yet fully understand the full impact of data centers on energy demand, infrastructure needs, and long-term costs. That lack of firm data has fueled skepticism about the proposal's timing, with one attendee at the meeting saying, This is a major policy shift being discussed without a complete picture. Critics on the panel also pointed to what they see as an incomplete financial picture. While the administration's analysis emphasized potential lost tax revenue, it did not provide a full accounting. Of the economic benefits associated with data center investments, according to some others on the panel.
who said that the lack of a comprehensive cost-benefit analysis makes it difficult for lawmakers to fully evaluate some of those trade-offs. For now, the discussion remains in its early stages with no former proposals introduced within the legislature. Any changes to the tax code would ultimately have to be required by the General Assembly.
However, lawmakers are expected back in Raleigh over the next couple of weeks.
So if there is some appetite to move forward on it, well, now would be the time as lawmakers head back to Raleigh. We'll keep an eye on the details over on our website, CarolinaJournal.com and right here on the Carolina Journal News Hour. You can read more on our story this morning with the headline, Stein Data Center Tax Plan Draws Attention from Lawmakers. It's 537. Welcome back to the Carolina Journal News Hour, Charlotte's FM News Talk 107.9 FM, WBT.
I'm Nick Craig. A good Tuesday morning to you. We have talked a lot over the last year and a half, tracking recovery efforts in western North Carolina after unimaginable devastation left in the wake of Hurricane Helene.
However, a lot of our coverage has been focused on state and federal recovery efforts. While we've continued to document those and will continue to do so over on our website, CarolinaJournal.com, there are private entities that have literally been on the ground since day one in Western North Carolina. It walks through some of those details this morning and a pretty major expansion by one of these private entities. Teresa Opeka, CarolinaJournal.com, joins us on the Carolina Journal News Hour. Teresa, we've talked, again, as I mentioned a lot about these state efforts, but a group called Samaritan's Purse really has been working hard now for a year and a half to help.
people in Western North Carolina. What's the latest that you're following from them? Sure. Good morning, Nick. Thanks for having me.
So yes. It was announced last week that the Boone-based organization is expanding its rebuild program. They're adding about 19 new locations across four states, and that includes North Carolina, to those that were affected by Hurricane Helene's devastation.
So, you know, this has really gone out of the headlines on a national level, but it's the work still continues in Western North Carolina and those other states affected by Helene, like you said, a year and a half ago.
So, and while we're waiting for maybe more FEMA money, for more money from the state. Organizations like Samaritans Purse have really stepped up and really have helped out. And it's great to see that they are expanding their rebuild program. You know, it's just been a phenomenal success with them rebuilding houses or they've you know making different repairs, also giving replacement mobile homes, repairing bridges and culverts, and also replacing furniture. They've done a ton of things.
So, yeah, it is really good to see that they are expanding this program because the need is most definitely still there. Yeah, and it's crazy to think about September of 2024. We're still talking about it here in the early slash middle parts of 2026. And Teresa, you highlighted a couple of things there. The new secretary of the DHS, Mark Wayne Mullen, in Western North Carolina back just a couple of weeks ago.
The General Assembly expected back in Raleigh likely to move on some additional funding for Western North Carolina. But Teresa, regardless of how quickly FEMA gets their act together or how quickly lawmakers can appropriate dollars out of Raleigh and get them to Western North Carolina, there's still a lot of bureaucracy. There's still a lot of bloat. There's still a lot of red tape. Anytime you're talking about federal or state dollars, and that is something that a group like Samaritan's Purse, while yes, they do receive some grant funding, they have a lot more autonomy.
And it turns out they can do things a lot more efficiently. Yeah, imagine that, right? No red tape, nothing, you know, holding anything back. They're just going in there and doing the job and doing the job well and helping these people well-deserved who really, really need this because it's been so hard on so many people out in the western part of the state. You're talking, the reports they've completed at least 26 new homes with about 30 currently under construction.
There's more than 80 mobile homes delivered and major repairs on more than 100 houses. And additionally, there's been more than 180 families that have been approved for rebuilds, repairs, and also mobile home replacements. And the organization's also repaired or replaced more than, I believe it's 870 bridges, driveways, and culverts. That's just amazing. And, you know, also too, helping out what NCDOT as well.
So, all the way around, they've been a truly tremendous organization.
Well, and you know, you talk about that number 26, which not slandering Samaritans person. It is a relatively small number, more than a year and a half removed from the storm. But Teresa, as of last count, about three weeks ago, when we got an update from the Grow NC team here in North Carolina, that number was at 28 homes that had been completed there. They've had billions of dollars worth of federal and state dollars pumping through that program.
So amazing to see essentially the same amount of progress from state officials and this private entity that does not have anywhere near access to the amount of money and or resources that we see out of both federal, state, and local governments. Right.
So, for them to be on the same level, practically the state, doing what they're doing on their own and, you know, and getting help donations and volunteers, it's just amazing that they have done that. And it does speak volumes to what you can do if you put your nose to the grindstone and do all this. And, you know, they the Samaritan's Purse put out this press release. They spotlighted one lady who said she can't believe she's going home. She and her son finally get a home.
She was just so excited because her home was so damaged with water damage, foundation, and widespread black mold. And it was just exciting to see that and read about that. And our article has all the work that they have done right from the beginning. They helped out area hospitals, they put up a field hospital, they airlifted different people with helicopters. They've done so much.
And just seeing how many, you know, even a year later, they testified at a joint legislative subcommittee hearing on what was done. And it's just amazing. The amount of work that they did.
So, I mean, kudos to them. And the work continues. It's definitely needed because those people are still suffering out there. Yeah, they were delivering generators, Starlink units, bottled water to many communities in the very early days. Teresa, I remember you and I explicitly talking about this areas that were still cut off and would remain cut off for weeks from the rest of civilization due to roads and bridges washing out, pathways that had previously been accessible completely eroding away.
And, you know, as we look at this and, of course, keep an eye on these recovery efforts as we approach the two-year mark. You highlighted something important in this announcement from Samaritan's Purse. They're also talking about roads, driveways, culverts, and private bridges. That is something that is very unique to Western North Carolina. Whether you're in Raleigh or Charlotte, Wilmington, Asheville, some of our other larger municipalities, there's very few, if any, large private roads or private bridges that exist.
However, that is very much a different story the more and more West in North Carolina that you move. Teresa, some of these individuals and some of these communities are connected by mile-wide. Or mile-long private roadways. FEMA's not going to cover that. The state's not going to cover it because it's not under DOT.
These individuals are in a really, really tough spot. Yeah, they are. They are. North Carolina is unique in the fact that there aren't other municipalities that also handle roadways. Most of the roadways in the state are state-owned.
You have in other states have townships or different towns that have their own DOT departments and they can do, excuse me, requests for funding.
So, yeah, but you say some of these are really, really remote. They're just hanging by a thread, literally. And to see that people are actually coming in, like Samaritan's Purse, we also highlight Baptist Some Mission in this story as well, them all coming in and helping at a time where you're cut off from civilization. Like you say, it was weeks, maybe you didn't have communication, but there's no way in and out. What if you have an emergency?
It's just something that we really had to think about, and it was so important for you. know Samaritan's purse to get in there and help them as well.
Well, and it's not just the group itself. They've also had thousands of volunteers that have spent, I mean, Teresa, I don't even know if you could begin to calculate the amount of man hours that have been spent over the last 16 months or so with these individuals in Western North Carolina. But obviously, when you're talking about a group that is outside the scope of a state, federal, or local government, they do have the ability to bring in volunteers and help these projects progress in a much quicker manner. And we are seeing the results of that play out right in front of our very eyes. Oh, absolutely.
You know, right from the beginning, when we were reporting on this, they had so many people willing to volunteer. They were coming in from all parts of the country as soon as they could get through safely. And that did make a difference. And there was no red tape other than the fact that maybe they had a way to find a safe pathway to get in so they could begin helping. But, you know, and that is truly the spirit.
You know, if you want to get on the 250th, I mean, not tying this in, but the spirit of the American people and of also different people across the country. And it all boils down to, you know, it doesn't matter if you're in a big city or if you're in a small town, the people do truly want to spread that sense of community and help one another when people really need it the most.
So it was really great to see. It's great to see that all this is happening. You know, and just, again, where would a lot of people be without this organization and others coming in and lending their support? Yeah, you talked about Baptists on Mission briefly. They received a pretty significant amount of money from the state of North Carolina through some grant programs.
Teresa, recently the State Auditor's Office released a report on that entity. Things seem to be going pretty well there as well. Yeah.
So what they did, the auditor's office, they assessed about three million dollars in state grant money that was spent by Baptists on Mission for Home Repairs in Western North Carolina. And what the state auditor Dave Bolick's office found is that they maintained full compliance with the Office of State Budget and Management Grant requirements and adhere to all statutory, contractual, and financial management standards. They just did a really great job. Auditor Bolick had nothing but praise for the success story that Baptists on Mission. Helped people in Western North Carolina when they needed it the most and did it with a sense of urgency.
So, yeah, they did that. If you're gonna break down numbers, they completed roughly about 472 grant-related home repair projects from February of 2025 through October of 2025. And analysis shows the average expenditures from those grant funds was a little over $6,000 per home repair project. And they initially estimated the cost of repairs maybe at approximately $20,000 per home. And while some projects did include additional funding, the nonprofit did agree with the assessment that they effectively reduced per repair project costs by, and this is a quote, utilizing volunteer labor, securing disaster relief discounts from retailers, and both purchasing building materials.
So, I mean, for them to do that as well, and you know, we're waiting on government funding, but they're finding ways to maybe reduce things, get help through other ways, they should be commended for their success. Absolutely. Teresa, it really does show a true black and white image, as we've talked about in years past, the failures of a state like North Carolina to provide some of these relief efforts for victims in eastern North Carolina, now near the 10-year mark of Hurricanes Matthew and Florence, and unfortunately, some of the slowdowns that remain in western North Carolina as it relates to those recovery efforts from state government. Phenomenal report this morning. You've got some quotes, including from that one homeowner and her son, who are now back in their home.
Where can folks go and get those details this morning? Sure, they can head on over to CarolinaJournal.com. We appreciate the update. Teresa Opeka joins us on the Carolina Journal News Hour. Bye bye.
Good morning again. It's 5.56. Welcome back to the Carolina Journal News Hour, Charlotte's FM News Talk 107.9 FM, WBT. We are soon to have a new member within the North Carolina General Assembly. Fortunately, we reported back a couple of months ago that Representative Mike Clampett, who has been a long-serving member of the North Carolina General Assembly, died last month after a long-term battle with cancer.
And with that, well, his replacement has been selected. Anna Ferguson, a Western North Carolina businesswoman and also a member of the Eastern Band of Cherokee Indians, has been selected by GOP officials in Jackson, Swain, and Transylvania counties to represent House District 119. Ferguson's selection makes her the first enrolled member of the Eastern Band of Cherokee Indians to be in the North Carolina House. House Speaker Destin Hall said, congratulations. Congratulations to Anna Ferguson.
The people of Jackson, Swain, and Transylvania counties have chosen a dedicated advocate to represent their district. I look forward to working with Anna in the North Carolina House to continue advancing policies that support Western North Carolina and our entire state, including our ongoing efforts to help neighbors recover and rebuild from Hurricane Helene. Ferguson will serve the remainder of Clampett's term and is expected to face Democrat Mark Burroughs of Transylvania County in the November the 3rd general election. We'll keep an eye on that right here on the Carolina Journal News Hour. That's going to do it for a Tuesday edition.
WBT News is next, followed by Good Morning BT. We're back with you tomorrow morning, 5-6, right here on Charlotte's FM News Talk, 107.9 WBT.
