<< Back 6/19/02 Easley takes plate money from nonprofits By Don Hendershot The state of North Carolina’s scramble to find money to make up for its huge budget shortfall has been extended to include the coffers of nonprofit organizations like Friends of the Smokies. The state Department of Transportation — under instructions from Gov. Mike Easley — has transferred $194,548 from the Special Registration Plate Account and $89,735 from the Collegiate and Cultural Plate Account (CCAPA) to the general fund. This money for specialized/personalized license plates is collected by DMV and then dispersed quarterly to the organization it is earmarked for. To buy a Friends of the Smokies tag, one pays $30. Ten dollars of that goes to the state for registration fees and the other $20 is supposed to go to FOS to aid in their mission to preserve and protect the Great Smoky Mountains National Park. FOS raises money and public awareness, and also provides volunteers for needed projects. George Ivey, the assistant director of FOS who works out the group’s Waynesville office, received a letter from the state in May announcing the transfer of $24,460 in funds earmarked for the Friends to the general fund. The letter states, in part, “It appears at this time that we have resolved our cash flow problem for this fiscal year and may not need to take further action... We hope further transfers are not necessary.” “We believe the action was illegal,” said Stephen Woody, FOS vice-president. “Our position is, people buy specialty plates knowing their money is going to Friends or whatever institution they are supporting, and the state doesn’t have the power and authority to take those funds,” said Woody from his Asheville home. Rep. Marge Carpenter said the General Assembly’s Fiscal Research Division said the justification for taking the tag money came from the governor’s declaration of a fiscal emergency and the issuance of Executive Order 19, which gives Easley the authority to take funds. The legal question, however, according to Rep. Marge Carpenter (R-Waynesville), is whether funds earmarked for the FOS and others constitute “state revenue.” If they do not, they would be exempt from the governor’s emergency power. “Research division said our options were to contact the governor and request the money be returned or find someone to file a lawsuit,” Carpenter said. The governor’s office feels like it’s on solid legal footing. “I’m not a lawyer, but our position is the governor has the authority to take those funds,” Cari Boyce, a spokesperson for the Governor’s office said. “I would assume that whatever has been taken is not off limits,” said Sen. Dan Robinson (D-Cullowhee). “I truly regret the state having to take those funds. I know the Friends and the park need the money, but they’re having to take everything they can to balance the budget as required by the constitution,” said Robinson. According to Ivey, the FOS North Carolina tag program — which began late in 1999 — has provided $60,000 for the park’s experimental elk release, $30,000 for the Purchase Knob Learning Center in Haywood County, $10,000 for improvements at the Oconaluftee Visitor Center and $2,000 for a Fraser Fir repository at Purchase Knob. “The money is doing good things. As receipts from the tag program have grown we have been able to expand what we do in the park. All the money from this program goes to the park,” Ivey said. Woody said FOS has vigorously protested the taking of the funds and asked that they be restored. “But when we met with state officials, they intimated that the funds would not be restored,” he said. Tag buyers were surprised and angry to hear of the confiscation of funds. “I’m disappointed. I say that respectfully, knowing the dilemma the state is in, but we bought the tag, knowing the money was going to Friends of the Smokies. I already support the state as a taxpayer. Had I known they were going to take this money, I could have simply donated to the Friends,” said Waynesville resident Jim Anthony. Jeff Runken of Franklin is a friend of artist Michael Rogers who designed the plate. He bought one as soon as they came out, and he said he was angry the money was being taken by the state. “I just don’t understand how they can take money I gave to the Friends of the Smokies. It really makes me mad,” said Runken. Woody is urging citizens to continue to purchase the tag. “We are actively pursuing the restoration of these funds and the state has said it has no intentions of taking more. By showing this plate, citizens can show their support for Friends and their continued support of the Smokies,” he said.