A report out this afternoon from the U.S. Department of Education shows North Carolina saved or created 22,398 government jobs through the American Recovery and Reinvestment Act, Barb Barrett reports.

The state legislature has used nearly three-fourths of the $1.2 billion grant it received from the federal government to plug the state budget holes for this year’s and next year’s budgets. The rest has yet to be spent.

As a result, the state says it has saved or created 8,916 jobs mainstream education jobs for teachers, principals, counselors, transportation workers and custodians.

Another 1,461 jobs were created or saved in lower-income Title I schools, along with 1,670 jobs created or saved in special education.

Most of the jobs saved -- 10,343 – were in government services. Those included jobs in prison custody; food service; medical, education and administrative staff; probation and parole officers; and substance abuse counselors.

The N.C. Justice Center says that tax increases approved by the legislature this year are likely to prevent job losses in the private and public sectors.

The Center issued a release on a new report that contends that the popular notion that tax increases will lead to job losses is not true.

The report says that without the tax increases, deeper cuts would have been made in state services such as education.

"Those cuts certainly would have caused job losses in both the private and public sectors, while credible research concludes the revenue increases likely will not negatively impact the job market," reads the report.

The report says that North Carolina's tax increases are equal to a small fraction of the state's economy and do not put North Carolina out of line with taxes in other states. As a result, the report says, the tax increases should not put North Carolina at a competitive disadvantage with other states when it comes to jobs.

Finally, the report says that a comparable set of tax increases by North Carolina in 2001 did not have a negative impact on the state's economy.

The report concluded:

Taking a balanced approach to addressing the budget shortfall allowed the state to avoid major setbacks in public programs and avoid laying off tens of thousands of state workers, which would have had negative effects on the state economy.

Update: Well, it didn't take long for the other side to chime in. The folks at the Civitas Institute have posted a response to what they call a "bizarro-world 'analysis."

The Civitas post says the Justice Center report "does nothing to bolster its claim that higher taxes have no effect on job growth. Any basic Econ 101 theory will describe how job and economic growth is based largely upon the accumulation and investment of new capital and the proper incentive structure."

The post says that increasing taxes reduces the amount of capital available for invements and "destroys the incentives for entrepreneurs to engage in productive investment."

CHARLOTTE — The Democratic vice presidential nominee lobbed some colorful volleys at the Republican ticket at Halton Arena this morning.

Speaking before a crowd that grew to 1,500 by the time he took the stage, Joe Biden focused mostly on the economy, Peter St. Onge of the Charlotte Observer reports.

"There is not one fundamental economic issue, not one fundamental economic issue, on which John McCain has taken issue with George Bush," Biden said.

Biden criticized McCain for supporting policies that give tax benefits to companies that ship jobs overseas — an issue that resonates with N.C. audiences — and he knocked John McCain for not yet supporting a second economic stimulus plan targeting the middle class.

Barack Obama, he said, would emphasize growing the economy through the working class. Said Biden: "Ladies and gentlemen, it's all about jobs, it's all about jobs at the end of the day."

Biden, as he has frequently in recent stops, also criticized McCain for a negative campaign.

"Right now, our campaigns are trading a little paint," he said, offering a NASCAR reference that fell somewhat flat. "But what worries me most is that the McCain campaign is getting a little loose."

He added: "I don't recognize him anymore. I used to know him well."

The Republican Governors Association is targeting Beverly Perdue on jobs.

In a mailer sent to North Carolina voters, the national group argues that the Democratic gubernatorial candidate's "failed policies are killing jobs in North Carolina."

Inside, it argues that Perdue has failed to lower taxes, reduce pork barrel spending or crack down on illegal immigration.

It also repeats a claim that a 2001 bill made it easier for illegal immigrants to get driver's licenses.

As noted previously, that bill actually made it slightly harder.

The back page of the mailer argues that Republican Pat McCrory "successfully recruited dozens of new companies" and brought the NASCAR Hall of Fame to North Carolina, while the number of homicides in Charlotte decreased.

Pat McCrory called for Congress to pass President Bush's economic plan in 2003.

According to a press release issued by Republican Mayors and Local Officials on May 8 of that year, McCrory said Bush's jobs and economic growth plan would have a "healthy effect on local economies and tax revenues."

"What the President's tax cuts will do is enable entrepreneurs and local people to make the best decisions about creating jobs and making needed investments. Small businesses are the engine of economic growth for our cities and towns, and they need help. The President's plan provides that, with $2,042 in tax relief for the average small business owner just this year."

The press release is available on PR Newswire, a wire service for public relations groups.

A new ad from Democratic gubernatorial candidate Beverly Perdue says "McCrory backs Bush's economic plan all the way."

Full text of the press release after the jump.

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CONCORD — One thing North Carolina's two main gubernatorial candidates agree on: Economic development will be a top priority of the next governor.

Republican Pat McCrory and Democrat Beverly Perdue spoke to more than 230 people at the N.C. Economic Developers Association conference at the Concord Convention Center, Jim Morrill reports.

"As mayor and as governor, a major priority will be jobs, jobs, jobs," said McCrory, the mayor of Charlotte. "The number one goal of the governor is to sell the state."

McCrory outlined a 10-point plan for development, including new and traditional energy initiatives, a 50-year transportation plan and stopping what he called the "ridiculous internal competition" between regions.

He said one of his top priorities will be replacing the Yadkin River bridge on Interstate 85.

Perdue, the current lieutenant governor, said she would push for development in all 100 counties. She toputed her role in keeping the state's military bases open said North Carolina should be on the forefront of developing a "green" economy with wind and solar power.

And a one-time opponent oil drilling off the N.C. coast, she said, "Yes, there's a real role for off-shore drilling in the future."

The Republican Governors Association is running its second TV ad in North Carolina this election. Like the first, it criticizes Democrat Beverly Perdue and the "status quo" in Raleigh.

What the ad says: A narrator speaks while the ad shows a series of black-and-white images: a woman looking out a window, trees with no leaves, men with blank expressions, a Chinese flag. In the bottom right appears a red "status quo" button – a take-off on an ad campaign for office supplies.

Narrator: "North Carolina faces an economic crisis, and for 21 years Bev Perdue has simply pushed the status quo. Perdue presided over $6 billion in new taxes – voted to increase the gas and sales tax. Now North Carolinians have the largest-growing tax burden in the country – the nation's third-worst unemployment growth – 80,000 jobs lost to China. So what's status quo Bev's plan for the future?"

The ad ends with a quote from Perdue during a recent TV debate: "I would do exactly what's been done before."

The background: The ad raises two issues – taxes and jobs – and it argues Perdue will continue existing state policies.

TAXES: Perdue represented the New Bern area in the state legislature from 1987 until 2001. She has since served as lieutenant governor, a position where she presides over the N.C. Senate. She can vote only in the case of a tie, so her role in tax changes since 2001 has been only procedural.

The Republican Governors Association says the "$6 billion in new taxes" figure is the amount raised by new taxes imposed from 2001 through 2006. Almost half of that came from two temporary taxes that lawmakers and Gov. Mike Easley imposed because of a 2001 budget crisis: an extra half-cent sales tax and a new upper-income tax bracket. (In 2007, lawmakers eliminated the upper-income tax bracket and made permanent a quarter-cent increase in the sales tax.) The rest came from more than 60 other tax changes.

Easley and lawmakers have also cut taxes since 2001. In the 1990s, when Perdue was a legislator and a lead budget writer, lawmakers and Gov. Jim Hunt cut or eliminated some taxes.

The RGA cites at least three instances in which Perdue "voted to increase the gas and sales tax": a 1989 law that raised the gas tax about five cents a gallon to pay for road improvements; a 1991 law that raised the gas tax a half cent a gallon to pay for the cleanup of underground storage tanks; and a 1991 law that raised the statewide sales tax from 5 percent to 6 percent.

Perdue has also voted for tax cuts, including the elimination of the state sales tax on food in the 1990s.

The RGA says the claim about the "largest-growing tax burden in the country" is based on an April 12, 2007, article from The Tax Foundation in Washington, D.C. The article says "North Carolina's tax burden rank has seen the largest increase of any state since 2000," jumping from the 36th highest state-local tax burden in 2000 to the 19th highest.

The article, though, is based on outmoded methodology. According to the foundation's revised data, North Carolina's tax burden rank was 20th – not 36th – in 2000. It has since fluctuated between 17th and 22nd, and in 2008 it is again 20th.

A foundation spokesman has apologized for the confusion and an economist there says the newer methodology is more accurate.

JOBS: The phrase "the nation's third-worst unemployment growth" refers to a recent report that North Carolina's jobless rate rose from 5.9 percent in June to 6.6 percent in July. Only two other states, South Carolina and Mississippi, had larger gains during that one-month time period. Over a different time period – one year, for example – the ranking might be different.

The figure "80,000 jobs lost to China" has its origin in a July 30 report from the Economic Policy Institute in Washington, D.C. The left-leaning group says North Carolina lost 79,800 jobs to China between 2001 and 2007, more than all but seven other states.

In a 24-page report, the institute blames Chinese currency manipulation and the differences in Chinese and U.S. labor laws, among other reasons.

North Carolina Democrats, including Gov. Mike Easley, have repeatedly blamed federal trade policies for the job losses. Republicans have been more likely to blame state taxes, which they argue are too high.

THE QUOTE: The ad's final line, a Perdue quote, is from the Aug. 19 gubernatorial debate on WTVD in Durham. She was discussing how she would gather scientific advice on offshore oil drilling.

A fuller quote: "And I believe secondly that they must allow states to have the individual decision about what they're going to do in their state on drilling. I would do exactly what's been done before. I will listen to a team of engineers and scientists and ask them to tell me very quickly, to assess the new technology that's come since Governor Martin did the same thing in the late '80s."

Is it accurate? For the most part, no. Much of the ad either misstates or exaggerates Perdue's role, or takes her words out of context.

Perdue "presided" over tax increases in the sense that she held the gavel and helped record senators' votes, but her role was procedural. She did not propose the increases or vote on them.

Perdue did vote to increase the gas and sales taxes. She also voted to cut sales taxes.

The evidence that North Carolina's tax burden is the country's "largest-growing" is outmoded.

The ad's claims about jobs are accurate statements about North Carolina's economic health. There is no direct evidence to tie those losses to Perdue.

The quote about offshore oil drilling is taken out of context. To describe it as "Bev's plan for the future" is misleading.

– David Ingram

Beverly Perdue began the debate with a shoutout to Tom Friedman.

The New York Times columnist has written a new book, "Hot, Flat and Crowded," which argues that "green is the new red, white and blue." In other words, alternative energy such as wind and solar can help create jobs.

At a debate on WRAL tonight, the Democratic gubernatorial candidate cited Friedman's book briefly, saying that she wants to help create a "green economy" in North Carolina.

Republican candidate Pat McCrory took a different tack.

In his answer to the same question, he followed by saying that he supports offshore drilling in North Carolina since it would create jobs here as well.

A brief speech by Republican gubernatorial candidate Pat McCrory at the 2004 Republican national convention posted online today by the N.C. Democratic Party.

The two gubernatorial candidates have their themes down.

In their opening statements at a debate at WTVD in Durham tonight, Republican Pat McCrory and Democrat Beverly Perdue sketched out the major areas they hope to focus in in the campaign and at the debate.

McCrory, the mayor of Charlotte, focused on gangs, mental health care reform and corruption in state politics.

He also joked that his sister, Linda, almost didn't let him into her home because she'd seen a TV ad portraying him as "a danger to the middle class."

Perdue, the lieutenant governor, talked about improving education, creating new jobs and increasing access to health care.

She said she wanted a "new North Carolina" where "families worry less and dream more."