Raleigh, NC -- We keep digging on a 2 Wants to Know investigation. Two weeks ago, 2 Wants To Know revealed a loophole in our state's law. It allows non-profit organizations getting state grants to keep the interest earned on those grants. Everyone else on the local and state levels -- including governments and businesses -- have to give interest earned back.
The Rural Economic Development Center was one of those non-profit groups-- making interest off un-used state grant money. Along with the loophole, state auditors found the REDC wasn't always tracking how many jobs their state grant programs created. The next week, Governor McCrory asked the Office of State Budget and Management to freeze all Rural Center funds while the state investigates. But freezing those funds put projects already in the pipeline in jeopardy.
Now, the Governor said he'll release more than $700,000 of those frozen grants - not to the REDC - but to the projects themselves. That way, Yadkin County and 13 other rural communities across the state will still get those planned job creation grants. The grant recipients will report directly to the Commerce Department -- instead of the Rural Center.