In an update to a story we first told you about on 2 Wants to Know in July, the NC Rural Economic Development Center has denied their former director severance pay.
In July, Ben Briscoe told you about a loophole in the law that allows non-profits --- who get money from state grants-- to keep the interest they earned on those grants! If schools, cities, and counties earn interest on grants, they don't have the option to keep that interest. They have to reinvest it or give it back.
A state audit uncovered that the North Carolina Rural Economic Development Center had grants that accrued $20 million in interest. Auditors found the Rural Center didn't always track how many jobs their state grant programs created. The director, Billy Ray Hall, resigned in July. Today, our news partners at WRAL say the Rural Center's board voted to deny Hall his $242,000 severance package.
Last month, the Rural Center transferred most of its assets to the state's Commerce Department. Now, with about $7 million, board members tell WRAL they plan to move forward with a mission of coordinating business loans in rural communities and providing scholarships and leadership training.
Now, with about $7 million, board members tell WRAL they plan to move forward with a mission of coordinating business loans in rural communities and providing scholarships and leadership training.
WRAL/ WFMY News 2