Wednesday, October 16, 2024

Fact check: NHC commissioners talk endowment, schools and infrastructure at forum | Port City Daily

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New Hanover County commissioner candidates raise their hands in support for a school bond referendum at CFCC on Oct. 2. (Port City Daily/Shea Carver)

NEW HANOVER COUNTY — Some of New Hanover County’s potential future leadership took the stage at Cape Fear Community College on Oct. 2 to answer questions from a media consortium and the audience on various issues. Port City Daily is taking a look back to fact-check some of what the candidates said.

READ MORE: Fact check: NHCS candidate forum gets heated over Covid-19, student accountability

Four New Hanover County commissioner candidates participated in the forum with Port City Daily, WHQR and WECT at CFCC’s Union Station Auditorium. It was open to the public and livestreamed, with topics spanning the New Hanover Community Endowment, development and schools.

Democratic Party candidates included incumbent Jonathan Barfield, school board member Stephanie Walker, and tech business leader and former teacher Cassidy Santaguida. Only one Republican candidate showed — John Hinnant, a residential and commercial real estate broker. 

Republican incumbent Dane Scalise told the group he could not make it a few days before the forum. Commissioner chair Bill Rivenbark, though he confirmed his appearance, gave no notice he changed his mind on attending.

To start off the night, each candidate was asked if they would commit to transparency from the New Hanover Community Endowment and all candidates said they would do so.

“It’s important that we have people on the board who know how to do this work, can operate the endowment with transparency, with understanding of what success looks like and how we’re going to get there, and I think those folks need to be representative of the community that they exist in,” Santaguida said.

The candidates were also asked to raise their hands for two questions: if they supported a bond for New Hanover County Schools capital projects and if they supported tax increases for infrastructure projects. 

All candidates indicated their support for the school bond, but were less clear on raising taxes. Later in the evening, they were asked to further explain their reasoning on increasing taxes; two candidates said they were not in support at this time, while two said they would consider it when it is the responsible thing to do.

Hinnant was one candidate not in favor. 

“I’m not for raising taxes at all,” he said. “Our infrastructure, the county doesn’t pay for roads, doesn’t build roads, doesn’t maintain roads in the unincorporated area. Schools are something I’ve already raised my hand on for a bond referendum. I believe the endowment should certainly step in, in that case.” 

Barfield said he saw no need to raise taxes because of the availability of the county’s $300-million revenue stabilization fund, created with money from the sale of New Hanover Regional Medical Center to Novant Health.  

Santaguida said the the county should wade into a tax increase “carefully and not just jump into it thinking it’s the only way” to pay for things like infrastructure, but noted the county needed to evaluate water and sewer needs, support schools and promote more transportation options. 

For Walker, she said the county could work with the state and endowment more for needs and she would need to see a proposal for any tax increase before supporting it.

“The case of the matter is, things need to be paid for — how do you do that?” she said.

Throughout the night, candidates fielded several questions submitted by audience members or followers of the three news outlets. They were also given two questions written by reporters; journalists included Brenna Flanagan of Port City Daily, Ava Brendgord of WECT and Kelly Konoyer of WHQR. WECT anchor Jon Evans moderated the event.

PCD compiled a fact check on some of the items discussed at the forum.

JONATHAN BARFIELD

Commissioner Jonathan Barfield speaking at the forum. (Port City Daily/Shea Carver)

On the New Hanover Community Endowment

Claim: “Three commissioners have sat together and made a decision on who they were going to appoint without any transparency whatsoever, and that’s, in my opinion, why we’ve gotten into the place where we are now with the staff resigning — the CEO leaving the organization as well — because of the inner turmoil.”

True or False: True. Barfield and Zapple are often in the minority when it comes to endowment appointments. He’s right that staff and a CEO have left the organization. 

Most notably demonstrating the controversy the endowment has faced, former New Hanover County commissioners Pat Kusek and Woody White were appointed to the board in 2023, despite the board chair asking them to consider reappointing current members Hannah Dawson Gage and Virginia Adams. The action was criticized for removing two women, one of them among the few voices of color on the board, in favor of two white Republicans. 

At the time, Barfield said this: “My question to commissioners is: What message are we sending to New Hanover County as a whole when we remove any diversity of our appointments at all?”

Former CEO William Buster abruptly resigned in February, and his departure was followed by board member Patricia Kusek in March, board member Michele Holbrook in May, Executive Vice President of Programs and Operations Lakesha McDay and Communications Director Kevin Maurer, both in September.

Little information was provided on any of the resignations. 

Most recently, the commissioners voted in former Wrightsville Beach mayor Bill Blair  3-2, with Barfield suggesting Carl Brown, a retired vice president from Cape Fear Community College and Zapple nominating Sheree Darien, a board member of the Harrelson Center. However, there was little discussion about why the commissioners voted on Blair. 

On the hospital sale 

Claim: “The former lease that we had with New Hanover did not allow them to expand beyond the borders of our county. They couldn’t borrow money and build outside of our county, and they were concerned about another hospital coming in and taking the low-hanging fruit, so to speak, where they may be doing knee surgeries or back surgeries and taking some of the profit margins from the local hospital here.”

True or False: True. The state does not allow municipalities to leverage tax dollars, bonds or notes on facilities located outside the municipality boundaries. The need to expand capital and ensure long-term viability were the stated reasons New Hanover Regional Medical Center, a county-owned hospital, was sold to Novant Health in 2021 for $1.5 billion, of which $1.25 was put into the New Hanover Community Endowment.  

Barfield, as the only sitting commissioner that voted in favor of the sale, was asked if he still agreed with his decision; he said he did, though he recognized the matter is still controversial.

“I stand by the decision that I made with information that I had at that time … the endowment, with the $1.3 billion set aside, can do tremendous things for our community, if invested properly, if the right attention is paid.”

Opening in 1967, NHRMC grew into the nation’s third-largest county-owned hospital and the largest to not require taxpayer subsidies. Unlike many public hospitals, NHRMC was finishing years with surplus funds; it collected $110 million in the fiscal year ending in September 2019. The facility’s prices were also shown to be 13 percent lower than UNC Health’s, 15 percent lower than Novant Health’s and 32 percent lower than Atrium Health’s.

Because of this, many residents didn’t see the need for the sale to one of the nation’s largest healthcare systems and worried the quality of care would decrease.

Since Novant took over, the facility’s track record, on which the effects of the Covid-19 pandemic did take a toll, is proof the detractors use to say they’re right. Negative experiences at Novant NHRMC abound on social media, with full pages dedicated to it, and the facility was at risk of losing its Medicaid/Medicare license in 2022. A woman’s death, after waiting hours to be checked on, at the facility prompted a federal investigation; the report showed the facility was insufficiently, sometimes dangerously, understaffed.

However, the hospital has expanded to, in the words of Barfield, serve more members of the community in a better way. Novant is opening a facility in Scotts Hill and has opened two Michael Jordan family clinics.

On raising taxes 

Claim: “We’re bringing in roughly $12 to $15 million a year interest on [the revenue stabilization fund], but reinvesting those dollars into things to keep our tax rate low. Right now, there’s nothing that we need to raise taxes for. We have an abundance of resources sitting right there.”

True or False: True. The county can use its revenue stabilization fund to cover general fund deficits. The county’s fund was created with $300 million from the 2021 sale of New Hanover Regional Medical Center.

All candidates were asked what budgetary items they would consider raising taxes for and Barfield said he saw no reason to do so with the revenue stabilization fund. 

Barfield proposed using $7 million from the RSF for the current FY25 budget. The county — with money tight in the last year before property revaluations and faced with an increased amount of school needs — was faced with budget cuts to reach neutral. The $7 million in interest would have covered the deficit, but Barfield couldn’t get enough commissioner support to make the move. 

JOHN HINNANT 

John Hinnant speaking at the forum. (Port City Daily/Shea Carver)

On if he supports a development moratorium in light of recent flood events 

Claim: “No. I would support increased standards on stormwater ponds. Presently in the City of Wilmington, a new subdivision is only required to build 25-year stormwater ponds. I definitely support doubling that.”

True or False: True. City of Wilmington requires that new development, redevelopment, and expansion maintain the predevelopment hydrologic conditions in their post-development state for the two-year, 10-year, and 25-year design storms. The county’s ordinance also requires accommodation of up to 25-year storms.

Any changes made to stormwater requirements will need to remain in line with state and federal requirements. 

On why constituents should vote for him

Claim: “I’ve been in economic development, I’ve created jobs.”

True or False: True. 

Hinnant owned and operated the now-closed Underground Sandwich Shoppe in downtown Wilmington and served in multiple leadership roles with the Downtown Business Alliance and Wilmington Downtown, Inc.

According to Hinnant, he assisted more than 50 companies and over 500 jobs located downtown during his tenure as president of WDI. 

On the performance of the school board

Claim: “I don’t know that we are placing enough resources at our underperforming schools, and I feel like a priority of resources should be directed to those underperforming schools, either through TAs or more supplements.” 

True or False: This needs context, though Hinnant’s reasoning is in line with the typical practice of providing more resources to students with higher needs. 

The state reviews test scores and other metrics annually, and schools that have earned a D or F, without exceeding growth expectations, are considered low-performing. This year NHCS had six low-performing schools; these schools have the highest concentrations of students of color and from families of a lower socioeconomic status.

NHCS does receive extra funding for its schools with high percentages of students from low-income families through the federal Title I. NHCS has begun a turnaround task force to address ways to improve learning at its low-performing schools. 

NHCS has leveraged funds from the New Hanover Community Endowment, which is funding a three-year pilot of the Full-Service Community School model at Rachel Freeman. The endowment has also provided a grant to cover literacy coaches at each school.

As far as county commissioners, they stepped up their funding this year, but many in the district have claimed the state, which makes up the bulk of school districts’ funding, needs to step up its allocations. 

Hinnant did not indicate whether he would support more funding for NHCS, for low-performing schools or otherwise.

CASSIDY SANTAGUIDA

Cassidy Santaguida speaks at the forum. (Port City Daily/Shea Carver)

On improving quality of life 

Claim: “I think another thing that’s really important in terms of quality of life is understanding that, as we grow, we need a robust public transportation system in the region to help us get out of cars. Now the transportation system needs to be something people who need to ride the bus and choice riders, people who want to ride the bus to various amenities throughout the county, like the beaches, like entertainment venues, etc.” 

True or False: It is true that public transportation can improve a community’s quality of life through greater accessibility to employment and services, environmental benefits, and reduced traffic congestion.

It could also improve the health of riders. A study of data collected before and after completion Charlotte’s Blue Line found that persons who used the line for commuting reduced their body mass index and their odds of becoming obese over time by 81%.

Santaguida’s claim that public transportation should accommodate those who rely on it and those who choose it would allow more people to reap the benefits of public transportation. So far though, most people still have to rely on cars to get around the county, with little movement toward a different status quo. 

Wave, Wilmington’s public bus system, has adopted a new short-range plan to increase the system’s frequency and reliability, hopefully attracting more riders. Though the public transportation authority needed an infusion of $750,000 this year to remain in the green.

The county commissioners put a quarter-cent sales tax referendum on the 2022 ballot, but it failed. If it had passed, it would have increased the sales tax from 7% to 7.25% — or an extra quarter for every $100 spent — but would not have impacted taxes on groceries, gas, or pharmaceutical medicines. The tax would have brought in $140 million over 10 years to fund bike and ped needs, improve safety and connectivity in beach towns and throughout Wilmington. It also would have added core trails in the northern and southern portions of the county and improved crosswalks. 

On why she’s running 

Claim: “We have grown tremendously over the last few years, but we haven’t always scaled effectively. As a result, we’re looking at housing costs and increased burden on traffic, infrastructure, in schools, and we’re watching some green space vanish.”

True or False: True. The county’s population has increased nearly 10,000 since 2018, and that growth has come with increased housing costs and burdens on traffic, infrastructure, schools and green space. 

Over the same time period, the median home sale price has doubled. In 2018, it was around $250,000; the median home price for the last several months was over $500,000. The median gross rent from 2018 to 2022 was $1,249, while it now sits at  $1,329.

A recent TRIP report found 19% of New Hanover County roadways are in poor condition, with 27% being in mediocre condition. Drivers are losing over $600 annually due to lost time and fuel from traffic congestion and over $600 in additional vehicle operating costs due to driving on rough roads. 

As far as other infrastructure, there is only around 25 years of space at the county’s landfill. New Hanover County Schools has several facilities considered overcrowded as well. 

On the county’s homelessness response 

Claim: “I think we are seeing folks in the county experiencing homelessness that we typically wouldn’t think of, particularly children and seniors.”

True or False: True. According to 2023 data, the number of households with children in emergency or transitional housing is 27, while the number of unsheltered households is eight. People ages 55 to 64 did have the highest number in emergency shelter, but people over age 64 were the second lowest behind young adults. People ages 55 to 64 had the third-highest unsheltered population, but people over age 64 had the lowest. 

Here’s more of what Santaguida had to say on the topic: “I think it’s going to be to make sure that we have enough emergency shelter beds available for the folks that need that. It’s incredibly heartbreaking to getting turned away from emergency shelters, and I think we also need to end permanent supportive housing options will allow folks to move out of that emergency shelter situation into long-term, more permanent housing that allows them to build out the stability that they need to continue to move up that housing spectrum.”

New Hanover County’s current homelessness inventory shows an inclination toward short-term beds, with 132 and another 75 from the Salvation Army’s incoming new campus. Even with Salvation Army’s addition, the area will be short 113 shelter beds to house the unsheltered each night.

The county just approved a joint strategy with the City of Wilmington, which prioritizes permanent supportive housing units, rapid rehousing options, day centers and improvements to the coordinated entry/HMIS system. Santaguida’s views largely coincide with the joint approach.

STEPHANIE WALKER 

Stephanie Walker speaking at the forum. (Port City Daily/Shea Carver)

On defining smart development 

Claim: “I look at this development question as besides the same point, we have an issue with affordability, you have an issue with inventory. A recent study talked about how we were the number one metro area for new units. It has not brought the prices down.”

True or False: Somewhat true. 

New Hanover County is experiencing a growing lack of affordability and a lack of affordable housing units. 

Walker is correct in her new unit assertion. Construction Coverage, a website that provides construction software and insurance reviews, found the Wilmington metro area authorized 42.5 new housing units per 1,000 existing homes in 2023, the most of any midsize metro in the United States.

Though prices remain out of reach for some of the county’s workforce, rents did drop more than 10% between September 2022 and March 2024, according to reporting from WHQR. While it is not proven that the new units brought prices down, the two metrics are correlated.

On responding to the capital needs of NHCS

Claim: “I speak a lot about the capital improvements being on the school board for four years, and especially coming up to this discussion on a bond and being a New Hanover graduate. It’s a mess, it was a mess when I went there, and it is unsafe.”

True or False: True, New Hanover High School, a century-old school, is undergoing structural repairs that temporarily displaced students and has a laundry list of work needed.

However, the school is functioning and code enforcement officers have not deemed the building “unsafe” for occupation.

NHHS is undergoing repair to its southside foundation, displacing some students to temporary trailers, but the school is largely functioning. Although, it does have a laundry list of needs, many of which have been deferred by past leadership. After the commissioners did not provide new capital funding this year, instead diverting more funding to operations, the commissioners in August agreed to a $300,000 study to determine what work the facility needs. 

Board members, including Walker, had discussed putting a bond on the 2024 ballot to cover NHHS needs and other projects, but it failed to gain traction in time for the election. At the forum, Walker indicated she would support a school bond referendum as county commissioners. 

On where she prioritizes school funding in county budget 

Claim: “I was one of the school board members, myself and another, that voted to ask for everything because our schools are underfunded.”

True or False: True. 

In May, Walker voted against requesting $10.1 million from county commissioners to balance the NHCS budget alongside Pat Bradford and Hugh McManus. Bradford thought the ask too high, while Walker and McManus supported asking commissioners to cover the district’s entire $20-million deficit.

At the time, Walker said: “It’s our job as a school board to ask for what we need.” 

As a result of several factors — expiring Covid-19 relief dollars, declining enrollment, state-mandated pay and benefit increases, lack of a fund balance cushion — NHCS found itself having to cut 279 positions ahead of this year’s budget approval.

County commissioners did provide more operational funding ($9.5 million) to save some positions, while the remaining were culled due to attrition.


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