[co-author: Stephanie Kozol]*
In a recent development, North Carolina Attorney General (AG) Josh Stein announced his intention to appeal a Wake County Superior Court decision regarding allocation of environmental grant funds from Smithfield Foods. The ruling, which favors redirecting these funds exclusively to public schools, has sparked a legal debate with significant implications for environmental initiatives and educational funding in the state.
In 2000, following a major hog waste spill, Smithfield Foods entered into an agreement with the state of North Carolina, which has now become the center of this dispute. Under this agreement, Smithfield committed to paying $50 million over 25 years for “environmental enhancement.” Since then, the company has been contributing approximately $2 million annually.
Wake County Superior Court Judge A. Graham Shirley II recently granted summary judgment to plaintiff Jonathan Burris, ruling that the funds should be used solely for environmental enhancements in public schools. The judge cited Article IX of the North Carolina Constitution, which mandates that unallocated state funds be directed toward maintaining public schools. This decision challenges Stein’s practice of using these funds for broader environmental grants.
In response to the ruling, Stein argues that this is the third attempt to challenge his office’s administration of these environmental grants, with previous cases decided in his favor by the North Carolina Supreme Court. The plaintiff, Jonathan Burris, a pastor and local taxpayer who filed suit on behalf of the Randolph County Board of Education, contends that the funds should be allocated to public schools. Burris’ argument is particularly relevant, considering a 2019 law that required the money to be deposited in the state treasury.
The legal dispute also involves a question of timing. While Smithfield Foods has been making these payments since 2000, the lawsuit focuses on funds received since 2019, when lawmakers passed regulation requiring the money go to the state treasury. Despite this change, Stein allegedly continued to use the funds for environmental grants, which prompted Burris’ legal challenge.
Stein has now filed a notice of appeal in Wake County Superior Court, indicating his intent to bring the case before a three-judge panel at the state appeals court. This move sets the stage for a continued legal battle over the proper allocation of these environmental funds.
Why It Matters
This case underscores the complex interplay between environmental protection initiatives and educational funding in North Carolina. The outcome of this appeal could have far-reaching consequences for how environmental grant money is allocated in the state, potentially shifting resources from broader environmental projects to specifically school-based environmental enhancements.
*Senior Government Relations Manager
