Heard on the Street Posted: Thursday, June 26th, 2008 Budget negotiations
We hear the conference committee charged with working out the differences between the House and Senate budgets is moving slowly. We know they won’t get it done by July 1, the start of the new fiscal year and we hear the two aren’t making much progress. Differences exist over capital spending, tax relief (earned income tax relief vs. gift tax relief), and lots of really minor stuff. Look for a completed budget by July 10th. Not to worry. They already passed a budget for this year; what they are doing now is making modifications to it.
The House modified the long trucks bill so that DOT, not legislators, will determine which roads the 53 foot trucks are not allowed to use. That removed a major obstacle in the minds of the Highway Patrol, DOT, and some safety groups. The modified bill will pass the House and the Senate will go along with the changes.
One piece of legislation that will die is the repeal of the land transfer tax. At the urging of Realtors and Home Builders, the Senate repealed the authority of cities to put the matter to a vote of the people. The House isn’t so inclined, we hear. Look for this bill to be assigned to the House Rules Committee where it will quietly die.
One item of growing concern is the amount of non-voted debt lawmakers are amassing. Certificates of Participation (COPS) are a form of financing where elected officials can borrow money without providing the “full faith and credit” of the government to underwrite the debt. This type financing usually has higher interest charges due to some increased risk (although our state isn’t about to let public debt go into default). Local governments had this option for many years but the state had not used it until the prison crisis of the late 1980’s-early ‘90’s. They started using COPS to build prisons and the practice has increased exponentially. Many are growing concerned of the circumvention of our state constitution.
More discussion on the budget in this week’s NC SPIN. Tune in.
A coup in the works?
Following attacks by Republicans and the media, some moderate Senate Democrats are murmuring about a coup to put new leadership in place in the 2009 session. It isn’t the first time we’ve heard these rumors but it is the first time in several years. Moderate members are chafed at Majority Leader Rand and President Pro Tem Basnight for lack of openness in budget preparation and debate. Will things change next year? Don’t bet on it unless the margin between Dems and Republicans gets really close. The Senate has a very collegial atmosphere, with members of both parties acting more like members of a club than two different political parties. Basnight will open the purse to help Dems get elected and the beat will go on. Basnight-Rand may lead until death doth them part.
But the fact remains that our State Senate has ventured far from doing the public’s business in public and the grumblers are growing bolder. The Charlotte Observer ran a great editorial this week suggesting that our Senate try Democracy for a change.
Davis wins runoff
Perhaps the biggest surprise to most observers was the defeat of Greenville’s Kathy Taft in Tuesday’s runoff election with Snow Hill Mayor Don Davis. Most had thought the former wife of the former Senator had the clout, the money, and the odds to win the runoff to name a Democrat to replace Goldsboro’s John Carr. Following the vote some speculated that African Americans made the difference for Davis, who is an African American. Closer examination revealed that the race was really won by white voters in Greene and Wayne Counties, who obviously didn’t want to see the seat being held by a Pitt County candidate.
Davis’ victory started speculation that Wayne Republican Representative Louis Pate might now have a better chance of winning the seat. This could be interesting to watch come election night.
For more discussion on runoff elections see My Spin, $55 per Vote is Absurd.
McCrory plays?
Who knew Pat McCrory, GOP candidate for Governor, was also a drummer? When Americans for Prosperity gathered about 1,000 Wednesday for their “Take Back the State” event McCrory probably stole the show when he sat down at the drum set and started hammering out “We Will Rock You.” Dallas Woodhouse, head of NC’s Americans for Prosperity, tried to recreate his singing role from Broughton High School’s Carolina Spirit, providing vocal accompaniment to the Charlotte Mayor. All agreed it was weak. But there was plenty of free ‘cue and Bob Dole helped draw a crowd. When McCrory’s drum solo was the highlight of the event, it should tell you something.
North Carolina in play?
We hear that as many as 150 Obama field operatives are due to hit the ground next week to help get out the vote in November for the Democratic candidate. They are volunteers, we are told. Still, supporting this many people will cost the campaign some big dollars. Is North Carolina really in play? Does Obama stand a chance of winning here? Does North Carolina really matter in the strategy to capture the White House? Insiders are beginning to question just how accurate polling data might be. The unknown quantity in this election will be how well Obama can bring out the vote. He demonstrated in the primaries that he could excite young and African American voters. If the voting percentage of African Americans reaches 20 percent or higher, this state could possibly elect a Democrat for the first time since Jimmy Carter.
Odds ‘n ends on the campaign
Everyone agrees Lt. Governor Bev Perdue had a bad showing at Atlantic Beach last weekend at the Bar Association debates. No worry. This one didn’t count. As one observer noted, this was “Spring Training” for the election season that officially starts after Labor Day. Fortunately, only political wonks really paid much attention to the content but the major league schedule starts in about 60 days and this showed her team where she needs work to compete in the bigs.
Kay Hagan showed she doesn’t mind mixing it up and isn’t intimidated by Senator Elizabeth Dole, attacking the Senator for doing little in Washington to make things better in North Carolina. The Senator got irritated by the attacks and struck back at Hagan for raising taxes and increasing the size of government in North Carolina. What looked like a cakewalk for Dole now looks like it could be a fun race.
For more comments on the debates and races catch this week’s NC SPIN.
Grand Jury indictments
We hear the Grand Jury will be issuing indictments in the Randy Parton case by the third week in July. No word on who or how many will be indicted.
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