Heard on the Street Posted: Thursday, November 13th, 2008 Pressure on Governor Bev
This reporter cannot remember an administration that dealt with higher expectations and pressures than Governor-elect Beverly Perdue is facing as she prepares to take office. For starters, she will be forced to deal with the biggest budget deficit this state has ever seen. Elaine Mejia of the NC Justice Center predicted this week the shortfall may total $3 billion. That’s a lot to make up.
Additional pressure is coming from all sides. Some of it Perdue created for herself when she boldly stated on the campaign trail that she will run the most ethical administration ever and, in response to the “status quo Bev” ads that the Republican Governor’s Association ran during the campaign, Perdue said she would indeed be an agent for change. What does that change look like? Change from what to what? The biggest evidence of what we can expect from our new governor might well come when we learn who she picks for cabinet secretaries. The selections of heads for DOT, Health and Human Services, her deputies for Education and Commerce will be clear indications of whether we get status quo or change. The pressure is on.
Beyond the Secretary level, the selection of scores of deputies and other appointments will also tell us whether or not there will indeed be a new direction. Will we see many of the Easley appointees out on the street? Will there be new faces in high ranking positions in state government? All this will be revealed in the coming weeks.
Then there is Perdue’s perceived problem with Senate leadership. Will she act independently or will the Basnight-Rand power structure have sway over the Governor’s office? We saw evidence of a strong-willed Perdue on the campaign trail but can she and will she stand up to and forcefully project her agenda with the legislature?
Like we say, the pressure is on. Expectations are high. The naming of her transition team didn’t give folks much confidence that change was in the works. Zach Ambrose, her former chief of staff and campaign manager, will be her Chief of Staff when she assumes office. Don Hobart, who currently serves as the Lt. Governor’s Chief of Staff, is also on the team, as is Norris Tolson, currently head of the NC Biotechnology Center. Tolson knows his way around Raleigh, having served in the legislature, as Secretary of DOT and Revenue Secretary. He brings great credibility to Perdue’s team, however tells people he will not be part of the new administration. Ambrose formerly worked raising money for Marc Basnight’s Senate campaign fund. Hobart previously worked for Easley. This team has no women, no minorities, and no outsiders.
We hear that teams have been formed to consider appointments to every department of state government and that these teams do include outsiders, minorities, women, and democratic political insiders. Names for the transition teams have not been released so that they can conduct their work without being besieged by people seeking jobs. We hear that list is already long and getting longer in this lousy economy.
By the way, Perdue has announced that she is inviting comments from the public into a suggestion box. If you’ve got ideas about nominations, suggestions about how to run the government, or any thoughts about state government shoot them to Bev at the following address online:
http://www.bevperdue.com/free_details.asp?id=76
Wouldn’t you just love to read these suggestions?
The only name we hear for a cabinet post is Senator Clark Jenkins. The Tarboro Senator has served on the DOT board, has headed the Senate committee on Transportation, and has been a vocal critic of the way the department has been run. Jenkins would be a maverick at DOT and would surely shake things up in this department that often appears arrogant and incompetent. He is highly independent; however he does have very close connections with Senate leadership. Maybe the right man at the right time.
How about an IG?
Governor-elect Perdue announced she would name an Ethics officer to ensure that state employees conduct themselves in both legal and ethical ways. Good start. Here’s another. Why not appoint a statewide Inspector General? Yes, we have an independent State Auditor, but the office has been considered too political and has a broad range of responsibilities. The IG would ensure that state money is spent wisely, legally, and efficiently and could oversee state contracts, state expenditures, and use of state resources. Some states already have such a position. In a time when so much has been revealed about misuse of state funds, an independent Inspector General could be a force in making sure employees and appointees operate in the public interest. What do you think?
Who will run?
The November 4th elections are barely over and already there’s talk about who will be running in future campaigns. The biggest buzz concerns speculation that Attorney General Roy Cooper will run against Senator Richard Burr when the first-term Senator comes up for re-election in 2010. Cooper garnered more votes than any other statewide candidate and would be an attractive candidate. Democrats would love to hold both U.S. Senate seats again, something that hasn’t been the case since 1972, when B. Everett Jordan and Senator Sam Ervin were our two Senators. Insiders wonder whether the cautious Cooper can be persuaded. He tells everyone he loves his job, reminiscent of former Ag Commissioner Jim Graham, and only casually considered a run for governor. Prevailing sentiment appears to be that Cooper won’t risk the race, even though he could do so without having to leave his A.G. post in 2010.
People in the Queen City are speculating as to where Pat McCrory might land next. The popular Charlotte Mayor, who lost his first election campaign, ran a great race for Governor and many believe he might have won if Democrats had not been the beneficiary of the “Obama surge.” Tom Jensen of Public Policy Polling is speculating that McCrory might next run again Congresswoman Sue Myrick, stating that seeking an eighth term as Mayor might be problematic because Democrats, buoyed by their success in the recently concluded election, are sure to put up stronger opposition than has been the case in recent elections.
Names we hear prominently mentioned to run for Charlotte Mayor include Senator Malcolm Graham and Anthony Foxx, incumbent City Councilman who already has a web site proclaiming his candidacy for Mayor. Democrats are worried about two African Americans duking it out for this post and are privately encouraging Graham to seek another race, like U.S. Senate against incumbent Richard Burr.
While on the subject of who might run for posts we hear rumors that former Republican gubernatorial candidate Fred Smith might seek the post of chair of the state Republican Party. GOP activists across the state were embarrassed and angry at their poor showing this year and believe they need new leadership to compete. Smith has been a successful businessman, State Senator, and might boost the profile of the party.
Charlotte votes for another Down East governor
More and more leaders in Charlotte are moaning about McCrory’s loss to Perdue in the governor’s election. Mecklenburg County supported Perdue and Obama, leaving many to wonder why ”The Great State of Mecklenburg” has long believed they don’t get a fair shake of state funding, appointments, or recognition as North Carolina’s largest metro area. They have privately and publicly complained about governors from the east who dominate the elections and tend to favor the region east of I-95. But then they support another Down East Governor? Governor-elect Perdue spoke to the Charlotte Chamber of Commerce shortly after the election, promising she would look after them when she was governor. Same song, second or third or fourth verse.
House on TV?
The North Carolina House has pondered how to make their floor sessions and committee meetings more open to the public. Most recently they have considered putting them on the web, but the proposal is estimated to cost $1.3 million. Don’t expect that to take place in a year in which there will be few, if any, expansion budget items. The 800 pound gorilla in this session will be the huge budget deficit.
Moore sounds off on Wachovia
State Treasurer Richard Moore has been largely absent from the political arena since being defeated by Beverly Perdue for the Democratic nomination for governor. In the past week that has changed. Moore has hired former Lt. Governor Dennis Wicker to represent the pension funds he oversees in a class action lawsuit against Freddie Mac and Fannie Mae. The abuses of these two quasi-government agencies are widely reported and many agree a lawsuit might be warranted. Moore ran afoul of Attorney General Roy Cooper, however, by hiring private attorneys rather than using the AG’s office. While the two squabble over who has the authority to hire lawyers, the class action suit continues.
Days later Moore also complained about the Wells Fargo deal with Wachovia Bank, saying that he plans to vote the State’s shares against the buyout. Moore contends shareholders aren’t getting a fair shake. First off, the deal with Wells Fargo was announced the same day the feds announced they would offer money to shore up ailing banks. Moore contends this fed support could have saved Wachovia as an independent bank. Further, he contends that a special provision in the deal that guarantees Wells Fargo 40 percent of the preferred stock should be overturned by the courts because it precludes the possibility that shareholders could hold a meaningful vote.
What’s Moore going to do? We hear he will land with a big New York investment bank after his term is over. Friends tell us he is highly disillusioned with politics and isn’t likely to run again. Many lament this possibility saying they believe Moore was a good Treasurer in his two terms and, despite his opposition from SEANC and some negative press, was a good public servant.
Beacon may be dim
The newly installed state payroll system has been a focus of controversy for many months, with employees claiming they aren’t being paid properly or promptly. Now we hear that BEACON may also be underpaying the overtime payments of part-time employees. Look for news stories on this.
Tilton departs ElectriCities
For some weeks we have heard rumors that Jesse Tilton, head of ElectriCities was leaving. It was confirmed this week that Jesse’s resignation was effective immediately. Replacing Tilton as interim CEO will be Art Hubert, Chief Operating Officer of ElectriCities, who has been with the organization since 1978. A search will be conducted for a new CEO of this organization of municipalities with electric utilities.
At the same time it was announced that Representative Drew Saunders, Democrat from Mecklenburg County, has been appointed to be chief lobbyist for the organization. Saunders lost his primary race to retain his legislative post but was considered by many to be a highly effective lawmaker. The new position poses some problems, however. According to “cooling off” laws he cannot legally lobby until six months after he leaves office, a period many feel is too short. His October 31 resignation means that he can legally lobby for the group on May 1. ");
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