Heard on the Street Posted: Thursday, November 20th, 2008 Who’s on first?
The rumors are swirling faster than fall leaves. It’s hard to keep up with all we’re hearing but we’ll do our best to fill you in. Here are names we are hearing mentioned for various cabinet and high-ranking posts in the Perdue administration.
DOT
Last week we reported that State Senator Clark Jenkins was being favorably mentioned as a candidate for DOT Secretary. We are now told he doesn’t want the job, so the two frontrunners are Gene Conti, former Deputy at DOT and former chief at the Global TransPark, and Lanny Wilson, bigtime crony of Governor Easley from Wilmington. We hear that shadow governor Basnight is pushing Wilson.
Crime Control/public safety
Current Secretary Bryan Beatty wants to stay on, we hear, but we are also hearing that former State Senator Scott Thomas, currently DA in Craven County, is interested. Thomas had been mentioned as a possible choice for Eastern District U.S. Attorney but the rumor mill says Thomas would like to be in position to run for Attorney General should incumbent Roy Cooper decide to run against Richard Burr in the U.S. Senate. As Crime Control boss he could build statewide name recognition and be better positioned for a run. We also have to report that many political junkies don’t think Cooper will run, saying he could remain as AG as long as he wants and is still young enough to make a strong run for Governor in eight years.
Cultural Resources
We are getting conflicting reports on this one. First we hear the Perdue administration is considering folding this department into the Department of Commerce. It would no longer be a cabinet post. We have heard that Kay Myers, wife of Democratic fundraiser and former DOT board member Gordon Myers from Asheville, is under consideration.
Health and Human Services
We keep hearing that Dempsey Benton is being asked to stay on in this post. We also hear that Benton is telling folks he’s had enough and would like to leave.
Education
Word on the street is that Howard Lee, current chair of the State Board of Education, will remain in that post, as will J.B. Buxton, the Governor’s advisor on Education, who effectively runs education.
Commerce
Two names are heard most frequently here. The first is Crandall Bowles, wife of UNC President Erskine Bowles and former head of Springs Industries. The second is Tony Copeland, former Deputy in the department and exec with BTI. Copeland now works for Longistics in Raleigh.
DEHNR
Bill Ross, current Secretary; Robin Smith, current Assistant Secretary for Environment; and Richard Rogers are three names we hear for this post. We also picked up a suggestion that Jim Leutze, former chancellor of UNCW might be a consideration.
Department of Administration
Current Secretary Britt Cobb may be asked to stay on in his current post. He has been a calming force and has done well in a department that has seen problems with contracts and purchasing. We also hear that Representative Alma Adams from Greensboro is being considered.
Employment Security Commission
No word on this one, although it is suspected that current head Harry Payne might be convinced to stay on. Payne is given good marks for his management of this agency.
Office of State Personnel
We hear current legislator Linda Coleman is under consideration for this post. Some oppose the move because she has been an outstanding legislator, especially advocating issues for state employees.
Meek to step down for Dems
Jerry Meek, who has been head of the NC Democratic Party has announced he will not seek another term, opting for a move to private practice with the Poyner and Spruill law firm. While Meek was not Governor Easley’s first choice as Party Chair, most give him high marks for the job he has done.
Being mentioned as possible replacements for Meek are Representative Grier Martin from Raleigh and David Parker from Statesville. Martin is known to have statewide aspirations and flirted with the idea of running against Senator Elizabeth Dole. Parker is a longtime Democratic activist and former officer of the party.
Burying current government leaders
It happens with every change of administrations, but the Easley administration is quietly “burying” a large number of ranking appointed state officials. The process involves moving appointed officials from positions that are exempt from the State Personnel Act, people who can be hired or fired at will, into positions that are non-exempt, meaning they cannot be fired without just cause.
We also hear that the Easley administration is actively seeking to renew or grant new contracts with outside vendors, protecting those who are friendly to the Easley administration.
This is a ritual that prolongs the legacy of an administration well beyond its time in office. This year may set a record for such activities, effectively limiting the appointive and contracting power of the Perdue administration.
Table games on the table
One early action that might take place in the Perdue administration is the granting of table games for the Cherokee at their casino in Western Carolina. Currently all that can be offered those wanting to gamble are video games and the tribe has sought permission for table games for years. The Easley administration refused to grant the authority, but Perdue has publicly stated her support for the approval.
As the economy suffers, the Cherokee feel this move would offer more appeal to those wanting to play games of chance while also providing for new jobs in the region. They cite the fact that they are the largest economic engine west of I-77 in our state.
Look for the union label
The dust has settled on this month’s General Elections and analysts are coming forward with information to help us understand what happened. One obvious conclusion is that labor unions played a big role in the election of Democrats in our state, contributing as much as $4.3 million to candidates and the Democratic Party. It is debatable how much their cash affected the final outcomes, but their level of participation was at an all-time high. Now observers are wondering just what they want in return. Many are speculating they want easier rules regarding union organization and elections in this right-to-work state. These same polls say it isn’t likely to happen in North Carolina.
Here are some of the unions and key contributions they made to campaigns and parties (Note individual contributions are not listed):
National Association of Educators
Beverly Perdue $1.38 million (includes allowable TV ads and polling)
NC Democratic Party $275,000
Alliance for North Carolina $250,000
Service Employees International
NC Democratic Party $1.154 million
Alliance for North Carolina $250,000
Sidney Sandy $44,510 (Republican House candidate from Union County)
Chuck Stone $104,560 Former SEANC President and Senate candidate
Teamsters
NC Democratic House Caucus $15,000
NC Democratic Senate Caucus $30,000
NC Democratic Party $202,500
NC Association of Educators
NC Democratic Party $22,150
NC Democratic House Committee $23,000
NC Democratic Senate Committee $20,000
NC Republican House Committee $4,000
NC Republican Women’s Caucus $1,000
Communications Workers of America
NC Democratic Party $10,750
International Brotherhood of Electrical Workers
NC Democratic Party $30,500
United Food and Commercial Workers Union
NC Democratic Senate Committee $2,500
NC Democratic Party $101,000
The old adage is “follow the money.” Keep a close eye on what happens in the coming session of the legislature and in state government….then connect the dots.
Mackey misses celebration
We picked up a rumor that Democrat Nick Mackey, who defeated Representative Drew Saunders in the May primary, then won the seat in the predominantly Democratic district, was unable to attend his own victory celebration following the election because he was being served notice of a lawsuit against him for unpaid bills.
Budget help
Those wanting to find some surplus state money could do so by examining information from the NC Department of Revenue. For instance, a report on Sales Tax exemptions (on page 70) lists many organizations and individuals who escape paying state sales taxes. Elimination of them could easily add up to as much as a billion dollars, however getting them removed would involve fights with some of the more powerful lobbies in our state, which explains how they got there to begin with.
New taxes will be pushed
Senate Appropriations chair Linda Garrou confounded and confused some with her recent statements that North Carolina’s financial picture was essentially stable and the state would be alright. Does she know something that everyone else doesn’t? Was she trying to calm jittery fears about state government? Was she talking about this fiscal year’s budget, next year’s or both? Folks who know the situation well are plenty worried. While the state has a Rainy Day Fund of approximately $800 million and has delayed much of the spending in the Repairs and Renovations Fund, many question whether lawmakers are willing to draw down these accounts too much in order to respond to emergency conditions.
One thing you can expect in next year’s legislative session is a strong push for more sin taxes. We are told that efforts for increased taxes on beer and wine as well as cigarettes will be met with some favor in a Democratically controlled legislature. We hear that no less than Senate President Pro Tem Basnight is said to favor increased cigarette taxes.
Hall of Fame for Graham
North Carolina’s longtime Commissioner of Agriculture, Jim Graham, was posthumously inducted into the North Carolina Agriculture Hall of Fame in ceremonies today. Current Ag Commissioner Steve Troxler presided over the installation. The larger-than-life Graham lives on in the memories of a large number of North Carolinians.
School start fight
Another big fight to expect in next year’s legislative session will come from travel and tourism and other businesses who want more controls exercised over the starting date for public schools. You might remember there was a major campaign by these groups to limit starting dates several years ago, efforts that were successful. But then school systems were allowed to seek and get exemptions from the later August dates. So many have done so that the legislation is considered meaningless and the campaign will be waged to make sure a late August start of school date is upheld. Groups say that when school systems start classes as early as August 11th it severely affects travel and tourism, one of our state’s largest economic sectors.
Leutze for Soles
As mentioned earlier we have heard UNCW Chancellor Jim Leutze’s name mentioned as a possible candidate for the Secretary of DENR. But we also hear his name mentioned as a possible replacement for Senator R. C. Soles when the Columbus County Senator is indicted and forced to resign his office.
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