Heard on the Street Posted: Thursday, January 8th, 2009 Perdue’s team named
Governor Bev Perdue completed the naming of her leadership team this week. The team contains the highest number of minorities ever appointed to a cabinet and while the appointments include a predominance of people with state government experience, there is general consensus that in key posts she has picked highly competent people. Most analysts give the new Governor high marks on her choices.
Some are making a big deal about how much money the appointees have contributed to Perdue’s campaigns. Initial investigation indicates this hasn’t been an overwhelming factor. One pundit sagely said you would want to have people who are generally supportive of the Governor in key leadership roles. True. The public wants to know that these appointments were made because the people were basically qualified, not just because they were donors or fund raisers.
The devil, they say, is in the details. We will learn more about Perdue’s administration as we learn the names of people in second tier positions. Some have already been named, but these appointments will show just how Perdue is treating supporters, party faithful, etc.
Now that the team is on the field it will be interesting to learn how they play together. Will Cabinet level appointees have full access to the Governor? How many “gatekeepers,” for instance, will they have to go through to get to her? Governor Hunt’s cabinet met every Monday morning at 7 a.m. while Governor Easley’s cabinet meetings were more sporadic. How frequently will the Perdue cabinet meet? What will they discuss?
Here’s some of the feedback we are hearing on appointments:
Health and Human Services
The most controversial of Perdue’s picks came in the naming of Lanier Cansler as Secretary of Health and Human Services. He is also one of the best choices Perdue has made. No one questions Cansler’s experience or ability. He served as Deputy Secretary under Carmen Hooker Odom. It was under Odom’s tenure that the mental health reforms got off track. Cansler left and even though he never criticized Odom, it was widely suspected it was because of differences with the Secretary over the running of the Department.
The cause of controversy concerning this appointment is because Cansler was co-owner of a consulting firm that helped negotiate and secure a $265 million dollar contract with DHHS regarding processing and payment of Medicaid claims. Many worry about conflicts of interest going forward. We talked with the incoming Secretary about this very topic and he is very aware of the concerns about potential conflicts. He was quite candid in telling us that Governor Perdue’s team was well aware of everything prior to his being offered the position. He was quite willing to talk about the subject. His firm was on retainer to help Computer Sciences Corporation and Cansler says there was no bonus or trailing income for the successful award of the contract. He has since sold his stake in the business and Cansler assured us, as he has everyone who has asked, that he will do everything humanly possible to ensure the success of the contract for the people of the state.
Lanier Cansler is an honorable man and excellent choice to head this highly troubled department. Most believe he has the best chance of fixing DHHS of anyone Perdue could have named. A larger question being asked is whether or not Cansler will have the authority to fire those who need replacing, put competent people in key positions and have access and support from Governor Perdue.
Transportation
Gene Conti was a good choice at DOT Secretary, a professional administrator with serious transportation experience. He is getting gigged because of his Global TransPark tenure during which the state continued to pour money into an ill-fated project, but aside from that gets high marks. When he tells us he will be open and honest with us we can believe he will try to be. He has a big challenge in trying to restore confidence in a department which has suffered from poor leadership, poor execution, and too much political influence.
Governor Perdue is promising to eliminate the influence the DOT Board has in choosing road projects. We applaud her determination and wish her well with this promise, however in order to make these changes will require legislation and there is no indication from Jones Street that lawmakers share her desire for change. Senator Clark Jenkins, himself rumored to be a candidate for DOT Secretary and head of the Senate’s Transportation committee, says he wants closer relationships with DOT. Reading between the lines we read that to mean the legislature wants more influence over decision making. This can’t be good news for Governor Perdue’s attempts to have construction decisions made by professionals, not political types. (Catch this week’s NC SPIN to hear about how Senator Tony Rand is already creating havoc in the funding and selection process.)
Conti has a full plate. He is taking over a department that suffers from poor morale, rock bottom confidence levels and is basically out of the road construction business for a variety of reasons. On top of that he has to deal with the political influence from guys like Tony Rand, Marc Basnight and others who want what they want when they want it. Oh, and a Governor who wants to reshape the DOT board.
One more thing. Everyone is anticipating that President-elect Obama will be instituting a massive aid package to states to build roads and other infrastructure. Priority will be given to “shovel ready” projects, meaning those that are ready to start as soon as funding is available. Where is our DOT in this process? How many “shovel ready” projects are indeed ready? Another item for Conti to put on his to-do list.
DENR
Reaction to the announcement that Dee Freeman would become Secretary of DENR took many by surprise. Environment groups, who supported Perdue enthusiastically, were expecting someone with more experience and who would be “green-friendly.” They are grumbling, albeit quietly. We also hear that some business interests are not overjoyed at this appointment. Local government types are happy with the appointment. It is often forgotten that they have a big stake in the administration and policies of DENR.
Freeman is currently head of the Triangle J Council of Governments and was a town manager for 27 years. As such he has some experience in dealing with water and sewerage facilities. And face it, it doesn’t hurt that his wife is one of Speaker Joe Hackney’s key aides.
Commerce
Keith Crisco is a newcomer to state government and has been loudly applauded as the new Secretary of Commerce. He is a city councilman in Asheboro and owner of Asheboro Elastics, a textile company that has survived the offshore competition that caused most companies to close. He apparently also has a great sense of humor. “All we do is hold your underwear up,” he proclaims. Republicans and Democrats area applauding this selection.
Job creation is one of the big challenges facing the Perdue administration and folks from both sides of the aisle agree that Crisco is up to the task. He did say, in his announcement, that he favors the continuation of incentives to lure new businesses. Small businesses are hoping for a Secretary and administration that might actually help them. They are waiting to see what happens.
Employment Security Commission
Moses Carey has no experience in this area. Many are wondering why current ESC head Harry Payne wasn’t held over, especially in this brutally tough economy when so many are filing for unemployment. Carey will have a steep learning curve. He has been chair of the Orange County Commissioners and program director of the health disparities program at N.C. Central University's department of health education. Most are taking a wait and see attitude on this appointment.
Cultural Resources
Probably the most political appointment Perdue made to date. Linda Carlisle owned and sold a successful business, has devoted her efforts to nonprofits since that time and been a political activist. Governor Easley appointed her to the UNC-G Board and also to the Lottery Commission Board.
It was interesting that Perdue made this announcement at the same time she announced other “economic development” appointments. Cultural Resources has operated without a Secretary for over 8 months and many are wondering out loud if we really need one.
Crime Control and Public Safety
Reuben Young has been Governor Easley’s chief legal counsel for eight years and is considered a state government insider. Before that post he was an Assistant Attorney General who was assigned to represent Crime Control on legal matters.
He is probably best known for stating there was “absolutely no evidence” that Governor Easley or his top aides had ever instructed others to destroy e-mails. Later it was proved there was evidence.
Young is well respected and liked but some speculate he might not fully know what he has gotten into.
Corrections
The Governor called in the Marines to deal with this hot potato. Alvin Keller, a former Marine Colonel prosecutor and military judge. For the past five years he has been with the Department of Justice. An imposing man with ruler-straight posture, Keller promised to balance the need for prisoner rehabilitation with needs for public safety. He has his work cut out for him and it doesn’t appear he has much experience with prisons. He has a department in need of more money, more positions, and much greater discipline and accountability. A tall order even for a Marine.
Juvenile Justice
The worst kept secret in the entire cabinet, Linda Hayes was named to head this agency. Rumors of her appointment started almost as soon as the election outcome was final. For 13 years she has headed the Governor’s Crime Commission.
Revenue
There was no secret that Perdue’s former campaign Treasurer and longtime supporter Oscar Harris of Dunn would have liked this position. He withdrew from consideration and other names were mentioned but the appointment of Ken Lay came as a surprise to many. Not the Enron Ken Lay, mind you, the new Secretary of Revenue comes from a banking career, first at J.P. Morgan, then as a marketing executive at Bank of America. He is an outsider to government. Perdue says her team recruited Lay heavily to get him to leave the private sector.
Many are hoping his private sector experience might help him in trying to secure revisions in a tax code that is desperately in need of revisions.
Administration
Britt Cobb is the only holdover appointment from the Easley administration and most are glad he was the one. Initially Cobb had said he wanted to retire but we understand the Perdue team contacted him and asked that he continue. This is a big one for Perdue. Cobb understands the inner workings of state government and the administration of important areas like purchasing and contracts, property, and business dealings of the state. He will help the new administration hit the ground running so far as day-to-day operations are concerned.
General Counsel
Perhaps the biggest surprise of all the appointments centers came in the naming of Eddie Speas to be Governor Perdue’s legal counsel. Speas is one of the most experienced attorneys in state government alive today. He served as senior deputy Attorney General and headed the state’s litigation efforts. After retiring he took a position with the prestigious law firm Poyner and Spruill. Buzz on the street is amazement that he would leave what is a lucrative position to come back to state government. Perdue is given high marks for this appointment.
The Inauguration
“Ange: will speak again. It is only natural that Andy Griffith, who helped get Perdue elected, will be on the platform again at this swearing-in. He did the same at both Easley inaugurations.
By the way the event will be covered by UNC TV and a statewide hook-up of TV and radio stations, beginning at 10:30 a.m., with some stations continuing the coverage of the parade that follows. Weather is expected to be cool but no rain until much later in the day…perhaps in time for the inaugural balls.
We’re told Perdue’s speech will be 7 minutes long. Smart. No point in making lots of great promises about what you new things you’re going to do when we’ve got as many problems as we have and no money. If we were writing Governor Perdue’s speech here is what we would want her to say Saturday:
1. I understand the problems we have in North Carolina at this time. (It wouldn’t hurt for her to list a few to make sure we know she knows.)
2. I will be a fulltime governor, on the job and on top of the issues.
3. I intend to address and fix problems, starting with the biggest issues first. I promise to surround myself with the best and brightest minds inside and outside of government to get solutions.
4. I am my own person. My allegiance and my responsibility are to the people of this state, not any party, other branch of government, or interest group. I will make decisions based on what is best for all, not just a few.
5. I will be accountable for what happens on my watch. The buck stops here and I will admit when things don’t go well. I will tell you what went wrong and what I’m doing to fix it.
6. I will be open and accessible. I will grant access to my appointees, the media, North Carolina leaders, legislators and others so as to hear directly what they think. Further, I will be available to the public where appropriate.
7. I will regularly communicate to North Carolinians about their government and what is going on, be it good or bad.
No free tuition
One of the big campaign pledges Bev Perdue made was free tuition for community colleges. Not even in office she has already had to back away from this promise. Pat McCrory said this was never going to happen because the state couldn’t afford it.
Devlin leaving a big hole
State Health Director Leah Devlin announced her retirement earlier this week. She will be missed. A dentist who was formerly the Wake County Health Director, Devlin has been in the post since 2001. She will be remembered for leading the fight to help raise the tax on cigarettes and on disease prevention. Well done.
Roberson will be missed
Bill Roberson was a bigger-than-life kind of guy. The Washington, NC native came from a prominent family that bottled Roberson’s Big Beverages. Bill was in the radio broadcasting business with station WRRF and started the second TV station in the east, WITN in 1955. He served in the legislature and Governor Jim Hunt asked him to become Secretary of Transportation during his second term. He died this week at age 90. He was one of those people who kept surfacing in our lives and was a friend.
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