Heard on the Street Posted: Thursday, February 26th, 2009 Hagan’s bumpy beginning
North Carolina’s Junior Senator Kay Hagan is experiencing a bumpy take-off, to say the least. She is still occupying a two-room temporary office in the Senate basement, we’re told. Cramped, hidden, and living out of boxes is not a good way to start a new job.
But she has staffing problems and has made some tactical mistakes in her first few weeks, especially among African Americans, one group that provided major support in her election. They are upset over two firings of staff African Americans. Fred Aikens, who stumped the state on her behalf during the campaign, was hired and fired after a day and a half on the job. Aikens, you might remember, was a candidate for State Auditor in last year’s primaries. He is a former DOT Deputy Secretary, longtime legislative staffer, and former Colonel in the NC National Guard. Many are speculating that NC National Guard Adjutant General William Ingram had something to do with his firing.
Ingram and Aikens have a long history and it is contentious. It began several years ago when Aikens, then on active duty in Iraq with the Guard, sent a personal e-mail to a friend that was critical of top leadership in the Guard, only to find out his message had been intercepted and given to the AG. Aikens contends his rights of privacy and First Amendment rights were breached. Aikens was later relieved of his duties with the Guard and initiated a lawsuit which is now in the U.S. Fourth Circuit Court of Appeals.
But not only was Aikens fired from Hagan’s staff but so was Muthoni Wambu, Hagan’s state director. Chief of staff Crystal King didn’t tell either of them why they were fired. The speculation is that Aikens’ hiring has something to do with the state director’s firing. The fact that two black staffers were summarily fired has set off a firestorm among African American leadership in the state. We understand that the Legislative Black Caucus and NAACP are looking into the firings.
Some of the fallout from this will end up in Governor Perdue’s lap. We understand there are accusations that Ingram might be double-dipping, being paid for being on active duty while also receiving state pay. The Adjutant General is appointed by the Governor and with the NAACP and Black Caucus on the warpath, Perdue will get an earful and she will be listening carefully. She can ill afford to anger either group.
A good General is one who is smart enough to know when to fight and when to retreat. Ingram might have won a skirmish in getting Aikens fired but the war is far from over.
Perdue going to make the cuts
This week Governor Perdue announced another round of cuts in state budgets in efforts to keep the budget balanced. But she knows that across-the-board types of reductions will not fix this year’s crisis and certainly won’t touch next year’s anticipated $4 billion shortfall.
We reported previously that Governor Perdue wasn’t happy with the cuts proposed by state agency heads, saying the agencies offered up cuts they knew she couldn’t make. Perdue reportedly told a cabinet meeting that if the agencies didn’t offer serious proposals for cuts she would do the cutting herself. And that’s exactly what is going to happen, we are told. Rumors speculate that cuts will be made in drug courts, family courts, the SBI’s aircraft, a camp for juvenile offenders, the State Boxing Commission, the State Energy office, and correctional centers, prison work programs, the Southport Maritime Museum, and the Lost Colony outdoor drama.
Perdue is reportedly traveling with a huge notebook, spending every odd moment going through the state budget line by line. We are told she wants revisions, explanations or cuts throughout the budget that will amount to hundreds of millions. The Governor is reportedly close to announcing these cuts and presenting her budget to the legislature.
Legislature at odds over taxes
A battle is brewing between the House and Senate leadership over how to fix the state’s budget. We are told Senate leadership is advocating raising taxes on cigarettes, beer, wine and liquor while the House wants to hold the line in this tough economy. They also want to raise fees charged for drivers’ licenses and other services, such as court costs. The Senate is saying they want to pass the budget and adjourn by July 4th. The House is in no such hurry, saying the tax increases proposed are likely to make no significant difference in budget deficits as large as North Carolina is experiencing.
The CEO of RJR was roaming the halls of the legislature this week trying to rally support in opposition to a cigarette tax increase. The federal government is already saying they want to raise taxes about a buck a pack to pay for increased child health insurance. Tobacco forces say an additional state tax would further hurt farmers and an industry already in crisis.
They’re off, but not running
It’s been four weeks since our lawmakers returned to Raleigh. Two weeks ago we reported lawmakers weren’t doing much. Little has changed. Committees are not meeting and daily sessions are brief. Thursday’s News and Observer has a story about the molasses slow pace of the General Assembly, including comments from some lawmakers trying to defend the inactivity, but this week’s My Spin column reports “that dog won’t hunt.” Be sure to read it.
While they are sitting around with little to do they are putting legislation in the hopper, much of it with appropriations needed. In fact, Under the Dome reports that the 130 bills filed so far request an additional $778 million in revenues. Memo to legislators: We have a $2 billion budget shortfall this year and $4 billion in red ink next year. Spending money was sooo last year. Saving money is this year. Think about it.
To read the N&O story click here:
Lawsuit likely on school governance
Look for a lawsuit to be filed to require the courts to rule on whether or not the Superintendent of Public Instruction is in charge of administering public schools or whether the Governor has the authority to determine policy and administration of schools through appointments. This prospective lawsuit is only one of several challenges to be made to our Constitution. For a more complete and interesting discussion of challenges and possible changes to our Constitution, be sure to catch this week’s NC SPIN.
Dust off the video poker machines
Judge Howdy Manning may occasionally be wrong, but he is seldom in doubt. In truth, odds makers would tell you not to bet against the Wake County Superior Court Judge. He has a pretty dadgum good track record of being upheld by the appellate courts. This past week’s ruling about video poker, if upheld, will likely see a return of the one-armed bandits to a convenience store near you.
Manning basically said that the state could not grant permission for the Cherokee to operate video poker machines on their Reservation without giving that same permission statewide. Governor Jim Hunt granted that permission. The legislature passed laws making the machines illegal elsewhere in the state. Manning says the law was unconstitutional. Either the state must refuse to allow the Cherokee to have video games or grant everyone in the state the opportunity.
Pundits have been speculating about how this might fall out. A consensus appears forming that predicts Governor Perdue and the state will not try to take away video gambling from the Cherokee. They don’t want the extended and likely expensive legal fight with Harrah’s Casino or the public relations battle with the tribe, meaning that video poker machines will be allowed statewide. This could have serious repercussions with state lottery revenues, which could then negatively impact the amount of lottery proceeds going to schools. This, in turn, could result in calls for more state revenues to schools in a time of severe budget problems.
It could get even worse if the lawsuit currently in the U.S. Fourth Circuit Court finds that the General Assembly voted unconstitutionally in passing the lottery law in this state and the games are outlawed. Oy vey!
Obama coming to North Carolina Friday
President Obama will be coming to our state Friday to visit Camp Lejeune. During his visit, we are told he will announce his timetable for the troop withdrawal from Iraq.
Beach insurance increases meeting resistance
It isn’t a front burner issue, but coastal legislators are hearing plenty of grief over proposed increases in the beach insurance plan. Costal property owners are rebelling against premium increases of 30 percent or more and they are protesting to legislators about the latest hikes. Insurance Commissioner Wayne Goodwin says the rate hikes are justified and that if insurers don’t get the increases many insurers might decide to withdraw from underwriting insurance on beach property. Property owners say they are already battling the effects of recession with property that is worth considerably less than it was one year ago and these increases put them in position of not being able to make the payments while also not being able to sell their property. The issue is also different for permanent residents than for vacation property owners. This issue could get nasty.
Meeker for U.S. Senate
Democrats continue to look for credible candidates to run next year against Senator Richard Burr. The latest name we hear is that of Raleigh Mayor Charles Meeker.
Battle losses
NC A&T Chancellor Stanley Battle surprised many when he abruptly announced he was resigning his post effective June 30th. Educators and residents of the Piedmont Triad region are puzzled about why this educator, in office for only two years, would leave. A
Greensboro News and Record story raises the question.
We hear Battle grew tired of fighting virtual “open enrollment” culture less interested in raising academic excellence and more interested in prolonging traditions. Rather than give in he resigned.
Fuel for the reassignment debate
Wake County residents have protested and decried the massive reassignment programs in the state’s largest public school system, often citing the fact that Charlotte Mecklenburg Schools do much moving of students. Wake schools evidence more busing and frequent reassignments to achieve economic diversity, while Charlotte Mecklenburg policies favor neighborhood schools. But a newly released report says there is very little difference between outcomes at the two systems, adding fuel to the arguments against Wake County’s diversity policies.
The Queen’s University report studied both systems and concluded that Wake students performed only slightly better than Charlotte Mecklenburg’s, a factor they claim might be because Charlotte has more low income students enrolled in their system. This report is sure to re-start the reassignment wars in Wake County Schools.
Read the N&O story here, which contains a link to the Queen’s study.
Time for change in Charlotte?
“The Great State of Mecklenburg” is how Charlotte has been viewed by many who don’t live there. But leaders in the Queen City, aware that their image and posture toward the rest of the state, and especially toward the legislature, haven’t gotten them the results they want, are rethinking their posture. A Charlotte Observer editorial outlines the thinking that cooperation, not arrogance, may achieve better results. One city councilman observed it was time to “unclench our fist.” Read the Charlotte O story here:
Where are the indictments?
One longtime reader of this newsletter asked where were the indictments we indicated were forthcoming regarding a certain Senator form Southeastern Carolina. Our sources say this investigation is ongoing.
Wasn’t it interesting, however, that Senator R. C. Soles recently introduced SB 56 that would eliminate the current requirement that a voter was required to state a reason for asking for voting assistance at the polls? Many believe this resulted from a State Board of Elections investigation that found that Columbus County Elections Chairman Jesse Graham had issued instructions to poll workers not to require a voter to state a reason if the voter wanted someone to accompany him or her into the voting booth. This investigation, we understand is ongoing, unless Soles is successful in getting legislators to repeal the law.
");
ob_end_flush();
?>
|
