Heard on the Street Posted: Thursday, May 28th, 2009 Traveling mike
Your interpret reporter has been traveling all week, most recently to the Southeastern coast to visit the newly remodeled manse of a former DOT Secretary who shall go nameless. We toured the new Bald Head Island Ferry operation that is set to open June 2nd at Southport and, among other things, visited the home of Mike and Mary Easley, also in Southport. They weren`t home. We knew they weren`t home because there were no TV remote trucks parked outside.
State Budget Rollout
Budget writers in the State House expect to roll out their budget plans next week. Word is the House Leadership is pushing budget writers to lean heavily on budget cuts to balance the state`s shortfall. That means there could be budget cuts to the tune of $2 billion impacting all services delivered by state government including education spending, health care, mental health, corrections, and transportation. Apparently, there is some interesting push-and-pull going on within the Democratic Caucus. More conservative members like Bruce Goforth, Pryor Gibson, Nelson Cole and Lorene Coats have been warning the Speaker`s office to stay away from major tax hikes. Meanwhile, liberal Democrats including Rick Glazier, Jennifer Weiss and Pricey Harrison are pushing progressives to support a moderate tax proposal including increases in sales tax and income taxes to offset some of the dramatic cuts proposed for education spending and health care. Insiders say Hackney and Holliman are leaning towards a budget based on cuts – not new taxes, creating a stir of public outcry that will allow the conference committee to develop a budget that includes some modest tax hikes and acceptable budget cuts.
Here are some interesting areas to watch as the House rolls out their budget:
• Will Legislators be willing to increase the tobacco tax higher than 15˘ per pack of cigarettes to a 25˘ per pack rate that some liberal Democrats are seeking?
• Will the alcohol lobby be able to hold the line on their tax hikes as well? Some leaders in the House are looking at increasing the sin taxes already passed by the State Senate.
• Will the “Service Tax” plan under consideration in the State Senate see the light of day?
Tone deaf
It never ceases to amaze us how tone deaf some folks can be. The North Carolina Banking Commission wants to give their employees bonuses this year, similar to the half mil they handed out last year. Mark Pearce, Deputy Commissioner of the Banking Commission says the bonuses are used to attract employees to work in bank regulation and that private firms and federal regulators pay more.
Wake up and smell the coffee Mark. Most state employees are hanging on by fingernails. They have already had a pay cut and are likely to receive another in the budget the House is putting together. We`re not gamblers but suspect we could get you a line of people who wanted your examiners` jobs….some with Ph D.`s
Video Gaming Gaining Momentum?
The NC Entertainment Group will launch a television campaign on NC SPIN this Sunday promoting $480 million reasons to consider video gaming legislation. The group is pitching video gaming as means to help the State of North Carolina address its revenue problems. State Rep. Earl Jones has introduced legislation that would regulate the video gaming industry which according to the NC Entertainment would generate $480 million a year in revenue. Last week, the group launched a new website promoting video gaming, www.ncdontgobroke.com.
Top lottery officials are privately telling legislators if they want to get into the video gaming business then the lottery should be the people who run it. No official word from the lottery folks.
Interest Growing in the US Senate Seat
Word circulating around Raleigh is that the NC Democratic Party will host a bigwig meeting with the Democratic Senate Campaign Committee early next week. The DSCC will be visiting the Capital City to talk with Democratic leadership about next year`s U.S. Senate race. News reports earlier this week indicate that Congressman Mike McIntyre is considering a race but is concerned about a crowded primary field. One Democratic insider said McIntyre wants the nomination if its handed to him but isn`t so sure about giving up a safe seat to run in a primary with multiple candidates.
There is a growing list of potential candidates including State Senator Dan Blue, State Senator Malcolm Graham and former State Senator Cal Cunningham.
Hagan Gets Warm Welcome from 82nd Airborne Troops
Senator Hagan was a warm welcome during her Memorial Day weekend trip in Afghanistan, especially with the 4th Combat team from the 82nd Airborne based at Fort Bragg in Fayetteville. The Senator was interacting with the troops and was warmly received. Hagan held a number of top level meetings with the Afghan President and U.S. military leadership on the ground. The mission was kept secret for protection of the Congressional Delegation.
Fetzer vs. Adams
The race for the Chairmanship of the North Carolina Republican Party is coming down to the short rows. Republicans have seen it all hang out as former Raleigh Mayor Tom Fetzer and former Lee County Commissioner Chad Adams battle it out for the top spot. Behind the scenes the war has been run by Raleigh consultant Dee Stewart working with Tom Fetzer and longtime GOP Guru Jack Hawke promoting Chad Adams.
There`s no doubt the race will leave scars in the GOP, both sides have been slinging the mud, some of it not fit for a party that promotes a family value platform.
SBI Investigation into Lobbying Allegations Continue
The State Bureau of Investigation seems to be wrapping up its interview process into the allegations that a Blue Cross Blue Shield lobbyist offered State Representative Fred Steen a bribe. We`ve heard on the street that SBI agents have interviewed numerous legislators, some lobbyists and the principal lobbyist from Blue Cross Blue Shield. It could take up to a month before the SBI prepares a written report that they will submit to the Wake County District Attorney.
Word on the street is that BCBS of North Carolina has conducted their own private investigation and have submitted that to authorities. Insiders continue to say don`t expect anything to come of this inquiry – meaning it`s a lot more smoke than fire.
NC SPIN water forum-Mark Your Calendar!
The NC SPIN Water Forum is being presented to help our state awaken to the real and present problems and opportunities surrounding the important issue of water. This will be held on the morning of August 18th in Pinehurst, NC and will feature presentations by acknowledged experts and advocates on statewide North Carolina water issues accompanied by a lively and unrehearsed panel discussion and Q & A session.
Underwriting sponsorships are available now and going quickly as they are limited to one sponsor per industry, so please contact Suzannah Higby at 919-832-1416 or shigby@carolinabroadcasting.com for more information on these unique opportunities to send your message statewide.
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