Heard on the Street Posted: Thursday, July 9th, 2009 Media Throngs Stake Out Federal Building
Better get used to a cadre of reporters and television cameras in front of the Terry Sanford Federal Courthouse on New Bern Avenue. Media reps want to catch pictures and video of select invited guests. This past week, the reporters were anticipating Reille Hunter, the now famous other woman in former Senator John Edwards` life. (Just Wendy Brown, secretary to former First Lady Mary Easley showed up on Wednesday.)
Reporters are hanging out at the federal courthouse anticipating that Hunter will soon be appearing before the federal grand jury investigating Sen. Edwards` presidential campaign. Apparently, the grand jury is trying to determine if there were any misused campaign funds to keep Edwards` affair out of the public view. No word on whether Ms. Hunter will be bringing a copy of the alleged sex tape that is apparently swirling around in certain hands.
More Company Likely
But Ms. Hunter isn`t the only person expected at the federal courthouse. We understand Dan Gerlach, former budget advisor to Governor Easley has an invitation to appear before the grand jury to discuss his role as intermediary between the Governor`s office and NC State University in the hiring for former First Lady Mary Easley.
More subpoenas may be coming – names mentioned as potential witnesses in the expanding investigation of Governor Easley include Crime Control and Public Safety Secretary Reuben Young, who was Easley`s former legal counsel and Utility Commissioner Bryan Beatty, who was former Secretary of Crime Control and Public Safety under Governor Easley.
Jim Black Coming Back to Raleigh?
Tongues are wagging this week that former Speaker of the House Jim Black may be visiting the Capital City again to provide new dish to federal agents. Some are speculating that Black wants to cut his prison term and is willing to help federal investigators learn more about the underside of the legislative belly – especially when it comes to special interest money. Some insiders are speculating the Speaker could be giving up some details about his interaction with the video poker industry.
Finding a Billion Dollars
The Governor and Legislators are talking about needing nearly $1 billion to plug the hole in the state`s budget this year. We`ve found it. Look at these numbers:
$635 million wasted in Department of Health & Human Service (The N&O, July 07, 2009)
$100 million overrun in Department of Public Instruction Computer Program (The N&O January 11, 2004)
$152.4 million in cost overruns in Department of Transportation (WRAL.com, Feb 7, 2008)
No figure cited on golden parachutes for recently resigned university officials
The question is would the state be in a deficit situation if they would do a better job managing the money and resources they currently collect?
Clearly, the public believes that state government is fat and there is too much corruption and abuse of power. That undermines any calls for higher taxes and that puts the Democrats in a tough spot.
Super Secret Ethics Probe
Reports coming from insiders at the General Assembly point to a secret ethics probe. The reports indicate the Joint Ethics Committee is looking into something but the veil of silence has kept the details under wrap.
Organizing for America
The Organizing for America listen tour continues to make roadshow stops across the state. The next visit will be Monday, July 13th in Raleigh. Lindsey Siler, Executive Director for OFA-North Carolina is taking notes during the informal talk sessions – the discussions have mainly focused on healthcare reform and sustainable, renewable energy solutions. The meetings so far in Durham and Asheville have been well received. For details visit: http://nc.barackobama.com/ListeningTourNC>.
Shake up in the Making
Inside the Capitol there`s speculation that following the Legislative session, the Governor may be contemplating a major shakeup of her senior staff including her Chief of Staff, Deputy Chief of Staff and Legislative Liaisons. Word is working staff finds it difficult to interact with the top brass. In the Legislature, Perdue is learning she needs a liaison that has more gravitas and respect from members of both chambers. One name being mentioned for a top slot – none other than Mr. Fix It -- Norris Tolson.
Compromise on Out-of-State Tuitions
We could see a compromise on the issue of out-of-state tuitions for college athletes. Looks like there may be a phase out of the program in the making. Senate leadership knows that Rep. Pricey Harrison won`t let go of the issue and the public has her back. The legislation basically has been a freebie for the Ram`s Club and the Wolfpack Club.
Board of Elections
The re-appointment of Larry Leake as Chairman of the State Board of Elections is bad news for former Governor Mike Easley. Mr. Leake is known as an advocate for getting ugly matters out into the public view. We hear the Board of Elections may be looking at hearings on Easley`s campaign finance reports as early as next month.
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