Heard on the Street Posted: Thursday, September 3rd, 2009 One would think that the week before Labor Day things would be quiet on the government scene but such is not the case. Busy week, so let`s get started.
Bowles steps up
UNC President Erskine Bowles was obviously angered by all the recent bad press the University system has been getting. The question many are asking is whether or not he can do something to rein in 17 campuses that don`t appear to want his input.
Bowles admitted he was embarrassed by the revelations of The News and Observer about the growth in administrative layers of public universities. He should be. It appears his folks didn`t know the facts or at least didn`t report them. In truth, the system appears to be behind the eight ball in many of the recent revelations, including the large payouts going to administrators who leave their positions, the influence used in getting Mary Easley`s job, the increased rate in out-of-state students and the list could continue. Erskine Bowles was acknowledged as a no-nonsense executive who got things under control in a chaotic Clinton White House. He has yet to do the same in our university system.
The big winner in all this discussion appears to be Holden Thorp, UNC Chancellor, who took office vowing to flatten administration bureaucracy, improve efficiency and actually improve education. Some don`t like that he had to get private funding to pay for a study by a group of efficiency experts but the fact remains that he has UNC Chapel Hill ahead of the curve in the issue of reorganizing our universities.
Read two editorials on the issue from the Charlotte Observer and News and Observer.
For more discussion about this topic be sure to watch this week`s NC SPIN and also to read My Spin, “Can Bowles Fix this Crisis?”
The corner office in the Capitol
Bowles isn`t the only one with problems. The buzz continues about problems in the Governor`s inner circle. It is normal for a new governor to take a few months to establish communication paths, decision making and other routines but observers are saying this transition is more disjointed than recent ones. We hear complaints that too many decisions have to be made by the governor or her top two or three staffers. Cabinet Secretaries, many of whom are highly competent managers complain about not having enough authority to run their offices. Meanwhile we understand there are often major disagreements between upper echelon staffers. All this makes the governor appear indecisive and erodes confidence in her leadership.
Previous officeholders will tell you that running a state is a difficult task and the best advice is to surround yourself with the best and brightest advisors you can get and then let them do their jobs. People who have trouble delegating due to trust issues will develop ulcers in this position. One observer quipped this week that Governor Perdue has been in office eight months now. Even though she has had a horrible economic crisis on her hands it is time for her to get her administration running more smoothly.
By the way there is lots of discussion about Perdue`s announced trip to Japan and China. Part of the visit is to attend the Japan-Southeast U.S. association annual meeting. North Carolina is the host state. This is an annual event that Governors have been attending for many years. The Governor is also going to use the trip to visit economic development prospects. Some are saying that this is the wrong time to be spending money on such a trip but she told us in her budget speech that job creation was her first priority. Call off the dogs. Let`s see what results are obtained. Memo to Perdue: Don`t stay in $1,000 per night hotels. Signed, Mary Easley.
Soles to be charged
We understand that there are serious discussions about charging Senator R.C. Soles in the shooting of Kyle Blackburn at his home. Soles has claimed the shooting was self-defense but we are told there are videos of the episode that do not look good for Soles. District Attorney Rex Gore, who has close connections with Soles, removed himself from the case yesterday after saying as late as last week that there was no conflict of interest in his continuing to be part of the investigation. Gore asked Attorney General Roy Cooper to take over the handling of the R.C. Soles case. What does this mean?
Initial response might indicate that a charge is forthcoming and that Gore wants to distance himself from it. Read the latest episode of this drama from the Wilmington Star-News.
Meanwhile, another young man with ties to the Senator is having legal problems. Allen Strickland made news when he reported his house on fire, a house he says Senator Soles paid for. The SBI determined that Strickland set the house afire and arrested him, releasing him on $100,000 bond. Officers then caught Strickland driving the Corvette he said Soles gave him. Problem was Strickland doesn`t have a drivers` license. He was reportedly doing 75 miles per hour before he wrecked the car near the South Carolina line. This time officials required a $500,000 bond be posted. Strickland, a 17 year old with no job, posted the bond.
We are not experts on this but it is generally understood that at least 10 percent of the price of the bond must be paid in cash in order to get bonding. Where does a 17 year-old man with no job get $50,000?
Education governance fight continues
You know Judge Robert Hobgood sided with June Atkinson that neither the Governor, the legislature nor the Board of Education could usurp the Constitutional authority of the Superintendent of Public Instruction. We also know that Bill Harrison, the man Governor Perdue had appointed as Chair of the State Board of Education and CEO of Public Schools, resigned from the CEO job but remained as Chair of the State Board.
Some had hoped that Hobgood`s ruling and Harrison`s resignation might bring some peace to public education. We`ve got so many education problems we certainly don`t need to be fighting amongst ourselves, but we understand that`s exactly what is happening. The word is that tensions between the Superintendent and the State Board are bad and the Board is trying to diminish Atkinson`s authority. Friends of Atkinson are telling her she isn`t helping herself by being so tentative. One told her that she won the court fight, she has the power and she needs to use it in running the schools.
All this reinforces the sure knowledge that the governance issue will never be resolved until the Constitution clears things up. But we don`t see that happening anytime soon.
Question for the week
Why do local governments spend thousands and thousands of dollars each year to hire lobbyists to represent them at the General Assembly and with agencies of state government? Isn`t that what their elected Senators and Representatives in the legislature are supposed to be doing? We need to talk about this one on a future NC SPIN.
Mental Health Reform a failure
Well it took a while but we finally heard a public official admit what the rest of us knew: mental health reform in this state is a failure. The straw that broke the proverbial back of the camel was the admission that Dorothea Dix Hospital would remain open for the foreseeable future. No less than Representative Verla Insko, a champion for the mental health reforms, has agreed that the programs have failed. She told the News and Observer, "The implementation of reform was not successful. I don`t think you can call it a complete failure, but certainly it has not measured up to our expectations. Now is not the time to downsize, given the budget cuts to community services."
Dix had been slated to close because it is in terrible need of repair and because the reforms were designed to get the state out of the hospital business and transfer those issues to local governments. Informed sources told us that Central Regional Hospital in Butner was chosen to be the site of a new state mental hospital, in part because Senator Tony Rand didn`t want Raleigh to get it. Nobody wants to own that decision now because of the horrible design problems at the new facility and the poor implementation in opening it. Further, the concept of moving patients to local hospitals and service providers has failed and the demand on all mental health hospitals has been greater than ever. Cherry, in Goldsboro, is due to be replaced soon.
Those were many salivating to get their hands on the 300-plus acres of the Dix campus. Some wanted the land for a public park. Others wanted it for apartments or office buildings. None seem to remember that in the 90`s the state developed a Master Plan for state government in Raleigh. The Dix property was envisioned to be the site for expansion in state government because they had run out of land in the government complex. The plan was presented to the Council of State. We already have about 1,000 government employees working on the campus, many with the Department of Health and Human Services.
Nonetheless, it doesn`t appear that anything is going to be happening with the property in the near term. Tune in for our discussion on this topic this week on NC SPIN.
Newspapers making the news
The publishing business is bad. Newspapers are desperately trying to find their footing in a shifting economy. The latest news reports that Freedom Newspapers has filed for bankruptcy protection. Freedom publishes newspapers in Shelby, Gastonia, Kinston, Burlington, Jacksonville and New Bern as well as in 14 other states. This is most certainly not good news. Read the story.
State Board of Elections to open hearings
The State Board of Elections announced they are not yet at a point where they are ready to begin public hearings in the Mike Easley case. What does that mean? It is possible that this case has more to it than originally thought or it could mean they can`t find hard evidence to support accusations. We`re betting this has turned into a rich investigation with more twists than a roller coaster. Keep in mind this isn`t part of the Grand Jury investigation that has been ongoing for several months and could result in charges and indictments apart from any coming from the federal investigations.
We also have heard rumor that the Board of Elections will be investigating a legislator for violating campaign finance reporting and spending.
Condolences to Curliss
Some have questioned why we haven`t heard any more on the corruption scandals in our state. News and Observer investigative reporter Any Curliss has been on leave. His father passed away and he has been out of state with his family. Our condolences to the family.
Hefner dies
12 term Congressman Bill Hefner has died of a brain aneurysm at the age of 79. Hefner was a gospel singer and owner of radio stations prior to his election in Congress. We knew him during his broadcasting days. Never a flashy, news grabbing Congressman, Hefner was a member of the powerful House Appropriations Committee and was instrumental in fighting for Fort Bragg. Read the AP story.
Table games for the Cherokee?
For the past year the Cherokee Indians have run very effective messages on NC SPIN talking about their economic impact on Western Carolina. It appears more than a few people were listening. This week Governor Perdue announced she might be open to allowing the tribe permission to operate table games at their casino. You might remember that Governor Jim Hunt originally gave them permission to open the casino, but restricted them to video poker machines. Since that time the Cherokee have been pushing for table games but former Governor Easley tried to get them to agree to the state getting a cut of the action. In this game of showdown poker the Cherokee folded.
Now their efforts may be meeting with more interest. Governor Perdue can make that call by herself, but allowing table games with live dealers might result in another lawsuit. Judge Howdy Manning recently ruled that video poker machines could not be outlawed in the rest of North Carolina because they were allowed on the Cherokee reservation. If Governor Perdue allows table games will this also trigger a ruling that casinos cannot be denied elsewhere in the state? Watch this. We should talk about it soon on NC SPIN.
The Dog Ate My Tires
If a school student tried to peddle this excuse for not doing homework, any self-respecting teacher would laugh him or her out of the classroom. But it happened. The Fayetteville O says Gloria Bass` pit bull deflated all four tires in a sheriff`s cruiser. The deputy had stopped to ask Gloria a few questions but the dog bit all four tires and deflated them. Gloria is being charged $500. I can`t even think of a snappy closer for this one…sometimes truth is stranger than fiction.
Greczyn speaks on health care reform
Much has been said (and yelled) about health care reform. Bob Greczyn, CEO of Blue Cross in North Carolina has his own thoughts about the issue and shared them in a piece in today`s Charlotte O. Read his opinions and let us hear your response.
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