Heard on the Street Posted: Thursday, October 15th, 2009 Supremes hear water wars lawsuit
Tuesday the U.S. Supreme Court heard arguments in a suit in which South Carolina is suing North Carolina over water rights to the Yadkin and Catawba River basins. The water war has captured attention and hopefully will jump-start discussions about North Carolina`s need to develop a comprehensive water plan.
To read more about the water wars, be sure to read this week`s, My Spin.
Pushback on “Fat Tax”
Reactions to the State Health Plan proposals to charge extra premiums for people who smoke and who are obese are most all negative. The SHP is trying to economize and encourage people to take care of themselves, but the response has been anything but affirming of the new proposals. For more interesting opinions about the “Fat Tax” be sure to tune in this week`s NC SPIN.
Perdue challenged on campaign reports
Even as Governor Perdue has issued an order for administration employees to refuse any gifts or favors from folks doing business with the state, GOP chairman Tom Fetzer is calling for the State Board of Elections to open hearings on 17 plane trips she took while a candidate for Governor, trips that were unreported until June of this year. Fetzer says any gifts of more than $200 are to be reported and Perdue`s campaign failed to do so. The Perdue campaign blamed a software glitch on the reporting failure and modified the reports. This doesn`t satisfy Fetzer.
As we prepare for hearings on former Governor Mike Easley`s campaign it will be noteworthy to see if Perdue gets dragged into the same milieu.
Tax Reform coming?
After all the discussion during this year`s budget negotiations it appears that both the House and Senate Finance committee are ready to get down to business about tax reform. Hearings will begin November 3. While all agree that the current system, developed in the 1930`s, need revamping there are many who fear a politicized process that doesn`t broaden the tax base and lower taxes for all. Lobbyists are already girding their loins for battle to preserve their special exemptions and preferences. Republicans want to include limits on government spending and fear that Democrats will not develop revenue neutral reforms. Democrats want to make sure reforms are not regressive.
These meetings are mostly show. The plain truth is that any reform will likely be resolved behind closed doors between House and Senate leaders.
Perdue`s trip
WPTF`s Scott Fitzgerald, on his popular morning show, asked us to comment on Governor Perdue`s trip to Japan and China. Having attended two sessions of the Japan-Southeast U.S. meetings I responded that there is value in this annual event, especially since North Carolina is the host state this year. I was surprised how many Japanese businessmen were so knowledgeable about North Carolina. They have a very positive opinion of North Carolina, thanks in large measure to the persistence of former Governor Jim Hunt during Hunt 1, 2, and 3. Their presence in our state is testimony of this relationship.
I agree with many that the timing of this year`s event is not good. Coming as it does in the height of a recession, with budget cuts still continuing to many state agencies, this appears to be a waste of money. But going from Japan to China costs little extra and the Chinese economy is growing rapidly.
Overall, however, the trip is not wasted. The $76,000 reported costs to taxpayers doesn`t sound like our delegation will be renting expensive Mercedes limousines and staying in exorbitantly priced hotels. Let`s hope Governor Perdue can bring back some new jobs.
Two of most controversial Senators spent most in `08
Two of the NC Senate`s most controversial Senators, Julia Boseman (D-New Hanover) and R.C. Soles (D-Columbus) spent the most money getting re-elected. Boseman has been in the news because of an ugly separation from her partner and resulting court custody case between Boseman and the birth mother of the boy. Soles has been frequently in the news because of questionable relationships with young boys in his hometown.
The Program on Public Life reports that Boseman spent $871,500 in her race and Soles spent $839,500. Top spenders in the House were Randy Stewart (D-Nash) who spent $382,000 and Hugh Holliman (D-Davidson), $354,000.Top Republicans in the Senate include Neal Hunt (R-Wake) at $813,000 and Richard Gunn (R-Alamance) who spent $386,000 in a losing effort. Top Republican spenders in the House included David Lewis (R-Harnett) who spent $232,000 and Skip Stam (R-Wake) at $196,000.
All this for a job that pays $13,000 per year plus per diem expenses! Go figure.
Neither Senate President Pro Tem Marc Basnight nor House Speaker Joe Hackney had opposition but Basnight spent $1.3 million and Hackney spent $744,000. These expenditures went directly to hand-picked candidates and to the Democratic Party of North Carolina, earmarked for candidates of their choosing.
Meanwhile Republican Betty Fennell has announced she will once again challenge Soles for his seat. You might remember Fennell went to a meet and greet for Soles and confronted him, asking if he would admit he was being investigated. Soles denied the allegations then. Wonder how he would answer them now?
1994 all over again?
We are a year away from the 2010 legislative and U.S. Senate elections but Republicans are already getting excited. No less than the Democratic leaning Public Policy Polling reports the GOP is looking good. In samples taken earlier this month Republicans lead Democrats in generic Congressional contests and 46-36 in generic legislative elections. What this means is respondents are asked if they plan to vote Democratic or Republican in Congressional or legislative races.
The news isn`t good for Democrats. Independents and unaffiliated voters are heavily favoring Republicans at this point. This might be shaping up to be another 1994, when Republicans scored major victories in the off-year elections in the state and nation. To be sure there is a lot of time before November 2010 but Republicans have a strong story to tell about the chances of recapturing control of the House and/or the Senate in our state. This should help in both recruiting candidates and raising money.
Your reporter attended an event last Thursday evening at which Secretary of State Elaine Marshall was present. “How are you doing,” we asked?
“I thought I was doing fine until I picked up your newsletter today and it said I wasn`t doing well because I having trouble raising money,” Marshall responded with her winning smile.
“Well, are you?”, we couldn`t help but asking, trying hard to have the same winning smile.
“Well, I`m glad you asked,” Marshall said. “Next week we will release our first campaign report and I think you will be surprised how well we are doing.”
She did release the report earlier this week and Marshall shows she raised $180,000 for the first two weeks in September. Not bad. “Informed observers” can be wrong.
Inside the Parton Theatre project
Roanoke Daily Herald managing editor John Moeur is writing an insightful expose as to what happened inside city government and with negotiations with Randy Parton in the failed Parton Theatre project in Roanoke Rapids. So far, two installments of the series have been printed. If you want to learn how people with good intentions can really make a mess of things, it is worth reading installment one and installment two. Good reporting and good reading.
Mental health groups call for special session
After years of disjointed efforts, advocates for mental health, disabilities and those who are addicted appear to finally have come together to urge Governor Perdue to call a special session to restore funding to these programs. The Department of Health and Human Services took $1.7 billion in cuts in the state budget as lawmakers tried to fill a $4 billion deficit this year.
Advocates say these cuts have created a crisis and want Perdue to help in fixing it. Few believe Perdue will call a special session but might be able to reallocate funding from other sources to help restore some of the cuts. The big problem is that state revenues are still declining and there isn`t much surplus from which to transfer funds.
Look for more discussion on this in future NC SPIN programs.
Court of Appeals hears video poker case
The decision by Wake Judge Howard Manning overturning the state`s video poker ban was appealed and now a panel of the Court of Appeals is hearing the case. We were not at the hearings yesterday but just from reading reports it appears that the Judges are grilling lawyers for the video poker industry who challenged the ban. Some believe the questioning from the bench can indicate how the court will rule. If so, Judge Manning`s ruling might be overturned.
Sheriff showdown at the Lincoln corral
County Commissioners in Lincoln County voted last night to begin proceedings to remove Sheriff Tim Daugherty. The Sheriff is accused of obstructing justice by trying to stop a DWI investigation of an area doctor. They gave the high sheriff a deadline to step down. Should be interesting to follow.
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