NC SPIN Online

Talking politics
The sub-freezing temperatures being experienced across the state are creating havoc with water systems across North Carolina. The big problem for many will come when temperatures rise and people learn about pipes that have burst. Coupled with the cold economy the year is not starting well for many.

With nothing to do out of doors and ACC basketball off to a slow start, talk has turned to politics.
Former Republican gubernatorial candidate Pat McCrory has started work for one of the larger law firms in our state, Moore and Van Allen, as a public policy consultant. What does that mean? Speculation is that this is a good place for McCrory to hang out while he mounts his next campaign for governor….and we are pretty certain you can expect the former Charlotte Mayor to challenge Governor Perdue in 2012.

NC SPIN has joined the political banter with a most interesting show this week. Guests include David Young, chair of the NC Democratic Party, and Tom Fetzer, chair of the NC Republican Party. Topics include the present value of political parties, predictions for the 2010 election cycle and reforms that need to be implemented in the election process. Be sure to catch this week`s show.

Dickson will get Rand`s seat
Word on the street is that Margaret Dickson, currently a House member from Cumberland County, will receive her party`s nomination to replace Tony Rand in the Senate. We also hear that won`t keep David Boliek, Jr. from challenging her for the Senate seat in the May primary.

Redwine will seek Soles` seat
Former House member David Redwine will run for the Senate seat vacated by the retirement of R.C. Soles, we are told. We reported several weeks ago that Soles was unlikely to run again. His legal troubles will keep him occupied for the immediate future. The Wilmington Star-News reported Wednesday that even if Soles is indicted there is little likelihood he will receive any Senate disciplinary action.

Indictments coming
We keep hearing that indictments in the Mike Easley investigation may come as early as the end of this month. No word on who will be the first to be indicted but there is widespread speculation that the former governor, big former contributors and state employees will be included in the list.

Economic Forecast
The North Carolina Bankers` Association and the North Carolina Chamber of Commerce sponsored their annual economic forecast this week in Raleigh. In a 15 minute keynote address, the new CEO of Bank of America, Brian Moynihan, admitted that many of the economic problems this country has encountered in the past year were caused by financial organizations and he promised they would work to end the crisis. Most all in attendance were impressed with the brand new CEO`s candor in admitting responsibility. Some felt that Moynihan could have gone further by acknowledging excessive executive compensation, overly risky investment policies and lack of adequate controls, but most all agreed he is starting his new position on a good foot. As Thad Woodard, head of the NC Bankers` told the News and Observer, Moynihan`s message was a “cleansing message.”

Amid the excitement was the sobering report by John Cannaughton, UNC Charlotte Professor of Economics, who told the crowd that the recession was over but it doesn`t feel that way for most because of the staggering numbers of unemployed. He said North Carolina was going to experience a slow recovery and we were not going to feel better until more people find jobs.

Cannaughton said our state has lost 300,000 manufacturing jobs. The result was that in November of last year we had 300 more people employed than in December of 2000, making the decade essentially a “lost decade.” He predicts that 32-33,000 jobs will be created this year, down from the accustomed 60-70,000 in normal years. In good years we have had 80-90,000 new jobs. By year`s end Cannaughton predicts our state unemployment rate to be about 10 percent, perhaps a shade lower. He cautioned those in attendance to be realistic, saying it may take five years or more to get back the jobs we lost in the past decade.

Liquor troubles mount
The scandals surrounding local ABC boards continue to mount. The Wilmington Star-News has run several articles of interest. All members of the New Hanover County ABC Board resigned this week just hours before it was reported that the bonuses paid top administrators had been understated. Not only did the top administrator get a $30,000 bonus for the past four years, on top of that was rewarded with thousands more in longevity pay. The paper has done an outstanding job of journalism in exposing problems inherent in the local ABC board as well as the state system. One article worth reading is how a $5.79 case of vodka ends up costing $61.92.

Meanwhile State ALE officials say the Mecklenburg ABC Board and a liquor company broke the law when board members accepted a $9,000 dinner in November. This was only one favor paid for by liquor interests, in violation of state ethics laws.

In this week`s My Spin column NC SPIN`s Tom Campbell says North Carolina has good controls over the sale of beer and wine, prescription drugs and, most recently, smoking. Why not Liquor?

Lottery appeals to minorities and low income players
Who buys lottery tickets? It is easy enough to get some idea based on where these tickets are sold. 8 of the top 10 lottery sales outlets are stores in zip codes with a household median income of less than $50,000 and all 10 stores are in areas with at least 40 percent minority population according to a report in the News and Observer.

The Charlotte Observer, in an editorial titled “A sad way to pay for state`s essential needs” said the lottery was fulfilling the concerns of most opponents by appealing to lower income players who spend sizeable amounts of their incomes trying to get rich. The article cited the provision in the lottery law that said, "No advertising may have the primary purpose of inducing persons to participate in the lottery," saying this was ludicrous. The ads appeal to people who do not have much disposable income, a sad way to pay for essential services.