Golden Leaf out, N.C. Rural Economic Development Center in

The Golden LEAF Foundation was created in 1999 as a non-profit foundation to receive one-half of the funds coming to North Carolina from the master settlement agreement with cigarette manufacturers and distribute the funds to help areas that were heavily tobacco income dependent. The Foundation is supposed to help North Carolinians make the transition from a tobacco-dependent economy through grants and investments that would positively affect the long-term economic advancement of the state.

Recent complaints that Golden LEAF was not doing enough to help counties hurt by the loss of tobacco production has prompted introduction of legislation to abolish the Foundation and direct money now disbursed by Golden LEAF into a trust fund to benefit "tobacco-dependent communities." That money would be distributed by the N.C. Rural Economic Development Center. Sen. Clark Jenkins, D-Edgecombe, said many projects were approved in areas, including western counties, that did not rely on tobacco.

News and Observer
March 30, 2007
Jerry Allegood, Staff Writer

Control of tobacco millions may shift
Bill would kill LEAF Foundation

More than half the state Senate has endorsed legislation that would abolish the Golden LEAF Foundation, which distributes millions of dollars from the state's settlement with tobacco companies.

The legislation, introduced Monday by Sen. Clark Jenkins, D-Edgecombe, would direct money now disbursed by Golden LEAF into a trust fund to benefit "tobacco-dependent communities." That money -- now about $600 million -- would be distributed by the N.C. Rural Economic Development Center, a private not-for-profit organization that works with rural areas.

Jenkins said the legislation was prompted by complaints that Golden LEAF was not doing enough to help counties hurt by the loss of tobacco production. He said many projects were approved in areas, including western counties, that did not rely on tobacco. Read more...

Les Merritt needs to resign

North Carolina's Auditor needs to decide which job he prefers and resign from one of them. Merritt is the elected state Auditor and draws a full time salary of over $100,000 a year along with state benefits. He also remains involved in a personal venture as a retirement investment consultant.

Continuing with both jobs places him in a conflict of interest situation and he could be getting clients as a result of his state Auditor position.

Read the N&O editorial comment...

News and Observer
March 22, 2007
Editorial

Merritt in the moonlight

Les Merritt needs to resign. Oh, not from his elected post as state auditor, where he's been doing a good job watchdogging government. No, Merritt needs to bag his moonlighting as a retirement investment consultant, something he's been doing with his son, Dale.

First, the state auditor's position is full-time, paying over $100,000 a year, and Merritt should give it his undivided professional attention. Second, he should recognize the unseemliness of appearing to use his position as a high state official to attract private clients, whether he advertises in that fashion or not. Third, there is a potential for a conflict of interest if he ended up with a client who was a state employee. Read more...

NC using flawed formulas to calculate benefits from give-aways?

According to a study by the N.C. Budget & Tax Center in a March 21, 2007, article by Jonathan Cox at the N&O, the method NC uses to estimate benefits to be gained from large give-aways to lure business to NC is flawed. This means lawmakers making key decisions to give away future income and tax benefits to companies in exchange for building in NC are based on misleading information that does not accurately predict the benefits of the deals.

"Instead of pumping millions of dollars into state coffers, some economic development deals might actually be costing revenue and hurting taxpayers, according to the study by the N.C. Budget & Tax Center, a non-profit group that advocates for the poor."

Read the complete article...

News and Observer
March 2q1, 2007
Jonathan B. Cox, Staff Writer

Report challenges N.C.'s incentives formula

State officials overestimate the benefits gained from companies that get rich incentives to expand in North Carolina, a report says.

Instead of pumping millions of dollars into state coffers, some economic development deals might actually be costing revenue and hurting taxpayers, according to the study by the N.C. Budget & Tax Center, a non-profit group that advocates for the poor.

At issue is a computer spreadsheet that Department of Commerce officials use to assess economic development deals. They plug in variables -- from the number of jobs expected to the amount of sales an operation will generate -- to determine whether future benefits will outweigh the costs.

The report says that the model is flawed and that officials too often use inflated assumptions that make projects look better than they are... Read more...

NC Issued 27,000 licenses on invalid social security numbers

More alarming news from the office of Les Merritt, our state auditor working on the state payroll and in his own personal business.

North Carolina has issued some 27,000 drivers licenses on invalid social security numbers. Why is this a big problem? This means that thousands of drivers licenses accepted for identification in all sorts of situations can't be traced back to known US citizens and could be used for virtually any purpose and could allow holders to gain access to places they should not be allowed into, cash checks or withdraw funds illegally, etc.

In a state audit report released March 20th it has been stated that "auditors don’t know if the invalid Social Security numbers were intentionally used to obtain licenses" according to Chris Mears, a spokesman for the auditor’s office. “We’re assuming that some of those simply will be keypunch errors [by DMV clerks], but we thought that 27,000 was a big number,” Mears said.

Yeah, right. This is a pretty large blunder to simply write off to possible data entry errors. This means we could have hundreds or thousands of unscrupulous people loose in the state that have accepted means of identification that could now gain access to many places where they can do harm or proceed to arrange further means to obtain funds or illegal accounts or whatever might serve their purposes without anyone knowing it.

Read the report out today..

News and Observer
March 20, 2007
Dane Kane

27,000 licenses on invalid Social Security numbers

A state audit released today has found that North Carolina has issued roughly 27,000 drivers licenses to motorists based on invalid Social Security numbers.

State Auditor Les Merritt said the problem lies with licenses issued under an older system that the state Division of Motor Vehicles now uses. The new system, which the division began using in August, checks Social Security numbers automatically before issuing licenses. The old system did not.

“The hole we discovered was that DMV did not review previously issued licenses," Merritt said in a news release. “That hole presents a potential threat to homeland security and exacerbates the problem of identity theft.” Read more...

More pay to attract Math and Science teachers

North Carolina is again discussing the idea of using higher pay to attract good teachers. Since Math and Science teachers are such a hot item the legislature is considering increasing pay for these teachers in three school districts by $15,000 per year.

Three years ago in 2001 the state's experiment of offering an extra $1,800 a year to math, science and special education teachers at high-poverty schools or those where student performance lagged ended in disappointment. The N.C. Association of Educators says "differential pay kills teacher morale". Representative Ray Rapp, a Mars Hill Democrat who will help assemble the state education budget, doesn't think it is right to build a pay scale based on teacher specialty, when a school's English teacher may be working just as hard as the math teacher. "It has the potential to create a situation that is terribly demoralizing and destabilizing."

Read the article...

News and Observers
March 19, 2007
Lynn Bonner, Ataff Writer

More pay weighed for some teachers
Lawmakers are talking about raises for math and science instructors, or those at high-poverty schools

Math and science teachers are such hot commodities these days, legislators are considering offering them extra pay to fill North Carolina's classrooms.

The state has a spotty history with offering extra money to teachers-in-demand, but influential supporters want to try again.

Senate leader Marc Basnight has been talking about extra pay for science and math teachers for months. He made a big pitch for the idea in a speech to his colleagues launching the legislative session. Senate Minority Leader Phil Berger likes the idea, too, though he would make special education teachers eligible for higher salaries along with science and math teachers.

"To attract people into these fields, we need to offer more pay," said Berger, a Republican from Eden. Read more...

Another questionable appointment made by Easley

The State has confirmed a questionable appointment to the NC Utilities Commission. After numerous letters were sent to Governor Easley, Edward Finley's nomination to the post by the Governor, as well as the reappointment of commission member Samuel "Jimmy" Ervin IV to another eight-year term has been confirmed.

The article cites that a letter sent to Easley by 17 environmental groups said Finley's employment and legal practice exhibited an "extreme one-sidedness" through his work on behalf of utility companies. Does the Governor or his "trusted" advisors ever listen to the public?

Read the article on WRAL's website below...

WRAL.com
March 15, 2007

Legislature Confirms Finley, Ervin to North Carolina Utilities Commission

RALEIGH, N.C. — A lawyer whose past representation of utility companies stirred the ire of environmental groups won a seat Thursday on the North Carolina Utilities Commission.A letter sent to Easley by 17 environmental groups said Finley's employment and legal practice exhibited an "extreme one-sidedness" through his work on behalf of utility companies. Read more...

So... get rid of NC's Surplus Property Commission

Commission wasting taxpayer dollars? The solution here is pretty straight forward. Just get rid of the Surplus Property Commission. Seems like a no-brainer...

In the photo at left by John Rottet... James Lamm, an Alamance County farmer, has offered $400,000 for 112 acres that the state owns next to his farm, but his proposal was rejected. The N.C. National Guard says it plans to use that land, although it has not done so in 15 years.

If this commission was created in the Jim Black era and hasn't produced any results then it should not exist. This is yet another example of waste in North Carolina's government and needs to be eliminated as soon as possible. According to Jim Troxler, a Republican who has worked with the commission on several properties "Members of the public shouldn't have any confidence in a commission that deals the way this one does."

News and Observer
March 18, 2007
J. Andrew Curliss, Staff Writer

Surplus property panel raises doubts

Three years ago, in tight budget times, legislators came up with an idea few argued over: A new commission would seek help from real estate interests to sell land and buildings the state doesn't need.

The sales would add millions to the state's treasury. Properties would return to local tax rolls. Brokers and agents who spotted the surplus properties would get a cut of the action.

But so far, the N.C. Commission on State Property has not produced a single sale.

The commission's work has been stymied by ethics questions, poor choices, political maneuvering and resistance from state agencies that owned land the commission targeted, according to interviews and a review of documents by The News & Observer. Read more...

Black's replacement, Tricia Cotham, will be the youngest legislator when Governor Easley appoints her to the office later in March. She was selected by 23 of 32 votes in a special election in NC House District 100...

News and Observer
March 16, 2007
Associated Press

Black replacement will be youngest legislator

CHARLOTTE - A Mecklenburg County school administrator on Thursday won a special Democratic Party election to replace former House Speaker Jim Black, who resigned from the Legislature last month before accepting plea deals on corruption charges.

Tricia Cotham, 28, is poised to become the state's youngest legislator after receiving 23 of 32 votes in a special election held by party officials in House District 100. Gov. Mike Easley will likely formally appoint Cotham to the seat later this month. Read more...

Political challenge - UNC system will have to accomodate 300,000 by 2017

North Carolina's university system must undergo massive planning to accommodate up to 300,000 students by the year 2017. In the next ten years the annual high school graduation rate is expected to increase by 30,000 students, and almost 22,000 of those will be Latino students.

New programs and methods must be implemented to allow the university system to be flexible and accommodate the growth. Read more from the news release from today with remarks from UNC President Erskine Bowles...

News and Observer
March 15, 2007
Jane Stancill, Staff Writer

UNC system plans for growth

GREENVILLE - By 2017, the number of students enrolled in North Carolina’s public universities could reach nearly 300,000, with no majority race among high school graduates by then.

The future UNC system will be substantially bigger and more diverse, according to projections presented today to the UNC Board of Governors.

The trends are startling. During the next decade, the number of annual high school graduates in North Carolina is expected to grow by 30,000 — and almost 22,000 of those are Latino students.

“That will change this university,” said UNC President Erskine Bowles. Read more...

Ban corporal punishment in schools

North Carolina schools are for providing a quality education for all and there simply is no justification for corporal punishment in an educational setting. Two out of three school districts in North Carolina let school officials spank students.

In a News and Observer feature article about a proposed statewide ban on corporal punishment in schools, Gary Shaffer, an associate professor in the School of Social Work, said "use of corporal punishment has declined nationwide since the 1980s and most industrialized nations forbid it. There is little data about corporal punishment in North Carolina's schools," he said, "but studies from other states show boys and minorities tend to get spanked the most. Although corporal punishment might temporarily curb bad behavior," Shaffer said, "it can make some children more aggressive over time."

News and Observer
March 15, 2007
Leah Friedman, Lynn Bonner and Lisa Hoppenjans, Staff Writers

Bill would end corporal punishment in schools
Most N.C. districts allow it; ban has support of Democratic lawmakers, state superintendent

Two out of three school districts in North Carolina let school officials spank students.

Chatham, Johnston, Franklin and Harnett counties are among those that allow corporal punishment in their public schools.

"It's very rarely, if ever, used," said Harnett County Superintendent Dan Honeycutt.

But Honeycutt didn't know exactly how many times corporal punishment had been administered in his district and said he does not require principals to report it to him. Read more...

Thomas Wright's problems uncovered so far...

News on what's been uncovered on Representative Wright's problems through March 14, 2007, lists speeding, late property tax payments for 10 years, receiving earnings from a foundation whose budget he helped approve, failing to file elections reports...

News and Observer
March 14, 2007
Mark Johnson, Charlotte Observer

Wright's problems pile up
State legislator pays taxes late

RALEIGH - Last July, a state trooper in Bladen County clocked state Rep. Thomas Wright doing 72 mph in a 55-mph zone and issued the legislator a ticket.

Two months later, the charge was dismissed.

"It was a courtesy dismissal because the legislature was in session," said Rex Gore, the district attorney for Bladen and surrounding counties. Gore, a Democrat, said his office also made a clerical error in initially handling the case, which factored into the decision to erase the charge. Read more...

More problems in Rep. Thomas Wright Probe

Caught up in North Carolina's new ethics rules, an investigation continues into personal finances and possible conflicts that could jeopordize Wright's political situation. According toNoah Pickus, interim director of the Kenan Institute for Ethics at Duke University, "the important issue is whether the state's new ethics system is tough and independent enough to address any actual conflicts that could arise out of Wright's case. The guy's financial situation creates a potential conflict," Pickus explained, "but potential conflicts are for the voters to judge."

News and Observer
March 15, 2007
Mark Johnson, The Charlotte Observer

Fiscal woes cloud Wright probe
House member's finances wobbly

RALEIGH - Rep. Thomas Wright, under criminal investigation by the State Board of Elections, has run into enough financial difficulties that lenders have threatened or begun foreclosure proceedings multiple times in the past six years.

Wright also persuaded another legislator, Sen. R.C. Soles of Tabor City, to buy a Wright family home before creditors sold it, Soles said.

Wright, a Wilmington Democrat and an ally of former House Speaker Jim Black, refused to answer questions Wednesday about his finances.

"I don't think I need to talk with you about my personal business," he said. Read more...

Governor Easley changes commitments yet again

When Governor Easley presented his proposed new budget in February he indicated he wants to shift more lottery proceeds into early education programs. This poses a problem for counties that have made plans to use the funds for other school needs. In Wilson County for example "A loss of funds for school construction would severely hinder paying for three planned county schools", said county manager Ellis Williford.

Wilson Times
March 14, 2007
Alex Keown, Daily Times Staff Writer

Lottery change has officials worried

Wilson County and school officials are concerned about Gov. Mike Easley's proposal to fund his More at Four program with lottery funds slated for school construction needs.

A loss of funds for school construction would severely hinder paying for three planned county schools, said county manager Ellis Williford.

The County and School District have a contract to buy 74 acres on N.C. 42 and Airport Boulevard. They plan to build an elementary school for about $17 million that should be ready for the 2008-09 school year. Plans call for a middle school to also be built on that site.

To pay for the land and the school, the Wilson County Board of Commissioners in January gave the school system $1 million and approved spending up to $17 million for construction.

When Easley proposed his budget last month, he proclaimed he wanted to put more lottery proceeds into early education programs.

The governor's new proposal would spend about $43 million less from lottery proceeds on school construction costs, a 24 percent reduction from lottery projections. It would also reduce the total amount of lottery funds being spent on education. Currently 35 percent of the lottery total is slated to be spent on education, however the governor proposes dropping that to 29 percent and using the remaining 6 percent for lottery prizes. Read more...

North Carolina's state auditor needs his own auditor

Our North Carolina state auditor needs to have his own auditor. State ethics laws say public officials should not use their positions to promote their private business. This also indicates Les is working on the state payroll at taxpayer expense and has other interests that could distract him from his state work. Way to go Les!

Our North Carolina state auditor needs to have his own auditor. In the March 14, 2007 News and Observer...

News and Observer
March 14, 2007
Dan Kane, Jane Ruffin and Ryan Teague Beckwith, Staff Writers

State auditor's news release needed an auditor

State Auditor Les Merritt spends his days setting state agencies straight on how to operate within the law. But Merritt acknowledged a blind spot, ethically speaking, when a news release published Tuesday about his private business also touted his state position.
The news release announced that Merritt and his son are working for a Raleigh-based financial consultant, providing retirement investment services.

"State Auditor and Son Collaborate to Provide Financial Services to Eastern Wake County," the release announced. Merritt is identified as the state auditor in the first sentence, and his success as the first Republican challenger to defeat a Democratic incumbent state auditor is featured in a section entitled "About Les Merritt." Read more...

More news about Rep. Thomas Wrights resignation from top jobs

More details on the news of Representative Wright's resignation from top committee posts...

Charlotte Observer
March 13, 2007
Margaret Lillard, Associated Press Writer

Former Black ally resigns chairmanships as probe continues

Raleigh, NC - A one-time ally of former House Speaker Jim Black resigned his House committee chairmanships Monday, citing an ongoing investigation into his campaign finances.

Rep. Thomas Wright, D-New Hanover, sent an e-mail to current House Speaker Joe Hackney and the chamber's Democratic members announcing his decision.

"In order not to cast disfavor upon the Democratic Party, and more importantly, this House of Representatives, I hereby wish to step aside immediately as chairman of the Health Committee and the Appropriations Subcommittee on Capital," Wright wrote, according to a copy of the e-mail provided to The Associated Press. Read entire story...

Wright leaves top job in NC House

Representative Thomas Wright is giving up a top House job while he is under investigation and says he did not want to "cast disfavor" on the Democratic Party or the House of Representatives.

News and Observer
March 12, 2007
J. andrew Curliss, Staff Writer

Wright, under probe, leaves top House jobs

State Rep. Thomas Wright has resigned from his leadership positions in the state House, saying he did not want investigations of his activities to hinder work at the legislature.

Wright, a New Hanover County Democrat, is the subject of a campaign finance investigation by the state Board of Elections.

He said he is resigning as chairman of the House Health Committee and the Appropriations Subcommittee on Capital.

He said he did not want to "cast disfavor" on the Democratic Party or the House of Representatives.

Details of the probes are not fully known. Wright said he expects his situation to be resolved shortly.

North Carolina Governor 47th in Governor's power rankings

Not too much of a surprise here. According to a new study by Thad Beyle, an expert on governors and a retired professor at the University of North Carolina at Chapel Hill our state Governor doesn't have much political power. From a news review out today...

News and Observer
March 12, 2007
Rob Christensen and Barbara Barrett, Staff Writers

Easley comes in a lowly 47th in governors' power rankings

No one should be surprised if there is a power outage in Gov. Mike Easley's office. He doesn't have much to begin with.

That's according to a new study by Thad Beyle, an expert on governors and a retired professor at the University of North Carolina at Chapel Hill.

Easley is rated the 47th most powerful governor in the nation based on factors such as tenure, budget authority, appointment and veto powers and whether the governor's party controls the legislature.

The most powerful governors are in Massachusetts, Alaska, Maryland, New Jersey and West Virginia. Read more...

Edwards more to left

John Edwards has sharpened his political running skills since his 2004 campaign. The former North Carolina Senator is more serious now, has become more focused on issues - the Iraq war, health care and the federal budget deficit. He will have to raise enough funds to compete against Clinton and Obama and must convince the American public he is the best candidate this time around...

News and Observer
March 12, 2007
Dan Balz, Washington Post

Edwards more to left than in '04

COUNCIL BLUFFS, IOWA - When he first ran for president, former North Carolina senator John Edwards was the fresh face in the Democratic Party, a perpetually buoyant campaigner who built his candidacy around his own biography.
Fast-forward to today, and there is a new John Edwards on the campaign trail. His demeanor is more serious and his elbows far sharper than four years ago. Two years after leaving the Senate, he rarely mentions his time in Washington. Nor does he talk about his experience as Massachusetts Sen. John Kerry's running mate.

His political positions also have more edge. Emphasis on biography has given way to focus on issues, where there has been a demonstrable shift to the left -- on the Iraq war, health care and the federal budget deficit. Read more...

First black woman in NC Senate dies

The first black woman in the North Carolina Senate died March 10, 2007. She joined the NC Senate in 1993 and had been a teacher in her earlier life. She was an advocate for teacher pay, reform in the education system and encouraged standardized testing.

According to Frank B. Weaver of Raleigh, a former Durham schools administrator"She was the epitome of a smart teacher. She used the King's English, personified." Since she was still in office the Durham County Democrats will decide who will serve out Lucas' two-year term for the 20th district.

News and Observer
March 11, 2007
Toby Coleman, Staff Writer

Lucas, first black woman in state Senate, dies at 71

DURHAM - State Sen. Jeanne Lucas, the daughter of a laundry presser who used smarts and self-confidence to become the first black woman in the state Senate, died Friday night. She was 71.

Lucas, who battled breast cancer, entered the Senate as a novice politician in 1993 after spending decades as a school administrator and Democratic Party functionary.

She was foremost a teacher. Though decades removed from her Hillside High School Spanish classes by the time she arrived in the Senate, she often spoke with passion about teacher pay, standardized testing and education reform. Read more...

Easley aids tied to arranging jobs

A news report published March 10, 2007, implicates Governor Easley's aids in helping to arrange private consulting work for a longtime Easley ally, Jo Anne Sanford of Raleigh, former chairwoman of N.C. Utilities Commission. This is not the first time such inappropriate conduct has surfaced. During the recent Geddings trial there were suggestions Pope "Mac" McCorkle was involved and and assisted in arranging advertisements for the new state lottery before it had been approved by the legislature.

More on the current conduct issue...

News and Observer
March 10, 2007
David Ingram, The Charlotte Observer

Easley aides intervened for ally
Spokeswoman says help 'inappropriate'

RALEIGH - Two members of Gov. Mike Easley's staff helped to arrange private consulting business in recent months for a longtime Easley ally, according to interviews and documents obtained by The Charlotte Observer.

They made telephone calls to the potential employers, discussing possible work for Jo Anne Sanford of Raleigh, former chairwoman of N.C. Utilities Commission. They also reviewed and suggested changes to the paid consulting contracts Sanford would later sign with at least five organizations and companies, including Duke Energy.

The Easley staffers even tried to arrange state-owned office space for Sanford, though she would be working for companies regulated by state government. Read more...

Easley on tax plan for the poor

The N.C. Budget & Tax Center cast doubt Monday on Gov. Mike Easley's plan to wipe out or cut in half state income taxes for nearly 1.2 million of North Carolina's lowest-paid taxpayers. A report by the group states "the number of taxpayers who would benefit is less than half of what Easley has said. Only 66,000 taxpayers would see their state taxes eliminated, not the 545,000 taxpayers that Easley said would benefit from his proposal, the center said.

News and Observer
March 6, 2007
J. Andrew Curliss, Staff Writer

Group disputes Easley on tax plan for the poor
Governor stands behind his figures

A Raleigh nonprofit that focuses on tax issues cast doubt Monday on Gov. Mike Easley's plan to wipe out or cut in half state income taxes for nearly 1.2 million of North Carolina's lowest-paid taxpayers.

The N.C. Budget and Tax Center, which advocates for the poor, said in a report that the number of taxpayers who would benefit is less than half of what Easley has said.

Only 66,000 taxpayers would see their state taxes eliminated, not the 545,000 taxpayers that Easley said would benefit from his proposal, the center said.

Instead of halving taxes for 629,000 taxpayers, the center said, Easley's plan would provide that relief to about 429,000 taxpayers. Read more...

Reslice the pie says Easley

Another twist in Governor Easley's budget has bubbled to the surface. Now he wants to "reslice" the lottery pie to direct more funds toward four year old education. Easley frequently wants to stir the pot if he can tie the topic to "his" education plans but this one would spark another debate about how lottery funds are used. In the midst of raging discussions about changing school terms and build new school sites the governor wants to take funds away from the urgent need for building.

From the news release...

News and Observer
March 2, 2007
J. Andrew Curliss, Staff Writer

Reslice lottery pie, says Easley
Reopening a debate, the governor thinks more money should go to his signature preschool

Gov. Mike Easley is proposing a reordering of what North Carolina's new lottery pays for, spending less on school construction and college scholarships and more on his signature program for pre-schoolers.

Easley, a Democrat, included the spending changes in his budget proposal for the next fiscal year. His plan is uncertain, however, because it reopens the long debate over how lottery money should be used. Legislators in 2005 fought long and often over how to divvy the proceeds and decided by slim votes to create the games of chance. Read more...