Our Informer

News media across the country focused on one question posed to Democratic presidential candidates Monday night on CNN. It came from the Rev. Reggie Longcrier of Exodus Church: “Religion-based bigotry was used to justify slavery, promote segregation and deny women their rights. Why would you use religion to deny gay people their rights?” The questioned to directed to John Edwards who has said he opposes gay marriage because of his religious beliefs.

Edwards had a hard time with the question, saying he would not use presidential powers to oppose gay marriage authorized by individual states. Later his wife, Elizabeth, told reporters that “John is on a journey, a journey we all have taken.” She supports gay marriage.

Rev. Longcrier used YouTube to submit his question as did thousands of others. He was among the 39 people selected to present questions to the candidates at the Charleston SC debate. He identified himself as being from Hickory North Carolina. His question was used in reports on the front page of the Miami Herald, The Washington Posts and in other newspapers. YouTube brought Rev. Longcrier and his wife to Charleston for the event at the Citadel. Also attending the event were representatives from Faith in America, an organization founded by Hickory businessman Mitchell Gold to oppose religion-based bigotry.

BUDGET DEAL: Legislators are working feverishly in the final hours of the 2007 session of the General Assembly. Those who follow North Carolina government will be interested in the implications for their cities and counties.

The budget includes a three-year plan to remove the burden of Medicaid from the backs of the counties. The state will continue to collect a quarter-cent sales tax which was set to expire to fund one-fourth of the county share of Medicaid in 2008, half of the cost in 2009, and all of the cost in 2010. Counties will be given the option of holding local referendums on a half-cent sales tax or four-tenths of 1 per cent land transfer tax. The League of Municipalities and the N.C. Association of County Commissioners have pushed for these options in face of fierce opposition from the N.C. Association of Realtors. The realtors spent more than $500,000 to fight the transfer tax and have threatened to oppose legislators in competitive districts who vote for the authorization.

But this could backfire on the realtors. Leaders of the political parties will not be forgiving if they lose members of their caucus because of realtors’ involvement. Proponents of the land transfer tax argue that revenue keeps property taxes lower. The tax is only levied when a piece of property is sold.

NOW YOU SEE IT, NOW YOU DON’T: Senate Bill 1321 introduced by Sen. Joe Sam Queen put more stringent requirements for the transfer of water of a river basin. The bill received a favorable report from the Senate Committee on Agriculture and Natural Resources Tuesday and was on its way to Finance Committee.

Then a funny thing happened. It disappeared. But lo and behold as the Senate Finance Committee considered House Bill 820—originally sponsored by House Finance Chair Pryor Gibson to cover a small change in fishery management rules—there was the 10-page text to Amend the Interbasin Transfer Laws. The bill was on the Senate agenda Friday. It can be sent over to the House for concurrence without a House committee hearing. It was expected to be on the House agenda Saturday.

In the final hours of the session, when bills are racing to deadlines, shortcuts become the norm. The IBT issue probably was the most closely followed by residents of the Catawba Valley who have opposed the transfer of water to Concord and Kannapolis. Attending the hearing on Tuesday at the Agriculture and Natural Resources Committee were Valdese City Manager Jeff Morse, assistant Hickory City Manager Tom Carr, and Catawba County Commissioners Chairman Kitty Barnes among others. Also attending was former Hickory assistant manager Brian Hiatt who keeps in contact with Gary McGee, former Hickory City Manager. Hiatt now is city manager of Concord.

A THORN REMOVED: Manufacturers across the state have been plagued by a regulation that put their machinery under the N.C. Building Code. As a result, manufacturers were required to get equipment re-certified to Underwriters Life (UL) specifications any time they acquired new machinery or moved it. This required employment of electrical contractors and in some cases of larger manufacturers the bill ran $200,000 or more.

Senate Bill 490 introduced by David Hoyle of Gaston exempted industrial machinery from the building code. Despite heavy lobbying from the UL and electrical contractors, the legislators approved the bill. Hosiery and textiles industry lobbyist Paul Fogleman testified at the House Insurance Committee which unanimously recommended approval of the bill. Fogleman emphasized the financial burden the regulation put on entrepreneurs.

IN PLACE: Rep. Ray Warren said Friday the appropriations of $600,000 for the Hickory engineering center and $200,000 for the Hosiery Technology Center remain in the budget. Final adoption of the budget is expected shortly after 12:01 a.m. Sunday. Two readings of the budget on separate days are required, with the first reading to take place Saturday.

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Time was that Democrats in office were exposed for sexual improprieties and Republicans were caught with shady money deals. But the cycle has gone in the opposite direction in North Carolina politics.

Last week GOP Rep. David Almond of Stanley County abruptly resigned after he allegedly confronted his 63-year-old legislative assistant with a bizarre sexual act. House minority leaders are said to have given him an ultimatum and within hours Almond’s legislative office was empty. According to reports, he is facing criminal charges filed by the aide.

The next week Rep. Joe Boylan, who defeated Rep. Richard Morgan in a hot GOP primary in Moore County, is alleged to have a groped a female legislator in a popular Raleigh steakhouse. Witnesses said Boylan was intoxicated. Previous incidents involving Boylan reportedly led party leaders to warn: “Seek treatment or resign.” Boylan still has his seat.

The latest involves the Rev. Coy Privette who served as a GOP representative from 1984 to 1992. Privette, also a leader in the conservative Christian Action League, faces six counts of aiding and abetting in prostitution. The 74-year old Cabarrus County figure is alleged to have rented a hotel room in Rowan County for sex with a prostitute. Privette denies the charges.

Democrats have been tripped up by their passion for money. Former Speaker Jim Black was sentenced to more than five years in prison for taking $25,000 in cash from chiropractors in exchange for a budget provision. Rep. Thomas Wright and Rep. Mary McAllister are fending off criticism for improprieties involving government grants and their campaign accounts. Wright faces possible criminal charges.

Conclusion: it’s time for legislators to go home.

END IN SIGHT? House Speaker Joe Hackney and Senate President Marc Basnight have announced that committees in the General Assembly will shut down Friday, July 27.
Also, budget writers were working over the weekend, leading to speculation that the state budget will be rolled out for approval as early as Monday, July 23.

Unless a special session is called, this means that legislators will leave the first week of August and return to a short session next May. With the election season in full sway, the 2008 short session could be compared to swimming with sharks. (Sorry about that, sharks).

TRASHED: The Senate Commerce Committee this week heard a bill that would require consumers to pay a 10-cents per container deposit on beverage cans and bottles. The containers could be redeemed at recycling centers for 10 cents each. Sponsors insisted this would discourage roadside littering. Also individuals, churches and volunteer organizations could earn money by cleaning up the roadsides. But opponents—fast food restaurants, soft drinks manufacturers, beer distributors, and retailers—opposed the bill, arguing that most of the litter is food containers and paper.

Suddenly a voice in the committee room piped up: “I drove four hours to speak on this bill this morning.” David Beler of the Oak Hill section of Caldwell County addressed the Senate committee noting that he and his son daily are cleaning up containers from the roadside near his home. He also noted that the City of Lenoir no longer provides recycling services. Sen. Bill Purcell of Scotland, a retired physcian, joined Beler in speaking on behalf of the bill. “Our current system is not working,” the senator said.

PREDICTIONS: (1) The $600,000 appropriation for the engineering complex in Hickory will be included in the budget. (2) The Hosiery Technology Center will receive appropriations for a new seamless textiles laboratory. (3) Rep. Mark Hilton will have opposition in his bid for re-election. (4) Rep. Ray Warren (D) will have bipartisan support from Hickory in his re-election bid due to his ability to work with the leadership on behalf of his district.

IBT: Work continues on an interbasis water transfer bill as the Legislature grinds to a halt. A Senate bill prepared by Joe Sam Queen of McDowell and Dan Clodfelter of Mecklenburg has been tweaked and should roll out in the Senate Agriculture and Environmental Resources Committee this week. Reps. Ray Warren and Walter Church are ready to move the bill through the House—quickly.

The bill has faced opposition from some Eastern N.C. legislators because some cities in the east will need IBT authority to grow. Rep. Lucy Allen of Franklin has four river basins in here district and has been involved in the language of the legislation which puts much stronger controls in the process for IBTs.

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The N.C. Senate this week began consideration of a bill that would add restrictions to interbasin transfers of water. For more than a year, the IBT proposal from Concord and Kannapolis to draw water from the Catawba River has been a hot-button issue for residents in Catawba and surrounding counties and municipalities. Although located in the Yadkin River Basin, Concord-Kannapolis received authorization to pull 10 million gallons of water a day from the river.

Two of the senators representing the concerned citizens—Sen. Jim Forrester and Sen. Austin Allran—were no-shows when the bill was introduced to the members of the Agriculture/Environment/Natural Resources Committee on Tuesday. Introduced by Sen. Joe Sam Queen whose district includes McDowell and part of Burke Counties, the bill requires petitioners (those seeking the water transfers} to push notice in newspapers and to send notice by first-class mail to those affected by the transfer—namely local governments and other state agencies.

The bill, crafted with the assistance of Sen. Dan Clodfelter of Charlotte, also requires petitioners to prepare an environmental impact statement which must be approved by the Environmental Management Commission. And then a public hearing is required. Any certificate granted by the commission would have to include a number of conditions, including a water conservation plan, a drought management plan, and the maximum amount of water than can be transferred on a daily basis.

Participating in the discussion was Sen. Fletcher Hartsell who represents the Cabarrus County petitioners. “I feel isolated in more ways than one,” Hartsell said. He defended the six-year process which involved the recent IBT request by his constituents. And he warned as the state grows, more such requests are going to emerge.

Clodfelter noted the lawsuit against North Carolina filed by South Carolina interests. “I agree with them,” Clodfelter said.

A similar bill is being prepared in the House. IBT legislation is expected to be adopted before adjournment later in the summer.

PREDICTION: A new version of an IBT restrictions bill will sail through the House after being introduced by Democrats from the Catawba Valley.

MEDICAID WINNERS: Counties in the Hickory Metro Region would come out winners in the three-year Medicaid takeover plan revealed by Senate leaders this week.
Essentially, would hold a quarter per cent of the county’s share of sales taxes in 2008.
A year later the state would withhold half-cent. (another quarter cent) and this formula would be permanent. Counties would have to hold cities harmless for their loss (reimburse cities for the revenue they would have received.) The Senate plan is similar to the plan proposed in the House version of the budget. But the Senate plan does not authorize counties to hold referendums to replace the lost sales tax revenue.

Under the formula released by the Senate staff, Catawba County would have a net gain of $798,647 by 2010 with the state picking up the county’s Medicaid tab in exchange for the half-cent sales tax. Caldwell would be in the black by $487,809, Burke by $501,310.
Alexander County would not gain, with the state holding the government harmless for $530,300.

Alexander is among other counties facing a net shortfall. That is why House members are pushing Senate conferees to include provisions enabling local governments to adopt local options including a land transfer tax and sales tax.

Those counties that choose to replace the lost sales tax revenue beginning in 2008 could delay property tax increases for several years.

AND THE WINNER IS…. A divided House Finance Committee this week approved a bill that would change the formula for dividing proceeds from the education lottery. Some 65 per cent of the proceeds would be divided among all counties based on enrollments. Another 17.5 per cent would go to low-wealth counties with the final 17.5 per cent based on growth of enrollment. Most rapidly growing counties would gain. But not all.

Catawba County would see revenue for school construction increase by $225,000 a year. Alexander would get $163,068 more and Burke’s share boosted by $435,000. But Cumberland County, home to Senate Majority Leader and Rules Chairman Tony Rand would lose $1.9 million a year and Gaston (Sen. David Hoyle, chair of Finance) is down by $1.5 million. Any odds on passage?

Mecklenburg representatives, noting their county would lose over $3 million, said they were supporting the bill because it was “the right thing to do.” But Durham legislators, seeing $1.6 million go away, opposed the bill insisting the county was penalized for adopting a higher property tax rate to improve their schools.

EQUAL JUSTICE? Former House Speaker Jim Black was the topic of conversation in the General Assembly this week. He admitted wrong-doing in accepting $29,000 to include a budget provision that would help chiropractors. Federal prosecutors said it was obstruction of justice.

Democrats and Republicans said Black should have expected the worse. Federal prosecutors have been encouraged to go after Democrats. Judge Terrance Boyle who imposed the 63-months sentence is a son-in-law of Tom Ellis of Raleigh, architect of the Republican renaissance and confidant of former Sen. Jesse Helms. Sitting in the courtroom while Black was being sentenced were former Sen. Fern Shubert (d.b.a. Madam Defarge) and former Rep. John Rhodes of Mecklenburg, both who have publicized their extreme dislike for Black. GOP Party activist Bill Peaslee also reportedly enjoyed the sentencing.

Most members of both political parties were subdued when learning of Black’s sentence which could turn out to be life for the 72-year old Democrat. Meanwhile in Washington Scooter Libby, chief of staff to Vice President Cheney, walked away free after lying to a Grand Jury about a national security breach involving the outing of a CIA agent.

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Clinton and Hickory brought back to North Carolina recently the title of All-America City. For Hickory, it was the third time in 40 years and puts the city in a group of 28 other U.S. cities to win the All-America City title in as many times.

A resolution introduced in the General Assembly June 21 honors the City of Hickory and the memory of the late Julian S. Whitener who served as mayor from 1959 to 1977. Whitener was mayor when Hickory won the award the first time in 1967. He was defeated by longtime rival George D. Murphy in 1977. The resolution also mentions Hickory’s “economic rebound” and the work of Exodus House and creation of the Higher Education Center.

Sponsors of the bill in the House are Rep. Ray Warren, Rep. Mitchell Setzer and Rep. Mark Hilton. A companion bill in the Senate was introduced by Sen. Austin Allran and is scheduled for the July 16 session.

Rep. Larry Bell introduced the resolution honoring Clinton and its founder Richard Clinton who donated land for the courthouse in the 1780s. Clinton’s bid for All-America City honors was based on a community-wide effort to raise $1.4 million for a high school and a program to fight child obesity.

BUDGET CREEP: Leaders from the House and the Senate continue to hammer away at divisions blocking adoption of a $20 billion state budget. The Senate leaders have promised to take Medicaid costs off the shoulders of county taxpayers. But finding the revenue to do that has stymied budget writers. The concept of a land transfer tax has died, thanks to a million-dollar lobbying effort by the N.C. Association of Realtors. The land transfer tax already exists in several coastal counties where property taxes have fallen. Still, the legislators have no stomach for the one-time fee which realtors labeled “the home tax.”

The Senate, joined by General Assembly Republicans in both chambers, wants to sunset a quarter-cent sales tax and a quarter percent off the income tax paid by the wealthiest. Proponents of the sunset say the 8 percent income tax rate on top wage earners discourages economic development in the state. The House argues the taxes are needed for education.

The budget is the lightning rod for politics in North Carolina. Republicans use the budget as an example of waste and overspending. Democrats defend the expenditures as necessary for state growth and quality of life which attracts new business.

LT. GOVERNOR: Hickory native Dan Besse of Winston-Salem is among three Democrats who are gearing up for 2008 race for lieutenant governor. Besse reported having $101,000 in his campaign account at the end of the second quarter. But he was far behind Sen. Walter Dalton of Rutherford County who had raised $485,000 and Hampton Dellinger, former legal counsel to Gov. Easley, who reported $275,000. Dellinger has some high-profile supporters, including Branford Marsalis and Frances Mayes of Hillsborough who wrote “Under the Tuscan Sun.”

Dalton is the only high profile candidate east of Raleigh who is seeking an executive office. He is a chair of the Senate Appropriations Committee.

EQUAL JUSTICE: Friends of former House Speaker Jim Black (and there are many in the General Assembly) wonder if the Presidential commutation of the sentence for Scooter Libby, aide to Vice President Dick Chaney, will have any impact on the sentencing of Black. Libby lied to a Grand Jury in an attempted cover-up over the outing of a CIA cover agent. He received a 30-months sentence which the President insisted was too long.

Black admitted taking $29,000 in cash from chiropractors and then inserted a budget provision that required insurance companies to include chiropractors in coverage. Black is alleged to have used the money to pay GOP Rep. Michael Decker to switch parties, thus creating a tie in the election of a House Speaker in 2003. The result was co-speakers and bipartisan power-sharing in leadership positions.

A federal judge publicly announced he would give Black the maximum sentence under the law, although Black cooperated with prosecutors. That judge later recused himself when it was learned he had represented Republicans as an attorney in a lawsuit over 2001 redistricting. Black is 72 and could face the rest of his life in prison. His friends say Black has more than paid for his transgression. And he never lied.

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