Our Informer

The inaugural events for Governor Beverly Perdue in Raleigh last weekend included an event for some 5,000 partygoers at the Raleigh Convention Center. Well-wishers from across the state feasted on barbecue (including Wilber’s in Goldsboro) and specialties from popular restaurants from Asheville to Wilmington. The presentation of the new governor, the lieutenant governor and Council of State also featured celebrity entertainers, including Eric Church from Granite Falls.

The Catawba County contingent was led by Hickory attorney Lyndon Helton who was accompanied by his wife, Heather. Helton chaired the Perdue campaign in Catawba County and is a Perdue key. Daniel Johnson, the Democratic hopeful who challenged U.S. Rep. Patrick McHenry was in the crowd, along with L-RU President Wayne Powell and Charlotte Williams, L-R faculty member and school board member. Paul and Martha Fogleman also made the rounds.

The Hickory Metro Region, dominated by hard-right Republicans, may have been the most under-represented area of the state. And that, in itself, sends a message.

The economy and cabinet appointments were topics of conversation. And, of course, plenty of political gossip and speculation circulated. The swearing-in ceremonies on the portico of the State Archives Building was somewhat subdued although there was plenty of pomp and ceremony. As expected, a loud chorus of cheers came from hundreds of women as the state’s first female governor stepped up to address the 1,500 who came to witness history.

SENATOR HAGEN SHINES: Sen. Kay Hagan attracted crowds as she roamed through the convention center during the Inaugural Ball. She was pleased that Mitchell Gold of Catawba County attended her swearing ceremonies in Washington recently. Also she said that unlike her predecessor she will meet personally with local delegations needing help and support.

PAY TO PLAY: Democrats and Republicans in the General Assembly may have overlooked the recession and economic challenges. The traditional fund-raising receptions prior to the opening of the Legislature this year are more pricey than ever: $5,000 for a gold sponsor and $250 to $500 for a ticket. The events are held the night before the opening of new session—this year on January 28.

The events target big time lobbying groups: insurance, banks, pharmaceuticals, utilities. Bailout money also accepted.

PRINT MEDIA BLUES: Newspapers are thinner. Last year advertising revenue was down 6 to 8 percent and the forecast for 2009 is another 10 percent drop. Brad Crone, former newspaper publisher and now a political consultant, is predicting even the large dailies in Charlotte and Raleigh will be down to three days a week within five years. The Detroit Free Press, formerly a Knight-Ridder paper, announced in December it will offer home delivery only four times a week. Other days you get it online or at newsstands.

Some politicians will think this is a good thing. But a free press is the backbone of a democracy.

JOHNSON ON LIST: Daniel Johnson is still on the list of candidates for the U.S. Middle District prosecutor position. Several other names have surfaced from Mecklenburg County. Sen. Kay Hagen will have major input in the selection and she has expressed admiration for Johnson and the campaign in ran in 2008. Johnson’s wife has returned to her job in Raleigh, it is reported.

PERDUE SUPPORTS ARTS: Gov. Perdue has promised her administration will put more emphasis on the arts. She has proposed a collaboration between Commerce, Environment and Natural Resources, and Cultural Resources whose work touches on the arts and cultural landscape of the state. She also will support “a smart, fair system to assist local arts groups in recapitalizing the hundreds of community facilities across the state that serve artists and grassroots organizations.” This should be good news to the regional organizations, including Hickory’s SALT Block.

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Look for Rep. Ray Warren to become a committee chair in the upcoming session of the North Carolina General Assembly. It is rare for a representative to be given a chairmanship in his second term, but Warren has become popular with the House leadership, including Speaker Joe Hackney. With the departure of Rep. Mary McAllister from Cumberland, chair vacancies exist for the Appropriations Subcommittee on Natural and Economic Resources and the Education Subcommittee on Universities. While there may be a shifting of committee assignments, at least three chairs are open, including those held by Rep. Jim Harrell who was defeated.

Also Rep. Walter Church’s defeat left the House Committee on Financial Institutions without a chair. The departure of Church leaves Warren as the only Democratic lawmaker from the Unifour and one of two from Northwestern North Carolina.

ARE WE PART OF CHARLOTTE? To appease Charlotte leaders, Gov.-elect Beverly Perdue named Ken Lay, a banker, to be the state’s new Secretary for the Department of Revenue. Perdue supporters in Catawba County who have lobbied for more appointments to state agencies wonder if this area is considered by Raleigh as “part of Charlotte.” The county Economic Development Commission constantly touts the region as part of the Charlotte Regional Partnership. The fast-growing Southeast area of the county around Lake Norman is pulled toward Charlotte. Executives in some of the larger companies are commuting to homes in Charlotte. Perdue supporters will have a hard assignment to distinguish the Hickory Metro as a distinct area.

At least two Council of State members will have roots in Newton. Labor Commissioner Cherie Berry and Secretary of Health and Human Services Lanier Cansler grew up in the Newton area.

COMMERCE SECRETARY CRISCO: Keith Crisco, new Secretary of Commerce, is well known to Hickory hosiery and textiles executives. He has been president of Asheboro Elastics Inc. and his yarn is used in manufacture of socks and sheer hosiery and apparel.

Crisco understands the challenges facing traditional manufacturing operations. His focus will be beyond high-tech and biotechnology and this should be good news for CVCC and its new Center for Emerging Manufacturing Solutions. Crisco’s home county, Randolph, also is dominated by the Republican Party, but its leadership works with the majority party in the House and Senate.

SALUTE TO ENTREPRENEURS: They once may have worked in executive or administrative offices. Or they come from Generation X with new values. But they are starting businesses in Hickory and the surrounding area and are bravely bucking the economic tide with its near 10 percent unemployment. Most will fail, given the law of averages. But the survivors are the employers of the future. And they keep money circulating.
They are not candidates for a bailout, but one wonders if grants from non-profits or local governments wouldn’t be a good investment. Short term rent subsidies, employment incentives and advertising grants the like could make the difference. Too often they are frustrated by high-handed tactics from regulatory agencies.

A Chamber of Commerce issue?

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News media have filled up space with predictions for 2009. No rosy forecasts have been detected. But certainly the future over the next 12 months are going to be marked with significant changes–some healthy and some painful.

Healthy: More traffic for the Hickory Farmer’s Market and other such markets as the “localvore” movement finally takes hold in this area. The Carrboro and Chapel Hill markets have been strong for years as people look for locally-grown food. Farm-to-fork menus will appear in locally-owned restaurants. As the management and professional jobs here shrink, “economical” will be the buzzword for commercial foodservice. The impact of shrinking management jobs is evidenced in the loss of almost 90 members at the Lake Hickory Country Club.

This region traditionally fostered entrepreneurs. Many furniture companies and hosiery mills in the last century started in basements and backyard garages. Unemployed executives will be looking for niches in which to start a business. It has started with retail and food specialty shops. Some will succeed with low overhead and savvy marketing.

Painful: Deep cuts in public service are sure to come as tax revenues shrink. Sinking retail sales mean fewer sales tax collections at the city and county level. At the same time, demand for public services increases in a challenged economy. Non-profits will face smaller budgets as giving decreases in proportion to income. More people giving less will be the objectives for cultural groups, public service agencies, and churches. Unemployment in the U.S. will reach 9.8 percent by July. Steel companies and retailers will join auto makers in seeking some type of government bailout.

INAUGURAL FEVER: This weekend political junkies will gather in Raleigh for activities surrounding the inauguration of the state’s first female governor. Some 3,000 will attend the Friday night receptions, balls and dining events. A Catawba County delegation led by Lyndon Helton will take in the weekend, including the swearing in of Governor Beverly Perdue and Lt. Governor Walter Dalton. Helton managed the Perdue campaign in Catawba.

Several prominent supporters of President-elect Barack Obama are scheduled to travel to Washington for the January 20 inaugural. Mr. and Mrs. David Shuford, son of Buck and Helgi Shuford will be among those at the North Carolina Society Ball at the Marriott. Some 1,800 have purchased tickets for the event. Shuford is employed with a leading law firm in Washington and is an Obama supporter.

NEWTON NATIVE IN PERDUE CABINET? Insiders in Raleigh are saying that Gov.-elect Perdue will name Lanier Cansler as Secretary of Health and Human Services. Cansler is a native of Newton and a Lenoir-Rhyne University graduate. He is a Republican and formerly served in the N.C. House as a representative from Buncombe County. Cansler was deputy secretary of Health and Human Services under Carmen Hooker Odom. His appointment will bring bipartisanship to Perdue’s administration. Labor Commissioner Cherie Berry, also from Newton, is a Republican in her second term. She and Cansler served in the Legislature together.

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