Our Informer

Politico, the Washington, DC-based news agency, is reporting U.S. Congressman Patrick McHenry is getting married. The fiancé is Guilia Cangiano, a senior economist with the Government Accountability Office. They have been dating for seven months, Politico reports. Also this week, GOP State Chairman and former Raleigh Mayor Tom Fetzer announced he is getting married.

McHenry was criticized this week for leaving the joint session of Congress early, before President Obama departed the podium where he put forth his case for healthcare reform. McHenry was sitting three seats away from Rep. Joe (“You Lie”) Wilson of South Carolina. His staff said he was rushing to get to an interview with a Charlotte TV crew. McHenry also has fanned the flames at so-called Town Hall meeting, with such antics as throwing what is represented as the proposed administration plan on the floor and stomping on it. He was seen live on C-Span at a Cherryville meeting with his foot on the paper and responding to admiring fans.

POISON CLIMATE POSES CHALLENGE: The antics and falsehoods from opponents of the Obama administration healthcare reform has poisoned the political atmosphere. But more independent voters are having second thoughts about the motives of the opposition and warming to some of the proposals. Some opponents, such as Rep. Wilson, have over-reached at their own expense. Wilson’s outburst enabled his Democratic challenger to raise $700,000 in less than 48 hours. U.S. Rep. Virginia Foxx who started the lies about “death panels” will have an opponent in the form of State Sen. Steve Goss of Boone, a popular Democrat.

Some think that after a healthcare reform package is approved, voters will realize the world is not coming to an end. They will accept the program as they do Social Security benefits and Medicare. The November 2010 elections are 14 months away—a lifetime in politics.

MIKE WHO? Don’t look for former Gov. Mike Easley to be in the crowd at the Oct. 3 Vance-Aycock weekend in Asheville. This is the traditional state-wide gathering for Democrats to raise money and reach out to Western North Carolina. Continued media stories about questionable financial dealings involving the Easleys has prompted some in the Democratic establishment to push them out of sight and out of mind.

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When Gov. Beverly Perdue rolled into Hickory last week, she had a message for county commissioners from across the state who were holding their convention here: we’re going to be partners through thick and thin. Up to now it has been thin. The sick economy and falling revenues has hit counties and the state.

Gov. Perdue, who was chair of the Appropriations Committee in the State Senate, knows how to handle a financial crisis and make hard decisions. And she doesn’t back away, despite the criticism from opponents, many of whom have no idea how the state budget works. To meet payroll, Perdue had to pull millions from the education fund of the state lottery. Last week she announced that due to planning, she was able to restore the lottery money and send it to the counties. She received a standing ovation.

Perdue’s poll numbers are low and in the ultra-right-wing climate of the Unifour they have never been high. However she has followed her instincts and learned from experience. Prediction: she will be re-elected in 2012,

IGNORANCE IS BLISS? During a recent forum, area legislators defended their votes for the 2009 State budget which represented an 18 percent drop from the previous year schedule. Rep. Ray Warren, who represents Hickory and Alexander County, was the only legislator from this region to support the budget. He followed his philosophy and the leadership of the Democratic House.

Republicans Rep. Mark Hilton and Mitchell Setzer voted against the budget. Why? They also do what their party caucus demands that they do. They can give philosophical reasons, but it is all about politics. Hilton and Setzer know that voters in this area do not put a high priority on education, mental health, or parks and conservation.

Most voters also do not understand the state state budget. When Sen. Austin Allran of Catawba County said he voted against the budget because higher education did not get a cut, he was not challenged by the media or the audience. Higher education took a hit like everyone else: almost 10 percent. In fact, the higher education center in Hickory, now under Appalachian State University, took a 50 percent hit. The Manufacturing Solutions Center at CVCC which includes the hosiery and furniture technology centers took a 13 percent cut.

SCHOOLS GLOBAL COMPETITORS? The State Board of Education held a planning retreat this week and discussed lengthening the school year which now stands at 180 days. In Japan, the schoolchildren attend classes 210 days each year and in Europe the classes stretch to 212 days. Are our children so smart and advanced that we don’t need more school days? This year, Wilkes County got legislative permission to cut schools to 162 days a year, but adding 45 minutes to the school day. The goal is to save money.

Several years ago, the Hickory Board of Education faced an uproar from teachers when the superintendent proposed adding five days to the calendar. In any case, the future boils down to money when it comes to public education and students.

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Legislators have returned to their districts after passing some 580 new laws and adopting hundreds of more resolutions and enabling legislation. The $19 billion budget provided the most heat for the seven-months session described by longtime veteran Rep. Bill Owens of Elizabeth City as “the most difficult I have ever faced.”

The contentious 2009 budget is likely to be debated in the 2010 elections. No one seems happy. Hundreds of teachers and state employees will lose their jobs. Almost $1 billion in tax increases, mainly with a one-cent sales tax hike. But overall, the core of education services was protected, although some classroom sizes will be larger for students above the third grade.

Some area institutions fared well. The Center for Emerging Manufacturing Solutions at CVCC with its Hosiery Technology Center was funded with a 13 percent cut. Same was true for the Textile Technology Center at Belmont. The Hickory Area Higher Education Center on the CVCC East Campus was placed under Appalachian State University, but was cut by 50 percent. Some programs were totally eliminated.

The $19 billion budget compares with a $22.8 billion scheduled approved in 2008. The impact of the Great Recession decreased revenues by over 20 percent. The new tax increases represent about 5 percent or this year’s appropriations.

Because North Carolina’s economy has been tied to manufacturing and banking—both damaged by the recession—the problems of meeting educational and healthcare needs are more acute. Other states, namely California, are in worse shape. But all politics are local, U.S. House Speaker Tip O’Neill once observed.

HOUSE DIVIDED: Republicans of the far right are lining up candidates for the spring 2010 primary. Shawn Clark and incumbent Jay Gaither already are mounting visible campaigns for the 25th District DA office. Other names in the pot: Randy Isenhower for County Commission and Beth Williams for Clerk of Court, both closely tied to U.S. Rep. Patrick McHenry. Earlier reports had Dan Hunsucker, a commissioner, opposing State Rep. Mark Hilton, a McHenry intimate. But it turns out Hunsucker lives in Mitchell Setzer’s district. Snake handlers are determined to make Commission Chair Kitty Barnes pay for “daring to run against Sen. Austin Allran.”

The McHenry coalition also is looking for a candidate to run for sheriff. Several Maiden area names are circulating.

WHERE ARE THE DEMOCRATS? Democrats would have the House seat occupied by Rep. Hilton at the top of their wish list. Hilton consistently undermines the efforts of Rep. Ray Warren, a Democrat who defeated Mark Hollo, a Hilton protégé. Both are closely embedded in the camps of religious fundamentalists. The state House Democratic Committee is talking to a well-known person to oppose Hilton.

Democrats are pushing to find candidates for County Commission seats and for sheriff.

The national debate over healthcare is keeping some likely candidates in the background.

Democrats will be talking about challenges and opportunities at the Century Club dinner in Hickory this Saturday evening.

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There is now another reason for North Carolina property owners to worry about hurricanes. A so-called “Beach Plan” approved by the House this week would have a 10 percent surcharge placed on property insurance should a devastating storm hit the North Carolina coast. If damage exceeds $2 billion, we all pay.

The debate in the House had several legislators asking why property owners throughout the state should be liable for multi-million beachfront homes built in threatened locations by wealthy owners. Rep. Pat McElrath, a Republican from coastal Carteret County, led the opposition and attempted to amend the bill to up the threshold for liability. Democrats, led by Rep. Hugh Hollimon, the sponsor, defeated the amendment and sent the bill to the Senate with a 61-52 vote. The argument of supporters insisted that a state reinsurance plan is required to prevent insurance companies from leaving the state. More property owners are turning to the state plan to avoid huge premiums charged by commercial insurers.

Rep. Ray Warren voted to approve the bill. Reps. Mark Hilton, Mitchell Setzer, Hugh Blackwell, and Edgar Starnes cast “no” votes.

A TORTUROUS PATH: Now we have it…now we don’t. Rumors about the state budget were circulating hourly in the General Assembly this week. Gov. Beverly Perdue again leaned on House and Senate leaders to send her and budget. But the process remained deadlocked over the revenue plan. House and Senate finance chairs agree more revenue is needed. The question is how much and where to find it.

House leaders want a temporary half-cent sales tax increase and a boost on the income tax rate paid by the state’s most wealthy. Senators want to revise the state code, spreading the sales tax to services and lowering the rate. The governor wants a one-cent sales tax increase, with additional taxes on tobacco and alcohol (the sin taxes).

On Wednesday the legislators approved extension of a continuation budget that has state spending at 84 percent of budget. They have set a new deadline of July 31. In the meantime, the Appropriations Conferees continue to review budgets and make cuts, some of which will never be restored. Public radio states, including that at Isothermal Community College, got the ax.

VILLAGE OF LAKE JAMES: Legislators on a special commission to oversee the establishment of new municipalities were to meet in Burke County to consider the application on behalf of the Village of Lake James which would be located just west of Morganton. If approved, the new incorporated community will receive Powell Bill funds and other appropriations from the state for roads and infrastructure. Four years ago an application was received from organizers seeking to establish a town in Lincoln County. Legislators, led by then Rep. Joe Kiser, rejected the application of West Norman.

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The division among Catawba County Republicans already is generating reports of candidates seeking to oust incumbents. For the new leadership of the GOP organization in the county, it’s payback time.

Shawn Clark, a Hickory attorney, has started raising money for a primary campaign in the District Attorney’s race in 2010. The incumbent is Jay Gaither, a son-in-law of businessman Dean Proctor. Proctor supported Democrat Daniel Johnson in the last congressional race. Payback time for Proctor and Gaither.

The right-wing Republicans in charge of the county organization also have put a target on the back of County Commission Chair Kitty Barnes. She sought to replace Sen. Austin Allran last year. Payback time, with school board member Sheri Butler in opposition.

Mainstream Republicans are also becoming proactive. County Commissioner Dan Hunsucker is said to be preparing for a race to replace Mark Hilton in the House of Representatives. Democrats also are talking to potential candidates. Hunsucker is in a position to know what an ineffective legislator can cost the county. Hilton and Congressman Patrick McHenry are central figures in the current party leadership. Reportedly they also have been talking to people to replace incumbent commissioner Barbara Beatty and Chief Deputy Coy Reid who is expected to seek the office of Sheriff.

APPLE SAUCE: Although the Catawba County site for the new Apple center is not in his district, officials from Apple turned to Rep. Ray Warren for help in getting the incentives approved in the Legislature. Warren is closely tied to House Speaker Joe Hackney and powerful Rules Chairman Bill Owens and Majority Leader Hugh Hollimon.

It was Warren who spoke on the House floor when the incentives package was up for a vote. The county’s other Legislative representatives voted for the bill, but took no role in promoting the bill.

Some observers are saying that the $1 billion investment in the 500,000 facility would push Maiden’s tax base almost to that of Hickory. This reflects the trend of the County’s growth to the south. However Hickory realtors are hoping some of the Apple employees will look to Hickory for homes as have some of the personnel at the Google facility in Lenoir. A number of the Target employees have purchased homes in the Mountain View area.

REMEMBERING SUZIE JEFFERS: Suzanne Kramer Jeffers died last week after an extended illness. Dr. Jeffers was professor of English literature at Lenoir-Rhyne University and a longtime resident of Hickory. She was a daughter of Ted Kramer, head of the Kayser-Roth Hosiery Co. operations in Hickory for many years, and Estelle Kramer who was an owner of the Hickory Costume Shop in downtown Hickory during the 1950s and 1960s. Ted Kramer was the founder of what is now the Western Piedmont Symphony. Her husband Charles was the longtime director of the Hickory Community Theater, the second oldest community theater in North Carolina. The warmth and sparkle of Suzanne Jeffers will be missed.

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Another Catawba County native is moving into a top position in North Carolina government. Michael Houser, a Fred T. Foard High School graduate and whose parents still live in the Banoak area, has been named Deputy Commissioner for the N.C. Department of Revenue. Lanier Cansler, now the head of Health and Human Services, is a native of Newton, and Labor Commissioner Cherie Berry is a native of Maiden and still maintains her home in Newton. Cansler and Berry are Republicans.

Houser will continue to handle legislative affairs for the Revenue Department, but also will be over corporate tax programs. Houser formerly served as a lobbyist for the N.C. Association of Educators. He is well-respected in government circles.

HOPEFUL TREND? Reactions to the news feature on the controversial bullying bill in the Hickory Daily Record last week were surprising to some. The majority of people who filed online comments supported the bill and expressed no sympathy for the Catawba County legislators who opposed it. Negative comments were especially directed at Rep. Mark Hilton who said protecting children over alleged sexual orientation would lead to legalizing gay marriage.

Note: Hickory City Schools policies already include sexual orientation and gender in the list of issues that would be bullying offenses. In Hickory, the bill is no big deal. Pastors of fundamentalist churches in Alexander County have stirred the hornet’s nest.

WHEN THE ICE BREAKS … This week the House and Senate budget negotiators were frozen in place, with no agreement over a revenue stream to support a 2009-10 bill.

The House submitted a $17.4 billion plan with $700 million in new taxes and fees. The Senate and the Governor want another $700 million. The Senate did capitulate and agree to a continuation budget that cuts spending to 85 percent of the current schedule and expires in two weeks. This is a signal that next week may be the week. Look for the rollout of Senate Bill 202 next Monday.

THE A DAY FOR CATAWBA COUNTY: Excitement is building in the Maiden area. Monday Apple Inc. is expected to announce it will build a server operation in the Maiden area just off Highway 321 near the Lincoln County line. Incentives given by Catawba County will be rolled out about the same time. Reportedly they will be less than those given by Caldwell County to lure Google.

The New York Times has described the server farms as 21st century manufacturing. The Hickory area could be poised to develop a cluster of support businesses with two major operations by Google and Apple. Catawba County’s cultural attractions and the Hickory airport were said to be deciding factors in Apple’s decision.

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That humming sound from your electric meter soon will be tallying up the additional cost of a state sales tax. Sen. David Hoyle, senior chair of the Senate Finance Committee, proposed a 6.25 percent tax on electrical bills to House Appropriations Chairs late last week. It would produce about $1 billion in revenue, according to estimates from the Fiscal Research Division.

Gov. Perdue on Wednesday told House and Senate Appropriations chairs she want $1.5 billion in new revenue to save public education positions. The House version which was rejected by the Senate would have added just $740 million. The House did not have a “sin tax” provision for tobacco or alcohol assessments.

Manufacturers who would be hit hard by an electricity tax will be exempt, Hoyle confirmed this week.

ROOM TAX PROCEDES: Last Wednesday the Senate Finance Committee approved a one-cent increase in the Hickory-Conover hotel occupancy tax. The bill was presented by Rep. Ray Warren who represents Hickory and was approved on a voice vote without the support of Sen. Austin Allran who is still seething over his recent primary battle with Ms. Kitty Barnes.

Sen. Dan Clodfelter, presiding chair, turned to Allran and said, “I assume you will be handling this on the Senate floor?” Allran blushed and shook his head.

On Tuesday, the full Senate approved with Hickory tax with only six “no” votes. Allran’s was among them, surprising even some of his Republican colleagues.

HOMOPHOBIA ON PARADE: The power of the fundamentalist right wing in North Carolina politics was evidenced this week when the House took up a bill to prevent bullying in public schools. Known as the School Violence Prevention Act, the bill requires school systems to adopt a policy that makes bullying a punishable offense in schools. Race, religion, physical characteristics, gender, and sexual orientation were included in the bill. Republicans jumped on the issue and submitted floor amendments in an effort to gut the bill. Earlier in the day, legislators were bombarded with emails from fundamentalists who had been told by their pastors that the bill would promote homosexuality in schools.

Rep. Ray Warren did not vote on the bill, promising constituents he would not do so. But that did not stop the rash of phone calls and emails. Rep. Mark Hilton reportedly sent emails to Alexander County ministers and snake-handling Republicans Monday night advising them that the bill would have been defeated had Warren supported the bill. It was not true, but that did not matter to Hilton who will be working to defeat Warren next year. On Tuesday, when the bill was up for third reading, Warren and his seat mate, Rep. William Brisson of Dublin, were absent. Brisson had voted against the bill Monday night. Other Hickory area representatives joined the GOP caucus to oppose the bill, even supporting a bizarre amendment from Rep. John Blust which would authorize corporal punishment on children identified as bullies. (That included Rep. Jonathan Rhyne of Lincolnton, an attorney.)

The bill passed by one vote.

Still, some wonder how ministers who call themselves Christians could fight a bill aimed at attacking pain inflicted on children. Perhaps Rep. Hilton has the answer.

REMEMBERING LOYD MULLINAX: Four days before he died at age 92, Loyd Mullinax renewed his driver license. He was active all his life, right to the end.

Hundreds of friends reflected on his career: prominent financial executive, mayor of Newton, state legislator. Everyone who knew him had fond memories.

Now there is talk about his son, Robert, a former judge, prominent attorney, mayor of Newton. Will he also take his father’s path of the State House of Representatives? His district now is represented by ultra-conservative Mark Hilton who focuses on social and sex issues. Mullinax is respected by the community that looks as the priority issues of economic development, jobs, climate change, quality of life. Democrats and independents make up the majority of the district’s registration. Mullinax could be an effective candidate and more effective representative.

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