Our Informer

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.

In the early morning hours of Saturday, the North Carolina House of Representatives rolled out a proposed 2009-2011 spending plan for state government. It appropriates just over $18 billion for services and operations and includes proposed new tax revenue of about $740 million. And no one seems to be happy with the results.

But the task is not over. It goes to the Senate which will reject the budget and conferees from House and Senate will be named to work out a compromise plan. They will be working toward a June 30 deadline. If they don’t make this deadline, 10,000 state employees will be without a job—at least until a budget is adopted.

Last Tuesday, the House Appropriations Committee began the process of rolling out a spending plan. The impact of the recession has taken its toll and budget writers were working with a shortfall of $4 billion. Thousands of teachers and their assistants were losing their jobs and pre-school programs were taking huge hits. Tuition waivers at community colleges were eliminated, along with hundreds of position. Medicaid recipients were facing cutbacks and elimination of homecare services. Eight state prisons were to be closed and thousands laid off in the Corrections and Public Safety area. The list was long and the results painful.

The marathon of presentations was interrupted by the normal House session, followed by caucuses for party members. Democrats were having a hard time coming up with a consensus for new revenue. Republicans were looking at strategies to win 2010 elections, painting Democrats as inept managers. There would be no bipartisan efforts to solve problems.

At 8 p.m. the Appropriations Committee convened to run over 50 amendments. Some were offered by Republicans who had no intentions of voting for a budget. In the meantime, the House Finance Committee was crafting a new revenues package to avoid “draconian” cutbacks to education, healthcare, and public safety.

By 10 p.m., the Finance Committee adopted a package that had a quarter percent sales tax increase, and income tax increases on persons or couples with income over $200,000 a year. It would raise another $740 million. The Appropriations Committee wrapped up it work at 11 p.m.

WHERE IT GOES: Education receives another $355 million to avoid teacher layoffs and larger class sizes for third grade and under. Tuition waivers are restored to community colleges and some UNC programs are restored. Health and Human Services will be able to shore up Medicaid and preserve homecare, dental care for children, and other programs for indigent children with the extra $290.6 million. Five prison closings were avoided with $75 million given to Justice and Public Safety. Other government services, including building maintenance, gets $15 million.

NOW COMES THE SPIN: Are Democrats cold and ruthless by adding new taxes in a recession? Or are they trying to protect services for people who need them more than ever in difficult times? Are Republicans advancing conservative principles, demanding that everyone share the pain? Or are they cynically playing on the ignorance of thousands of voters who don’t understand the consequences? And will the General Assembly lose competent, hard-working Democrats as the price for protecting education?

The spin machines will crank up in the fall.

THE LARRY AND JOE SHOW: Two weeks ago right-wing opponents of taxes brought John McCain’s Joe-the-Plumber to the Legislature for a rally. Last week GOP Rep. Thom Tillis of Cornelius rolled out Larry-the-Landlord at the House Finance Committee. According to Tillis, Larry is struggling and cannot afford the government and tax burdens imposed by Democrats. Republicans see Tillis as a rising star in their ranks who will head up their efforts to recapture control of the House in 2010.

…AND IN 2010…Two well-known and respected Democrats have expressed an interest in the 96th House District seat held by Rep. Mark Hilton. They are arguing that Democrats, Independents, and moderate Republicans make the seat winnable. Hilton’s core supporters are church fundamentalists who focus on social issues and homophobia.

More than 10 years ago, Gov. Jim Hunt announced a goal to boost pay to North Carolina public school teachers up to the national average. As a result, the Legislature approved annual raises of 6 to 8 percent each year. The state economy was growing and so did the state budget.

But as the state’s economy struggles and budget revenues shrink, public school teachers seem have lost touch with reality. Thousands of orchestrated emails are jamming the computers in offices of the legislators. “I’m tired of you balancing the budget on the backs of teachers,” is a typical comment. The whining gets more shrill by the day. In the meantime, unemployment in the private sector remains high and people are losing their insurance and retirement savings.

One wonders about those teachers who have a four-years education and who write to legislators about a dress code for teachers and students. They don’t seem to realize this is a local issue.

Last week, budget writers were analyzing education appropriations (48 percent of the budget) that reflects 11.4 cuts to public education, 11.6 decrease for community colleges, and 11.2 percent for universities. Cuts for Health and Human Services programs are even deeper. Budget writers also are looking at closing nine state prisons.

IS THERE AN OPTION? The dramatic cuts are a response to a $4.6 billion loss of revenue due to the recession. Appropriations chairs are working on a $17.4 billion spending plan, down from last year’s $21 billion. Dental care for needy school children: gone. Home care for poor elderly who want to stay in their homes: out. More at Four for pre-school children: dramatically reduced. Some members of the House Appropriations chairs have introduced racial overtones in the cuts. Not a happy picture.

Look for a “temporary” sales tax to be introduced. One cent would raise about a billion dollars. Taxes on alcohol and tobacco could raise another $600 million—maybe less. Some say a tax increase will hurt Democrats in the next election, as Republicans will vote against any tax and use this as 2010 ammunition. Many of the Republican voters will include teachers who are complaining about cuts.

SAD REPORT: Betty Clodfelter Black, wife of imprisoned former Speaker Jim Black, has been diagnosed with ALS or Lou Gerig disease. Friends report her health has declined dramatically in a short period of time. Friends of Black in the Legislature have written to President Obama asking him to pardon Black so he can be at his wife’s side. Betty and Jim are 1959 graduates of Lenoir-Rhyne. Black was sentenced to seven years in prison for paying former GOP Rep. Michael Decker to switch parties. Aggressive Republican prosecutors pushed for maximum sentences and many Democratic and Republican legislators privately say political influences prevailed and justice was not blind.

ANOTHER GOP EXIT: Rep. Bonner Stiller of Brunswick County unexpectedly announced his resignation last week, effective June 15. Personal and business conflicts were cited as the reason. Bonner is a moderate and popular with members of both parties. He defeated Rep. David Redwine, a Democratic appropriations chair, in 2002.

Rep. Cary Allred of Burlington resigned last Monday amid an investigation by the Ethics Committee and charges of speeding 102 miles per hour.

RECOVERING: Jennifer Houser, wife of Revenue Department governmental affairs specialist Michael Houser, is recovering from injuries sustained when her car was struck by a speeding vehicle driven by an 18-year-old who was killed. The couple’s infant daughter was in the car and was not hurt. Jennifer and Michael are natives of Catawba County and graduates of Fred T. Foard High School.

The N.C. House of Representatives last week approved a bill authorizing Hickory and Conover to add a penny to the hotel occupancy tax. Visitors now will pay 6 percent on the hotel bills, still far below other cities competing for conventions and trade shows. Only Rep. Ray Warren, sponsor of the bill, voted for the levy. Rep. Mark Hilton opposed the bill and Rep. Mitchell Setzer was not present. Both are Republicans.

The cities asked for the levy to finance a parking deck adjacent to the Hickory Convention Center. Additional parking is needed to keep such events as the MDI Food Show, the N.C. Cattleman’s Association, and the Catawba Valley Pottery Festival. These events fill up the hotel rooms and bring new business to restaurants.

The bill now goes to the Senate. N.C. Senator Austin Allran, who faced criticism on tax bills during his last election, will not present the bill to the Senate Finance Committee or the Senate floor. It is assumed that Jack Cozart of the lobbying firm employed by Hickory will find a sponsor. Allran has said he will not “hurt” the bill but he will not
vote for it.

HOMESICK: A lot of members in the General Assembly are ready to go home. The budget crisis is taking its toll. During a recent meeting of Education Appropriation chairs and senior Appropriation Chairs led by Rep. Mickey Michaux, the tension was obvious. At one point Rep. Michaux asked the education chairs—Reps. Ray Rapp and Marian McLawhorn—to leave the room. “We’re getting ready to go to war,” a frustrated Michaux allowed.

It is predicted that the House will consider a $17.5 billion budget proposal next week and send it to the Senate by June 12. The conference work will take at least two weeks. House Speaker Hackney and Senate President Pro-Tem Basnight would like to shut down the session soon after a final version is adopted.

CLOSING THE GAP: The Senate version of the budget included $20 billion in spending, but that was before the April tax collections were reported (down 40 percent). Senate Finance Chairs Dan Clodfelter of Charlotte and David Hoyle of Gaston are still working on a new tax overhaul—the first in 75 years. Reportedly, the tentative plan will add $600 million for schools or healthcare. House leaders still insist there will be no new taxes.

A 12 percent reduction in UNC appropriations, 20 percent cutbacks in health services for the needy, and teacher layoffs in public schools may cause lawmakers to consider new revenue. At least that is what the Senate hopes.

FAREWELL…BUT NOT FONDLY: The bizarre episode of Rep. Cary Allred came to an end today (June l) when Allred cleaned out his office. The Alamance Republican embarrassed the GOP leadership when he showed up at a Monday evening session with the smell of alcohol. He embraced a female House page from his district…some say very passionately. He admitted that earlier he had been stopped for speeding but was allowed to continue without a ticket when he identified himself to the patrolman as a member of the Legislature. After the publicity, the patrol gave Allred a ticket for speeding 102 miles and hour.

House Speaker Joe Hackney ordered the Sergeant at Arms to investigate the incidents and most of the damaging responses came from his fellow Republicans. Rep. Setzer wrote than in his eleven years in the legislature he had never witnessed anything so unsettling. This infuriated Allred who finally decided to resign last Friday. Never at a loss for words, Allred quoted Gen. Douglas McArthur’s passage “Old soldiers never die, they just fade away.” Then Allred added, “I bid thee a fond farewell.”

HUFFMAN-HILTON MATCH? Catawba County Sheriff David Huffman was walking the halls of the Legislative Building last week. He told lobbyists that a poll shows him winning over 60 percent of the Catawba County Republican vote in a primary race with Mark Hilton. Hilton is in the inner circle of conservative Republicans that took over the county’s party organization in April. This is thought to spell trouble for moderate officeholders. Huffman is not a snake handler.

Day by day, week by week, the fiscal picture in Raleigh worsens. Even with about a billion dollars in U.S. stimulus money, legislators are looking at a shortfall of more than $4 billion. That’s almost 20 percent of the budget adopted last year, with just six weeks left in the fiscal year. Next year will be equally painful, the fiscal research staff has warned.

At Catawba Valley Community College, President Garrett Hinshaw has advised the board he is voluntarily taking a salary cut. CVCC could end up with $5 billion less than budgeted, it is reported. But Dr. Hinshaw remains undeterred and optimistic. In the meantime, applications at CVCC are soaring.

The N.C. House of Representatives budget writers were wrapping up presentations this week. It is expected that the House version will go to the Senate for conference next week. The Senate version was sent to the House before all the bad news arrived, so the conference will result in a start-over exercise for senators. Senators had developed a proposed $22 billion plan. It looks as if revenue will be just over $17 billion.

WHERE’S THE BEEF? The Senate Finance Committee has yet to unveil a proposed new tax code for North Carolina, so budget writers don’t know how deep cuts will be to education (48 percent of the budget), Medicaid, health insurance, transportation, corrections, and environment and commerce. The thinking is that when the public learns of the deep cuts to programs they support, the climate for a new tax code will improve. House leaders say this is wishful thinking and have shown no enthusiasm for changes to the tax programs.

CONVENTION CENTER PARKING DECK: The Hickory Metro Tourism leadership and the Catawba County Board of Commissioners have asked for permission to add a penny to the Hotel occupancy tax for Hickory and Conover. The revenue would pay off bonds for a multi-million parking deck at the Convention Center. Reps. Ray Warren and Mitchell Setzer introduced a bill that has been approved in the State and Local Government Committee and still awaits presentation to the Finance Committee. Proponents say the parking deck is needed to keep the MDI Food Show in Hickory, an event that fills up hotels and restaurants. Problem: Right wing Rep. Mark Hilton has said he does not support the bill. Lack of support by the entire legislative delegation from Catawba County could doom the effort.

SECOND THOUGHTS FOR ASU? Some legislators have been advised that Appalachian State University is backing away from taking over the Hickory Higher Education Center. The reason: cost and anticipated drop in revenue. The ASU takeover was seen as a major step toward having a state university presence in Hickory, some officials even anticipating a full campus a decade down the road. Cutbacks also have hit Lenoir-Rhyne University which announced layoffs representing 5 percent of staff. No faculty positions were involved.

CALM AFTER THE STORM: Last week hundreds of bills were pushed through House and Senate Committees as the May 14 Crossover deadline loomed. Bills that are not approved by either Chamber before the deadline are dead for the session. This week has been calm and neither chamber had an agenda for Monday night. Few committees are meeting, with all attention focused on the budget.

NOTE: Neither Chamber considered a bill to ban gay marriage. It is a dead issue for now much to the dismay of Republicans of the Hickory area who have pushed for a state constitutional amendment to prohibit same-sex wedding vows. State law now does not legalize same-sex marriages.

Two insiders at the General Assembly last week started talking about a tip about a breaking news story. (As you can guess, one is a journalist). The conversation was triggered by a bill that was being heard Wednesday by the Senate Finance Committee. The bill, shepherded by Sen. David Hoyle, essentially provides for a new formula to calculate tax bills for large corporations preparing to made huge capital investments in operations being located in North Carolina. Word is that corporation is coming to the Hickory area. Major technology companies make substantial capital investments.

The bill passed the Finance Committee. But GOP Sen. Tom Apodoca got sympathetic nods from senators of both parties when he expressed deep frustration of huge incentives for giant corporations when small companies are creating most jobs. Hoyle also agreed with Apodoca, but said the state must be competitive in recruiting 21st century companies.

DARK CLOUDS AND DARKER CLOUDS: Storms swept across Raleigh and the Piedmont last week, some bringing tornados. The darkest cloud hung over the House and Senate Appropriations Committees in joint session last week to hear the dismal news about the financial health of the state. April tax revenues were down 40 percent. The gap in the state budget now exceeds $4.2 billion. The $22 billion budget now must be pared down to just over $17 billion.

To put this in perspective, this is about half the funds allocated for Medicaid. It is more than half the money for universities and more than one-third funds for public schools. The Legislative Fiscal Staff predicted revenue to support a $22 billion budget will not return before 2013-14.

State employees have been asked take voluntary unpaid furloughs of one day a month and the House Appropriations Committee adopted legislation to protect their health insurance and retirement benefits. Instead, angry employees stomped around the Legislative complex, some confronting House Speaker Joe Hackney. This aroused anger among some Democrats who said the option will be permanent layoffs.

SO WHAT NEXT? Part of the hole will be filled with $1.4 billion in federal economic stimulus money—mostly earmarked for education and transportation. Maybe as early as this week Sen. Hoyle will roll out a new groundbreaking tax structure for the state that will bring more revenue. While the concept was to be revenue neutral with no new taxes, somewhere additional money has to be raised. Otherwise, old grandparents will be put out of nursing homes, school children will be in larger classes in makeshift facilities, and community colleges will have to cut back on enrollments in a time of need. Legislators say this is a no-win situation. None want to run for re-election after voting for a budget with new taxes. If so, it will be Democrats who pay the price.

BULLYING BILL HEADS TO HOUSE: The State Senate last Wednesday approved a bill that requires discipline for schoolyard bullying. Race, religious, physical problems and sexual orientation were included in the language that defines bullying. Ultra-right wing Republicans, including Catawba County Rep. Mark Hilton among their leaders, have fought the sexual orientation language claiming it encourages tolerance of homosexuality. Some of his associates say he has used this issue to fire up fundamentalists in Alexander County churches to set the stage for opposition to Democrat Ray Warren.

21st CENTURY MISSING LINK: Thirty years ago motorists traveling on I-40 had to detour on Highway 70 between Conover and Hildebran because the 10-miles stretch bypassing Hickory remained unfinished. It was in the administration of GOP Governor James Holshouser that the missing link finally was opened.

Now leaders in eastern Catawba County are pushing to complete an eight-miles link on Highway 16 between Newton and Lincoln County. Several met with DOT Secretary Gene Conti to push the project higher up the priority list. Among those meeting with Conti was former DOT Board member Ann H. Gaither of Newton. Conti was attentive, participants said, but gave no hope that immediate changes in schedule for completion can be expected. Unless….unless local funds are used to complete the project and the state reimburses the county for the cost. The idea of a county bond program was tossed around, it was reported. But residents west of Newton would have to be sold on the benefits.

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This Wednesday, the Senate Finance Committee will consider an approach to a new taxing structure for North Carolina. Concepts were introduced last week through presentations made to the committee which is chaired by Sen. David Hoyle of Gaston County. The presenters dusted off documents produced by study groups which have worked over the past eight years. Catawba County residents among the participants are Leroy Lail and Kitty Barnes. Each of the documents came to one conclusion: reduce tax rates and eliminate exemptions.

Presenters said sales taxes and income taxes could be lowered. But services would taxed at the same rate of retail. Attorneys, accountants, landscapers, yard services would be among those now generating revenue. The studies showed that 168 services could be taxed and presently North Carolina assesses 30. The average among states is 56. Some states tax as many as 140.

Sen. Hoyle said the objective is to redesign a taxing structure that would be “revenue neutral.” But with a $3 billion budget hole, Republicans observed the result will be to collect more revenue. The recent Senate budget now in the hands of House leaders left $500 million to be raised from unnamed sources. And, yes, Hoyle told some reporters, there will be higher taxes on cigarettes and alcohol.

Tax reform is not for the faint-hearted, former Gov. Jim Hunt was quoted as saying. The last time the state tax code was re-written was 1933 when manufacturing dominated the economy.

LAST GASP OF BIGOTS? The spooky “There’s a wind blowing and I am afraid” television ad creating fear about same-sex marriage found some legislators in Raleigh amused. New York Times writer Frank Rich described the ad as “Village of the Damned meets Chorus Line.” Year after year, Sen. James Forrester of Gaston and Rep. Mark Hilton of Conover parade to the news conference room in the General Assembly to urge a constitutional amendment prohibiting same-sex marriage in North Carolina. But with Evangelist Rick Warren and the Governor of Utah among those insisting gay marriage is a non-issue, Hilton and his associates may find their support evaporating.

LEAN AND GREEN: Several bills have been approved by Legislative Committees dealing with the rising interest in sustainable and green economies. A bill from Rep. Ray Rapp and approved in the Agriculture Committee calls for an 18-member commission to recommend state policy on sustainable issues. Dozens of other bills would support organic farming, preservation of forests, and alternative energy practices.

A new Lean and Green publication for the Hickory Metro region is scheduled to debut in six weeks.

TO THE RIGHT, MARCH: The new leadership of the Catawba County Republican Party represents a turn to the hard right, according to veteran mainstream Hickory party faithful. The reorganization of the Catawba County GOP organization was ordered by the state party after a complaint was filed by supporters of U.S. Rep. Patrick McHenry, including Rep. Hilton and former Catawba County Commission Bob Hibbits.

Observers are saying the new party structure reflects the bitter divide between supporters of McHenry and Sheriff David Huffman. Huffman reportedly is trying to find a candidate to oppose Hilton in the 2010 primary.

Now you see it now you don’t. With a wave of a hand, a magician can make rabbits disappear. In Raleigh, budget amendments can made appropriations vanish. It happens every year and it happened again last week when the Senate Appropriations Committee crafted its version of a state spending plan. A line item for the Center for Emerging Manufacturing Solutions was swept up in a “clean up amendment” offered by Chairwoman Linda Garrou and vanished. The next day Sen. Garrou said the language was a mistake and there is no intention to delete funding for CEMS and the Hosiery Technology Center. Somewhere along the way, the appropriation will be restored. Maybe like magic.

The magic act also removed from the budget a provision that would have the state fund only one school system management per county. The author of the provision, powerful Sen. Tony Rand, said the provision would save $11.2 million annually. After some Democrats balked, notably Sen. Martin Nesbit of Buncombe, the provision evaporated from the Senate draft.

WHERE’S THE BEEF: The spending plan developed by the budget has a half-billion revenue hole. This prompted some Republicans to balk at voting for a plan that “is like a pig in a poke.” It will be up to the Senate Finance Committee headed by Sen. David Hoyle of Gaston to push a $500 million package that is sure to include new taxes. Observers say taxes on cigarettes and alcohol will be lower than recommended by the governor, but new fees will be assessed to the fastest growing segment of the economy—the professionals. Lawyers, accountants, financial consultants, advertising agencies all will be paying more to the state coffers. Some say a complete overhaul in the state’s tax structure will be forthcoming with a major reduction in state corporate income taxes.

OCCUPANCY TAX: The bill sponsored by Reps. Ray Warren and Mitchell Setzer to raise occupancy taxes collected by hotels in Hickory and Conover cleared its first hurdle last week with approval by the Local Government II committee. It is a bipartisan bill with the support of Warren, a Democrat, and Setzer, Republican. Rep. Mark Hilton, whose district includes Conover, has been quoted as saying he will oppose the bill. No new taxes. Understand?

HOUSE DIVIDED: Hickory Republicans, including former U.S. Congressman Cass Ballenger, are saying the party is now divided, with control in the hands of the Right Wing. Supporters of U.S. Rep. Patrick McHenry are now holding top party positions, as well as precinct offices. Hickory Republicans who were former party activists are now predicting current Catawba County commissioners Kitty Barnes and Lynn Lail will be ousted. Barnes angered evangelical Republicans when she opposed Sen. Austin Allran in a GOP primary. State Rep. Mark Hilton, a strong McHenry backer, and Lail live in Conover. Hickory Republicans are encouraging a Conover resident to opposed Hilton in the 2010 primary.

POTTERY INDUSTRY? State Commerce Secretary Keith Crisco was among the people from across North Carolina attending the recent Catawba Valley Pottery Festival. While here, Crisco was informed of a plan to establish a Catawba Valley pottery program on the CVCC campus with the intent to bring in apprentices and collectors to promote the 200-year old tradition in this region. Pope Shuford, a prominent Hickory businessman, is contacting people in the area to gauge the level of interest in such a program and help raise $18,000 to launch the program on East Campus of CVCC. It will be under the direction of Kim Ellington, a respected potter in statewide circles. Pope is a member of the CVCC Foundation.

OUTSIDE THE PIT: Identifying Rep. Mark Hilton as a “snake handler” angered his close associates last week. Actually, the item identified Mr. Hilton as a spokesman for the ultra-conservative evangelicals in his party. Rep. Hilton feels he was unfairly tarnished with the “snake handler” label and we apologize.

Beth Jones, chairperson of the Caldwell County Democratic Party is telling people she will seek the state senate seat now held by Jim Jacumin, a Burke County Republican. Some sources have quoted Jacumin as saying he will not run for re-election. Ms. Jones, a veterinarian, was in Raleigh last week visiting legislators and openly discussing her plans for a campaign.

HARBISON SEEKS POST: Joel Harbison of Alexander County is among the House nominees for a seat on the UNC Board of Governors. Harbison is an active Democratic party member and close friend of Rep. Ray Warren. He was in Raleigh two weeks ago and attended the popular St. Patrick’s Day party for legislators and politicos hosted by veteran lobbyist Zeb Alley.

COOPER 41, BURR 38: A recent poll by the Public Policy Council among 700 registered voters has Attorney General Roy Cooper defeating incumbent U.S. Senator Richard Burr in a head-to-head race. The poll results are especially interesting in a state that moved into the blue column last year after a generation (i.e. Jimmy Carter). Burr is a Republican finishing his first term next year. Moore, a former state senator, falls into the “blue dog” category of conservative Democrats.

SNAKES ALIVE: The ultra-right of the Republican Party, sometimes referred to as snakehandlers, were burning the email lists to legislators last week. They are fired up over the “Healthy Youth Act” which gives parents the right to choose how their children are given sex education. Snakehandlers prefer—demand—that abstinence only be taught in high schools. Count Rep. Mark Hilton as a spokesperson in this corner.

Hilton and his ultra-right supporters also are stirred up over a school bullying bill that would add sexual orientation to the list of offenses in school bullying, including race, religion, ethnic background, physical appearances. To Hilton and his ilk, sexual orientation is equated to gay, a firestorm word.

BLUE LAWS: Bills filed in the current session of the General Assembly would almost eliminate the so-called Blue Laws controlling activities on any Sunday. House bills would permit hunting on the Sabbath and allow ABC stores to operate on Sunday. They have not gone to committees for consideration.

SCHOOL CONSOLIDATIONS: Powerful Sen. Tony Rand has filed a bill that would mandate that the state provide funds for one school system in each county. Rand, a Democrat and majority leader, said the action would have the state $11.4 million a year. He argued in the Education Committee last week that given the financial climate, it is time to take the step to save money. His bill does not require mergers of systems, but local funds would have to support more than one system in a county.

Sen. Martin Nesbitt, a populist Democrat from Buncombe County, opposed the concept, noting that Asheville and some other districts have taxing authority. Bumcombe county voters are not inclined to support schools at the same level Asheville voters do, he argued. No committee vote was taken last week. If the bill passes the legislature, 15 school districts would not receive state funds, including two in Catawba County.

STIMULATING TALK: Several prominent citizens in eastern Catawba County are talking about recruiting federal stimulus funds to complete Highway 16 improvements between Newton and Charlotte. The push would involve discussions with Dempsey Benton, who heads up Gov. Perdue’s Federal Stimulus oversight office, and Transportation Secretary Gene Conti. The Catawba County citizens include Democrats and Republicans. Observers expect that Gov. Perdue will make the final call on major stimulus projects.

Joe Crocker, a popular banker in Hickory during the 1980s, has been appointed Assistant Secretary of Commerce by Secretary Keith Crisco. Among his areas of responsibility is Community Development which includes the Main Street program. As a Hickory resident for almost 10 years, Crocker served on boards for the Chamber of Commerce, the Hickory Human Relations Council and was the first African American member of the Hickory Rotary Club. His wife, Carol, was a member of the Hickory Choral Society.

PERDUE’S BUDGET: Gov. Beverly Perdue sent a $21.2 billion budget to the Legislature Tuesday. There were a few surprises, including a $1.00 per pack cigarette tax increase and 5 percent tax increase on alcohol products. The general response of legislators: it’s a good starting point. The proposed new taxes and a “truth in budgeting” provision that would freeze spending for any personnel vacancies got a cool reception, especially among House members. Sen. Linda Garrou, the senior appropriations chair, is known to oppose a tobacco tax. Democratic House members from Eastern North Carolina have said they would be doomed by a tobacco tax.

If budget writers reject the tax increases and the “truth in budgeting” provisions, they will have to find $658 million in additional cuts in expenses. If they reject the closing of seven correctional centers as proposed by the governor, the budget hole goes up to three quarters of a billion dollars. The cigarette tax would generate $350.2 million and the alcohol tax another $157 million. In the meantime, revenues from personal income taxes and sales taxes continue to spiral downward.

Some state employees are grumbling over the removal of longevity pay while others are saying they are thankful to have a job. The recession has pushed unemployment in the Triangle area to 8.8 percent which is a shock to residents of the Raleigh-Durham region. But compared to the 14 percent unemployment in the Hickory Metro—the highest in the state—the Triangle figures look good. Because the Hosiery Technology Center has played a leading role in preserving some 10,000 jobs in the state, Gov. Perdue left the center’s appropriation untouched.

UNC HICKORY STILL PUSHED: The concept of a state university campus in Hickory continues to circulate. The most recent discussion reportedly came from Dee Blackwell, director of the Western Piedmont Council of Governments. In his argument, Blackwell touts a Hickory campus as a branch of Appalachian State University, with dormitories, campus buildings and administrative complexes. Blackwell reportedly told Hickory legislators that such a development could pour $150 million a year into the Hickory area economy. Lenoir-Rhyne University has opposed another university campus in a city which has been its home for 114 years. With the state facing up to $3 billion budget shortfall, an ASU campus will be a long way off.

CRISCO VISIT: Secretary of Commerce Keith Crisco is coming to the annual Catawba Valley Pottery Festival in Hickory this weekend. Crisco, who lives in Asheboro, is a pottery enthusiast. The famous Seagrove pottery area is in his backyard. Crisco also was a speaker last week at a Legislative Breakfast sponsored by the Hosiery Governmental Affairs Council which is based in Hickory. He is owner of Asheboro Elastics Corp. and supports traditional manufacturing which has been under pressure as a result of globalization.