News from this week's NewsBreak! > November 3, 2010

CAGC "NEXT DAY" ELECTION ANALYSIS - North Carolina | South Carolina

Republicans Make Historic Gains in NC: In good news for the construction industry and the state's business climate, Republicans in Tuesday's elections seized control of both chambers of the NC General Assembly, ensuring a GOP-leaning landscape for the next decade with next year's drawing of the districts for the Legislature and Congress.

The GOP wins - including control of the U.S. House and solid re-election of U.S. Sen. Richard Burr, R-NC - will bode well for key construction issues including opposition to unions, more practical environmental laws, competitive bidding on public work, streamlining government and cutting spending. Still, with the state facing next year a $3.5 billion shortfall because of the slumping economy, Carolinas AGC will continue its emphasis to lawmakers on the importance of providing infrastructure funding for building, highway and utility work -- and creating jobs.

According to unofficial reports, Republicans swept out several longtime Democratic incumbents on the way to their first two-chamber majority in more than a century. Unofficial election results showed Republicans likely holding at least a 30-20 majority in the Senate, with one race too close to call. In the House, the GOP looked as if it would capture at least 64 of 120 seats, with four other close races that could increase their advantage. Another House seat was claimed by a conservative unaffiliated candidate, Bert Jones, who beat longtime Democratic incumbent Rep. Nelson Cole of Rockingham County, a strong supporter of the construction industry.

"This time, we caught a wave," said Sen. Tom Apodaca, R-Henderson, at a Republican victory celebration last night at a Raleigh hotel.

The Republican landslide will result in big changes after the Legislature convenes its long session on Jan. 26, 2011. It also will mark the end of the reign of one of the most powerful politicians in state history, Senate leader Marc Basnight. Basnight, D-Dare, was reflective about his party's losses. "America has rarely, rarely seen this level of dissatisfaction. It was on the news every night, and the blame was spread mainly among Democrats," Basnight said.

About 10:15 p.m., Basnight and current Senate Minority Leader Phil Berger -- now the favorite to become Senate president pro tem -- spoke by phone as the election results made clear that a GOP majority was certain. The two men praised each other for their civility and hard work.

Big Changes Likely in Political Dynamics: Berger, R-Rockingham, said he hoped to work with Democrats to address the state's problems, even while acknowledging that Republicans had very different notions about governing. "There are a lot of challenges we've got in front of us," Berger said. Rep. Thom Tillis, R-Mecklenburg, a Republican House whip and one of the frontrunners to replace Joe Hackney as House speaker, credited the Republican success to good candidates and a strong fundraising effort by dozens of GOP legislators. "I had no earthly idea (in 2008) that we would have the result we're on the brink of today," Tillis said.

The GOP victory will move backbenchers into major players. It also will change the relationship between Democratic Gov. Bev Perdue and the Legislature. Even colleges and universities will have to rethink their strategies.

Other Races and Upsets: Besides Cole, the GOP tide swept House Majority Leader Hugh Holliman of Davidson County, eight-term Democratic Rep. Doug Yongue of Scotland County and five-term Democratic Sen. A.B. Swindell of Nash County from office, all strong supporters of construction. Other House Democratic incumbents to lose seats were Reps. Cullie Tarleton of Watauga County, Alice Underhill of Craven County, Arthur Williams of Beaufort County, Chris Heagarty of Wake County and Van Braxton of Lenoir County. In the Senate, defeated Democratic incumbents included Joe Sam Queen of Haywood County, Steve Goss of Watauga County, Margaret Dickson of Cumberland County, Don Davis of Greene County and Tony Foriest of Alamance County. In Senate District 50, Democratic Sen. John Snow held a 195-vote advantage over Republican Jim Davis in a race that appeared headed for a recount.

In the House, unofficial results put two Cumberland County Democratic incumbents ahead but by margins likely to lead to recounts. Democratic Rep. Rick Glazier led Republican Jackie Warner by 24 votes, and Democratic Rep. Diane Parfitt led Johnny Dawkins by 70 votes. Unofficial results also put Democratic Rep. Marian McLawhorn of Pitt County ahead of Republican Stan Larson by 229 votes, while Democratic Rep. Lorene Coates of Rowan County trailed Republican Harry Warren by 169 votes. Democrats picked up no seats held by Republicans. In the House, they lost a race for an open seat in Mecklenburg County that had been a Democratic target, as Republican Bill Brawley beat Democrat Ann Newman.

Basnight Plans: Basnight, the Senate leader who faces health issues, said last night that he will not seek the job of minority leader in the Senate, but will complete his latest term before retiring from the Senate. "I'll serve out two years and go home," said Basnight, who has served 18 years as president pro tem of the Senate. "I'll just be one of 50." Basnight acknowledged that he didn't foresee Republicans winning the number of Senate seats that they took, believing Democrats wouldn't drop below 24 seats in the chamber. But he recalled beginning in the Senate in 1985 as a rank-and-file member. "It's the way I started. It's not a bad way to end," Basnight said.

From a construction standpoint, Basnight has been a legislative kingpin concerning favoring the UNC system, including a key leader of a $3.1 billion university and community college bond referendum approved by voters in 2000 and now nearly all spent, as well as shaping environmental laws, budgets and taxes.

Looking to the Future: House Speaker Joe Hackney of Chapel Hill declined to comment on whether he planned to stand for minority leader in the House. According to news accounts, he said he didn't think his party's reversal had anything to do with a particular policy or vote in his two terms as speaker. "It was just a wave," Hackney said. "I was here for the national Republican wave in 1994, and this is like that."

Rep. Paul Stam, R-Wake, and the current House Minority Leader, and Thom Tillis of Cornelius are expected to be the Republican contenders to hold the speaker's gavel.

Burr Defeats Marshall: U.S. Sen. Richard Burr fended off a challenge by Democrat Elaine Marshall on Tuesday, winning nearly 55 percent of the vote. Marshall won almost 43 percent of the vote, while Libertarian Michael Beitler had 2 percent, according to unofficial returns. Burr, who has served one term in the U.S. Senate after a decade in the U.S. House, had portrayed himself as an agent of change after two years of Democratic control of federal government. His message particularly focused on fiscal discipline, acknowledging past Republican mistakes of intense government spending but blaming Democrats for escalating the excess with President Barack Obama in charge. "The result of this election shows that North Carolinians expect Congress to find reasonable and rational solutions to build a better future," Burr said after The Associated Press declared him the winner. "I am ready to lead in the effort to make sure the next generation has every opportunity possible to be successful."

U.S. House Races: North Carolina's incumbent U.S. House members fared well in staving off challengers Tuesday, with only U.S. Rep. Bob Etheridge appearing to lose his seat. Republican Renee Ellmers, a career nurse who became a tea party favorite, ousted Etheridge, winning the 2nd District seat covering areas south and east of Raleigh, according to unofficial returns.

Other Democrats facing tough Republican challenges held their ground Tuesday. U.S Rep. Heath Shuler in the 11th District defeated Hendersonville businessman Jeff Miller. Larry Kissell in the 8th District won in his re-election bid against former Charlotte sportscaster Harold Johnson. And U.S. Rep. Mike McIntyre defeated Ilario Pantano, a former Marine, in the 7th District. "Celebrate guys. Celebrate!" Kissell told supporters in Concord. Shuler, who has said the House needs a more moderate leader, called his own victory "bittersweet" because of the trend in favor of Republicans. Democratic U.S. Reps. Brad Miller, G.K. Butterfield, Mel Watt, and David Price also fended off challengers, winning by 10-point margins or more. Republican U.S. Reps. Sue Myrick, Patrick McHenry, Walter Jones, Virginia Foxx and Howard Coble also easily defeated their opponents Tuesday.

Judicial Races: Incumbents won or led four contested races Tuesday for seats on the state Court of Appeals, while the sole opening for the state Supreme Court remained too close to call. With 98 percent of the precincts reporting, Barbara Jackson of Raleigh had 2 percent of the vote compared to 48 percent for Bob Hunter of Marion in the race for an eight-year term on the Supreme Court. Hunter and Jackson are both Court of Appeals judges seeking to succeed retiring Associate Justice Ed Brady.

In Court of Appeals races, Judge Martha Geer won a second eight-year term on the state's intermediate appeals court, receiving almost 60 percent of the vote compared to 40 percent for Dean Poirier, with most of the precincts reporting unofficial results. Unofficial results showed Judge Ann Marie Calabria defeating Wake County District Court Judge Jane Gray, 54 percent to 46 percent, for a second term on the court, while Judge Rick Elmore won re-election with 53 percent of the vote compared to 47 percent for challenger Steven Walker, a law clerk for Brady.

Don't forget to get behind and support the winners of all of these races; supporting your NC PAC is a great way to support pro-construction candidates.

Election Results: Folks were looking for change and they got it in the General Election on Tuesday. Nikki Haley becomes the first female Governor in South Carolina's history and Tim Scott becomes the first African-American Republican elected to the U.S. Congress since Restructuring. Voters turned out in record numbers to support the secret ballot question, they approved a $450 million bond referendum for school construction in Charleston, and are sending four new folks to Washington. Except for the defeat of the penny sales tax for road construction in Richland County, the construction industry supporters and issues came out on top Tuesday.

The winners in the races for Constitutional Offices, SC House of Representative seats, and SC Congressional Delegation members, are highlighted below along with additional information on key Congressional races and bond referendums that will impact the industry.

Candidate Parties are abbreviated as follows: Democrat (D); Republican (R); Green (G); Libertarian (L); Working Families (WF); Labor (Labor); Constitution (C); United Citizens (UC); and Independence (I).

2010 General Election Results for South Carolina: (winners in yellow)

Constitutional Officers

SC House of Representatives

** Results still pending in District 115; leaning toward shown candidate

SC Congressional Officers

Constitutional Amendment 2: South Carolinians overwhelmingly approved Constitutional Amendment 2 on Tuesday's ballot. The question received over 1,000,000 favorable votes with an 86% to 14% margin and sends a message to Washington that South Carolina is very much in favor of remaining a right to work state. The approval of amendment 2 gives employees the constitutional right to vote by secret ballot when they are voting on whether to be represented by a labor union. By voting to maintain this right, South Carolina takes a proactive step in fighting against the implementation of the Employee Free Choice, in our state, should it pass on the federal level.

Construction Sales Tax Referendums on Tuesday's Ballot: There were two significant penny sales tax referendums on Tuesday's ballot, both of which would mean work for the construction industry; one for buildings and one for roads. In Charleston, voters agreed to invest $450 million over the next six years to rebuild or repair 18 school buildings. Despite the grim economy, the penny sales tax referendum in Charleston passed 64% to 34%. However, in Richland County the penny sales tax increase was not as successful. Several media outlets are still reporting it too close to call, at time of this report, but the numbers as last reported are: 56,375 or 49.1% Yes and 58,543 or 50.9% No.  The passage of the this increase would have resulted in more than a billion dollars worth of major road, bike and pedestrian greenway projects, plus provided long-term sustainable funding for the bus service and transportation services for the community's disabled.

New Faces in Washington: South Carolina voters will be sending four new faces to Washington after Tuesday's election. Rep. Jeff Duncan, U.S. House District 3, Rep. Tim Scott, U.S. House District 1, Trey Gowdy, U.S. House District 4, and Sen. Mick Mulvaney with the upset defeat over 28 year incumbent and US House Budget Committee Chairman John Spratt in U.S. House District 5. AGC of America, through their PAC, financially supported all four of these candidates. AGCA and CAGC look forward to working with all of them as they head to Washington to support pro-construction issues.

Don't forget to get behind and support the winners of all of these races; supporting your SC PAC is a great way to support pro-construction candidates.