NewsBreak! Articles > January 07, 2009

LEGISLATIVE UPDATE

North Carolina

$742 Million Approved for Expedited Construction: The state's top elected officials on Tuesday approved an expedited schedule to sell $742 million in bonds for university buildings, prisons, museums and a polar bear exhibit at the N.C. Zoo. The legislature approved the projects last summer but progress has been slowed because of the state’s slumping economy.
The Council of State, composed of the governor and other elected executive branch officials, voted to speed up the bond sales in hopes that the construction will generate badly needed new jobs. The construction program could create more than 20,000 North Carolina jobs and pump millions of dollars into the economy.
 "It has a huge ripple effect," Gov. Mike Easley, a Democrat, told the council. He initially proposed the accelerated sale in November. "Thirty days (sooner) makes a whole lot of difference if you're out of a job," he said.
Still, only $65 million of the new debt will be issued this spring. About $258 million in bonds likely will be sold in the fall and the rest in succeeding years. Easley said the plan allows the state to raise a large amount of money and start construction while not having to start paying down the debt until the end of 2009 when the economy likely will be recovering.
The projects include money for the planned Energy Production Infrastructure Center at UNC Charlotte, which will train engineers to build and run energy plants, particularly nuclear reactors. The council also approved an additional $107 million bond sale for the Green Square project in downtown Raleigh, which includes an expansion of the N.C. Museum of Natural Sciences and a new office building for the Department of Environment and Natural Resources.

The projects are:
* $45.2 million -- Department of Correction: Women's Health and Mental Health Facility
* $13.1 million -- Department of Correction: Minimum Security Addition, Scotland County
* $19.9 million -- Department of Correction: Medium Security Addition, Bertie County
* $13.1 million -- Department of Correction: Minimum Security Addition, Tabor City
* $19.9 million -- Department of Correction: Medium Security Addition, Lanesboro
* $2.9 million -- Department of Cultural Resources: CSS Neuse Phase I (20,000 sq. ft. bldg.)
* $2 million -- State Ports: Port-wide Berth Structure Construction, Morehead City
* $5 million -- State Ports: Berth 8 Replacement Phase I, Wilmington
* $3.7 million -- Department of Agriculture: Southeastern NC Agricultural Center Pavilion
* $650,000 -- Department of Agriculture: Truck Shed & Restroom Expansion, WNC Farmer's Market
* $7.5 million -- Department of Agriculture: Davis Arena Renovation & Expansion WNC Ag. Center
* $4.3 million -- Department of Environment and Natural Resources: Research Oyster Hatchery
* $10 million -- Department of Environment and Natural Resources: Land for Tomorrow Funds
* $2.7 million -- Department of Environment and Natural Resources: Zoo Polar Bear Addition and Renovation
* $107 million -- Department of Environment and Natural Resources: Green Square Complex
* $69 million -- East Carolina University: School of Dentistry
* $36.8 million -- East Carolina University: Family Medicine and Geriatric Center
* $18 million -- Elizabeth City State University: School of Education Building
* $2.4 million -- A&T State University: Horse Barns, Upper Piedmont Research Station
* $20.5 million -- A&T State University: General Classroom Instructional Facility
* $24.5 million -- N.C. Central University: School of Nursing Building
* $11.1 million -- UNC School of the Arts: Central Storage Facility
* $12.9 million -- UNC School of the Arts: Film School Production Design Facility
* $109.1 million -- N.C. State University: Centennial Campus Library
* $4 million -- N.C. State University: 4-H Campus Improvements
* $69 million -- UNC Chapel Hill: School of Dentistry Addition
* $57.2 million -- UNC Charlotte: Energy Production Infrastructure Center
* $42.7 million -- UNC Greensboro: Academic Classroom and Office Building
* $10 million -- UNC General Administration Land Acquisition

State Cabinet Positions Announced: Gov.-elect Beverly Perdue on Monday announced three more members of her Cabinet, naming state secretaries of transportation, commerce and cultural resources. Perdue named Gene Conti the head the state Department of Transportation, a move supported by Carolinas AGC. "Under his leadership, we'll have a department that makes decisions more efficiently and more professionally," Perdue said.

In addition, Perdue named Asheboro elastic company executive and city councilman Keith Crisco as the next commerce secretary. Former business owner Linda Carlisle of Greensboro will lead the Department of Cultural Resources.

Meantime, Conti sat in the No. 2 spot at the state Department of Transportation (DOT) from 2001 to 2003. While an assistant U.S. transportation secretary for three years, Conti helped implement a presidential order designed to promote mobility and reduce pollution in the Washington area. "It's far too early for promises (but) I want to assure the people of North Carolina that we will be open and honest at DOT," Conti said at a news conference.

Perdue, a Democrat, repeated on Monday that she would change the state Board of Transportation once she took office, seeking to shift it to a more strategic policy panel and away from approving road-building contracts. The 19 board members are appointed by the governor. "The DOT board members are out of the transportation projects business," Perdue said. Such a change in state law would require help from legislators.

Senate leader Marc Basnight, D-Dare, had suggested that one of Perdue's fundraisers, current Board of Transportation member Lanny Wilson of Wilmington, was qualified for the secretary's job. While Conti has political connections -- campaign reports show he gave $2,200 to Perdue's campaign since 2007 and he managed Erskine Bowles' unsuccessful 2004 U.S. Senate campaign -- some outsiders said Conti's hiring puts a knowledgeable administrator in charge. "We're pretty enthusiastic about it," said Marc Finlayson, co-chair of NC GO!, a coalition of local governments and road-building trade groups, including CAGC.
 
Crisco, president and chairman of Asheboro Elastics Corp. since 1996, will be the state's chief business recruiting official. A former White House fellow during the Nixon administration, Crisco said he supported the use of incentives to attract new companies to set up shop in North Carolina. Carlisle, a former member of the North Carolina Education Lottery Commission, said she would work hard to also make the Department of Cultural Resources an avenue to create jobs and improve the "North Carolina brand."

Perdue, the outgoing Democratic lieutenant governor, has now named six of the 10 Cabinet-level appointments. Her inauguration will be Saturday. She succeeds outgoing Gov. Easley, who was barred by law from seeking a third consecutive term.

Recession Strategy Outlined: The recession offers the opportunity to shake up state institutions, Gov.-elect Perdue said Monday. "We find ourselves, quite frankly, at a bad time," Perdue said at an economic forecasting forum sponsored by two influential trade groups. "I will be the leader this state needs to not only weather this economic storm, but to make it work for us -- to use this time of crisis to position North Carolina for the future."

Perdue said she was using as her model North Carolina's Depression-era Gov. O. Max Gardner, whose held office ran from 1929 to 1933. Gardner cut local property taxes, led the state takeover of financial responsibility for roads and schools from counties, and consolidated state colleges into the University of North Carolina system.
 
Perdue’s inauguration on Saturday will come at a time when she said fear about the future is comparable to no time since the Depression. With the state's population still growing, 359,000 people are unemployed -- the highest number in state history. The U.S. officially fell into recession a year ago, and since then, about 145,000 North Carolina residents have lost their jobs.

The state unemployment rate was 7.9 percent in November, the highest in 25 years. Perdue said North Carolina would claim its fair share of any federal stimulus spending, plus a bit more if North Carolina leaders do their jobs well. "We want to claim every federal dollar we can lay our hands on and use efficiently," she said.

DOT Operations: A North Carolina National Guard general will oversee day-to-day operations at the state DOT under Perdue's administration. The governor-elect named Army National Guard Brig. Gen. Jim Trogdon as DOT's new chief operating officer on Monday. Trogdon is director of strategic transportation planning for the General Assembly. Trogdon served in Iraq for a year ending in August 2007 with his engineering unit. Perdue named Dale Carroll as deputy commerce secretary, serving with new secretary Keith Crisco.

Lt. Gov. Staffing: Lt. Gov.-elect Walter Dalton has named top staff for his new office, which will include the departing executive director of the state Democratic Party. Caroline Valand, who has been executive director of the state party since 2007, will be Dalton's chief of staff. Other staff members named on Monday: Kimberly Reynolds, an associate with Nexus Strategies and former legislative analyst, will be deputy chief of staff; Avery Staley, who has worked as a consultant with the Charlotte Chamber of Commerce, will serve as legal counsel; Sara Lang, who has been communications director and then deputy chief of staff for State Treasurer Richard Moore, will be communications director; Cynthia O'Neal, who now runs her own legal practice, will become director of external affairs; and Mike McLaughlin, director of communications and research for the N.C. Advocates for Justice.

South Carolina

SC Could Gain Congressional Seat: Recently released Census projections could see South Carolina gaining a new congressional seat in 2010. Seats in Congress are assigned based on a complex formula designed around an areas population. Currently, the state has six House seats, the same number it has had since 1930. But the state’s recent rapid growth puts it at the top of the list for a seventh seat. 

State Loses Veteran House Member: South Carolina lost a veteran member of the House of Representatives over the holidays, with the death of Rep. Olin Phillips of Cherokee County. Phillips celebrated his 74th birthday Christmas Day and died of a heart attack at his home in Gaffney two days later.

A veteran Democrat, Phillips has represented District 30 in the House since 1979 and was a prominent member of the House Labor Commerce and Industry Committee. A special election will be held to fill Phillips' two-year term, which would have begun this month. Filing for the seat takes place from Jan16 to 26 with a primary held March 10 if necessary and the special election April 28.

Peterson Hutto Sworn In: Rep. Anne Peterson Hutto was sworn last week as the newly elected member of the House District 115. Hutto, a Democrat, beat Republican Wallace Scarborough by over 200 votes but Scarborough challenged the validity of the election results.
The state election commission rejected Scarborough’s appeal of the election and certified Hutto the winner. Even though the Secretary of State issued the paperwork, Hutto needed to be sworn in. Scarborough still plans to appeal the commission's decision. This appeal will be made to a House committee that will make a recommendation to the full chamber. All of that is to take place shortly after the legislature reconvenes next week.