Why Didn't Perdue Use Cheaper State Plane?
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INSIDE THIS ISSUE: DEPARTMENTS Raleigh North Carolina 2 C A R O L I N A Education 6 regulations Local Government 10 Interview 16 kick food Higher Education 17 trucks to the Books & the Arts 20 Opinion 24 curb/10 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION October 2010 Vol. 19 No. 10 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Why Didn’t Perdue Use Cheaper State Plane? Campaign could have State Elections Board saved money by hasn’t interviewed renting state aircraft donors about flights By Don Carrington By Don Carrington Executive Editor Executive Editor RALEIGH RALEIGH n Dec. 8, 2007, Lt. Gov. Bev hile reports from the State Perdue flew from Horace Wil- Board of Elections and in liams Airport in Chapel Hill to the news media indicate O Manteo, where she The Perdue campaign says it spent $4,243 to use this private Beechcraft King Air to Wthat more than 30 individuals were in- attended a midday go to an event in Manteo in December 2007. (CJ photos by Don Carrington) volved in providing campaign event in- dozens of illegal or volving state Senate the flight, chartered by Morganton available for use by top government improperly reported President Pro Tem businessman Charles “Mike” Fulen- officials, could have been used by the flights for Gov. Bev Marc Basnight. The wider, was paid for by two other Mor- Perdue campaign for $1,500, roughly Perdue and her pre- chartered flight, on a ganton residents — James Fleming and one third the cost of the Hickory-to- decessor, Mike Eas- Beechcraft King Air Ola Caldwell — Manteo flight. ley, only one — Ra- aircraft, originated and was recorded The Dec. 8, leigh businessman Gov. Beverly in Hickory, touched Dec. 10 as an in- 2007, flight was McQueen Campbell down in Chapel Hill, kind contribution not the only occa- — has been ques- Perdue Peter Reichard flew to Manteo, and of $4,243. sion the campaign tioned under oath then retraced its original path. If true, for used a convo- by the State Board of Perdue, who was running for this trip the Per- luted and costly Elections. governor at the time, was on the air- due campaign method to trans- Elections Board Chairman Lar- craft for only 340 of its 640 miles aloft. chose to spend an port Perdue by air ry Leake acknowledged to Carolina Perdue’s campaign committee report- extra $2,700 for a to political events. Journal that the board has questioned ed to the State Board of Elections that flight that, in ad- Indeed, reports only one flight provider under oath dition to being presented to the at a public hearing, and, further, that more costly, was The Morganton barber shop owned by elections board in it has not taken sworn testimony from also more incon- James Fleming, who, according to the June and August any campaign workers about the ques- venient and less Perdue campaign, paid the bulk of the cost indicated several tionable flights. Leake, a Mars Hill at- for the December 2007 flight to Manteo. efficient. dozen flights that torney, has served on the board for 18 For, while were arranged by years, the past 14 as chairman. PAID Perdue was using the private plane to donors — many of whom do not reg- He did not explain the board’s RALEIGH, NC U.S. POSTAGE get her to Manteo that day, an identical ularly provide air charter services — apparent lack of interest to date in the PERMIT NO. 1766 NONPROFIT ORG. Beechcraft King Air, managed by the when under a more efficient and trans- individuals who provided the ques- state Department of Commerce, and parent system, the campaign would tionable flights and the campaign staff kept at Raleigh-Durham International members who arranged them. Airport, sat unused. The state plane, Continued as “Why,“ Page 14 In October 2009, the board fined the Easley campaign $60,000 for the free flights from Campbell and an ad- ditional $40,000 for the cost of the pub- lic hearings. Other providers of free flights identified in a News & Observer story were issued subpoenas, but were not called to testify. Among those subpoenaed but not questioned under oath are: • Rusty Carter, a Wilmington businessman who was fined $100,000 by the board Sept. 29 for paying em- A sign in Morganton promotes businesses owned by Michael Fulenwider, who ar- The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 ranged the Dec. 8, 2007, flight for then-Lt. Gov. Beverly Perdue. Continued as “Many,“ Page 15 PAGE 2 OCTOBER 2010 | CAROLINA JOURNAL North CaroliNa C A R O L I N A Perdue’s Budget Commission Largely Invisible By Karen MCMahan scant information is available on the section of the gover- JOURNAL Contributor nor’s website devoted to the commission. A year and a half Rick Henderson RALEIGH since the commission was formed, the website fails to pro- Managing Editor wo days after taking office in January 2009, Gov. Bev vide reports of its activities or even a list of members, but it Perdue signed Executive Order No. 5, establishing the does link to the executive order establishing the group and Don Carrington North Carolina Budget Reform and Accountability a list of meeting dates with an agenda attached for each. Executive Editor Commission,T charged with making state government more At press time, the site listed the “next meeting” date as efficient and effective. The commission’s goal is to consoli- Wednesday, May 10 (which already has passed), but Caro- David N. Bass, Sara Burrows date and streamline state services and programs to reduce lina Journal has learned that another meeting is expected to Anthony Greco, Mitch Kokai costs and ensure established public goals are being met take place in October. Michael Lowrey without sacrificing core services. The site also includes an online form for individuals to Associate Editors To date, the commission submit ideas for review. has made several recommenda- After several unsuccess- Jana Benscoter, Kristen Blair tions adopted by the General As- ful attempts to reach BRAC’s Roy Cordato, Becki Gray Paige Holland Hamp, Sam A. Hieb sembly that should save millions co-chairs, Tolson and Pinnix- Lindalyn Kakadelis George Leef of tax dollars over time. But it’s Raglund, CJ contacted Mark Karen McMahan, Donna Martinez been difficult for the public to Johnson, a spokesman for Per- Karen Palasek, Lee Raynor learn much about the commis- due. “BRAC’s reports and rec- Marc Rotterman, Michael Sanera sion’s work. And with the state ommendations have resulted Jim Stegall, George Stephens facing multibillion-dollar defi- in significant legislation,” said Jeff Taylor, Michael Walden cits for years to come, critics say Johnson, citing as examples the Karen Welsh, Hal Young BRAC must get much more ag- state’s reform of the Alcoholic John Calvin Young gressive if it is to live up to the Beverage Control system, its sale Contributors goals Perdue articulated initially. of underused state aircraft, the A budget reform commis- elimination of the special project Olivia Coward, Ian Davis, sion is not a new idea. The state Gov. Bev Perdue with BRAC co-chairs Norris Tolson required for high school seniors Adrienne Dunn, Alex Gill has had several dating back to to graduate, and changes in state Steven Holden, Beth Kinkaid, and Hilda Pinnix-Ragland at an August 2009 meeting 1973. Former Gov. Mike Easley procurement and contract rules Cameron Lambe, Sara Riggins of the commission. (Governor’s Office photo) Will Schultz, Kellie Slappey formed a similar group in 2002. to promote greater transparency Amanda Vuke Yet despite budget reforms, state government employment and competition. Editorial Interns in North Carolina from 2003-08 rose at a non-seasonally ad- Gerlach shed light on BRAC’s recommendations for justed rate of 13.2 percent, and the state’s debt more than reforms in North Carolina’s Department of Health and Hu- Published by doubled during Easley’s eight years as governor. man Services. Gerlach said BRAC recommended the state The John Locke Foundation invest in new technologies to detect fraud and abuse in 200 W. Morgan St., # 200 Fees used as a backstop Medicaid, which has long been one of the fastest growing Raleigh, N.C. 27601 Since Perdue became governor, rather than making parts of the state budget, and estimated savings of $37 mil- (919) 828-3876 • Fax: 821-5117 lion in the first year. Although House Bill 190, the legislation structural cuts to the budget, the General Asembly has used www.JohnLocke.org incorporating these recommendations, died in committee, more than $1 billion in federal stimulus funds; hiked sales, the fraud and abuse software provisions were adopted by corporate, and income taxes by $1 billion; and introduced a Jon Ham the General Assembly in the 2009-10 budget and are expect- host of new fees and raised existing fees to close its 2009-10 Vice President & Publisher ed to generate recurring cost savings. budget shortfall. Gerlach said the General Assembly also adopted John Hood With lawmakers saying the state faces a $3 billion bud- BRAC’s recommendation to cut overall Medicaid expen- Chairman & President get shortfall next year, North Carolinians may feel justified ditures by expanding care management services to include if they’re experiencing a sense of déjà vu. Bruce Babcock, Herb Berkowitz palliative care, which reduces the severity of symptoms of With the exception of the state budget director and chronic diseases and avoids costlier emergency care. Charlie Carter, Jim Fulghum governor’s policy director, who serve as non-voting ex-of- Chuck Fuller, Bill Graham Three other recommendations from BRAC were con- ficio members, Perdue appoints BRAC’s members from the sidered key issues for the short session of the General As- Robert Luddy, Assad Meymandi business community, government, and academia.