NC Policy Watch with Fitzsimon & Schofield » Money Talks

Car rental fees

Chris Fitzsimon — Fri, 04 Aug 2006 13:04:32 +0000

According to a report in THE INSIDER, the state has been paying extraordiary car rental fees for State Board of Education Chairman Howard Lee. For the past two years, the state has been paying between $1,503 to $1,693 a month in car rental expenses. Chairman Lee is not a regular state employee, consequently, he does not qualify for the use of a state-owned car.

Chairman Lee must travel extensively through the state to carry out his duties so it is reasonable for the state to reimburse his car expenses. Surely the state can find a more cost effective solution.

N.C. Congressional delegation includes at least 4 millionaires

Chris Fitzsimon — Fri, 16 Jun 2006 09:29:31 +0000

The Associated Press WASHINGTON -

At least four of the 15 federal lawmakers who represent North Carolina are millionaires, according to the latest financial disclosure forms released by lawmakers.

Republican Rep. Charles Taylor is the wealthiest lawmaker from the state and one of the richest in Congress with an estimated worth of at least $50 million. Most of his assets are in a family holding company that owns the Blue Ridge Savings Bank in Asheville.

Republican Rep. Robin Hayes, whose grandfather was Cannon Mills founder Charles Cannon, declared his estimated worth at more than $25 million.

Republican Sen. Elizabeth Dole has estimated assets of $13 million or more, and Republican Rep. Virginia Foxx has holdings of at least $2.91 million. (more…)

Repealing estate tax will benefit super-wealthy

Chris Fitzsimon — Mon, 12 Jun 2006 10:02:01 +0000

The Herald-Sun has finally covered the Republican Senate effort to repeal the estate tax, but is ignoring investigative reporting opportunities. Our two Senators are supporting repeal — have you asked them why? Perhaps Sen. Richard Burr could identify a North Carolina family that had to sell its farm to cover its estate tax liability, even though the pro-repeal American Farm Bureau couldn’t find one single instance back in 2001 (since then the amount exempted from the tax has been raised dramatically). Perhaps Sen. Elizabeth Dole can identify small businesses that have been hurt. You could interview them to see why the $2 million exemption was inadequate. Perhaps our good senators are friends with (of course they are!) North Carolinians who are among the tiny one-quarter of 1 percent of the entire U.S. population whose wealth is so great they would owe any estate taxes. You could interview some of these families so the public could be appraised of the devastating impacts the estate tax would have upon their family wealth. Finally, perhaps our senators could get an interview with one of the 18 U.S. families that stand to gain $71.6 billion (yes, "billion") if repeal passe. I would hope your reporter would also ask about the amount of campaign contributions our senators have received from these families and the families’ political action committees.

W. DAVID AUSTIN
Durham
June 11, 2006

(Click here for the Durham Herald-Sun opinion page)

Money, talking

Chris Fitzsimon — Wed, 10 May 2006 09:02:32 +0000

Money, talking
Big money rules the day on Jones Street, and that’s not good for the credibility of Democratic legislative leaders Here is what the owner of electrolysis businesses said of her attempts to get North Carolina lawmakers’ attention on a regulatory bill pertaining to her industry: "It takes money to get legislation passed." And there was this from Dana Cope, head of an association representing state employees, about raising money for his group’s political action committee: "It’s become acutely aware to us in the last five years that those top 10 PACs are the ones that get whatever they like. That’s the system that we have."

If world champeen political fund-raisers Marc Basnight and Jim Black aren’t embarrassed and a little ashamed by those comments, they ought to be. Basnight, president pro tem of the state Senate from Manteo, has ruled the majority Democratic roost in his chamber for 13-plus years. A not-insignificant fact in his tenure is that he’s doled out hundreds of thousands of dollars in campaign contributions through his party to Democrats whom he likes, and those who like him — and will keep him in power.

The same is true for Black, now in his eighth year as House speaker. In 2004, for instance, he gave $650,000 that he raised to the Democratic Party, which passed it on to candidates who, when elected, obviously were beholden to the speaker and could be counted upon to keep him in his leadership post. And Black will hold on to his position even though he figures in multiple investigations related to campaign fund-raising and the passage of the state lottery. (more…)

527 Committee Activities

Chris Fitzsimon — Fri, 28 Apr 2006 17:14:28 +0000

"Protection" Money

Remember Rep. Richard Morgans 527 Committee, the so-called "N.C. Republican Mainstreet Committee" (NCRMC), which ran all those radio ads for him two years ago? It spent over $230,000! Morgan bragged that it was his "Morgan Protection Plan."

The NCRMC had only 46 donors. Thirty were from the alcoholic beverage industry, including Jim Beam, and the Distilled Spirits Council.

Anheuser-Busch brewery gave $25,000. In return, Morgan backed the alcoholic beverage industry’s "Pop the Cap" campaign to raise the limit on alcohol content of beer. Last year the legislature passed House Bill 392, which increased the alcohol limit for beer from 6 percent to 15 percent, with no corresponding increase in the tax on it.

The largest single donor was a small Virginia tobacco company called S&M brands, which gave $100,000. S&M isn’t a party to the 1998 tobacco Master Settlement Agreement, so they had a competitive advantage over big North Carolina tobacco companies that pay into the "Golden Leaf" tobacco settlement fund an advantage they wanted to keep.

So, in return for S&M’s $100,000 donation, Morgan killed House Bill 1100, which had overwhelming support, but which would have leveled the playing field and ended S&M’s competitive advantage. (more…)

Moore’s fundraising fuels buzz

Chris Fitzsimon — Mon, 17 Apr 2006 10:15:23 +0000

Rob Christensen and David Raynor, Staff Writers

Two years before the 2008 primaries for governor, the biggest buzz has been about state Treasurer Richard Moore’s emergence as the leading fundraiser.

Much of Moore’s money — 42 percent — has been raised out of state. A large part of it has come from companies hired by the treasurer’s office to help invest the state’s $65 billion portfolio.

Moore raised at least $108,000 in 2005 from financial companies on Wall Street and elsewhere that do business with the treasurer’s office. He received contributions from executives with such companies as Wellington Management and State Street Corp. of Boston, Ariel Capital Management of Chicago, the Quellos Group of Seattle and Raymond James & Associates of Tampa, Fla. All have a role in managing the state pension fund.

Robert Johnson, the founder of Black Entertainment Television and owner of the NBA’s Carolina Bobcats, raised at least $23,000 for Moore in September. Johnson’s company, RLJ Development, is branching out to money management. The company was hired in March 2005 by the treasurer’s office and now manages $325 million of the state pension fund.

In October, Moore was in San Francisco for a fundraiser hosted by Douglas Shorenstein, chairman and CEO of Shorenstein Properties. Shorenstein executives gave $18,000 to Moore’s campaign. The previous year, Shorenstein’s firm was hired to manage $260 million of the pension fund.

Moore, in a statement, noted that The Wall Street Journal said North Carolina had the second-best-funded pension fund in the country, trailing only Florida. (more…)

Jim Black’s largest contributors for 2005

Chris Fitzsimon — Wed, 08 Mar 2006 17:01:33 +0000

Jim Black’s largest contributors for 2005
* indicates additional family members contributed.
Some contributors gave more than the allowed limit of $4,000, so a refund was issued in January 2006.

First	Last	Company	Amount	Refunded
John Wm.	Harris	President-Lincoln Harris Corp. Serv.	$8,000	($4,000)
		Wachovia NC Employees Good Govt Fund	$8,000	($4,000)
Thomas	Belk*	Chairman-Belk Store Services	$6,000	($2,000)
Gene	Minton	Pharmacist- Minton Drug Co.	$6,000	($2,000)
		NC Realtors PAC	$6,000	($2,000)
		RJR PAC	$6,000	($2,000)
William	Mast	Owner/Mast Drug Co.	$5,000	($1,000)
		NC Farm Bureau PAC	$5,000	($1,000)
James	Black, III	SVP-Wachovia Wealth Mgmt	$4,500	($500)
Randolph	Cloud	Lobbyist/Cloud & Associates (Healthcare)	$4,500	($500)
Michael	Estramonte	Chiropractor	$4,250	($250)
John	Arrowood	Attorney-James, McElroy & Diehl	$4,000
Jewell	Barry	Child Advocate	$4,000
Addison	Bell	CEO-Carotex	$4,000
Howard	Bissell*	Real Estate Developer-The Bissell Companies	$4,000
Sarah	Bissell*	Owner-The Bissell Companies	$4,000
Robert	Bizzell	Pharmacist-Realo Discount Drugs	$4,000	($4,000)
Clifford	Britt	Attorney-Comerford & Britt	$4,000
Paul	Butler, Jr.	Developer, NC SE Partnership	$4,000
Russell	Cobb, Jr.	Chiropractor	$4,000
		Drive Political Fund	$4,000
Malcom	Everett	Retired	$4,000
Seddon	Goode, Jr.	President- University Research Park	$4,000
J. Dent	Goodyear	Retired	$4,000
James	Hance, Jr.	Vice Chair- Bank of America	$4,000
Dee Dee	Harris	Insurance- Cameron Harris Ins.	$4,000
James	Hill, Jr.	Attorney-Self Employed	$4,000
Margaret	Hynes	Homemaker	$4,000
Marsha	Davis Jones	Exec Dir. - Autism Society of NC	$4,000
Fletcher	Keith	Chiropractor	$4,000
Stuart	Legrand	Retired	$4,000
		Lorrillard Tobacoo Co.	$4,000
Fred G.	Mills*	Corp. Sec. - Mills Construction	$4,000	($500)
		NC Chiropractic PAC	$4,000
Peter	Pappas	President- Pappas Properties-Real Estate	$4,000
Nelson	Schwab, III	Executive, Carousel Capital	$4,000
Kennedy	Thompson	President, Wachovia Corp	$4,000
John	Webster*	Chiropractor	$4,000
Ed	Weisiger, Jr.	CEO, Carolina Tractor	$4,000
Fletcher	Keith	Chiropractor	$4,000
		Carolina Asphalt Assoc -PAC	$3,500
James	Babb	Babb Communications	$3,000
		Blue Cross/Blue Shield of NC	$3,000
Sarah	Belk Grabrell*	Corp Exec. - Belk Group	$3,000
Wallace	Hyde	Retired	$3,000
		NC Association of Nurse Anesthetists	$3,000
		NC Construction Ind. PAC	$3,000
		NC Petroleum Marketers Assn. PAC	$3,000
Patricia	Rodgers	General Contractor/Rodgers Builders	$3,000
Van	Weatherspoon	President, Weatherspoon Group	$3,000
Michael	Almond	President-Charlotte Regional Partnership	$2,500
Derick	Close	President, Spring Industries	$2,500
Albert	Mc Aulay, Jr.	Exec. Search Consultant	$2,500
Marvin	Schrum	Optometrist	$2,500
Robert	Stolz	President, Hardwood Group	$2,500
		Cigar-PAC	$2,000
Norman	Cohen	President Unite Co. Inc	$2,000
Robert	Cordle	Attorney, Mayer Brown & Roww	$2,000
		COREPAC	$2,000
		Davita Inc. PAC	$2,000
		Eastern Band of Cherokee Indians	$2,000
		Economic Development Corp	$2,000
Mark	Erwin	Owner- Erwin Capital Inc	$2,000
Paul	Fogleman, Jr.	President/Inform Inc.	$2,000
Paul	Fulton	Chairman-Bassett Furniture	$2,000
Mary	Hendrick*	Retired	$2,000
Rick	Hendrick*	Chairman-Hendrick Motorsports	$2,000
		JM Family Enterprises PAC	$2,000
		John Deere PAC	$2,000
		Medco Health PAC	$2,000
Rachel	Mills*	Acct. Mills Construction	$2,000
		NC Bank PAC	$2,000
		NC Dental PAC	$2,000
Barrett	Patterson	Self Employed/Insurance	$2,000
		Pepsico Concerned Citizens Fund	$2,000
Donald	Pierce	Self Employed/Pierce Group Benefits	$2,000
		REAP	$2,000
Charles	Shelton*	General Partner/The Shelton Co.	$2,000
R. Edwin	Shelton*	General Partner/The Shelton Co.	$2,000
		Sprint/Nextel Mid Atlantic	$2,000
James	Stovall	Owner, J.E.S. Properties	$2,000
		US Team PAC	$2,000
Victoria	Webster*	Chiropractor	$2,000


Related news stories:
Donations to Black have critics noting a pattern, Greensboro News & Record, Feb. 21, 2006
Money links Black, Charlotte nonprofit groups, Charlotte Observer, Jan. 21, 2006
Highest hurdle ahead for arts?, Charlotte Observer, Feb. 19, 2006
Black shaped pest panel, Raleigh News & Observer, Feb. 5, 2006

Election reform costs a penny a day, advocates say

Chris Fitzsimon — Mon, 27 Feb 2006 10:18:22 +0000

By T. Scott Batchelor, The Daily Reflector

Molly Beacham wore a shiny penny on her lapel Friday.

That’s the amount she said it would cost each North Carolinian per day to fund the campaigns for state elected officials if Democracy North Carolina gets its way.

Beacham and Jeremy Collins with the Carrboro-based nonprofit talked Friday about financing elections with public funds, same-day registration and voting and other measures designed, they said, to increase voter participation and curb corruption and increase accountability.

"We’re here today to talk about money in politics," Beacham said, addressing about 35 people, including state and local elected officials, at the Szechuan Garden restaurant.

Many people, including her, believe money in the electoral process is a problem, she said. "But we often feel like we just have to accept it."

On average, winners in state House races spend about $110,000, often coming from special interest groups whom the representatives are beholden to, she said. State elections are increasingly a "high-stakes game, and we want to talk about alternatives to that game." (more…)

Dems far ahead in race for money

Chris Fitzsimon — Wed, 22 Feb 2006 16:51:03 +0000

N.C. parties gear up for House, Senate elections

JIM MORRILL

jmorrill@charlotteobserver.com

N.C. Campaign Report Search

In politics, money follows power.

That’s why heading into the 2006 election, Democrats in the N.C. General Assembly hold a wide edge over Republicans in campaign money, according to an Observer analysis of new finance reports.

Democratic lawmakers have nearly $2 million more as they start a campaign to keep control of the House and Senate.

They were boosted by support from political action committees and strong fundraising by embattled House Speaker Jim Black. The Matthews Democrat, at the center of fundraising and other controversies, remained a magnet for influence-seekers. He accounts for one in every five dollars House members have.

"(Democrats) are able to parlay their political muscle into a financial advantage," says John Davis, who, as executive director of the pro-business NCFREE, has analyzed legislative politics for 20 years. "And 85 percent of the time, the one with the financial advantage wins the campaign."

Black raised $704,000 in 2005, more than any other lawmaker. He has $1 million in the bank.

"When people ask whether the Jim Black scandal hurts the Democrat Party … a lot of times they will point to the amount of money (he) has raised," says Bill Peaslee, chief of staff for the state GOP. "My answer is, `There’s a short session coming up and there’s still a lot of legislation these people want to influence.’ " The legislature’s next session begins in May. (more…)

Lottery Commissioners Big Money Contributors

Chris Fitzsimon — Thu, 29 Sep 2005 09:13:11 +0000

The people appointed to the influential NC Lottery Commission have been big money contributors to state politicians for the past decade. Click here to see political contributions made by Lottery Commisson members.