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This post has been updated with reaction from SEANC, the State Employees Association of North Carolina.

The former head of North Carolina’s public-private economic development group received a $30,000 “stay” bonus in January, an enticement that only kept him at the new endeavor for three months.

Richard Lindenmuth

Richard Lindenmuth

Richard Lindenmuth, a Raleigh business executive, was selected in January 2014 to get the largely publicly-funded Economic Development Partnership of North Carolina off the ground. He had specialized in helping troubled companies but had no prior economic development experience.

The public-private partnership, which received $17.5 million in state funding last year, has been a central piece of Gov. Pat McCrory’s economic development strategy, after state lawmakers granted the McCrory administration’s request to move Commerce’s job recruitment, tourism and marketing arms out of state government. The privatization of the state’s job recruitment strategies, which proponents say allow for more aggressive and effective job recruitment, has encountered accountability issues in some states that have taken similar approaches.

Here in North Carolina, Lindenmuth was in the interim chief executive officer role for the partnership until December 2014, when McCrory administration officials announced that an experienced economic developer from Missouri, Christopher Chung, would take over the organization.

Lindenmuth would be staying on a consultant, McCrory administration officials said at the time.

Records (scroll down to view) recently obtained by N.C. Policy Watch through a public records request show that the public-private partnership also opted to pay Lindenmuth a $30,000 “stay” bonus to continue as a contractor while also receiving the same pay he got as an interim director – $10,000 a month, or $120,000 a year.

 

The stay bonus didn’t manage to keep Lindenmuth at the organization for very long.

He submitted a resignation that was effective as of March 31, less than three months after he received the $30,000 stay bonus, according to Mary Wilson, a spokeswoman for the agency.

When asked for the date when Lindenmuth submitted his resignation for the contract position, Wilson responded on Thursday that the public-private partnership had no comment.

N.C. Policy Watch requested a copy of his resignation letter, which was not immediately released.

In all, Lindenmuth received $71,770 for his three months of consulting work in 2015 – the $30,000 stay bonus, $35,538 in regular pay and $6,231 for accrued time off.

Lindenmuth declined to comment for this article, and hung up on an N.C. Policy Watch reporter who reached him by telephone this week.

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A memorandum from the state budget office issued earlier this month asks state agencies to let them know what’s essential and what’s not, in the event a budget stalemate leads to a government shutdown.

budget-pieThe July 14 memorandum (scroll down to read) asks agencies to go through their operations, and report back about public safety and essential services need to continue on in the event of a funding stoppage –things like keeping on the staff who feed animals at the N.C. State Zoo, emergency responders in the highway patrol and prison guards.

Agencies need to provide their responses by Monday, which need to include estimates about what would happen if funding is halted for a week, or longer.

Preparing for a budget stalemate is a lot different from how the state prepares for other emergencies, state budget director Lee Roberts wrote in the July 14 memorandum.

“For a budget contingency plan, we must instead identify the minimum functions and services that must be performed for immediate response to issues of public lives or safety, or to avoid catastrophic loss of state property, and the associated personnel required to carry out these tasks,” Roberts wrote in the memorandum. “This includes the number of personnel required to perform these functions at the critical level, as well as administrative staff that support those critical functions.”

He takes care to point out that the chance of government shutdown because of the current budget negotiations is unlikely, and his request is intended to make sure a contingency plan is available in case things fall apart on the federal or state level.

But it’s certainly not an unprecedented scenario, as North Carolinians found out in 2013 when the federal government stopped running.

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The N.C. Supreme Court ruled that public dollars can be used for vouchers that allow low-income children to attend private schools in North Carolina, in a ruling released late Thursday afternoon.

That will mean that funding will continue for the voucher program this upcoming school year.

In the 55-page opinion released late Thursday afternoon, N.C. Chief Justice Mark Martin said that the legislation creating the vouchers did not overtly counter the state’s constitution, and therefore the court could not rule the program unconstitutional.

“Our constitutionally assigned role is limited to a determination of whether the legislation is plainly and clearly prohibited by the constitution,” Martin wrote. “Because no prohibition in the constitution or in our precedent forecloses the General Assembly’s enactment of the challenged legislation here, the trial court’s order declaring the legislation unconstitutional is reversed.”

You can read the full decision, including the dissents, here.

Opponents of the measure had argued that the private school vouchers drain needed resources for public schools, and that it violated the state constitution to send public money to unaccountable private schools that are often religious in nature and can pick and choose (or discriminate against) their students.

Proponents, on the other hand, said the “opportunity scholarships” offered a needed educational choice to poor families unable to afford private schooling on their own.

For background, read this excerpt from an earlier article from N.C. Policy Watch reporter Sharon McCloskey:

In December 2013, groups that included taxpayers and the state and local school boards filed two separate lawsuits, alleging that the law violates state constitutional provisions requiring the expenditure of public funds exclusively for public schools, and contending that a voucher program wholly devoid of standards fails to meet the state’s obligation to provide all children with a “sound basic education” and thus does not satisfy the constitution’s “public purpose” provision.

[Superior Court]Judge Hobgood agreed with the challengers and temporarily blocked implementation of the program this past August, but state appellate courts later allowed monies to flow to families already approved for vouchers for the current school year while the cases proceeded in the courts.

The Supreme Court has likewise allowed the application process for vouchers next year to move forward while it considers the appeal.

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With a state budget nearly a month overdue, several Republican lawmakers headed to California this week to attend a conference with close ties to some of the nation’s largest corporations.

alecAt least three of the lawmakers will have their $700 registration costs for the American Legislative Exchange Council and a $104 per diem paid for by taxpayers, according to staff in the N.C. General Assembly’s legislative services division.

N.C House Speaker Tim Moore, state Sen. David Curtis, of Lincoln County, and state Rep. Hugh Blackwell, of Burke County, all requested reimbursement from the legislature.

The lawmakers will not receive the $104 per diem they generally get for being in session, and instead will get the travel per diem, which is the same amount.

It’s not all that unusual for the state legislature to pitch in for conferences like ALEC, which promotes free markets and limited government, or another annual conference by the National Conference of State Legislatures (NCSL).

ALEC, however, has come under criticism in recent years, for its close ties to some of the nation’s largest corporations, with questions raised about the level of corporate influence making its way into Congress and state capitals through pieces of model legislation pushed by the group. Several high-profile companies have left ALEC, including Coca-Cola, Wal-Mart, General Electric, Google and Microsoft.

There are other lawmakers from North Carolina attending the event in addition to the trio who will be reimbursed by the state, though they may be paying for the conference themselves or through campaign funds.

WRAL reported that state Sen. Bob Rucho, of Mecklenburg County, and the following House GOP members are headed to San Diego for the ALEC conference: state Reps. Mark Brody of Union County; John Fraley, of Iredell County Craig Horn of Union County; George Robinson of Caldwell County Stephen Ross of Alamance County; Jason Saine of Lincoln County; Sarah Stevens of Surry County.

The ALEC schedule lists Saine as a panelist for a discussion Friday about technology creating efficiencies in government.

“What I’ve found is that the meetings are very much just informative. You learn a lot of things,” Moore told WRAL.  “I know some of the groups coming out and criticizing ALEC, a lot of them are the same groups that criticize us because we want to lower taxes. But I frankly believe that’s what most North Carolinians want.”
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Note: This post has been updated from the original to include a response from Gov. McCrory’s office.

The N.C. Justice Center, along with a number of media and non-profit coalition partners, filed a lawsuit against Gov. Pat McCrory today, accusing his office and administration of not fully complying with the state’s public records law.

The lawsuit was filed in Wake County Superior Court.

The N.C. Justice Center, an anti-poverty non-profit, filed the lawsuit because of issues N.C. Policy Watch, a project of the Justice Center, faced in obtaining public records from McCrory’s office and the N.C. Department of Health and Human Services.

Other plaintiffs in the lawsuit include Capitol Broadcasting Company, the parent company of WRAL; the News & Observer; the Alamance News; the Southern Environmental Law Center; the Durham-based alternative weekly Indy Week; and Media General Operations, which owns WNCN-TV in Raleigh and WNCT-TV in Greenville.

The lawsuit is seeking release of the various requested records, as well as policies that would prevent excessive fees to access public records and require prompt responses to future public records requests.

McCrory’s office issued a statement Tuesday night about the lawsuit, saying that the governor’s administration has been “a champion of transparency and fair and legitimate news gathering.”

But some media members and advocacy groups have abused the spirit of the public records law by filing overly broad and time-consuming requests, McCrory’s office wrote in a statement.

“Like the requests themselves, this lawsuit is an attempt to tie up state personnel and resources that should be spent serving the people of North Carolina,” the statement read.

(Click here to read the entirety of McCrory’s press statement.)

lawsuitmccrorypublicrecords.pdf by NC Policy Watch