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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Governor Pat McCrory’s education advisor, Eric Guckian, is leaving his job at the end of July to serve in a leadership role for a national organization dedicated to transforming Teach for America alums into leaders.

In a Tuesday afternoon press release, McCrory’s office touted education-related accomplishments it said Guckian’s guidance was key to making happen.

“During his tenure with Governor McCrory, Guckian was instrumental in helping pass one of the largest teacher raises in the state’s history which provided an average salary increase of seven percent and raised the base pay for beginning teachers,” read the statement, along with a list of other education initiatives in which Guckian played a role.

Guckian will join the Leadership for Educational Equity as a Vice President for Alliances. The organization is dedicated to transforming Teach for America corps members and alumni into leaders.

Guckian is a former TFA corps member himself, having served in New York City and as a teacher and as executive director of Teach for America, North Carolina.

Guckian’s last day as McCrory’s education advisor is July 31. A new education advisor is expected to be announced “in the near future.”


Now that the Supreme Court has ruled — again — that the structure of the Affordable Care Act is constitutional, it is time to move forward with making the law work better in our state.

The first, and most important, step is accepting federal funds to extend the benefits of affordable health insurance coverage to 500,000 more people in our state. Gov. McCrory said last year that his staff was assembling options to expand coverage and that he would make an announcement about his recommendation after the Supreme Court ruled in King v. Burwell. The ruling has arrived.

When asked about expansion today McCrory was sort of squishy and said he wants a North Carolina plan. We all do. But first we need the Governor to draft and release such a plan. Conservative Governors in Ohio, Indiana, Utah, Michigan, Tennessee and other states have either closed the coverage gap or assembled a strategy to accomplish a coverage expansion. There’s no reason our Governor can’t do the same.

Legislators are still critical of expansion. Sen. Ralph Hise says that he doesn’t think the federal government will be flexible enough to allow a state option. His wish list includes wanting to expand using private insurance and imposing co-pays on recipients above the federal poverty level.

Of course, the federal government has approved even more conservative measures than Hise mentions. Several states including Arkansas, Iowa, and Michigan do use private insurance to expand coverage. Some states are charging co-pays and premiums even on enrollees earning less than the federal poverty level. The federal government has shown a degree of flexibility that makes many advocates uncomfortable. The idea that our hands are tied is, to quote Justice Scalia, pure applesauce.

Recently released data from the National Health Interview Survey show the dramatic impact of expanding coverage. In Kentucky the adult uninsured rate dropped from 24.1 percent in 2013 to 15.6 percent in 2014. In Arkansas the rate went from 27.5 percent to 15.6 percent. And, most stunningly, in West Virginia the adult uninsured rate went from 28.8 percent in 2013 to 12.2 percent in 2014. These numbers reflect only the first year of expansion and states nearly cut their adult uninsured rates in half. In North Carolina the adult uninsured rate moved from 25.6 percent to 22.5 percent.

A majority of states are expanding coverage while reforming their Medicaid programs. More states will join their ranks now the Supreme Court has ruled that the Affordable Care Act is here to stay. The Governor must show leadership on this issue and ensure that all of our citizens have access to comprehensive, affordable health insurance.


North Carolina Gov. Pat McCrory made a surprise appearance at the quarterly meeting of the state’s public-private economic development board Friday morning, asking for support for economic financial incentives and his $3 billion transportation and infrastructure bond package.

AGGAG-vetoHe also told board members, who are largely business people from around the state, that he’d made headway in showing the legislature that the public backed those proposals.

McCrory said that public support, which he referred to as “surveys,” may be set back after yesterday’s veto of a bill that would have permitted magistrates to refuse to marry same-sex couples and more vetoes he said were on the way.

“That [survey information] may change after yesterday’s veto and today’s veto and two other vetoes coming up,” McCrory said. “And I’ve got to do what I’ve got to do.”

Shortly after the morning meeting, McCrory’s office announced he vetoed the “ag-gag bill,” which had been opposed by animal-rights groups and AARP and would have penalized whistle-blowers who exposed wrongdoings at companies they work at.

When asked afterwards about his comments about future vetoes, McCrory would not expand on his comments.

Another controversial bill making its way through the legislature that would require a 72-hour waiting period for abortions, and require doctors to send patients’ ultrasounds to the state health agency.

A list of other bills on McCrory’s desk is here.

At Friday morning’s meeting, McCrory also had sharp criticism for his Republican colleagues in the legislature, where his bond proposal is getting a lukewarm reception.



McCrory wants to put the proposal, which would fund a myriad of transportation and state government projects around the state, before voters. The proposal needs legislative backing to get on the ballot.

“We have support in the legislature but it is very soft support,” McCrory said, adding that the legislature was busy with budget proposals. “Frankly, they’re scared of their own shadow.”

He also said that he would play “hardball” and wouldn’t be deterred by opposition from those in his political party.

“I’m not going to let three or four people in the legislature block progress in North Carolina,” McCrory said. “I don’t care what party they’re from.”

Friday morning’s quarterly meeting of the economic development meeting is a public meeting, but N.C. Policy Watch was the only media member, as well as the only member of the public, to attend the meeting at  Red Hat’s headquarters in downtown Raleigh.

The public-private partnership was established last year by the state legislature, and transferred the tourism and business recruitment division of the state Commerce Department to the quasi-public group. It’s largely funded with public money ($16 million) but is on the hook to raise $1.25 million from private funders in its first year.

The group has raised $830,000 so far from private contributors, with several other gifts promised and about $250,000 more to be raised by October, said John Lassiter, a Charlotte attorney and chairman of the Economic Development Partnership of North Carolina.

Want to hear for yourself? McCrory’s comments about the legislature and upcoming vetoes begin at the 4:40 minute mark:


Note: This post has been changed from the original to more accurately reflect McCrory’s comments about upcoming vetoes. He referred to the vetoes in the context of how “surveys” from the public may change in light of the vetoes, not his relationship with the legislature as initially reported. We apologize for the inconvenience.


Gov. Pat McCrory unveils his recommended 2015-17 state budget

Governor Pat McCrory unveiled his recommended $21.5 billion budget Thursday, which continues his promise to boost beginning teacher salaries up to a minimum $35,000 a year but does not provide significant increases for veteran teachers and makes yet another cut to the state’s university system.

“We’re changing the basic paradigm of how we evaluate and distribute our limited tax dollars,” McCrory told reporters Thursday. “The new paradigm is directing our monies toward where we’re having the highest attrition, where the greatest need is and based upon the market performance…we’re really speaking in a different paradigm that’s more market-oriented than civil service oriented.”

More than half of McCrory’s 2015-17 recommended state budget is devoted to education. An additional $200+ million is spent on fully funding student enrollment growth in K-12 education over the next two years, and around $84,000 is tagged for increasing beginning teacher salaries from $33,000 (which the General Assembly approved last year) to $35,000 beginning this fall.

While veteran teachers did not receive significant pay bumps in spite of the fact that many say they were cheated out of raises during last year’s much touted teacher pay raise, McCrory’s new budget director, Lee Roberts, emphasized that eligible teachers would still move along the newly-enacted state salary schedule if McCrory’s budget passes.

The old salary schedule for teachers had previously been frozen, Roberts said. The state’s new system provides teachers with pay bumps every five years.

McCrory’s budget hits the University of North Carolina system with a 2 percent funding decrease, also known as “allowing flexibility to achieve efficiencies.”

That cut comes on top of years of budget cuts to the state’s strapped universities. In addition, universities would also be capped at $1 million with regard to how many state dollars they can spend toward private fundraising efforts.

McCrory told reporters that he’s consulted with UNC leaders.

“We’ve talked to the university leaders about this and what they like is the flexibility we’re giving them, said McCrory. “Instead of the politicians out of Raleigh telling them how to find savings, we’re giving them the flexibility to do that.”

The word flexibility was a commonly used one in today’s budget reveal.

“In the past, they’ve [UNC] gotten the directive of what to reduce or increase out of Raleigh. Those days are ending. We want to give that flexibility to our universities and our community colleges and, by the way, our superintendents,” McCrory said.

Other education-related takeaways from the Governor’s budget: Read More