RALEIGH, N.C. – North Carolina courts weighed in again Tuesday on how far a governor can go to balance the state’s budget, this time ruling then-Gov. Mike Easley was wrong to transfer $80 million from a road-building fund to pay for other government operations.

In a split decision, a three-judge panel of the state Court of Appeals ruled the state constitution doesn’t allow a governor to transfer money appropriated by the General Assembly for one purpose and use it for another purpose without legislative approval.

Easley transferred the money from the Highway Trust to the state’s general fund with a February 2002 executive order to help close a shortfall in that year’s budget that ultimately reached $1.6 billion. Two former state officials sued later that year, arguing trust fund revenues must only be used for purposes outlined in state law.

Judge Robert Hunter of Morehead City, writing the majority opinion, said a governor has many avenues to narrow a budget gap – including escrowing funds, employee furloughs and temporary spending cuts. But transferring funds appropriated by the Legislature crosses the line, Hunter wrote in reversing a ruling by Superior Court Judge Joseph John in March 2008.

“The transfer of these funds, designated by the budget statute for one purpose and transferred by the Governor to another does not fulfill the executive’s duty to administer the budget enacted by the Legislature, nor does it assure that the laws are faithfully executed,” Hunter wrote. Judge Barbara Jackson joined with Hunter in the 2-1 opinion.

Easley and current Gov. Beverly Perdue – who also has withheld money and cut down on expenses to deal with even worse fiscal troubles – have said the constitution gives the state’s chief executive broad powers to scour state government to find money to close a shortfall.

The state constitution says the governor “shall effect the necessary economies in state expenditures” to “insure that the State does not incur a deficit for any fiscal period.”

In the dissenting opinion, Judge Linda McGee said Hunter’s interpretation of the state constitution would hamstring governors from acting quickly to plug a deficit.

“The restrictions on executive action as mandated by the majority are inefficient, impractical, and likely to thwart the governor in the governor’s constitutional duty to prevent a deficit,” McGee wrote.

The divided court means the state Supreme Court must hear the case if the state appeals the ruling. The office of Attorney General Roy Cooper is reviewing the ruling and will consult with Perdue’s office before deciding its next move, spokeswoman Noelle Talley said.

The three judges agreed to uphold a portion of John’s ruling that the Legislature had the authority to take another $125 million from the Highway Trust Fund to balance the 2002-03 budget.

The Highway Trust Fund is primarily used to build urban loops, widen four-lane highways and improve secondary roads. The fund generates revenue largely through a 3 percent use tax on vehicle sales, a gasoline tax and title fees.

The case already has wound its way through the court system once on a procedural question. The state Supreme Court agreed in 2006 that Transportation Secretary Jim Harrington and ex-Sen. Bill
Goldston, who helped created the fund in 1989, had the legal standing to sue as taxpayers.

An attorney for Goldston and Harrington said he would comment on the case later Tuesday.

State courts have heard two similar cases involving how Easley managed the budget crisis earlier this decade – decisions that will affect the options Perdue and future governors have to plug spending holes.

In 2005, the state Court of Appeals unanimously upheld Easley’s decision to withhold $210 million in expected tax reimbursements to local governments to balance the budget.

But another three-judge panel last year ruled it was wrong for Easley to intercept $225 million headed to state employee pension funds because the state and federal constitutions protect them.

RALEIGH, N.C.  – Gov. Bev Perdue today appointed John Collett, Leigh Harvey McNairy, Major General Hugh R. Overholt, Wanda J. Proffitt, Charles D. Watts Jr. and Ralph Womble to the N.C. Board of Transportation.

Collett is the chairman of Collett & Associates, a commercial real estate development business in Charlotte.  He has held that position since 1987.  Collett received his bachelor’s degree in economics from Duke University.

McNairy serves as secretary for the board of directors of the N.C. Eastern Regional Partnership for Economic Development.  She also is chair of the committee for Strategic Planning and a member of the Committee for Regional Logistics.  From 2003 to 2005, McNairy served as the N.C. Special Assistant for Military Issues, specifically dealing with BRAC federal legislation.  She was a founding member of the East Carolina University Women’s Roundtable, member of the University of North Carolina Lineberger Comprehensive Center and director of the UNC-Chapel Hill Friends of the Library.  McNairy received her bachelor’s degree from the UNC-Chapel Hill and her Master’s degree in teaching from Duke University.

Overholt is an attorney for Ward & Smith in New Bern and is a retired major general of the U.S. Army.  While in the Army, he served in numerous leadership roles, including judge advocate general.  Overholt is a member of the N.C. Bar and of the N.C. Governor’s Commission on Military Affairs.  He received his bachelor’s degree and his juris doctorate from the University of Arkansas.

Womble is a retired vice president from Leggett & Platt in Winston-Salem.  He has served on numerous boards, including the N.C. School of the Arts Board of Trustees and Executive Committee, the Winston-Salem Alliance and the Winston-Salem Foundation Board of Directors.  Womble received his bachelor’s degree from the University of North Carolina at Chapel Hill and his master’s degree in business administration from the Wake Forest University Babcock School of Management.

Watts was the senior vice president of the North Carolina Mutual Life Insurance Company in Durham from 1998 to 2007.  He also was an attorney for the Law Office of James D. Williams from 1997 to 1998.  Watts was past board chair of the N.C. Museum of Life and Science, past corporate board member of the YMCA of the Triangle and past board member of the UNC School of Nursing Foundation.  He received his bachelor’s degree in economics from UNC-Chapel Hill, his master’s degree in business administration from Indiana University and his juris doctorate from the Howard University School of Law in Washington, D.C.

Proffitt is the president and owner of Carolina Mountain Realty, Inc. in Burnsville.  She is director of the Better Business Bureau, past commissioner of the N.C. Real Estate Commission and past director of the N.C. Association of Realtors.  Proffitt received the Distinguished Service Award from Mayland Community College in 2008 and was named Realtor of the Year in 2001 from the Yancey-Mitchell Board of Realtors.

The state’s first female governor isn’t getting any sympathy for women, according to the latest from Public Policy Polling.

The state of Alaska has a new governor.

Sarah Palin officially stepped down from the post and turned the job over to her Lt. Governor over the weekend.

After a weekend of goodbyes to Sarah Palin, came the official moment.

The swearing in of a new governor of Alaska.

The former Lt. Governor will take over the remaining year and a half of Palin’s term.

“It is an honor to speak to all Alaskans, to our Alaskan family, this one last time as your governor,” said Palin.

In Palin’s final address as governor, a tribute to her home state.

“In Alaska, it is not an easy living, but it is a good living. And, here it is impossible to lose your way,” Palin said.

The send-off started Friday in her hometown of Wasilla, where she helped serve food at one of three weekend picnics she attended across the state.

“I do want to tell you I love you and I thank you for the support of me,” said Palin.

Unknown on the national stage until John McCain picked her as his running mate, Palin burst onto the political scene.

But ethics complaints, mounting legal fees, and dwindling popularity have plagued her.

“There are more than 9 lives in American politics, and she’s only on her first,” said Wendy Schiller an associate professor of political science at Brown University.

Surrounded by family and supporters most agree Palin’s goodbye as governor looked nothing like a final political farewell.

Palin has said she plans to write a book, campaign for political candidates, and build a right-of-center coalition.

Her announcement that she would step down as governor came three and a half weeks ago.

Alaska Gov. Sarah Palin says she is resigning from office.
     
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North Carolina’s governor has cut the size of her security detail and sent five state troopers that served the previous governor back to typical duties.
     
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North Carolina is Apple’s choice for a new data center, according to an announcement made by Gov. Bev Perdue.

The announcement came Wednesday afternoon just after Gov. Perdue signed Senate Bill 575, which modifies method by which capital-intensive businesses calculate corporate income tax liability in North Carolina.

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RALEIGH, N.C.  – People buying raffle tickets to support charitable causes in North Carolina could win bigger jackpots in a bill heading to the governor’s desk.

The Senate gave final legislative approval Wednesday to a measure that would increase maximum prize amounts from $50,000 in cash or merchandise in a calendar year to $125,000.

It also makes clear tax-exempt organizations and associations can offer houses and real property as a prize valued up to $500,000.

First-term GOP Rep. Justin Burr of Stanly County is the bill sponsor. Burr has said the measure would help charities generate more funds when their services are needed most in a bad economy.

Gov. Beverly Perdue will be asked to sign the bill into law.

RALEIGH, N.C.  – North Carolina Gov. Mike Easley preferred sending an e-mail to getting on the phone, meeting in small groups instead of giving speeches, and spending a quiet weekend at home rather than traveling the Democratic Party’s rubber-chicken circuit.

“I like to get to work and solve problems,” Easley said in a 2005 interview before his second inauguration, adding that for all the pomp, “I don’t like it as it applies to me personally.”

While the former governor has a jocular side, Easley’s reticent, all-business persona stands in contrast to the swirl of allegations surrounding him and former first lady Mary Easley.

Authorities want to know more about free flights on privately owned aircraft and loaner cars from dealerships, a land purchase in a gated coastal community and how Mary Easley got her job at N.C. State University in 2005 that now pays her $170,000 a year.

So far, Easley has released a one-sentence statement defending himself and has not responded to several requests for interviews from The Associated Press. And Mary Easley stood silent next to a podium at a news conference late last week, something her lawyer said was prudent as he explained she had no plans to resign.

“It is my considered judgment that this is the best course of action,” Mary Easley’s attorney, Marvin Schiller, told reporters.

The Easleys haven’t been charged with any crimes and it may be months or longer before it’s determined whether the Easleys did anything unethical or illegal. What is clear is that scrutiny of the largely silent couple threatens to damage the public’s view of Mike Easley’s accomplishments as governor and attorney general.

“It’s difficult to see how (his) legacy won’t be tarnished,” said David McLennan, a political science professor at Peace College in Raleigh. “The difficulty with the lack of transparency is it creates the perception that they’re hiding something.”

A federal grand jury received testimony last week from a Highway Patrol trooper who was the supervisor of Easley’s former security detail. The FBI subpoenaed travel records about privately owned aircraft on which the Easleys and their son rode, and asked for Mary Easley’s personnel records at N.C. State.

The State Board of Elections is investigating if the airplane travel violated campaign finance laws and why Easley’s campaign failed to put its use of a sport utility vehicle from an eastern North Carolina dealership on campaign reports years ago.

Some political observers say it’s too early to make assumptions.

“You’ve got to try to back away, and say, ‘All right, what happened here?”‘ said Gary Pearce, a longtime Democratic consultant whose former clients include former Gov. Jim Hunt and then-U.S. Sen. John Edwards. “And we’re not going to know that for some time.”

While the legal machinations are complicated, the alleged preferential treatment of the Easleys is simple for the public to grasp, said Carmine Scavo, a political science professor at East Carolina University.

“There’s his wife’s job. Everybody understands that. And there’s flying on planes,” Scavo said. “In office, he pretty much had a squeaky-clean reputation, and now a lot of people are re-examining that.”

Easley’s behind-the-scenes governing style during his eight years as governor largely served him well.

He won praise for legislative victories that expanded his nationally recognized public school reforms such as free preschool for at-risk 4-year-olds and two-year college degrees for teenagers before they leave high school. He also helped pass a state lottery with profits going to education.

“It’s important for the current chroniclers of the day, including the media, that they will provide a fair and balanced view of his record,” said Eddie Davis, former president of the North Carolina Association of Educators, the state’s top teacher lobbying group.

But Easley also took heat during his final year in office. He defended his wife’s expensive taxpayer-funded trips to Europe, got sued over destroyed e-mails in his office and was criticized for failing to fix a tattered mental health treatment system.

“He was in a hole and kept trying to work his way out of it,” said Andy Dedmon of Cleveland County, who was House majority whip during Easley’s first two years as governor.

Republicans have jumped on the allegations, demanding independent investigations and that Mary Easley resign.

Few Democrats have come to the Easleys’ defense. Current Gov. Beverly Perdue, who as lieutenant governor didn’t have a close relationship with Easley, and many legislators are taking a wait-and-see attitude.

“We’ve heard a whole lot of suppositions and what-ifs and what-abouts,” said Senate Majority Leader Tony Rand, D-Cumberland, Easley’s closest ally in the Legislature. “I would hope that people would withhold their judgment on all of this until we know something about this.”