Sam Ervin, Watergate and the N.C. State upheaval

When N.C. State Chancellor Jim Oblinger resigned Monday following a series of revelations about his role in the hiring of former N.C. First Lady Mary Easley, one thing many people found difficult to believe was that he could not remember that role until he saw the e-mails he had sent during his discussions about her hiring back in 2005. Those emails were among materials N.C. State released to federal investigators who had requested them.

It stretches the imagination to believe that the former chancellor could not remember discussing with other State officials the hiring of the wife of a sitting N.C. governor.

But Oblinger is hardly the only public official to profess no memory of involvement in certain matters. Thirty-five years ago this summer, the Watergate affair was raging in Washington, and U.S. Sen. Sam Ervin of Morganton, D-N.C., had been at the center of congressional investigations into what happened after the Nixon White House had taken part in a coverup of the Watergate Hotel break-in at Democratic Party headquarters. Ervin's Senate Select Committee on Presidential Campaign Activities had grilled a number of Nixon's henchmen, many of whom testified that they could not recollect specific events during that shabby episode. The episode eventually led to the resignation of President Nixon after the U.S. Supreme Court unanimously ruled that he had to release secret tape recordings of much that was said in the oval office.

That prompted Ervin, a colorful character with a host of good stories about the human condition and the frailties of man, to remark that it sometimes was better to have "a good forgettery than a good memory."

Bowles: N.C. State e-mails 'made me sick'

UNC President Erskine Bowles was not around when former First Lady Mary Easley was first hired to run a speakers program at N.C. State University. And when she was given new duties and a dandy compensation package of $170,000 a year, he didn't like the way it was handled and ordered a review of the deal before the UNC Board of Governors, and he, blessed it last year. But when former N.C. State Board of Trustees Chairman McQueen Campbell, who had flown the governor on unreported trips and helped the Easleys get a good deal on coastal property, mentioned in a conversation a few weeks ago that he had suggested Mary Easley’s hiring to N.C. State Chancellor James Oblinger, Bowles determined that Campbell had to go. Campbell resigned. Oblinger said he was embarrassed that he could not remember having that conversation with Campbell. He said he might have passed the idea of hiring the wife of the governor along to a colleague, but he simply couldn't remember.

But Oblinger's protestations didn't hold a lot of water among those who read a collection of Campbell's e-mails, including some from Oblinger, Monday when N.C. State released them. They show that Oblinger was aware that the governor was pushing his wife for a job at N.C. State, and that Campbell was pushing Easley's wife for a job at N.C. State, and Oblinger was aware that other campus officials knew about the deal. At one point, he wrote, “We're ready to move on this; next step is in the Mansion,” presumably a reference to the Governor’s Mansion in Raleigh.

In other words, Oblinger's words didn't look or sound credible.

Bowles got the emails on Friday, and when he read the account, he said, "The e-mails made me feel sick." He had believed Oblinger when the chancellor had said he couldn't recall any discussions about a job for Easley. And Bowles said there were probably a lot of conversations he had had that he could not remember -- but after reading copies of the emails, it was much more difficult to believe.

Amen. And it's sad. I always thought Jim Oblinger was a really good chancellor, a good fit at N.C. State. But it's tough to believe he'd forget helping out the governor and the governor's wife. The wife of a dean, maybe, and surely the wife of an associate professor. But the governor? Come on. If it's true that he no longer remembered his own involvement, and the governor's, in helping the governor's wife get a job, his memory surely did him a disservice.

Former UNCC Chancellor Woodward to fill in at N.C. State

Former UNC Charlotte Chancellor Jim Woodward of Charlotte has been tapped to serve as interim chancellor at N.C. State, where he once taught, while the university searches for a replacement for former N.C. State Chancellor Jim Oblinger. Oblinger resigned this morning.

UNC President Erskine Bowles said, "I am extremely grateful that UNC Charlotte Chancellor Emeritus Jim Woodward—an aeronautical and mechanical engineer who taught at NC State early in his career—has agreed on very short notice to serve as interim chancellor. I will of course be working closely with NC State Board of Trustees Chairman Bob Jordan to launch a search for a permanent chancellor and to ensure that the campus doesn’t lose momentum in the months ahead."

Here's a link to Bowles' letter to the UNC Board of Governors.

S.C., N.C. out of unemployment funds

The investigative Web site Pro Publica (propublica.org) notes that South Carolina and North Carolina are among 14 states nationally whose unemployment funds have run out of money because they didn't put enough money aside to keep it going in a pinch or because they paid out too much in claims. Here's a link to the site.

In summary, Pro Publica says:

It used to be, unemployment insurance meant a sturdy back and a jalopy big enough to fit the whole family. That changed in 1935, when the government started offering unemployment insurance, and states began to save when times were good so there was money to spend to help workers and stimulate the economy when times were bad.
In all but a handful of states, it no longer works that way.

Fourteen states have already run out of funds to pay unemployment insurance claims and taken out a total of more than $8 billion in federal loans to cover the shortfalls. At least 18 more states are in danger of exhausting their unemployment insurance trust funds.

States with empty unemployment insurance trust funds have pointed to the severe recession as the cause for their plight, but a closer examination of their trust funds shows underfunding and poor planning as the main culprit. Instead of building up reserves during good years, legislatures in these states yielded to political pressure for high benefits and low taxes. The result: dangerously low trust fund balances.

Now, states with bankrupt trust funds will have to increase taxes or cut unemployment benefits at the worst possible time -- during a recession.
"This is not a very smart way to run a railroad, because you want benefits to be available quite freely when unemployment rates go up, and you don't want to raise taxes on employers during a recession," said Gary Burtless, an economics expert at the Brookings Institution. "There used to be rules most states abided by, but those standards kind of went the way of the dodo bird."

DOT board praises former member

When Kinston businessman and N.C. Board of Transportation member Cameron McRae resigned from the DOT board last month after disclosure that neither he nor former Gov. Mike Easley had disclosed flights he had provided Easley while still governor, some DOT officials evidently were unhappy with the treatment McRae got and the way he was squeezed out.

Secretary of Transportation Eugene Conti, Gov. Bev Perdue's appointee to run the department, fired off a letter to the editor of The News & Observer praising his service on the Board of Transportation and on the Global TransPark Authority, of which Conti is vice chairman. Conti said he wrote the letter to provide "additional perspective" to news coverage about McRae, and said McRae was "a dedicated and energetic contributor to the work" of both DOT and the TransPark. "I am grateful to Cam McRae for his service to the residents of North Carolina," Conti wrote.

At Thursday's Board of Transportation meeting, board chairman Doug Galyon of Guilford County read Conti's letter into the board record, and Judge Bob Collier, a board member, moved that the minutes show it reflected the sentiment of the entire board about McRae. The motion was approved unanimously.

McRae, whose term on the board actually ended in January but who stayed on until a replacement could be named, resigned his post in a letter to Gov. Perdue so she could move forward with a successor. The resignation came a few days after news stories appeared noting that McRae had acknowledged flying Easley twice. State law requires DOT board members to disclose their campaign activities related to the board seat; McRae also made contributions to Easley, and the story raised questions whether the value of the flights and the contributions exceeded legal limits.

A lone voice for tax hike for schools

State schools CEO William Harrison is providing some leadership where other key state officials are remaining quiet. In an interview with reporter Lynn Bonner of the News & Observer, Harrison called on state legislators to raise taxes and keep schools and other state agencies from the worst of contemplated budget cuts. Harrison called for a temporary sales tax increase as well as hikes on cigarettes and alcohol.

But Gov. Bev Perdue's staff says she's not pushing that particular line of thinking. "At this time, it is not something that the governor is pushing," said spokeswoman Chrissy Pearson. Perdue's proposed budget -- which was unveiled long before it became apparent that the budget shortfall would be in the range of $4 billion -- did call for cigarette and alcohol tax increases, but not the sales tax.

Harrison's willingness to speak out now is interesting because of its sharp contrast to other state leaders, including legislative leaders who have been cautious about significant tax hikes. The Senate budget had a $500 revenue hold it -- which might be filled by a Senate Finance co chairs plan to revise the state's tax structure, cutting some tax rates and applying the sales tax to more services. The House, on the other hand, has tried to develop a budget proposal without revenue increases. Word is that House members are now talking a little more about ways to raise revenue.

Perdue appointed Harrison to the State Board of Education earlier this year to run the state schools and bring about more accountability. Harrison is trying to avoid some budget cuts in a potential cut of up to $1 billion for state school support, but even if the legislature were to boost some taxes, significant budget cuts are on their way for state agencies.

Hard to imagine Allred 'fading away'

D.G. Martin, the former Charlotte lawyer, political candidate and later lobbyist for the UNC sytem, has a few kind words for former state Rep. Cary Allred. He resigned effective Monday afternoon following complaints filed by fellow Republican legislators about a bad evening Allred had April 27. (Allred said he had one drink, a chelada, before leaving his home in Burlington, got stopped for driving 102 mph but not issued a ticket until days later, had a loud exchange with House Speaker Joe Hackney, and hugged and kissed a teenage House page, a neighbor whom he sponsored for the pageship in a way that some of his fellow GOP members thought was unseemly at best. The matter was referred to the Legislative Ethics Commission, but Allred's resignation ends whatever inquiry the commission might have made.

Here's part of what Martin had to say about Allred Monday in his weekly column:

I remember watching Allred in action two years ago. He had taken up the cause of an old time locksmith who had been fixing broken locks in his neighborhood for years. A new locksmith licensing law required him to register, take tests, pay fees and maintain his license by taking locksmith education classes.
Allred was trying to persuade a legislative committee to exempt older and experienced locksmiths from the education requirements since his locksmith friend “didn’t really need any more education” to do what he had been doing all his life.

Allred presented his arguments with a passion for the plight of an individual who was tragically being put out of business by insensitive government legislation.
He did not persuade the committee to overturn a system of regulation designed to deal with professionals who install and repair sophisticated electronic security systems.

But he persuaded me that he had a good heart that would go to bat for the “little guy.”

Apparently, he also persuaded a lot of voters in Alamance County that he would try to stand up for them, rather than just working to go along with other legislators.
Current Alamance County Republican chair Robert Simpson said, “Cary's a lone wolf. He usually doesn't follow the advice or consent of his fellow Republicans. He does generally what he wants to do.”

Being a “lone wolf” might be the right thing for a politician who wants to please voters who distrust government and all the compromises it involves.
But when a “lone wolf” gets in trouble, there is no one to shield him from the daggers.

Allred's resignation quoted the late Gen. Douglas MacArthur's observation about old soldiers never dying, they just fade away. Allred himself was not a soldier. He was a sailor, having served in the U.S. Navy and then in the Naval Reserve, according to his biography. Close enough, but it's hard to imagine Cary Allred fading away. We'll hear from him again.