11.16.07 The racial and economic divide
11.16.07 Special interests winning again
Monday, November 19, 2007
Friday Follies
by Chris Fitzsimon
It has been a fairly busy news week in Raleigh for the middle of November, much of it dominated by more revelations about the reign of former House Speaker Jim Black and his Co-Speaker for the 2003-2004 legislative session, Rep. Richard Morgan.
The News and Observer reported Sunday that Black’s son was awarded state contracts for pest control services at three prisons, despite submitting bids for the work that were much higher than quotes from other companies.
The story is complicated but includes allegations by a subcontractor of the company building the prisons that he was pressured to hire Black’s son to make sure the construction company would get the prison business.
The sordid tale also involves special provisions snuck into the state budget that allowed the construction company to bypass low bidders when awarding subcontracts. Virtually every story about corruption in the General Assembly at some point comes back to special provisions, changes in state law snuck into the 300 page budget document at the request of a powerful legislator, almost always without any public debate or even notice.
Banning special provisions from the budget has long been on the agenda of good government groups and House Speaker Joe Hackney said before the 2007 session that he didn’t like them either. But Senate President Pro Tem Marc Basnight openly defends the practice, saying it makes it possible to pass important programs like Smart Start.
It also makes it much easier for corrupt politicians to have their way without anybody noticing. Pretty amazing that we are still arguing about whether or not it is better for the public’s business to be conducted in public or in secret, behind closed doors.
How many more scandals will it take to end the undemocratic practice of using special budget provisions to change state law?
Speaking of Basnight, the story about Black’s son getting state contracts also included a quote that must have caused more than one state government insider to laugh out loud.
The story mentions that the Senate wanted three new prisons included in the 2003 budget bill. Some House leaders wanted to build only two prisons but were told that the Senate leadership would hold up the entire budget if it didn’t call for three.
The News & Observer reports that Basnight says “he has never threatened to hold up a budget if he doesn’t get something he wants.” Right. Actually some advocates can probably confirm Basnight’s claim that he doesn’t threaten to hold up the budget. He does hold it up.
North Carolina received mixed reviews in a new report that grades the states on how well they provide public online information about business subsidies, state contracts and lobbying activities.
The national group Good Jobs First released the report, called The State of State Disclosure, which gives North Carolina an overall grade of C for online access to the information, but a D+ for the way the state makes details of economic development subsidies available.
It points out again how slow some state agencies are in making public information available to citizens via the internet. The State Board of Elections has been struggling for years to make campaign finance data available online, but remains handicapped by the lack of a requirement for campaigns to file reports electronically and by a lack of staff to process the information.
Here are some numbers to consider as the Thanksgiving holiday approaches. A new report from the U.S. Department of Agriculture says that more than 35 million people in the United States went hungry in 2006, with children and single mothers the most vulnerable.
That figure includes 12.9 percent of households in North Carolina that are designated as food insecure. That means that at some point during the year, those households had problems providing enough food for everybody in their family.
The market fundamentalists who keep telling us that poverty is a choice and is vastly overstated should note that this information is not from a progressive, anti-poverty advocacy group. It is from the Bush Administration.
People are poor and hungry in North Carolina this holiday season, thousands of them.
NC Policy Watch
It has been a fairly busy news week in Raleigh for the middle of November, much of it dominated by more revelations about the reign of former House Speaker Jim Black and his Co-Speaker for the 2003-2004 legislative session, Rep. Richard Morgan.
The News and Observer reported Sunday that Black’s son was awarded state contracts for pest control services at three prisons, despite submitting bids for the work that were much higher than quotes from other companies.
The story is complicated but includes allegations by a subcontractor of the company building the prisons that he was pressured to hire Black’s son to make sure the construction company would get the prison business.
The sordid tale also involves special provisions snuck into the state budget that allowed the construction company to bypass low bidders when awarding subcontracts. Virtually every story about corruption in the General Assembly at some point comes back to special provisions, changes in state law snuck into the 300 page budget document at the request of a powerful legislator, almost always without any public debate or even notice.
Banning special provisions from the budget has long been on the agenda of good government groups and House Speaker Joe Hackney said before the 2007 session that he didn’t like them either. But Senate President Pro Tem Marc Basnight openly defends the practice, saying it makes it possible to pass important programs like Smart Start.
It also makes it much easier for corrupt politicians to have their way without anybody noticing. Pretty amazing that we are still arguing about whether or not it is better for the public’s business to be conducted in public or in secret, behind closed doors.
How many more scandals will it take to end the undemocratic practice of using special budget provisions to change state law?
Speaking of Basnight, the story about Black’s son getting state contracts also included a quote that must have caused more than one state government insider to laugh out loud.
The story mentions that the Senate wanted three new prisons included in the 2003 budget bill. Some House leaders wanted to build only two prisons but were told that the Senate leadership would hold up the entire budget if it didn’t call for three.
The News & Observer reports that Basnight says “he has never threatened to hold up a budget if he doesn’t get something he wants.” Right. Actually some advocates can probably confirm Basnight’s claim that he doesn’t threaten to hold up the budget. He does hold it up.
North Carolina received mixed reviews in a new report that grades the states on how well they provide public online information about business subsidies, state contracts and lobbying activities.
The national group Good Jobs First released the report, called The State of State Disclosure, which gives North Carolina an overall grade of C for online access to the information, but a D+ for the way the state makes details of economic development subsidies available.
It points out again how slow some state agencies are in making public information available to citizens via the internet. The State Board of Elections has been struggling for years to make campaign finance data available online, but remains handicapped by the lack of a requirement for campaigns to file reports electronically and by a lack of staff to process the information.
Here are some numbers to consider as the Thanksgiving holiday approaches. A new report from the U.S. Department of Agriculture says that more than 35 million people in the United States went hungry in 2006, with children and single mothers the most vulnerable.
That figure includes 12.9 percent of households in North Carolina that are designated as food insecure. That means that at some point during the year, those households had problems providing enough food for everybody in their family.
The market fundamentalists who keep telling us that poverty is a choice and is vastly overstated should note that this information is not from a progressive, anti-poverty advocacy group. It is from the Bush Administration.
People are poor and hungry in North Carolina this holiday season, thousands of them.
NC Policy Watch
Radical Right Reality Check
Lawmaker’s anti-immigrant “statistics” traced to fringe groups and websites
By Rob Schofield
On Friday November 9, State Representative George Cleveland of Onslow County sent a document to all “exchange users” of the North Carolina General Assembly email system (i.e. all legislators and legislative staff) entitled “Interesting Statistics.” Cleveland, you may recall, was the person who uttered this statement in support of his proposal to tax international money transfers by undocumented persons:
"Anyone working in a Western Union I would hope has enough common sense to be able to discern who they should question and who they shouldn't… If a fella comes in with a pair of shaggy boots on, and jeans and a t-shirt, and he's got a straw hat on? I mean, come on! Give me a break!
Cleveland’s email offers up 13 numbered sentences (or sentence fragments) – each of which purports to offer a damning statistic on how much “illegal aliens” are costing the United States. His estimated total cost: “a WHOPPING $338.3 BILLION DOLLARS A YEAR!!!” (more...)
NC Policy Watch
By Rob Schofield
On Friday November 9, State Representative George Cleveland of Onslow County sent a document to all “exchange users” of the North Carolina General Assembly email system (i.e. all legislators and legislative staff) entitled “Interesting Statistics.” Cleveland, you may recall, was the person who uttered this statement in support of his proposal to tax international money transfers by undocumented persons:
"Anyone working in a Western Union I would hope has enough common sense to be able to discern who they should question and who they shouldn't… If a fella comes in with a pair of shaggy boots on, and jeans and a t-shirt, and he's got a straw hat on? I mean, come on! Give me a break!
Cleveland’s email offers up 13 numbered sentences (or sentence fragments) – each of which purports to offer a damning statistic on how much “illegal aliens” are costing the United States. His estimated total cost: “a WHOPPING $338.3 BILLION DOLLARS A YEAR!!!” (more...)
NC Policy Watch
Carolina Journal Weekly Update
Reaction of the Week
RALEIGH — The state’s second highest court rejected attempts by the N.C. Department of Environmental and Natural Resources and the Environmental Management Commission to fine a Nash County property owner $7,500 for failure to submit a comprehensive site assessment for a property he had inherited, reports Michael Lowrey for Carolina Journal.In reaching its decision, the N.C. Court of Appeals found the landowner was not responsible for the contamination on the property and questioned the department’s handling of the matter.A.J. Lancaster Sr. owned and operated a convenience store in Nash County. As part of his business, he sold gasoline, which was kept, as is customary, in underground storage tanks. Groundwater contamination at nearby well sites was detected in tests conducted by Nash County and DENR officials in 1989 and 1991. DENR officials suspected the leak was coming from Lancaster’s tanks and in early 1991 demanded that Lancaster immediately correct the situation. He did not respond to the agency before he died in November 1991.A.J. Lancaster Jr. inherited the property and continued to use the tanks. In 1993, he was informed of new technical requirements for underground storage tanks. After studying the cost of upgrading the tanks, he decided it made more financial sense to have them removed. This was done in late December 1993. Contamination was discovered at that time and 225 cubic yards of soil near the tanks was removed and properly disposed of. He was not alerted by DENR to the possibility of groundwater contamination at the time.
News Features
CJ: State agency, university deny records requests
RALEIGH — The North Carolina Climate Action Plan Advisory Group proclaims its commitment to “transparency,” but when asked by Carolina Journal to provide data and analysis by its consultant, the state-appointed panel had little information to offer.
CJ: Water is emotional, especially when scarceGREENSBORO — Water is a very emotional subject for a lot of people,” N.C. Department of Environment and Natural Resources section chief Tom Fransen said in July. A battle brewing in Guilford County over water, land, and suburban development confirms Fransen’s words.
CJ: Court rules for widow in tax caseRALEIGH — The N.C. Court of Appeals rejected an attempt by Henderson County officials to collect back taxes, penalties, and interest from a widow after they failed to assess property taxes on her house for a decade. The decision by the state’s second highest court might not be the last word in the matter, however, because the N.C. Supreme Court must take the case if the county appeals the ruling.
Black’s son bid high but got jobsRALEIGH — A company owned by the son of former House Speaker Jim Black won contracts to provide pest control at the state’s newest three prisons, although competing bidders offered to do the work at less than half of Black’s price. Black Pest Control was paid $124,000 for prison construction projects in Bertie and Greene counties, although a business in Stafford, Va., bid $42,000 on the same work.
Charter school loophole urgedRALEIGH — Facing flak from parents who want more charter schools and public school supporters who hate the idea, a blue-ribbon commission is borrowing a page from the playbook that agents and general managers use to skirt the salary limits in professional sports.
Upcoming Events
Monday, November 19, 2007 at 12:00 NoonA meeting of the Shaftesbury Societywith our special guest Dr. Michael SaneraReflections on Environmental Journalism based on attending the Society for Environmental Journalists National Convention
Wednesday, November 28, 2007 at NoonSpecial Wednesday Shaftesburywith our special guest Dr. Richard BrakeFailing Our Students, Failing America: Holding Colleges Accountable for Teaching America’s History and Institutions
Thursday, December 13, 2007 at 7:00 p.m.4th Annual Evening of Holiday Cheerwith Our Very Special Musical GuestsA Little Night Music
For full stories, please click on the provided links or visit www.carolinajournal.com
RALEIGH — The state’s second highest court rejected attempts by the N.C. Department of Environmental and Natural Resources and the Environmental Management Commission to fine a Nash County property owner $7,500 for failure to submit a comprehensive site assessment for a property he had inherited, reports Michael Lowrey for Carolina Journal.In reaching its decision, the N.C. Court of Appeals found the landowner was not responsible for the contamination on the property and questioned the department’s handling of the matter.A.J. Lancaster Sr. owned and operated a convenience store in Nash County. As part of his business, he sold gasoline, which was kept, as is customary, in underground storage tanks. Groundwater contamination at nearby well sites was detected in tests conducted by Nash County and DENR officials in 1989 and 1991. DENR officials suspected the leak was coming from Lancaster’s tanks and in early 1991 demanded that Lancaster immediately correct the situation. He did not respond to the agency before he died in November 1991.A.J. Lancaster Jr. inherited the property and continued to use the tanks. In 1993, he was informed of new technical requirements for underground storage tanks. After studying the cost of upgrading the tanks, he decided it made more financial sense to have them removed. This was done in late December 1993. Contamination was discovered at that time and 225 cubic yards of soil near the tanks was removed and properly disposed of. He was not alerted by DENR to the possibility of groundwater contamination at the time.
News Features
CJ: State agency, university deny records requests
RALEIGH — The North Carolina Climate Action Plan Advisory Group proclaims its commitment to “transparency,” but when asked by Carolina Journal to provide data and analysis by its consultant, the state-appointed panel had little information to offer.
CJ: Water is emotional, especially when scarceGREENSBORO — Water is a very emotional subject for a lot of people,” N.C. Department of Environment and Natural Resources section chief Tom Fransen said in July. A battle brewing in Guilford County over water, land, and suburban development confirms Fransen’s words.
CJ: Court rules for widow in tax caseRALEIGH — The N.C. Court of Appeals rejected an attempt by Henderson County officials to collect back taxes, penalties, and interest from a widow after they failed to assess property taxes on her house for a decade. The decision by the state’s second highest court might not be the last word in the matter, however, because the N.C. Supreme Court must take the case if the county appeals the ruling.
Black’s son bid high but got jobsRALEIGH — A company owned by the son of former House Speaker Jim Black won contracts to provide pest control at the state’s newest three prisons, although competing bidders offered to do the work at less than half of Black’s price. Black Pest Control was paid $124,000 for prison construction projects in Bertie and Greene counties, although a business in Stafford, Va., bid $42,000 on the same work.
Charter school loophole urgedRALEIGH — Facing flak from parents who want more charter schools and public school supporters who hate the idea, a blue-ribbon commission is borrowing a page from the playbook that agents and general managers use to skirt the salary limits in professional sports.
Upcoming Events
Monday, November 19, 2007 at 12:00 NoonA meeting of the Shaftesbury Societywith our special guest Dr. Michael SaneraReflections on Environmental Journalism based on attending the Society for Environmental Journalists National Convention
Wednesday, November 28, 2007 at NoonSpecial Wednesday Shaftesburywith our special guest Dr. Richard BrakeFailing Our Students, Failing America: Holding Colleges Accountable for Teaching America’s History and Institutions
Thursday, December 13, 2007 at 7:00 p.m.4th Annual Evening of Holiday Cheerwith Our Very Special Musical GuestsA Little Night Music
For full stories, please click on the provided links or visit www.carolinajournal.com
THANKSGIVING RECESS ACTION ALERT
Yesterday, the House tried to over-ride the President’s veto of the FY 2008 L-HHS-ED bill and it FAILED. The vote was 277-141. 226 Democrats and 51 Republicans voted for the over-ride. On the other hand, 141 Republicans voted against the over-ride. The final vote could have been closer because there were 15 members who did not vote! Roll call vote information below.
The word now is that the Democrats are backing down and planning on splitting the difference with the President’s budget request. This puts funding of domestic programs – health, education, disability – in a “worst case scenario”.
The network needs to send the message that our programs cannot maintain the high rate of advocacy on behalf of children and adults with disabilities and their families without an increase in funding. The increases in the bill are EXTREMELY MODEST – but would make a big difference for the programs that were destined to receive them.
During the Thanksgiving Recess, we strongly urge you to:
1. Call and thank your Representatives that voted for the veto override by explaining how the additional funds would have made a huge difference in the lives of their constituents with disabilities.
2. Call and express disappointment in those Representatives that voted to support the President’s veto by explaining how their constituents with disabilities are negatively impacted by the rejection of these desperately needed additional funds.
3. Call Representatives and Senators from your home state that sit on the Appropriations Committee and explain the need for the important appropriations increases for the P&A programs in the Labor, HHS, Education Appropriations bill to be maintained. As much as possible use state specific facts on the impact these additional funds would have, or the negative impact not receiving these increases would have.
To figure out if you have a Representative or Senator on the Appropriations Committee, you can follow the following links:
House - http://appropriations.house.gov/members110th.shtml
Senate - http://appropriations.senate.gov/members.cfm
When making the calls, you can always call the Capitol Operator (202-224-3121) and ask to be transferred to a specific office.
Representatives and Senators need to hear from you on the impact these funds will have as these decisions are being made over the Thanksgiving Recess and very shortly afterwards. Others will be calling to help their programs, and if the appropriators don’t hear from the P&A system, we may not be able to save the great increases we received. So, take a little time and call.
The word now is that the Democrats are backing down and planning on splitting the difference with the President’s budget request. This puts funding of domestic programs – health, education, disability – in a “worst case scenario”.
The network needs to send the message that our programs cannot maintain the high rate of advocacy on behalf of children and adults with disabilities and their families without an increase in funding. The increases in the bill are EXTREMELY MODEST – but would make a big difference for the programs that were destined to receive them.
During the Thanksgiving Recess, we strongly urge you to:
1. Call and thank your Representatives that voted for the veto override by explaining how the additional funds would have made a huge difference in the lives of their constituents with disabilities.
2. Call and express disappointment in those Representatives that voted to support the President’s veto by explaining how their constituents with disabilities are negatively impacted by the rejection of these desperately needed additional funds.
3. Call Representatives and Senators from your home state that sit on the Appropriations Committee and explain the need for the important appropriations increases for the P&A programs in the Labor, HHS, Education Appropriations bill to be maintained. As much as possible use state specific facts on the impact these additional funds would have, or the negative impact not receiving these increases would have.
To figure out if you have a Representative or Senator on the Appropriations Committee, you can follow the following links:
House - http://appropriations.house.gov/members110th.shtml
Senate - http://appropriations.senate.gov/members.cfm
When making the calls, you can always call the Capitol Operator (202-224-3121) and ask to be transferred to a specific office.
Representatives and Senators need to hear from you on the impact these funds will have as these decisions are being made over the Thanksgiving Recess and very shortly afterwards. Others will be calling to help their programs, and if the appropriators don’t hear from the P&A system, we may not be able to save the great increases we received. So, take a little time and call.
SFY08 1st Quarter Performance Contract Report
We are pleased to send you by electronic mail the following Performance Contract quarterly report documents:
Cover memo from the Division Director
SFY08 1st Quarter Performance Contract Report
Within the next few days, a copy of the quarterly report may be found on the Division of MH/DD/SAS website at: http://www.dhhs.state.nc.us/mhddsas/performanceagreement/index.htm
If you have questions please do not hesitate to contact us by email or by phone at (919) 733-0696.
Cover memo from the Division Director
SFY08 1st Quarter Performance Contract Report
Within the next few days, a copy of the quarterly report may be found on the Division of MH/DD/SAS website at: http://www.dhhs.state.nc.us/mhddsas/performanceagreement/index.htm
If you have questions please do not hesitate to contact us by email or by phone at (919) 733-0696.
Overbilling found in Mental Health Program
Private mental health providers have overcharged the government about
$45 million for a basic, widely used service, a state official said
Thursday.
Until the companies pay the money back, the state is withholding 10 percent
of what they earn as they continue to treat patients.
The state discovered the overcharges when mental health officials reviewed
records of patients who were getting a service called community support.
The reviewers reported thousands of cases of misuse. More than a third of
the clients getting the service did not need it, and companies were spending
too much time on more than 80 percent of the people who needed help. The
state is trying to get money back from 185 providers. It withheld about
$900,000 from a recent round of payments.
Tara Larson, an assistant director in the state Medicaid office, told a
legislative commission Thursday that the overcharge figures were based on
"preliminary work," and that the final numbers aren't in.
Companies started offering community support to children and adults in March
2006. Company workers are supposed to teach skills such as anger control to
people who are mentally ill or are substance abusers, and find patients
other help they might need so they can live at home, stay in school, or find
and keep jobs.
The bills for community support started rolling in, to the tune of
$842 million last year -- hundreds of millions more than the state expected.
As costs ballooned, state officials and startled legislators tried to clamp
down on the companies. The legislature passed a law trying to regulate the
service, and the state Department of Health and Human Services recently
announced new controls.
Costs continue to rise. Over the past four months, the state spent $88
million more for community support than expected. The rate of spending would
exceed this year's $805 million budget for the service.
"This thing's out of control, and for the life of me, I don't see it getting
any better," said Sen. Martin Nesbitt, an Asheville Democrat who helps run a
legislative committee overseeing the mental health system.
Last week, the state said no new companies seeking to be paid with
government money would be allowed to sign up to offer the service.
While new sign-ups are on hold, state officials said they would tighten
rules for worker training and and company qualifications.
The state also wants to rewrite rules to make it easier to take away
permission for companies to bill the government.
From the News and Observer, Lynn Bonner, November 16, 2007
http://www.newsobserver.com/news/story/774722.html
$45 million for a basic, widely used service, a state official said
Thursday.
Until the companies pay the money back, the state is withholding 10 percent
of what they earn as they continue to treat patients.
The state discovered the overcharges when mental health officials reviewed
records of patients who were getting a service called community support.
The reviewers reported thousands of cases of misuse. More than a third of
the clients getting the service did not need it, and companies were spending
too much time on more than 80 percent of the people who needed help. The
state is trying to get money back from 185 providers. It withheld about
$900,000 from a recent round of payments.
Tara Larson, an assistant director in the state Medicaid office, told a
legislative commission Thursday that the overcharge figures were based on
"preliminary work," and that the final numbers aren't in.
Companies started offering community support to children and adults in March
2006. Company workers are supposed to teach skills such as anger control to
people who are mentally ill or are substance abusers, and find patients
other help they might need so they can live at home, stay in school, or find
and keep jobs.
The bills for community support started rolling in, to the tune of
$842 million last year -- hundreds of millions more than the state expected.
As costs ballooned, state officials and startled legislators tried to clamp
down on the companies. The legislature passed a law trying to regulate the
service, and the state Department of Health and Human Services recently
announced new controls.
Costs continue to rise. Over the past four months, the state spent $88
million more for community support than expected. The rate of spending would
exceed this year's $805 million budget for the service.
"This thing's out of control, and for the life of me, I don't see it getting
any better," said Sen. Martin Nesbitt, an Asheville Democrat who helps run a
legislative committee overseeing the mental health system.
Last week, the state said no new companies seeking to be paid with
government money would be allowed to sign up to offer the service.
While new sign-ups are on hold, state officials said they would tighten
rules for worker training and and company qualifications.
The state also wants to rewrite rules to make it easier to take away
permission for companies to bill the government.
From the News and Observer, Lynn Bonner, November 16, 2007
http://www.newsobserver.com/news/story/774722.html
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