Funds can be used, AG says

N.C. Attorney General Roy Cooper declared Monday that a nearly $14 million reserve fund, which was divided and placed in three state agencies, is legal.

"We have been unable to identify any specific violation of law or regulation in the process outlined by the (State Auditor's) Report," stated Cooper's advisory opinion.

But Cooper, while upholding the legality of their actions, criticized their methods, saying even the appearance of impropriety still is a matter of serious concern.

" - It is clear that the manner in which state money was directed is problematic for its secrecy, its lack of accountability and its end-run around the legislative process," the report states.

Regardless of accountability, nearly $13 million already has been allocated to programs throughout the state. House Speaker Jim Black, D-Mecklenburg, former House co-speaker Richard Morgan, R-Moore, and Senate President Pro Tempore Marc Basnight, D-Dare, had discretion over the allocation of funds.

The creation of a new state job also raised eyebrows when it was summarily filled by former Rep. Mike Decker, who switched political parties in 2003 and thus allowed for the continuation of a co-speakership in the House. Political favoritism was suspected.

Cooper's report found that two other candidates were interviewed for the position before Decker was hired. While this did confirm that the position was not gift-wrapped for him, the report states that the hiring process was neither open nor fair.

The fairness of distribution also was a point of contention.

Julie Robinson, spokeswoman for Black, said the programs went through an approval process before receiving funds.

"All projects had to meet strict criteria to prove they were eligible for state funding," she said. "If they did not meet that criteria for state funding, they did not receive any funding for that program."

But in Cooper's report, project accountability was cited as one of the three major inadequacies in funds appropriation.

Mecklenburg County is one area expected to receive funds, but Dumont Clarke, a Mecklenburg County Commissioner, said he did not know of any specific programs that are receiving funds.

"I think the money went to some worthy causes just because I know Jim Black, and I trust his judgment," he said. "He is a good man who has worked very hard on behalf of the people of this state."

Robinson said projects are being undertaken throughout the state and not just in the home counties of the legislative leadership.

"These projects went to districts all across the state," she said. "Almost every Democratic member (received money for a project), and I know that former co-speaker Morgan helped several Republicans."

The partisan slant to the distribution of funds is a concern to some, but more than that is the blow to public accountability.

"I think public officials have a responsibility to keep the public trust," said Lynda Clay, chairwoman of the Carteret County Board of Commissioners.

Ensuring public trust is something Cooper addressed in his report with recommendations to avoid controversy in the future, stressing transparency and accountability.

In the 2005-06 state budget, Robinson said, all projects to be taken up were specifically itemized, instead of establishing a reserve fund.

 

Contact the State & National Editor at stntdesk@unc.edu.