Les Merritt, CPA

State Auditor of North Carolina

 

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The Dispatch (Lexington, N.C.)

July 6, 2005


Editorial:  State auditor uncovers additional details concerning legislative leaders' slush funds

 

We were glad to see State Auditor Les Merritt investigate how legislative leaders were able to hand out as much as $24 million of our tax dollars in 2003 for favorite projects.

This money was used to fund things that had either not been discussed in legislative committee meetings or even some that had been rejected in earlier budget bills.

Merritt sent a copy of his report to Attorney General Roy Cooper because state law prohibits spending money on projects that were voted against in previous budget votes. He found 11 things purposely excluded from the budget by name, but they got funded anyway by the legislative leaders.

This sudden slush fund materialized at the last minute on the final day before the start of the 2004 fiscal year. That's when fiscal researchers forecast that the state would have more revenue than originally thought.

Senate leader Marc Basnight and House Co-Speakers Jim Black and Richard Morgan decided to divide the money. Basnight controlled $6.5 million, and it is reported the House chieftains split an additional $10 million evenly. Other reports, however, have said Black's share was $4.6 million and Morgan's was $2.9 million. They also controlled $10 million in the Department of Transportation funds.

They didn't identify how the money would be spent when the final version of the budget went to the full Senate and House. Instead it was put in the massive budget document as reserve funds so members wouldn't notice it and begin asking questions.

Among other expenditures, Basnight directed that $1 million go to historic Old Salem, $400,000 to the Exploris Museum in Raleigh, $50,000 to Rutherford County's 225th anniversary celebration and $500,000 to the Turnage Theaters Foundation in Beaufort County.

Black and Morgan spent "their" loot in their home districts and those of their House allies.

Morgan, R-Moore, designated $1 million for a senior enrichment center in his home county and spread the rest of the money around to senior centers and nonprofit agencies in House districts represented by lawmakers who were political allies.

That even included money from the Republican for the Metropolitan Community Health Services in Beaufort County, which is headed by a Democrat.

Black came up with an additional $100,000 for the Turnage Theaters Foundation and $150,000 for the Historic Bath Foundation, both in Beaufort County. No wonder state Rep. Arthur Williams III, D-Beaufort, says Black "is the best guy in the world to me. ... The taxpayers send their money up there (Raleigh), and I feel like it's my job to try to get what I can back for Beaufort County."

Black also provided $45,000 to give former state Rep. Michael Decker a state Cultural Resources job after he lost in a Republican primary. The state auditor reports a Black assistant had the job posting changed "to tailor the position to Mr. Decker."

Legislative leaders say what they did was legal. We hope the courts get to decide that. But legal or illegal, we know that's an underhanded and shameful way to treat the public's money.

 

Paid for by the Les Merritt Committee - P.O. Box 37548 - Raleigh, NC 27627