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As noted in today's story, Gov. Bev Perdue is still sitting on $1.26 million as her would-be Democratic successor struggled to raise money. More details from her report:

Perdue started the year with $2 million. Since July, she directed $250,000 to the state Democratic Party and refunded $243,000 to individual donors. A campaign aide said she also gave $4,000 to Dalton, but the donation is not reflected in the records.

Gov. Bev Perdue ended her re-election bid in January but the Democrat's campaign spent nearly a quarter-million dollars  through June, including more than $80,000 in legal fees.

A campaign spokesman said the legal bills related to a criminal investigation of the Perdue campaign involving unreported flights on private jets and alleged under-the-table payments to a staffer. Two campaign aides and a major donor were indicted in November on charges of obstruction of justice. Perdue does not face any criminal charges.

Three hefty legal bills -- totally about $35,000 -- from May and June are not related to any recent probe, said Marc Farinella, a consultant speaks for the Perdue campaign. He said the lawyers -- criminal defense attorney Wade Smith's firm, John Wallace and another Wilmington firm -- represented campaign staffers who were interviewed as part of the probe, with most costs incurred in 2011. The latest activity dates to February and the lawyers waited to bill the campaign "to make sure there was not additional activity," Farinella said.

The N.C. Democratic Party has begun a process to replace Executive Director Jay Parmley, who resigned Sunday after allegations surfaced about the sexual harassment of a party staffer and a secret financial settlement.

But it sounds like the process of finding a replacement -- which is especially important with North Carolina as a battleground state in this election -- won't happen immediately.

David Parker, the embattled party chairman, who is facing calls for his resignation, sent an email to party officials Tuesday naming a search committee that includes the eventual winner of the May 8 Democratic primary for governor. 

Former Charlotte Mayor Pat McCrory made it clear that he doesn't think much of Democratic Gov. Bev Perdue's handling of the mental health issues.

At a women's luncheon in Raleigh on Tuesday, he said mental health is one of the most difficult issues facing the state.

The likely GOP candidate for governor said he still doesn't the closing of Dorothea Dix Hospital.

“It made no sense to me at the time to close something when you are are short of beds,” McCrory said in response to a question from the audience. “And it still doesn't make sense. I don't know what the executive branch's long-term strategy is. It's a tough issue. “

“Our emergency rooms and our jails are full of people with mental health issues.,” McCrory said.

He referred to an AP article that noted an internal review of conditions at Central Prison where inmates with serious mental illnesses were neglected by staff. He called it “inexcusable.”

“They (Perdue administration) have to be talking about. The last three years they are not talking about it. It's as if in the last three years they are off in another room.”

Marc Farinella, a Perdue political consultant, said McCrory's comments were hypocritical.

“Gov. Perdue's proposed budget invested an additional $75 million in mental health to address the very problems McCrory is referring to, but he and the Republican legislature opposed her budget and failed to include these funds in her own budget,” Farinella said.

Gov. Bev Perdue is running for reelection.

After Dome posted a copy of an invitation to a fundraiser in Charlotte next week that said "Governor Perdue 2012," campaign spokesman Marc Farinella confirmed that the Democrat "has every intention" of seeking a second term.

"Governor Perdue has every intention of running for re-election in 2012 but a formal announcement will wait until later," Farinella said in an e-mail. "At present, she is focusing on helping the private sector create and preserve jobs, strengthening our system of education, and reforming government."

Perdue could face an uphill fight to win a second term. Recent polls peg her approval rating in the low-30s to mid-20s, her 2008 campaign is under an ongoing criminal investigation and her party just lost control of both chambers of the state legislature for the first time in more than a century.

Joe Sinsheimer, a Democratic political consultant who has been outspoken about the need for the party to head in a new direction, said news that Perdue plans to seek reelection will cause consternation.

"Politicians with approval ratings in the low-30s rarely run for reelection," Sinsheimer said. "If the governor doesn't drastically improve her performance over the next six months there will be a large contingent of the Democratic Party that will ask her to reconsider."

N.C. Republican Party Chairman Tom Fetzer accused high-ranking officials at the State Board of Elections of stifling a real investigation into the campaign of Gov. Bev Perdue.

Fetzer said he intends to ask Wake County District Attorney Colon Willoughby to launch an investigation into the actions of elections board Chairman Larry Leake, Executive Director Gary Bartlett and John Wallace, an attorney for Perdue's campaign.

Fetzer said the election's board report details several instances where Leake and Bartlett limited or delayed the scope of an investigation into gubernatorial campaigns, particularly Perdue's.

"Gary Bartlett, Chairman Leake and John Wallace colluded in an attempt to derail, distract and obstruct the investigation of the State Board of Elections staff into the financial irregularities and illegalities of the Perdue for Governor campaign," Fetzer told reporters Monday.

Marc Farinella, a consultant for Perdue's campaign said Fetzer's complaints are unfounded and a political stunt.

“We believe that most observers recognize that it’s time to move on. Not surprisingly, among the few who do not agree is Mr. Fetzer, who is now rumored to be preparing for his own gubernatorial campaign," Farinella said in a statement. "Unhappy with the SBOE report, Mr. Fetzer is now accusing the SBOE Executive Director and SBOE Chairman of engaging in activities ‘that may be categorized as obstruction of justice.’"

The Democrats for decades have had their annual Jefferson-Jackson fund raising dinner in Raleigh.

But on Saturday, some 400 to 500 Democrats are expected to gather at the Durham Marriott Convention Center, Rob Christensen reports.

David Young, the state Democratic chairman, said he wanted to see the Jefferson-Jackson Dinner moved around periodically and he said Durham was a good place to start because of its strong Democratic showing in last year’s election.

The featured speaker at the $100-per plate dinner is national Democratic chairman Tim Kaine, the governor of Virginia. North Carolina Gov. Beverly Perdue invited Kaine, and she will be on hand to play host.

The appearance by Kaine is another indication that the Obama administration is paying a lot of attention to North Carolina. Both President Barack Obama and First Lady Michelle Obama have visited the state.

More after the jump.

Barack Obama's uphill win in North Carolina was led by a veteran operative.

Marc Farinella, 50, grew up in New York and Chicago, entering the latter city's politics with a reputation as an egghead. He became campaign manager and chief of staff to Missouri Gov. Mel Carnahan, who defeated Sen. John Ashcroft in 2000 despite dying weeks earlier.

He worked as a strategist for Erskine Bowles' unsuccessful Senate campaign in 2002 and Lt. Gov. Beverly Perdue's re-election campaign in 2004.

He started 2008 working for Indiana Sen. Evan Bayh, who decided not to get into the race, then came to North Carolina for Obama in July.

The Obama organization had about 50 offices and 23,000 volunteers. Farinella spoke to former Gov. Jim Hunt as often as twice a day.

He said he is considering moving to North Carolina. (N&O)

The presidential campaigns are reaching out to North Carolina in different ways.

In recent weeks, the campaigns of both presumptive Republican nominee John McCain and Democrat Barack Obama have been e-mailing and calling Dome in earnest.

For now, McCain is more active, but Obama may be putting more resources here.

Starting in late June, McCain's regional communications director, Mario Diaz, began contacting Dome with press releases and suggestions for stories.

A former TV anchor from the Tampa area, Diaz works on the Carolinas, Georgia, Alabama and Florida out of a Tallahassee office.  

Obama's campaign was in regular contact with Dome leading up to the May 6 primary, though communications fell off after the circus left town. 

It's still not ramped back to the previous level — if it ever will — but in mid-July, Obama named Marc Farinella state director for his campaign.

Farinella knows North Carolina well, having worked for Erskine Bowles' Senate bid in 2002 and Lt. Gov. Beverly Perdue's re-election in 2004.