More than $18 million in federal economic stimulus money has been approved for water projects in the Triangle and surrounding counties, State Treasurer Janet Cowell announced today.

The Local Government Commission, headed by Cowell, signed off on $18.6 million in spending. The money is administered by the state Department of Environment and Natural Resources.

More than 70 projects have been approved statewide totaling $83.3 million as part of the American Recovery and Reinvestment Act of 2009.

The loans are interest-free to local governments and only half of the principal amount has to be repaid.

Projects include $5 million for a water treatment system in Johnston County and $465,735 to install rain water harvesting systems at 12 locations in Raleigh.

$10.7 million in federal recovery money is headed to the Charlotte area for water projects.

The N.C. Local Government Committee approved the projects announced Monday by State Treasurer Janet Cowell, who chairs the committee. The state Department of Environment and Natural Resources will administer the funds, which are interest-free loans, and only half the principal must be repaid.

Charlotte gets $2.2 million to enhance stream buffers and watersheds, protecting watersheds and preserving wildlife habitat, as well as $600,000 for a water reuse and environmental restoration project.

Gastonia and Hickory received $309,000 and $1.9 million respectively to replace deteriorating sewer lines.

Catawba County will use $3 million to back up the water supply for the town of Maiden and increase fire protection.

Treasurer Janet Cowell will not give bonuses this year.

Last year, the legislature gave the state treasurer the authority to give performance-based pay bonuses to the chief investment officer and four directors of the state pension plan.

But a sagging economy and sensitivity to other state workers led Cowell to put the program on hold this year, said spokeswoman Kerra Bolton.

The decision follows a similar move last week by the N.C. Banking Commission, which held $200,000 in performance bonuses it had budgeted.

Bolton said that the bonus program helps the state compete with private sector firms for people to make investments., noting that 11 of the 13 largest public pension plans have similar programs.

"This is important because high-performing investment professionals increase the chances for above benchmark performance, save systems substantial sums in external management fees, and help to insure the prudent investment and oversight of  public plan assets," she said in an e-mail to Dome.

The House approved a bill that would give state Treasurer Janet Cowell greater flexibility in investing the state's pension fund.

The treasurer oversees the fund, a $55.9 billion pool of money, that pays retirement benefits for teachers and state and local government employees.

Cowell's office was pushing the bill. The target for return on investments in the fund is 7.25 percent. Without the bill, Cowell's office estimates a return of 6.92 percent, which would translate to a $1.3 billion annual shortfall.

Opponents said the bill would allow risky speculation.

"We need to reduce the risk," said Rep. Bill McGee, a Clemmons Republican.

Rep. Pryor Gibson, a Wadesboro Democrat who fended off multiple amendments meant to limit investment options, said the legislature should trust the Treasurer's office to make the right decisions.

"We hire professionals to do a job over there," Gibson said.

The bill must now return to the Senate before it would go to the governor.

A pool of state money used to help students pay for college will empty in three years, according to the state treasurer's projections.

State Treasurer Janet Cowell has told legislative and education leaders the escheats fund —  which consists of money collected from sources such as unclaimed bank accounts, forgotten utility deposits and insurance policy proceeds, plus the investment interest — will be drained by 2012.

The state uses the money for college loans and scholarships, Lynn Bonner reports.

In a letter to legislators earlier this month, Cowell estimates the fund will be $59 million in the red by 2012. "That means money available today for an incoming college freshman for financial aid will not be there by senior year," she wrote.

The fund paid  $210 million for scholarships this school year.

Cowell asked legislators not to withdraw $5 million from the fund, as the Senate approved in its budget, and urged them to maintain a  $200 million minimum balance.

"In addition, I also urge you and  your colleagues to revisit the fund's overall structure and sustainability," she wrote. "We cannot keep our promise to ensure that all North Carolinians have access to higher education if we are depleting the means for them to do so."

Who else might run for U.S. Senate?

With Attorney General Roy Cooper dropping out of a long-expected run against Republican Sen. Richard Burr, only Durham lawyer Kenneth Lewis is left on the Democratic sid, and even he hasn't committed.

Here's a running list of other contenders:

* Richard Moore: Former state treasurer, failed Democratic gubernatorial candidate. Why he might run: Ambitious, rich pol who won statewide office twice. Why not: May have damaged brand with 2008 campaign.

* Brad Miller: Congressman, former state legislator. Why he might run: He was very publicly courted to run in 2008. Why not: He's just hitting his stride in the House; he may have personal issues.

* Cal Cunningham: Former state senator, U.S. Army reservist. Why he might run: He's reportedly interested in the race. Why not: He has low statewide name recognition and no current post to run from.

* Heath Shuler: Congressman, former NFL player. Why he might run: He spent 118 days publicly thinking it over earlier this year. Why not: He may be too conservative for a Democratic primary.

* Charles Meeker: Raleigh mayor who has been mentioned before. Why he might run: Served four terms as popular mayor of one of state's largest cities. Why not: That didn't help Pat McCrory win the governor's mansion.

* Grier Martin: Young turk in state legislature who turned down 2008 recruiting effort. Why he might run: Probably still kicking himself. Why not: Will need tons and tons of money for a guy with no statewide name recognition.

* Bob Etheridge: Congressman, former state schools superintendent. Why he might run: He's won statewide before and is known as an affable campaigner. Why not: He's just landed a spot on the powerful Ways and Means committee.

* Mel Watt: Congressman, former chair of the Congressional Black Caucus. Why he might run: He managed Harvey Gantt's first campaign for Senate. Why not: He's got a can't-lose position in the House.

* Mike McIntyre: Congressman, member of the Blue Dog Coalition. Why he might run: He could match Burr on conservative issues in the general election. Why not: Those same stances would hurt him in a primary.

* Dan Blue: Former House speaker who recently moved over to the state Senate. Why he might run: He ran for Senate nomination in 2002. Why not: His politics may be too liberal for a statewide race; he'd have to give up his seat again.

* Elaine Marshall: Secretary of state now in her fifth term. Why she might run: She ran for the Democratic nomination in 2002. Why not: The longest-serving current member of the Council of State is in a comfortable job now.

* Janet Cowell: State treasurer, former state senator, former Raleigh councilwoman. Why she might run: She's a savvy pol who's climbed the ladder quickly already. Why not: After only a few months in statewide office, it might be too soon.

* Erskine Bowles: University of North Carolina system president, former Clinton chief of staff. Why he might run: He ran in 2002 and 2004. Why not: He lost both times; he's praised Burr; he's already thinking of retiring.

* Elizabeth Edwards: Health care advocate, wife of former U.S. Sen. John Edwards. Why she might run: She's vastly more popular among voters than her husband. Why not: That's not saying much.

State Treasurer Janet Cowell wants Congress to improve the structure of 529 College Savings Plans and increase participation by low- and moderate-income families.

Cowell has urged adoption of legislation that will help families save for college and allow for more flexibility in managing investments in the 529 plans. The Savings Enhancement for Education in College Act would extend the SAVERs Credit to college savings accounts as well as retirement plans, thereby encouraging low- and middle-income families to save.

It also would allow 529 plans to pay for computer equipment and would allow families to adjust their investment allocation more than once a year.

"This bill would give families more flexibility to respond to market conditions and allow 529 plan investment changes twice a year," Cowell said in a statement. "Additionally, by extending the tax credit families will have more incentive to save for their children's future."

Janet Cowell may no longer be a senator, but she's still interested in legislation.

The Democratic state treasurer is lobbying for at least 11 bills in the General Assembly this session, most of which affect her office:

Investment Risk Reduction: Give treasurer's office more flexibility on types of investments for the state pension fund.

Stimulus Reconciliation: Authorizes state to issue different kinds of debt to take advantage of the federal stimulus package.

Treasurer Transparency: Expands treasurer's Investment Advisory Board and sets a standard for assessing decisions.

Property Protection: Limits amount that businesses or individuals can charge for retrieving property held in escheat by the state.

Public Campaign Financing: Expands public campaign finance program to include state treasurer among other offices.

Electronic Reporting: Requires banks and insurance companies reporting large amount of escheats to use state-approved software.

Data Sharing: Permits N.C. Department of Revenue to share certain tax information with the treasurer's office.

Energy Savings Contracts: Removes the cap on energy saving contracts, requires life-cycle cost analyses of conservation measures, among other things.

Pension Corrections: Makes technical corrections to the statutes covering the pension fund and similar state funds.

Retirement COLAs: Addresses cost-of-living adjustments for retirees under the state pension fund and judicial pension fund.

Fire and Rescue Pension: Increases the monthly payment for members of the Firemen's and Rescue Squad Workers Pension Fund.

North Carolina's pension lost about $4.1 billion in the first three months of 2009.

State Treasurer Janet Cowell said Tuesday that the negative 6.4 percent return, which left the pension fund valued at $55.9 billion, was about average.

About 41 percent of the funds are invested in stocks, another 47 percent in bonds, six percent in real estate and the remainder in other investments.

Cowell asked lawmakers to put $358 million into the system over the next two years to make up the losses, but a projected $3 billion budget deficit makes that unlikely. (WRAL)

The Senate Finance Committee, meantime, gave is approval to a bill that would expand the types of investments Cowell can make for the fund, allowing 10 percent more to go into nontraditional investments.

Cowell said that would reduce risk. (Insider)

Janet Cowell cautioned legislators about furloughs today.

In a press release, the state treasurer warned legislators about several fixes for the state budget shortfall that could hurt the state's AAA bond rating.

She said putting off debt payments or depleting the state's rainy day fund could lead rating services such as Moody's to lower the state's financial grade, leading to higher interest rates for public bonds.

Among the short-term fixes she warned could hurt the state: Ordering state workers to take furloughs.

The issue has been a hot topic of late, with Gov. Beverly Perdue saying she does not want them and House Speaker Joe Hackney saying they should be on the table. A bill has been introduced that would give Perdue the authority.

A staffer for Cowell said the release was not meant to take a stance on the issue, but simply to inform legislators.