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Jim Neal, a Chapel Hill businessman who two years ago was the first openly gay U.S. Senate candidate from North Carolina, has sent out a fundraising e-mail, saying that Cal Cunningham will support gays in the military, Rob Christensen reports.

"Some of the most troubling stories I remember from 2008 were from gays and lesbians who were denied the opportunity to serve in the military," Neal wrote.

"Last night the White House announced its support for congressional legislation to move forward on repealing the discriminatory Don't  Ask Don't Tell policy," Neal wrote. "But so long as Richard Burr is in the Senate, he will undoubtedly vote to keep it in place — and reinstate it if repealed."

Noting that Cunningham is an Iraq veteran, Neal wrote, "he'll fight on behalf of the 13,000 gay service members who were denied the opportunity to serve due to this discriminatory policy and on behalf of all North Carolinians who face obstacles to achieving their dreams."

Jim Neal, a Chapel Hill businessman who ran for U.S. Senate two years ago, has endorsed Senate candidate Cal Cunningham.

"I've watched Cal closely as he’s taken his campaign to the people of North Carolina.  I want to tell you directly – Cal Cunningham is the real deal," Neal wrote in a letter to supporters.

Neal, who received 240,000 votes in the Senate primary in 2008, urged his supporters to vote for Cunningham in the June 22 runoff with Secretary of State Elaine Marshall.

Neal said Cunningham, the former state senator and Iraq War veteran, would usher in a new generation of leadership.

"Cal’s anything but a career politician," Neal's letter said, in a not-so-thinly veiled reference to Marshall. "He's a fresh face and a new voice who will work with President Obama to bring jobs to North Carolinians and to structure an education system that will prepare the next generation of American leaders."

David Young is running for state Democratic Party chair — and he's got some strong backers.

The former Buncombe County commissioner announced the support of outgoing state chair Jerry Meek, Gov. Beverly Perdue, Lt. Gov. Walter Dalton, state Treasurer Janet Cowell and U.S. Rep. Larry Kissell, among others.

In an e-mail to Democrats sent today, Young said he would strengthen county parties, focus on all 100 counties, maintain staff diversity, continue technological advancement and boost fundraising.

"As a self-employed entrepreneur, I have the ability to commit the time necessary to do the job. I will be in Raleigh — and all over the state — to ensure that the job is done right," he wrote.

After an unsuccessful run for the Democratic nomination for state treasurer last spring, Young started a boutique firm offering local government consulting.

The party's executive committee will meet the Saturday after next to decide on the new chair.

District chairman Luke Hyde and vice chair Dannie Montgomery.

Update: Statesville attorney David Parker said he is no longer running for chair after having a "long, pleasant conversation with the governor" and learning of Young's candidacy.

Second Update: Hyde said he's still in the running, though he had earlier said he would not run if Perdue had a favorite.

"I made a commitment to a number of people in the party," he said. "I'm aware now that Mr. Young has several prominent and good supporters, but my word is more important to me than winning or losing."

Third Update: Young has also launched a Web site: www.davidyoungforstatechair.com.

The site was registered on Wednesday.

Fourth Update: Former Senate candidate Jim Neal has announced that he is no longer running.

In a press release, he said it was "an extremely difficult decision" based on the fact that he could not work full time in the job.

He also said that he made the decision while attending the inaugural festivities in Washington. The release does not mention Young's candidacy.

Fifth Update: Montgomery confirmed that she is still running.

"I am in it — to — win it!!!" she wrote in an e-mail to Dome. "It didn't take me two weeks before the election to decide that I want to get up every morning going to work for the NCDP leading us into the future."

Will Gov. Beverly Perdue remain neutral?

The race for the next head of the state Democratic Party is heating up, but for now it appears that the highest-ranking state Democrat will remain on the sidelines.

Luke Hyde, a district chairman who is running for the job, said that a friend spoke to Perdue's staff before he decided to run.

"I asked an emissary to go see the governor for me and ask if she had a preference for state chair. I said I am a team player and if the governor has somebody in mind, I will not oppose her," he said. 

His friend came back and said Perdue would stay neutral.

"I have not heard anything to the contrary since," Hyde said.

So far, Hyde faces vice chair Dannie Montgomery, Statesville attorney David Parker and former Senate candidate Jim Neal in the race. Another candidate who was supposed to announce last weekend has not returned a call from a reporter all week.

Meantime, Parker said that he heard yet another candidate may announce.

Update: Former Wake County commissioner Jack Nichols said he is running for county party chairman, but he has been asked by some people if he would run for state chairman.

"Quite frankly, it really depends on what the governor does," he said.

Previously: Richard Sullivan confirms he's not running.

Richard Sullivan says he's not running.

The Democrat fundraiser had contemplated a campaign for state Democratic Party chairman, but he told Dome Tuesday that he had decided against it.

"I just decided that because of current business interests and small children at home that I couldn't do it in a full-time capacity," he said. "I may serve in another capacity."

That leaves 11th District chairman Luke Hyde, vice chair Dannie Montgomery, attorney David Parker and former Senate candidate Jim Neal in the race.

Sullivan rose in politics as a key fund raiser for Rep. Dick Gephardt and then for Bill and Hillary Clinton. He estimated that he raised a half billion dollars for Democratic candidates and causes. 

The state Democratic Executive Committee will meet in Raleigh on Jan. 31 to select among the candidates.

The winner will replace outgoing chairman Jerry Meek.

Luke Hyde, the 11th district Democratic chairman, is campaigning to suceed Jerry Meek as state party chair.

Hyde, who owns a B&B in Bryson City while practicing law part-time in Raleigh, has been moving around the state seeking support, reports Rob Christensen.

He is touting the Democrat’s success in the mountains, where Democratic Congressman Heath Shuler now holds what had been a Republican seat, as well as other Democratic inroads.

Hyde said if elected he would continue the party’s grassroots emphasis.

"I am a big fan of Jerry,” Hyde said. “He has been an excellent chairman.”

Hyde is the brother of the late Herbert Hyde, a former state party chairman and a well-known state senator. He is married to Leila Tvedt, a former WRAL TV reporter and former executive director of the Agency for Public Television who is now a vice chancellor at Western Carolina University.

The state Democratic Executive Committee meets in Raleigh on January 31 to select a new chairman. Among those consideirng running are Dannie Montgomery of Anson County, the party’s first vice chair; David Parker of Statesville, a Democratic National Committeman; Richard Sullivan of Raleigh, a former national party finance director, and former U.S. Senate candidate Jim Neal.

Former Democratic U.S. Senate candidate Jim Neal is giving some thought to running for state Democratic Party chairman.

Neal, a Chapel Hill businessman, said he had initially rejected the idea when he was approached last summer. But he said he has received much more encouragement in recent days, reports Rob Christensen.

“I have told people I will consider it,” Neal said. “I want to talk to some more people. I want to make sure there is widespread support for the notion. I think it could be fun and a real challenge. It’s something I’d have to make up my mind real quickly.”

The state Democratic Executive Committee is scheduled to meet Jan. 31 in Raleigh to pick a replacement for Jerry Meek, who is stepping down after two terms.

Meek was elected without the support of Gov. Mike Easley, although traditionally party chairs have been backed by the governor. Gov.-elect Beverly Perdue has not said whether she wants to play a role in choosing the new chair.

A number of Democrats are either running for chairman of thinking about it. They include Dannie Montgomery of Anson County, the state party’s first vice chairman; David Parker of Statesville, a Democratic National committeman; Richard Sullivan of Raleigh, a former finance director for the Democratic National Committee; and Luke Hyde, the 11th congressional district Democratic chair.

Kay Hagan says she raised more than $1.6 million in the second quarter.

Though detailed campaign finance reports are not yet available, the Democratic candidate for U.S. Senate announced at noon today that she had $1.2 million in cash on hand.

"This extremely strong fundraising total will enable us to aggressively compete with Elizabeth Dole and spread Kay’s message to as many North Carolinians as possible," said spokeswoman Colleen Flanagan in a statement.

Hagan's previous report from mid-April showed she had raised $1.5 million since her campaign began in October of last year, however she spent much of that money in a primary race against Chapel Hill investment banker Jim Neal.

The Hagan campaign also boasted that she "more than doubled" her number of individual contributors from North Carolina in the second quarter.

Update: Flanagan said the $1.6 million figure includes all money raised from April 1 to June 30. 

She said that more than $1.5 million of that money is from after April 17, when candidates had to file their final pre-primary report.

Jim Neal has changed his mind on the "dream ticket."

The former U.S. Senate candidate had lobbied on behalf of the Draft Obama Clinton group Monday for Barack Obama to select Hillary Clinton as his running mate. 

But he writes on his Daily Kos diary today that he changed his mind after hearing Clinton's (non-)concession speech Tuesday and reading people's reactions to it the following morning.

"Maybe Obama and Clinton are the most formidable duo. There is an argument to be made and I did so a few days ago. However, I've gotta say that I jumped the gun," he writes. 

He says he has "pulled" his endorsement of the movement.

"I'll eat crow on this one without hestitation," he writes. 

Former U.S. Senate candidate Jim Neal is lobbying for Hillary Clinton for vice president.

The Chapel Hill investment banker, who lost the Democratic primary to state Sen. Kay Hagan in May, is the spokesman for Draft Obama Clinton in North Carolina.

The group is pushing for Clinton to be Barack Obama's running mate.

"Both Senator Clinton and Senator Obama have energized millions of new voters, and all of them are committed to seeing a Democrat in the White House in January," Neal said in a statement. "The best way to unite the party is to unite the two strongest candidates our party has ever seen."

Draft Obama Clinton was launched by Citizens Consent, a grassroots organization unaffiliated with either campaign. It launched a draft Kerry-Edwards Web site in 2004, collecting over 100,000 signatures in an online petition. 

In the primary, Neal endorsed Obama, saying he thought Clinton would be great in the No. 2 slot. In recent weeks, he has reorganized his Facebook supporter group, saying he intends to remain involved in state politics.