Gov. Mike Easley should not have diverted $225 million headed to the state pension fund, a judge said.

An Appeals Court ruled Tuesday that Easley should not have intercepted $225 million for the state employee pension to cover a budget shortfall in 2001. 

Though the state repaid the money and pension benefits were not affected, the 14 former and current state workers who first sued in 2002 wanted to ensure that it didn't happen again.

Republican Gov. Jim Martin also withheld pension money in 1991.

"It's a great ruling for the teachers and the state employees," said Hardy Lewis, an attorney representing the plaintiffs. "It essentially says the government can't use the pension fund as a rainy-day fund." (AP) 

State spending was in the news this week.

The most-read posts on Under the Dome from last Sunday to noon today included gatherings with the contradictory goals of cutting spending and boosting state worker pay. Also, both state budget writers and an imprisoned legislator have less to spend.

1. Take Back Our State: More than 1,000 activists rally in front of the legislature to hear Bob Dole tell jokes and Pat McCrory keep the beat. But no rim shots.

2. Give Back Our Raises: More than 200 state workers rally at — wait for it — the legislature to ask for a 3 percent raise in the state budget. Talk about the beat of a different drummer.

3. Hands Off Our Pension: Meanwhile, a group representing state workers spends some of their money on a full-page ad in the N&O. Dome stays employed for another week.

4. Cut Back Our Spending: The taxman tells lawmakers they'll have $70 million less to spend. Good news for those at No. 1 above, bad news for those at No. 2?

5. Cut Back My Spending: Disgraced former House speaker Jim Black pays a $1 million fine for taking cash in bathrooms. He'll have to cut back at the prison commissary.

The State Employees Association of North Carolina has taken its case to the newspapers, again.

In a full-page color ad in the front section of today's N&O, the state workers group promotes a House bill that would transfer control of the state pension away from the state treasurer to a board appointed by the governor and legislative leaders.

"Q: Why does the North Carolina retirement system need reform?" the ad says, above a photo of a mournful-looking couple. "A: $4 billion lost in 4 months."

The ad cites a May 30 story in the Triangle Business Journal that noted the value of the pension fund for state workers and teachers dropped from $43 to $38 billion in the first quarter of 2008 due to the drop in the stock market.

In an interview, SEANC spokeswoman Toni Davis would not say whether the pension fund lost value because of mismanagement by Moore or just a poor economy.

"All that we are saying with that ad is that we woud like for the General Assembly to consider legislation that would have an investment board rather than a state treasurer," she said.

State Treasurer Richard Moore's office said that the ad was "irresponsible scare tactics."

"It is unfortunate that SEANC continues to scare retirees and public workers about their pension fund," said spokeswoman Sara Lang in a statement. "North Carolina's pension fund is one of the best in the country, and our conservative investment strategy means that members can count on their benefits to be there for them."

It cost around $9,500 to run the ad.

The head of a state workers' group said claims of bribery are "crazy allegations."

Dana Cope, president of the State Employees Association of North Carolina, told Dome after a hearing today that he was involved in an offer by attorney Tom Harris to drop a public records lawsuit if state Treasurer Richard Moore would back a bill.

He said that the records request was directly related to the bill, which would transfer the treasurer's role in managing the state pension fund to a board of trustees.

"The only reason why we sought the public information request is to make an independent determination is there a pay-for-play going on," he said. "If that is true, that would help us obtain a statutory change that we filed last legislative session in order to reform the system like every other state in the country."

He said Moore's attorney, Kieran Shanahan, was trying to "take the public's eye off the ball."

"Shanahan shenanigans are in play here," he said.

Judge Jim Hardin did not make a ruling on the allegation or the motion to dismiss the case today.

Immigration, energy efficiency, and soccer.

These are just a few of the topics taken up by state Sen. Kay Hagan in the current legislative short session. The Democratic nominee for U.S. Senate sponsored one and cosponsored 10 non-budget bills so far in 2008.

Two bills seem most likely to come up in her race against U.S. Sen. Elizabeth Dole. The first, which she cosponsored, would require employers use the federal E-Verify program to check that employees can legally work in the United States.

That program, you may recall, was touted by former Republican gubernatorial candidate Fred Smith, who used it at his road- and home-building businesses.

Another bill she cosponsored would create a state sales tax holiday for a week each April on energy-efficient light bulbs, home appliances, electronics and insulation. It would be similar to the popular back-to-school holiday already in effect.

On a lighter note, the bill she sponsored could also be used to remind political commentators of a popular swing vote constituency: Soccer moms. The bill would create a special "Support Soccer" license plate.

Other bills she cosponsored: Change the local requirements for recall petitions in the city of Greensboro. Increase the monthly pension for retired firefighters and paramedics. Limit or exempt baked goods from the state sales tax. Increase benefits from the State Health Plan. Allow the legislature to meet in Greensboro one day for its centennial. Honor Korean War Veterans. Commemorate Israel's 60th anniversary.

Democratic gubernatorial candidate Richard Moore's latest TV ad contrasts his management of the state pension fund with Beverly Perdue's business record.

Democratic gubernatorial candidate Richard Moore's latest ad boasts about his work on the state's pension fund and on the minimum wage, Ben Niolet reports.

What the ad says: "Eight hundred thousand workers and seniors know the truth about Democrat Richard Moore. He built the nation's second strongest retirement fund. A bulldog pushing for corporate accountability. Moore's protected consumers and increased North Carolina retirement funds by billions. And he'll do the same as governor. Cut property taxes for seniors. Tuition-free community college, and raise the minimum wage again. Richard Moore. A Democrat who will always stand up for you."

The background: As state treasurer, Moore oversees the state's pension fund, which holds retirement money for about 820,000 employees of state and local government. Under Moore, the pension fund was ranked second by Standard & Poor's among public pension funds on its ability to pay its obligations.

A September 2003 story in The News & Observer ran under a headline that described Moore as a 'bulldog.' The story focused on how Moore, then in his first term as treasurer, had gained national notoriety for pushing for investment firms to disclose conflicts of interest. He has also called for better corporate governance.

Moore's office estimates that money management decisions made under his tenure have generated $6.9 billion for the pension fund.

Moore has plans to cut property taxes for seniors and offer free community college tuition for high school graduates who go directly into community college. He supports raising the minimum wage. The ad's text could be interpreted to mean that Moore had previously raised the minimum wage. In 2006, he pushed business leaders and others to support a $1 an hour increase. But ultimately, it was the legislature that approved an increase.

Is the ad accurate? Yes, although the ad could leave viewers with the impression that Moore personally raised the minimum wage. He supported the increase, but it was the legislature that raised the minimum wage.

Democratic gubernatorial candidate Richard Moore's latest ad casts him as a "bulldog" who will fight for voters and defends his record of handling the state pension.

The Professional Fire Fighters and Paramedics of North Carolina endorsed Richard Moore.

The union, which has 2,500 members across the state, cited the Democratic gubernatorial candidate's experience as secretary of crime control and public safety.

"Richard Moore has a track record and experience unmatched by any other candidate in this race," said president David Anders in a statement.

He also cited Moore's work as state treasurer managing the pension fund for public employees, including firefighters.

The union is an affiiliate of the state AFL-CIO coalition, which earlier declined to endorse a candidate in the governor's race and let member unions make their own endorsements.

Moore has also been endorsed by AFL-CIO member UNITE HERE.

Beverly Perdue and Richard Moore took parting shots at each other.

In her response to the final question, Perdue said that she wanted the viewers at home to think about what they want in their next governor. She said that Moore has taken "about a million and a half dollars" from people who work for investment firms that want to work with the state employees' pension fund, which Moore oversees.

"Do you want a candidate who's from Wall Street or a candidate who's from Main Street?" she asked.

In his concluding remarks, Moore then took aim at Perdue's upbringing in Grundy, Va.

"I would like to point out that I'm not from Wall Street," he said. "I'm actually from North Carolina—and not from Virginia."