The variable interest rates on some of North Carolina's state debt have started to return to lower levels.

Sara Lang, spokeswoman for the State Treasurer's Office, said the average rate has dropped about two percentage points since last week. The state has $855 million in variable-rate debt, about 12 percent of the total state debt.

The rates adjust weekly.

For about $500 million, the new weekly rate is an average of 5.66 percent. A week ago it was 7.58 percent. For about $355 million, the new weekly rate is an average of 5.36 percent. A week ago it was 7.49 percent.

The state was paying a rate of under 2 percent three weeks ago. Lang said the state budget assumes a 4 percent interest rate, blunting any immediate impact on taxpayers.

From August to September, the state's monthly payment on the $855 million in debt more than doubled from $1.2 million to $2.5 million.

Richard Moore says the Federal Reserve is welcome to borrow from North Carolina.

In an appearance on CNBC, the Democratic state treasurer said Wednesday that the state's public pension fund would be willing to lend money — at the right price — to try to boost liquidity in the banking industry.

"I'd like to think that Hank Paulson has been as creative as possible. I've got a solution for you this morning, Becky," Moore told the channel's Becky Quick.

If the Congress is not willing to loan this money, if the Fed will give me a guaranteed rate of return — 7, 8 percent — I'll loan them the money, and I think there are a lot of pension plans across the country that would loan money to the federal government at that kind of rate. And I'll give him the fire power he needs to settle this out.

Moore described the heart of the problem as banks being unwilling to loan to each other.

"We really do have a real problem if banks can't trust each other, particularly with short-term trading, so we do need a solution to this and we need it quickly," he said. "But boy, that's easier said than done in our society, isn't it?"

Moore spokeswoman Sara Lang told Dome Thursday that the idea of lending to the Federal Reserve is still only a hypothetical. 

The credit shortage is having an impact on the state's monthly debt payment.

Sara Lang, spokeswoman for the State Treasurer's Office, said Wednesday that the variable interest rates on about $855 million in state debt have gone up the last two weeks. Those rates are now almost five-fold what they were two weeks ago.

For about $500 million, the rate was 1.68 percent two weeks ago. It went up to 4.57 percent a week ago and to 7.58 percent this week.

For about $355 million, the rate was 1.58 percent two weeks ago. It went up to 4.46 percent a week ago and to 7.49 percent this week.

Lang said the difference in the monthly debt payment will be about $1.4 million more than it would have been if the rates had stayed the same. The state budget assumes a 4 percent interest rate, she said, blunting any immediate impact on taxpayers.

"We continue to be hopeful that, if a federal solution presents itself, the markets will settle down and these rates will settle down," Lang said. "We'll continue to watch the situation very closely."

The $855 million in variable-rate debt is about 12 percent of the state's total debt.

Lang said there has been no impact yet on the sale of any state bonds. The last sale was Aug. 12 for $200 million to finance various state construction projects. Lang said another sale is not expected until the spring.

A state workers group has reimbursed Richard Moore's office.

The State Employees Association of North Carolina paid the state treasurer's office $6,000 in legal fees over a public records dispute that led to a lawsuit.

During the lawsuit, SEANC tried to set up a deposition of Moore shortly before one of his debates in the gubernatorial primary. A Superior Court judge denied the motion, giving Moore the right to reimbursement of legal fees related to it.

"It is unfortunate that this unnecessary lawsuit has cost SEANC members, who are hardworking state employees, so much money and energy," said Moore spokeswoman Sara Lang.

Another Superior Court judge dismissed the case in July, but SEANC has appealed it to the N.C. Court of Appeals. General Counsel Tom Harris was asked how far the group would appeal the case.

"As far as we have to," he replied.

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.

Next Tuesday could be pretty busy for Richard Moore.

Attorneys for the State Employees Association of North Carolina want to take a deposition from the state treasurer on a public records lawsuit on that day.

It's also the date that Moore is slated to debate Beverly Perdue.

Moore's new attorney, Kieran Shanahan, has asked a judge to stop the proposed deposition. A hearing on the motion is scheduled for tomorrow morning.

Shanahan told Dome that the timing shows the "political motivations" of SEANC, which has sued to get access to records of Moore's handling of the state pension.

"The deposition of the treasurer on a day when they know he's scheduled to be involved in a statewide gubernatorial debate is a little suspect," he said.

Several other depositions in the case were scheduled for this week, including chief investment officer Patricia Gerrick, public equities investment director Jeff Smith and spokeswoman Sara Lang.

A group of six animal activists protested outside of state Treasurer Richard Moore's office this afternoon, calling the Democratic gubernatorial candidate a "puppy killer."

The protesters were members of the N.C. Animal Defense League, a group that supports an international campaign to end public trading in contract research lab Huntingdon Life Sciences, which has locations in the United Kingdom and New Jersey.

The lab has faced protests over the last several years for its animal testing practices, leading to losses in business partners and profits. 

In 2005, the New York Stock Exchange canceled the listing of Huntingdon's stock after activist pressure. But shares in Life Sciences Research, the lab's parent company, are traded on the N.Y.S.E.'s online Arca board.

Moore currently sits on the board of directors for the New York Stock Exchange Regulation. 

Michelle Matheson, of Chapel Hill, said the campaign has focused on Moore because he is the only governmental member of the board. She said the protesters were not there to ruin Moore's name, noting that he has a good "track record" on the environment.

"We think he should become more consistent," she said.

Stock exchange staffers made the decisions on Huntingdon. Sara Lang, a spokeswoman for Moore, said that the protest was misdirected.

"Treasurer Moore does not make these decisions in his roles with the New York Stock Exchange," she said.

The State Employees Association of North Carolina is running ads against Richard Moore.

The group, which represents 55,000 state workers, ran a full-page ad in the News & Observer, the Charlotte Observer and the Asheville Citizen-Times today.

"State employees to Treasurer Richard Moore: Where are our pension fund documents?" the ad reads. It is signed by all 12 members of the executive committee.

The ad references a recent fight that SEANC has had with the Democratic gubernatorial candidate over a public records request. The group has also filed a lawsuit against Moore's office.

Erica Baldwin, SEANC's assistant director of communications, said that it was the first time in recent memory that the group had taken out such a large ad, but she said it has nothing to do with the ongoing Democratic gubernatorial primary.

"It's not a political statement at all, but a statement about public accountability," she said.

A full-page ad in the front section of the N&O on a Wednesday for a political organization would cost around $7,800, according to this rate card. It could be as much as $10,900 for the Asheville Citizen-Times, according to this rate card. A full-page ad in the Charlotte Observer would cost from $9,855 to $37,125. 

Amanda Martin, general counsel for the N.C. Press Association, said it was an unusual move.

"I have never known of a public records requester bolstering his or her request by an ad in the newspaper or anywhere else," she said.

Update: A spokeswoman for the treasurer's office said in a statement that the ad is incorrect.

"We are disappointed by this move by SEANC, as the Department of State Treasurer has followed both the spirit and the letter of the law in providing documents requested by SEANC," said Sara Lang.

Richard Moore is now answering records requests about state pensions.

The state treasurer, who is running for the Democratic gubernatorial nomination, did not support keeping pension information private, as seemingly required by a recent bill.

After Attorney General Roy Cooper said that the records were public, Moore's office began answering requests for pension information.

One that has been in the news is for state Rep. Thomas Wright, a Wilmington Democrat who the House is currently considering expelling. 

Spokeswoman Sara Lang said that Wright's pension, if he were to have left the legislature on Tuesday, would be $892.20 a month when he hits age 60 in 2015. It could possibly be less if he is found guilty.

The State Employees Association of North Carolina has sued state Treasurer Richard Moore over a public records battle.

In March, the association, which represents 55,000 state employees, filed a records request with Moore's office in the wake of a Forbes magazine article that highlighted Moore's heavy campaign contributions from investment managers that did business with the state's pension fund, which Moore oversees.

The association was seeking, among other things, records detailing who was managing the state's money. The association received some, but not all of what it requested, Ben Niolet reports.

A spokeswoman for Moore said in a recent interview she considered the matter closed, although the association had still not received records detailing how much money the treasurer's office spent on legal advice in its dealings with Forbes magazine.

Then, in October, the association renewed and expanded its records request.

The lawsuit, filed Friday morning is seeking a judge's order that would require Moore to turn over records. It is also asking a judge to force Moore's office to pay for legal and attorney fees.

Update: Sara Lang, a spokeswoman for Moore released a written response to the lawsuit.

"The Department of State Treasurer has followed the spirit, the intent and the letter of the public records law and welcomes a judge’s ruling to that point. We have provided nearly 900 pages of documents to SEANC, and Treasurer Moore stood before the group to personally answer their questions. We have worked diligently to fulfill these complicated, complex and often vague requests. It is disappointing that SEANC leadership would attempt to scare the 820,000 police, firefighters and teachers in the pension fund by calling into question the security of what the Wall Street Journal has called the second best public pension fund in America. It seems this lawsuit has more to do with political games than public information."