State's interest rates coming down

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.

Moore: I saw financial crisis coming

Richard Moore says he has known for some time that something was up with the U.S. financial system.

WUNC radio reporter Jessica Jones asked the Democratic state treasurer whether, as an observer of Wall Street, he saw problems coming.

"Yes. Absolutely," Moore said in a segment dated Thursday. "Exactly when it was going to happen, what form it was going to take, I can't tell you I knew that. But everybody that I know of who was conservative and who wasn't getting paid to say, 'Everything is great,' kept wondering, 'How can you continue to have real estate prices go up, commodity prices go up, tremendous amounts of loans being made?'"

Moore also blamed poor enforcement of leverage requirements.

"There's a reason we put those regulations in place coming out of the Great Depression," he said. "We really have gotten away from that. And I'm not trying to sound partisan, but we have gotten away from that the last five to seven years."

In February, while he was running for governor, Moore said the state's roughly $70 billion pension fund had largely avoided securities backed by subprime loans.

Forgot to carry the one million

When you flub your checkbook, the mistake is probably worth a few bucks.

When the state treasurer botches the books, it can mean $141 million.

State Auditor Les Merritt released a report Tuesday that was part of a larger look at state finances. It showed that financial statements prepared by Treasurer Richard Moore's office contained a few bookkeeping errors. Moore is a Democratic candidate for governor.

The errors found in a routine audit included an understatement of $141 million, an overstatement of $80 million and misclassification of millions more.

No money is missing and the errors appear to be just that — bookkeeping mistakes. In a response to the auditor's findings, Moore's office wrote that the mistakes were minor and the milliions were a tiny fraction of the total funds Moore's office handles. Moore's office has already improved its processes, according to the report.

"We strive for total accuracy in all aspects of our agency's functions," according to the response from Moore's office.

SEANC sues Moore over public records

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."

What does the Banking Commission do?

Answer:

Oversees the activities of the office of the Commissioner of Banks, reviews bank merger, charter and relocation applications and North Carolina banking laws.

The Commission consists of the state treasurer and 21 appointed members. Thirteen members represent the borrowing public, six are practical bankers and two are savings institution CEOs.

The governor or the General Assembly appoints commission members. The commission meets every two months in Raleigh.

Study: Most state treasurers elected

While the schools superintendent may be in the minority, most states elect the treasurer.

According to the National Association of State Treasurers, 37 states, including California, Florida and South Carolina, elect their treasurers. Almost all serve four-year terms, with the exception of Tennessee and Vermont, where they serve two years.

In the other 13 states, treasurers are appointed, usually by the governor or state legislature.

North Carolina is one of 22 states that do not limit the treasurer's number of terms.

John Haywood was the longest-serving treasurer in state history. Haywood served for 40 years until his death in 1827. Harlan Boyles, who left office in 2000, served for 24 years.

After two terms, current treasurer Richard Moore is running for governor.

What does the state treasurer do?

Answer:

Manages the state's investments, administers budget funds and chairs the N.C. Banking Commission.

As the state's chief financial officer, the treasurer manages more than $75 billion in state funds and administers the General Fund, Highway Fund, and Highway Trust Fund.

The treasurer also administers a number of state investment programs, including retirement, pension and worker's compensation.

In addition, the treasurer serves on the State Board of Education, the N.C. Board of Community Colleges and the boards for the state's public employee retirement systems. The treasurer works with the state's 401(k) and 457 plans offered to public employees.

The treasurer is one of eight members of the Council of State, which oversees spending of tax dollars and conducts business on behalf of state government.

North Carolina is one of 36 states that elect treasurers by popular vote, and 22 states that do not have term limits for the office.

John Haywood was the longest-serving treasurer in state history. Haywood served for 40 years until his death in 1827. Harlan Boyles, who left office in 2000, served for 24 years.

What is the State Board of Education?

Answer:

A 13-member board that sets the state's education policy.

Eight members of the board are appointed by the governor from geographical districts, while three represent the state at-large. The lieutenant governor and the state treasurer also serve on the board.

The board approves school curricula and tests, authorizes hiring top staffers of the Department of Public Instruction, and writes a budget request to the governor for education spending.

The superintendent of public instruction then implements those plans.

Board members are not paid, although they receive a meals stipend for meetings.

The board was created in the post-Civil War constitution of 1868. Originally it was made up of other state elected officials, such as the governor and the secretary of state.

In 1942, a state constitutional amendment changed the board's makeup.

In the 2008 gubernatorial primary, Republican candidate Bob Orr called for the board to be elected, rather than appointed.

Who is on the Council of State?

Answer:

The governor, lieutenant governor and eight other top statewide elected officials.

The other officials are the secretary of state, attorney general, auditor, treasurer, superintendent of public instruction and commissioners of agriculture, insurance and labor.

Typically, the council meets monthly to approve land purchases, condemnations and right-of-way easements, but it also sometimes deals with weightier issues.

In February of 2007, the Council of State was asked to approve an execution protocol that would involve doctors. It voted 7-3 in favor.

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