The State Board of Elections opened a hearing into the campaign finance activity of former Gov. Mike Easley.

Board of Elections chairman Larry Leake called the hearing to order right at 11 a.m., recognized the attorneys representing the various parties involved in the case. Leake then moved the board into a closed session to discuss how to proceed with its criminal inquiry.

David Long, a lawyer for Easley's campaign, rose to question whether Leake meant to call the hearing "criminal."

"The fact that this board is considering a hearing and an inquiry does not in any way suggest or mean that anybody has done anything wrong and any inference to that effect based on the existence of this inquiry or my statements would be erroneous," Leake said.

Leake said that he did mean to say "criminal," but noted that the fact that a hearing was underway did not mean anyone was guilty of a crime.

Easley was not in the hearing room Monday and is not expected to attend regularly.

McQueen Campbell, pictured above left, sat in the front row, drawing looks, camera clicks and murmuring. Campbell has figured prominently in the questions about Easley's campaign finances. And he may be called to testify today.

Senate Republican leader Phil Berger said Democratic Gov. Beverly Perdue's business recruiting trip to New York doesn't make any sense.

Berger, an Eden Republican, said in a news release that Democratic policies, such as a recent tax increase, will eliminate plenty of jobs.

"Governor Perdue continues her erratic behavior this week going on a corporate recruiting trip after she did everything in her power during the last legislative session to make it more difficult to do business and find a job in North Carolina," Berger said. "Democratic policymakers continue the tax-and-spend economic policy that is killing jobs in North Carolina. Do they really hope to draw new businesses from outside our state? Until Democrats reverse course, reduce state government spending, and provide tax relief to businesses and families, North Carolina will continue to see jobs leave."

Democrats, including Perdue, have said the tax increase of nearly $1 billion was necessary to avoid painful cuts to vital state services.

After a rally in Wilmington this morning, Perdue spoke to a group of about 100 educators at South Central High School outside of Greenville.

She called on the group to contact legislators and voice support for education.

"I need you to walk the walk with me. I need you to talk the talk with me," Perdue said, declaring that the state should not cut teachers or teacher assistants and that it should not increase class sizes.

Attendees at the Greenville rally said they like that Perdue is supportive of education, but they said she didn't offer much of a game plan.

"It seemed like it was just sort of a pep rally," said Ellis Harmon, a music teacher from Edgecombe County, who said he was worried about his pay being cut. "She didn't say anything specific."

Others said they thought Perdue was trying to show support for the people who backed her during the campaign.

"I think she's just trying to make sure we're not totally mad at her," said Bonnie Stebnicki, a preschool teacher. "Teachers are the ones who stood out in the rain for her for all those hours."

At a press conference today, a group of legislators spoke about how proposed budget cuts could impact the state's aging population.

The press conference was held in honor of former Sen. Vernon Malone, who died in April. In the Senate, Malone was an advocate for issues facing the elderly.

Among various cuts, the House budget proposed cutting about $50 billion for in-home health services, though $34 million of that would be restored by the proposed revenue package. Cuts also would impact adult care facilities.

"It is our responsibility to protect those most in need, out citizens and the elderly," said Sen. Katie Dorsett, a Raleigh Democrat.

Speakers said representatives succeeded in preventing major cuts to services for the elderly, but they noted that, with the House and Senate representatives beginning to conference on the budget, there is stil a long way to go.

More after the jump.

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It's his second day on the job and Tom Fetzer, the newly elected state Republican Party chairman, is already taking shots at the Democrats.

In his first press conference, Fetzer called on the Democrats to cancel a June 26 legislative fundraiser that he said violates the spirit of ethics laws.

The fundraiser is a reception for state legislators, and tickets range from $50 for individuals to $1,000 for sponsor groups. State Democrats said the party hosts this reception annually to recognize senators and representatives.

Fetzer said hosting the reception while the legislature debates the budget invites the perception the Democrats are allowing interest groups to influence the process.

"This is wrong, the timing is wrong," Fetzer said. "The Democratic party needs to cancel this fundraiser."

State law prevents legislators from raising money from political action committees while the legislature is in session. It does not prohibit the party from raising money. Fetzer said the Democrats should wait until the end of the session like the Republicans.

"At the very least this creates the appearance of pay-to-play politics," he said in a statement.

Correction: A previous version of this post misstated fundraising restrictions on legislators.

Kay Hagan announced today that her campaign has raised $1.5 million since her candidacy began in October.

Hagan's campaign said that almost $1 million has been raised since January, and that 85 percent of her individual contributins came from North Carolina residents.

Hagan, a state senator from Greensboro, faces Chapel Hill investment banker Jim Neal in the Democratic primary for the U.S. Senate.

"Our strong fundraising effort ensures we’ll have the resources necessary to move through the primary into the general election, to talk to more and more voters, travel the state, and continue building momentum to victory," Hagan said.

Eric Montross, left, Montross' son Andrew and Gov. Mike Easley at halftime during the UNC-Virginia Tech basketball game Saturday. (Courtesy of governor's office)

Bob Orr said the Republicans can do a better job at managing the N.C. Department of Transportation.

The Republican gubernatorial candidate said at a press conference today that Democratic control of the department has led to a lack of accountability.

"We're going to change the culture to put the public interest ahead of the special interests," he said.

The plan listed four key areas of reform:

* Appoint professionals to the Board of Transportation and ensure accountability through an open project approval process and rewards for productive department employees.

* Reorganize the department into geographic regions and place the N.C. Turnpike Authority under the department umbrella.

* Set measurable goals and establish minimum qualifications to sit on the board while reducing its size to 14 members.

* Utilize funds efficiently through consolidation and outsourcing and expand financing through the use of toll roads and public-private partnerships.

The N.C. Academy of Trial Lawyers has announced its support of five judicial candidates and three Council of State candidates.

The Academy endorsed Janet Cowell for state Treasurer and Secretary of State Elaine Marshall and Insurance Commissioner Jim Long received its endorsement for re-election.

The group also will back Court of Appeals incumbents Chief Judge John Martin, Judge Jim Wynn, and Judge Linda Stephens, as well as Supreme Court challenger Suzanne Reynolds and Court of Appeals challenger Wake County District Court Judge Kristin Ruth.

Previously, the group endorsed Beverly Perdue for governor.

Academy Chief Executive Officer Dick Taylor said the Academy will consider more endorsements as the campaign season continues.