The Latest: McCrory officials talk about prison contracts

RALEIGH, NC (AP) — The latest on a North Carolina General Assembly government oversight committee meeting Wednesday to discuss several issues, including some state prison maintenance contracts and decision by the University of North Carolina Board of Governors.

5:35 p.m.

Two Cabinet-level officials in Gov. Pat McCrory’s administration say the governor never directed them to extend or expand prison maintenance contracts held by a company owned by a McCrory donor and friend.

Department of Public Safety Frank Perry and State Budget Director Lee Roberts gave the response to a question Wednesday while appearing before a General Assembly committee.

Roberts told the panel how he evaluated at McCrory’s request whether it was cost effective to keep private maintenance at three prisons. The administration extended contracts for Graeme Keith Sr.’s company for another year. Now they’re set to expire again.

Perry said he heard Keith talking about political donations he had given over the years and it was time to get something in return. Perry said he found such comments inappropriate.

4:45 p.m.

The acting chairman of the University of North Carolina’s governing board says in hindsight members should have voted in public last month on salary increases for 12 campus chancellors.

Louis Bissette made the comments Wednesday to a General Assembly oversight committee that requested Board of Governors officials to address compliance issues with the state open meetings laws. The board voted behind closed doors Oct. 30 in favor of the raises, some of which approached 20 percent.

Bissette said there was no requirement that the votes be done in an open meeting. But he says it would have been in the board’s best interest to decide on such a topic like salaries of university executives in the open.

Bissette the board will be working on expanding transparency in its activities.

4 p.m.

Two leaders of a large North Carolina public school district have gotten grilled by Republican lawmakers on a General Assembly committee about whether they intend to comply with a new law regarding low-performing schools.

Winston Salem/Forsyth County schools Superintendent Beverly Emory and board chairwoman Dana Caudill Jones visited the oversight panel Wednesday in Raleigh. Senate leader Phil Berger said he was concerned about board resolutions on recent General Assembly actions.

Emory said they are complying with the law but mentioned challenges in carrying it out moving forward. That still didn’t sit well with Berger and Sen. Bob Rucho, R-Mecklenburg, who said lawmakers aren’t satisfied with mediocre student performance levels.

The committee also asked about personnel decisions involving a Forsyth system teacher now leading the North Carolina Association of Educators.

3:30 p.m.

Some North Carolina lawmakers want the Department of Health and Human Services to move ahead with pending mergers of local mental health agencies, although the agency’s head has called for a pause while details of a long-term Medicaid overhaul are decided.

DHHS Secretary Rick Brajer wrote a memo last month delaying decisions on requests for these combinations until early next summer. This contrasts with policies that have envisioned as few as four local management entities. His decision means a pending merger between CenterPoint and Cardinal Innovations is delayed.

Brajer deputy Dave Richard told a legislative committee Wednesday the agency is taking time to ensure decisions align with Medicaid plans being unveiled early next year. Still, Sen. Fletcher Hartsell of Concord said he wants Brajer to reconsider the pause.

12:40 p.m.

Top General Assembly lawmakers have formally asked the State Auditor’s Office to review programs run by state agencies and the state personnel office that offer supplemental insurance benefits, in light of the recent criminal indictment of a former benefits manager.

The Joint Legislative Commission on Governmental Operations voted Wednesday to request investigative reviews from State Auditor Beth Wood. She’s supposed to report on progress by June.

The decisions follow a commission presentation about the “NC Flex” plan by state Human Resources Director Neal Alexander, particularly the events that led to fraud-related charges last month against a now-retired NC Flex manager. Alexander says financial controls are now in place to prevent potential future NC Flex problems.

The indictment alleges the ex-manager improperly took $250,000 for personal use.

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