3/22/05

RALEIGH -- In light of a growing scandal involving the misuse of millions of taxpayer dollars, the free-market grassroots group Americans for Prosperity today called on state Senate Pro-Tem Marc Basnight, House Speaker Jim Black and House Speaker Pro-Tem Richard Morgan to immediately resign their leadership posts and urged state Attorney General Roy Cooper to investigate the matter.

"This is nothing more than an abuse of power and a clear abuse of taxpayer money without any regard or respect for the integrity of our state's Constitution or taxpayers," said Chris Neeley, director of the North Carolina chapter of Americans for Prosperity. "The bottom line is that they have not been good stewards of the taxpayer's money. What we have here is political patronage in its rawest form, and it's wrong. What we need now is the truth."

Recent news reports have uncovered how Basnight, Black and Morgan divided up well over $20 million in taxpayer money in so-called special "reserve" funds to be distributed to political allies, legislative friends in tight re-election battles, non-profit organizations with ties to the legislators and other groups -- many of which never even asked the state for the money.

The existence of these special "reserve" funds became public last week when the Raleigh News and Observer disclosed how House Speaker Black used $45,000 from a special "reserve" fund he controlled to create a new state job for a former lawmaker, Michael Decker, whose party switch in 2003 helped Black retain power.

"Until this situation is fully investigated, Marc Basnight, Jim Black and Richard Morgan cannot be trusted with the taxpayers' money," Neeley said.

When news of Black's funneling of money to Decker broke last week, Americans for Prosperity called for State Auditor Les Merritt to investigate and conduct an audit of all special funds controlled by Governor Easley, Speaker Black, Senate President Pro Tempore Marc Basnight and other elected leaders with access to these funds. Merritt's office replied yesterday that they "will be giving the matter further scrutiny."