Insider for October 8, 2024

FEMA Administrator Deanne Criswell briefs reporters on Hurricane Helene relief operations on Oct. 1. (Credit: Clifton Dowell)

Oct 08, 2024

“We were not able to come anywhere close, so that’s why we’re here today.”

Insurance Commissioner Mike Causey, on the insurance industry’s request to raise homeowner premiums. (The Associated Press, 10/07/24)

Insurance Rates

Gary D. Robertson, The Associated Press, 10/07/24

With many western North Carolina residents still lacking power and running water from Hurricane Helene, a hearing began Monday on the insurance industry’s request to raise homeowner premiums statewide by more than 42% on average.

A top lieutenant for Insurance Commissioner Mike Causey opened what’s expected to be multiple weeks of witnesses, evidence and arguments by attorneys for the state Insurance Department and the North Carolina Rate Bureau, which represents insurance companies seeking the increase.

In over 2,000 pages of data filed last January, the Rate Bureau sought proposed increases varying widely from just over 4% in parts of the mountains to 99% in some beach areas. Proposed increases in and around big cities like Raleigh, Charlotte and Greensboro are roughly 40%.

Across 11 western counties that were hit hard by Helene, including Asheville’s Buncombe County, the requested increase is 20.5%. The percentages are based on insurance payouts of years past and future claims projections.

After taking public comment, Causey rejected the request in February, prompting the hearing. In previous rounds of premium rate requests, the industry and the commissioner have negotiated settlements before a hearing. Before the last such hearing set for early 2022, they settled weeks earlier on a 7.9% average premium increase after the bureau had sought 24.5%. This time, Causey told reporters Monday, “we were not able to come anywhere close, so that’s why we’re here today.”

When the hearing ends, the hearing officer, in consultation with Causey, will decide within 45 days whether the proposed rates are excessive, and if so, issue an order that sets new rates. That order could be challenged at the state Court of Appeals.

Rate Bureau attorney Mickey Spivey told hearing officer Amy Funderburk that the highest inflation in 40 years — particularly on building materials — combined with calamitous storms that are “getting worse and worse” show that current premium rates are “severely inadequate.” Spivey cited Helene, which inflicted unprecedented destruction in the state’s western mountain communities, as well as Hurricane Florence in 2018, which caused billions of dollars of in damage in eastern North Carolina, much of it paid for by insurance companies.
Not mentioned Monday: Hurricane Milton, which grew explosively to a Category 5 hurricane while closing in on Florida on a path expected to mostly miss North Carolina.

“Whether you want to call it climate change or not, there is no denying that we are having bigger, stronger and more costly catastrophic storms than we’ve seen in any of our lifetimes,” Spivey said.

The Insurance Department’s attorney, Terence Friedman, argued that the industry continues to use actuarial methods that ignore what state law requires in calculating rates increases. Friedman said the bureau’s requested rates are inflated and that the department’s actuaries will demonstrate there are ”alternative recommended rates that will allow the bureau’s members to earn what they’re constitutionally entitled to.”

But Spivey said the Insurance Department’s witnesses would seek to actually lower premium rates, or limit increases by less than 3%. Without a fair profit and the ability to cover claims, Spivey said, industry companies will have to invoke a legal exception more frequently insuring high-risk homeowners only if they agree to pay premiums that are up to 250% of the bureau’s rate. Otherwise, he said, more insurers will stop issuing policies altogether.

The “consent to rate” exception in North Carolina’s law has helped prevent a mass exodus of home insurers, as some states have experienced, said David Marlett, an insurance professor at Appalachian State University.

While each state has different models to regulate rates, those affected by more hurricanes and storms are essentially faced with two options, Marlett said: Allow rates to keep rising to cover claims, or “somehow we build structures that are able to withstand climate change.”

Friedman criticized the bureau for citing Helene in its opening statement, saying it shouldn’t be used as grounds to raise rates on the storm’s survivors. He also noted that most of Helene’s damage was caused by flooding, which is covered separately from the homeowners’ policies now being considered.

The proceedings are likely to continue after early voting begins on Oct. 17. Causey, a two-term Republican commissioner, is being challenged by Democrat Natasha Marcus, a state senator.

Marcus held a news conference outside the Insurance Department headquarters criticizing Causey for declining to preside over the hearing, calling it a “ridiculous dereliction of one of his major duties in this job.” She also lamented that any decision will be made after Election Day.

Causey said he’s not hearing the case in part because he’s not an attorney. State law allows him to pick someone else to preside over the hearing, which is a quasi-judicial proceeding. [Source]


Voting Changes

Matthew Sasser, State Affairs Pro, 10/07/24

The North Carolina State Board of Elections approved a resolution to give 13 counties that bore the brunt of Hurricane Helene damage greater flexibility in amending pre-Election Day operations to prevent potential roadblocks to voting.

As of Monday morning, all local county boards of election in North Carolina are operational. The resolution applies to Ashe, Avery, Buncombe, Haywood, Henderson, Madison, McDowell, Mitchell, Polk, Rutherford, Transylvania, Watauga and Yancey counties.

“Our struggles are not over, and that is why we need the board to take action to give the flexibility necessary to carry out these elections and to be of the best service to the voters that we can be,” Executive Director Karen Brinson Bell said.

The unanimous resolution will allow local boards to modify early voting and Election Day voting sites. It will also allow county officials in hard-hit areas to recruit additional poll workers from other areas.

“This is to ensure that each voting location has sufficient knowledge and expertise to operate the election so the voting process goes smoothly,” General Counsel Paul Cox said of the recruitment measure. He said the board took measures to ensure fairness across all 100 counties.

According to the resolution, absentee voters will be permitted to drop off completed ballots at polling sites on Election Day. That was not allowed prior to the adoption of the resolution.

Any changes approved by a local county board will require a bipartisan majority vote. Board member Kevin Lewis said he anticipates many of the local county board decisions will be unanimous.

The resolution will affect 270 election sites and 62 early voting sites across the 13 counties.

It’s too soon to say how many of these sites will be available for in-person early or regular voting, according to Brinson Bell. Cox said about 10 early voting sites have “significant damage” or accessibility issues, and some may be in use for disaster relief or recovery operations. Further clarification on the status of the states will be clearer by the end of the week, they said.

“I’m generally very hesitant to make changes to the normal running of our elections,” board member Stacy Eggers IV said. “These have been tailored to give flexibility to the county boards to meet those specific needs.”

Eggers, who has visited five counties that are a part of the resolution and spoken with election workers, said this action will ensure early voting will begin in all 100 counties Oct. 17 and the integrity of the Nov. 5 election will be secure. “That is the commitment we have made.”


Recovery Efforts

Bethany Chafin, WFDD Radio, 10/07/24

Gov. Roy Cooper and other officials including the head of the Federal Emergency Management Agency (FEMA) gave a press briefing at Asheville Regional Airport Monday. The leaders outlined the number of people working to provide aid in the region, spoke about opening roads, efforts to reach communities, and the fact that there are still search and rescue operations occurring.

When asked about the timeline for getting water back in some of the hardest-hit areas, Cooper said more than 50 water systems were affected, and some are coming back as the power returns. “We have engineers from the U.S. Army Corps of Engineers who are here working with civil engineers and others to make sure that we are doing everything we can to get water back on all over western North Carolina,” he said. “But we don’t have a specific timeline on Asheville, Buncombe [County] right now.”

In response to rumors surrounding aid, FEMA Administrator Deanne Criswell said the misinformation is demoralizing and hurting those who need assistance by dissuading them from applying.

“I’ve heard rumors that if you take our $750 and don’t pay it back, we’re going to take your home — absolutely false,” she said. “The $750 gets you money to help with your medicine or the food you lost in your refrigerator, and then we’re going to give additional money for the repairs to your homes and the items that were lost.”

Cooper spent the afternoon traveling to Lake Lure and Chimney Rock to assess damage and relief operations. [Source]

FULL REPORTING:

Recovery Misinformation: (WFAE Radio, 10/07/24) North Carolina Emergency Management officials advising residents and pilots to be mindful about misinformation when it comes to aerial recovery efforts in Western North Carolina. On top of government efforts people have also helped by donating goods and flying them into Asheville’s airport and other airstrips. The Federal Aviation Administration said it’s seen a major surge in air traffic over Western North Carolina, including private relief, national guard and military planes.

However, the recovery efforts have also brought misinformation on social media saying the FAA is restricting air space, or that FEMA has taken over airports or blocked aid Spokesman Justin Graney of North Carolina Emergency Management said people need to exercise care sharing what they see online.

Make sure it’s legitimate and, and try to find that information and trusted sources, Graney said. “Misinformation damages everything, it hurts everyone. We don’t want that getting in the way of response and relief efforts. So please make sure you’re fact checking it and deciding what information is best to post and best to communicate to others.”

The FAA has implemented some prior permission rules for incoming flights to deal with the crowded skies and runways. You can go to ncdps.gov/helene for the latest information.

School Closures: (Luke Tucker, WBTV News, 10/07/24) As recovery from Helene continues across North Carolina, specifically in the western half, many school districts have canceled classes for either some or all days this week. Schools in Ashe and Watauga counties said they will be closed all week, while those in Avery County will remain closed “until it is safe to return.” Closures are also continuing into the start of the new week in Burke, Caldwell, McDowell and Rutherford counties.

Caldwell County Schools said class is canceled Monday, but did not say when schools could reopen or if class will be canceled beyond Monday. In Burke County, schools will be closed Monday and Tuesday as concerns over impassable roadways continue.

Students will be out of school Monday and Tuesday in McDowell County before returning Wednesday. Despite going back, the district said schools will operate on a two-hour delay for the rest of this week with limited bus routes. Information about bus stops will be shared with families by Monday evening.

Class is also expected to resume Wednesday in Rutherford County. On Friday, the district said its reopening conditions had “improved considerably.” The district said it would send out additional details early this week regarding the return to school.

Student Upheaval: (Emily Vespa, NC Health News, 10/07/24) College students can be uniquely affected when disaster strikes. They’re more likely to be underprepared for a hurricane, which can lead to significant stress in the aftermath. They’re also often separated from their support system at home. Universities in the western part of the state — UNC Asheville, Appalachian State and Western Carolina University — all suspended classes for at least two weeks. At UNC Asheville, it’ll be at least a month before classes resume. The storm also affected nearly 74,000 students at community colleges in the region. For many, it’s the second school upheaval in recent memory, the first being the COVID-19 pandemic.

The devastation has galvanized universities across the state in response. Some have launched Helene relief drives and fundraising efforts. All UNC System schools are offering mental health services to any displaced students. A psychiatrist from N.C. State University’s counseling center dispatched to Asheville to support high-risk students and personnel. East Carolina University is providing counseling services to Asheville students 24/7.

“In the last few days, amidst terrible devastation, we have seen tremendous acts of kindness and humanity: neighbor helping neighbor; strangers helping strangers,” said Appalachian State interim Chancellor Heather Norris at a news conference Wednesday.

Helping others during hardship does more than provide physical relief, said Robin Gurwitch, a professor in the Duke University Department of Psychiatry and Behavioral Sciences and the Center for Child and Family Health. It can lend emotional support to the afflicted and be the first step to healing. “When I help others, I feel a sense of connection to other people,” Gurwitch said. “That can really begin to help us right our world again.” All UNC System schools are offering mental health services to any displaced students.

Price Gouging: (Caroline Hicks, WBTV News, 10/07/24) As North Carolina begins the recovery and rebuilding process following Helene, there have already reports of price gouging across the state. The North Carolina Department of Justice has received more than 60 complaints alleging price gouging, with Watauga, McDowell and Cleveland counties reporting the most frequently. The complaints come despite a law against price gouging, which went into effect along with the state of emergency.

North Carolina Attorney General Josh Stein said most of the complaints surround hotel rates, grocery prices and fuel prices. Dena J. King, US attorney for the Western District of North Carolina, said she heard one report of fuel canisters being priced at $70 each, up several times from their normal cost of $15-20. “I would remind [businesses] that not only is this potentially a violation of state law, but it is also potentially a violation of federal law and what my office will be doing is we’ll be working very closely with our state partners to determine which, if any, investigations rise to the level of prosecuting,” King said.

Buncombe Detainees: (Ryley Ober, Asheville Citizen Times, 10/07/24) As Buncombe County and Western North Carolina reel from the effects of Tropical Storm Helene, with scores of confirmed deaths, hundreds of homes lost and roadways washed away, another group is being displaced while only 20% of Asheville’s water system is functional as of Oct. 7: jail detainees.

The Buncombe County Sheriff’s Office has transferred 129 detainees to other detention facilities in the state, according to spokesperson Christina Esmay. That number is fluctuating and depends on when other agencies have openings. It’s up to the detainees to make sure their family knows if and where they have been transferred. As of right now, the sheriff’s office is not calling the family of those transferred “because honestly we’re still very much in the aftermath (of Helene), and we’re still even contacting community members,” Esmay said Oct. 7.

But the detention center still has running water, Esmay confirmed. It’s fully operational, with cell service and landlines now working after temporarily losing service. “We are proactively transferring people out to ensure that there’s still a good water level,” Esmay said.

Damage Assessment: (Jonathan Rich, The Transylvania Times, 10/07/24) Representatives from the Federal Emergency Management Agency arrived in Transylvania County Saturday and are coordinating with local officials to assess the overall damage throughout the area with the first official estimates expected to be released next week. “Our area has been declared a federal major disaster area,” said Transylvania County Manager Jaime Laughter at a press briefing at the Transylvania County Public Safety Center Saturday. “FEMA staff have and will be working with us to start to establish services.”

Water service to the town of Rosman was restored Friday afternoon and the boil-water advisory was subsequently lifted. Champion Park has been opened for residents to use shower facilities. Travel within downtown Brevard remained largely unimpeded, but driving to other more remote areas of the county remains much more difficult. Officials with the N.C. Department of Transportation said 90 roads in Transylvania County remained closed Sunday, though more are being cleared on a daily basis.

Congressman Chuck Edwards was scheduled to visit Transylvania County Monday to view the storm aftermath firsthand and is expected to announce the availability of more state and federal resources. Transylvania County Board of Commissioners’ Chair Jason Chappell said he has remained in close contact with state legislators Sen. Kevin Corbin and Rep. Mike Clampitt to keep them updated on the needs of local residents as more assistance continues to arrive.

Golden LEAF: (David Mildenberg, Business NC, 10/07/24) The Mountain BizWorks nonprofit in Asheville said it is creating a small business lending program to assist recovery from Tropical Storm Helene, with $7.5 million funded by the Golden LEAF Foundation. The program entails bridge loans of as much as $100,000 aimed at “providing critical relief to small businesses impacted by Hurricane Helene,” House Speaker Tim Moore said in a release. “Small businesses are the backbone of North Carolina’s economy, and this funding ensures that entrepreneurs can continue their operations during this challenging time.”

The loans will have a 1% interest rate and interest-only payments for 12 months. If not repaid in the first year, the loans will convert to a term loan. Mountain BizWorks and program partners hope to secure more funding in coming days and weeks.

“This program is designed to assist businesses that will be working to apply for a Small Business Administration (SBA) loan or other commercial loan, but that have more immediate needs for capital,” Golden LEAF board chair Ralph Strayhorn said.

Mountain BizWorks was formed in 1989 and promotes entrepreneurship in the region. It has a staff of about 30 and operates a community development financial institution, or CDFI, which makes small business loans. Golden LEAF is a foundation funded by proceeds from the national tobacco settlement.


Robinson Investigation

Colin Campbell, WUNC Radio, 10/07/24

It’s been more than two weeks since CNN published a bombshell story about pro-slavery and pro-Nazi posts it says Lt. Gov. Mark Robinson wrote on a pornographic website. And it’s been more than a week since Robinson hired a law firm to refute the report, saying “I fully expect the facts are going to come to light quickly.”

Since then, the devastating impacts of Helene — a tropical storm by the time it hit western North Carolina, but destructive nonetheless — have knocked Robinson’s scandal out of the headlines. And neither he nor the law firm have released any new information related to the CNN report or filed any legal actions over the story.

WUNC asked Robinson’s campaign for an update and a timeline on when the law firm might release its findings, but spokesman Mike Lonergan did not respond to multiple inquiries.

Attorney Jesse Binnall had said in a Fox News interview on Sept. 26 that while some investigations take months, “we can’t do this in this case because the voters need an answer before the election, and so we are going to move very quickly and still give them a very fulsome report.”

Absentee voting by mail is underway, and in-person early voting sites open next week.

Robinson has spent the past week mixing campaign events across the state with visits to Western North Carolina, where he’s been working with the sheriff of Franklin County on a supply delivery effort – and posting frequent social media photos and videos of himself doing it. He has “town hall” campaign events scheduled this week in four counties.

Other Republicans like U.S. Sen. Thom Tillis and Agriculture Commissioner Steve Troxler have not appeared with Robinson as they too have spent time traveling in hard-hit counties. Tillis has not made any public statements about the Robinson scandal since he told reporters that Robinson needed to “defend his name” or “in the absence of a defense, we need to move on. We’ll be making that decision this week.”

Tillis told reporters he was setting a deadline of Friday, Sept. 27, for Robinson to take legal action to refute the CNN report. Spokesmen for Tillis did not respond to an inquiry seeking an update this week.
Since the CNN report, Robinson has slipped further behind his Democratic opponent, Attorney General Josh Stein, in multiple polls. The latest RealClearPolling average for the race has Stein up by nearly 16 percentage points.

In addition to the Republican Governors Association stopping its TV ads in North Carolina, campaign ad disclosures for WRAL-TV show that Robinson’s campaign hasn’t run or reserved time for ads after the CNN report came out. His only current campaign ad on Facebook is a pledge to “fight for each and every North Carolinian that is struggling” after the storm, according to the social media site’s ad database. [Source]


Lassiter Suspension

Emily Walkenhorst, WRAL News, 10/07/24

A Wake County state senate candidate has been reinstated to his job as assistant principal of an alternative school after a monthlong suspension with pay. The Wake County Public School System reinstated Scott Lassiter over the weekend, Lassiter said. School system spokeswoman Lisa Luten confirmed that Lassiter was back in “active status” Monday.

He’ll return to his job on Tuesday at Connections Academy in Cary. Connections Academy, a middle school for students who have been reassigned for disciplinary reasons as an alternative to long-term suspension. The school system didn’t provide an explanation for Lassiter’s reinstatement, citing the confidentiality of personnel records.

Lassiter, a Republican, is running for a southern Wake County seat against Democratic Sen. Lisa Grafstein.

Lassiter and his attorney, Alicia Jurney, had said he was suspended in connection with his effort to break up a fight at the school May 22 — a fight they say has spawned an ongoing criminal case against a man who went to the school after the fight, looking for Lassiter. Lassiter has never been charged, and the district hadn’t taken any action against Lassiter at the time of the incident, until his suspensions with pay Sept. 5.

Jurney provided a detailed statement of the incidents to news outlets last week. The school system disputed some fo Jurney’s account but didn’t say which parts. Lassiter has declined to discuss specifics of the incident, but he said the school has never had full-time security that could help with breaking up fights or other incidents.

In a statement Monday, Lassiter said he still wanted a school resource officer at the school. “Educators should be empowered to teach, and order should be the norm,” Lassiter said. Last week, he said his role in breaking up the fight was “an all-too-common example of educators having to put themselves in harm’s way.” [Source]


Vance Event

Luciana Perez Uribe Guinassi, The News & Observer, 10/07/24

Republican vice presidential candidate JD Vance is coming back to North Carolina this week, this time to host a town hall in Greensboro. Doors for the town hall at the Koury Convention Center will open at 4 p.m. on Thursday, with Vance slated to speak at 6 p.m. Topics will likely include the economy, illegal immigration and Hurricane Helene.

Most recently, former President Donald Trump, during a town hall meeting in Fayetteville on Friday night, said that the federal government’s response to the devastating storm had been “terrible.”

The news release announcing Vance’s town hall said Vice President Kamala Harris “completely left North Carolinians behind in the wake of devastation post-Hurricane Helene.”

Harris visited Charlotte on Saturday, announcing Mecklenburg County would also be eligible for federal disaster aid.

Vance’s visit to Greensboro is his fifth trip to North Carolina since becoming Trump’s running mate. In mid-September, he held a rally in Raleigh. Before that, he was with Trump in Asheboro. He has also visited Greenville twice. Trump, Harris and Democratic vice presidential candidate Tim Walz have also visited the battleground state often this year. [Source]


Recidivism Hotline

Rachel Crumpler, NC Health News, 10/08/24

On April 29, 2024, Kerwin Pittman waited by his phone in eager, nervous anticipation. He didn’t know how long it might take for the first caller to dial the Recidivism Reduction Call Center he had launched that morning. The hotline — staffed by people who have experienced incarceration and who are also certified community health workers — connects callers to resources across North Carolina to help them with reentering their communities. Hotline operators have more than 800 entries in their database of resources, from housing options to “second chance” employers to mental health professionals, that it can point callers to based on their needs.

Pittman, executive director of the nonprofit Recidivism Reduction Educational Program Services, created the hotline to better connect people with resources. His own experience leaving prison in 2018 and facing challenges finding resources to get his life on track taught him there was a need for on-demand reentry support — a place someone could call to talk through their challenges and leave more at ease with resources in hand. And at 9 a.m., he answered his first call — a woman who had a brother who’d get out of prison soon. He gave her a list of local resources that could help with his transition. The phone rang back to back all day, Pittman said, and hotline operators answered over 100 calls. And they haven’t stopped. In the five months since the hotline launched, they’ve answered more than 1,500 calls.

Formerly incarcerated people, family members anticipating a loved one’s release, parole/probation officers, EMS workers and other stakeholders have called the hotline asking for reentry resources. Pittman knows timely connections to resources are crucial to improving reentry success and lowering recidivism rates in North Carolina.

An April report by the North Carolina Sentencing and Policy Advisory Commission found a 44 percent re-arrest rate within two years from a sample of 12,889 people released from North Carolina state prisons in fiscal year 2021. That same sample had an 18 percent re-conviction rate and, when adding in those who return to prison for probation or post-release violations, fully 33 percent were back in prison within two years of their release.

“The recidivism rate is so high because [reentry] is hard, and it’s even harder when you lack resources and when you don’t have connection to those resources,” Pittman said. “That’s where we hope to make a difference.” [Source]


Unemployment Claims

USA Today Network, 10/05/24

Initial filings for unemployment benefits in North Carolina dropped last week compared with the week prior, the U.S. Department of Labor said Thursday. New jobless claims, a proxy for layoffs, fell to 2,814 in the week ending September 28, down from 3,263 the week before, the Labor Department said. U.S. unemployment claims rose to 225,000 last week, up 6,000 claims from 219,000 the week prior on a seasonally adjusted basis. Iowa saw the largest percentage increase in weekly claims, with claims jumping by 41.8%. Virgin Islands, meanwhile, saw the largest percentage drop in new claims, with claims dropping by 61.3%. [Source]


Richmond DA

Jimmy Potts, The Richmond County Daily Journal, 10/03/24

Onlookers gathered to see recently appointed District Attorney Jamie Adams get sworn in at the courthouse. The ceremony recognized Adams, as well as retiring Richmond County District Attorney Reece Saunders, who Adams credited for preparing her to take the reigns as Richmond County’s top prosecutor. Last week, Gov. Roy Cooper appointed Adams as District 21 district attorney after Saunders quietly announced his plans for retirement. Before becoming D.A. of District 21, according to a release from Gov. Cooper, Adams serves as the Chief Assistant District Attorney in District 21.

Adams said she wanted to become a prosecutor as a way to stop bullies, something she experienced growing up in Detroit. Believing bullying extends beyond the schoolyard, she sought to defend those who cannot defend themselves be it women, children or the elderly. [Source]


Fundraiser Concert

WTVD News, 10/07/24

North Carolina artists will headline a concert in Charlotte to raise money to support Hurricane Helene relief efforts. Luke Combs, Eric Church, James Taylor and Billy Strings are headlining a concert in Charlotte on Oct. 26 all to support relief efforts in the Carolinas. Tickets go on sale at 10 a.m. on Oct. 10 for the concert, which will be held at Bank of America Stadium in Charlotte. In addition to money raised from ticket sales, the event will also have an auction and raffle for various items that will support the cause. All proceeds from the event, including sponsorships, will be split 50/50 between Combs and Church to distribute to organizations of their choosing. Combs plans to distribute the funds to Samaritan’s Purse, Manna Food Bank, Second Harvest Food Bank of Northwest NC, and possibly more. Church’s portion will all go to his Chief Cares organization. [Source]


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