McCrory Names New Budget, Revenue Chiefs | Eastern North Carolina Now

    Publisher's note: The author of this post is Dan Way, who is an associate editor for the Carolina Journal, John Hood Publisher.

Roberts leaving for private sector; Gray moving to Utilities Commisison

    RALEIGH     Two of state government's most influential fiscal administrators overseeing budget and revenue operations are leaving their posts, and Thursday Gov. Pat McCrory called a news conference at the Executive Mansion to announce their successors.

    Lee Roberts will have completed 18 months as state budget director when he leaves Feb. 1 for a private sector job. Andrew Heath, who has been chairman of the North Carolina Industrial Commission since spring 2013, will succeed Roberts.

    McCrory tapped Revenue Secretary Lyons Gray for an emergency appointment to a vacant seat on the North Carolina Utilities Commission. Department of Revenue Chief Operating Officer Jeff Epstein will succeed Gray.

    Former state budget director Art Pope said he anticipates no bumps in the road despite turnover in two vital fiscal positions.

    "You've got two good people," Pope said, referring to Heath and Epstein.

    "Right now under the existing budget and taxation, the revenue's coming in very well, and spending is very well controlled. They're both stepping into a very good situation," Pope said.

    "Of course Jeff was acting secretary before, Drew Heath has a very senior responsibility on a smaller scale, but full responsibility for the Industrial Commission, so I think he'll do very well also," Pope added.

    Heath has the necessary skills, a competent staff, and continuity with Roberts during the transition, and because it's the second year of the budget biennium he won't be creating a new budget but tweaking and updating the existing spending plan, Pope said.

    "Change is tough," McCrory said. "Change is also good in bringing new talent, and new energy to the team." He presented both Gray and Roberts with Orders of the Long Leaf Pine, a gubernatorial award for extraordinary service to the state.

    McCrory said Roberts "has done an outstanding job," and he was sad when his budget director told him of his new career opportunity about a month ago.

    "Under his leadership, and through his fiscal management, North Carolina ended the previous year with a $445 million surplus, which no one predicted," McCrory said. "He had an innovative financial mind that was second to none, and he also thought out of the box when it came to reviewing the budget."

    Roberts helped to initiate NC Gear, a program to better analyze how government runs all of its departments, McCrory said. He launched Project Phoenix, a cost-saving program to identify leases on buildings, maintenance, and other contracts throughout state government that were unnecessary, inefficient, or ineffective.

    But most important, McCrory said, Roberts "was the father of the Connect NC bond proposal," a $2 billion spending plan to build university facilities, improve state parks and attractions, and repair aging water and sewer systems. The bonds will be placed on a referendum for voters during the March primary.

    State Senate leader Phil Berger, R-Rockingham, also praised the outgoing budget director. "Lee Roberts' razor-sharp business sense and steady hand leading the State Budget Office will be missed by taxpayers across this state - especially me," Berger said in a statement. "As state budget director, Lee served the people of North Carolina with integrity and distinction, and his resignation is a big loss."

    "It was a very difficult decision for me," Roberts said of leaving his position, calling it "a wonderful experience."

    While he said there are inherent tensions as political parties and different branches of government maneuver for their budget wishes, "That goes with the territory." He said the biggest challenge in the job was "a steep learning curve" as he entered state government from the private sector.

    Roberts will be leaving with the budget in order.

    "The revenue numbers are coming in slightly ahead of forecast. This time last year they were slightly below forecast, and I made a point this time last year of saying it was too early to tell how they would come in," Roberts said. "I'd rather be slightly ahead of forecast than slightly behind forecast."

    Most state revenue streams in during February, March, and April, when individuals and corporations file their income tax returns.

    Roberts will become managing director of SharpVue Capital, a broad-based investment management platform affiliate of Medical Mutual Insurance Company, whose CEO is Dale Jenkins, the new head of the North Carolina Chamber.

    But he said he would continue to work on the information campaign for the NC Connect bond issue, help to re-elect McCrory, "and be supportive however I can."

    McCrory said Heath "brings some new, young, energetic leadership." He implemented reforms at the Industrial Commission to combat employee misclassification, oversaw employer compliance to make sure workers were insured for on-the-job injuries, increased the number of businesses in compliance, and increased penalties for noncompliant businesses.

    Heath said being part of the inner workings of government and working on the budget are of interest to him, and he is not concerned about the political push and pull on the budget office.

    "I enjoy politics," the 34-year-old lawyer said.

    "Art [Pope] was a different person than Lee, and I'm a different person than Lee. Everybody brings their own strengths," Heath said, calling himself a quick study.

    Although McCrory nominated Gray to the Utilities Commission several months ago, the General Assembly left town without a confirmation hearing. McCrory said he was exercising his gubernatorial authority to make an emergency appointment to an agency he said is "extremely important" to North Carolina.

    He called Gray a friend and "incredible leader" who pushed to implement historic tax credit reform, opened a second taxpayer assistance call center in Guilford County, brought revenue into state coffers, and established efforts to reduce fraudulent tax returns.

    Epstein served in the Reagan White House, and has extensive real estate and other business experience in Charlotte.

    "I have full confidence in his leadership talent and experience," McCrory said.