RALEIGH
State Rep. Hugh Holliman, a Democrat from Lexington, is one of the most powerful members of the General Assembly -- but in the conservative-leaning district he represents, that can be both a blessing and a curse.
As the N.C. House majority leader, Holliman has his fingerprints on every major piece of legislation passed by the Democratic-controlled General Assembly. This year, in addition to helping write a state budget amid a massive shortfall, Holliman championed a statewide smoking ban at businesses. It will take effect on Jan. 2.
But Holliman may face his toughest test at home in the 81st House District, where Republicans and interest groups are already gearing up efforts to unseat him next year. His re-election fight in 2010 is likely to be one of the most hard-fought and closely watched legislative races in the state.
Republicans say that when Holliman was first elected to the General Assembly nine years ago, he was a moderate Democrat representing a culturally conservative district, which includes parts of Lexington and Thomasville. But they say that as he has risen through the ranks to become majority leader, he has shifted ideologically to the left.
They are especially angry over this year's state budget, which used about $1 billion in new taxes in combination with deep spending cuts to close the shortfall.
Holliman says he has been a responsible steward of the state's finances amid extraordinarily difficult times. He says that some tax increases were necessary to avoid decimating critical government services.
"I'm proud of what we've done on the budget," he said. "For the people who think you can just cut your way out of this, they need to remember what they'd have to cut."
Two Republicans have already declared that they will run for Holliman's seat. They are Rayne Brown, a social worker who ran against Holliman in 2008, and Fred McClure, a Davidson County commissioner.
Holliman beat Brown in the last election with 53 percent of the votes to Brown's 47 percent. That was during a tide of Democratic victories up and down the ballot. Next year will likely be a much tougher environment for Democrats, and the 81st House District is one of the few true swing districts in the legislature.
"I think that last year we had an avalanche coming at us," Brown said. "It's going to be our year next year, and I really think it's our best chance in a decade to take the House back at least."
Both Brown and McClure emphasized that they are strong conservatives, and they said they don't believe that Holliman has used his powerful post of majority leader to help his district.
"I think it's only valuable if he reflects the views of Lexington and Davidson County in the decisions that he makes," McClure said.
In addition to the tax increases in the state budget, Holliman will also face criticism on the issue of forced annexation, a big issue in Lexington. Holliman has taken a middle-ground position on the issue, sponsoring an amendment to a House bill that would give residents a limited right to vote on annexations.
And one of the state's most powerful lobbying groups, the State Employees Association of North Carolina, is also targeting Holliman. The group has been running ads attacking him for helping pass a law that raised health-insurance costs for state employees.
Holliman said the cost increases were less than average increases in private businesses. Major changes to the taxpayer-subsidized insurance plan were necessary because the plan was facing financial ruin.
Perhaps the biggest obstacle for Brown and McClure will be fundraising. In 2008, Holliman spent $250,000 on the race. Brown, in contrast, spent $14,000.
Holliman could raise significantly more this time around, and both Republican candidates acknowledged that they won't be able to match him financially. But they said they have already started raising money.
jromoser@wsjournal.com
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