********************************** CORRECTION: An article in the Feb. 3 edition and a Feb. 5 editorial incorrectly stated that three at-large N.C. Board of Transportation members had allotments of economic development money and that they spent it on projects near their hometowns. **********************************

Nearly 10 years ago, state legislators championed a series of reforms for the scandal-plagued N.C. Board of Transportation that were intended to take the politics out of building roads.

Future appointees would have to disclose their political fundraising. Five of the 19 seats would be reserved for people with special skills in such fields as the environment and mass transit. Members would have to avoid even the appearance of a conflict of interest.

"The board's policies, effectiveness and integrity are important to almost every citizen," Beverly Perdue, then a state senator, said on Sept. 23, 1998, the day the bill cleared the legislature. "The public has demanded reform, and this bill lays the groundwork."

That groundwork has proven a weak foundation. A decade after Perdue hailed the reform law, the 19-member DOT board remains a plum spot for big political fundraisers who continue to ignore conflicts of interest and the wider needs of the state beyond their own districts.

For example:

* The fundraising disclosure rule is toothless. The only fundraising that board members must disclose is contributions directly handed to them. Asking people to give to a campaign or holding fundraisers -- two common ways to raise campaign money -- aren't considered fundraising on disclosure forms.

* Two of the five seats intended to bring more professionalism to the board have been given to fundraisers best known for running restaurant chains.

* Conflicts of interest continue to surface. Last month, board member Thomas Betts Jr. of Rocky Mount resigned after he sought to raise $20,000 in campaign money from country singer Randy Parton and the others behind the struggling performing arts theater in Roanoke Rapids. Betts had directed $2.5 million in road work to the theater over the previous year. He sought campaign money for Perdue, now lieutenant governor, who is seeking to be the next governor.

* Some at-large members, who are supposed to look out for the entire state, are steering their discretionary money to their home districts.

The board oversees a department with a $3.8 billion budget and a serious public image problem. A chorus of lawmakers, public policy advocates and even transportation department employees say that the department is dysfunctional -- at a time when the state's transportation needs are growing dramatically. A special "blue ribbon" legislative panel is meeting to figure out how to get the department back on track.

The department even bungled trying to fix itself. It hired a consultant at a cost of $3.6 million to help assess its strengths and weaknesses and foster change. But the department refused to disclose the terms of the contract and any findings until Gov. Mike Easley ordered them made public.

The board's makeup and activities have emerged as a campaign issue in the gubernatorial election. Perdue's rival for the Democratic nomination, State Treasurer Richard Moore, has made it a key part of his campaign. Last month, among other proposals, he announced that he would not appoint fundraisers to the board. Perdue has not called for banning fundraisers from the board.

Ten years ago, Perdue's DOT reform bill won favor over a stricter bill initially filed in the House that would have banned fundraisers from the board, required five experts in various areas, and taken away the governor's power to appoint the transportation secretary.

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