Carolina Journal, “The by Don Carrington Proposal Was Never Approved and No Executive Editor Money Was Dis- RALEIGH Bursed.” Why Everal Weeks After N.C

INSIDE THIS ISSUE: DEPARTMENTS N.C. solar North Carolina 2 C A R O L I N A Education 7 project rais- Local Government 10 From Page 1 14 es corporate Higher Education 17 welfare con- Books & the Arts 20 Opinion 24 cerns/2 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION May 2012 Vol. 21 No. 5 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Official Tried To Divert Funds To Own Nonprofit ning and research activities. The money was to come from McKoy remains on surplus federal CDBG funds from the years 2002, 2004, and 2007. job after being asked McKoy sought Crisco’s approval for the plan in January, but Crisco nev- to resign position er went along. Commerce spokesman Tim Crowley told Carolina Journal, “The By Don Carrington proposal was never approved and no Executive Editor money was dis- RALEIGH bursed.” Why everal weeks after N.C. Secretary Crisco turned the of Commerce Keith Crisco asked project down is Assistant Secretary Henry C. not clear. CJ has SMcKoy to resign over issues involving requested all the the attempted diversion of $2 million public records re- in government lated to McKoy’s funds to a non- project; so far, profit organiza- Commerce has Keith Crisco tion McKoy had The only address for the North Carolina Sustainability Center is a mailbox located turned over McK- controlled, McK- in this UPS store at a North Raleigh shopping center. (CJ photo by Don Carrington) oy’s cell phone re- oy remains on until last year. The money would be a Crisco, and oversees approximately 90 cords but no other documents. the job as of press windfall for an organization that ap- employees and a budget of more than This wasn’t the first time McKoy time. pears largely to have been dormant for $100 million. helped NCSC. Libby Smith, a Com- C a r o l i n a the past two years. Under McKoy’s plan, Buncombe, merce employee who is senior adviser to McKoy, also served as president of Henry McKoy Journal Online’s McKoy heads the Commerce Edgecombe, Orange, and Yadkin coun- initial report April Community Development Division ties would receive funds for a “Com- NCSC last year when she applied for 5 described how and distributes funds from the federal munity Capacity Building Program.” and received a $150,000 grant for the McKoy launched a plan last year to Community Development Block Grant Each county would receive $600,000 nonprofit from the Z. Smith Reynolds direct more than $2 million in federal program. He is a relative newcomer to and could retain 10 percent for han- Foundation. McKoy served as chair- funds to the North Carolina Sustain- public administration. Gov. Bev Per- dling the grant. Each county then man of NCSC while at his current ability Center, a small Raleigh-based due appointed him to the Commerce would be required to turn over the nonprofit organization that he chaired position in August 2010. He reports to remaining $540,000 to NCSC for plan- Continued as “Commerce,” Page 14 State May Try To Shut Down Nutrition Blogger

PAID state board, is expansive. RALEIGH, NC U.S. POSTAGE When he was hospitalized with PERMIT NO. 1766 NONPROFIT ORG. Nutrition board says N.C. Board of diabetes in February 2009, he decided to avoid the fate of his grandmother, blog advice same as Dietetics/Nutrition who eventually died of the disease. He says Cooksey’s embraced the low-carb, high-protein ‘practicing dietetics’ Paleo diet, also known as the “cave- nutrition blog man” or “hunter-gatherer” diet. The By Sara Burrows diet, he said, made him drug- and Associate Editor violates state law insulin-free within 30 days. By May of RALEIGH that year, he had lost 45 pounds and he North Carolina Board of Di- decided to start a blog about his suc- etetics/Nutrition is threaten- or nutrition” without a license. cess. ing to send a blogger to jail for According to the law, “practic- But this past January, the state recountingT publicly his battle against ing” nutrition includes “assessing the board decided Cooksey’s blog — Di- diabetes and encouraging others to fol- nutritional needs of individuals and abetes-Warrior.net — violated state low his lifestyle. groups” and “providing nutrition law. The nutritional advice Cooksey Chapter 90, Article 25 of the counseling.” provides on the site amounts to “prac- North Carolina General Statutes makes Steve Cooksey has learned that The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 it a misdemeanor to “practice dietetics the definition, at least in the eyes of the Continued as “State,” Page 15 PAGE 2 MAY 2012 | CAROLINA JOURNAL North Carolina C a r o l i n a Complex Raises Corporate Welfare Concerns By Dan E. Way rewards of lower energy costs. It’s a win-win for everyone.” Contributor Newman did not grant an interview for this story. He Journal RALEIGH requested a list of questions to be sent to Joanna Baker, FLS Rick Henderson jumbo solar geothermal complex installed at a Robe- marketing manager, for his review. Baker responded with Managing Editor son County turkey processing plant is being hailed an email saying the solar thermal farm has been completed Don Carrington as the largest of its kind in the nation and a distinc- at no cost to Prestage Foods. Executive Editor tionA for North Carolina’s expanding solar industry. “FLS Energy owns the solar thermal system and sells Critics say it’s costly crony capitalism wrapped in cor- Prestage Foods the energy it needs to heat water,” the re- David N. Bass, Sara Burrows porate welfare, as the solar energy produced by the complex sponse said. “Prestage does not pay for any repairs or main- Mitch Kokai, Michael Lowrey will heat water that had been warmed with propane rather tenance costs of the project.” Associate Editors than electricity. They note that the solar array will not re- The response did not answer questions regarding the place electricity from the power grid. overall cost of the project, how much FLS received in tax Chad Adams, Kristy Bailey FLS Energy, an Asheville-based solar company, has credits for construction, how much it would be paid from Kristen Blair, Roy Cordato erected an array of 2,100 solar panels that heat as many as sales of the renewable energy certificates to Duke, or how Becki Gray, Sam A. Hieb 100,000 gallons of water daily at the Prestage Foods turkey Lindalyn Kakadelis, George Leef frequently a backup propane system would be needed to Karen McMahan, Donna Martinez plant in St. Pauls. The hot water is used to clean equipment supplement the solar energy. Karen Palasek, Marc Rotterman and processing rooms at the 260,000-square-foot plant. Nor did Baker respond to criticism of the project as a Michael Sanera, Barry Smith FLS owns and operates the solar thermal installation. It form of crony capitalism. John Staddon, George Stephens sells low-cost electricity to the farm and gets a lucrative mix Roy Cordato, vice president for research and resident Michael Walden, Dan Way of state tax credits for construc- scholar at JLF, questioned the Karen Welsh, Hal Young tion, and revenue from renew- fairness of the renewable ener- John Calvin Young able energy certificates sold to gy certificates for the Prestage Contributors Duke Energy. Power companies Foods project. are obligated by state mandate Under state statute, a re- to purchase a percentage of their Ziyi Mai, Baxter Rollins newable energy certificate is electricity from green power. Daniel Simpson, Alissa Whately awarded for every 1 megawatt Shane Williams “It’s a crony capitalism hour of electricity produced by Interns scheme that makes this solar green power. The certificates company rich while bilking can be bought, traded, or bar- taxpayers and ratepayers out tered. Published by of money out of their pockets,” “Most farms heat their The John Locke Foundation said Michael Sanera, director of water with propane, not elec- 200 W. Morgan St., # 200 research and local government tricity, so why are they [FLS] Raleigh, N.C. 27601 studies at the Raleigh-based getting to sell credit ... to the (919) 828-3876 • Fax: 821-5117 John Locke Foundation. www.JohnLocke.org power company for saving “People are unaware their electricity when they’re not Jon Ham power bill is higher to support saving electricity?” Cordato Vice President & Publisher these crony capitalism scams,” asked. “Solar is substituting for Sanera said. propane, not for electricity.” John Hood FLS has made similar deals with schools, community There is no shortage of propane, he said, and the subsi- Chairman & President colleges, and other government entities. Without the gov- dy the solar company receives is “a very bizarre allowance.” ernment-required incentives and subsidies, the deals would FLS did not reply to questions about that issue in Bak- Bruce Babcock, Herb Berkowitz collapse because the solar energy is more costly to produce er’s email response. Charlie Carter, Jim Fulghum than what is being generated at traditional power plants, Chuck Fuller, Bill Graham A request for an interview with officials in the North Sanera said. Carolina State Energy Office on the propane for renewable Robert Luddy, Assad Meymandi “This is a too-good-to-be-true deal that the snake oil Baker A. Mitchell Jr., Carl Mumpower, energy certificate issue was not granted. salesmen are selling,” Sanera said. FLS gets the high-yield J. Arthur Pope, Thomas A. Roberg, But Seth Effron, communications director, issued a income built into the front end of the renewable energy David Stover, J.M Bryan Taylor, short, written statement that said “alternative energy sourc- certificates, and by the time their clients have the option to Andy Wells es have been encouraged for a variety of policy objectives purchase the solar systems, the equipment likely will be ob- Board of Directors including moving away from imported fuel sources, adopt- solete, he said. ing renewable sources, and reducing pollution.” Carolina Journal is “Prestage has no knowledge of any details surround- Just like other tax credits for businesses, Effron’s state- a monthly journal of news, ing any financing packages FLS Energy may have assem- ment said, “any company [that] meets the qualifications for analysis, and commentary on bled,” Summer Lanier, Prestage Farms public relations di- the credit can receive it.” state and local government rector, wrote in response to a list of questions she requested Whether it is a good idea to pay for replacing propane and public policy issues in in lieu of a phone interview. North Carolina. power with solar geothermal and then selling revenue-rich “FLS Energy offered us a cost-effective and stable, ©2012 by The John Locke Foundation renewable energy certificates when no electricity is saved Inc. All opinions expressed in bylined articles long-term alternative to our current energy needs. Com- menting simply on what critics have said, and without off the grid “is more of a state policy kind of question” than are those of the authors and do not necessarily one for utility operators, said Duke Energy spokesman Ja- reflect the views of the editors of CJ or the being involved in FLS Energy’s financial matters, any re- son Walls. staff and board of the John Locke Foundation. sponse would be unfair speculation on Prestage’s part,” La- Material published herein may be reprinted as nier wrote. “It’s not our position to say necessarily whether the long as appropriate credit is given. Submis- “We simply made a business decision which will help policy is right, wrong, or indifferent,” Walls said. That is a sions and letters are welcome and should be our company, community, and the sustained employment legislative and regulatory matter, he said. directed to the editor. of 350 local residents,” and give Prestage Foods the option “These projects that FLS is undertaking are part of that CJ readers wanting more information to buy the equipment after 10 years, she wrote. [state-mandated] renewable energy portfolio standard that between monthly issues can call 919-828- “We anticipate an annual savings for our hot water we are required to comply with,” Walls said. 3876 and ask for Carolina Journal Weekly “What state law requires us to do is provide 12.5 per- Report, delivered each weekend by e-mail, heating costs of around 35 percent. This could be more or or visit CarolinaJournal.com for news, links, less depending on the price of propane at a given time,” La- cent of our electric generating capacity through renewable and exclusive content updated each weekday. nier wrote. energy in a cost-effective manner for customers,” Walls said. Those interested in education, higher educa- In a news release distributed at the outset of the proj- “Buying the renewable energy certificates from tion, or local government should also ask to ect, Brownie Newman, FLS vice president and director of these geothermal systems is a cost-effective form of re- receive weekly e-letters covering these issues. project finance, said the partnership with Prestage Foods newable energy,” he said, “so yes, this project is a good would “reduce their dependence on propane and reap the project for our customers.” CJ MAY 2012 | CAROLINA JOURNAL PAGE 3 North Carolina GOP Lawmaker Targets Cities That Sued Over Annexation Reforms By Sara Burrows process amounted to a vote, and that Payback? dents of an unincorporated area voted Associate Editor the right to vote cannot be conditioned to be annexed, the city would be forced LaRoque said it was a brazen RALEIGH on whether someone owns property. to take them in. move for the cities to challenge the Republican state lawmaker In Joseph’s view, renters should not be “We still feel the protest petition General Assembly’s authority over cit- pledged to protect property excluded from the annexation process. is the proper way to go, but these are ies when it comes to annexation. owners from being annexed in- Opponents of involuntary annex- options,” he said. “The constitution is very clear as voluntarilyA into the five cities that sued ation counter that the disenfranchise- LaRoque also plans to work to- to who draws municipal boundaries, the state over annexation reform legis- ward passing a bill in the short session ment of renters is a smoke-and-mirrors and that’s the legislature,” he said. lation that passed last year. (which begins this month) that would argument, that property owners are He said the state plans to appeal Officials from the cities of Kin- repeal the nine annexations the cities the ones whose rights are at stake if the ruling. Meantime, the Republican ston, Rocky Mount, Wilmington, Lex- sought to preserve in the lawsuit. Sen- their land is at risk of being “taken” by leadership in the House and Senate ington, and Fayetteville celebrated ate leader Phil Berger, R-Rockingham, cities. are considering a moratorium on all in March when a district court judge hinted the day the ruling was issued LaRoque pointed out that the annexations until the case makes its ruled that a vital portion of the law that such a measure may be on tap. petition process way to the North — the section giving property owners “We want to send a very clear has been used for Carolina Supreme a chance to reject involuntary annexa- signal to them that we make the laws,” “voluntary” an- Court. tion by petition — is unconstitutional. nexations for de- “If the Su- LaRoque said. But Rep. Stephen LaRoque, R- At issue is cades. Voluntary preme Court up- While the North Carolina League Lenoir, says it’s too soon for the cities annexations are held the petition of Municipalities, which lobbies on to celebrate, for two reasons. One, he who has authority those in which process, we could behalf of cities, was not party to the doesn’t think the judge’s ruling will property owners to draw municipal remove the mora- lawsuits, spokeswoman Kelli Kukura hold up in the appeals process. Two, residing just out- torium and be said members of the organization un- he plans to introduce legislation in the side city limits re- boundaries: good to go,” La- derstand why the cities “felt they had short session that would repeal specifi- quest to be taken Roque said. “If it to file suit as an obligation to their citi- cally the nine annexations underway cities or legislature in by the city. doesn’t, the mora- zens.” by those five cities. Kukura did not mention any- Cities usu- torium would Supporters of the decision say the thing about the petition process, which ally aren’t enthusi- be in place until annexations at issue followed the law the cities cited as their reason for suing. astic about these types of annexations, we’re able to work out a method that’s and that it was unfair for the General Instead, she talked about the financial because requests for annexation typi- fair to the property owners.” Assembly to allow property owners to One method, he said, would give implications to the cities and the un- undo them after the fact. cally come from poor communities in fairness of applying the law retroac- need of services. Cities are much more the cities what they claim they want — a vote open to all residents, includ- tively. The ruling interested in incorporating wealthier, “These annexations followed the self-sufficient communities that can ex- ing renters, in the area selected for in- On March 27, Wake County Su- voluntary annexation. Only this time law in every way, and then, new law pand the cities’ tax base while requir- perior Court Judge Shannon Joseph around, lawmakers would require that was applied retroactively after signifi- ing few additional services from the ruled in favor of the cities, whose lead- 60 percent of residents approve of a cant investments were made,” Kukura new taxes collected. ers argued that the legislature over- city-initiated annexation. said. stepped its authority last summer LaRoque said it is hypocritical Under this arrangement, if 40 “Businesses wouldn’t want to when it passed a law preventing cities for the cities to argue that the petition percent objected (or sat home on elec- have to run that way, and our taxpay- from annexing land without property process is constitutional in the case of tion day), the annexation would be ers don’t expect the General Assem- owners’ consent. voluntary annexation but unconsti- stopped, compared to the 60 percent bly to require cities to run that way, Joseph declared unconstitutional tutional in the case of city-initiated or who must object now. This would where nothing is certain. Citizens a provision of the law, which makes “involuntary” annexation. place the burden on the city to earn the in these cities believe it is very un- an annexation null and void if 60 per- He said he “completely dis- votes. fair. Moving forward with new law cent of property owners targeted by agrees” with the ruling and is confi- LaRoque said the same rule is one thing, but retroactive applica- the annexation petition against it. She dent it won’t hold up through the ap- should apply for a resident-initiated tion of the law has really upset the agreed with the cities that the petition peals process. annexation. If 60 percent of the resi- city residents.” CJ Subscribe to JLF’s Research Department Newsletters Go to http://www.johnlocke.org/key_account/ to sign up

Vice President for Re- Director of Research Director of Education Director of Fiscal Policy Director of Regulatory search Roy Cordato’s and Local Government Studies Terry Stoops’ Studies Fergus Hodg- Studies Jon Sanders’ weekly newsletter, En- Studies Michael Sane- weekly newsletter, Edu- son’s weekly newsletter, weekly newsletter, vironment Update, fo- ra’s weekly newsletter, cation Update, focuses Ferg’s Fiscal Insight, Rights & Regulation cuses on environmental Local Government on the latest local, state, offers pro-liberty per- Update, discusses cur- issues, and highlights Update, provides analy- national, and interna- spectives on the latest rent issues concern- relevant analysis done sis and commentary on tional trends in pre- research and news in ing regulations, rights, by the John Locke Foun- North Carolina city and K-12 education politics, taxation and govern- and freedom in North dation and other think county policies based policy, and practice. ment spending. Carolina. tanks, as well as items on their proper role in a in the news. free society. PAGE 4 MAY 2012 | CAROLINA JOURNAL North Carolina State Briefs N.C.-S.C. ‘Border War’ Called Overblown JLF: Replace income tax By Karen Welsh the line running through York County in South Carolina and North Carolina would boost Contributor Mecklenburg County in North Carolina. Because of popula- economic growth and wealth cre- CHARLOTTE tion expansion in recent years, this was one of the border’s ation by replacing its existing in- articipants in negotiations to re-establish the border most settled regions and has felt the biggest impact. In some come tax with a new “flat-rate between North Carolina and South Carolina say that places, the line has moved 150 feet to the north. consumed income tax.” That’s the story has been sensationalized and that any notion Troy Kickler, director of the North Carolina History the prescription of the John Locke ofP a “border war” largely is hyperbole. Indeed, the owner of Project for the John Locke Foundation, said he is amazed the Foundation’s top economist. a gas station at the state line who has been the focus of me- boundary line to date has remained so close to the original, “The state’s current income dia scrutiny would be the only business owner affected by since it was established under British rule. tax penalizes work, saving, in- redrawing the boundaries, and he has faith the final result Zupan said the team recently sent notices to 93 ho- vestment, and entrepreneurship,” will protect his livelihood. meowners and business owners who were affected by the said report author Roy Cordato, Alan-Jon Zupan, a project manager for the South Car- change. JLF vice president for research olina Geological Survey, said he is concerned about how Hayes said the commission has not forgotten about and resident scholar. “Those are major news outlets are portraying the almost 20-year effort the affected citizens. He said they are trying to minimize the very income-generating activi- to set straight the 304-mile dividing line between the two any disruption in education by allowing children to stay in ties that lead to the production of states. their current school dis- goods and services that spur eco- “They are turning tricts. nomic growth. If you’re interested this into a tabloid story,” However, the resi- in growth, a flat-rate consumed in- he said. “There are no bor- dents will have to deal come tax is a much better option.” der wars here. That is the with some headaches As its name implies, a flat- furthest thing from the during the transition rate tax would apply just one tax truth. Both [state] agen- time. Addresses, driver’s rate, regardless of the amount of income taxed, Cordato said. “Un- cies agree, and we keep licenses, voting precincts, like our existing system, a flat-rate each other informed. We utility companies, and tax offers no disincentive for peo- make decisions together. service providers might ple to work overtime, take a sec- It’s been a good process, have to be changed. ond job, or make other decisions and there is no head- Hayes was relieved, that generate additional income. butting on things. It’s not however, to find out The next dollar of income is taxed been a haphazard thing.” only one business in the at the same rate as the previous South Carolina area, a gas station, could dollar.” Sen. Wes Hayes, a York face serious economic Focusing taxation on con- County Republican and harm from the boundary sumed income would remove the member of the North change. existing bias against saving and Carolina-South Carolina “We are aware of it,” investment, said Cordato, a Ph.D. Joint Boundary Commis- he said. “We are working economist. sion, said talks have been on it.” an amicable because no The owner, Louis one is adding or taking Efird, has learned he is a Reps earn ‘F’ grade away from the original line. His state has been more than resident of North Carolina. However, when he bought the willing to participate and has done much of the work to see Lake Wylie Mini Mart in the 1990s, he was assured it was in Four members of North it through. South Carolina, where there are fewer restrictions and low- Carolina’s congressional del- “Pinning it down now so we don’t make mistakes in er taxes, allowing him to sell gas up to 30 cents per gallon egation earned an “F” grade for the future is vital,” he said. “I’m surprised it has gone this their votes on fiscal issues -dur cheaper than on the other side of the state line. He also sells long without being pinned down.” ing the 2011 session of Congress, fireworks and alcohol, which are not allowed on the North Zupan said the partnership between North Carolina according to new rankings from Carolina side of the border. and South Carolina began in 1994, after Duke Energy asked the National Taxpayer Union, a Efird says he is both “worried” and “terrified” of los- where the boundary line was and nobody knew the answer. limited-government advocacy ing his investment and income. Even so, he has faith that Many of the markers, which were placed in trees or set up group based in Washington, D.C. the joint commission will come up with an equitable plan The worst score of the pack with stone monuments, inadvertently had been destroyed of action. belongs to outgoing U.S. Rep. over the years. “They seemed genuinely concerned about the damage Brad Miller, a Democrat repre- “At the time, neither state took any initiative to re- it will do,” he said. “The commission seems to want this to senting the Tar Heel State’s 13th mark the boundary,” he said. “This made the boundary be done in a fair way, but they need tools given from both Congressional District. Miller gar- nebulous, and the perception of where it was changed over legislatures to deal with it. I applaud them for working nered just 8 percent on the score- time.” through the process in a careful manner.” card and ranked 424th out of the To rectify the situation, a memorandum of understand- Efird said both state legislatures could pass a law pro- 435 House members. Due to an ing was signed by lawmakers from both states to straighten tecting the 93 properties affected by the line change. unfriendly redistricting plan, out existing ambiguities. Representatives also created the “They should allow us a one-time election to allow us North Carolina-South Carolina Joint Boundary Commis- Miller decided to retire rather than to vote if we want to stay or if we want to go,” he said. “That sion, made up of representatives from each state. seek a sixth term in office in 2012. gives the commission a way to put it out there and makes Zupan said surveyors thoroughly research all the old Reps. Mel Watt (of the 12th everybody happy.” land records, deeds, and grants to help establish the correct Congressional District), G.K. But- The one thing Efird doesn’t want to see is his case be- terfield (of the 1st Congressional line. “It took a lot of time and effort,” he said. “The bound- ing tried in the media. He has been upset and frustrated by District), and David Price (of the misquotes in the news. He has granted only one interview: 4th Congressional District) fol- ary was always there and always true. It was just unknown to Carolina Journal. lowed closely on Miller’s heels. to people.” York County Manager Jim Baker said he is grateful the Watt and Butterfield each scored In some instances the chain of records was broken, but 11 percent and ranked 405th and Zupan said the surveying team went back as far as it could current readjustment in the boundary won’t have much of 403rd, respectively. Price scored with the existing historic evidence. an impact on the area’s tax base. He hopes the states will 12 percent and ranked 379th. Of the several hundred miles of border, the team has “grandfather” in all pre-existing conditions and hold those No member of North 31 miles left to survey and it hopes to have the work com- affected “harmless.” Carolina’s delegation earned a pleted by the end of the year. The current price tag for the The good news, Zupan said, is the new technologies “Taxpayer’s Friend” grade of project is $20 million. (including GPS) used in the process will ensure that the bor- 85 percent or better. CJ Much of the hoopla began after a survey of a portion of der never will need to be redrawn again. CJ MAY 2012 | CAROLINA JOURNAL PAGE 5 North Carolina Medicaid Shortfall Has Lawmakers and Governor Scrambling

By Dan E. Way the hospitals, it’s the nursing home oper on the numbers is better,” agreed flexible solutions, he said. “North Car- Contributor erators.” Sen. Martin Nesbitt, D-Buncombe, also olina is not at all unusual.” RALEIGH The Joint Legislative Commis- a member of the Governmental Opera- Lacking flexibility, states are tate officials are scrambling to sion on Governmental Operations has tions Commission. shedding optional populations they close a Medicaid shortfall that “pressed the governor’s budget staff” “But you’re going to have a 1- or don’t have to cover under Medicaid, could be as high as a quarter- to bridge the cash-flow issue by using 2- or 3-percent fluctuation in the Med- looking for tighter managed care, try- Sbillion dollars, or risk being unable to internal Department of Health and Hu- icaid budget that ... no person on Earth ing to get generic medications ap- deliver services to recipients and make man Services money “and whatever can project,” Nesbitt said. proved, or getting prescription prices payments to providers. funds the governor can get her hands Projecting within 5 percent on an lowered. “We begin having cash problems on until we get back in session,” said entitlement program “is pretty good” In Arkansas, cost-control focus about two weeks from now,” state bud- state Sen. Peter Brunstetter, R-Forsyth, because it’s impossible to predict how is being placed on populations with get director Andy Willis said April 17. a member of many will chronic diseases and expensive treat- State lawmakers are pushing to the commis- use it and for ments. Ensuring patients take their inject more fiscal discipline and better sion. what services, medications and get seen early in a forecasting into Medicaid budgeting “They’re Nesbitt said. doctor’s office if a problem erupts cuts to end a series of annual overruns that confident they A $150 million down on more costly emergency room have required tapping into the state’s can find ways gap would visits or long hospitalizations. General Fund. The shortfall was $200 to do that,” he be roughly 1 The fee-for-service model doesn’t million two years ago and $600 million said, starting percent of the create the best incentives for reduc- last year. with pulling $12.9 billion ing costs because people just show up Much of this year’s deficit is a money out of budget. at a provider’s office and the bill gets cash-flow problem caused by a federal other agen- “ W e paid, Pattison said. Some states are be- delay in approving several cost-saving cies under the think the de- ing more aggressive, with some degree Medicaid plan amendments North DHHS um- partment has of cost-control success, in developing Carolina officials have proposed. This brella. done a very health management initiatives. delay has held up money owed to the Brunstet- good job of “The states are definitely realiz- state. Willis is confident the changes ter said grant- using a fast ing that they have to talk to each other, will be approved, but many may not ing the governor authority to redirect forecasting model that they purchased they have to share information that’s be finalized before the June 30 end of money from departments outside of several years ago,” Willis said. becoming available,” Pattison said. the fiscal year. DHHS will be “one of the first bills we “But one thing we’re not doing Brunstetter said getting a grip on Some of the shortfall is due to will deal with when we get to the short very well is sharing the information,” Medicaid is essential to prevent it from higher-than-anticipated utilization of session” on May 16. Willis said. “You don’t have a second consuming all of the cost savings else- the entitlement program. “Regardless of what happens, and third set of eyes looking at the “We’ve had three years that I’m there seems to be this recurring theme forecast model” similar to what is done where in the state budget and gobbling aware of where we’ve had year-end where we’re missing our Medicaid tar- in projecting revenues for the general up the unbudgeted tax revenues that Medicaid problems, where we’re not gets,” he said. And the legislature is fund, universities, or public schools. come in above projections. meeting what we need to meet as far still paying for past overdraws from Willis advocates a similar team- “You get into the second year of as the appropriations amount,” Wil- the federal government, for negative work approach for the biennium, and there are a number lis said. “This year our shortfall is be- audit findings, and other issues while Medicaid, with a of things legisla- tween $150 million and $250 million.” shelling money out of the General person in the Of- tors might like to Medicaid is “a beast” that is Fund to close year-end budget gaps. fice of State Bud- Cash-flow do” in education “driving the structural integrity of the “Getting Medicaid to the point get and Manage- or capital proj- budget in a way that I have not seen,” where the amounts are predictable ment and another problems and ects spending, Willis said. “When we don’t have the … is in everyone’s best interests,” in the Division of Brunstetter said. funds for it, providers run the risk of Brunstetter said. Fiscal Research. growing Medicaid Taking care of the not getting paid. It’s the doctors, it’s “Anything we can do to get clos- They could help Medicaid shortfall review the num- entitlements “crowds out any bers, better iden- led to shortfall ability to do some- tify potential chal- thing in the sec- lenges, promote ond year of the bi- different solu- ennium,” he said. tions, and work to avoid surprises late “That takes away any money in the budget year. available to pay bills when another There also have been cash man- part of the budget goes over,” Nesbitt agement issues that can be addressed said. on the executive side. Medicaid is “one of the fastest- “Our side should be looking at growing pieces of our budget,” Nesbitt that. We’ve not been for the past three said. “We’ve got to get the costs under years,” Willis said. “We don’t have a control, and you can’t get the costs un- plan typically until there’s a problem der control as long as you’re doing cost in March. I’d much rather know that shifting because a portion of your pop- in August.” ulation is uninsured and therefore not “I can’t think of a state, maybe paying.” Nesbitt says universal health a small state like North Dakota that’s care is necessary to make costs more having an oil boom,” that’s getting predictable. control of its Medicaid spending, said Brunstetter disagrees, saying Scott Pattison, executive director of North Carolina could be forced to the National Association of State Bud- add between 400,000 and 500,000 new get Officers in Washington, D.C. Medicaid recipients in 2014 if the fed- “Everybody has been saying the eral Affordable Care Act survives a Su- same thing. Every new dollar, with preme Court challenge. few exceptions, is going to Medicaid,” “It looks to me like this is going Pattison said. Rigid federal guidelines to be potentially a budget buster if this prevent states from implementing goes through,” he said. CJ PAGE 6 MAY 2012 | CAROLINA JOURNAL North Carolina Fox News Chief Ailes Pushes Watchdog Journalism at UNC-CH

By Dan E. Way Ailes drew a parallel between Contributor King and America’s military person- CHAPEL HILL nel. ’m the mole,” Fox News Channel “They are warriors who don’t chairman and CEO Roger Ailes want war,” Ailes said. “They are will- fibbed in a bit of faux news folly ing to die for peace if it comes to that,” Iduring remarks April 12 at the 23rd and that is why Fox News focuses on Roy H. Park Distinguished Lecture Se- military stories. ries on the UNC campus. After leaving the Douglas show, Of course, the mole is the disgrun- he operated the Ailes Communications tled Joe Muto, an associate producer at consulting company prior to his career Fox’s No. 1-rated “The O’Reilly Fac- with Fox News. tor,” who vowed earlier that week to He reminded the audience that expose evildoing as an insider at Fox the U.S. Constitution was written to News for the Gawker website. Instead, protect citizens from government be- Muto’s digital fingerprints foiled his cause “everybody who wrote it came tell-all foray within 24 hours of the ini- from countries where the government tial posts appearing. Fox News Channel chairman and CEO Roger Ailes gave the 23rd Roy H. Park Distin- got a little too oppressive ... places guished Lecture April 12 at UNC-Chapel Hill. (Photo by Jarrard Cole/reesenews.org) Ailes’ playfulness with the corpo- where the government showed up in the dark of night” and took away pos- rate espionage — and accompanying growth and intruding on personal life, are the only network that has not had sessions, family, and dignity. dart about the culture that fomented it any layoffs because of economic condi- telling the future news representatives Journalism is the only job protect- — were illustrative of his hour-long re- tions.” “it’s up to journalism to make sure we ed by the Constitution — in the First marks, a blend of wry wit and blunt as- He said he is “not a big fan of don’t tie ourselves up in something we Amendment guarantee of freedom of sessment in deadpan delivery to more government confiscating more than a don’t want” by examining regulations the press, Ailes said, and journalists than 200 audience members. third of what we for their erosion have a duty to be a watchdog of the “We’re not doing anything make. I believe a of personal liber- government, not subservient to it or a wrong, so I’m not really worried about third is fair.” Do- ties and exposing fawning admirer of its politicians. the mole,” Ailes said of the posts nating to charity them. Ailes: Bias isn’t “Democracy depends on free- by Muto intended to embarrass Fox for worthy causes And he her- dom of the press, but freedom depends News. They included bits about Bill is important, he alded American always what you on fairness in the press. There has to be O’Reilly’s bathroom habits, and video said. exceptionalism, more than one point of view,” Ailes of commentator Sean Hannity and Re- put in a story; it Ailes was saluted the na- said, defending his company against publican presidential candidate Mitt executive production’s military, attacks that it has a conservative bent. Romney. can also be what er of the Emmy and defended the With most of the media leaning “The mole shows a culture that Award-winning capitalist business you leave out to the left, “Don’t you think it’s valu- believes in theft, a lack of loyalty, turn- “The Mike Doug- structure. able to have at least one little voice in ing on its colleagues, lying to manage- las Show,” the “You’re go- the wilderness that might differ from ment,” Ailes said. Muto has been fired. m o s t - w a t c h e d ing to hear your you?” he said. “If there’s an alternative Fox lawyers are exploring criminal syndicated talk program of its time. country criticized. As a journalist, you point of view, don’t wet your pants.” charges and civil action. Ailes said he twice met with Martin must question your country. But you And despite attacks on its news Ailes’ lecture was laced with Luther King Jr. on the talk show. also must question the criticism,” Ailes style, Ailes said, “In 15 years we have stern advice for aspiring journalists “He was under tremendous pres- said. never taken a story down because we and disdain for declining journalistic sure to lead a violent revolution, and “We have a historic, heroic histo- he refused to do it. He said we would got it wrong,” a claim he said that values, such as abandoning tradition- ry,” he said. “American exceptionalism change the country peacefully, and he the major networks, other cable chan- al standards of multiple sources for a does exist because we believe in free- lost his life doing it,” Ailes said. “He nels, and The New York Times can’t story, crusading for political causes, or dom. You can tell this is a great country was a brave man.” make. CJ citing Wikipedia and other unreliable because everybody is trying to get in Internet sources. and nobody’s trying to get out.” “Remember, bias is not necessar- Ailes lauded Park for creating a ily what you write in a story, it may be multimedia company from the ground what you leave out of a story or refuse up. to cover,” Ailes said. “That’s a major contribution to Visit our Wilmington regional page He also admonished aspiring society and a major contribution to journalists to change their majors to poor people” because it created jobs, http://wilmington.johnlocke.org political science if their goal is to push he said. “Don’t let people talk you out political causes through their report- of trying to succeed or make you feel The John Locke Foundation ing. has five regional Web sites span- Many journalism students say guilty about making money.” they are in that course of study for He ticked off a list of Fox News ning the state from the mountains “some version of ‘change the world’ or accomplishments: staying ahead of to the sea. ‘save the world,’” Ailes said. They’re CNN and MSNBC in the ratings for stumped, he said, when he asks them 10 straight years; showing profitable The Wilmington regional page why they think the world wants them growth for 58 consecutive quarters; includes news, policy reports having 123 months — 41 quarters — at to change it. and research of interest to “I think we got a deeper insight the No. 1 position in cable news, with into the man behind Fox News,” said six shows at the No. 1 position in their people in the coastal area. Susan King, dean of the UNC School time slots for more than 100 consecu- of Journalism and Mass Communi- tive months. It also features the blog Squall cation and master of ceremonies at “I tell you about these ratings Lines, featuring commentary the lecture, named for Roy H. Park, a because ratings bring in money, and on issues confronting coastal North Carolina native and founder of that’s how you get a paycheck,” Ailes N.C. residents. the Park Communications radio, tele- said. vision, and newspaper conglomerate. “Yes, you are doing it for a high- Ailes railed against the prolifera- er reason, but without the paycheck The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 tion of regulations choking business you’re not doing it at all,” he said. “We MAY 2012 | CAROLINA JOURNAL PAGE 7 Education High School Grad Enrollment COMMENTARY In Remedial Courses On Rise Home Schooling By CJ Staff in one or more remedial courses, a Goes to College RALEIGH 7 percent increase from the 2007-08 or a third consecutive year, the school year.” wenty years ago homeschool- (or dramatically reducing) outside percentage of North Carolina These data should raise red flags, ing was relegated to the employment. high-school graduates enroll- Stoops said. “If more newly enrolled fringes of K-12 education — But home schooling parents ingF in at least one community college community college students are taking Tthe spurned stepchild in a newly who stick it out over the long haul remedial course increased, the John these remedial classes, this shows an blended family of schooling options. are well aware of the costs, and Locke Foundation’s top education ex- increasing number of graduates from Today home schooling is a credible, generally welcome the accountabil- pert has found. North Carolina public schools lack the viable educational choice that is ity and validation of standardized Sixty-five percent of 2011 high- basic skills needed to enroll in entry- garnering respect, even admiration, tests. Stephen Estes, a 2011 college school graduates entering a commu- level college courses,” he said. “Sig- from outside educators. At the na- graduate and former home schooler, nity college in the fall of 2011 took a nificant increases in English and math- tion’s elite colleges and universities, says his parents insisted he take remedial course in English, math, or ematics remediation suggest that the once-wary admissions officers are SAT subject tests in high school, as reading, an increase from 64 percent standards for high school graduation validating the benefits of a home well as Advanced Placement exams of incoming high school graduates en- remain alarmingly low. Low standards education in the best way possible — which he passed — in physics, rolling in community college the previ- help provide marginal students an eas- — with much-coveted acceptances. environmental science, and English. ous school year. ier path to graduation, thereby increas- As the home schooling move- Kelsey Farson, the first recipi- Terry Stoops, JLF director of edu- ing North Carolina’s graduation rate.” ment gains converts, enrollments ent of UNC-Chapel Hill’s pres- cation studies, says the numbers sug- Stoops intentionally limited his are booming. Nationwide tigious Morehead-Cain gest school graduation standards re- study to community college remedial some 2 million students Scholarship to be home main “alarmingly low.” courses. Students enrolled in one or are taught at home; in schooled all the way State education officials have more remedial courses at a community North Carolina, more through the K-12 years, touted a recent increase in the state’s college account for about 20 percent of than 83,000 students were credits her parents with h i g h - s c h o o l all high school home schooled in 2011. If “instilling a lifelong love graduation rate graduates in current trends continue, of learning.” They covered — from 68.3 per- North Carolina, statewide home schooling academic fundamentals, cent in 2006 to Stoops said. enrollments will catapult but also sought opportuni- a revised 77.9 “I think few past private schooling ties for their children to percent in 2011. would object to over the next five to 10 KRISTEN develop individual gifts. A When graduation community col- years. BLAIR talented high school math rates for the 2010- leges providing Surging popular- student, Kelsey learned 11 school year remedial edu- ity notwithstanding, can physics from her father, were released cation and ser- home schooling survive studied AP Calculus with in August, State vices to adults the hard scrutiny of outside account- a private tutor at Davidson College, Board of Educa- who have spent ability? Indeed it can. According to and enrolled in numerous commu- tion Chairman years away from a 2009 study from the Home School nity college courses. She took nine Bill Harrison said school,” Stoops Legal Defense Association of almost AP exams in subjects ranging from 77.9 percent “is not where we want to said. “However, that population is not 12,000 home schooled students, Calculus to microeconomics — and be, but it certainly is cause to pause part of this discussion. These statistics home schoolers scored 37 percent- received credit for all but one. She’ll and celebrate.” represent those who graduated from age points higher on standardized graduate from UNC-Chapel Hill this Stoops urged caution. “On the high school the summer before they tests than their public school coun- May, with a bright future in public surface, North Carolina’s increasing enrolled in a community college. It is terparts. A more recent study com- policy. graduation rate appears to signal a unconscionable that our community paring Canadian homeschooled and Given such impressive aca- systematic improvement in our public colleges must spend millions of dol- public school students, published demic achievement from home schools,” Stoops said. “But quantity lars on remedial courses for those who in the Canadian Journal of Behavioral schoolers, it’s no surprise that is not the same as quality. As public have just graduated from high school.” Science in 2011, also found home colleges and universities are tak- school districts have continued to in- Links between graduation and schooling gave kids a boost — “from ing notice. According to Stanford crease their graduation rate, they have remedial work deserve much more a half-grade advantage in math to admissions, “Home schooled done so at the expense of providing scrutiny, Stoops said. “Remediation 2.2 grade levels in reading,” notes students comprise a small yet grow- graduates with basic literacy and math and graduation data are limited, and lead author, Sandra Martin-Chang. ing percentage of our applicant skills.” this study provides an overview of a There’s a key caveat to home pool.” Princeton “welcomes” home In a JLF Spotlight report pub- complex issue,” he said. “Researchers schooling’s academic acclamation: schooled applicants, noting that one Home schooled children excel in home schooler went on to gradu- lished in September 2011, Stoops ex- should conduct much more compre- “structured” academic environ- ate as the university’s Class of 2002 amined increases in both public school hensive studies using multiple, multi- ments, in which parents provide valedictorian. And at Duke, admis- graduation rates from 2007 to 2009 and year student performance metrics.” enrollment in state community col- intensive, formalized instruction. sions materials state: “For the past The percentage of incoming So-called “un-schooling” settings, several years, home schooled stu- lege remedial courses in the following high-school graduates taking remedial school years. “The state’s four-year which lack clear parameters and dents have been admitted to Duke courses at community colleges has ris- graduation rate grew by 2.3 percent direct parental guidance, produce at a rate equal to or higher than that en as follows: 57 percent in 2007-08; 60 during that time period, from 69.5 per- student outcomes that are inferior to for the entire applicant pool.” percent in 2008-09; 64 percent in 2009- cent to 71.8 percent,” Stoops said. “At public schools, the Canadian study For all of the devoted home the same time, enrollment in commu- 10; and 65 percent in 2010-11. found. schooling parents out there, this nity college remedial classes — also Stoops added that even though It’s also worth noting that hard-won affirmation is reason to known as ‘Developmental’ classes — legislative Republicans have taken the manifold demands of home celebrate. For the rest of us, it offers increased by an even faster rate.” heavy criticism for education spend- schooling aren’t workable for many irrefutable proof that a marriage of By 2009-10, more than one-half ing authorized in the two-year bud- families. Home schooling requires parental sacrifice and educational of students newly enrolled in a North get passed in June 2011, Democrats enormous amounts of parental freedom can, in fact, produce quite a Carolina community college took a re- controlled the legislature over the commitment, financial sacrifice, wonderful child. CJ medial math course, while nearly 40 four-year span represented in the re- and time. At least one parent must percent enrolled in a remedial English mediation data. Data for the 2011-12 devote considerable energies to Kristen Blair is a North Carolina course. “In sum, 64 percent of new school year will be available in several teaching those kids, often forgoing Education Alliance Fellow. community college students enrolled months, he said. CJ PAGE 8 MAY 2012 | CAROLINA JOURNAL Education With 100-Max Cap Lifted, Demand For Charter Schools Surges By David N. Bass March to put the issue before voters Associate Editor in the November election. A proposed RALEIGH constitutional amendment would re- emand for new charter schools store the right of the Georgia Charter in the Tar Heel State has surged Schools Commission to OK new char- following the enactment of a ters, even if local boards of education Dbill approved by the N.C. General As- have rejected the schools. sembly and signed into law by Gov. Lawmakers passed the amend- Bev Perdue in 2011 that lifted the ment in response to a Georgia Supreme 100-school cap. Court ruling in 2011 that stripped the By mid-April, approximately commission of its power. 60 applications — a record-breaking number — for new charters had been ‘Fast-track’ option submitted to the N.C. Office of Charter Schools. If approved, the new charter In North Carolina, the State schools would open by the fall of 2013. Board of Education put nine char- The applications run the gam- ter schools on its “fast-track” option, ut of rural and urban regions across meaning that they have four months The website of the N.C. Public Charter Schools Association, which encourages the of planning time rather than the tradi- North Carolina — from the Triad, Tri- creation of new charter schools in North Carolina. angle, and Charlotte regions to rural tional 12-month period. These schools Randolph and Chatham counties. differences in a conference committee, Public Charter Schools Association. are slated to open in August 2012. In Wake County, two schools — resulting in a 45-0 vote in the Senate A total of 27 organizations sub- Longleaf School of the Arts and Wis- and a 108-5 vote in the House. Gov. Bev Charter growth mitted applications for the fast-track dom Academy — submitted applica- Perdue signed the bill into law in June. Even as North Carolina’s econ- option by the November 2011 dead- tions. If all of Mecklenburg County’s Charter schools are funded with omy continues to lag, charter schools line, but the N.C. Public Charter School 11 applications are OK’ed, the county taxpayer dollars but don’t operate un- are experiencing a historic boom. An Advisory Council recommended only could soon see a boom in charter- der many of the restrictions imposed April article in The Charlotte Observer nine of them to the state board for ap- school growth. on traditional public schools. As a re- reported that charters are expected proval. “Many predicted that the state sult, demand for students to attend the to account for one-third of all public The advisory council has 15 mem- would receive between 50 and 100 ap- schools is high, in many counties re- school enrollment growth in Charlotte- bers: eight appointed by the governor, plications, so this is in line with expec- sulting in lengthy waiting lists. Mecklenburg Schools in 2013. three by the speaker of the House, three “Thirty thousand students are tations,” said Terry Stoops, director of “Projections show CMS gaining by the president pro tem of the Senate, currently on public charter waiting education studies for the John Locke about 2,000 students next year, an in- and one by the state superintendent of Foundation. “Most of the applications lists, so clearly parents are seeking crease of about 1.4 percent,” the news- public instruction. are from urban and suburban coun- new ways to educate their children in paper reported. “About 1,000 more Stoops said that he was “satis- ties where demand for existing char- environments that meet their unique Mecklenburg students will attend fied” with the advisory council’s rec- ter schools far outpaces supply. This is needs,” said Darrell Allison, president charters, a 12 percent jump.” what we would expect from a properly of Parents for Educational Freedom in “I really do believe that you’re ommendations. “The process of open- functioning education market.” North Carolina, a group that favors going to see more and more families, ing a charter school in six months is In a rare instance last year of bi- education reform. particularly working middle class, daunting, even to the most seasoned partisan agreement on a major bill, the “It is our hope that other educa- working poor, choosing these options charter-school operator,” he said. legislature approved Senate Bill 8, No tion entrepreneurs across North Caro- that heretofore haven’t been avail- “Fortunately, the applicants approved Cap on Number of Charter Schools, by lina understand that the ball is now in able,” Allison said. for ‘fast-tracked’ charters have the an almost unanimous vote. The two their court to form groups that blossom The renewed interest in charter experience and resources needed to chambers passed differing versions of into new charter schools,” said Eddie schools isn’t confined to the Old North open a charter school quickly and the bill, but lawmakers hammered out Goodall, executive director of the N.C. State. Georgia’s legislature voted in successfully.” CJ

Books authored By JLF staFFers Efficiency and Externalities in an Open-Ended Universe

By Roy Cordato Vice President for Research John Locke Foundation “Cordato’s book is a solid performance, demonstrating impressive mastery of both the Austrian and neoclassical literature.” Israel Kirzner Cato Journal www.mises.org MAY 2012 | CAROLINA JOURNAL PAGE 9 Education Health Center Plan Spurs Debate on Government’s Role By Dan Way Sciver said. “Contraceptives, including Contributor condoms and other devices, shall not RALEIGH be made available or distributed on statewide youth health advo- school property.” cacy group is pushing to create But Colorado-based health pol- a school-based health center at icy analyst Linda Gorman cautioned, ASoutheast Raleigh High School to treat based on experience in her state, that uninsured and underinsured students. parents should remain vigilant. Critics say, however, it is bad business “They swore up and down they to inject government health care into would not dispense contraceptives. the classroom. And they didn’t,” said Gorman, senior Youth Empowered Solutions had fellow and director of the Health Care planned by the end of April, after this Policy Institute at the Independence issue went to press, to submit more Institute, a free-market think tank. In- than 2,000 petition signatures and 400 stead, she said, the centers “were dis- postcards supporting the center to the pensing vouchers to Planned Parent- Wake County school board. hood next door.” The nonprofit hopes to apply this School clinics “mostly serve low- summer for a grant of up to $500,000 income people who have much bigger through the federal Affordable Care [health] issues” than those that will be Act for capital costs such as a modu- Youth Empowered Solutions, which says on its website that it “empowers youth, in treated at school, Gorman said. That lar building on a school campus, class- partnership with adults, to create community change,” wants to open a health center drives up costs in the finite Medicaid rooms upfitted as a doctor’s office, and at Southeast Raleigh High School to serve uninsured and underinsured students. funding pool. large supply items. co-founder of the Citizens’ Council for “In Wake County there are a She said many of the mental The Wake County Health De- Health Freedom in St. Paul, Minn. significant amount of students being health components are “a bunch of partment, UNC Health System, Rex “We believe that parents are re- suspended for behavioral and mental nonsense,” such as a girl being upset Healthcare, and WakeMed Health & sponsible for their children, so we be- health reasons,” Ravelli said. “Men- over a fight with her boyfriend. Med- Hospitals are possible staffing, op- lieve that government shouldn’t be tal health clinicians could work with icaid is billed at the same rate for that erational, and funding partners, said expanding its reach into the families those students to reduce suspensions. lover’s spat as for a quadriplegic who Parrish Ravelli, leader of the Access through the schools, where parents A nurse practitioner [who] can diag- needs home health care to survive, she to Health Care Team under Raleigh- are out of the picture” during school nose and write prescriptions and a reg- said. based YES. hours, Brase said. istered dietitian would be part of the “They’re throwing all of these YES will submit a formal pro- “It’s not about starting a new program. A physician’s assistant might resources at basically healthy chil- posal to the school board by the end of social program at the school,” Ravelli be on staff.” dren,” Gorman said. “If a kid is sick, this school year and hopes to be opera- said. “While I understand the desire Parents would sign consent doc- he should be seeing a doctor, not some tional by the end of the 2012-13 school to keep education siloed and separate uments for students to be seen at a kind of weird medical setup.” year, Ravelli said. and focused on grades, the reality is no school health center. Private insurance, foundation But the proposal has its critics, matter how good a school is, if the stu- But that “doesn’t mean they grants, the health department, and who say that the centers will do much dent is not healthy, they are not going know what they’re giving consent to, community partners would help sus- more than serve as infirmaries for to be in their seat.” or what all a school-based clinic can tain the school clinics, Ravelli said. students. “In our opinion, all of this Immunizations, flu shots, sports do,” Brase said. “Students may not tell But Gorman warned that schools is about being intrusive on the fam- physicals, nutritional services, and their parents that they went to a clinic.” might see school health centers as a ily and building dependency on gov- “basic level of care” might be available In some states, school-based clin- source of revenue if the school could ernment services” among malleable before and after school and during the ics have transported students across receive a percentage of the Medicaid youths, said Twila Brase, president and school day, he said. state lines for abortions, she said. payments the center generated. Mas- “These are the sort of things that sachusetts experienced “incredible can happen when you have a govern- amounts of graft,” she said, includ- Locke, Jefferson and the Justices: ment clinic in a government institu- ing billing for services on days when tion,” Brase said. schools were closed, before the state Foundations and Failures of the U.S. Government In North Carolina, health regula- instituted reforms of its school-based tions on school health centers prohibit centers. release of students’ medical records on “In some places, notably where I By George M. Stephens pregnancy, substance abuse, emotional am, the school district gets to keep 30 disturbances, and sexually transmitted percent of the Medicaid billing,” Gor- Preface by Newt Gingrich diseases except in life-threatening cir- man said. cumstances. A court order or student “We are unaware of any Medic- “This book is about American consent is needed for a parent to access aid payments made to local education politics and law; it is also about a child’s alcohol and substance abuse agencies for hosting SHCs” or any oth- the roots of the Contract with treatment records. er financial windfall, Van Sciver said. America. A logical place to find DHHS spokesman Mark Van Marvin Connelly, Wake County Sciver said contraception is not an issue the intent of the Founders is in Schools assistant superintendent for at North Carolina school health cen- student support services, said the dis- Locke, [and] Stephens makes ters. The department partially funds 22 trict needs “to look at the fiscal impli- a contribution to highlighting of the state’s 50 school clinics. One em- cations” to determine whether there this.” ployee provides technical assistance, would be costs to host a health center Newt Gingrich contract monitoring, and credentialing or school revenue generated from it. Former Speaker for those 22 centers, which are required The district has two representatives on U.S. House to report performance data midyear the YES task force. of Representatives and at the end of the year, Van Sciver “We would want to look at the said. needs assessment in general” for stu- “No reproductive health services dents and the medical community, are offered at SHCs located on school and where school health centers may Algora Publishing, New York (www.algora.com) campuses,” based on state law, Van be best placed, Connelly said. CJ PAGE 10 MAY 2012 | CAROLINA JOURNAL Local Government Town and County Chapel Hill Cell Phone Ban Irks Businesses Rural population loss By Karen McMahan reach a live person. If they don’t reach me, they’ll most likely New figures from the Cen- Contributor go with the first live person they get,” Cotton said. He joked sus Bureau show that North CHAPEL HILL that even the original car phone had hands-free capability. Carolina’s population grew 1.3 usiness owners are concerned that Chapel Hill’s ban Frank Coker, owner of Senior Helpers, a provider of percent from 2010 to 2011. That on all cell phone use by drivers when their motor ve- in-home senior care, told CJ that “he could see some reasons growth was not spread equally hicles are in motion will hurt sales and customer ser- to do the ban, but not the hands-free, and it’s just a second- throughout the state. Indeed, as Bvice. For some health care-related businesses, the ban could ary offense with a $25 fine.” the Winston-Salem Journal reports, have lethal consequences. “But a missed call in my business can potentially be the Census Bureau estimates that Chapel Hill became the first municipality in the na- life-threatening for my clients,” said Coker. “If a senior falls 44 of the state’s 100 counties lost tion to issue such a far-reaching ban when the town council or has some other medical emergency, they can call my busi- population over that time period. enacted the measure March 26 by a 5-4 vote. The law goes ness 24 hours a day, 7 days a week, and always reach a live Uneven growth is nothing into effect June 1. person. My car is my office. I don’t want to have to drive new in North Carolina, but hav- The ban immediately attracted national attention for five miles to find a place where I can pull off the road to ing so many counties lose popu- both its uniqueness and its strictness. Even the strictest bans return or answer a call. So I’ll continue to take calls so I can lation, even if in many cases only on mobile technology imposed by other states and localities provide the best care to my clients.” slightly, is unprecedented. Be- prohibit drivers from texting or using hand-held devices, tween 2000 and 2010, only seven not from using hands-free operation. Education versus legislation counties — Halifax, Hyde, Jones, Council members supporting the ban say their goal Lenoir, Martin, Mitchell, and Safer technology was to educate the public on the dangers of distracted driv- Washington — saw their popula- Business owners have ex- tions fall. ing. Several hope this law will pressed particular outrage over push legislators to enact a state- “What it is telling you is the ban on hands-free opera- that cities matter more than ever,” wide ban. tion. Smart phones and built-in said Keith Debbage, a geography Critics wonder why cell services in newer cars, includ- professor at the University of phones are being singled out ing GPS and voice commands North Carolina at Greensboro. from other forms of distracted through Bluetooth technology, “In the large, urban economies driving. Council member Gene enable drivers to receive or of the state, you have a more di- Pease voted against the ban, make calls by pushing a single verse portfolio and wider educa- even though he supports a ban button. Such technology was tional opportunities.” on hand-held devices, “because developed, in part, to improve The fastest-growing county the issue is one the state should safety. in the state was Hoke, which saw address, the way the law is Council member Laurin its population grow by nearly 5 written makes it virtually im- Easthom, who voted against percent. Nearby Harnett County possible to enforce, it goes be- the measure, told Carolina Jour- grew the second fastest, with yond common sense, and, if the nal, “It’s laughable that you can a 4 percent growth rate. Army real issue is to educate, an or- talk to your mom or dad but personnel moving to the region dinance isn’t the way to do it.” as part of the base realignment not your brother,” referring to Easthom agreed, saying process are believed to be at least an exception that allows cell she would’ve voted against the partially responsible for the two phone conversations with the ban under any circumstances counties’ growth. driver’s parent, child, legal because she believes the gov- Overall, the Charlotte and guardian, or spouse. The law ernment can’t legislate person- Raleigh-Durham areas accounted also provides an exception for al responsibility. “If you can get for nearly 45 percent of the popu- emergencies. distracted by talking on a cell phone, what about talking to a lation growth in the state. Mobile technologies have revolutionized how com- passenger or listening to the radio or an audiobook? Where panies operate, allowing them to reduce costs while speed- do you draw the line?” Easthom asked. ing up sales and service. For many sales and customer ser- Walter Olson, senior fellow at the Cato Institute’s Cen- vice professionals, the car has become their primary office. Charlotte spending plan ter for Constitutional Studies, told CJ that even the National They’re glad they no longer have to drive around for miles Highway Transportation Safety Administration’s own sta- Charlotte City Manager to find a phone booth to contact the home office or custom- tistics show that the leading source of driver distraction is Curt Walton is proposing that the ers. talking with passengers. city increase its property taxes by The ban may force drivers to resort to a similar tac- “Commercial drivers have provided decades of data 9 percent to fund nearly $1 billion tic by having to pull off the road so they can use their cell to federal agencies on possible dangers of talking on elec- in capital improvements through phone legally. 2020. Walton justifies the spend- tronic devices or other forms of distractions while operating ing and tax increase as necessary Move called ‘frivolous’ a moving vehicle, but apparently distracted driving hasn’t to keep the city from “declining,” been serious enough to warrant a ban,” Olson said. reports The Charlotte Observer. Dave Cotton, owner of AdvantaClean, a franchise that After the recent property re- provides emergency water and fire restoration, mold reme- Inconvenient statistics valuation, almost half of the city’s diation, and air duct cleaning services to customers in several counties in the Triangle area, told CJ the ban is frivolous. Despite the explosion in the use of mobile devices in tax base was concentrated in the motor vehicles, the Federal Highway Administration web- area south of the city’s down- Cotton said a CBS “This Morning” news crew fol- site states that “2010 saw the lowest fatality and injury rates town. Walton sees that as a sign lowed him as he demonstrated how difficult it can be to find ever recorded: 1.10 deaths per 100 million vehicle miles trav- of Charlotte becoming like a Rust a place to pull over to use the phone safely, yet how easy it eled.” Injury rates in 2010 declined for an 11th straight year. Belt city, with a relatively small is to use one button or voice command. Council member Donna Bell supported the portion of the population paying “I’m not against a ban on hand-held devices,” Cotton ban, saying “the data presented by the UNC De- most of the taxes. said, “I just can’t understand why they’d ban hands-free. Walton’s answer is to add I’ve worked a lot in the Northeast where some areas had partment of Public Health at the public hearing infrastructure to attract people to a ban on using hand-held devices, but they didn’t include made it really clear that distracted driving kills.” move into lower-income portions Bluetooth.” Asked whether a ban should include someone drinking of the city. This capital spending “My car is my office, and my trucks are on the road coffee, eating a sandwich, or even using a cell phone while would aim to attract the “cre- constantly. If I follow the letter of the law, I won’t be able to walking on a public thoroughfare, Bell said, “I wouldn’t be ative class” and would focus on pick up the phone or press a button to answer a call. Missing opposed to it, as long as the offense was secondary, so that rail transit projects. CJ a call can means thousands of dollars in lost business. With the police couldn’t pull you over unless you missed a turn or the types of emergencies my customers have, they need to committed some another traffic violation first.” CJ MAY 2012 | CAROLINA JOURNAL PAGE 11 Local Government

N.C. Supreme Court Limits COMMENTARY ‘Plain Error’ Doctrine Appeals Nightmare On

By Michael Lowrey Unfortunately for Lawrence and com- Associate Editor pany, the intended victim’s neighbors Fayetteville Street RALEIGH alerted the police of suspicious activ- s we at the John Locke without the $1 million in restaurant ity. Lawrence was arrested and con- n an April decision, the N.C. Su- Foundation predicted when equipment and renovations. Let’s victed of two counts each of attempted preme Court restricted the ability its doors opened in 2008, the say the city had rented the loca- of criminal defendants to challenge kidnapping, attempted robbery with a city-subsidizedA Mint restaurant has tion to a business for retail or office Itheir convictions on appeal. dangerous weapon, conspiracy to com- closed its doors after a net loss of space and the renters paid for their In a case involving a Fayette- mit robbery with a dangerous weapon, $400,000. own equipment and furnishings. ville man convicted of conspiring to and attempted breaking and entering. Here is the short version of The rent paid by this business likely rob a woman at gunpoint, the justices He was sentenced to between 20 and this sad story. Some city council would be $600,000 or more, and ruled that a defendant may not have 27 years in prison. members wanted to impress out-of- taxpayers could have kept the $1 the right to demand a new trial on ap- On appeal, however, the Court of town guests visiting their taxpayer- million in their pockets. peal even if a trial judge made an error Appeals found plain error and over- subsidized convention center and In addition, the city might and his attorney failed to object at the turned the conspiracy charges, cutting their $10 million remake of Fayette- have been able to raise the rent time. The key, the justices concluded, at least five years off his sentence. The ville Street. So they decided Raleigh since 2008 rather than reducing it was whether it’s likely the judge’s er- appeals court found that the judge needed a white-tablecloth by $1,200 per month as it ror — had it been had given jurors restaurant on Fayetteville did for the Mint. In ad- Street featuring “low noted at the time improper instruc- dition, how much is that country” cuisine. They — would have re- tions, to which $1 million of restaurant The North Carolina Courts took an empty space in a neither side had equipment and furnish- sulted in a differ- city-owned building and objected. The ap- ings worth now? If sold at ent verdict. gave the Raleigh Res- peals court held auction, the city would be While judg- taurant Group a cool $1 that this was plain lucky to get back one-half es try very hard to million to convert it into a error as a jury get it right, they glamorous dining estab- to one-third of the original might be misled occasionally make lishment. The first month purchase price. by the improper mistakes. If dur- after opening in Janu- MICHAEL Allen really needs instruction, and ing a criminal trial ary 2008, the Mint lost to sign up for a refresher Lawrence was as SANERA the defense ob- $96,000. That’s a whop- course in basic economics, a result entitled to and possibly reality, if he jects and an appel- ping $3,100 a day. a new trial. is to continue to provide late court decides a judge’s ruling was While the Mint con- Noting that state courts had been the city council advice on economic wrong and a U.S. constitutional right tinued racking up heavy losses, city inconsistent in applying the plain error matters. I know several qualified is involved, the defendant is entitled council members could not admit doctrine, the N.C. Supreme Court used economics professors at N.C. State to a new trial unless the judge’s error defeat, so they renegotiated the the opportunity of the state’s appeal University who would love to have is shown beyond a reasonable doubt rental contract in April 2011, giving to reconsider the issue — and ruled the Mint a $1,200 monthly reduction him in their microeconomics class- not to have affected the outcome of the against Lawrence. in rent. The city defended this move es, in which freshmen learn about case. If no federal constitutional right Writing for the high court, Justice by stating that the “opportunity cost.” is affected, then the defendant must Mark Martin stated: rental reduction was The city council show a reasonable possibility that, had “For error to constitute plain er- for three years on a members are getting the judge not made a mistake, a differ- ror, a defendant must demonstrate that 10-year contract; rent plenty of help from ent result would have happened at tri- a fundamental error occurred at trial. increases in years four the press in their effort al. In either case, this is called a “harm- To show that an error was fundamen- through 10 would to sweep this under less error standard of review.” tal, a defendant must establish preju- make up for the re- the rug. The News & Many times defense attorneys dice — that, after examination of the duction. That excuse Observer was a week don’t object at trial even though they entire record, the error ‘had a probable was laughable at the behind other local should have. By failing to object, de- impact on the jury’s finding that the time because no one media outlets in men- fendants generally lose the right to defendant was guilty,’ [and that] the believed that the Mint tioning this story. At raise that issue on appeal, which can error will often be one that ‘seriously would make it three press time, WRAL-TV have severe consequences. To allevi- affect[s] the fairness, integrity, or pub- years. Now, after one has remained silent. It ate some of that harshness, in 1936 the lic reputation of judicial proceedings.’” year of cut-rate rent, seems that, as boosters the Mint has gone bust. U.S. Supreme Court adopted “plain er- The court then applied this stan- of former Mayor Charles Meeker’s Will the city council admit ror review,” allowing federal appellate dard to Lawrence’s case and found downtown boondoggle, these defeat, get out of the restaurant courts under certain limited circum- that Lawrence could not show that the media outlets have neglected their business, and save taxpayer dol- stances to reverse a conviction even journalistic responsibilities. Thus, error had a probable impact on the jury lars? Not on your life. The plan is if the defense didn’t object. The N.C. verdict. the current mayor and city council to reopen the restaurant with new are likely to continue to fleece tax- Supreme Court did not extend the con- “The trial court correctly instruct- owners and a new concept. Perhaps payers by staying in the restaurant cept to state courts until 1983. ed the jury on the elements of attempt- a hot-dog stand would work this business. An example of the invocation of ed robbery with a dangerous weapon,” time? I have a suggestion. Perhaps the plain error doctrine by state courts Martin wrote. “The jury convicted City Manager Russell Allen the city council members could was the case of David Lawrence. defendant of that offense. Therefore, told WTVD that the taxpayers have become reality TV stars by inviting In August 2008, Lawrence joined the only additional element necessary not lost anything on this deal. That “Kitchen Nightmares” host Gordon in a plot to rob drug dealers in Fay- to convict defendant of conspiracy is true only in the fantasy world of Ramsay to teach them how to run a etteville. The would-be robbers be- to commit robbery with a dangerous public-sector accounting, not in the restaurant. CJ lieved that a certain woman was dat- weapon was that he entered into an real world of basic economics. ing a drug dealer, and they hoped to agreement to do so. ” First, you have to compare force her to tell them where he kept his The high court reinstated the the city’s claim that the Mint paid Michael Sanera is director of drugs and money. convictions. $600,000 in rent to what that space research and local government studies The plan was to kidnap her out- The case is State v Law- could have demanded in rent at the John Locke Foundation. side her house and force her to talk. rence, (100PA11). CJ PAGE 12 MAY 2012 | CAROLINA JOURNAL Local Government Raleigh Officials Won’t Say If Sales Tax Needed For Transit Center

By Dan Way anyone because that’s not a funding Contributor source” for the passenger rail portion RALEIGH of the complex. daunting array of studies, in- But he contends that the N.C. terlocal agreements, street reno- Department of Transportation’s work vations, and track work are still on other rail stations has been an eco- inA the discussion phase. But before a nomic catalyst. Some cities have devel- $212 million multimodal transit center oped multiblock master planning dis- can be built on the west side of down- tricts, partnering with private entities. town Raleigh, it’s unclear whether a The promise to build Durham Station half-cent sales tax referendum must sparked early private development in pass to guarantee the project will be the Bull City’s downtown resurgence, built. Simmons said. “The half-cent sales tax is not Raleigh City Council dedicated make or break” for the Raleigh Union An artist’s rendering of the Raleigh Union Station multimodal transit center. (Graphic $3 million from a $40 million transpor- Station project in the Boylan Wye area, from raleighnc.gov) tation bond approved by voters last said David King, Triangle Transit Au- The existing station on Cabarrus the Raleigh Amtrak station that, in his fall to the transit hub project, he said. thority general manager. Street, owned by the North Carolina view, supports relocation. But the rail station renovation it- But if the tax doesn’t pass (or if Railroad Company, serves Amtrak’s In 2010, 164,475 passengers self is expected to cost in the $30 mil- voters never get the opportunity to Piedmont, Carolinian, and Silver Star boarded or alighted at the Raleigh lion range. Track enhancement, switch- consider it), it’s unclear where local trains. Norfolk Southern and CSX run station out of 803,196 at 18 stations ing improvements, additional sidings, transit officials will find the money to freight trains nearby. statewide. In 2011, 192,434 boarded or the extension of West Street, and an ad- build Union Station. Simmons calls all those congest- alighted out of 903,090 statewide. ditional underpass for that street to al- TTA owns the vacant former Dil- ed tracks the “spaghetti bowl of Boylan “Outside of Richmond, it’s the low traffic to go under the rail tracks is lon Supply building that would be Wye,” and said working out a conflict- best-used station in the country,” Sim- in “the $70 million to $75 million range converted into a transit complex where free feasibility analysis to accommo- mons said, and it is 80 percent sup- right now,” Lamb said. buses and proposed commuter rail and date current and future users has been ported by passenger fares. “Typically, Where would that money come light rail would pick up and drop off tricky. from? passengers. The plan also envisions lo- for comparison, a transit operation is “We feel like we’re on the path- “That’s a great question, and cal Capital Area Transit and long-dis- around 25 to 35 percent, and most in- way to having a successful solution,” that’s really on everybody’s minds tance Greyhound bus lines servicing tercity passenger trains are between 30, Simmons said. “We are testing that 40, and 50 percent” fare-funded. right now,” Lamb said. The city is the center, along with Amtrak passen- reality or perception by sharing the in- ger trains and Southeast High Speed He attributed the ridership in- preparing a Tiger Program grant ap- formation with everyone” and gather- creases to population growth, rising plication with the U.S. Department of Rail services. ing feedback. The 2035 bus plan that was de- gas prices, improved service quality, Transportation for a subset of stimulus The transit hub is not without and reduced travel times. funding. veloped for Wake County proposing critics. Dallas Woodhouse, state direc- increased bus service, commuter, and But lack of parking, a small wait- “I won’t ever say never” to anoth- tor of Americans for Prosperity, a lim- ing area, and a lack of an appropri- er bond issue being sought, or divert- light rail lines “is contingent upon ited-government grass-roots organiza- half-cent sales tax revenues,” said Eric ate passenger platform inhibit further ing money allocated for other projects tion, called it “an ill-conceived project” growth, he said. to the multimodal center, Lamb said. Lamb, transportation planning man- that would be “a horrible use of tax “We’ve yet to develop a financ- “You can probably cobble the ager for the City of Raleigh. Bus ser- dollars.” ing plan” for the conversion of the money together” to complete the proj- vice is the top priority, with commuter He is opposed to the half-cent TTA building to a rail station, Sim- ect, TTA’s King said, but it is unclear rail second, and light rail on the back sales tax. mons said. “If the half-cent sales tax is “how the funding will shake out in burner, Lamb said. “We would fight the referendum not approved, then there’s no risk to the long term.” CJ Asked if the city would pursue in Wake, because if they don’t have it construction of the transit complex if in Wake, they won’t have it anywhere a half-cent tax were not passed, Lamb else,” Woodhouse said. said, “obviously, we wouldn’t build it Durham County already has if we didn’t have the services for it.” passed a half-cent tax, but is not col- But both King and Lamb said ef- lecting it until Wake and Orange coun- Visit our Triangle regional page forts continue to find other funding for ties pass their referendums. Officials in the transit center with the hope that it both counties have said they are still http://triangle.johnlocke.org can be built out to full mass transit po- assessing whether to place a referen- tential. dum before the voters in 2012. The John Locke Foundation The rail station portion of the “This will be a boondoggle that has five regional Web sites span- transit hub is “completely separate” we will never get out of” if the tran- ning the state from the mountains from the half-cent sales tax, Lamb said, sit hub is built, Woodhouse said. “It to the sea. and it is viewed as the first phase of will make people who believed in the a tiered construction schedule that Global TransPark and the [Sparta] Tea- would layer in the other transit ser- pot Museum just blush.” The Triangle regional page in- vices. TTA-owned buildings and “a He said Triangle political lead- cludes news, policy reports and hodgepodge” of other buildings in the ers and planners have “a big dream of research of interest to people warehouse district would comprise the European-style train service that will in the Research Triangle area. transit hub at full build-out. never happen” because the area is too “The current Raleigh station is an spread out, rail and bus service will not It also features the blog Right impediment to growth and ridership,” reach everyone, and auto travel makes Angles, featuring commentary which have experienced “robust, dou- more sense. on issues confronting Triangle ble-digit” increases in passengers and “If you talk to people, you vir- revenue over the past three to four tually can’t find anyone who will say, residents. years, said Pat Simmons, head of the ‘Yeah, I’ll ride the train.’ There’s just N.C. Department of Transportation rail not enough riders,” Woodhouse said. division. But Simmons points to data for The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 MAY 2012 | CAROLINA JOURNAL PAGE 13 Local Government Local Government Lobbyists Await General Assembly Short Session

By Donna Martinez may be against their best interests and from General Assembly members who ton served as chief of staff to former Contributor principles,” said Becki Gray, vice presi- were elected to represent constituents Senate President Pro Tem Marc Bas- RALEIGH dent for outreach for the John Locke in their districts. But local issues are night from 1993 to 2003, and again in orth Carolina’s courts have Foundation and a registered lobbyist increasingly complex, Hankins said, 2005 and 2006. ruled it is legal for local gov- for JLF, which publishes Carolina Jour- and sometimes legislators ask for input “In my experience, every session ernments to use taxpayer re- nal. “Let’s say you feel strongly about from his group, which focuses mainly that I worked, there always were some Nsources to lobby the General Assembly a contentious issue in your community on issues with statewide impact, or lobbyists that represented local gov- on legislation, and that’s exactly what that’s being considered by the legisla- from city- or county-specific lobbyists ernments,” Houston said. She remem- nearly two dozen cities and counties ture, or you prefer belt-tightening to and liaisons who usually focus on bills bers contract lobbyists or employee are registered to do as the May 16 leg- tax increases. Your tax money can be affecting their local community. lobbyists monitoring a slate of issues islative short session nears. used by your city or county to argue North Carolina counties with reg- or the budget process in general. Other As of March 28, eight North Car- against you.” istered lobbyists include several from lobbyists were more issue-specific. olina counties and 10 municipalities Ellis the coastal Houston said a lobbyist is some- were listed as principals in the North Hankins, r e g i o n : one who isn’t an employee of the unit of Carolina General Assembly Lobbying executive P a m l i c o , government but is hired by the govern- Directory. The local governments are director of Beaufort, ment and compensated for advocating sprinkled among more than 660 lob- the North C a m d e n , for the government’s interests. A local byists and 700 principals registered to C a ro l i n a Hyde, and government liaison is an employee of lobby on behalf of businesses, indus- League of Currituck. the unit of government whose primary tries, and advocates for and against M u n i c i - The oth- job duty includes lobbying the legisla- specific causes and issues. p a l i t i e s , ers are ture on behalf of the employer. An April 2011 “N.C. Local Gov- c o u n t e r s Granville, The 23 cities and counties with ernment Law Blog” by UNC School of that based P e r s o n , their own lobbyists or liaisons rep- Government professor of public law on case and Stan- resent only a small percentage of the and government Robert Joyce reviews law, lo- ly. The 10 hundreds of cities, towns, and counties three cases — North Carolina ex rel cal gov- registered in North Carolina. Most are members Horne v. Chafin, Bardolph v. Arnold, and ernments m u n i c i - of the League of Municipalities or the Dollar v. Cary. Joyce concludes: have a palities are North Carolina Association of County “So, it appears, local govern- responsi- scattered Commissioners. The league has four ments may use public funds to try to bility to t h ro u g h - influence the General Assembly in a communi- out North lobbyists registered to lobby the Gen- particular direction and to put out in- cate with Carolina: eral Assembly. NCACC has five. formational materials regarding issues. the General Assembly. “It says that not Creedmoor, Morganton, Salisbury, The league’s legislative goals They may not, however, use public only can municipalities and counties Wilson, Boone, Butner, Cary, Clayton, include support of legislation allow- funds to try to influence the outcome expend some public funds within rea- Stantonsburg, and Bald Head Island. ing all municipalities to adopt a pre- of an election — either an election for son in communicating with members Five local governments have li- pared meals and beverage tax, and to office or a referendum on a public is- of the General Assembly, but that they aisons registered with the Secretary adopt impact fees on development. sue.” have the responsibility to communicate of State: the cities of Wilmington and NCACC’s legislative goals include While the legality of local gov- and work with members of the General Charlotte, and the counties of Gaston, seeking legislation to give counties the ernment lobbying is settled, the ques- Assembly because that’s where all the Mecklenburg, and Durham. ability to impose on residents “by reso- tion of whether the practice is appro- authority that governs what a city and Norma Houston, a lecturer at the lution or, at the option of the Board of priate isn’t. county do comes from. That’s an im- UNC School of Government, said the Commissioners, by voter referendum “What’s happening is that people portant principle,” Hankins said. current number of local government any or all revenue options from among are being forced to pay taxes that end Gray said cities and counties al- lobbyists squares with what she recalls those that have been authorized for up supporting lobbying efforts that ready have legislative representation when working at the legislature. Hous- any other county.” CJ Help us keep our presses rolling Publishing a newspaper is an expensive proposition. Just ask the many daily newspapers that are having trouble making ends meet these days. It takes a large team of editors, re- porters, photographers and copy editors to bring you the aggressive investigative reporting you have become accustomed to seeing in Carolina Journal each month. Putting their work on newsprint and then delivering it to more than 100,000 readers each month puts a sizeable dent in the John Locke Foundation’s budget. That’s why we’re asking you to help defray those costs with a donation. Just send a check to: Carolina Journal Fund, John Locke Foundation, 200 W. Morgan St., Suite 200, Raleigh, NC 27601. We thank you for your support.

John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 14 MAY 2012 | CAROLINA JOURNAL From Page 1 Commerce Official Tried To Divert Funds To Own Nonprofit Continued from Page 1 McKoy give no indication that he planned to leave; he did not acknowl- Commerce job. Smith told CJ that she edge that Crisco asked for his resigna- was acting in her official capacity as a tion. Moreover, McKoy insisted that Commerce employee last year when he and Crisco soon would answer she applied for the grant. questions from Commerce employees Ethics conflicts not disclosed during a conference call with staff. “I have nothing to hide,” McKoy said in McKoy initially failed to note the memo, “so I am happy to answer his affiliation with NCSC on state- anything from anybody.” ments of economic interest covering To date, however, McKoy has not the years 2010 and 2011. It is a Class 1 responded to several phone messages misdemeanor “to knowingly conceal and emails left by CJ. or fail to disclose required informa- In the memo, McKoy claimed the tion” on the form. McKoy was serving CJ Online stories were untrue, but did on the NCSC board as chairman dur- not refute the details in them, and con- ing 2010 and at least through July 8, firmed several — as when he acknowl- 2011 — nearly a year after he began his edged “failing to list the non-profit on current position with Commerce. my SEI [statement of economic inter- He and Crisco filed revised state- est] form” filed with the state when he ments with the N.C. State Ethics Com- served on the state Economic Develop- mission April 16, 11 days after the ini- ment Board and after he began work- tial CJ Online story was published. ing at Commerce. McKoy’s revised statement cov- In his memo McKoy also said ered 2010 and 2011. In response to a After Carolina Journal Online published two stories about Assistant Commerce that neither he, nor any family mem- question about nonprofit affiliations, Secretary Henry McKoy’s relationship with the North Carolina Sustainability Center, ber, would gain any financial benefit he and Commerce Secretary Keith Crisco amended their statements of economic McKoy wrote, “Served as temporary interest to reflect previously undisclosed information about connections with NCSC. from the diversion of federal CDBG interim board member and officer for The wording in each of their statements is nearly identical. Crisco’s is at top above, funding to the sustainability center, the purposes of establishing this quasi- and McKoy’s is at bottom. (CJ graphic) though the CJ Online stories did not state entity [NCSC] to pursue a state make that assertion. initiative pending the appointment of North Carolina Sustainability Center penses for the calendar year 2010. The The memo is interspersed with a full permanent board.” In response to catalyzes change and inspires resi- form lists McKoy as the center’s chair- anecdotes that have no connection to a question implying the potential for a dents, businesses, and communities to man. It was dated July 8, 2011, and the sustainability center project, which conflict of interest, he stated that he was advance an economically vibrant, so- signed by McKoy as chairman. he described only in general terms as a “potential participant in a proposed cially equitable, and environmentally Last year, the center’s finances “great.” He said it “was to be the first expansion of a federal Community De- prosperous future for North Carolina.” improved, as it received the $150,000 time in the history of the state that ev- velopment Block Grant administered There was no phone number list- grant from the Z. Smith Reynolds ery community, down to the smallest by the Department of Commerce, to be ed on the website prior to the first CJ Foundation. one, could have access to some level Online report, but one now has been provided to local governments for the Counties initiated action of funding for capacity building regu- provision of technical assistance to un- added. The center’s physical address larly that would make them more com- derserved communities.” is a mailbox in a UPS Store at a North Records obtained by CJ from the petitive in the short and long-run,” but Raleigh shopping center. Only two em- Crisco’s amended statement cov- four counties show that in October, did not explain what that meant. ployees are listed. Katie Kross of Cha- ered 2011, declaring his affiliation with McKoy informed each it had been se- Rather than use the space to de- pel Hill is the center’s president, and NCSC. Crisco’s answers were identi- lected to receive more funds, even tail the project, he discussed, among Karen Sina of Raleigh is the center’s cal to McKoy’s except that he did not though he didn’t seek formal approval other things, a robbery at his home, business manager, according to the include “and officer” after “temporary for the project from his boss Crisco un- the sermon at his church the previous website. interim board member.” til Jan. 6. Sunday, his workout routine, and his The center started in 1998 as an NCSC’s website says it is an “in- In January, McKoy’s staff in- shower habits: “Every single Sunday organization named Save Our State. It dependent nonprofit organization.” structed the counties to begin the for- was renamed Sustainable North Caro- — rain, sleet, snow, or hail — unless Nowhere does it describe itself as a mal process of accepting the $600,000 lina in 2004. An April 2010 report in it is just impossible to do so because I “quasi-state entity.” grants. Each county also was provided Philanthropy Journal stated that Sustain- am away, I start out the morning do- CJ asked Crowley to identify the with a sample of a “Legally Binding able North Carolina “is suspending ing two things. I wake up early Sun- Commitment” requiring the county to legislative authority that allowed Mc- operations as it re-evaluates its future.” day morning and I do a 10-mile run transfer 90 percent of those funds over Koy and Crisco to establish a nonprofit McKoy, NCSC’s chairman at the time, — sometimes more depending on to the NCSC. affiliated with the Commerce Depart- declined to comment for that story. how early I awake. I then return home, Each county’s board of commis- ment. Crowley has not answered that On Aug. 2, 2010, the same day shower and get dressed, sometimes eat question. Perdue announced McKoy’s ap- sioners was instructed to announce breakfast, and then I drive my family and conduct a public hearing about the Refused to resign pointment to the Commerce position, and I to church.” He then “can conquer McKoy filed a name change form with new money, as required in the CDBG the world and anything that comes at McKoy’s only contact with media the N.C. Secretary of State’s office, re- guidelines. Each county held a public me,” because he has “spiritual fitness” since the initial CJ Online story was naming the organization the North hearing, and each county commission and “physical fitness.” published has been a phone conver- Carolina Sustainability Center. McKoy approved its county staff to continue Asked if anyone at Commerce sation with News & Observer reporter signed the form with the title “Chair, working with Commerce to accept the had approved McKoy’s memo to staff, John B. Frank. Board of Directors.” money. According to officials in each Crowley told CJ that he was “unaware McKoy told the N&O that Crisco Even though the center’s website county, Commerce has not told them of anybody reviewing the internal asked him to resign after the first CJ features a blog that has been updated the program is dead. memo before it was sent.” When asked Online story was published, but Mc- several times in recent weeks, NCSC’s Unauthorized memo about the staff meeting where Crisco Koy said he declined. The N&O also latest Internal Revenue Service Form and McKoy would answer questions, reported that Crisco and other top of- 990, Return of Organization Exempt McKoy indirectly addressed the Crowley said, “As far as the meeting, ficials of Gov. Bev Perdue’s administra- From Income Tax, indicates the center controversy by way of a meandering, I know it is actively being discussed, tion were involved with the nonprofit. has not been very active. It received 4,000-word memo sent to Commerce but I’m not aware of a firm date and According to its website, “the $7,638 in grants and had $8,441 in ex- employees on April 17. Not only did time yet.” CJ MAY 2012 | CAROLINA JOURNAL PAGE 15 From Page 1 State Threatens to Shut Down Private Nutrition Blog Continued from Page 1 ticing nutrition,” the board’s director says, and in North Carolina that’s something you need a license to do. Unless Cooksey completely re- writes his 3-year-old blog, he could be sued by the licensing board. If he loses the lawsuit and refuses to take down the blog, he could face up to 120 days in jail. The board’s director says Cook- sey has a First Amendment right to blog about his diet, but he can’t encourage others to adopt it unless the state has certified him as a dietitian or nutritionist. The seminar Jan. 12, Cooksey attended a nutrition seminar at a church in Charlotte. The speaker was the director of diabetes services for a local hospital. “She was giving all the wrong information, just like everyone always does — carbs are OK to eat, we must eat carbs to live, promoting low-fat, etc.,” Cooksey said. “So I spoke up.” After the meeting, he handed out a couple of business cards pointing people to his website. Three days later, he got a call from the director of the nutrition board. Steve Cooksey’s nutrition blog site, Diabetes-Warrior.net, has caused great consternation among state nutrition officials. “Basically, she told me I could not give out nutritional advice without a “If people are writing you with I’m an expert, you could still harm the no law’ abridging freedom of speech,” license,” Cooksey said. diabetic specific questions and you are public,” she said. “At least you’re not McCullagh said. “It doesn’t say ‘except He said she also told him that his responding, you are no longer just pro- trying to mislead the public, but you’re for what annoys the North Carolina website was being investigated and viding information — you are counsel- trying to get the public to trust you.” Board of Dietetics and Nutrition.’” gave him some suggestions about how ing,” she wrote. “You need a license to It’s a fine line between what’s McCullagh pointed to a sentence to bring it into compliance. provide this service.” legal and what’s not when it comes to in Cooksey’s blog the board didn’t ap- If he did not go along, the board The board also found fault with talking about nutrition. prove of: “I do suggest that your friend could file an injunction and “essential- a page titled “My Meal Plan,” where “Anyone can talk about anything eat as I do and exercise the best they ly shut the website down,” Cooksey Cooksey details what he eats daily. they want,” Burill said. “That’s a First can.” said. In red, Burill writes, “It is accept- Amendment right, so to speak.” “If that language appeared in able to provide just this information For example, a person could a book or a magazine article, do you The law [his meal plan], but when you start write a blog advocating vegetarianism, think the board would complain?” Mc- recommending it directly to people she said. Cullagh asked. “How about if some- Charla Burill, the board’s direc- you speak to or who write you, you are “Now if you advertised that one said that to a friend over dinner tor, told Carolina Journal she could not now providing diabetic counseling, you’d taken classes in nutrition, you’ve at a restaurant? Of course not. But discuss the details of Cooksey’s case which requires a license.” worked at [the federal government’s because it’s on the Web, they seem to because his website is still under in- The board also directed Cooksey Food and Nutrition Service] for three think that the First Amendment no vestigation, but agreed to talk about to remove a link offering one-on-one years, and you say ‘I believe everyone longer applies.” the law in the hypothetical. support, a personal-training type of should be a vegetarian, and I’m here to McCullagh said the board may be It’s not necessarily against the service he offered for a small fee. help you if you want to change your on more solid ground in its complaint law to give your sister or your friend Cooksey posts the following dis- diet,’ [that could be crossing the line],” about the telephone support packages nutritional advice, she said. And it’s claimer at the bottom of every page on Cooksey offers. “But … if customers not necessarily against the law to use Burill said. his website: “A vegetarian diet would be a are paying $97 or $149 or $197 a month a blog to tell people what they should “I am not a doctor, dietitian, nor to have someone listen, that sounds a eat. little bit harder [to prosecute] because nutritionist … in fact I have no medical a vegetarian is not really like a medical lot like life coaching, which doesn’t re- Where it crosses the line, Burill quire a license.” training of any kind.” diet.” said, is when a blogger “advertises In fact, he brags about his lack of “In general, I think that as long Burill said if Cooksey refuses to himself as an expert” and “takes infor- formal training throughout his blog. as someone is very clear that they’re come into compliance with the law mation from someone such that he’s “It’s so simple,” he told CJ. “I cut not a licensed dietitian, state officials voluntarily, the board could file for an performing some sort of assessment carbs. I reduced my drugs and insulin can probably find better uses of their injunction. and then giving it back with some sort until I didn’t need them at all. If I can time,” he said. of plan or diet.” figure that out, why in the hell can’t Free speech Cooksey said the board has vio- Cooksey posted a link to the all these other people [in the medical lated his freedom of speech and did a board’s review of his website. The field]?” Declan McCullagh, a CBS News disservice to the people of North Caro- document shows several Web pages Burill said the disclaimer may correspondent who writes about online lina. He said all he’s trying to do is pro- the board took issue with, including a not protect a nutrition blogger from free speech, says the board probably is vide an alternative to the experts’ opin- question-and-answer page, which the the law. violating Cooksey’s First Amendment ions on what people should be eating. director had marked in red ink noting “If I’ve given you reason to not rights. Cooksey said he’s seeking legal the places he was “assessing and coun- worry that I don’t have a license be- “The First Amendment says state assistance in case the state decides to seling” readers of his blog. cause I have all these other reasons and federal governments ‘shall make take further action against him. CJ PAGE 16 MAY 2012 | CAROLINA JOURNAL Interview O’Sullivan: Americans Feeling Fatigue on Middle East Issues

By CJ Staff RALEIGH t’s hard to read or watch any news “I look at the internal dynamics in Iran, without learning about some dis- and I think it’s very unlikely that the turbing development in the Middle IEast. Americans ought to pay close at- regime is going to be in a position to tention to those developments, says Meghan O’Sullivan, Jeane Kirkpatrick engage in a long-term negotiation. ... professor of the practice of international affairs at Harvard’s Kennedy School [T]he question is: Is military force go- of Government. She was a special as- ing to be the way out? And if military sistant to President George W. Bush and deputy national security adviser force is going to be deployed, will it for Iraq and Afghanistan. O’Sullivan recently delivered North Carolina be Israeli military force, or would it be State University’s annual John W. Pope Lecture on the topic “Making Sense of American military force?” the New Middle East.” She discussed key themes from her presentation with Meghan O’Sullivan Mitch Kokai for Carolina Journal Ra- Jeane Kirkpatrick Professor dio. (Head to http://www.carolina- Kennedy School of Government journal.com/cjradio/ to find a station Harvard University near you or to learn about the weekly CJ Radio podcast.)

Kokai: As people are hearing about Iraq, Iran, Afghanistan, Syria, followed these issues kind of knew Kokai: As we see what’s going force by an international coalition ... ? Egypt, all the things going on over what to expect from various countries. on in the Middle East today, we know there, some people may be saying, But after what became known as the that there are a lot of concerns about Kokai: During the last portion of “This is overwhelming, mind-bog- Arab Spring, our ideas about a lot of Iran, about Syria. What do you see as your Pope Lecture, you outlined sever- gling. Why should I care about this these countries have changed. What sort of the top issue that’s on the plate al steps of things that the United States stuff?” Why should we care about sorts of things are you, as an expert on that Americans should be concerned could, should, ought to do in dealing these things? these topics, looking at most closely in about at this point? with the Middle East. What are some Egypt and Syria and Israel and all of of those? O’Sullivan: O’Sullivan: Sure. And I under- these places? It’s very hard to pick just one. I think the one that certainly stand that after the last 10 years that a O’Sullivan: One of the things O’Sullivan: Well, I think that the has received the most attention and lot of Americans have what we could I was trying to get at is going back Middle East — it’s easy for us to look probably has the prospect of being the call Middle East fatigue, and so to ac- to the beginning of our conversation back and say it was stable, but we have most destabilizing is Iran’s pursuit of tually find ourselves with an ever-in- about this — fatigue, American fa- to remember that, you know, Saddam a nuclear weapon. This is not a new tigue with the Middle East, and I think creasingly complicated situation in the invaded a number of his neighbors, issue, obviously, but it really seems to Middle East may strain the tolerance of you combine that American fatigue that there were multiple wars with be coming to a head with the Iranians with suspicion on the part of a lot of many Americans. But the reality is that Israel, there were all kinds of things pursuing — in the face of all kinds of we have enduring, very large interests Arab states and Arab people about the that always made this place a little bit international opposition — aggressive- United States. A lot of people look at in the Middle East. And just to name a uncertain. But now, as you point out, ly pursuing the capability to develop few of them, they’re very familiar in- the U.S., and they say, “Well, for de- it’s more uncertain than ever. And I’m a nuclear weapon. And what is really cades the United States really propped terests. looking at a number of dynamics in the forcing debate, private and public de- We continue to have big interests up these authoritarian, kind of cor- Middle East. bate, is this question about how long rupt dictators.” And so a lot of people in the Middle East providing energy, It’s not that there’s just one dy- does the international community have not directly to the United States, but to are nervous about what role America namic that’s characterizing the entire before Iran reaches that threshold, and might play in the Middle East. I’m global energy markets. That matters a place. It’s still an extremely diverse what steps should be taken to prevent lot to our economy. … Also we have a afraid that that will lead to a situation place. I’m looking at, on the one hand, Iran, if any, to prevent Iran from reach- where America and the Middle East very real and enduring interest in Is- the post-revolutionary states, primar- ing that. And there’s the hope on the part ways, and, in fact, as I mentioned rael’s security and the viability of an ily of North Africa, but maybe also part of the Obama administration that at the beginning, I believe the United Israeli state in the Middle East. We also Yemen, and these are countries that the economic and political pressure States has a lot of enduring interests in have an interest in seeing that different are embarking on a very important that Iran is under — which is quite the Middle East, and I would also say states in the Middle East don’t become but very difficult journey of building substantial — will lead the regime in it has a lot of ability to help countries — that extremism doesn’t grow in the new institutions. So they’re going to be Tehran to decide to make a change, to successfully make this transition. Middle East, that actually moderation inward-looking, really focusing on in- shift away from the pursuit of a nucle- Now, the issue is, how do we do over time grows. And then, finally, we stitution building and nation building. ar weapon in order to get relief from have a very positive interest. We have At the same time, I’m looking at these sanctions and other strictures. that in a way that is welcome and con- an interest to the extent that we’re in the Gulf monarchies. These are coun- There are others, and I’m among structive? And it means playing a very a position to do so, to helping people tries that have very different govern- them, who would like to see negotia- different role in the Middle East than who are embarking on enormous po- ing systems. They’re monarchies for tions work, but who are very skepti- we have in the last decade. And it in- litical transitions that will hopefully the most part, and they have a lot of cal that they will work. I look at the volves things like negotiating a new lead to them living under better gov- resources. So they’re able to deal with internal dynamics in Iran, and I think relationship with the people of these ernments, which are more accountable pressure for political change in other it’s very unlikely that the regime is go- countries. We primarily dealt with the to their own people, hopefully more ways. So they have a different trajec- ing to be in a position to engage in a Mubaraks, with the Salehs, with their integrated into the global, internation- tory, but their stability and how they long-term negotiation. If negotiations governments. We really need to focus al economy, and hopefully over time handle these pressures are equally are not going to be the way out of this on the people in these countries and on will be sources of stability for the re- important. I’m also looking at the dy- problem, the question is: Is military building enduring relationships, weav- gion and for the world. namic [of] Iran, Iraq, and Syria — three force going to be the way out? And if ing the fabric of long-term, bilateral re- very different countries that are con- military force is going to be deployed, lationships which have to do with civil Kokai: Speaking of stability, it’s nected by sectarian dimensions and will it be Israeli military force, or would society, have to do with defending insti- never been stable in the Middle East, by Iran’s aggressive push to shape the it be American military force? Or in the tutions, have to do with educational ex- but for a number of years, those who Middle East. best-case scenario, would it be military changes, have to do with economics. CJ MAY 2012 | CAROLINA JOURNAL PAGE 17 Higher Education Atlas Colloquium Targets COMMENTARY The Damage Done By Inertia of Bureaucracies Federal Student Aid By George Leef on obstacles that federal policy puts in Contributor the way of those who would challenge hen the federal govern- endeavor (whether just learning RALEIGH the status quo. Parento argued that if ment’s major student various “how to” manuals for your aid programs began in home, or undertaking a Ph.D.), ne of the most famous thinkers competition were unleashed, a host of W1965, the theory was that college they take it more seriously than if of the 20th century, F.A. Hayek, new higher education options for stu- was known for his observation improved students’ human capi- other people pay for it. dents would emerge, less costly and tal, so making it more affordable Aysegul Sahin, an economist Othat order can come not only from de- more attuned to their needs. would benefit the nation. We’d get with the Federal Reserve, came to liberate actions meant to create it, but George Mason Law School pro- a better-educated, more productive that conclusion in a study on the also from the spontaneous, uncoordi- fessor Todd Zywicki found that the labor force. incentive effects of government nated actions of many individuals. The current government structure of col- Experience, however, teaches subsidies for higher education. latter sort of order is not imposed, but leges and universities has a lot to do us that government programs “Subsidizing tuition,” she wrote, rather emerges. Hayek argued that hu- with their high cost and low quality. never work out as well as expected “increases enrollment rates, how- mans usually find better results in the Zywicki, who served as a Dartmouth and usually have harmful side ef- ever it also considerably reduces latter. trustee for several years, notes that fects. student effort.” That isn’t true only For the last 10 years, the Fund boards of trustees tend to be filled If President Johnson had said, among weaker students, but “even for the Study of Spontaneous Orders, with people who don’t want to “rock “Let’s subsidize students to go to the more highly motivated ones a project of the the boat” and shy college so colleges can respond to lower tuition Atlas Economic away from getting charge more and stu- levels by decreasing their Research Foun- involved with ed- dents can decrease their effort.” dation, has been ucational quality learning effort,” he’d That dovetails with holding colloquia issues. have gotten no support research by economists exploring various Peter Wood, for the legislation. Never- Philip Babcock and Min- aspects of spon- theless, we have achieved dy Marks. They found president of the taneous order. Its both of those undesirable that the average amount National Associa- 2012 colloquium, outcomes. of time college students directed by UNC- tion of Scholars, Regarding cost, in devote to coursework fell Charlotte emeri- saw “the advance 1987 then-Secretary of from 24 hours per week tus professor Jack of the state” as Education William Ben- GEORGE in 1961 to 14 hours in Sommer, focused a reason why nett argued that federal LEEF 2010. They attribute the on higher educa- higher education student aid programs decline to falling stan- tion. It brought today is largely were responsible for ris- dards, but standards have together 22 indi- d y s f u n c t i o n a l . ing tuition. That came to fallen precisely because viduals who have Unfortunately, we be known as the Bennett hypoth- students aren’t as willing to work, teaching experience and deep insights aren’t getting more Americans with esis. Many defenders of the educa- since other people are paying for it. into higher education. augmented “human capital,” but in- tion status quo scoffed at it, while There’s a strong analogy Most of the participants submit- stead many young people who gradu- some economists and education between the housing bubble and ted papers, and the Pope Center now ate with “credentialized resentment” analysts found it persuasive. higher education. Prior to federal has collected final versions of most of and big debts. A new paper by the Center intervention to make home own- them. Readers can access the papers on Another Hayekian theme was the for College Affordability and Pro- ership “more affordable,” people the Pope Center’s website (popecenter. prospect for improved higher educa- ductivity gives the Bennett hypoth- who wanted to buy a house had to org). tion to emerge from competition. esis a fresh look. Author Andrew work and save to accumulate the Gillen writes that the original down payment. Credit was only The theme of “emerging orders” Jeff Sandefer, who founded the hypothesis largely was correct — allocated to those who had demon- is derived from Hayek, so it was fit- innovative Acton MBA program, said ting that the opening presentation was federal aid does enable colleges to strated their creditworthiness. that educational entrepreneurs would charge more. Government intervention by Duke University professor Bruce create radically new approaches to Gillen argues that the nature in housing finance destroyed the Caldwell, whose research has concen- learning. Some of them will involve of competition in higher education old system and its virtues. By trated on Hayek’s work. While Hayek a return to the apprentice-master sys- puts pressure on schools to raise 2005, almost everyone could get a wrote little directly about higher edu- tem. Others will be similar to the merit tuition so they can “keep up with mortgage. That worked out disas- cation, he expressed concern over gov- badges that kids earn in scouting — the Joneses.” That is, they’ll lose trously. ernment control of education gener- proof that the student has acquired a position in the pageant of prestige Similarly, before federal inter- ally and specifically that a “democratic set of skills and can be trusted. and student amenities that means vention in student aid, high school broadening” of college could reduce Andrew Kelly of the American so much when competing for students had strong incentives to learning and impede the discovery of Enterprise Institute also discussed students. Occasionally we hear of excel so that they would have a knowledge. colleges lowering tuition to at- chance at college if they wanted. Free institutions and unre- ways technology would transform higher education. One trend he fo- tract more students, but mostly the And because they paid most of strained competition, Hayek argued, “Chivas Regal” effect holds: Col- the (much lower) cost, they took cused on was the “unbundling” of are essential to the greatest discovery, leges that cost more are regarded college studies seriously if they post-secondary education. Instead of use, and sharing of knowledge. The as being better. enrolled. trouble with government involvement following the traditional path of accu- What about the impact of Now we have far more stu- in higher education, he perceived, is mulating credits from one institution federal student aid on learning? dents going to college, spending that it would lead to rigidity. to satisfy its degree requirements, stu- There is reason to believe that vastly more on it, but many learn Several other papers elaborated dents will increasingly cobble together college subsidies have had a nega- little or nothing. CJ on the problem of government as an credits from different schools, doing tive impact on student effort. Just impediment to the emergence of an most of their work online. College will as individuals tend to take better optimal market for post-secondary become a “do it yourself” job. CJ care of property they have paid for George Leef is director of re- education. David Parento, who works than property they’ve been given, search for the John W. Pope Center for for the innovative StraighterLine — a George Leef is director of research for so with education. When people Higher Education Policy (popecenter. company that offers students online the John W. Pope Center for Higher Educa- pay the cost of some educational org). courses at very low prices — focused tion Policy (popecenter.org). PAGE 18 MAY 2012 | CAROLINA JOURNAL Higher Education Campus Briefs Report: Radical Politics Dominate UC Campuses arming and gardening are By Jay Schalin ciology at UC-Santa Barbara was not The authors also argue that this becoming more popular at Contributor taught the basics of sociology as ex- activity is undermining our country. North Carolina’s colleges RALEIGH pected, but instead received “10 weeks Instead of passing on our national andF universities. Traditionally, report presented to the regents of anti-capitalist, anti-globalist rheto- legacy to the next generation, “radi- gardens and farms have taught of the University of California ric. We were shown several theories on cals tend to denigrate the past to make lessons about hard work, patience, system suggests radical politics globalization that portrayed Western their case for the need to conduct the thrift, and perseverance. No more! increasinglyA dominate UC campuses. civilization as almost demonic, heart- sweeping change” needed for a future Instead of learning about soil, That’s the conclusion of “A Crisis of less, and ruthless beasts that enslave Utopia, say the CAS authors. With re- weeding, and growing zones, stu- Competence: The Corrupting Effect of the world for financial gain.” quired courses in U.S. History increas- dents at modern university farms and gardens learn about social ac- Political Activism in the University of Voter registrations of academ- ingly replaced by optional courses in- tivism. California,” prepared by the Califor- ics show an obvious one-sidedness: tended to instill “alienation, hostility, The Carolina Campus Com- nia Association of Scholars, a branch In University of California humanities and cynicism” toward the American munity Garden at UNC-Chapel of the National department s system, we are developing a “weaken- Hill started as a way to grow veg- Association of in 2004, there ing sense of who we are and how we etables and fruit so that all em- Scholars faculty were 17 regis- came to be.” ployees could have access to fresh organization. tered Demo- Ideology aside, such politiciza- produce — UNC housekeepers Despite a crats for every tion does not appear to encourage su- get free produce from the garden clear legal man- R e p u b l i c a n , perior education. The authors included twice a week. Now, according to date to keep and, in the so- discussion of a study conducted by the the project’s website, the garden partisan activi- cial sciences, federal National Center for Education project has expanded to cover “is- ties out of the the imbalance Statistics that discovered that “only sues pertaining to social justice, public colleges, was 21 to 1. 31 percent of college graduates can be environmental sustainability, and regents, admin- For in- classified as proficient in reading” (de- public policy.” istrators, legis- stance, the fined as “the ability to read a complex Meredith’s community gar- lators, and fac- syllabus of a book and extrapolate from it”) as op- den began in a similar way. The ulty either have political sci- posed to 1992, when 40 percent were garden project began as a way to turned a blind ence course at proficient. meet curricular needs in the nu- eye to the prob- UC-Santa Cruz Furthermore, according to the trition and family and consumer lem or even asked: “How authors, the absence of an objective di- sciences programs, but grew to ad- supported it. did Bush and alogue promotes “shallow, superficial dress sustainability, organics, and “ W h e n Cheney build thinking” and “habits of mind” that the locavore movement. individual faculty members and some- the fiction that al-Qaida was a partici- are “in every respect the exact opposite The Duke Campus Farm is times even whole departments decide pant in the 9/11 attacks?” A UC-Berke- of those we expect a college education another example. Designed to be that their aim is to advance social jus- ley Social Welfare course description to develop.” Another study included a fully functional and educational tice as they understand it rather than to stated the class “incorporates a social in the report, introduced by the book farm, it also “aspires to engage teach the subject that they were hired change and social justice perspective Academically Adrift, found that 45 per- students with food issues, increase to teach with all the analytical skill that … change-focused direct practice, cent of the 2,300 students they tested sustainability at Duke, and influ- they can muster, the quality of teach- community organizing, legislative ac- showed “no statistically significant ence campus culture to reconnect ing and research is compromised,” the tion, and other activities designed to gains in thinking, complex reasoning, students with their food.” authors wrote. give expression to the professor’s so- and writing skills” after their first two Students at N.C. State Uni- The CAS authors uncovered a cial justice commitments.” years of college. CJ versity started the SOUL Com- mountain of evidence verifying the Just because the majority of pro- munity Garden near Lake Raleigh existence of the politicization problem, fessors have not yet turned their class- as part of the Office of Sustain- citing multiple examples of trouble- rooms into indoctrination camps is no Jay Schalin is the director of state ability’s 2010 “Think Outside the some department mission statements, cause for celebration, say the CAS au- policy for the John W. Pope Center for Brick” campaign to make the cam- course descriptions, orientation pro- thors. Higher Education Policy (popecenter.org). pus more sustainable, efficient, grams, invited lecturers, student com- and environmentally responsible. ments, required courses, and reading SOUL stands for “Students for Or- assignments. ganic, United Living.” Since course descriptions and syl- The Elon Community Gar- labi must be “reviewed and approved den was started by students in an by deans, department chairs, and aca- Environmental Ethics class in the demic senate committees,” the open fall of 2006 at Elon University to existence of partisan classes and other foster “education, spirituality, ser- examples show that UC governance vice, community discussion, and is letting politicization occur, the CAS sustainability.” authors say. Other North Carolina uni- The authors of the CAS report versities with community garden cite numerous firsthand accounts by projects dedicated to sustainability students who took classes expecting to include UNC-Wilmington, UNC- study an objective body of knowledge, Asheville, Appalachian State Uni- only to have experiences similar to the versity, UNC-Greensboro, and one described by this UC-Berkeley Wake Forest University. An ECU U.S. History student: “’He [the profes- sustainability student group is sor] focused excessively on negative working on the designs to add a garden to campus soon. Camp- aspects of American history to portray bell University also has a commu- a country of lies and contradictions, while applauding Socialists and Anar- nity garden. CJ chists. … He seemed to be more inter- Jenna Ashley Robinson is out- ested in creating Leftist activists than reach coordinator for the John W. Pope making sure students had an accurate Center for Higher Education Policy grasp of U.S. History.’” (popecenter.org). In another example, a student who signed up for Introduction to So- MAY 2012 | CAROLINA JOURNAL PAGE 19 Higher Education Opinion Political Science Course at N.C. State Displays Leftward Bias ne instructor at North Caro- it with numerous Jefferson, and John jurists’ restrictions on government lina State University has a outside articles re- Adams. She seems involvement in people’s lives are, in rather peculiar approach to flecting a liberal (if Issues to be unaware themselves, examples of intrusion in teachingO his introductory political not radical) view- that only one of people’s lives. science class. Rather than introducing point. in the four (Franklin) Neither author seems to under- students to the thinking that went into The assigned Higher Education actually attended stand that conservatives do not see the Constitution — via The Federalist, readings outside the Constitutional judicial restraint as the same as doing the writings of the anti-federalists, the text come Convention. nothing. When they oppose “judicial contemporary speeches, etc. — he overwhelmingly There were activism,” they mean they want the has chosen reading selections with from left-leaning no alternative courts to enforce the laws and limita- the apparent goal outlets such as The viewpoints in the tions that are actually in the Constitu- of imbuing his Nation, Vanity Fair, and the New York assigned readings to demonstrate the tion (as opposed to creating new ones, students with his Times op-ed page. One right-leaning profound effect religion had on early as in Griswold v. Connecticut). Doing so own ideology. source (the Weekly Standard) made the Americans. may mean striking down laws that are John Strange, list, but the opinion expressed wasn’t Another reading is a long essay inconsistent with the Constitution. a graduate student exactly conservative. (In a 2005 essay, about the Senate published in The New Is that contradictory? From who teaches PS Allison Hayward made the argument Yorker in August 2010. Author George where I sit, no, but it’s debatable. 201: Introduc- However, students in Strange’s class that voting should be mandatory.) I Packer attacks Republicans for block- tion to American are not able to participate in that found only one conservative opinion ing the progressive agenda over much Government and debate. They are not offered any articulated by a conservative, an ar- of the 150-year period following the Politics, has as- argument for judicial restraint from DUKE ticle in which Dinesh D’Souza argued Civil War. Packer calls their obstruc- signed readings someone who actually favors it (or, CHESTON against affirmative action. tionism “an alliance of Southern rac- for his class that it seems, even understands it). This Overwhelmingly, the readings ists and Republican corporate shills.” argue two main is especially troublesome from an edu- themes: 1) conser- blamed Republicans and the Constitu- In more recent times, Packer blames cational point of view because, as John vatives are stupid, and 2) the Consti- tion for the country’s problems. “the Senate’s modern decline” on “the Stuart Mill put it, “He who knows tution sucks. The first article assigned for election of a new wave of anti-govern- only his own side of the case, knows I recently obtained Strange’s Strange’s class is “Our Godless Con- ment conservatives” in 1978. little of that.” class syllabus via a concerned par- stitution” by Brooke Allen. It opens Conservative jurisprudence also With that in mind, schools ent. I asked Strange to comment on with a swipe at George W. Bush’s takes a rhetorical beating in Strange’s should take at least minimal steps the course reading list, but he hasn’t intelligence and character. “It is hard class. For instance, Stuart Taylor’s to ensure fairness, perhaps through responded. The articles mentioned to believe that George Bush has ever essay in the National Journal, “Is Ju- greater departmental oversight — the below are not a complete list but are read the works of George Orwell,” dicial Review Obsolete?” complains course at N.C. State was taught by representative of the nontextbook Allen writes, “but he seems, some- that conservative jurists who argue readings that Strange assigned. The a grad student, after all. Otherwise, how, to have grasped a few Orwellian for judicial restraint are hypocritical. textbook, The New American Democracy the nation will continue to produce precepts.” Although conservatives say they want by Morris Fiorina, et al., had only a graduates who believe their political few examples of leftward slant, such Allen goes on to discuss the judicial restraint, Taylor writes, “they opinions are well-informed when, as referring to anti-gay marriage Constitution, minimizing the influ- have used highly debatable interpre- having never encountered an oppos- initiatives as anti-gay rights initiatives ence of religion in the creation of the tations of original meaning to sweep ing view, they are anything but. CJ and including a brief attack on consti- Constitution by taking a close look at aside a raft of democratically adopted tutional separation of powers. Per- the non-Christian pronouncements of laws.” In a 2006 article for Slate maga- Duke Cheston is a writer/reporter haps believing that this book was too four of our Founding Fathers: Thomas zine, Seth Rosenthal makes a similar for the John W. Pope Center for Higher centrist, Strange has supplemented Paine, Benjamin Franklin, Thomas point. He claims that conservative Education Policy (popecenter.org). PAGE 20 MAY 2012 | CAROLINA JOURNAL Books & the Arts

From the Liberty Library Movie review

• Academics, journalists, and popular historians agree: The chief ‘Hunger Games’ Artistically Excellent, But Disappointing executives celebrated in textbooks and placed in the top echelon of • “The Hunger Games,” directed by Gary Ross, Lionsgate while jerky, hand-held movements conjure the raw realism presidents in surveys of experts are Films, 142 minutes, released April 6. of an indie documentary. the “bold” leaders — the Woodrow Short vignettes, while seemingly unrelated to the topic Wilsons and Franklin Roosevelts By Matthew Henry Young at hand, help drive home the moral. One scene shows cold — who reshaped the United States Contributor assessments of each Tribute’s skills, as analyzed by odds- in line with their grand vision for RALEIGH makers while children pretend to kill each other in the America. f no one watches, then they don’t have a game,” muses background. This makes the point that if the entertainment Unfortunately, along the way, a young man at the beginning of Lionsgate Films’ block- world romanticizes violence, then our children will lose these “great” presidents inevita- buster adaptation of “The Hunger Games,” which paints their moral objections to murder and mayhem, so long as it bly expanded government — and Ia dystopian, distant, depraved future that the author would supports their goals. shrunk our liberties. have us believe may not be so far-fetched. As punishment “The Hunger Games” is excellent in execution of its As the 20th century presidency for an attempted revolution many years before, the tyran- story, and remains mostly faithful to Suzanne Collins’ 2008 has grown far beyond the bounds the nical government of post-apocalyptic nation Panem hosts novel. There were inspiring points and thought-provoking Founders established for the office, the annual Hunger Games, a nationally televised spectacle ones, yet there are notable disappointments. There are in- the idea that our chief executive is pitting 24 teenagers in combat to the death for the entertain- stances when the filmmakers seemingly condoned incredi- responsible to “preserve, protect, ment of the jaded denizens of the Capitol. ble violence and celebrated human suffering by focusing on and defend the Constitution of the When a young girl named Primrose Everdeen is cho- dying and mutilated Tributes. They also place the protago- United States” has become a distant sen by lottery as the female Tribute from District 12, her nist Katniss in situations in which the viewer fully expects, memory. devoted older sister Katniss even encourages, her to take another Now, in his new book, The steps forward and volunteers teenager’s life, supports her threat- Politically Incorrect Guide to the Presi- to take her place in the contest. ened suicide in a Romeo-and-Juliet- dents, historian and celebrated Rea- Katniss, portrayed by Jennifer style plot twist, and judges a killing as gan biographer Steven F. Hayward Lawrence, is joined by bak- “merciful.” reminds us that the Founders had an er’s son Peeta Mellark (Josh We spend the entire film dis- entirely different idea of greatness in Hutcherson) for the trip to the gusted by the cold, cruel way highly the presidential office. More at www. Capitol. In stark contrast to trained “Career” Tributes kill less regnery.com. the impoverished District 12, fortunate combatants. Yet in the final filmed at a long-abandoned moments, viewers are treated to a cli- mill town in western North mactic struggle culminating in Katniss • After 150 years, the Civil War Carolina, the Capitol is a futur- “mercifully” killing a Tribute in pain. still holds a central place in American istic city. Even so, the culture’s All the other murders are portrayed history and self-understanding. It is materialism hearkens to the as barbaric and evil, yet Katniss’ deed our greatest national drama, at once fall of Rome. This comparison somehow does not warrant the same heroic, tragic, and epic — our Iliad, is intentional. As we meet tele- judgment because the victim was “go- but also our Bible, a story of sin and vision host Caesar Flickerman ing to die anyway.” judgment, suffering and despair, and President Seneca Crane, The future that “The Hunger death, and resurrection in a “new the Romanesque allusions in- Games” warns against is less frighten- birth of freedom.” sinuate that technological ad- ing than the future derived from ac- Drawn from letters, diaries, vances do not always prevent cepting its world-view. If killing is jus- speeches, articles, poems, songs, a culture from returning to tified under those terms, how long will military reports, legal opinions, and barbarism. it take before euthanizing elderly citi- memoirs, The Civil War: The First Year The period of train- zens or performing partial-birth abor- Told by Those Who Lived It, edited by ing prior to the games offers tions on “handicapped” babies also is Brooks D. Simpson, brings together many moments of clarity. The justified? How long until the accepted over 120 pieces by more than 60 grossly impersonal attitude of treatment for any terminal illness is a participants to create a unique first- the trainers toward these inno- lethal injection? hand narrative of this great historical cents condemned to a future “The Hunger Games” is an ex- crisis. Learn more at www.loa.org. of kill-or-be-killed warfare — periment in revulsion therapy that falls and the audience’s voracious appetite for pain and suffer- short of its lofty goal. It shows the evil inherent in being ing — are eerily congruent with the manner in which reality entertained by pain and death. When the educational pub- • Everyone in every time and TV shows focus on the heartbroken losers, not the victors. lisher Scholastic Inc. asked Collins about the popular appeal place is interested in sex. Our own Peeta’s confession that he has loved Katniss since he first of reality TV, she said, “Then there’s the voyeuristic thrill — time is obsessed by it. One would saw her creates an uncomfortable love triangle between the watching people being humiliated, or brought to tears, or think that a society obsessed by two Tributes and Gale (Liam Hemsworth), a longtime male suffering physically — which I find very disturbing. There’s sex would understand it very well. friend left behind. A comment made by perpetually drunken also the potential for desensitizing the audience, so that But the truth is that obsession mentor Haymitch Abernathy — “It’s a television show, and when they see real tragedy playing out on, say, the news, it drives out understanding. We no being in love with that boy ... might just save your life” — is doesn’t have the impact it should.” longer understand even the com- disturbing in its similarity to the darkest corners of corpo- Sadly, “The Hunger Games” displays that “voyeuris- mon sense of sexuality, the things rate politics, where virtue often is traded for advancement. tic thrill.” While we are lectured for 142 minutes about the that were common knowledge in However dark it may seem, the film is not without its dangers of violent entertainment, the fact remains: “The supposedly less enlightened times. bright spots. After witnessing firsthand the Capitol’s insa- Hunger Games” is a violent movie. While it makes power- Acclaimed philosopher J. tiable bloodlust, Peeta voices his determination to avoid be- ful points through satire, I question its effectiveness. If our Budziszewski remedies this prob- coming a pawn of the system. “I don’t want them to change nation is headed for a two-week-long celebration of brutal lem. On the Meaning of Sex corrects me, turn me into something I’m not,” he vows. “If I’m gon- murder — as suggested by the filmmakers — do we real- the most prevalent errors about sex, na die, I want to still be me.” Peeta challenges us to make a ly need a Hollywood paean to teenage violence under the particularly the errors of the sexual difference by standing against the perverted entertainments guise of “awareness”? revolution, which by mistaking plea- prominent in our culture. Only time will tell whether films such as “The Hun- sure for a good in itself has caused Director Gary Ross (“Seabiscuit,” “The Tale of Des- ger Games” will convince our society of its erroneous untold pain and suffering. More pereaux”) weaves a captivating tale that is supported by ways, or further desensitize us to atrocities by barraging at www.isi.org. CJ its production values; professional, yet not overly inventive our senses with a hearty helping of innocent blood spilled, camera angles mirror those used in cable television shows, graphic slayings, and the cruel, scorning laugh of killers. CJ MAY 2012 | CAROLINA JOURNAL PAGE 21 Books & the Arts Freedmen’s Bank Allowed Former Slaves Access to Marketplace nce the Civil War ended in that deposits were not lost because of as chief officer. Once assuming the Bern branch as unproductive, many 1865 and for several years risky ventures. helm, Douglass figured out that the North Carolina freedmen deposited after, emancipated slaves Although never part of the bank was sinking in a sea of debt. The considerable sums of money for the Owere encouraged to participate in a Freedmen’s Bureau, the bank served mismanagement of former trustees day. If North Carolina freedmen’s free-labor economy. But the South lay a complementary mission. For that and chief officers had doomed, in the statistics are similar to those across the in ruins. Former slaves had difficulty reason, many freedmen perceived the words of historian Walter L. Flem- South, the average freedman depos- finding work, bank and the bureau to be one and ing, the “most promising plan to aid” ited $50. When the banks closed, the much less start- believed the government backed their the freedmen. After an 1870 charter deposits in New Bern totaled $40,621 amendment allowed loans, top man- ing enterprising deposits. It is not difficult to under- and in Raleigh, $26,703. If regional agement issued a series of question- careers. stand why. Agents from both institu- statistics once again hold true for able loans. The economic depression To encourage tions often cooperated, and bureau North Carolina, freedmen received of 1873 further sealed the bank’s fate. approximately 62 percent of their freedmen to save agents distributed bank literature as On June 28, 1874, all branches closed money, the Freed- they encouraged freedmen to build dividend payments (an average of $31 their doors. per depositor). men’s Savings and capital. Bank pamphlets often con- Branches were in every former The reasons for the bank’s failure Trust Company, tained drawings of Abraham Lincoln, slaveholding state of the Confederacy, have been debated. Some scholars, commonly known American flags, and bald eagles. Some along with West Virginia, Maryland, such as Carl R. Osthaus, argue that the as the Freedmen’s TROY top officials in the bureau, such as and Missouri. In North Carolina, government forgot about the freed- KICKLER John W. Alvord, the national school Freedmen’s Bank branches were lo- Bank, was formed. men and made little effort to relieve cated at New Bern and Raleigh. Bank With the help of superintendent, were top officials in their economic plight. Other histo- trustees quickly established the New Sen. Charles Sumner of Massachu- the bank. rians, including Walter L. Fleming, setts, an act to incorporate the Freed- Even the lifespans of the or- Bern branch, as many freedmen lived in the town’s vicinity. Advocates of contend that government officials and men’s Bank was enacted March 3, ganizations were similar. Both were bankers colluded to profit at the free- 1865. formed legally on March 3, 1865. a Raleigh branch lobbied unsuccess- fully for two years. The persistence of men’s expense. In the beginning, the bank had Although the bank lasted longer than assistant commissioner of the North One point is not debated: Freed- the bureau, both organizations’ effec- a simple purpose: a place to deposit Carolina Freedmen’s Bureau Nelson men wanted to improve their lives and save money and invest safely. The tiveness decreased considerably after A. Miles, however, played an integral and participate in markets during deposited money was to be invested 1870. role in convincing national trustees to Reconstruction. CJ in stocks, bonds, and other similar In hopes of restoring the bank’s establish a Raleigh branch. A branch securities of the United States. No pro- credibility and popularity among in Salisbury was discussed but never Dr. Troy Kickler is director of the vision was provided for loan disburse- African-Americans, trustees elected opened. North Carolina History Project (northcar- ments. Legislators initially ensured former abolitionist Frederick Douglass Although reports listed the New olinahistory.org).

More research at your fingertips at the redesigned JohnLocke Foundation home page You can now search for research by John Locke Foundation policy analysts much easier than before. Our new web page design allows you to search more efficiently by topic, author, issue, and keyword. Pick an issue and give it a try. Or choose one of our policy analysts and browse through all of their research. Ei- ther way, we think you’ll find the information presented helpful and enlight- ening. http://www.johnlocke.org PAGE 22 MAY 2012 | CAROLINA JOURNAL Books & the Arts

Short Takes on Culture DVD review ‘Lorax’ is Pure Propaganda ‘Shadows’ Revival Guilty Pleasure • “Dr. Seuss’ The Lorax” from the other reality began to bleed • “Dark Shadows: The Revival,” cre- nal soap: Rent or buy the DVD collec- Directed by Chris Renaud through, he is left trying to juggle ated by Dan Curtis, MGM DVD, three tion of “Dark Shadows: The Revival,” Universal Pictures two lives, two jobs, and an increasing discs, 592 minutes, originally released a 12-episode NBC series from 1991 that suspicion that everything is not quite 1991, $19.98. was faithful in many ways to the origi- ne of the most on-message as it seems. nal while adding greatly improved films ever brought to the Through the first six episodes, By Rick Henderson production values and a lot more sen- screen for young audiences, it’s safe to say that “Awake” is one Managing Editor suality and horror. The revival is a O“The Lorax” is a masterful piece of of the better psychological dramas RALEIGH great guilty pleasure. anti-business propaganda. Artisti- on TV now. It’s also much easier to efore “Twilight” or “True “Dark Shadows” is set in the cally excellent, it conveys an insidious get into and wrap your head around, Blood,” Lestat or Angel (but not isolated Maine village of Collinwood, message. as opposed to something like “Lost.” before Dracula), there was “Dark where the wealthy Collins family had The film is set in and around Th- For a late night show, it’s also BShadows” and its enigmatic undead lived since Colonial days. An 18th-cen- needville, a completely artificial city remarkably clean, though I don’t protagonist Barnabas Collins. As you tury witch turned Barnabas into a vam- reminiscent of a Fisher-Price playset, recommend it to younger audiences, may know, the iconic daytime soap of pire. He was trapped in his coffin for and we soon discover that the outside as it does deal with police and crime the 1960s will be revived in film this more than two centuries until a klutzy is a devastated wasteland. Ted, the themes. summer by director Tim Burton, with handyman at Collinwood mistakenly 10-year-old hero, in a bid to find a real — SHANE WILLIAMS his favorite collaborator Johnny Depp released Barnabas from the grave. tree for a girl, escapes the city, finds bringing Barnabas back to life, as it Frid’s Barnabas was a sensitive, the hermit Once-ler, and draws from were, on the silver screen. tortured soul who at times appeared him the story. It’s all his fault. • The Autobiography of a Wanderer in The movie’s eager to have his Once-ler was once an inventor England & Burma: The Memoirs of a trailer makes it look humanity (and and entrepreneur, who, desiring to former Mayor of Rangoon as if Burton once mortality) restored. find fiber to knit, cuts down a tree. Edited by Sandra Carney again will produce a His successor in The heavens open and lightning Lulu broad farce, utilizing the 1991 series, Ben crashes all around him with the wrath Depp’s eccentricities Cross (“Chariots of of God — or the Lorax, the guardian Sometimes the best books come (and the director’s Fire”), was much of the forest. from unexpected sources. When San- own outsized imagi- more ruthless. Both, The imagery is no mistake as dra Carney sent me the book contain- nation) for laughs. however, had, er, we later witness his ascension and ing the memoirs of her grandfather, Think of the new long memories and second coming. Even Once-ler’s tent Charles Haswell Campagnac, I had “Dark Shadows” as enjoyed seeking re- is somehow an offense to nature; how no idea what to expect. a comic cinematic venge. much more so his family’s RV when Born in 1886 in Burma, Cam- reboot of a dramatic I never saw they join him in business. This film is pagnac lived to age 84, allowing him TV series — perhaps the original series extremist environmentalism. to witness a multitude of eras. He not unlike, ironi- until it appeared in Nearly every line contributes lived through two world wars and cally, the recent “21 reruns on what was to this brilliantly executed screed the occupation of Burma by Japan in Jump Street” movie, the SciFi Channel. against family, the free market, and World War II. History buffs will love which updated the But I watched the entrepreneurship. Not satisfied with his memoirs because of the wonder- two-decades-old Fox 1991 revival when the usual attack on big business, even ful past of Burma, Campagnac’s life, network show that it aired initially and small family businesses are targeted and his conversations with Gandhi. starred … Johnny Depp. was hooked from the start. The writ- here. Although it’s sure to be a favorite Campagnac’s memoirs begin Any humor in the original “Dark ing (some by creator Curtis) and acting of young children, wise parents will with his childhood in Burma. His Shadows” was unintentional, in part were ideal for a primetime soap, fea- keep their progeny far away from mother died when he was a young resulting from the perils of producing turing an excellent cast — Cross, Jean bilge water like this. child. After his stepmother also died, a low-budget, live-to-film program five Simmons, Roy Thinnes, Joanna Go- — MELANIE YOUNG Campagnac’s father took him and his days a week, with the scenes often done ing, Barbara Steele, and a 10-year-old sister to England, leaving them in in a single take. (The effects were so Joseph-Gordon Levitt. the care of relatives to be educated. cheap that Jonathan Frid, who played The revival debuted quite suc- • “Awake” Campagnac would not see his father Barnabas, occasionally had to turn cessfully in mid-January, with the Created by Kyle Killen again for 13 years. away from the camera and remove his two-hour pilot drawing more than 20 20th Century Fox Television When Campagnac had almost fake fangs to deliver his lines.) Much million viewers. In less than a month, completed his law education, his fa- remaining humor came from the out- however, the first Gulf War began, and Combining elements of “Lost” ther wrote, telling him that he could no landish premise of the program, which NBC pre-empted several episodes to with “CSI,” “Awake” looks to be one longer finance his education because featured not only vampires, but also cover the conflict. The series never re- of the most gripping, cerebral new all of his money would be needed ghosts, werewolves, time and space gained its initial audience — it finished shows on television. for his sister’s medical education in travel, séances, and parallel universes. the season tied for 95th in the ratings Airing on NBC at 10 p.m. on America. In a daytime soap opera, mind you. — and, after airing 12 episodes, NBC Thursdays, “Awake” follows the Favoring a woman’s education The gothic melodrama ran for did not renew it, leaving plenty of plot bifurcated life of detective Michael over a man’s was almost unheard of five years over more than 1,200 epi- lines unresolved. Britten, played by Jason Isaacs (Lucius in the early 20th century, but there is sodes. The Barnabas character was in- Don’t expect Burton’s movie Malfoy in the Harry Potter movies). no bitterness because of his father’s troduced nearly a year into production to tie any loose ends. To his credit, After a terrible car crash with choice. In fact, Campagnac’s need to (episode 210, says Wikipedia) when though, Burton drew up a small role his wife and son, Britten finds his earn a living provides many humor- ABC threatened to cancel the soap for Jonathan Frid, who was able to film life separated into two realties. In ous memories. and creator Dan Curtis decided to take the part before, sadly, he passed away one, his son survived the accident. Campagnac does become a bar- more chances with the story lines. in late April at age 87. In the other, his wife did. The catch rister and returns to Burma, where “Dark Shadows” developed a I expect plenty of high camp from is that whenever he goes to sleep in he eventually becomes the mayor cult following and a fan base that ap- the “Dark Shadows” movie, all of it Autobiography of a one reality, he wakes up in the other, of Rangoon. The pears quite unhappy with the liberties intentional. But as with so many Hol- and both seem perfectly real to him. Wanderer in England & Burma are the Burton will take with the franchise. If lywood projects these days, the idea At first, he is content to live memoirs of a truly unusual man. you’d like to see what the fuss is all behind the film is not original. You in both realities, but when aspects — MELISSA MITCHELL CJ about, don’t sift through hundreds of might find the inspiration for Burton’s hours of grainy footage from the origi- movie an unexpected joy. CJ MAY 2012 | CAROLINA JOURNAL PAGE 23 Books & the Arts Book review Shaxson’s Tome Against Offshore Banking Revealing But Naïve • Nicholas Shaxson, Treasure Islands: extent they surely are), then as soon to obtain the largest possible amount Why not set the business tax to Uncovering the Damage of Offshore Bank- as one company figures out how to of feathers with the smallest possible zero? This would completely wipe out ing and Tax Havens, New York: Palgrave reduce its costs through offshoring, amount of hissing.” the incentive for offshoring, reduce Macmillan, 272 pages, 2011, $27. the others must follow suit or die. In This principle says you should the unfair competitive tax advantage any case, what’s so bad about (legally) tax as many different things as mildly big, multinational — hence offshor- By John Staddon minimizing one’s taxes? Should these as possible so as to get the fewest coming — companies have over intrana- Contributor companies be expected to impover- plaints. So why not add corporate prof- tional, small companies, and simplify DURHAM ish their shareholders (not to mention its to the mix? Unfortunately, because, the tax system quite a bit. (Recall that icholas Shaxson is a well- their officers, who are always the real in the United States, corporations (but Mitt Romney’s 2009 tax returns, which traveled British investigative winners) voluntarily by in effect do- not individuals) are not liable for profits he made public earlier this year, were writer who specializes in in- nating money to the IRS? kept abroad, they have every induce- 500 pages long, including stuff on his Nternational business. Treasure Islands is My other beef is that ment to juggle things so accounts in the Cayman Islands. Rich an investigation of the many ways that Shaxson never seems to that much of their wealth as he is, that still strikes me as absurd.) criminals and multinationals contrive question the legitimacy is kept out of the U.S. Well The shortfall in total tax revenue caused by abolishing corporate taxes to evade taxes by setting up “special of taxation. To him, all done, Washington! purpose vehicles” and other kinds of On the other hand, (assuming, as some do, that reduced tax avoidance, legal or tax revenues are a bad thing!) could shell entities in lenient tax jurisdictions offshoring clearly is a not, is wrong. Yet almost be made up by increasing individual like Switzerland, the Cayman Islands, problem if only because it everyone agrees that the income taxes, which can’t be sheltered and — so Shaxson claims — even the present U.S. tax structure wastes resources, makes offshore legally and involve no new financial centers of the United States is indefensible, though the accounts of busi- collection bureaucracy. The rates pre- (Wall Street) and the United Kingdom there is little agreement nesses harder to figure sumably would be adjusted to be rev- (the City of London). The book exem- on what exactly should out (think of ENRON and enue-neutral. plifies views of bien pensants Europe- replace it. The feedbacks WorldCom as examples) But of course much hissing would ans. Taxes are good, and government in our democratic system and surely impairs over- ensue! The populace probably would is always beneficent. clearly drive it in the di- all efficiency. Shaxson not accept the substantial increase in I read Treasure Islands with in- rection of ever-increasing writes: “The Big Four ac- individual taxes that would be neces- terest but some puzzlement. Shaxson taxation. counting firms —Price- sary to offset the loss of corporate taxes, does indeed provide a fascinating de- High taxes are bad for many waterhouseCoopers (PWC), Ernst & even though they are already paying scription of the grotesquely compli- reasons. But the main one is that the Young, KPMG, and Deloitte Touche the corporate taxes indirectly anyway: cated network of locations and dodges money taken from citizens is to a large — are giants: PWC employed over They are passed on by companies in the price of goods and services. (I’m that makes up the offshore network. extent returned to them — with condi- 146,000 people and generated $28 bil- betting that relatively little comes out But I’m puzzled because he seems ex- tions. High taxes thus go along with lion in revenues in 2008, making it the traordinarily naïve about the nature world’s largest professional services of the compensation of their employ- high dependence of the citizens on the ees.) And the increased efficiency of of competitive commerce. He clearly state. firm.” This is ridiculous in the modern thinks that when multinationals take era when computers should be used the whole economy caused by tax sim- As a practical matter, taxing plification surely would increase total steps to minimize taxes by putting to speed up and make traditional ac- companies, as opposed to individu- wealth. So the problem is basically po- assets offshore, mispricing intra-com- als, obviously doesn’t work very well: counting less, not more, people-inten- litical rather than economic. pany transactions and the like — that “corporations paid about two-fifths sive. Obviously, what’s going on is the On one point that Shaxson these guys are morally defective: “Ir- of all U.S. income taxes in the 1950s; opposite: technology in the service of makes, all should agree: “The latest cri- responsible players treat tax as a cost that share has fallen to a fifth,” Shax- increased financial complexity. sis has made clear that much financial to be minimized, to boost short-term son writes. So why do we tax them at What is the solution? We might services activity is actually harmful. So shareholder value alone. …” all? The answer, of course, is the Col- start by asking: Why tax businesses at if certain parts of the financial indus- Er, yes. But morality is irrelevant bert principle — not Stephen, but Jean- all? The taxes are hard to figure out, try leave town — so much the better.” if survival is at stake. If these compa- Baptiste (1619–83): “The art of taxation hard to collect, and costly and confus- That view will get few cheers from nies are competing (which to some consists in so plucking the goose as ing to avoid. Wall Street, but it’s probably correct. CJ Books authored By JLF staFFers Free Choice for Workers: Selling the Dream A History of the Right to Work Movement Why Advertising is Good Business

By John Hood President of the John Locke Foundation By George C. Leef Vice President for Research at the John William Pope Center for Higher “[Selling the Dream] provides a Education Policy fascinating look into the world of advertising and beyond ... “He writes like a buccaneer... Highly recommended.” recording episodes of bravery, Choice treachery, commitment and April 2006 vacillation.” Robert Huberty www.praeger.com (Call Jameson Books, 1-800-426-1357, to order) Capital Research Center PAGE 24 MAY 2012 | CAROLINA JOURNAL Opinion

COMMENTARY Plastic Bags And Other Evils he first time I heard about all of this that concern me. Is it recycling, I was in about the really worse to throw away a juice fifth grade, and there was box than to buy a large bottle of oneT kid in my class whose family juice (a plastic bottle that will have sorted their trash. My teacher asked to be thrown away itself) and fill a her how it worked and why they reusable bottle that will go through did it. I remember thinking that it the dishwasher, using water and en- sounded onerous and slightly gross. ergy and soap? I don’t know. What However, at that time, you could about hygiene? Plastic packaging get paid for your recyclables, so it does help keep food clean. Surely wasn’t long before my mother had a real education would teach kids me crushing cans at her office and to think about trade-offs and the toting them down to the recycling complicated nature of these issues center with her. We started sorting rather than just feeding them a sim- trash at home, just like plistic, “create no trash” everyone else. message. EDITORIAL Well, everyone But there are far except my grandparents. more fundamental issues They continued to throw that I find even more wor- Drilling Through all their trash away in a rying. single trash can that got First, I’m concerned taken to the landfill once about a school system that The Dental Debate a week. I was appalled, attempts to make kids into and I laid into them about environmental zealots the vital importance of critical of their parents. orth Carolina ranks 47th payroll and billing. The dentist and JULIE nationally in the number of the staff take care of patients. recycling. To this day, my GILSTRAP The kids with whom I was grandmother still recycles. eating lunch last week dentists per capita, and a bill An example of this, cited in a beforeN this year’s short session of the report by WRAL.com, is Kinston- The environmental have good, responsible General Assembly could make matters based Affordable Care, which runs movement has moved forward by parents. They pack healthy lunches worse. 182 Affordable Dentures offices in 38 leaps and bounds, but one thing re- and make sure their kids get to bed Senate Bill 655 would set into states. A dentist owns each Affordable mains the same. Schools still spend on time. They are also busy, so for law restrictive regulations controlling Dentures location, but as Affordable lots of time indoctrinating kids on all sorts of reasons, fruit cups and the financing and operation of dental Care CEO Doug Brown told WRAL. environmental issues, and they still juice boxes make sense for these practices, while adding others. The com, “We do the accounting, the mar- send kids home families. I don’t backers of the bill include the North keting, manage their payroll, provide to win over like that these Carolina Dental Society and some cur- the capital. We do the things [dentists] their parents. kids are being rent practitioners who say “corporate don’t want to do.” I saw this The kids were fed the notion dentistry” (whatever that is) will drive Many established dentists and happen recently that they know small practices out of business. The the state’s dental board don’t like this. when I ate going to go better than the bill passed the Senate last year and They claim the DSOs can place inves- lunch at school adults in their could go before the House in May. tors’ profits over the quality of care. Opponents say the bill would with my favor- home and lives. They also say dentists become de facto unravel existing dental practices oper- ite third-grader. The other employees of the DSOs, which they ated by “dental service organizations” As we ate our reprimand major problem say can push dentists to give better — businesses that resemble managed- lunches, she their parents I see is that the care medical companies — and make treatment to patients with insurance told me about school seems it even tougher for patients to find coverage or force them to work longer the Earth Day to teach kids dentists. hours than they would if they “really” picnic planned about the evils The opponents of S.B. 655 have owned their practices. for the following day. The kids had of sandwich bags very effectively, the better argument. Bills like S.B. 655 The dental board and other been encouraged to pack lunches while demonstrating considerably limit competition, protect incumbent regulatory agencies should prevent such that they would throw nothing less success with multiplication practitioners, and harm consumers, such shenanigans, and DSO officials away. Being particularly astute, the tables. It seems that fundamentals who care more about being able to see who spoke to WRAL.com called those kids already could see difficulties. are being ignored so that schools a dentist they trust than they do about charges hogwash. We examined the table in front can advance a political agenda. The who sends the bills to their insurance Meantime, Alliance for Access of us and found all kinds of great fact that my 9-year-old buddy has company. to Dental Care, a group opposing the sins. We had paper bags, paper to count on her fingers to figure out A recent dental school graduate measure, has found 31 provisions napkins, and plastic forks. There 6x5 is a problem, and it’s one the may need more than a license from the of S.B. 655 that would make regulations controlling dental management were several plastic sandwich bags. school should be addressing. My state’s Board of Dental Examiners to groups more restrictive in North I’m pretty sure I remember seeing a taxes pay her teachers to educate practice in North Carolina. Unless the Carolina than they are in neighboring juice box. There was environmental her in math and reading and histo- graduate goes to work for an existing dentist, opening an independent states. carnage everywhere. ry. They should do a better job with practice can require roughly $500,000 In fact, Affordable Care’s Brown The kids were convinced this those things, and leave plastic bags in cash (or credit) to secure a location said his company might stop doing was a problem. They were going and other decisions about lifestyle and the necessary equipment. business in the state if S.B. 655 or to go home and reprimand their to parents. CJ That’s where DSOs step in. something like it became law. parents, insisting that they pack These companies enter into a busi- State officials should remove bar- lunches in more environmentally Julie Gilstrap is research publica- ness partnership with a dentist; the riers preventing entrepreneurs from friendly ways. tions coordinator for the John Locke DSO might purchase equipment, lease providing services to consumers. By There are lots of things about Foundation. office space, arrange advertising, and all accounts, S.B. 655 would erect un- provide back-office services such a necessary new ones CJ MAY 2012 | CAROLINA JOURNAL PAGE 25 Opinion

EDITORIALS COMMENTARY Quit Making It Worse North Carolina’s Total government debt keeps growing

he next time you hear a North ment liabilities. Consider the state’s Climate Improves Carolina politician talk about promise to provide health benefits for rogressives make a point that of medical practices has just an- the “need” to use tax dollars or retired public employees, a promise conservatives ought to take to nounced a 7.4 percent reduction in Tpublic debt to build a new ballpark, for which legislators have set aside no heart: Taxes are far from the premiums for 2012, attributing part convention center, rail line, or similar assets. According to a 2010 estimate, onlyP factors that households and of the rate drop to the malpractice luxury, ask this simple question: How this one unfunded liability exceeded businesses take into consideration reforms. More generally, it is likely much more do you think we can af- $33 billion. when deciding where to live, work, that these changes will reduce legal, ford? There are other liabilities. Most invest, shop, or create new busi- insurance, and medical expenses North Carolina used to be analysts now rate North Carolina’s nesses. in North Carolina, improving our known for its cautious approach to pension fund for teachers and public In other words, you can’t climate for business starts and government debt, but in recent years employees as underfunded, although explain the performance of any expansions. the situation has changed. In 2012 they differ widely about the extent of economy simply on the basis of the • Workers’ compensation. the cost of servicing state debt will be the problem. While the official esti- prevailing tax rate. Some Premiums for insuring nearly $900 million — an amount larg- mate is only a few billion dollars, two states and nations with employees against injury er than the annual budgets of many of other studies using lower projections above-average taxes have can be a major driver of the state’s best-known agencies and of future investment returns pegged above-average growth labor costs, particularly departments. Add the rising obliga- the unfunded liability at $12 billion rates. Some states and na- in industries with higher- and a staggering $58 billion. tions of many cities and counties, and tions with below-average than-average accident Nor is the problem limited to fi- you find that North Carolina’s total taxes have below-average rates such as construction nancial liabilities. About 30 percent of government debt exceeds $53 billion. growth rates. and distribution. Last year North Carolina’s bridges are structur- Furthermore, an increasing share However, progres- Rep. Dale Folwell, a For- ally deficient or functionally obsolete. of it never was approved by voter ref- sives need to take some- syth County Republican, More than a quarter of our major thing to heart, as well: was the primary sponsor erendum. Policymakers have evaded roads are in poor or mediocre condi- the state constitution’s referendum Raising the cost of doing JOHN of a bill that strengthened tion. The liability for deferred mainte- business rarely results in HOOD relationships between requirement by issuing certificates of nance in North Carolina’s transporta- participation and other “special obli- more business being done. employers and medical tion assets alone exceeds $1 billion. Tax rates, energy prices, providers, adjusted ben- gations” that technically do not pledge At the very least, North Carolina transportation costs, commodity efit formulas, and increased pro- government’s full faith and credit, but policymakers need to stop making the prices, labor costs — these all can tection against fraudulent claims, in practice offer an implicit promise problem worse by issuing new debt be critical factors in deciding where among other provisions. It passed to tap general revenues. Special-obli- for low priorities, such as entertain- and how specific firms operate, -de both chambers overwhelmingly and gation debt now far exceeds general- ment and passenger rail, while failing pending on what they produce and was signed into law by Gov. Beverly obligation debt on North Carolina’s to devote sufficient attention to fulfill- for which markets. Perdue last summer. During the balance sheet. ing the promises and maintaining the Many on the Left dismiss busi- subsequent six months, workers’ Unfortunately, even this official critical public assets already on the ness cost as an outdated concern. comp claims were down 9 percent balance sheet understates govern- government’s books. CJ What matters now, they say, isn’t versus the same period in 2010, the cost of doing business in a although it would be premature to community but the availability of attribute all of that to the new law. amenities such as arts and enter- Still, it is likely that workers’ comp Truth Lost Its Temper tainment, restaurants, recreational premiums, and thus the cost of hir- facilities, and educational institu- ing new workers, will decline as a The Left is relying on fear and exaggeration tions. result. Sure, these factors can be • Regulatory reform. After important, again depending on lawmakers introduced several bills f Gov. Bev Perdue and liberal activ- Just to put these numbers in perspec- specific cases. But as a whole, you to alleviate North Carolina’s regula- ists want to know why their Edu- tive, North Carolina employed some scare campaign against the Repub- 180,000 people in public schools alone will predict economic performance tory burden, the General Assembly Ilican-led General Assembly hasn’t in 2010-11, including about 95,000 more successfuly with business-cost ended up with a compromise, the worked, they need only to consider teachers, and tens of thousands more measures than with quality-of-life Regulatory Reform Act, that Perdue the insight of essayist Khalil Gibran, in other state departments. measures. That’s largely because vetoed on spurious constitutional who once wrote that “an exaggeration These facts were unlikely to higher-cost places aren’t necessar- grounds. A bipartisan coalition is a truth that has lost its temper.” move average voters. So the Left col- ily higher-value places. They don’t overrode her veto in both cham- Yes, because Republican law- lectively lost its temper. Truth became get enough bang to justify the extra bers, creating a new process that makers decided last year to balance exaggeration, and exaggeration be- buck. promises to limit future rule making North Carolina’s budget without a tax came embarrassment. Aside from fiscal policy, state to high-priority threats to public increase, their budget spent less mon- The Left’s latest claim is that the government affects the cost of do- health and safety while junking ey than Perdue had proposed. And Republican budget constituted the ing business in many ways. The outdated regulations that bring far this lower spending level brought largest decrease in education funding new leaders of the North Carolina more costs than benefits. with it a lower number of government in North Carolina history. Again, this General Assembly understand this, These initiatives will make jobs. undeniable truth — total per-pupil which is why they addressed sev- North Carolina more competitive. But the differences between the spending did go down — was exag- eral pressing issues during the 2011 Progressives either don’t under- two budgets — both in spending lev- gerated into an untruth. legislative session, including: stand or don’t like them. Conserva- els and government positions — were Due to the recession, North • Tort reform. The legislature tives ought to be talking about them modest. The GOP budget spent about Carolina’s real per-pupil spending enacted two bills to reduce the a lot more — and planning to build 2 percent less than the governor’s dropped about 3 percent in 2009-10. cost of frivolous litigation in North on them in future sessions. CJ General Fund budget, and about 1 It dropped about 2 percent in 2010-11. Carolina, including a rewrite of the percent less on education. Democrats were in charge then. And state’s medical-malpractice laws. John Hood is president of the John As for positions, the difference is what was the drop in real per-pupil The state’s second-largest insurer Locke Foundation. only a few thousand overall, includ- spending in 2011-12, under the GOP ing a few hundred teaching positions. budget? Just over 1 percent. CJ PAGE 26 MAY 2012 | CAROLINA JOURNAL Opinion EDITORIAL BRIEFS Privatizing USPS

he U.S. Postal Service is expected to lose $14 billion for the fiscal year ending Sept. 30. The USPS has come up with a plan Tto overhaul its operations, but portions require congressional approval, which is unlikely in an election year. A better option would be to priva- tize the post office, says Adam Summers of the Reason Foundation. First-class mail volume has dropped by one-quarter since 2006 and even greater reduc- tions are expected in the future. To make up for this, the USPS has proposed closing 3,800 post offices and 223 mail-processing centers. Saturday delivery also would be eliminated, and mail delivery would be slowed. First-class postage rates would increase from 45 cents to 50 cents while the USPS recruits more junk mail clients. Whether Congress will accept all of these proposed reforms remains to be seen. Summers argues that delivering information and products is not a core government function, and the USPS suffers from an obsolete Economics and Elections business model and unsustainable personnel he presidential election is still months away, for re-election is a plus for that person in receiving costs. but this hasn’t prevented people from trying another term. “The truth is, however, that because the to predict the outcome. Someone who has But second, people may become tired of the Postal Service has a monopoly on delivering Ttried to use economics to predict elections is profes- same party holding the presidency. Fair’s work mail, there is no way to know whether a five- sor Ray Fair of Yale University, and his updated found that the number of terms the incumbent party days-per-week or six-days-per-week delivery book on this work, simply titled Predicting Presiden- has held the presidential office was related to lower schedule is ideal, or even how much should be tial Elections, just hit the bookstands. chances of that party continuing in office. charged to deliver a letter,” says Summers. Fair doesn’t claim that only economics matters So how good has Ray Fair’s model of predict- “Matters such as prices, service speed, in how we vote. But he does argue that economics is ing presidential elections been? Very, very good! frequency of delivery, and additional mail very, very important, and he has put his “model” of In the 24 elections from 1916 to 2008, his model products and services should be determined presidential elections to the test predicted 21 of the contests correctly and predicted by competition and consumer preferences, not for almost a century of contests. three incorrectly. The three bad calls were 1960, arbitrarily by politicians and postal regulators.” Fair thinks there are two when John Kennedy defeated Richard Nixon; 1992, economic “biggies” when when Bill Clinton beat George H.W. Bush; and 2000, Hospital quality incentives we pull the election lever (or when George W. Bush won over Al Gore. connect the lines on North However, it can be argued that all three of A key element of federal Medicare reform Carolina’s ballot): growth and those elections had special circumstances. In 1960, efforts — paying hospitals more based on the inflation. the margin between Kennedy and Nixon was razor quality of care patients receive — has proved For growth he uses two thin. A strong third-party challenge by Ross Perot unsuccessful in practice, reports Kaiser Health specific measures: how much made the 1992 election difficult to predict. And in News. the economy has grown, on a MICHAEL 2000 Al Gore won the popular vote, but George W. From 2003 to 2009, 252 hospitals partici- per-person basis, in the first nine WALDEN Bush prevailed in electoral votes. pated in the Medicare Premier Hospital Qual- months of the election year, and So what can the Fair presidential election pre- ity Incentive Demonstration project. Hospitals in how many of the 15 quarters dictor tell us about the 2012 outcome? Incumbency were graded on 36 performance measures. (three-month periods) of the presidential term up to gives President Obama an advantage, as does the These included mortality rates for heart attacks the election has the national economic growth rate fact his party has held the presidency for only one and heart bypass surgery. Hospitals that did per person exceeded 3.2 percent. term. the best got extra money while those with the Fair found these two growth measures to be So far, the president also holds an advantage worst outcomes had funding reduced. the most predictive and reliable among many he on inflation, with the average rate for his first three A study published in the New England tested. Yet some may question why job market data, years being a modest 1.5 percent. But recently the Journal of Medicine found that mortality rates at like the unemployment rate or speed of job growth, rate has been ticking higher, and if gas prices con- HQUID hospitals differed little from mortal- weren’t included. Again, Fair found the two broader tinue to soar, by election day people may perceive ity rates at the 3,363 hospitals nationwide that economic growth measures to be better at forecast- inflation to be much higher — and this would favor weren’t part of HQUID. ing. Also, job growth and broader economic growth the challenger. “Pay for performance is really important,” are related highly. The real wild card is economic growth. Aver- said Ashish Jha, a professor at the Harvard For inflation, Fair reasoned that most people age economic growth per person for the first three School of Public Health and lead author of the like price stability. We don’t like prices rising rap- years of the president’s term has been very slow, study. “This says to me that we haven’t figured idly, but we also don’t like them falling fast because as a result of the deep recession and slow recovery. out the pay part, or the performance part.” price drops usually are related to lower pay. So But growth appears to be picking up in 2012, and if Jha warned against holding hospitals ac- Fair used the average rate of price change (without it accelerates voters could enter the election booth countable for too many performance measures. distinguishing between price rises or price drops) with more optimism about their economic future. “And if you give them 18 different metrics for the 15 quarters of the presidential term up to the So, at this point, Fair’s model is pointing to and some are easy but not that important, and election. a close election, which seems right in line with the some are hard but important, people are going Professor Fair also included a couple of non- calls of many pundits! CJ to naturally gravitate toward what’s easy, and economic factors related to the person and party you’re not going to have meaningful impact,” holding the presidency. First, a sitting president has he said. CJ an enormous amount of power, and Fair’s statistical Michael Walden is a Reynolds Distinguished Pro- analysis found that an incumbent president running fessor at North Carolina State University. MAY 2012 | CAROLINA JOURNAL PAGE 27 Opinion Romney’s Challenge ow that Mitt Romney effec- Republican nominee in modern his- primary, only 22 percent of voters servative wing. Like any challenger tively has secured his party’s tory. said Romney was the candidate who would, he will spend more time talk- presidential nomination, Economic conservatives wor- “best understands average Ameri- ing about his opponent than himself. NRepublicans are starting to focus on ried he would replicate the policies he cans’ problems.” Given how numer- So will Obama. The president has the general election and the task of implemented as governor of Mas- ous religious conservatives are in the pivoted from a “Romney-as-flip-flop- unseating Barack Obama. This won’t sachusetts, particularly the health GOP “base” — between one-third and per” to “Romney-as-extremist” mes- be easy, but given the poor economy care law that has been compared one-half by most accounts — Romney sage. What is more, issues that will and the president’s low approval to ObamaCare. Social and religious cannot afford them to be unenthused. be foremost in the campaign, like the ratings, Romney conservatives were concerned about If they stay home in November, criti- state of the general economy and the must have a realis- Romney’s tendency to shift positions. cal swing states with large numbers of country’s fiscal health, fit nicely with tic chance. Their skepticism of the presump- Christian conservatives — like North One impor- tive nominee is much deeper. Some Carolina, Ohio, and Florida — might Romney’s resume. His management tant question mark evangelical Christian leaders, critical go to Obama. style and focus on American strength hanging over the of Mormonism, have suggested their But there are also signs Romney tend to transcend ideology. Romney campaign followers will be reluctant to vote for could pull conservatives together. Early polling tends to show is the candidate’s him. A Langer Research Study reveals A major theme of GOP primary exit Romney is down in many key states. capacity to ener- that through the end of March, Rom- polls has been Republicans’ deep He needs to win about half of the gize conservatives. ney had won the votes of 49 percent desire to defeat the president this fall. electoral votes from roughly 18 battle- One thing we of the primary participants who did By a ratio of 9-to-1, they disapprove of grounds, and currently he is behind in learned from the ANDY not consider themselves evangelical, Obama’s job performance. Repeatedly, important contests like Ohio, Michi- primaries was that TAYLOR but only 30 percent of those who did. these surveys have shown the most gan, and Pennsylvania and at best Romney is not a Polls repeatedly demonstrated that important quality in a nominee should only tied in Florida, North Carolina, particular favorite Romney won a greater share of the be that he “can defeat Obama,” not and Virginia. Romney’s unfavorables of those on the right-hand side of his vote of economic and fiscal conserva- that he be a “true conservative,” dem- are also a little elevated for a challeng- party’s median member. Over the tives than he did those who consider onstrate a “strong moral character,” or er at this point in a campaign; they past nine months, conservatives have themselves “values voters.” have the “right experience.” Around approach 50 percent in some polls. sought desperately for a standard- The doubt surely remains. Social one-third to one-half of respondents But victory is not out of his reach. The bearer and alternative to Romney, and religious conservatives tend to be picked this as the most important at- time before the Republican conven- rotating from Michele Bachmann, to less affluent and from smaller towns tribute. Although he has a long way to tion late this summer in Tampa will be Herman Cain, to Rick Perry, to Newt and more rural areas than Republicans go, Romney has begun to collect full- crucial. He must get conservatives on Gingrich before finally lining up be- who consider themselves primarily throated endorsements from promi- hind Rick Santorum. In national polls, economic conservatives. They distrust nent conservatives in Washington and board before he goes wooing indepen- Romney’s support among partisans Romney’s background in finance groups like the American Conserva- dents this fall. CJ never exceeded 40 percent. During the and the fact that he was elected to tive Union, the National Right to Life competitive primaries of this cam- statewide office in a place like Mas- Committee, and numerous Tea Party Andy Taylor is a professor of paign — that is those prior to Santo- sachusetts. They detect an authenticity chapters. political science at the School of Public rum’s exit — Romney won a smaller gap and an inability to connect with Romney’s campaign strategy and International Affairs at N.C. State proportion of the vote than any other their lives and values. In the Ohio will help galvanize the party’s con- University. Short Session Will Emphasize ‘Short’ he General Assembly recon- Some state parks and attractions the legislature, filed a lawsuit, and needs protection against corporations’ venes May 16 for the 2011-12 may be closed during off-peak hours got a Superior Court decision saying interests in maximizing profits and to short session. Traditionally, the to save money. Any cuts Gov. Bev a petition of property owners was not protect patients’ interests. Tshort session is used to make adjust- Perdue includes in her budget will be allowed. In the short session, expect Education will focus on kids ments to the two-year budget passed considered; her tax increase proposals pending annexations to be declared and classrooms with less attention to during the long session and address will not. Overall, government will get invalid, and the petition process the demands of the teachers’ union. any pressing or unfinished business. smaller. changed to a simple majority election, Issues on the table include providing With runoff elections in July and Bills the governor vetoed that giving property owners a voice in an- tax credits for companies that under- majority control at stake in legislative have not been overridden remain eli- nexation. write scholarships for K-12 students, races, lawmakers gible for an override. They include the North Carolina’s ban on natural eliminating tenure for teachers, and will get in and out Energy Jobs Act, repealing the Racial gas exploration may be lifted, but stopping social promotions for kids of Raleigh with- Justice Act, and requiring voters to in its place lawmakers may impose who aren’t ready for the next grade. out stirring up any provide photo ID at the polls. a moratorium to continue studying With nine new charter schools controversial is- Two hundred eighty-five bills of whether North Carolina is ready opening in August, 61 new applica- sues and back on passed one body and crossed over for hydraulic fracturing. A recent tions for the following year, and the campaign trail to the other to remain eligible for study by the Department of Environ- record numbers of families applying ment and Natural Resources and the as quickly as pos- consideration during the short ses- for the few openings that are avail- Department of Commerce indicated sible. sion. They include setting up a health able, look for more talk about the fracking could be done safely and The leader- exchange to administer ObamaCare value of school choice and less on the with positive economic impact. Jobs, ship has said it (if it survives U.S. Supreme Court re- energy independence, and economic (unfounded) argument that choice will be a very short BECKI view), establishing nutrition standards destroys pubic education. GRAY recovery seem to be good reasons to short session, ad- for foods sold at schools, increasing proceed. Heavy lifting on issues like tax journing between accountability for publicly funded A dental management bill that reform, natural gas exploration, unem- mid-June and July 4. That leaves fewer nonprofits, shortening the early vot- passed the Senate may get some ployment insurance debt repayment, than 30 legislative days to tend to the ing period, restoring partisan labels consideration from the House. It state government restructuring, the people’s business. in judicial elections, and analyzing would place additional restrictions on sale of public assets, and additional There will be budget adjust- and assessing economic develop- contracts between dentists and dental regulatory reform will wait until 2013. ments. There will be no tax increases. ment subsidies (i.e., crony capitalism management organizations. Oppo- The short session should be noncon- The economy is still struggling, and programs). nents claim the bill is an overreach troversial and, well, short. CJ money will continue to be tight. Any In 2011, forced annexation laws and would impose so many regula- extra dollars may allow state employ- were amended to give citizens a voice tions few management companies ees to get a small raise and lawmakers through a petition process. Several would be interested in coming here. Becki Gray is vice president for out- to set aside more money in reserve. cities circumvented the authority of Proponents claim the dental industry reach at the John Locke Foundation. PAGE 28 MAY 2012 | CAROLINA JOURNAL Parting Shot State Puts Tourism Hopes On ‘Blazing Saddles’ Sequel (a CJ Parody) By Howard Johnson ment, like in ‘Hunger Games,’” he said. Tourism Correspondent “Hunger Games” depicts a future RALEIGH scenario in which the central govern- tate officials acknowledge that ment selects teenagers to participate in their projections for significant an annual competition in which they tourism generated by the “Hun- kill each other until only one is stand- Sger Games” movie have not material- ing. The games are broadcast on live ized. The problem is that there really television, letting everyone view the isn’t much to see at the locations where action. the movie was filmed. Released in March, the movie is “We hope to do better with the turning out to be a huge commercial next project,” Commerce Secretary and artistic success. The N.C. Com- Keith Crisco told Carolina Journal. He merce Department predicted that said state officials are trying to - per “Hunger Games” fans would flock suade a Hollywood producer to film a to various North Carolina locations sequel to the 1974 movie “Blazing Sad- North Carolina’s tourism officials say the Tweetsie Railroad complex in Blowing Rock where the movie was filmed, and de- dles” at the Tweetsie Railroad theme offers a perfect Old West backdrop for a sequel to “Blazing Saddles,” and would give veloped a four-day itinerary for “Hun- park near Blowing Rock. tourists an actual recognizable place to visit after seeing the movie. (Map courtesy ger Games”-related tourism. “As we envision it, most of the of Tweetsie Railroad) Instead, the privately owned Tweetsie Railroad infrastructure will town,” Crisco said. “It’s a natural fit. officials to screen the original. village where some scenes were shot be intact after the movie filming, and And, this being a right-to-work state, One of the original’s most memo- plays only a tiny role in the film and is what is blown up for the movie will be they wouldn’t have to join the Screen rable and outrageous scenes is a group marked with “No Trespassing” signs. rebuilt,” Crisco said. “Unlike ‘Hunger Actors Guild.” of cowboys sitting around a campfire The lake setting is not accessible to the Games,’ there will be much more to see The original “Blazing Saddles” is consuming large quantities of beans, public. The Dupont State Recreational and connect with after the movie de- a wildly satirical Western film directed followed by 35 seconds of extreme Forest, featured in many scenes, is ac- buts.” by Mel Brooks and starring Cleavon group flatulence. cessible, but it lacks distinguishing fea- In addition, Tweetsie Railroad al- Little and Gene Wilder. It centers on Some state officials see a reprise tures that might attract tourists. ready has a cadre of gunslingers who a black sheriff who is hired to save an of this scene as absolutely necessary in Crisco said another movie perform daily for passengers on the all-white town from being destroyed the sequel, but Gov. Bev Perdue isn’t project that should generate a lot of famous railroad that runs around the by the construction of a new railroad. convinced it should be included. tourism is “Plain Crazy: The True property. Crisco said Perdue has taken a “Bev has some issues with hav- Story of the Randy Parton Theatre.” “These guys could easily play the keen interest in the “Blazing Saddles” ing a campfire scene in the sequel, but “We know that will work, ’cause parts of the scoundrels and ne’er-do- sequel project and has been consulted I told her it was essential,” said Crisco. we’ll count all the traffic on I-95 as tour- wells who are hired by the governor on the script. She hosted a gathering at “And besides, it’s not as bad as teen- ist traffic, even if the cars don’t stop in to run the law-abiding citizens out of the Executive Mansion of select state agers killing each other for entertain- Roanoke Rapids,” Crisco said. CJ Visit the John Locke Foundation’s Regional Blogs In addition to our statewide blog, The Locker Room, the John Locke Foundation has five regional blogs that keep an eye on local officeholders, watch for waste of taxpayers’ money, and search for incidents of public information being kept from the public’s eye. Be sure to visit the one that cov- ers your region.

The Triangle Blog: http://triangle.johnlocke.org/blog

The Charlotte Blog: http://charlotte.johnlocke.org/blog The Triad Blog: http://triad.johnlocke.org/blog

The Western N.C. Blog: http://western.johnlocke.org/blog The Wilmington Blog: http://wilmington.johnlocke.org/blog