INSIDE THIS ISSUE: DEPARTMENTS Federal North Carolina 2 C A R O L I N A Education 6 court strikes Local Government 10 From Page 1 14 down health Higher Education 17 care man- Books & the Arts 20 Opinion 24 date/4 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION September 2011 Vol. 20 No. 9 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Fishermen at Odds Over ‘Game Fish’ Bill Consumers could see choices dwindle if legislation passes By Sara Burrows Associate Editor RALEIGH ed drum, spotted sea trout, and striped bass could be taken off the menu and off the market if Ra bill designating the three fish “game fish” becomes law. The law would make the species off-limits to commercial fishermen and consumers in order to preserve them for sport fishermen. Bill sponsors claim the species are more valuable to recreational fisher- men than to commercial fishermen and that making them game fish would at- tract tourism, create jobs, and generate revenue for the state. These red drum, on sale at a seafood store on the North Carolina coast, would no longer be available for sale in stores if a bill Commercial fishermen disagree, proposed in the North Carolina legisature is passed. (Photo provided by Chris McCaffity) saying taking the fish away from them mercial fishermen over who controls Atmospheric Administration, the state House Bill 353, to “nurture” recreation- would cost the state money, destroy the fish in the sea. has the potential to make it a $10 bil- al fishing to its full potential. jobs, and limit choices to consumers. Recreational fishing is a $3.7 bil- lion industry. The bill takes red drum, spotted The bill highlights an ongoing lion industry in North Carolina. Ac- Rep. Darrell McCormick, R- debate between recreational and com- cording to the National Oceanic and Yadkin, said that’s why he sponsored Continued as “Game Fish,” Page 14 Politicos Brace For Fights Over Amendments PAID likely to surface when the legislature RALEIGH, NC U.S. POSTAGE reconvenes Sept. 12 address eminent PERMIT NO. 1766 NONPROFIT ORG. Eminent domain, domain, traditional marriage, and term limits for top legislative leaders. same-sex marriage, Those “have been the most dis- cussed among our members,” said Ray term limits on agenda Martin, press secretary for Republican Senate leader Phil Berger of Rocking- By David N. Bass ham County. “That doesn’t mean they Associate Editor necessarily will be considered during RALEIGH the session, nor does it mean addition- or six months they wrangled al amendments won’t be considered.” over budgets, redistricting, guns, Other proposed changes to the abortion, obesity, tort reform, and jority clout, Republicans have a rare constitution cover the spectrum of Fcharter schools. Now, lawmakers in opportunity to incorporate their val- political issues: monetary policy, elec- the state’s capital are poised to take an- ues into the state’s highest governing tion law, redistricting, and government other dip into the partisan maelstrom document, and they need only a smat- transparency. during a mid-September session de- tering of Demcoratic support — plus a Amendments must be passed by voted to constitutional amendments. majority vote of North Carolinians — The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 Wielding their newfound ma- to do it. The three amendments most Continued as “Politicos,” Page 15 PAGE 2 SEPTEMBER 2011 | CAROLINA JOURNAL North Carolina C a r o l i n a Auto Body Trade Next to Face State Licensing? By Sara Burrows Journal Associate Editor RALEIGH Rick Henderson Managing Editor rom bent frames, to bad welding jobs, to fenders filled with Bondo, Don Carrington Charlotte-area auto repair inspec- Executive Editor Ftor Billy Walkowiak finds repair after repair after repair that he deems un- David N. Bass, Sara Burrows safe. To prevent such “hack jobs,” he Mitch Kokai, Michael Lowrey thinks all auto body shops in North Associate Editors Carolina should be licensed. Walkowiak’s business — Colli- sion Safety Consultants — provides Jana Benscoter, Kristy Bailey post-collision repair inspections to Kristen Blair, Roy Cordato ensure vehicles have been restored to Becki Gray, Sam A. Hieb Lindalyn Kakadelis, George Leef “pre-accident condition in regard to Karen McMahan, Donna Martinez function, safety, appearance, and val- Karen Palasek, Marc Rotterman ue.” When they haven’t, Walkowiak Overuse of Bondo filler by repair shops is a common practice that proponents say Michael Sanera, Tara Servatius helps vehicle owners “fight” their re- licensing would allow them to police. (CJ file photo) George Stephens, Jeff Taylor pair shops and insurance companies Michael Walden, Karen Welsh until the repair is done right. Some- fixes a car, the safety of your family, pations: Ensuring Quality or Restricting Hal Young, John Calvin Young times Walkowiak offers to repair the doesn’t have to have a license?” Competition? Contributors car himself. Right now, he said, there’s no Licensing an occupation typically Walkowiak sees himself as an ad- place for people to file a complaint. If is associated with a 15 percent wage in- vocate for people who’ve been “ripped it were up to Walkowiak, auto body crease for members of that occupation, Adam Barrett, Nicole Fisher technicians may not need a degree to Kleiner said. This partially may reflect Anthony Hennen, Zryi Mai off” by repair shops and the insurance companies who recommend and guar- get licensed, but “maybe some sort of a premium for higher human capital, Jonathan Martin, Erin McBrayer certification from I-CAR,” the interna- but more likely is due to the lack of Landon Nobles, Daniel Simpson antee the shops. tionally recognized training organiza- competition that licensing creates. Kristin Szafranski, Alissa Whately Although Walkowiak makes Interns his living protecting people from bad tion where he was certified, or from a Along with higher wages for car repairs, he said he can’t do the community college. employees come higher prices for con- job alone. He needs the government’s “They just need something, sumers, added Fergus Hodgson, direc- Published by help. He has suggested creating a new anything to prove they’ve got knowl- tor of fiscal policy studies at the John The John Locke Foundation licensing board under the state’s De- edge,” he said. “And not even so much Locke Foundation. 200 W. Morgan St., # 200 partment of Insurance. State Insurance that. The major reason for the license is “We’d be making the burden of Raleigh, N.C. 27601 Commissioner Wayne Goodwin isn’t so I can call the [licensing board] and maintaining a car even greater than (919) 828-3876 • Fax: 821-5117 say ‘Hey, Bob is doing a bad job repair- it already is,” Hodgson said. “People www.JohnLocke.org ready to go that far, but he thinks the General Assembly should study the ing cars.’” who are poorer and need a job done Jon Ham matter. After two or three complaints, the cheaply will be barred from getting Vice President & Publisher That said, economists who have body shop should be fined, and after their cars repaired.” reviewed the impact of occupational li- several more it should be shut down, Owning a working vehicle often John Hood censing on consumers have found that Walkowiak said. is an essential part of getting or keep- Chairman & President licensing requirements increase costs, Goodwin said his department ing a job, he added. “Whenever we limit competition, and do not necessar- receives a lot of complaints from car raise these costs, we’re just pushing Bruce Babcock, Herb Berkowitz ily increase the quality of the service owners and body shop owners about more and more people into the under- Charlie Carter, Jim Fulghum provided. bad repairs, but he has no power to do class and maybe even away from their Chuck Fuller, Bill Graham anything about it. employment.” Robert Luddy, Assad Meymandi A 25-year-old nurse recently “I’m encouraging the legislature Hodgson agreed with Kleiner Baker A. Mitchell Jr., Carl Mumpower, brought her car in to Walkowiak’s J. Arthur Pope, Thomas A. Roberg, shop for a post-repair inspection. It to study it,” Goodwin said. “I’m not that licensing probably would not im- David Stover, J.M Bryan Taylor, had been hit from behind. Walkow- saying there should be licensure, but prove the quality of car repairs. “If [li- Andy Wells iak tried to measure the thickness of perhaps they should have a board that cense holders] have a monopoly over Board of Directors the paint on the two rear fenders and assures some sort of minimum quality. garages, what incentive do they have couldn’t get a reading, which he said If the legislature recommends creat- to raise the quality?” Carolina Journal is a monthly journal indicated an overuse of Bondo, a filler ing a board, they should model it after While Walkowiak wants a li- of news, analysis, and commentary on state commonly used in auto body repair. what the homebuilders use with the censing board to hold body shops ac- and local government and public policy issues He then helped the young woman “de- Building Code Council, where they countable, Hodgson asks who would in North Carolina. mand” that the body shop and insur- have members of the profession on hold the unelected licensing board ac- ©2011 by The John Locke Founda- countable. “The best way to hold peo- tion Inc. All opinions expressed in bylined ance company look into it. They found there to help give some guidance.” articles are those of the authors and do not holes drilled into the fenders where Walkowiak said he’s spoken with ple accountable is through consumer necessarily reflect the views of the editors of a tool had been used to pull out the Sen. Wesley Meredith, R-Cumberland, choice,” he said. CJ or the staff and board of the John Locke dents. The holes had been filled in with and Sen. Rick Gunn, R-Alamance, “If you have a written agreement Foundation. Material published herein may plastic. both members of the Senate Insurance that someone’s going to fix your car, be reprinted as long as appropriate credit is “That’s like punching holes in Committee, about the issue and that and they’ve not come through on the given. Submissions and letters are welcome an aluminum can and then covering Meredith seemed “astonished and in- deal, just contract law is enough to fix and should be directed to the editor. it up with paint,” Walkowiak said. “If terested.” Neither Meredith nor Gunn that — small claims [court],” Hodgson CJ readers wanting more information someone were to get rear-ended in that responded to inquiries from CJ seeking said. “But people have a reputation to between monthly issues can call 919-828- car, there’s no resistance. The panels their views on the issue. maintain, and that’s the strongest in- 3876 and ask for Carolina Journal Weekly Licensing occupations usually re- centive I can think of.” Report, delivered each weekend by e-mail, should’ve been replaced.” Most important, Hodgson said, is or visit CarolinaJournal.com for news, links, “The ultimate goal would be to duces employment and increases pric- and exclusive content updated each weekday. have body shops licensed just like a es, without resulting in better services, the freedom to contract. Those interested in education, higher educa- barber,” Walkowiak said in a report said Morris Kleiner. “It’s a fundamental right to tion, or local government should also ask to on WCCB-TV, Fox Charlotte. “I mean, Kleiner is a professor of labor contract with people,” he said. “If receive weekly e-letters covering these issues. is that not hilarious that a barber shop economics at the University of Minne- you want to hire someone to fix has to be licensed and someone who sota and the author of Licensing Occu- your car, that’s your decision.” CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 3 North Carolina Yakdin County Alleges Fraud By Engineering and Planning Firm By Don Carrington lic documents, such as a deed of trust. Executive Editor One of the applicants listed in the RALEIGH Hobbs, Upchurch 2010 grant had died he Yadkin County Board of Com- nine months before the company was missioners alleged in June to the supposed to have interviewed him. N.C. Department of Commerce Another applicant’s home was de- thatT Hobbs, Upchurch, & Associates, a stroyed by fire, but Hobbs, Upchurch Southern Pines-based engineering and claimed six people were living there planning firm, falsified information in months later. a $100,000 grant application for low- The 2010 grant application also income home repairs, submitted for documented that a required local selec- the county last year to the department. tion committee had been chosen had- Commerce spokesman Tim gone through the process of selecting Crowley told Carolina Journal that his applicants. But according to the report, department forwarded information Ong and other Yadkin County officials on the Yadkin County situation to the claim a committee never met nor was State Bureau of Investigation. The al- even formed. legations, which include falsifying signatures, falsifying home inspection Commerce’s action reports, and fabricating meeting min- According to Cromwell’s report, utes, were submitted first to Vickie The headquarters of Hobbs, Upchurch, & Associates, a Southern Pines-based engi- two of Miller’s employees — Section Miller, director of the department’s neering and planning firm. (CJ photo by Don Carrington) Chief Vanessa Blanchford and Chief Community Investment Division, in In late August, Weisel told CJ that ment as part of the American Recovery Rehabilitation Specialist Jim Liles — a June 2 letter from County Manager he and Hobbs anticipated providing and Reinvestment Act, aka the stimu- met with Yadkin County officials Ong Aaron Church. Two of Miller’s em- a detailed refutation of all the allega- lus. HUD issued the additional funds and Church on June 7 to discuss the al- ployees visited Yadkin County on June tions when they have concluded their for its already-established Community legations and conduct site visits to the 7 to investigate the allegations. Miller research, most likely in September. Development Block Grant Program. homes listed in the 2010 grant applica- notified the county on June 13 that the Weisel said he is convinced the alle- The N.C. Department of Commerce tion. “Blanchard and Liles had direct grant had been frozen, prohibiting the gations can be proved to be without received a portion of those funds for contact with the applicants while Ong county from spending any money on merit. a “scattered site housing” program and Church remained in the vehicle,” the home repair projects. In a closed session June 20, coun- that makes grants to low-income hom- stated the report, without further ex- Documents obtained by CJ indi- ty commissioners approved $10,000 to eowners whose homes are in need of planation. cate county officials have been unim- hire attorney Brian S. Cromwell, a for- repair. The next day, according to the re- pressed with the investigation con- mer federal prosecutor with the Parker In June 2009, Hobbs, Upchurch port, Blanchard told Ong and Church ducted by Miller’s employees and Poe Adams & Bernstein law firm, to grant administrator Michael Walser that six of the eight homeowner-appli- remain concerned that her department conduct a separate investigation on contacted Yadkin County Planning Di- cants or their relatives verified the sig- would not take any action against behalf of the county. Cromwell’s com- rector Christopher Ong about the firm natures on the income and needs sur- Hobbs, Upchurch. pleted report, submitted to Miller by applying to the N.C. Department of veys, implying that the county’s fraud “Yadkin County was distressed Church on July 19, contained detailed Commerce for federal stimulus funds claims were unfounded. to discover that fraudulent or mislead- information supporting the county’s on behalf of the county. Some Yadkin ing documents may have been sub- initial claims. County residents seeking home im- Recent problems mitted on its behalf,” Church said in In February, Gov. Bev Perdue provements already had learned of Hobbs, a former Democratic state an Aug. 3 press release. “We have not announced that $14 million in grants possible grants and had been in touch senator, served one two-year term be- approached Hobbs, Upchurch, & As- would be distributed to 26 local gov- with Hobbs, Upchurch by phone or ginning in 1995. A 2010 investigation sociates with our findings so as not to ernments to “develop infrastructure, mail, he said. by the State Board of Elections found impede a potential investigation by the housing, or special needs in the com- According to Cromwell’s report, State Bureau of Investigation or other munity.” Eight of those 26 awards the original pre-application forms pro- that over an 11-year period, through law-enforcement entities.” went to local governments whose ap- vided to those who inquired did not his employees, Hobbs illegally fun- Later that day, Michael L. Weisel plications were prepared by Hobbs, contain a blank space for the appli- neled $109,000 to Senate leader Marc of the Bailey & Dixon law firm issued a Upchurch. cant’s signature, and none of the appli- Basnight, $20,000 to Gov. Bev Perdue, statement on behalf of Hobbs: The grant money was from fed- cants recalled a Hobbs, Upchurch em- $6,000 to former Lt. Gov. Dennis Wick- Today serious charges were eral stimulus funds that were admin- ployee making a home visit to inspect er, and $13,000 to former Gov. Mike leveled against Hobbs, Upchurch, & istered by Miller’s division. Yadkin their property. Easley. Associates, a Southern Pines-based County was one of the recipients, re- Hobbs, Upchurch submitted a In December, Hobbs admitted he engineering and planning firm head- ceiving a $100,000 grant to repair eight 2009 grant on behalf of the county, but violated the law and paid a $150,000 ed by Fred Hobbs. Mr. Hobbs stated, low-income homes. The county’s grant Commerce did not select the county in civil fine, acknowledging he illegally “We categorically deny all Yadkin application was prepared and submit- that round of awards. In 2010, Walser used employees to provide campaign County’s allegations as totally base- ted by Hobbs, Upchurch. The firm had informed Ong that another round of funds to Democratic politicians. less and false.” He further added, prepared the application at no charge awards was to be made available to Also in December, the Moore “We have no knowledge of any in- to Yadkin County, expecting to earn those applicants that had not received County district attorney filed criminal vestigation other than what has been fees of 10 percent to 20 percent for awards in 2010. The Yadkin County charges against Hobbs for the same speculated about in the press.” administering the grant. But Yadkin commission gave approval for Hobbs, illegal contributions. Hobbs pleaded Hobbs, Upchurch & Associ- County selected a Kannapolis firm, Upchurch to apply for a grant. guilty in April to a misdemeanor cam- ates learned of the accusations from Benchmark CMR Inc., to administer The allegations say that Hobbs, paign finance violation. He received a press reports and was not contacted the project. Upchurch did not meet the applicants $20,000 fine and one year of probation, by Yadkin County or Parker Poe Ad- The discrepancies began to sur- in person and collect their signatures and was ordered to perform 100 hours ams & Bernstein law firm during the face when Benchmark began to plan on income statements, nor did the com- of community service. course of their “investigation.” for the repairs. pany actually make inspections of each Hobbs’ firm is active in the gov- Fred Hobbs stated, “We will The allegations home to analyze the repairs that may ernment grant-solicitation business. issue a full and complete refutation be needed. Cromwell concluded in his The company’s website boasts that it of these unwarranted and unfounded The federal government provid- report that the signatures on income had obtained 554 grants valued at $573 allegations at the appropriate time ed the funds through the U.S. Depart- statements were forgeries because they million, though the site does not spec- and place.” ment of Housing and Urban Develop- did not match signatures on other pub- ify the time period covered. CJ PAGE 4 SEPTEMBER 2011 | CAROLINA JOURNAL North Carolina State Briefs Court Strikes Down Health Care Mandate Request sparks interest waiting until they become sick to pur- A public records request for chase coverage. This cost-saving mea- the salaries of local government North Carolina sure, Martin said, is another proper use employees recently sparked con- of congressional power. cern from North Carolina’s trade Even had North Carolina joined association for county govern- refused to join ments, despite the fact that the as- the multistate lawsuit, the panel’s de- sociation is secretive about releas- other states in suit cision would not have altered state ing its own information. By Rick Henderson policy immediately, said Ilya Shapiro, In June, Carolina Journal Managing Editor a senior fellow in constitutional stud- asked dozens of counties and mu- RALEIGH ies at the Cato Institute in Washington, nicipalities for personnel informa- three-judge panel of the 11th D.C. U.S. District Judge Roger Vinson tion available under the state’s U.S. Circuit Court of Appeals in Florida had found the mandate un- open-records law. That prompted in Atlanta ruled Aug. 12 that constitutional and said the mandate Sharon Scudder, a lawyer for the theA individual mandate in the federal could not be separated from the health N.C. Association of County Com- health care reform law violates the care bill without invalidating the entire missioners, to send out a broad Commerce Clause of the U.S. Constitu- legislation. request to local-government attor- tion. On appeal, the 11th Circuit re- neys asking which localities had The 11th Circuit’s opinion con- jected that reasoning. The majority received the filing. flicts with a separate federal appellate said the law was designed to expand “The magnitude and breadth court decision upholding the law, all health insurance coverage, and that of your request got attention,” of the mandate is not tied to health but guaranteeing that the U.S. Supreme other provisions besides the mandate Scudder said in a telephone inter- care consumption — past, present, or Court will review the legislation. — such as health care exchanges, tax view with CJ. “It’s very frustrating in the future. Rather, the mandate is to The N.C. General Assembly ear- credits, and other federal subsidies — for our counties, who are trying to buy insurance now and forever. The lier this year passed House Bill 2, leg- were legitimate exercises of federal be more fiscally responsible. But individual mandate does not wait for islation that would have compelled the power that would help accomplish the at the same time, there is nothing market entry.” state to join the litigation at issue. But law’s purpose. to pay for additional employees Even during the Great Depres- Gov. Bev Perdue vetoed the bill, and “Because the individual man- it takes to field some of these re- sion and the two world wars, the panel Attorney General Roy Cooper refused date doesn’t go into effect until 2014 quests.” said, “Congress never sought to require to participate in the lawsuit. anyway,” Shapiro said, “it [the ruling] Even though the association the purchase of wheat or war bonds, The 11th Circuit ruled on a law- doesn’t affect any state.” pays its employees with taxpayer force a higher savings rate or greater suit filed by 26 states and a number of In June, the 6th U.S. Circuit Court dollars, it has declined to release consumption of American goods.” other parties challenging the constitu- of Appeals in Cincinnati turned back details on its budget and salaries, In his dissent, Martin said, “when claiming that it’s not a public entity. tionality of the 2009 Patient Protection a challenge to the health care law. The measured against the kinds of sweep- and Affordable Care Act. In State of government is expected to ask the full ing changes we have seen in the past, Florida vs. U.S. Dept. of HHS the plain- 11th Circuit to review the decision; the individual mandate is far from a N.C. unemployment jumps tiffs posed two main challenges: First, even if the full circuit reverses, an ap- cataclysmic expansion of Congress’ it said the law’s requirement for every peal to the Supreme Court is certain. The N.C. Employment Se- commerce power.” He found the re- person who is not covered by a public When Perdue vetoed H.B. 2, curity Commission’s latest report quirement to purchase insurance ac- health care program to purchase insur- she called the bill “superfluous,” say- lists the state’s unemployment rate ceptable because everyone will need ance from a provider approved by the ing it is “unconstitutional” for a state at 10.1 percent for July, up two- health care at some point in their lives, federal government exceeds the pow- to “pass a law that is out of obeyance tenths of a percentage point from and purchasing insurance gives indi- with federal laws, and this House Bill June’s rate of 9.9 percent. It’s the er of Congress to regulate interstate viduals the capacity to pay for what 2 clearly is.” Perdue added, “This is- second straight month that the of- commerce. Next, it claimed the law’s they consume. sue will reach the Supreme Court in a ficial unemployment rate has in- expansion of Medicaid illegally com- Moreover, Congress imposed the timely manner without North Carolina creased and the first time the rate pelled states to take on new health care mandate to prevent individuals from spending money and energy on it.” CJ has reached 10 percent or more costs for the poor that they might not since September 2010. North Caro- want to pay. lina’s unemployment is a full per- The judges unanimously upheld centage point higher than the na- the expansion of Medicaid. But by a tional rate of 9.1 percent. 2-1 vote, the panel concluded that the Keep Up With the Officials and pundits should individual mandate went beyond the be careful about misusing the enumerated powers of the legislative numbers to score political points, branch that are spelled out in the Con- said John Locke Foundation Presi- stitution. General Assembly dent John Hood. The majority included Chief “Even before the N.C. Em- Judge Joel Dubina, appointed by Presi- ployment Security Commission dent George H.W. Bush, and Judge Be sure to visit CarolinaJournal.com released numbers showing 10.1 Frank M. Hull, selected by President percent unemployment for North Clinton. Hull is the first federal judge often for the latest on what’s going on dur- Carolina in July, Gov. Bev Perdue appointed by a Democrat to rule was pointing the finger at the ‘new against the mandate. Another Clin- ing the historic 2011 session of the Gen- political leadership’ in the General ton appointee, Judge Stanley Martin, eral Assembly. CJ writers are posting sev- Assembly,” Hood said. “It’s bad wrote the dissent. enough that Perdue appears to “This economic mandate repre- eral news stories daily. And for real-time have had access to unemployment sents a wholly novel and potentially data before it was made available unbounded assertion of congressional coverage of breaking events, be sure to to everyone else. What’s worse is authority: the ability to compel Ameri- that she seems to be drawing hasty cans to purchase an expensive health follow us on Twitter: conclusions from inconclusive insurance product they have elected numbers. Perdue is using the data not to buy, and to make them re-pur- to bash the Republican budget chase that insurance product every CAROLINA JOURNAL: http://www.twitter.com/CarolinaJournal she vetoed this summer.” CJ month for their entire lives,” the ma- JOHN LOCKE FOUNDATION: http://www.twitter.com/JohnLockeNC jority stated. “The statutory language SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 5 North Carolina General Assembly Looks for Creative Answer to Voter ID Veto

By Karen Welsh photo ID in order to vote is not the so- Contributor lution. We took a stand that a voter ID RALEIGH does not stop or prevent voter fraud. he Republican-led General As- It’s as phony as a $3 bill. It doesn’t pro- sembly fell short in its initial at- tect elections at all.” tempt to override Gov. Bev Per- Even if H.B. 351 or a similar mea- Tdue’s veto of a voter ID bill. But the sure became law, there would be no proposal is far from dead. House Bill provisions or mechanisms in place to 351, also known as the Restore Con- verify IDs. fidence in Government voter ID bill, “Fake IDs can be bought right stalled after vetoed it in July. off the Internet,” she said. “It does not H.B. 351 would require voters stop a dishonest person from casting a to show a valid, government-issued ballot.” identity document at the polls. House Daren Bakst, director of legal and Rules Committee Co-Chairman Tim regulatory studies at the John Locke Moore, R-Cleveland, a primary spon- Foundation, said Perdue’s veto was a sor of H.B. 351, said Republicans hope mistake. members of the legislature will recon- Bakst believes H.B. 351 addressed sider the bill in September. It was kept every significant objection to the law. It alive by using a procedural maneuver provides a free photo ID for any resi- when the override failed. dent who cannot afford one, exempts from the requirement those who don’t ‘Tip of the iceberg’ Opponents of voter photo ID laws, such as the Lawyers’ Committee for Civil Rights believe in taking photos for religious Under Law, refer to them as “voter suppression” laws and keep tabs on what each Moore said members of the Gen- state is doing with regard to voting legislation. (LCCRUL graphic) reasons, and allows the use of pro- eral Assembly who opposed the bill visional ballots for those who forget should think twice after several Wake a mid-February report by WRAL-TV in counties in the State.” to bring an ID to the polls. Including County voters were charged with vot- Raleigh. The General Assembly could those provisions in the bill, he says, put er fraud in August. He said those inci- Leaders have another trick up pass several local bills that include the legislation in line with similar laws dents are just the tip of the iceberg. their sleeves, however. They may con- fewer than 50 counties but cover the in other states that have withstood a “Under current law, it is hard to sider introducing several local voter ID vast majority of the state’s population. challenge at the U.S. Supreme Court. catch people in the act, and it is nearly bills that would bypass Perdue’s veto More than 85 percent of North Carolin- Bakst doesn’t understand why a impossible to prosecute,” Moore told power and bring it effectively into law. ians live in the state’s 50 most popu- measure intended to enhance the in- lous counties. Carolina Journal. “It is a difficult crime ‘Local bills’ strategy tegrity of elections is controversial. to prove, and it can be perpetrated on a Plymouth resident Greg Hassell “It’s offensive to me that [op- massive scale.” The state constitution allows the knows firsthand the effects of voter ponents] stoop to call the proposal In a December poll, the conserva- General Assembly to pass “local” bills and election-day fraud after he ran names,” he said. “It is not an attempt tive Civitas Institute found 83 percent that apply only to the jurisdictions for sheriff of Washington County in to suppress voting in the state. It is an of registered voters support a voter ID (such as counties) that are specified 2010. The Republican candidate lost attempt to ensure fair voting and make requirement. An Elon University poll in the legislation. Another primary the race by four votes. But as Hassell sure the person voting is the one who of North Carolina residents from April difference between local and general pored over the results, he found seven should be voting. It’s a very reasonable found 75 percent support for the mea- statutes: Local bills cannot be vetoed if people voted who shouldn’t have. The bill.” sure. “Local election board officials say an individual bill covers fewer than 15 reason? They were dead. that the most common complaint they counties unless “the result of [similar “I knew that there had been some ‘Records are shoddy’ hear from voters is why people aren’t local] laws taken together would be activity that was wrong,” he said. Bakst called the claim by Demo- required to show an ID to vote,” noted a law applying in more than half the “They couldn’t explain the numbers. I would have won the election if those crats that there is no voter fraud in the irregularities hadn’t transpired.” state ludicrous. Hassell feels certain that had vot- “It’s hard to check if you are not ers faced a legal requirement to pro- looking for it,” he said. “There are vide photo ID at the polls, he would be plenty of situations where you see that Visit our Triangle regional page sheriff in his community today. a bunch of dead people have voted, or http://triangle.johnlocke.org Perdue and Democratic Party of- the records are shoddy. ... The point is, ficials — with the full backing of the we don’t know the extent of the prob- lem.” The John Locke Foundation Obama administration — continue to fight a voter ID requirement. On its After losing his race for sheriff of has five regional Web sites span- website, the North Carolina Demo- Washington County, Hassell sought a ning the state from the mountains cratic Party claims that at least 500,000 new election. When the county rejected to the sea. elderly and minority voters “would his request, he paid $27,000 to hire an be turned away from the polls” if IDs attorney and get the state involved. The Triangle regional page in- were required. They also claim there is State officials found 600 addi- cludes news, policy reports and no evidence that voter fraud is a prob- tional voters who could not produce research of interest to people in lem in the state. an affidavit or verify a legal challenge the Research Triangle area. ‘Phony as a $3 bill’ to their ballots. A new election was or- dered, though Hassell did not win. It also features the blog Right Joyce McCloy, president of the “Something has to be done,” he said. “If the voter ID law had been in Angles, featuring commentary North Carolina Coalition for Verified Voting, also opposes the measure. She place and the election done properly, I on issues confronting Triangle said it would exclude low-income vot- would have been the sheriff now. Now residents. ers, calling it little more than a mod- I have to settle on making [the system] ern-day poll tax. more fair for the next person. Other- “I believe in checks and balanc- wise we’ll have the same problem dur- The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 es,” McCloy said, “but presenting a ing the next election.” CJ PAGE 6 SEPTEMBER 2011 | CAROLINA JOURNAL Education COMMENTARY Public and Teachers Differ The Ethics On Views of Education Policy Of Accountability By Karen Welsh might be leery of pay for performance Contributor because administrators and other su- he new school year is upon causes nor justifies flagrant cheat- us, offering promise and, ing. Cheating is a failure of personal RALEIGH pervisors would pay closer attention perhaps, penance. Summer’s integrity. It’s patently unfair to the nationwide survey conducted to what teachers are doing in the class- academicT interlude was inter- multitude of honorable educators to by Education Next and Har- room. rupted all too often by revelations suggest otherwise. vard University’s Program on “They don’t want a watchful eye of wrongdoing, as school cheating This is not to say that federal EducationA Policy and Governance or harder work,” Howell said. “All scandals stacked up nationwide. education law — the engine driving demonstrates how differently the gen- of this makes them less enthusiastic In July, Georgia’s governor high-stakes testing — is well-crafted eral public and educators view educa- about reforms.” released findings from a now- or effective. The law has eroded tion policy issues. The survey shows Howell also suggested that teach- infamous investigation into sys- states’ autonomy and flexibility, a sharp contrast on issues related to ers could balk at changes that standard- temic, longstanding cheating in and required schools to meet rising, school reform. ize classroom operations (including the Atlanta Public Schools. Some all-or-nothing goals (rather than Public attitudes about public objective performance measurements) 178 teachers and administrators at posting steady student gains). charter schools changed little from because they believe they know the 44 schools shamelessly corrected So the law needs to be modi- 2010 to 2011. In both years, the general true potential of their students and students’ answers on standardized fied. Congressional overhaul should public supported charter schools by how to get the most out of them. “They tests — even at weekend “changing take place this year. Unwilling to roughly a 2-1 margin, while teachers have a good idea of what works and parties.” wait, the U.S. Department of Educa- were slightly more likely to favor char- what doesn’t in the classroom,” he Also that month, allega- tion announced recently it would ters than oppose them. said. “They may think [these policies] tions emerged that educators at 89 offer states exemptions. Meantime, public support for won’t benefit them in the long run.” Pennsylvania schools may Lawmakers, not the school vouchers increased by 8 per- It may be no surprise that there’s have doctored students’ Education Department, centage points over the past year, a division between the public and test responses. In August, should fix the law. But from 31 percent to 39 percent. Oppo- teachers on the role of teacher unions. reports indicated offi- they should not jettison sition to vouchers declined, from 43 A third of the public believes unions cials were investigating test-based accountability. cheating at a Connecticut Standardized tests provide percent in 2010 to 38 percent this year. have a generally negative impact on elementary school; 17 objective, useful feed- In both 2010 and public schools; an- teachers and administra- back on student learning. 2011, a majority of other 29 percent tors were placed on leave. If kids are floundering, teachers opposed say unions have a Such schools and shooting the messenger vouchers (56 per- Surveys show positive influence. districts join others where — in this case, the test cent and 54 per- Among teachers, cheating and question- KRISTEN — won’t nullify the bad cent, respectively). a sharp contrast however, a mere 17 able testing practices have news. Obviously, testing Another di- percent say unions occurred. Yet despite BLAIR shouldn’t serve as a singu- vergence exists in issues have a negative ef- educators’ ethical lapses, lar yardstick of teacher or between the atti- related to fect on schools; 58 demands for mea culpas student success. But it is tudes of the public percent say unions have been muted. a necessary component of account- and teachers on school reform are positive. Instead, many are reserving ability. tenure. Public op- A t t i t u d e s their wrath for the No Child Left What about deterring cheat- position to tenure about school Behind law and high-stakes testing, ing? Many school districts will need rose slightly, from spending changed which base school ratings, penalties, to tighten exam procedures and 47 percent in 2010 to 49 percent this as respondents learned details about and, increasingly, teacher evalua- scrutinize tests (and improbably year. In addition, 55 percent of the pub- the amount of money dedicated to tions on student test performance. high scores) more closely. Allega- lic said that if tenure is to be offered at the schools. Nationally, 59 percent of Temptation to inflate scores is tions of educator wrongdoing must all, it should be based to some degree the general public and 61 percent of unprecedented, The New York Times’ be investigated carefully and fairly. on measurable improvements in stu- teachers said that per-pupil spending Michael Winerip wrote recently: When proven, cheating war- dent performance. should increase in their local school “Never before have so many had so rants punitive measures. In Atlanta, At the same time, tenure has be- districts. When informed how much much reason to cheat.” guilty educators face termination, Some say high-stakes test- perhaps prosecution. In Connecti- come more popular than ever among was spent per student, however, sup- ing incentivizes, even causes, cut, culpable teachers minimally teachers: 53 percent support tenure, up port for additional funding fell, to 46 corruption. In Atlanta, investiga- will lose their licenses; Connecti- from 48 percent last year. Only 30 per- percent of the public and 53 percent of tors blamed cheating primarily on cut’s acting education commission- cent believe that tenure should depend teachers. “pressure to meet targets in the er, George Coleman, has proposed on classroom performance. Howell said one of the most en- data-driven environment.” The that they fund student retesting A solid plurality of the public (47 lightening aspects of the survey is the Save Our Schools organization, and investigation costs, reports the percent to 27 percent) also is keen on wide chasm between how the gen- which links high-stakes testing with Hartford Courant. the idea of merit pay for teachers — a eral public and professional educators cheating, held a national rally to By far the hardest wrong to policy only 18 percent of teachers sup- view public education. protest test-based accountability put right in all of this is the dam- port. This is the fifth year the survey and other education policies. SOS age done to children. For struggling William Howell, professor of on public education issues was con- claims, “Many school communities students who purportedly “aced” American politics at the University of ducted. Howell said one of the goals of have resorted to cheating” in “des- tests, irretrievable time has been Chicago, is one of the survey’s authors. the survey is to raise awareness about peration to raise test scores.” lost. Even more fundamentally, we Howell told Carolina Journal there are education policies. He said survey au- Such explanations are almost have to wonder what life lessons two ways to look at the teachers’ lack thors continue to try to improve the as troubling as the cheating itself. these kids have internalized about of enthusiasm over school account- survey questions so they can get clear- Externalizing the causes of fraudu- test-taking integrity from adult role ability issues. First, he said a system er answers from participants. lent behavior leads to ever-shifting models. As the accountability de- of performance-based or merit pay has Education Next is a scholarly situational ethics. This is a slippery bate rages on, these issues ought to the potential of making a teacher’s job journal published by the Hoover In- slope indeed. Which workplace con- concern us most. CJ more difficult and more unattractive, stitution at Stanford University. For ditions warrant honesty, and which as it would require teachers to put in a PDF download of the entire results do not? Who gets to decide? Kristen Blair is a North Carolina more work before they earned higher of this year’s survey, visit http://bit. The truth is, testing neither Education Alliance Fellow. compensation. He added that teachers ly/o7wDxF. CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 7 Education Charter School Backers Leery About Makeup of New Commission

By Sara Burrows sion of charter schools. or business,” Atkinson told Carolina Republicans in the General Assembly Associate Editor Eddie Goodall, a former state Journal. “I also want to recommend to adopt new legislation creating an RALEIGH senator and president of the N.C. Alli- someone who can devote much time to independent charter commission that harter school advocates are glad ance for Public Charter Schools, is con- the council’s work, especially during would either reduce or eliminate the to have a new commission to cerned that Perdue gets to make eight the time when applications must be re- governor’s appointment power. oversee the expansion of public of the 15 appointments to the board. viewed. To date, I do not have a person Republican bill sponsors had charterC schools. Even so, charter school “So immediately we have one person, in mind.” removed the independent commis- backers are leery of who might be ap- out of 10 million in the state, who de- Christine Mackey, a spokes- sion from S.B. 8 to reduce its chances pointed. termines the voting majority of the ad- woman for Perdue, said, “the gov- of being vetoed, but they “would like The original version of Senate Bill visory council,” Goodall said. ernor is now considering candidates nothing more than for Perdue and her 8 — which lifted the statewide cap on In addition to having the most and will make her recommendations Democratic allies to give them a reason charter schools — called for the cre- appointments, soon,” but did to revive the idea in a future legislative ation of an independent charter school the governor not say what session,” Stoops said. commission to govern North Caro- has the most sort of back- lina’s public charter schools. Demo- leeway as to ground Per- Impede or facilitate? crats claimed the commission was whom she can due believes “If those appointed to the coun- unconstitutional, and eventually it appoint. While her appointees cil choose to impede the charter school was stripped from the bill. In the end, the heads of the should have. approval process, council members Democrats and Republicans compro- House and Sen- D a r - and the politicians that appointed mised on a commission that would be ate each must rell Allison, them will have to answer to a growing, purely “advisory” to the State Board of choose one president of politically active charter school com- Education, rather than one with inde- person from Parents for Ed- munity,” Stoops added. pendent powers of its own. the charter ucational Free- school commu- dom in North Bill sponsor Sen. Richard Ste- The commission nity, one from Carolina, said vens, R-Wake, confirmed Stoops’ senti- the traditional he doesn’t care ment. “We’ll be watching very closely The state board took the first school com- what back- what the state board does in the next steps Aug. 4 in creating such a com- munity, and ground coun- few months with this new council to mission. It will be called the North one from some- cil members see how serious they are about charter Carolina Public Charter School Advi- where else come from as schools,” Stevens said. sory Council. It will be responsible for (such as a business leader), the gover- long as they are not “enemies of char- He said the independent charter recommending charter school policies nor can pick anyone from any field. So ter schools.” Allison said he would like school commission — responsible for and developing standards for approv- can Atkinson. to see appointments of people from a approving new charter applications — al, rejection, renewal, and revocation of “The question is, are they go- variety of professions, such as busi- was one of the most important compo- charters. ing to be political appointments or ness, accounting, and law, “as long as nents stripped from the bill. The council will have 15 mem- appointments of people who want to they are supportive of and sympathet- “We expect to see some new char- bers, eight appointed by the governor, see charter schools succeed?” Good- ic to charter schools.” ters,” Stevens said. “So if we get 50 three by the speaker of the House, three all asked. He had hoped the governor Terry Stoops, director of educa- quality applications and [the council] by the president pro tem of the Senate, would have received six appointments, tion studies at the John Locke Founda- approves two, we’ll be back talking to and one by the state superintendent of leaving Speaker Thom Tillis, R-Meck- tion, said he’s willing to give the gov- them in [next year’s] short session.” public instruction. lenburg. and President Pro Tem Phil ernor and superintendent the benefit “We believe in good faith they Charter school supporters worry Berger, R-Rockingham, with four each. of the doubt. “Governor Perdue may will honor the new law and allow the who might be selected for the council “I want to appoint a person who be tempted to appoint obstructionists cap fully to be lifted,” Stevens said. by Gov. Bev Perdue and Superinten- puts children first when making deci- to the council, but I believe that she is “Sometimes there’s a big difference be- dent June Atkinson, both Democrats sions and someone who has a back- smarter than that,” Stoops said. tween a law being passed and how the who have at times opposed the expan- ground in running a successful school Such a move, he said, could spur administrators deal with it.” CJ Locke, Jefferson and the Justices: Foundations and Failures of the U.S. Government Share your CJ By George M. Stephens Finished reading all Preface by Newt Gingrich

the great articles in this “This book is about American politics and law; it is also about month’s Carolina Jour- the roots of the Contract with America. A logical place to find nal? Don’t just throw it the intent of the Founders is in in the recycling bin, pass Locke, [and] Stephens makes a contribution to highlighting it along to a friend or this.” Newt Gingrich neighbor, and ask them Former Speaker U.S. House to do the same. of Representatives Thanks. Algora Publishing, New York (www.algora.com) PAGE 8 SEPTEMBER 2011 | CAROLINA JOURNAL Education New Law Requires H.S. Students to Learn About Founders By CJ Staff RALEIGH little more than one year after North Carolina public school officials proposed a contro- versialA plan to slice much of pre-1877 history out of the state’s high school curriculum, state lawmakers have stepped in to guarantee that the cur- riculum includes instruction on the na- tion’s Founding era. A bipartisan General Assembly approved House Bill 588, The Found- ing Principles Act, during the closing days of the main 2011 legislative ses- sion. As lawmakers engaged in par- tisan battles over more controversial measures, the House approved H.B. 588 106-5, and the Senate endorsed it 43-0. Gov. Beverly Perdue signed it into law June 23. “The survival of the republic re- quires that our nation’s children, the future guardians of its heritage and participants in its governance, have a clear understanding of the Founding Philosophy and the Founding Princi- ples of government for a free people,” according to the act’s preamble. The new law goes on to note that students will find the philosophy and principles High school students must now learn about the Founders, some of whom are depicted above in John Trumbull’s painting of “in the Declaration of Independence, the signing of the Declaration of Independence, and the principles they espoused. the United States Constitution, the Federalist Papers, and the writings of big backlash is a part of it,” said Terry the General Assembly has entered the Chapel Hill. the Founders.” Stoops, director of education studies at business of establishing a curriculum Nichol labeled the Founding The law specifically orders a se- the John Locke Foundation. “I have to for public schools. Principles Act an example of Repub- mester-long course titled “American think the whole dustup with the U.S. “It’s a slippery slope,” he said. lican legislators’ “ideological forced History I - The Founding Principles.” history curriculum had something to “This is something we agree is impor- march” in a July column for The News Students must pass the course to grad- do with it. I think there was cause for tant and critical for students, but what & Observer. But within days of the ini- uate from high school. great concern.” if something more controversial be- tial publication, Nichol recanted his Ten specific principles earn spe- Troy Kickler, director of the North comes curriculum through legislation? column. He blamed misleading news cial attention with- Carolina History You have to wonder what their limits reports for his misperception about the in the legislation: Project, said he are. … I have mixed feelings about it.” new law’s contents. Creator-endowed was pleased to Stoops also worries about appli- Although this year’s legislation inalienable rights Students must hear of the new cation of the new law. He said teachers changes nothing in state law regarding of the people; the law. He said it is will need to have a solid background displays of the Ten Commandments, structure of gov- pass a important for stu- in and thorough knowledge of both the Kickler said the commandments ernment; separa- one-semester dents to read and documents and the history associated should be used as a teaching tool be- tion of powers study the found- with the Founding era. cause of their importance to our na- with checks and course before ing documents so “Implementation could be diffi- tion’s Founders. balances; frequent they can under- cult,” he said. “Most people who come “For example, ‘Thou shall not and free elections graduating stand the roots of out of college don’t know this stuff.” steal’ implies we should be able to own in a representative America. The new law’s provisions also land and not have it unfairly taken government; rule “It ensures generated some confusion this sum- away from us,” he said. “This influ- of law; equal jus- students learn mer. enced the Founders of this country and tice under the law; private property about the past — how the Founding Because the Founding Principles is more important to our current rules rights; federalism; due process; indi- Fathers framed the Constitution and Act rewrote existing state law, the legis- of law than other forms of law.” vidual rights as set forth in the Bill of how America gained independence lation quoted provisions in the current In addition to a new course, the Rights; and individual responsibility. from England,” he said. N.C. General Statutes. Sandwiched Founding Principles Act tweaks the Legislators took action after de- Despite his initial enthusiasm, in between two rewritten subsections state’s public school standardized test- bate about the state’s history curricu- Kickler doesn’t think the Founding was a decade-old provision permitting ing program. lum generated national media atten- Principles Act goes far enough. As it school displays of historic documents Since 1990, state law has required tion in early 2010. Parents, historians, stands, he said the course is incom- such as the Magna Carta, Mecklenburg the State Board of Education to in- and lawmakers complained to the N.C. plete and needs more content, includ- Declaration, Justinian Code, and Ten clude questions about the Declaration Department of Public Instruction after ing the hotly contested debates over Commandments. of Independence, U.S. Constitution, national media outlets such as Fox constitutional issues that occurred at Left-leaning critics latched onto and Federalist Papers in statewide News publicized a proposal to start state ratifying conventions before the that existing provision to attack the standardized tests. Starting in 2014- North Carolina’s high school Ameri- Constitution became part of the fabric new law as an attempt to promote the 15, the new law adds to that require- can history instruction with the post- of the nation. Ten Commandments in public schools. ment. Standardized test questions Reconstruction era in 1877. Stoops also has mixed feelings Among those who employed that line must now cover the “principles under- Some observers believe last about the new law. On one hand, he of attack was Gene Nichol, professor of lying” those documents, along with year’s media furor helped drive this believes it offers excellent subject mat- law and director of the Poverty Center the “philosophical foundations of our year’s debate. “I have a feeling that ter. On the other, he is worried that at the University of North Carolina at form of government.” CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 9 Education Tax Credits for Special-Needs Children Highlighted at Forum By Sara Burrows “nightmare” for his disabled daughter Associate Editor that eventually turned dangerous. He RALEIGH put her in a private school in the mid- new law will give thousands dle of the 2011 spring semester, miss- of parents of disabled children ing the deadline for the tax credit by a tax credit of up to $6,000 for only a few weeks. takingA their children out of the pub- A mother said her son was in pub- lic school system and educating them lic school for two “disastrous” years privately. However, the credit will not before she decided to put him in pri- be available to parents who made the vate school, where he now “thrives.” switch before the fall of this year. “Do I have to punish him by Several hundred parents gath- putting him back in a horrible public Rep. Paul “Skip” Stam, center, speaks at an Aug. 16 forum in Raleigh on the tax school for a year?” she asked. If she ered in the North Carolina Museum credit for parents of disabled students. From left are Julia Adams of the ARC of of Natural Sciences Aug. 16 for a ques- North Carolina, Drupti Chauhan of the Research Division of the General Assembly, doesn’t, she said, she may lose her tion-and-answer session about the new Stam, Jennifer Mahan of the Autism Society of North Carolina, and Joni Alberg of house. tax credit. Dozens were disappointed Beginnings for Parents of Children Who Are Deaf or Hard of Hearing. (CJ photo by “We have stopped our 401(k), we to find out they weren’t eligible. Sara Burrows) have sold cars, we’ve gone to [finan- To qualify, the disabled child viding the tax credit. If the state offered Petruk. “And he’s thriving.” cial adviser] Dave Ramsey workshops, must have been enrolled for at least parents money to do what they’ve al- Although they finally found we’ve stopped his college fund, we’ve the preceding two semesters in a pub- ready been doing — educating their an elementary school that met Bran- stopped everything to be able to afford lic school, explained bill sponsor Rep. children on their own dime — it would don’s needs, the Petruks worried they private school,” she said. “We’re think- Paul “Skip” Stam, R-Wake. Stam, along lose millions of dollars. wouldn’t be able to find a middle ing about selling our house and mov- with other state lawmakers, legislative school that could. ing to an apartment. We will do what- ever we have to do because our son is staff, and school choice advocates, an- Who the tax credit helps Eventually they learned of the worth it.” swered parents’ questions that night. school choice movement and became Ten-year-old Brandon Petruk has Stam said he hopes the two- involved in trying to get a tax cred- Unpleasant news a genetic disorder called XYY. He un- semester requirement eventually will it passed. Leslie sat in on commit- derstands all that is said to him, but be removed. He said including it was Parent after parent asked the tee hearings on a tax credit bill a few cannot speak, except through sign lan- a necessary compromise to get the bill years ago when educators said parents same question: “What if my child al- guage or an augmentative communi- passed and encouraged parents to urge didn’t know what was in the best in- ready attends private school?” Time cation device. their representatives to support future terest of their children and couldn’t be after time, Stam gave the same answer: His parents spoke at the forum legislation removing it. “I’m sorry. You don’t qualify.” that night. trusted to use a tax credit wisely. “Not every parent of a child with “At age 5, Brandon was placed in “This was insulting to listen to, Credit nonrefundable special needs can get this credit this a regular classroom, against our will, and as a parent, quite painful,” Leslie Another weakness of the tax year, and I am very sorry for that,” where no one was able to communi- said. credit is that it is nonrefundable, said Stam said. “Only those who have been cate with him … much less know how That bill was never voted on, and Darrell Allison, president of Parents in public school for the last two semes- to educate him,” said Brandon’s father, the Petruks gave up on seeing any leg- for Educational Freedom in North Car- ters. It’s a terrible limitation. I’m totally Trevor Petruk. islation passed before Brandon gradu- against it, but it was completely neces- ated high school. But this year, they olina. That was the start of a long legal Nonrefundable means the credit sary because we had no money.” were given new hope. battle for the Petruks, which they even- is limited to the amount parents paid With the two-semester limitation, “When I received the call in July tually won. in state income taxes. A married couple the bill actually saves the state money, telling me House Bill 344 had passed, I “We had to fight to get Brandon paying $3,000 in state income taxes, for Stam explained. That’s because the wept,” Leslie said. into the classroom he’s in, in the one example, can get no more than $3,000 state spends more educating a child When Brandon was diagnosed public school in our district I would be back, no matter how much money with special needs than it loses by pro- satisfied with,” said his mother, Leslie as a baby, Leslie committed to do ev- erything within her power to help him they spent on private school tuition or live to his full potential, “no matter special education services for home- what the culture said, no matter what schoolers. educators said.” While many families spend far Visit the new-look “When this law came to fruition, more than $6,000 a year on private it was the fulfillment of my commit- education services, not all of them pay Carolina Journal Online ment to him,” Leslie said. $6,000 in state income taxes. Either The Petruks plan to use the credit way, Allison said, these parents save on a tuition-charging middle school the state money by educating their where Brandon “will get his needs children themselves. met.” Those who pay more than $6,000 in state income taxes are in higher in- Who it doesn’t help come brackets and may be less likely to need assistance paying for their chil- For parents who couldn’t wait to dren’s education, Allison said. make the leap from public to private “The purpose of school choice is education, the tax credit won’t be any to target families who don’t have op- help. Dozens of them lined up during tions,” he said. “If you’re wealthy in the question-and-answer segment of North Carolina, you have many op- the forum to express their frustration. tions in K-12 education.” They complained it wasn’t fair Allison sees the new law as a foot that they had to pay taxes for public in the door and said his organization education they weren’t using and pay plans to work next session to make tuition for private school. Many said the full benefit of the credit available they had no choice but to take their to “working middle class and work- children out of public schools that ing poor.” And eventually he’d like to With links to the new CJTV and CJ Radio Web sites were unable to understand their chil- see a tax credit available for all families http://carolinajournal.com dren’s disabilities. who choose private education, not just A father said public school was a those with special needs. CJ PAGE 10 SEPTEMBER 2011 | CAROLINA JOURNAL Local Government

Town and County

Convention center hotel VRA Delays Several De-Annexation Efforts

Wilmington officials have By Sara Burrows rubber stamp, since de-annexing in these situations will in- sought to have a full-service hotel Associate Editor crease black voter strength, not dilute it,” LaRoque said. next to the city’s convention cen- RALEIGH But Wayne County Attorney Borden Parker advised ter for some time. The tentative ine communities recently annexed involuntarily against moving forward with the Goldsboro de-annexation plan now is for a Sheraton to be into cities now have a chance to undo their an- without preclearance. He and three other county attorneys built on the site, reports the Wilm- nexations. But only seven of the communities have received letters from the state attorney general’s office ington Star-News. movedN forward with their plans, thanks to a provision in warning them to wait. Harmony Hospitality of Vir- the 1965 Voting Rights Act. “I don’t see why there should be any problem getting ginia Beach has made a tentative The Annexation Reform Act of 2011, which became law the preclearance, because actually it would improve the mi- proposal for a 194-room Sheraton. in June, allows property owners facing hostile annexation nority numbers in that district, because the area to be de- It was the only developer express- to “de-annex” if 60 percent of the affected property owners annexed is predominantly white,” said Bob Pleasants, presi- ing an interest in building a full- sign a petition rejecting the annexation. House Bill 56 made dent of Good Neighbors United of Wayne County. that provision retroactive for eight communities undergo- service hotel. Harmony is now Taxed for no services conducting a market survey to see ing annexation proceedings by Goldsboro, Kinston, Lexing- whether a Sheraton is viable. If ton, Rocky Mount, Wilmington, Asheville, Southport, and Pleasants and his Wayne County neighbors were an- not, it may proceed with a limited- the Village of Marvin. Senate Bill 27 made the petition pro- nexed, against their will, by Goldsboro three years ago. service hotel. cess retroactive for a community undergoing annexation by “We’re kind of frustrated and a little bit confused be- Fayetteville. “We need to start thinking cause the bill was passed June 18, and supposedly on that The process has been put on hold in Goldsboro and about what the market can take. date it became law,” Pleasants said. Fayetteville, however, because Wayne and Cumberland I would like to see the plaza ho- It could take eight months before the preclearance is counties are two of the 40 North Carolina counties covered granted and the petitions are counted, he said, and another tel here, but we’ve got to also be by Section 5 of the Voting Rights Act. realistic,” said Wilmington Mayor several months before the de-annexation actually occurs, Bill Saffo. Preclearance Pleasants said. The city is expected to offer “Every day that we’re in the city, we’re paying taxes,” a significant amount of incentives Section 5 requires certain jurisdictions to obtain “pre- he said. to help finance the construction of clearance” from the U.S. Pleasants said his Justice Department be- taxes are about 1.8 times whatever hotel Harmony deter- fore attempting to change as high as they were before mines is appropriate. any voting practice or he was annexed. Golds- procedure. The idea is to boro “offered us nothing Greensboro landfill prevent discrimination we didn’t already have,” against black residents. he said. “Absolutely noth- The Greensboro City Coun- The act became law ing.” cil is proceeding with a plan to re- in 1965 as a temporary Pleasants now pays open its White Street Landfill. The emergency procedure to more for city water and proposal has generated consider- quell widespread, sys- garbage collection than able opposition from residents liv- tematic discrimination he did for the private ver- ing near the closed facility, reports of black voters across the sions of those services, the Greensboro News & Record. South. and although the city The city closed the White “The need for it is promised his neighbor- Street Landfill in 2006 and ships long gone,” said Hans hood sewer service by Oc- its waste to Montgomery County von Spakovsky, senior le- tober 2010, it has “barely for disposal. A company the city gal fellow at the Heritage even started” the process plans to hire to operate the White Foundation. Spakovsky of providing it, he said. Street facility estimates running is a former Justice De- “They’ve acquired some the landfill rather than hauling partment attorney who easements and purchased garbage out of the county can save worked on voting rights enforcement and was a member of some equipment, but they haven’t got a contract for con- the Federal Elections Commission. struction or anything like that.” the city at least $3 million a year. The 40 affected N.C. counties were included in the law With the potential for de-annexation a year from now, Councilman Danny Thomp- based on turnout data from elections that happened more the sewer project surely will be put on hold even longer, son argued to reopen White Street. than 40 years ago, Spakovsky said. “The formula basically Pleasants said. “Let’s use it,” he said. “It’s an as- was, if you had voter registration or turnout of less than 50 The delayed de-annexations are a perfect example of set. It’s a landfill. That’s what it’s percent in the 1964, 1968, or 1972 elections, you were cov- why Section 5 of the Voting Rights Act is no longer needed, permitted by the state of North ered.” said Spakovsky. “It serves no purpose” and causes unneces- Carolina for. Every other landfill At the time, very few blacks were registering to vote sary “inconvenience,” he said. in North Carolina — guess what because of discrimination and intimidation, he said. “None they’re doing with them? They’re of that’s true anymore. You haven’t had voter registration Perpetual five-year plan putting their trash in them.” below 50 percent for decades now.” And in some cases, the law can cause more than just Thompson was not moved inconvenience, Spakovsky said, noting the federal govern- by concerns over the impact re- In conflict with state law ment’s rejection of Kinston’s recent referendum to switch to opening the landfill might have Kinston, Rocky Mount, and the Village of Marvin also nonpartisan elections. on people living nearby. are in Voting Rights Act counties, but their boards of elec- “The Justice Department objected because the black “There are 100, 150 people tions have mailed petitions without waiting for preclear- voters who approved it wouldn’t know who to vote for if in there,” Thompson said. “I gotta ance. H.B. 56 and S.B. 27 required that the petitions be mailed there wasn’t a party label next to the candidate’s name,” he make a decision for 260,000 [resi- within 35 days of passage. Residents facing annexation by said. “It was used to thwart the will of the majority of the dents].” Fayetteville also were mailed petitions, but the Fayetteville voters, who are black.” “I’m about to lose my Amer- city attorney has asked Cumberland County officials to stop Although Section 5 was supposed to last only five ican dream because of garbage,” collecting petitions until preclearance has been obtained. years, it has been renewed four times and is not likely to be said Vanessa Martin, who lives Rep. Stephen LaRoque, R-Lenoir, said he doesn’t see repealed any time soon, Spakovsky said. near the landfill. “Don’t turn any reason both the preclearance process, which can take up “Democrats like it because it gives them a way of our American dream of owning to 120 days, and the petition process, which takes another preventing voting measures they don’t like,” he said, a home into a nightmare.” CJ 130 days, should not proceed simultaneously. “and Republicans are too afraid to vote against it because “The preclearance should be nothing more than a they’re afraid they’ll be called racists.” CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 11 Local Government

Cleveland County Manager Gets COMMENTARY Five-Figure Bonus During Freeze Uncertainty By Anthony Hennen To compensate employees for Editorial Intern the pay freeze, the Cleveland County Brings Opportunity RALEIGH budget for fiscal year 2011-12 included hile Cleveland County offi- bonus vacation hours based on years ames Madison once said that he “There is a cause for near-term con- cials froze salaries for local of service. Next year, the county com- operated “on the principle that cern about a number of public sec- government employees in missioners expect to approve “a good Ja public debt is a public curse.” tor defined benefit pension plans” earlyW 2009 as a cost-saving measure, cost-of-living increase,” Hutchins said. Lately, it would seem that Madi- while recognizing “the considerable the county continued to give its county As county manager, Dear played son’s words are echoing in local pressure that these obligations will manager five-figure annual bonuses. primary roles in attracting economic government, albeit to hushed voices place on many government budgets Beginning in 2008, County Man- development projects from companies and furrowed brows. in the coming years.” ager David Dear including Clearwater Paper, Southern On the heels of S&P’s down- There’s a third obligation received four one- Power, and Duke Energy, Hutchins grade of the U.S. debt, Moody’s facing local government: revenue. time bonuses of said. quickly followed suit and issued Local government derives the $10,068 in an effort The Clearwater Paper develop- some stark news to several North vast majority of its revenue from by county com- ment project is expected to create 260 Carolina counties and cities. property taxes. With the economic missioners to dis- full-time jobs, according to the minutes Though Moody’s issued downturn, property valu- suade him from from the June 7 commission meeting. no downgrades, it did ations have fallen, most retirement and as a The building of a Duke Energy training place several jurisdictions notably at the coast and on a “negative outlook” mountains. When valua- reward for attract- center is expected to create between 75 list. This was no ordinary tions go down, property ing new economic and 125 new jobs, reported The Shelby scolding and should grab tax rates will increase to development to David Dear Star, a Cleveland County newspaper, the attention of citizens compensate. Brunswick Cleveland County, in July. statewide as it hit our County alone lost $10 bil- County Commission Chairman John- Cleveland County is obligat- major metropolitan areas. lion in value (a 29 percent ny Hutchins said. ed contractually to compensate the Yes, the areas that for decrease) as a result of its “During the time that the salaries county manager at a minimum rate years have promised local revaluation, leading tax were frozen, our county manager was of $135,700. In addition, Dear receives CHAD government largess as a rates to increase by almost deciding whether to take retirement. a yearly discretionary allowance of ADAMS way to improve quality of 50 percent. This was part of keeping him on. We $7,200, increased from $4,800 in 2008 life got a wrist slap. This is both a perfect had some economic development proj- by the board of commissioners. Com- What does this storm and an opportunity. ects going on at the time,” Hutchins missioners don’t monitor the use of the mean? Future debt obligations For too long, local governments said. allowance. could face higher interest rates, have spent millions on projects that When the bonuses were given in Analyzing data on 84 of North making them more expensive for have nothing to do with needed Cleveland County, the unemployment Carolina’s 100 counties compiled by taxpayers to repay. The counties of services. They’ve spent money on rate for the county peaked at 16.1 per- the School of Government at the Uni- Wake, New Hanover, Guilford, and walking trails, arts councils, golf cent as individuals struggled to endure versity of North Carolina at Chapel Mecklenburg were given this news courses, civic and convention cen- the stagnant economy. Hill (complete data were unavailable as well as the cities of Durham, ters; wasted resources on incentives In June, Cleveland County’s un- for some counties), Cleveland County Winston-Salem, and Greensboro. that haven’t saved jobs; pursued employment rate (not seasonally ad- ranks 31st in property valuations. The These bastions of local government shiny trains for transit when roads justed) stood at 12.1 percent, compared county paid its county manager the could have shown leadership by needed repairing; and found count- with a statewide rate of 10.4 percent. 16th-highest salary. telling the public that they would less reasons to pass costly new regu- The seasonally adjusted figure for Compared with 2007, before the review all current and proposed lations that have hurt true economic North Carolina was 9.9 percent. recession began, Cleveland Coun- debt, prioritize it, and consider not growth. Cleveland County is located west ty added 11 public workers to the taking on new debt that wasn’t This could be a renaissance of Charlotte and Gastonia along the ranks of those earning $60,000 per absolutely necessary. of sorts for local government. It South Carolina border. Its population year or more, a 52 percent increase. But the public reaction was provides the backdrop for candi- as of the 2010 census is 98,078, and Carolina Journal obtained this in- very different. Reid Baker, finance dates and elected officials to point about one-fifth of the residents are be- formation as part of a public-records director for Guilford County, was out wasteful spending and focus low the poverty line. request made of all 100 counties and quoted as saying, “We think the on priorities like schools and law “David plays a dual role, that the state’s largest municipalities. reviews have more to do with state enforcement. This also should be a some county managers might or might Cleveland County provided the and national debt.” Bruce Shell, time to get rid of nonessential items not do,” Hutchins added. “He puts records to CJ free of charge, but not New Hanover County’s manager, like golf courses and revise plan- together our incentives packages and all county governments have been as told the Wilmington Star-News ning and zoning regulations that are coordinates economic development for forthcoming. Union County estimated that the county’s “strong” finances impeding job creation. us that’s made us successful in attract- a charge of $396 to fulfill the same re- would hold down any potential Yes, economic times are tough. ing some businesses.” quest, while the City of Wilson quoted short-term costs and that existing One can argue over who’s to blame, To retain the county manager and a $5,000 fee. debt wasn’t going to go up. but it’s far more productive, at the avoid the search for a replacement dur- North Carolina’s open-records So what most officials, elected local government level, to focus on ing the stagnant economy, the board of law allows state and local governments and appointed, are trying to say is what government should be doing. commissioners viewed the bonuses as to levy a “reasonable” special charge the equivalent of “Police Squad”’s Those that become leaner, more necessary. for requests that “require extensive use Sgt. Frank Drebin, claiming “Noth- efficient, more focused, and less No other county employees have of information technology resources,” ing to see here,” as the fireworks cumbersome will be the ones best received bonuses, but Cleveland Coun- but frequently counties choose not factory explodes in the background. prepared for better times. CJ ty increased health insurance benefits to pursue this option. CJ Bond indebtedness is one is- for employees in lieu of salary increas- sue. Pension liabilities are another. Chad Adams is host of “The es. In some cases, Hutchins said, the Fitch Ratings recently noted in its Morning Beat” on 93.7 FM and 106.3 increase in benefits may exceed a cost Associate Editor David N. Bass con- analysis of pension obligations, FM The Big Talker in Wilmington. of living adjustment. tributed reporting to this story. PAGE 12 SEPTEMBER 2011 | CAROLINA JOURNAL Local Government From the Courtroom New Cape Fear Reservoir Elections Board Suits Could Alleviate Water Woes By Michael Lowrey Carolina have only as much author- By Michael Lowrey PART faces a $1.1 million budget Associate Editor ity as the General Assembly gives Associate Editor gap. It plans to save nearly $950,000 RALEIGH them. No state law explicitly pro- RALEIGH by reducing frequency on 10 of the 11 ach county in North Caro- vides local boards of election with New Hanover County commis- routes it runs. Cuts in office staff and lina has a board of elections, the authority to sue or be sued. sioner is proposing that a large marketing also are planned. funded by its county commis- However, N.C. General Statue § 163- lake be built on the Cape Fear The agency also has proposed sion.E How much leeway do these 25 authorizes the State Board of Elec- RiverA in Bladen County. The proposed a fare increase from $2.40 to $3 on all elections boards have to spend the tions to “assist any county or munic- reservoir would help eliminate future routes outside of its PART Express ser- funds allocated to them, including ipal board of elections in any matter water supply issues for the greater vice between Greensboro, High Point, how many people to hire? And more in which litigation is contemplated W i l m i n g t o n and Winston- or has been initiated.” generally, do area, report the Salem. It raised “If the local boards of Wilmington Star- the fare on all its State Board of election have News and Fay- Cherokee routes to $2.40 in The North Carolina Courts Elections can the authority July; the one-way assist a county etteville Observer. to sue and be fare previously board in ongo- W i l m - to sued? had been $2. As a ing litigation, ington sits in a T h e unique position. result of the fare state’s sec- county boards of After the Cape increase, PART ond highest elections must Currituck Fear River flows experienced a 13 court recently have the abil- through the city, percent decrease ruled in favor ity to sue and it discharges the water it carries into in riders. of the local be sued,” wrote the ocean. As such, there are no down- The pending additional fare in- boards, decid- Judge Robert N. Hunter Jr. for stream users to consider. Even so, the crease is expected to reduce ridership ing a funding dispute from Graham further and cut into PART’s income County. the appeals court, in holding that the region will reach its maximum with- board of elections had the authority from grants tied to ridership. PART During a September 2009 meet- drawal from the river in about 30 years, to sue. estimates the higher fares will net only ing, the Graham County Board of potentially limiting future growth. “Otherwise, they would not an additional $13,600. Commissioners voted to eliminate The solution, according to New require the assistance of the State PART Chairman Darrell Frye also one of two full-time positions at the Hanover County Commissioner Rick Board of Elections with respect to has suggested the transit organization Graham County Board of Elections, Catlin, is to construct a reservoir on litigation that ‘has been initiated.’” come under the control of and share leaving it with just one full-time po- the river, turning the river basin into a The county also argued that it, space with the Piedmont Triad Region- sition (the director of elections) and lake covering some 8.6 square miles in and not the board of elections, has al Council to achieve further budget one part-time position. The Board Bladen County. the legal authority to determine the “We get trillions of gallons of savings. The council was created by of Elections, however, hired a sec- number of employees the elections fresh water that we don’t capture, and merging the Piedmont Triad Council of ond part-time employee. The county board can hire. commission refused to pay Angela it runs into the ocean. The ability to Governments and the Northwest Pied- Again, the Court of Appeals mont Council of Governments. Orr, the second part-time employee, disagreed. While the appeals court store any portion of that is a positive even though the Board of Elections found that all elections board per- thing,” said Catlin. Wake open-space ordinance had enough money in its budget to sonnel did indeed qualify as county A new state law will make it fund the position through the re- employees, it also held that this was easier to turn Catlin’s idea into reality. As expected, the Wake County mainder of the fiscal year. not the key factor. House Bill 609, which the General As- Commission has ended its policy of The elections board went to N.C. General Statute § 163-32 sembly passed in June, allows money requiring developers to set aside land court seeking a writ of mandamus states that county boards of elections from the Clean Water Management in new subdivisions for open space or to compel the county commission to shall pay their employees “such Trust Fund to be used to build reser- contribute to a county fund to provide pay Orr. On Dec. 14, 2009, Superior compensation as it shall fix within voirs. The idea is that state and local parkland. The program has proven im- Court Judge James Baker ruled in budget appropriations,” while § 163- governments would partner to in- practical, reports the Raleigh News & favor of the elections board, order- 33(10) states that elections boards crease water supplies. Observer. ing the county to pay Orr and also have the power “[t]o appoint and Local water authorities have re- The county adopted the ordi- $5,035.50 of the elections board’s at- remove the board’s clerk, assistant sponded positively to Catlin’s propos- nance in 2002. Since then, it has collect- torney fees. clerks, and other employees.” al. Turning the idea into reality will ed $1.7 million from developers that The county commission ap- “We conclude that, so long as take many years. chose to pay rather than provide open pealed the ruling, contending that a county board of elections remains “It may be decades before we space. However, the county has spent the Board of Elections lacked the le- within the budget allocated by the only $42,633 from the fund. The Rec- gal authority to seek a writ of man- reach completion, but the value of fu- local board of county commission- ture water supplies will distinguish reational Land Dedication Ordinance damus or otherwise sue or be sued. specified that the land to be acquired ers, the county board of elections our region and promote our success,” Specifically, the commission argued has the sole authority to hire and fire with the funds should be within three Catlin said. “Good projects need to that the board of elections could not elections employees,” wrote Hunter. miles of the development. That proved start with a vision. This is a good start- sue because it is nothing more than a “This authority provides the difficult, as suitable affordable land ing point. It is a conversation starter.” subdivision of the county. clear legal right required for man- was scarce, particularly in popular State law requires each county damus. Here, it is uncontested that PART cuts more parts of the county. to have a three-member board of there were sufficient funds in the The move does not mean that the elections, which the local county budget to pay Ms. Orr. Consequent- The Piedmont Authority for Re- county is giving up on acquiring more commission is required to fund ad- ly, the Board of Commissioners was gional Transportation continues to open land. Wake County has issued equately. The State Board of Elec- dutybound to disburse funds to pay struggle financially. The Triad’s region- $91 million in bonds to buy 4,600 acres tions, however, appoints members Ms. Orr. This duty is purely minis- al transit service’s latest proposal to of property for use as parkland. to county boards of election. It also terial — there is no discretion in- close a budget gap includes additional “The county has more strategic has the authority to remove mem- volved.” fare increases, service reductions, and methods to preserve open space and bers or the local director of elections The case is Graham County Board a possible merger with a newly creat- require parkland — methods more ef- it selects. Of Elections v. Graham County Board of ed regional government organization, fective than this impact fee,” noted Tim Local governments in North Commissioners, (10-653). CJ report the Greensboro News & Record Maloney of the Wake County Division and Winston-Salem Journal. of Community Services. CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 13 Local Government Greensboro Touts Greenway Plans as Road to Economic Growth

By Sam A. Hieb tablished to promote business,” said Contributor council member Trudy Wade. “I don’t GREENSBORO know who decides what appropriate upporters of urban greenways uses are, but there may be some exist- tout them as an important recre- ing businesses on the greenway that ational and environmental ame- might not know about this. To me, this Snity for residents in cities all over the is the first step in putting in a lot of oth- country. But some might say there’s a er ordinances, and I don’t see how that trend in local government to make gre- promotes businesses.” enways more than they are. Council member Danny Thomp- In Greensboro, city officials have son asked about the effect on current ambitious greenway plans. A $26 mil- property owners. Clegg said they lion downtown greenway is under would be “grandfathered in.” construction, and long-term plans in- Clegg told the council that the clude linking that greenway with an- ordinance would “encourage use of other that would run along one of the greenways and to integrate greenways city’s busiest thoroughfares. The Gate into existing commercial uses,” which City envisions an eventual 300 miles of in turn would “encourage economic urban greenway. Greensboro devotes a website to its greenway ambitions, touting itself as the only city in North Carolina that will have an urban trail encircling its downtown. development along greenways.” City planners believe that green- Despite the concerns of some ways not only have health and envi- Concrete — uses the rail line for prod- the greenway to buildings. council members, the motion to ap- ronmental benefits, but also are drivers uct transportation. A few scenarios While some might view this as a prove the ordinance passed by a 9-0 of economic development. With that in are possible. Chandler has stated its restrictive ordinance, Kotis told CJ he’s vote. mind, they already are making plans to intention to move when the economy discussed the issue with other prop- The downtown greenway came guide development along greenways. recovers, which could free that rail cor- erty owners along the rail line. up in September 2010 as the coun- The Greensboro City Council ridor for reuse on an expanded green- “We haven’t heard any negative cil was discussing a downtown de- pondered that idea at a recent meeting way, but the company has provided no feedback,” he said. sign overlay. At issue were properties when it discussed a greenway devel- timetable for moving. Even so, it was unusual that no across Fisher Avenue carved into the opment ordinance. Moreover, commercial and in- one appeared to speak on the item In an unusual twist, a developer overlay. Property owners maintained dustrial properties are in short supply when the City Council took it up in proposed the ordinance. The develop- that the north side of Fisher Avenue in Guilford County, making a reloca- July — not even Kotis. er in question was Marty Kotis, presi- wasn’t “downtown.” tion easier said than done. “My guess is the reason why the dent and CEO of Greensboro-based Perkins cited the greenway when Still, Kotis plans to be ready when applicant is not here is he thought it Kotis Properties. the railroad does become available. supporting a version of the overlay would be an innocuous request and Kotis Properties is known for In a phone interview with Caro- that included those properties. there wouldn’t be a lot of discussion,” high-quality development. It has prop- lina Journal, Kotis said reduced parking “I think it’s pretty clear that the erties across the Southeast in addition requirements — to cut down on auto- said council member Robbie Perkins. city is going to spend $26 million on a to several high-profile properties in mobile traffic — reduced setbacks, and “It’s a little bit out of the box, but it’s greenway, and that greenway is going Greensboro, including a good chunk signage along the greenway will make something that’s necessary in order to to go down Fisher Avenue,” Perkins of land along Battleground Avenue, commercial development more attrac- maximize our tax base and his poten- said. “I think it’s critical that Fisher which runs from downtown until it tive. tial for success. I see no way in which Avenue be an outstanding street that’s turns into U.S. 220 north of the city. “We’re trying to do something this inhibits a business owner’s rights consistent in character.” Some of Kotis’ property is adja- that’s not part of the original ordi- or anything else.” After Wade spoke up for the cent to the Yadkin and Atlantic Green- nance,” Kotis said. Still, other council members had rights of the property owners across way, a 7.5-mile trail that runs along the Other changes include improve- tough questions for city planning and Fisher Avenue, the council passed her Yadkin and Atlantic rail corridor. Right ments to what is typically the back of community development director substitute motion excluding those now, only one company — Chandler a building and improving access from Russ Clegg. “The greenways were es- properties by a 6-3 vote. CJ Help us keep our presses rolling Publishing a newspaper is an ex- pensive 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 SEPTEMBER 2011 | CAROLINA JOURNAL From Page 1 ‘Game Fish’ Bill Pits Commercial, Recreational Fishermen Continued from Page 1 shores of the island of Hatteras in the 1930s. sea trout, and striped bass off the list of “Recreational boats are sitting fish commercial fishermen are allowed at the docks for lack of business right to catch. The fish could be caught only now, and it’s not because commercial by hook-and-line and could not be fishermen have caught all the fish,” sold. Foster said. “The reasons are econom- The fish are not endangered. ic, not resource-related. People can’t af- Each year the North Carolina Division ford to take a charter trip.” of Marine Fisheries sets limits on how Foster laughed at McCormick’s many can be caught based upon its as- job predictions. “The boat-making in- sessment of how large the stock is. Of dustry has collapsed because of the the total allowable catch, recreational economy and people’s inability to buy fishermen are given the rights to 80 boats,” he said. “The only ones who percent, while commercial fishermen can make a living now are commer- are allotted the remaining 20 percent. cial fishermen, because they’re not de- The bill would give recreational fish- pendent on someone to show up with ermen the sole rights to 100 percent of discretionary funds saying ‘please take the fish. me out to have fun.’” Foster also pointed out that Mc- Fishing for fun Cormick used “a bunch of fancy mul- Red drum, spotted sea trout, and tipliers” to determine the recreational The sea trout served at this Pamlico County restaurant are among the fish that would value of a fish, while using no multi- striped bass are highly attractive to be unavailable to restaurants and consumers if House Bill 353 becomes law. (Photo game fishermen and relatively unim- provided by Chris McCaffity) pliers to determine the commercial portant to commercial fishermen, Mc- value of the fish. A commercial fisher- Cormick said. for the first few years and help them those caught accidentally, even though man may be paid only $1.50 per pound The three fish make up only 1.6 transition into other lines of work. most would die anyway. McCaffity be- for fish he sells at the dock, but those percent of commercial fishermen’s ag- “Think about tobacco farmers,” lieves the waste eventually will lead to fish are then sold in restaurants, hotels gregate catch, he said. The number of he said. “That is one of the models a ban on all commercial fisheries that and grocery stores, he said. Also, com- fishermen making more than $2,000 a we’ll have to look at.” interact with the species. mercial fishermen buy fishing gear and year on the species is fewer than 100. McCormick added he’s “not try- “This would destroy most of the need boat repairs just like charter boat “The value of binoculars sold to ing to eliminate” the commercial fish- remaining fisheries in state waters and operators. fishermen each year is more than the ing industry in the state. “We’re just greatly restrict our access to many oth- aggregate value of all three of those trying to nurture the potential of recre- er kinds of delicious North Carolina Who’s behind the bill? fish to the commercial fisherman,” Mc- ational fishing in North Carolina.” seafood like shrimp, spot, and floun- While it’s disputed whether the Cormick said. “There’s absolutely no The fish are a public resource, he der,” he said. state would make any money if H.B. impact on them, but these are the three said, and they need to be reallocated to While the number of commer- 353 becomes law, it’s certain it would most popular recreational fish.” their most valuable use. cial fishermen in North Carolina has lose money. McCormick estimates the state “It’s 100,000 jobs versus 77,” Mc- dropped significantly over the past The bill authorizes up to $1 mil- can squeeze more revenue out of each Cormick said. “It’s a million people two decades — which McCaffity at- lion to compensate commercial fisher- fish if it is caught recreationally rather [holding recreational fishing licenses] tributes primarily to high taxes and men for lost wages for three years. The than commercially. versus 77. It’s a $10 billion industry complex regulations — far more than state would take the $1 million from “The dock value of one red drum versus a $700,000 industry.” 77 make the majority of their livings on fishing license revenue, even though is about $1.50 a pound,” he said. “Its As for the potential inconve- the water, he said. Many have second an agreement with the federal govern- value to our state, as a recreational fish, nience to consumers, McCormick sug- jobs to supplement their incomes. ment stipulates the fund must be used is $300 a pound.” gested they could do without these “Regardless of the number, we to administer of the state Fish and He came up with the figure by di- fish. “They’re only three species of should encourage the few remaining Wildlife Agency. Diverting that money viding the total amount an average va- how many species do they sell? Maybe to continue supplying consumers with could cost the state between $15 mil- cationer spends on a fishing trip by the 1,000? They are only 1.6 percent of all access to fresh local seafood and to number of fish he is allowed to catch the menu fish.” preserve our proud heritage,” McCaf- lion and $20 million annually over the on that trip. He says North Carolina’s fity said. three-year period in federal Wildlife fish attract tourists from all over the Fishing for food While McCormick portrayed the and Sport Fish Restoration funds. country, especially the Northeast. fish fight as 77 commercial fishermen But Foster doesn’t think increased Commercial fishermen tell a dif- tourism, tax revenue, or job creation “Those guys come down and ferent story. versus 1 million recreational fishing li- bring $2,000, $3,000, $6,000, and they cense holders (many from other states), is the real goal behind the bill. These It’s misleading to represent the types of bills are typically pushed by stay for a week and go fishing,” Mc- three fish as insignificant to -commer McCaffity portrays it as 3 percent of Cormick said. “They go to the restau- North Carolinians who fish recreation- the Coastal Conservation Association, cial fishermen and consumers, said a sport fishing group responsible for rants. They stay at the hotel. They buy a Chris McCaffity, an independent com- ally versus 97 percent whose only ac- net bans in Texas, Louisiana, Missis- boat. They spend a few hundred bucks mercial fisherman in Morehead City. cess to the fish is through commercial sippi, Alabama, Florida, and Georgia, in the tackle shop. They buy bait. Then Blue crabs make up more than fishermen. he said. they go out one day with a guide or on 50 percent of the seafood harvested “Our state’s seafood is a public While the organization says its a charter boat.” in state waters. Shrimp, shellfish, and resource that should be available to ev- By increasing the fish available to numerous species of fish make up the eryone regardless of whether they har- goal is to “conserve, promote, and sportsmen by 20 percent, McCormick remainder, McCaffity explained. “That vest it themselves or access it through enhance the present and future avail- concludes the state can more than dou- is going to make the percentage of any commercial fishermen, seafood -mar ability of these coastal resources for the ble the size of the recreational fishing finfish species harvested look small in kets, and restaurants,” McCaffity said. benefit and enjoyment of the general industry and create 100,000 jobs. comparison.” Ernie Foster, a second-generation public,” Foster said CCA has “wiped There will be job openings for The three species listed in H.B. charter boat operator in Hatteras, says out all the small-time coastal fisher- recreational guides, boat makers, boat 353 are not the primary targets of most McCormick’s “dreams” of a flourish- men in these states, and they’d like to dealers, tackle store workers and hotel commercial fishermen, he said, but are ing recreational fishing industry are do the same in North Carolina.” and restaurant workers, he said. caught while fishing for other species. “ludicrous.” The North Carolina chapter of McCormick said that there are The fish make up varying percentages Foster entertains recreational CCA listed the passage of H.B. 353 as only about 77 “hard-core” commercial of the fishermen’s incomes, and for fishermen for a living. He takes up its top legislative priority this session. fishermen left in the state and that their some it is much more than 1.6 percent. to six vacationers at a time on fish- The bill is unlikely to pass before the jobs are not essential. He said the state Designating the fish “game fish” ing tours. His father is credited with 2011 legislative session is over, but it would compensate them for lost wages would force fishermen to throw back starting charter fishing off the isolated could resurface in 2012. CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 15 From Page 1 Politicos Gear Up For Constitutional Amendment Fights Continued from Page 1 female relationship and bans same-sex can leaders were still looking at the de- not include the taking of property unions, but an amendment would pre- tails of the marriage amendment. “I’m in order to convey an interest in the a three-fifths majority of both legisla- vent state courts from striking those not aware if a decision has been made property for economic development,” tive chambers — that’s 72 out of 120 laws down. on the finer points of either,” he said. which could frame the issue better to votes in the House and 30 out of 50 A pressing question is which protect property rights, Bakst said. votes in the Senate. Although the gov- amendment — the House or Senate ‘Eminent’ battle ernor can’t veto amendments, another version — will be considered. The Dynasty killer hurdle is that they must gain a simple Another measure tentatively on House bill addresses marriage only, the agenda calls for an amendment to A third amendment likely to crop majority approval by voters in 2012 be- while the Senate bill goes a step further fore becoming part of the constitution. prevent local governments from tak- up would term-limit top leaders in and could ban civil unions and domes- ing private property for nonpublic both chambers of the legislature to no Republicans need the support of tic-partner benefits for the same-sex at least four Democrats in the House uses, such as to increase tax revenue. It more than two two-year sessions. The partners of government workers. also would require just compensation objective is to prevent too much power to pass an amendment, while the GOP Tami Fitzgerald, director of the Senate caucus has enough members in eminent domain takings and give from being concentrated in one indi- N.C. Values Coalition, stressed that property owners the right to have a vidual legislator for too long. to pass one in that chamber without the Senate version wouldn’t prohibit Democrats. jury set compensation. After rigorous debate, the House private businesses from handing out The amendment counters a U.S. passed the measure, 72-46, in April. Since voters ratified the current domestic-partner benefits for same-sex state constitution in 1971, the legis- Supreme Court ruling in 2005 that Four Democrats — Reps. Bill Faison couples. It bans OK’d the constitu- of Orange County, Jean Farmer-Butter- lature has tried to enact amendments only state and lo- 36 times, 29 of which were successful, tionality of a local field of Wilson County, Susi Hamilton cal governments government tak- of New Hanover County, and Dewey according to the secretary of state’s of- from recognizing North Carolina fice. During that period, amendments ing property for Hill of Columbus County — joined all those relation- economic devel- 68 Republicans in the House in voting have given the governor veto power, ships, she said. voters have required the state to run a balanced opment purposes. for the amendment. “The amend- The decision was Democrats said that a straightfor- budget, and allowed voters to elect the ment is about pro- approved 29 governor and lieutenant governor to an interpretation ward change to the legislature’s rules, moting strong, constitutional of the “takings rather than a wholesale change to the two consecutive terms. healthy families so Voters have shot down seven clause” in the Fifth state constitution, would be a better they can produce amendments, Amendment to the option. amendments, including one that stable, healthy, would have extended terms for state and have voted U.S. Constitution “Not everything that’s a good balanced, and that guides when idea needs to be in the constitution,” senators and representatives to four- successful chil- year, rather than two-year, terms. down seven, government can said House Minority Leader Joe Hack- dren that will fuel condemn property ney, D-Orange, on the House floor in The majority party has addition- our future work since 1971 al power because it frames how the for a public use. April. force and our The state Republicans disagreed. “The amendment question appears on the state’s economic ballot, giving it a favorable or nega- House passed the people want things like this. The peo- growth,” Fitzger- bill 98-18 in April, but the Senate didn’t ple like turnover among their public tive tone, said Bob Orr, a former N.C. ald said. Supreme Court justice and current di- take it up. officials,” said Rep. Johnathan Rhyne, Groups in favor of same-sex mar- Although supportive of the idea R-Lincoln. rector of the N.C. Institute for Consti- riage say the amendment is a distrac- tutional Law. overall, property-rights advocates are tion. “The legislature was sent to Ra- concerned that the amendment doesn’t Sidelined amendments “The actual amendment itself leigh to tackle jobs, the economy, and go far enough. “It’s too general,” said does not appear on the ballot,” Orr Lawmakers might debate a hand- the state budget, not to advance a di- Daren Bakst, director of legal and said, “so the ability of the drafters of ful of other amendments, but votes in visive social agenda,” Equality N.C.’s regulatory studies at the John Locke the proposed amendment to, shall we either chamber are less likely. Among website stated. Foundation, which publishes Carolina say, ‘cook the books’ with a favorably them is a “sunshine” amendment that Martin said that leaders haven’t Journal. “The language doesn’t pro- worded issue is something that needs would strengthen North Carolina’s decided which specific versions of vide any additional protection beyond to be carefully looked at in the whole open-records law by putting it in the amendments will be considered. Jor- what’s already defined in the U.S. Con- process.” dan Shaw, a spokesman for Republican constitution. stitution.” During the long session earlier House Speaker Thom Tillis of Meck- The Senate version of the amend- Marriage tussle lenburg County, said House Republi- this year, sponsors mounted three un- ment specifies that a public use “does successful attempts to pass the mea- Debate over an amendment de- sure, first as a constitutional amend- fining marriage as between one man North Carolina constitutional amendments ment, then as a statute. The bill made it and one woman could be among the passed or rejected in the last two decades to the House floor but was abandoned most heated, and the battle lines al- when Democrats and some Republi- ready have been drawn. A rally behind • 2010: Bans felons from running for sheriff (passed 85%-15%) • 2004: Allows localities to use tax increment financing to pay for cans objected. the Legislative Building in May drew Two other amendments also are infrastructure improvements in economic development districts thousands of traditional-marriage sup- in the running: porters, while three homosexual-rights (passed 51%-49%) • House Bill 188, Taxpayer Bill protesters were arrested in June af- • 2004: Allows the legislature to place fines, forfeitures, and penalties of Rights: Commonly known as TA- ter they ran onto the House floor and in a fund for public schools (passed 78%-22%) BOR, the amendment would require yelled during a session. • 2004: Changes the first term of magistrates of the General Court of new General Fund expenditures to North Carolina is the only state Justice to two years with subsequent terms lasting four years each correlate with population growth plus in the Southeast without a marriage (passed 68%-32%) inflation. A two-thirds majority vote of amendment. Nationwide, 30 states the General Assembly would be need- have amended their constitutions to • 1996: Gives veto power to the governor (passed 75%-25%) ed to exceed the expenditure limit. protect traditional marriage and ban • 1996: Expands the types of punishments that state courts may im- • Senate Bill 139, Gubernato- same-sex marriage, typically by two- pose, including expanded probation and community service (passed rial Team Ticket Implementing: The thirds margins. Six states have legal- 86%-14%) amendment requires that the gover- ized same-sex marriage, half of those • 1996: Codifies the rights of victims of crime, such as the right to at- nor and lieutenant governor run on through judicial ruling and the other tend court proceedings, in the constitution (passed 78%-22%) the same ticket, as the U.S. president and vice president do. The change half through their legislatures. • 1993: Allows localities to issue tax increment bonds without voter wouldn’t go into effect until the 2016 Statutory law in North Carolina approval (failed 21%-79%) already defines marriage as a male- gubernatorial election. CJ PAGE 16 SEPTEMBER 2011 | CAROLINA JOURNAL Interview Boettke: Economic Incentives Matter and Must Be Allowed to Work

By CJ Staff RALEIGH “If people can engage in a market eople would develop a much better understanding of the way economy and privatize the profits, the world works if economics professorsP did a better job. That’s a but socialize the losses, they’re go- prescription from Peter Boettke, pro- fessor of economics at George Mason ing to engage in riskier behavior. This University and co-author of one of the is precisely what we saw leading up field’s leading academic textbooks. Earlier this year, Boettke discussed to 2008. The sort of rules of general the importance of economics during a presentation in Raleigh for a Camp- decision making and prudence [in the bell University audience. Boettke ad- dressed similar themes in an interview banking industry] were thrown out the with Mitch Kokai for Carolina Journal window.” Radio. (Head to http://www.carolina- journal.com/cjradio/ to find a station Peter Boettke near you or to learn about the weekly Professor of Economics CJ Radio podcast.) George Mason University Boettke: Very rarely do you have someone come up to you and say, “Ah, economics! I just fell in love with eco- nomics!” Except the people that are maybe next to you as professors of ers of the market, in a way that is just were thrown out the window, and the the short run on a decision and dis- economics. So I want to sort of, like — phenomenal. And YouTube clips. Gary rules on the bank side of engaging in perse the benefits in the long run. OK, so imagine that our task is to teach Becker’s class on human capital is now prudent lending behavior were thrown So think about the evolution in a students to be informed about this re- available on YouTube, and you can get out the window. And as a result, we market economy of cell phones. We’re ally sort of important aspect of our life. the whole class. So I think it’s amaz- ended up by having a system in which old enough; we remember when cell Almost every day, you get economic ing what’s happening with education. people made systemic errors that were phones were the size of your head. news, so we need economic literacy. And I don’t think our side, which has built into the system. Now they’re like these little things. As But yet, we don’t quite get that mes- been very good, has just scratched the Getting that message across … they grew [in use], they got less expen- sage across. And so there’s this tremen- surface of how we can affect social me- now, what I ended up with was a very dous opportunity that gets wasted. In sive, even. So they were real expensive, dia, the Internet, all that kind of stuff, subtle and complicated thing, but what then they got less expensive, and they fact, you might be able to say that the to advance our economic ideas. I began with was a very basic thing. In- “Principles of Economics” professor were used by more and more people in centives matter, and in order to have a network. That’s how markets work. might be one of the most important Kokai: Most people who hear us those incentives work, you want to public intellectuals in America today. Note that that’s to concentrate costs in are not going to go back to school and have freedom and responsibility, right? the short run, but disperse the benefits become economics majors. What are And a market economy of profit and Kokai: in the long run. Do you think people are some basic things these folks should loss. more open now than they were before Politics is the exact opposite. Con- know about economics that would centrate the benefits in the short run, the financial crisis to learning about help them? Kokai: What you’re saying seems economics? and disperse the costs in the long run. to make a lot of sense, but why does So good politics conflicts with good Boettke: I think the No. 1 thing it seem that so many people in Wash- Boettke: There’s a series of economics, and in Washington, D.C., is to focus on incentives, and the big is- ington, D.C., aren’t buying into any of the coin of the realm is politics, and not things that caused that to happen. One sue to ask yourself about our society is this? of them is that economics is in the news economics, and so the economic ideas that I think most people would buy the that cater to the concentration of bene- every day, and so people want to learn Boettke: statement that we want to live in a so- Because of incentives. fits and the dispersion of cost are going more about what’s going on. You know, ciety of free and responsible individu- The incentives in democratic politics they hear all these things about the fis- to be the ones that get used by politi- als. And I think then it takes a little bit — by definition, a politician wants to cians. The ones that are going to be un- cal stimulus or why we’re having a job- of education to get them to understand get elected. All right. And in order to popular are going to be the ones that, less recovery. All these ideas are there, that a society of free and responsible get elected, he needs votes and cam- you know, demand that politicians be and it’s in their interest to learn about individuals would have individuals paign contributions. Voters also face constrained in their behavior, that you them, so there’s more discussion. But participating within a market economy incentives, and they — you know, allow the market economy to operate. there’s also a big debate that’s gone on, based on profit and loss. what is the incentive for them to pass … That’s the explanation I would give. and you’ve got to give Ron Paul a lot of The real puzzle for our modern an informed vote? So what happens credit for this because he’s raised this times is that when people are given is we get a bias in the political process Kokai: issue about what the role of the Fed is freedom, but without responsibility, which concentrates benefits on well- If the problems are built in all of this, which means people are and they’re able to participate in a mar- organized and well-informed interest into the system and not just the result then exploring it. And the Internet has ket economy without worrying about groups, and disperses the costs on the of some crooks in office, how do we provided economic resources for peo- losses — so they can privatize the unorganized and ill-informed mass of make a change? ple to educate themselves in a way that profits, but socialize the losses — why voters. So we have concentrated ben- they never had that opportunity before should we be surprised when people efits in the short run, dispersed costs in Boettke: Yeah. Well, I think that in the past. So it’s pretty phenomenal get haywire, right? When the system the long run. that means that you have to change right now what’s going on. falls apart? Because if people have Economics, good economics, the rules of politics. Jim Buchanan, One of the things that I really find freedom, but no responsibility, they act on the other side, flips that equation my teacher, has an essay which says at a good level, a sort of high level of irresponsibly. If people can engage in around. In a market economy, what it’s not better players, it’s better rules economic discourse, is Russ Roberts’ a market economy and privatize the you would do is you would concen- that make a better game. … We want podcast, you know, which I think peo- profits, but socialize the losses, they’re trate the cost on the decision maker, to have a better game in politics, so we ple can listen to all over the world and going to engage in riskier behavior. right? And you would disperse the need to have rules that constrain the learn about economic ideas and ideas This is precisely what we saw benefits on the economy widely, as discretionary authority of political ac- of different authors that even oppose leading up to 2008. The sort of rules of we have generalized prosperity. And tors. And when we do that, we’ll be the market, but also are the defend- general decision making and prudence moreover, we concentrate the costs in able to have better political games. CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 17 Higher Education Study: UNC Teaching Loads COMMENTARY A New Even Lower Than Reported Board of Governors By Jenna Ashley Robinson versities in 1988, the teaching load was Contributor 2.75 courses per professor per semes- he University of North which ended in 2010, the board RALEIGH ter, on average. That figure fell to 1.6 in Carolina Board of Governors, rarely disagreed publicly with his ow much time do faculty mem- 2004. At liberal arts colleges, the loads which oversees the entire proposals. bers spend actually teaching? went from 3.7 in 1988 to 2.5 in 2004. TUNC system, kicked off the 2011-12 The board also has come That somewhat touchy subject Gillen believes that faculty are hasH been the topic of a great deal of giving up teaching time to have more academic year with its first meeting under fire for its method of selec- analysis, and it’s not over yet. time for research. in August. tion, which the NCCPPR called In June, the Pope Center released The decline may be more severe How effective will that gov- “highly politicized.” A position on a paper by Jay Schalin measuring the than Gillen’s figures indicate. Chang- erning body be? the board is one of the most sought- teaching loads of faculty in the Universi- ing definitions in the faculty survey It’s hard to predict, but by after political plums in the state. ty of North Carolina system. His report from year to year make it difficult to one measure — political affiliation Politics aside, a more funda- was based on a sample of departments quantify the problem and may explain — we have a very different board mental problem with the Board of at four UNC campuses: Appalachian the unusual pattern of the data. (Teach- than in the past. Half the voting Governors is its size. No manage- State University, UNC-Chapel Hill, ing loads decreased every year except members of the Board of Governors ment consultant would recom- UNC-Greensboro, and UNC-Asheville. 1999). In some years, the data include were selected by the Republican mend such a large governing body His findings, while preliminary, indi- both “for-credit” and “non-credit” leadership of the General Assembly, because it allows — even forces — a cated that faculty spend considerably courses in the estimate, whereas in ending the dominance of Demo- small group to take control. That less time teaching other years only crats on the board. size also stifles debate than UNC esti- “for-credit” cours- While there’s no and pushes major deci- mates claim. He es are counted. reason to believe that Re- sions into committees. estimated they Teaching loads Other changes, publicans care more about Whatever the struc- teach between 2.07 too, make com- academic quality than tural challenges for the and 2.72 courses aren’t only parisons difficult. do Democrats, the new board, it faces some new per semester, com- The data re- members are different. realities. One is growing pared with the veal that loads are not very high, They are not beholden to concern about higher official estimate slightly higher at the status quo or to the education’s quality and from the Univer- they’re also public universi- Democratic establishment cost. ACTA’s president, sity of North Caro- ties than at private lina system, which declining ones. However, that has traditionally run JANE Anne Neal, spoke before is 3.37 courses per course loads are the university system SHAW a group of board mem- professor per se- declining across in North Carolina. Nor bers at a Pope Center lun- mester. both public and private universities. are they likely to be as cheon last month. Citing As indicated in the table below, The issue is not going to go away, comfortable with the left- a number of new studies, Schalin used two different methods to partly because the University of North wing thinking so typical of North she pointed out that students at estimate the number of courses taught Carolina relies on what is called the Carolina campuses. More of them even the most famous universities per semester. Method 1 counted each “Delaware Study” methodology in cal- are also likely to be fiscal conserva- are failing to get a solid education. course, regardless of the number of culating class load. It includes a broad- tives, and thus more willing to cut Yet average tuition has gone up students enrolled. Method 2, a more er range of activities (such as labora- unnecessary expenditures. nearly 300 percent since 1990. stringent measurement, counted only tories and recitations as classes) than North Carolina’s board is one Thus, the Board of Gover- courses with at least 3 students en- does the Pope Center study. of the most powerful university nors has a strong motive to find rolled. In any case, as faculty teach fewer governing boards in the United out what students are learning at Recently, economist Andrew Gil- courses, more of them are needed to States. Given its broad authority, UNC campuses and how much len looked at national data and came handle the students who are enrolled. one might expect the UNC Board of that learning costs taxpayers and up with similar findings for the na- Wrote economist Richard Vedder, in Governors to be an activist orga- students. tion’s universities as a whole — that is, his 2004 book Going Broke by Degree, nization that reviews academic And two initiatives suggest teaching loads are not very high. In ad- “Very significant savings in instruc- quality and assesses the system’s that the board may actually do dition, they have declined significantly tional costs are possible from increas- efficiency. Yet, traditionally, the that. One is a study of duplication over the years. ing teaching loads.” CJ board has not been known for ag- of academic programs, headed by Historical data from the National gressiveness. former UNC-Charlotte chancellor Postsecondary Faculty Survey showed • A 2005 study for the Pope Jim Woodward. that teaching loads fell between 1988 Jenna Ashley Robinson is outreach Center by the American Council The other is a plan to look at and 2004, and they fell at every type coordinator for the John W. Pope Center of institution, including community for Higher Education Policy (popecenter. of Trustees and Alumni reported: faculty workloads. While this could colleges. For example, at research uni- org). “The Board has not shown the abil- end up as a smokescreen, it also ity to set its own agenda and decide has the potential to be significant. its own priorities for action. As a The public wants to know how consequence, the Board’s work is many classes faculty are teaching in reactive rather than proactive.” return for their state salaries. • A year later, the North These small ventures could be Carolina Center for Public Policy a positive beginning for a serious Research observed that the board Board of Governors. The board had ”not fully utilized” two of its could provide leadership for a uni- powers: its “authority to terminate versity that needs careful scrutiny unnecessary academic programs” and significant change. CJ and its power to plan strategically for the future. Jane S. Shaw is president of the • During the tenure of John W. Pope Center for Higher Educa- system President Erskine Bowles, tion Policy (popcenter.org). PAGE 18 SEPTEMBER 2011 | CAROLINA JOURNAL Higher Education Campus Briefs UNC Health Care System Just Keeps on Growing n late July, the trustees of Peace College, a small women’s col- By Duke Cheston lege in Raleigh, announced Contributor plansI to rename the school Wil- RALEIGH liam Peace University — and to n early May, WakeMed Health and admit men to all its undergradu- Hospitals made headlines by offer- ate programs for the first time in ing to buy Rex Healthcare from the the school’s 154-year history. The UniversityI of North Carolina Health announcement evoked substantial Care System. WakeMed is Wake Coun- ty’s largest hospital network, and Rex debate. is its second-largest. Debra Townsley, who be- UNC officials initially said that came president of Peace a year ago, Rex was not for sale, but later formed a says the changes are necessary for committee to study the issue. Among the 600-student private school be- other reasons, WakeMed is seeking Rex What started as a state-run medical school has morphed into a statewide, state-owned cause its revenue model depends in order to stop what it views as un- comprehensive health care organization. (UNC photo) heavily on tuition and enrollment. fair competition from a government- According to Townsley, tu- owned entity in Wake County. tion line,” UNCHCS vice president of leaves significant gaps in transparency. ition accounts for more than 80 The controversy over the bid public affairs Karen McCall told the For instance, it is unclear how $62.4 percent of revenue at Peace, its sheds light on something that has been Pope Center. “As the state of North million has been spent. That amount endowment generates about 11 largely ignored — the rapid growth Carolina continues to grow, so too will was listed as “Health Care System percent, and unrestricted annual of the university’s health care system. the UNC Health Care System so that Assessments” in last year’s audit of fundraising generates about 2 per- What started in the 1940s as a state- we will be able to continue to fulfill UNC Hospitals (the part of UNCHCS cent. run medical school that added on a each of the three parts of our mission.” located in Chapel Hill). Dennis Patter- WakeMed officials complain that son of the state auditor’s office told the The board also cited evidence teaching hospital has morphed into UNC Health Care is growing rapidly Pope Center that the funds went to the that only 2 percent of female stu- a semi-autonomous medical/hospi- tal/research apparatus that stretches because of government handouts. For Health Care System Enterprise Fund, dents will even consider attend- example, UNCHCS is receiving $18 but “we do not audit the Enterprise ing a women’s college — vastly throughout a significant part of the state. million this year (fiscal 2011-12) from Fund, so we cannot say specifically shrinking the pool of possible stu- the state for indigent care, the medi- where those funds are expended.” dents. UNC claims it is just fulfilling its three-part mission of research, teach- cal treatment of those who can’t pay. When asked about the funds, Mc- Charles Duncan, a faculty Private hospitals do not receive similar Call responded that the money would member at Peace College, defend- ing, and service. But the rapid growth and other controversial activities, like subsidies. go “to build the clinical and academic ed the changes in the Raleigh News the health care system’s recent trans- Another complaint is that UNC programs we develop throughout the & Observer, citing budget woes: fer of $20 million to UNC-Chapel Hill Health Care is not very transparent. system to serve the people of North “The sad truth is that … over the and its more than $700 million in unre- Rex, for example, is a private hospital Carolina.” In other words, funding last 12 years (not including this stricted reserves — raise an important controlled by a state agency. That gives more expansion. But how much mon- one), the percentage of our bud- question: What are the limits to that it public status when it is opportune: It ey was distributed to which locations get spent on academics has been mission? does not have to file 990 forms, disclo- is unclear, and without an audit of the reduced by almost half. Although The UNC Health Care System sure documents the IRS normally re- entire system, it may never be clear. I believe the faculty and staff here (UNCHCS) came into being in 1998 quires of private nonprofit entities. But Without limits on UNC have worked overtime to provide when, by an act of the General As- it is private when convenient, as when Health Care’s growth, it is unclear a high-quality education for our sembly, UNC Hospitals (the various it avoids the Umstead Act, a state law where state control of health care students, doing so was becoming hospitals affiliated with the UNC-CH prohibiting state agencies from com- will stop. CJ more and more difficult.” campus) and the clinical programs of peting with private groups. Duke Cheston is a writer and report- But not everyone agrees with the UNC School of Medicine merged. Further, the state auditor does not audit UNCHCS as a unit. Individ- er for the John W. Pope Center for Higher the changes. Among the oppo- Since then, UNC Health Care has been ual hospitals are audited, but this still Education Policy (popecenter.org). nents are three past presidents of expanding rapidly, building and pur- Peace, including Laura Carpenter chasing an array of hospitals and clin- Bingham, who ended her 12-year ics. term in 2010. They explained their Prior to the 2000 purchase of a disagreement with the decision controlling interest in Rex Healthcare, very publicly, with a guest column however, UNC Health Care had been in the News and Observer, saying, limited to the main campus in Chapel “The culture and quality of Peace Hill and a number of research centers. have been precipitously disman- The acquisition of Rex meant that the tled.” University of North Carolina system Some donors are ending their was no longer merely a university sys- long-term support of the school. tem. Philanthropy Journal interviewed And that expansion has not been limited to Rex (which now encom- several formerly generous alum- passes the main hospital in Raleigh, nae who plan to end their annual five branch campuses, four “wellness giving to the school. centers,” two “rehab & nursing cen- Alumnae also object to the ters,” two cancer centers, and many secrecy surrounding the decision. small practices). Other expansions of There is even an alumnae-based the UNC system include the purchase group dedicated to opposing the of a third hospital system in Chatham recent changes: Preserving Peace County in 2008, the construction of the College’s Legacy. CJ women’s and children’s hospitals in 2002, the construction of a new hospi- Compiled by Jenna Ashley Rob- tal in Hillsborough, and the magement inson, outreach coordinator of the takeover of Pardee Hospital in Hen- John W. Pope Center for Higher Edu- dersonville. cation Policy (popecenter.org). And there are no plans to stop. “I don’t have a specific demarca- SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 19 Higher Education Opinion Universities’ ‘Legislative Liaisons’ Just Lobbyists by Another Name he word “lobbying” can conjure therefore higher is considered an persed costs.” That is, most govern- up some pretty negative images, taxes? agency in this ment expenditures benefit a small, se- such as industrial fat cats plying The Uni- Issues case. As a result, lect group of highly interested people, governmentT officials with expense- versity of North the UNC system while the costs are dispersed among account goodies to grease their way to Carolina system is in potentially could everyone who pays taxes. The few big subcontracts, tax breaks, or favor- a prime example of Higher Education field a team of as who stand to gain a lot from a budget able regulations. this phenomenon. many as 38 people increase are more vocal than the many, But such lob- A spokeswoman whose jobs are at who pay only a small amount for each byist stereotypes for the system’s least partially cen- expenditure and therefore feel less may not be the General Adminis- tered on lobbying urgency to press their case. biggest threat to tration has insisted the state govern- Some level of lobbying is neces- taxpayers’ wallets. that UNC hires no lobbyists. But this ment. The secretary of state’s website sary; maintaining access to legislators Incidents like the is merely a matter of semantics. North lists 20: two from the system’s General for constituents, citizens, and inter- direct purchase Carolina General Statute 120C-500 Administration, and one for each of ested parties is without question a of favors with declares that the 16 universities, the School of Sci- must for a free society. Legislators also cash (which sent [A]ll agencies and constitu- ence and Math, and UNC Healthcare. need experts to provide them with Jim Black, former JAY tional officers of the State, including Certainly, not all of the liaisons information — they often need people speaker of the SCHALIN all boards, departments, divisions, con- are lobbying the state full-time. In fact, representing government agencies at North Carolina stituent institutions of The University for some, it is a relatively small part of committee meetings to provide that House of Repre- of North Carolina, community colleges, their jobs. But others are at the legisla- knowledge. sentatives, to jail) and other units ture almost every Yet, as a result of lax and unclear tend to be relatively rare. It’s not al- of government day it is in ses- lobbying regulations and enforcement, ways money and favors from outside in the executive sion. And while the Legislative Building takes on a car- of government that cost taxpayers the branch shall UNC potentially the salaries of the nival atmosphere during a legislative most — sometimes it’s influence and designate liaison state’s contingent session that is not always conducive pressure from within that does the personnel to could have of legislative to good legislation. most harm. lobby for legisla- as many as liaisons — at least Next year’s short session may Inside North Carolina’s govern- tive action. $2,387,323 in all — be a good time for the legislature to ment, agencies have their own lobby- The job 38 people are costly, the big- perform a comprehensive review of ists, called “legislative liaisons.” Their description for the ger expense is the lobbying laws that doesn’t just nibble job, when pared to its core function, is main legislative li- lobbying for it increase in state around the edges but shows some to fight to keep department budgets aison for the UNC budgets that oc- teeth. Especially since all this pres- high, raising a serious question: Why General Admin- curs due to their sure is not without effect. Legislators, are North Carolinians taxed to pay istration — who lobbying efforts. like everybody else, are susceptible to the salaries of people whose primary was a registered lobbyist immediately The problem stems largely from impassioned arguments. As a result, function is to convince legislators and prior to working for the university the fact that, while state agencies press there is a natural tendency for bud- administrators to spend more of their system — says that she “works closely legislators hard for more funding, al- gets — and therefore taxes — to rise, (the taxpayers’) money? with the North Carolina General most no one, other than the legislators except under the most dire conditions, It is a question of basic fairness: Assembly, the Executive Branch, and themselves, speaks for the taxpayer. even against the wishes of the people Since it is in the interest of the tax- related staff to advocate for university Perhaps the best explanation for this who pay for it. CJ payer to pay low taxes, is it right that priorities.” imbalance in influence comes from taxpayers should be forced to pay the While the statutes limit the the economic theory of public choice. Jay Schalin is director of state policy salary of someone who will lobby for number of liaisons for each govern- Government spending tends to have for the John W. Pope Center for Higher greater government spending, and ment agency to two, each UNC entity “concentrated benefits” and “dis- Education Policy (popecenter.org). PAGE 20 SEPTEMBER 2011 | CAROLINA JOURNAL Books & the Arts

From the Liberty Library Book review

• Is benevolence a virtue? In many cases, yes. But when it comes McCullough’s ‘Greater Journey’ Another Great Read to the “enlarged benevolence” of • David McCullough, The Greater Journey: Americans in Par- Paris was known as the “City of Light.” No other city the Enlightenment, David Stove is, New York: Simon & Shuster, 2011, 558 pages, $37.50. offered as much in the way of education in the arts and in is skeptical. In his insightful book medicine. The travelers would be thrilled with the Louvre, What’s Wrong With Benevolence?, By Melissa Mitchell but seeing the Garden of the Tuileries with its, as Cooper Stove builds a case for the claim that Contributor noted, “little or no drapery,” was shocking. when benevolence is universal, dis- RALEIGH The cast of travelers is long and reads like a who’s interested, and external, it regularly ow in his 80s, David McCullough once again has who of American artists, writers, and notable physicians. leads to the forced redistribution of produced an outstanding historical account of McCullough provides his usual in-depth look at each in- wealth, which in turn leads to de- American and French history. In his latest book, The dividual traveler. Morse the inventor is just one of the creased economic incentives, lower GreaterN Journey: Americans in Paris, McCullough chronicles many people whose personal stories are revealed through rates of productivity, and increased the stories of a group of eclectic Americans who traveled to McCullough’s research. Renowned for his painting of La- poverty. Paris between 1830 and 1900. From the moment they step fayette, Morse would travel to Paris and undertake a 6-by- As Stove points out, there is an onto the boats, McCullough provides an in-depth look at 9-foot painting depicting a room containing many of the air of paradox in saying that benevo- the individuals undertaking famous works displayed at lence may be a cause of poverty. But the dangerous journey to live the Louvre, only to become there shouldn’t be. Good intentions in Paris. True to his method so discouraged at not being alone never are sufficient to guaran- of presenting historical infor- chosen to depict one of the tee the success of one’s endeavors. mation, McCullough does not historic panels at the capi- Utopian schemes to reorganize the just look at the individuals; tal that he gave up paint- world regularly have ended in fail- he gives the reader a detailed ing. McCullough points out ure. More at www.encounterbooks. history of the events that are that had “he not stopped com. shaping America and Paris painting when he did, no during these years. successful electromagnetic His eclectic groups of telegraph would have hap- • America is in crisis. Our na- travelers were artists, doctors, pened when it did.” tional debt is more than $14 trillion, and writers that came from When it came to medi- we just crashed through another almost all of the 24 states of cine, Paris was considered debt ceiling, and all Washington that time. Most were “young the most notable place to knows how to do is spend, borrow, men in their 20s, well-educat- gain knowledge about ev- tax, repeat. ed, and reasonably well off,” ery area. But readers will So how can we avoid economic writes McCullough. Some be shocked when they learn Armageddon? How do we force fis- were older, including James that the eminent surgeon cal responsibility on Congress? By Fenimore Cooper, author of Guillaume Dupuytren used doing what our Founders would do: The Last of the Mohicans; Sam- no anesthetics when do- Adopt a balanced budget amend- uel F.B. Morse, painter and ing amputations and other ment. inventor of the telegraph and surgeries, nor did he wash his hands or sterilize instru- So says U.S. Sen. Mike Lee, Morse code; and Emma Wil- ments, so most patients died R-Utah, in his timely new book The lard, founder of the Emma Willard’s Troy Female Semi- from infection. But French Freedom Agenda: Why a Balanced Bud- nary, who was a strong advo- women, unlike American get Amendment Is Necessary to Restore cate for providing higher edu- women, saw no problem Constitutional Government. More at cation for women in America. with being examined and www.regnery.com. The joy of arriving in talking about their symp-

France was coupled with the toms, giving the American shock of how old everything students the advantage of a • Environmental regulations looked compared to the new- vast wealth of information aren’t always about environmental ness of the buildings in young about female maladies. protection. Today, more than ever, America. On the overland The years between regulations seem to have been trip to Paris, the cathedral at 1830 and 1900 in Paris, as in designed by activists, rather than Rouen was like nothing any of them had ever seen before. America, would see a multitude of changes. But as bloody scientists. Regulators Gone Wild by The site caused Cooper to remark that the “common feeling as the American Civil War was, nothing would match the Rich Trzupek is the shocking inside among them was that it had been worth the trip across the bloody wars and uprisings Paris experienced. One of the story of how the green movement Atlantic if only to see this.” worst was the 1871 uprising. McCullough uses the exten- and big government have united Undertaking the journey to Paris was not an easy one. sive writings from American Ambassador Elihu B. Wash- to stifle American productivity and Most had never been to sea, nor did they speak French. The burne’s diary to illustrate the horrendous, shocking events hamstring American innovation — ships were at the mercy of the wind, and the journey took that pitted Parisians against Parisians. The 1871 uprising not by design, but as the inevitable more than a month. By 1838, the steam engine would re- was a bloodbath, and major parts of the city were burned consequence of pursuing a uto- duce the journey to 17 days and enable passengers to enjoy to the ground. pian vision of environmental purity. luxury travel. Accounts of how the rocking ship required David McCullough’s books are not a quick or an easy As a respected scientist and everyone to grab plates and dinnerware on the tables are read, andThe Greater Journey is no exception. The cast of char- consultant, Trzupek has seen the humorous, but the accounts of seasickness are not. acters and historical information are extensive and detailed. EPA lose its focus on cleaning up One of the unique writing techniques that McCullough However, like his other books, his approach is so engaging the environment, turning instead to uses is to give physical descriptions of the individuals he that you do not want to put the book down. It leaves the mindless bureaucracies and sweep- is profiling. For example, he writes that they were “of all reader wanting to know more and read more of the works by ing policies with negligible envi- shapes and sizes. Oliver Wendell Holmes was a small gen- writers like Oliver Wendell Holmes, Victor Hugo, and James ronmental impact. Meanwhile, the teel smiling man … five feet three inches,” while his friend Fenimore Cooper. I found myself longing to go to Paris and green industry continues to exploit Charles Sumner “stood a gaunt six feet two.” In another sig- see the Louvre. Samuel Morse’s painting done at the Louvre bad science to sell the public on its nal aspect of his writing, McCullough provides pictures of is hanging at the National Gallery through July 2012, and I aggressive agenda. Learn more at people and places, allowing readers the luxury of seeing the plan to go to Washington, D.C., to see it. Once again, David www.encounterbooks.com. CJ physical characteristics of the people and the places he is McCullough has produced a great work of historical signifi- describing. cance that is worth taking the time to read. CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 21 Books & the Arts Look Closer to Home, Rather Than Washington, For Solutions ll the name-calling, finger volunteer time to national campaigns you are competing exactly in the way Saving a splintering movement, pointing, deal making, and than to state or local races? Research your opponent prefers. Participa- Carrie Chapman Catt, a brilliant hollow sound bites during the shows that Americans pay far less tion in state and local elections seems strategist known as “The General,” recentA debt-ceiling debate led me to attention to state and local elections intuitive to me. It’s at these levels that suggested her “Winning Plan” in 1916. conclude this: If Americans keep look- during nonpresidential election years. one can have significant influence on It was an effort to work at the state ing to Washington for all the answers, But when presidential candidates are both politics and decisions that affect levels and accept even partial suf- we shouldn’t ex- ramping up for the upcoming elec- daily life. frage in states that resisted wholesale pect anything bet- tion, Americans are more attuned to Recall, also, that isolated victo- change. Her goal: If enough states ter from politicians current events and are hoping that the ries at the state and local levels can granted women the vote, ratification who seem more next president can provide answers fuel widespread momentum. Consider of a constitutional amendment was worried about the for our economic woes. (Since when the suffragette movement of the early possible. 2012 election than so much responsibility was given to 1900s, and, in particular, the National Victory was possible, too, if the nation’s future. one person in our representative gov- American Woman’s Suffrage Associa- women in states allowing suffrage But we ernment, I can’t tell you.) tion and its state-by-state approach. influenced their representatives to shouldn’t give up If you want a more responsive Before the 19th Amendment pass a constitutional amendment. entirely on the government, paying sole attention to passed in 1920, women voted in 15 When New York passed a women’s political process. who’s in charge at the nation’s capital states. In the West, where the rigors of suffrage referendum in 1917, national It’s time to pay TROY is foolhardy. It’s like an overconfident frontier life made society more egali- opinion was more sympathetic to the more attention to KICKLER taller boxer fighting a shorter man’s tarian in many ways, by 1871 women issue. By 1920, the 19th Amendment the state and local fight, or a slower basketball team with gained the right to vote in two states had passed. levels, so our voices can be heard. few substitutes running a full-court (Wyoming and Utah). By 1900, Colo- Catt knew that a “bottom-up” Our frustrations stem from the press against an up-tempo opponent. rado and Idaho had granted women’s approach would work best. Today’s fact that many Americans — of all po- The boxer should avoid fighting suffrage. And by 1918, women voted activists could learn from her exam- litical stripes — believe in top-down with another’s preferred style, and a in 11 more states. ple. It’s time for Americans to stop fo- solutions originating from Washing- basketball team should plan to force NAWSA had numerous state and cusing all of our political attention on ton. Even if we say otherwise, our ac- its will on the opponent to play at its local chapters and published hand- Washington and devote more energy tions prove it to be true. We generally preferred pace. books on how to organize at the grass- to state and local politics. CJ consider the national government and The same concept can be ap- roots level and influence local matters. its offices to be more important. plied to the political process. If you In time, impatient and disenchanted Think about it. How many of us want a more responsive government, suffragettes who worked strictly for Dr. Troy Kickler is director of the who want a more responsive govern- yet concentrate all your effort on tak- a federal constitutional amendment North Carolina History Project (northcar- ment are more willing to contribute or ing political control of Washington, adopted more militant tactics. olinahistory.org). Stay in the know with the JLF blogs Visit our family of weblogs for immediate analysis and commentary on issues great and small www.JohnLocke.org YOUR HOME ON THE WEB FOR The Locker Room is the blog on the main JLF Web site. All JLF employees and many friends of the foundation post on this site every day: http://www.johnlocke.org/lockerroom/ NORTH CAROLINA PUBLIC POLICY Creating your own personal Key Account at www.JohnLocke.org is a great starting place for tracking the critical public policy issues facing North Carolina.

The Meck Deck is the JLF’s blog in Charlotte. Tara Servatius blogs on this site and has made it a must- read for anyone interested in issues in the Queen City: http://charlotte.johnlocke.org/blog/ Each day, your Key Account searches a comprehensive database of JLF reports, briefing papers, news articles, press releases, and events notices to display timely information about the issues of your choice. It’s an excellent tool for those drafting legislation, researching Squall Lines is the JLF’s blog in Wilmington. A group of JLF staffers and coastal friends keep folks on the coast updated on issues facing that region of the state: http://wilmington.johnlocke.org/blog/ policy issues, preparing news stories, planning political or lobbying campaigns, or seeking information with which to be an informed voter and citizen.

Piedmont Publius is the JLF’s blog in the Triad. Greensboro blogger and writer Sam A. Hieb mans the controls to keeps citizens updated on issues in the Triad: http://triad.johnlocke.org/blog/ Visit www.JohnLocke.org and create your personalized Key Account today!

The Wild West is the JLF’s blog in Western North Carolina. Asheville’s Leslee Kulba blogs in this site, designed to keep track of issues in the mountains of N.C.: http://western.johnlocke.org/blog/

The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 22 SEPTEMBER 2011 | CAROLINA JOURNAL Books & the Arts

Short Takes on Culture Book review A Patriotic Superhero Ridley: ‘Dare to Be an Optimist’ • “Captain America: The First ity in the United States with specific • Matt Ridley, The Rational Optimist: earned more money, ate more calories, Avenger” regard to the American church. How Prosperity Evolves, New York: lost fewer children, had longer lives, Directed by Joe Johnston He illuminates the hypocrisy HarperCollins Publishers, 2010, 420 and were more literate. He says it is Paramount Pictures of churches and other faith-based pages, $26.99. hard to find any region on the planet organizations that have failed to see that is worse off in 2005 than it was in n the movie “Captain America: the needs of those around them. By By George Stephens 1955. He notes that the middle class of The First Avenger,” a young sharing different stories of his experi- Contributor 1955, which had cars, comforts, and American from Brooklyn, N.Y., ence in seminary and early years as a RALEIGH gadgets, would today be described as I becomes very powerful through an pastor, Platt reveals how so many have he message of this book is: Be “below the poverty line.” experiment and heroically fights missed out on the countless opportu- optimistic about the future. The What is the cost of progress? The Nazis in World War II. nities to help the world around them. reason we should remain opti- environment is being degraded some- The timing for a patriotic super- Platt’s detailed anecdotes of misticT is the past. where, perhaps in Beijing. But in many hero movie couldn’t have been better. churches in China, South Korea, and The liberal intelligentsia argue other places, it is not. Europe and The need to embrace allegiance to the Sudan that serve their neighbors pro- that we soon will reach a turning point, America are becoming cleaner all the United States is high, and this movie vide lessons to be learned. In addition and things will start to get worse. They time. promotes that. to stories of churches throughout the have been saying this for ages. Each However, the pessimists are Chris Evans, the person portray- world, Platt shares tales of college generation believes that the end of ever at work. In 1914 the U.S. Bureau ing Captain America, fit the role per- students, middle-aged businessmen, progress has finally come, and it must of Mines predicted that oil reserves fectly. He has a strong, all-American stay-at-home moms, and retirees who save mankind with radical measures. would last 10 years. President Jimmy look. Being a super soldier, there are have given their lives to full-fledged However, millions of minds Carter announced demand for oil not many signs of weakness in him. service. working in the market devise new would overtake production by the end His shield deserves a lot of credit, too. Radical takes a second look technologies, new of the 1980s. Yet by So many times he uses the shield in at the pursuit of happiness, procedures with 1990, unexploited a variety of ways to dispose of his and Platt challenges the reader which to cope, to reserves amounted enemies. to a “radical experiment” filled improve, to inno- to 900 billion bar- The action is entertaining. Cap- with faith, hope, and service. vate. The debacle rels of oil, and there tain America’s fights with Germans — JONATHAN MARTIN never happens. Pes- are huge shale gas stirs up some on-screen violence, but simism is not new, finds. the movie isn’t too gruesome for a nor is rational opti- C o n s i d e r wide range of audiences. • Plant Delights Nursery mism. Englishman what can be done Most of the weapons utilized by www.plantdelights.com Matt Ridley quotes with discretion- the Germans seem too futuristic for Raleigh, N.C. Thomas Babington ary income to pur- World War II, and perhaps even today. Macaulay, British chase, for example, This may appeal to some audiences, Located at 9241 Sauls Road in poet, historian, and but it may leave some thinking about Raleigh, Plant Delights Nursery is a Whig politician of lighting. An hour of the CGI animation. From a critic’s delight to visit. The nursery’s mission the early 19th cen- work today earns point of view, the ending of “Captain statement says, “Started in 1988, the tury, who asked: 300 days’ worth of America” was slightly abrupt and goal of Plant Delights Nursery Inc. is “On what principle reading light. In unexpected — not well done. to change the way America gardens by is it, that when we 1800 it earned 10 Overall, the movie “Captain offering the best, the newest, and the see nothing but im- minutes’ worth. America: The First Avenger” gets two strangest fun, garden-worthy peren- provement behind Similar statistics thumbs up. A film like this couldn’t nials to gardeners around the world.” us, we are to expect support the points have been nearly as spectacular even Although it is a mail-order nothing but deteri- Ridley makes. a decade ago. We have technology nursery, owner Tony Avent opens his oration before us?” In the 1990s, to thank for that. The positives out- doors several times a year and allows Ridley finds economist Paul weigh the negatives by a good mar- visitors to walk through the nurs- life getting better and explains how Romer espoused a gin. America needs an all-American ery’s beautiful lush gardens. There and why. He is author of books on evo- “new growth theory.” He saw that in- movie. is a southwestern garden, which has lution, genetics, and society that have novation, which is limitless, was a type — JOSH LAWSON hundreds of examples of cactus and sold more than 800,000 copies. “Ratio- of investment and applied knowledge desert-loving plants. nal optimism holds that the world will was a product. The education center offers a pull out of the current crisis because Yet many elites continue preach- • Radical: Taking Back Your Faith from variety of workshops for gardeners, of the way that markets in goods, ser- ing pessimism even in the absence of the American Dream but the nursery is not just for garden- vices, and ideas allow human beings to evidence to support it. Economist Ju- By David Platt ers. Bird watchers and photographers exchange and specialize honestly for lian Simon said the world would con- Multnomah Books will love the gardens. When I visited, the betterment of all,” he writes. “So tinue getting better and better. He was the gardens were full of local photog- this is not a book of unthinking praise castigated, but there was no significant In this challenging book, pastor raphy club members taking pictures or condemnation of all markets, but it error in his work. Bjorn Lomborg’s The David Platt turns faith, the church, of the nursery’s unusual summer is an inquiry into how the market pro- Skeptical Environmentalist contains no and service upside down. Platt tests flowers. cess of exchange and specialization is significant errors, but he was tempo- the pursuit of the American dream Along with remarkable plants, older and fairer than many think and rarily “convicted” of scientific dishon- against simple living and assisting the nursery has a unique feature: a gives a vast reason for optimism about esty by the Danish National Academy the poor and downtrodden. waterfall. Visitors can walk under the future of the human race. Above of Sciences and given no opportunity Spending habits of politicians, the waterfall and find a stone seat to all it is a book about the benefits of to defend himself. corporations, and citizens have pro- sit on and read or just listen to the change.” The Rational Optimist takes in all duced mounting problems for the falling water. The Rational Optimist is rich with of human history. It asserts that be- United States. Unsustainable con- The Plant Delights Nursery will examples that also enliven the text for cause of the capacity of the human race sumerism, bailouts, and handouts open it doors again in September, the reader. For example, since 1800 the to innovate, even though disasters will breed overindulgence and a lack of which is the perfect time to visit this world’s population has multiplied six occur, the future will enhance human responsibility for the sick, hungry, and delightful gem. times, yet average life expectancy has prosperity and natural biodiversity. orphaned. Platt confronts the dispar- — MELISSA MITCHELL CJ more than doubled, and real income Ridley challenges everyone to has risen more than nine times. People “dare to be an optimist.” CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 23 Books & the Arts Movie review ‘The Help’ a Powerful Story of Personal Courage and Perseverance • “The Help,” Directed by Tate Taylor, Jackson is abuzz with gossip and cu- Touchstone Pictures, 146 minutes, re- riosity. As insurance against their crit- leased Aug. 10. ics, Skeeter and her allies included several extremely embarrassing an- By John Calvin Young ecdotes. While the leading families Contributor profiled might not want to own up to RALEIGH them publicly, the book soon results in n the middle of summer block- private vendettas against the author buster season, director Tate Taylor and her friends. Even more than the presents a thought-provoking and Holbrooks, Jackson is ruled by fear, on Isympathetic story of courage, fear, and both sides of the tracks — fear of dis- personal sacrifice in the South during missal, fear of the unknown, fear of vi- the civil rights period of the 1960s. olence, fear of legal repercussions and Based on the novel of the same condemnation and loss of social stand- name by Kathryn Stockett, “The Help” ing. As the tension in Jackson worsens explores the complex social rules and and the civil rights movement comes undercurrents of racial tension in 1963 to a head, each of the women will have Mississippi through the intensely sym- to draw courage from their friendships pathetic characters of the local women and stand up for themselves, each oth- who are employed as maids, cooks, From left, Emma Stone plays Skeeter, Octavia Spencer plays Minny, and Viola Davis er, and for what they know is right. and nannies in the homes of Jackson’s plays Aibileen in Tate Taylor’s “The Help.” (Photo from thehelpmovie.com) This film deals very frankly with elite, and the young writer who wants women who serve as cooks and maids mother’s cook, the endlessly compe- some distressing, but important, as- to tell their stories and struggles to the in Jackson have to deal with, and de- tent and independent Minny Jackson pects of American history and poli- world. cides that their stories ought to be told. (Octavia Spencer). Hilly’s pet project tics. Due to frequent profanity, some The story opens with young Mississippi’s harsh Jim Crow statutes is separate bathrooms for whites and violence, and extensive racial epithets “Skeeter” Phelan (Emma Stone), a so- threaten anyone who would promote blacks, and she is promoting a bill re- and unspoken intimidation, some cau- ciety girl returning home with a degree social equality publicly, however, and quiring all households with “colored” tion may be advisable in showing the from Ole Miss, applying for a job at the the rising tide of anti-civil rights vio- staff to construct a separate outside film to children, but teens should be Jackson Chronicle as a stepping-stone lence frightens away potential con- bathroom for their employees. able to handle it, although family dis- to a larger writing career. She wins tacts. Skeeter writes a powerful chap- Skeeter’s own family isn’t devoid cussion may still be helpful in explain- an entry-level position writing the lo- ter based on the stories she has, but of tension. While she was away at Ole ing the historical context. There are a cal household advice column, despite without more interviews, her editor Miss, Constantine, the Phelans’ elderly few rather disturbing, disagreeable, or her lack of any experience running refuses even to consider her book. maid and Skeeter’s own childhood emotionally charged scenes, including a household, and resolves to ask her Skeeter finds snobby Jackson high friend and confidante, left her family one in which a woman suffers an ex- friend’s family cook, Aibileen Clark society awkward, with every party and mysteriously and without even saying tremely bloody miscarriage and buries (Viola Davis), for help with the letters charitable league and event managed goodbye. Skeeter is determined to dis- the baby herself, and another in which and questions at the first opportunity. by the patrician Hilly Holbrook (Bryce cover why her friend had to leave, but Aibileen and another black maid are As she discusses the household Dallas Howard). Miss Hilly harbors her mother refuses to talk about it, pre- handled roughly by white police of- column and daily life with Aibileen, incredible disdain for everyone who ferring instead to obsess over Skeeter’s ficers in the process of making an- ar Skeeter is forced to notice the hostile doesn’t meet her social standards and lack of suitors. rest. Although there is little graphic in daily environment the many black expresses outright disregard for her Matters come to a head in Jack- the film aside from those two scenes, son when Minny is fired by Hilly for much of the film’s verbal content still using the indoor bathroom during a will need to be explained to younger Books authored By JLF staFFers terrific rainstorm. Blackballed by the viewers. Holbrooks, she fails to find work and The wider civil rights context of Selling the Dream struggles to feed her family. Outraged, 1963 is not explored very deeply on- all of Minny’s friends resolve to tell all screen, aside from the murder of Med- Why Advertising is Good Business and let themselves be interviewed for gar Evers in Jackson and a few televi- Skeeter’s book. sion broadcasts. That said, part of the Desperate for work, and dealing value of this film is that today’s youth with her abusive boyfriend, Minny have grown up with no direct knowl- finally lands a job working for Celia edge of the civil rights movement. See- Foote (Jessica Chastain) — a coun- ing this film may spark a healthy curi- try girl married into high society and osity about the period. ostracized accordingly by Hilly and “The Help” explores a difficult By John Hood her social circle. Lost in the intricate and challenging period of our nation’s President of the politics of a social class she was never history with grace and balance, telling John Locke Foundation trained for, Celia doesn’t know any- a powerful story of personal courage thing about managing a large house- and perseverance in the face of igno- “[Selling the Dream] provides a hold, or how to maintain the “proper” rance, misunderstanding, discourage- fascinating look into the world distance between the mistress of the ment, and outright condemnation. of advertising and beyond ... house and her staff. Minny has been Despite an emotionally challenging Highly recommended.” hurt badly and finds it hard to trust, ending that leaves the viewer on a dif- Choice but soon enough, both women find in ficult down note, “The Help” provides April 2006 the other the true friend they desper- a thought-provoking and ultimately www.praeger.com ately need. heartwarming alternative to the sum- When the book is published, all mer’s typical blockbuster fare. CJ PAGE 24 SEPTEMBER 2011 | CAROLINA JOURNAL Opinion

COMMENTARY Some Memos To Government here’s nothing more frustrat- mountains. But arbitrary rules ing than being stuck behind a prevent EBCI from pursuing its vehicle that unduly impedes business plan without the approval progressT for the string of cars be- of the state. In June, a University of hind it. North Carolina at Chapel Hill study, I don’t appreciate being forced funded in part by EBCI, concluded to drive slowly simply because the that Harrah’s Cherokee Casino is guy in front of me is unsure of him- worth $380 million to the western self and wants to impose his driving economy. So other than the rule it- rules on me. I’m comfortable negoti- self, what is the practical and moral ating the road and taking responsi- difference between gambling that bility for what I do behind the wheel. uses people to deal the cards and I view the role of government gambling via electronic gizmo? the same way. I expect to take care Memo to the state: Just get out of myself and be held accountable of the way, please. for my actions. I want government Smaller and less flashy indus- EDITORIAL to step in only to accomplish things tries face equally illogical impedi- I can’t reasonably be ments called occupational expected to handle on my licensing. As Sara Burrows Jobbing the own. detailed in the July issue of For example, secure Carolina Journal, a range of the homeland, support bills in the General Assem- Job Stats the disabled and aban- bly would impose barriers doned, lend a temporary on trades and craftspeople n late August, the state Employ- and business establishments. hand to those trying to seeking to make a living. ment Security Commission report- Given the wide discrepancies in get back on their feet, Let’s say you’re a ed that North Carolina’s unem- jobs reports, and the ways they can and administer narrowly musician who wants to ploymentI rate fell slightly, from 10.4 be manipulated to satisfy political focused regulations that DONNA offer musical therapy percent in June to 10.3 percent in July. agendas, it’s important to remember protect public health and MARTINEZ treatments to the elderly. Local education employment rose by that a single month’s report is merely safety. House Bill 429 would 2,900 over the past year, from 129,400 a snapshot, often a fuzzy one, of an In short, the best require you to obtain a in July 2010 to 132,300 this July. ever-changing employment market. thing government can do license before playing Even during a recession and not- Besides, the information in is routinely get out of the way and one comforting note. As Burrows withstanding a tight budget climate in any release will be revised, perhaps let us pursue our dreams as fervent- reported, Queens University music Raleigh, the employment level at K-12 significantly, perhaps negating any ly or nonchalantly as we choose. therapy professor Rebecca Engen schools remained steady. conclusions you could draw from the Casino mogul and entrepre- notified the Legislative Commit- Over the past 12 months, local initial data. neur Steve Wynn, CEO of Wynn tee on New Licensing Boards: “It is government employment (including If Perdue really wanted to beat Resorts, recently put into words possible to use music harmfully.” education-related employment) stayed up on Republicans, she could have the essence of my view. During Memo to the state: Just get out fairly stable as well, dropping slightly used an ESC report and noted, from a conference call to discuss his of the way, please. from 348,600 last July to 347,900 last not seasonally adjusted data, that gov- company’s quarterly results, Wynn Not every entrepreneur ac- month — a scant 700 jobs lost. ernment agencies overall lost 77,700 addressed the negative impact of cepts inexplicable rules and regula- Wait, that’s not what you heard? jobs from June to July of this year, overreaching government. tions without a legal fight. Gate City According to news reports, the unem- 70,000 of them in local education. According to the call tran- Billiards Country Club challenged ployment rate rose from 9.9 percent to Then again, that might be an- script, he said in part: the state’s ban on smoking in most 10.1 percent. And 11,000 government other unforced error on her part. The bars and restaurants. jobs were lost, with a majority of those employment numbers drop by tens “[T]his administration is The Guilford County private, cutbacks coming from teachers. of thousands every summer when the greatest wet blanket to busi- for-profit club maintained its right The headline-grabbing numbers schools are not in session. ness, and progress and job cre- to equal protection had been vio- also were from ESC. Gov. Bev Perdue School buildings empty as teach- ation, in my lifetime. And I can lated by the ban, which exempted tried to tout them the day before the ers, custodians, cafeteria workers, bus prove it, and I could spend the private, nonprofit clubs. jobs report was released to the public, drivers, principals, and other employ- next three hours giving you ex- No cigar, said the North telling an audience in Asheville (erro- ees take well-deserved vacations. amples of all of us in this market- Carolina Court of Appeals. A unani- neously) that the unemployment rate Indeed, in every year since 2000, place that are frightened to death mous three-judge panel affirmed a would rise by a full percentage point local education employment has about all the new regulations, our lower court ruling against Gate City. (the actual increase was 0.2 percent), shrunk by at least 20.3 percent from and casting the blame at the budget- June to July. The biggest drop of all — health care costs escalate, regula- Whether or not the owner will ap- cutting, GOP-led General Assembly. 38.2 percent — took place in 2010, the tions coming from left and right.” peal to the North Carolina Supreme The figures Perdue clumsily cited last year Perdue and Democrats were Court is unknown. came from data that were “seasonally in complete charge of state govern- Memo to the state: Just get out In the meantime, I suggest this adjusted” — they were modified using ment. memo to the state: Just get out of of the way, please. a series of estimates based on a guess To be sure, employment bounces the way, please. CJ Here in North Carolina, the of how many people should have been back in the fall, and then some. In Eastern Band of Cherokee Indians working at those establishments in a every year since 2000, overall govern- wants government out of the way, normal economic environment. The ment employment in December has too. EBCI wants to add live dealers report showing a gain of jobs and a been higher than it was in June. and table games to its expanding Donna Martinez is co-host of drop in the unemployment rate was So when you’re hearing about casino operation in the western Carolina Journal Radio. “not seasonally adjusted,” originating government jobs reports, don’t let the from actual surveys of government spin make you dizzy. CJ SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 25 Opinion

EDITORIALS COMMENTARY Government and Jobs Taxes Aren’t Keynesian jobs have no economic value The Problem hen presented with the usual road and the other half are filling in Keynesian drivel about the trench behind them, there is no f you want to understand why and 21 percent of GDP). There was economic stimulus and the value created. The economy takes a the fiscal politics of Raleigh and a brief period of operating-budget standardW left-wing diatribes about deadweight loss. Washington got so heated this balance in the late 1990s, driven government layoffs, many conserva- When government performs its summer,I you have two choices. primarily by Pentagon cuts and dot. tives have responded that “govern- limited responsibilities well, it cre- One is to delve deeply into the com-era tax collections. The dot- ment spending creates no jobs.” ates economic value — and net new details of each proposal to balance bomb recession and 9/11 ended This is incorrect as a matter of jobs. For example, the adjudication of government budgets. I’m certainly both phenomena. economic fact, and unwise as a mat- disputes and the protection of lives not going to dissuade you. For At the current, Bush-era tax North Carolina’s budget, the John rates, federal revenues were at the ter of political rhetoric. To start with, and property create a foundation for Locke Foundation (johnlocke.org) historical norm as recently as 2007. however, we must distinguish be- business confidence, investment, and can offer some handy shovels to dig Economic recovery will, in other tween two different measures: “jobs” job creation. through state government’s major words, bring us back to that level and “economic value.” When policymakers reform programs and revenue without having to jack up There is no question that govern- existing government programs to im- sources. federal tax rates. ment creates a large number of jobs. It prove their effectiveness, or eliminate Another way to But on the spending can tax or borrow money and hire le- ineffective programs altogether, they examine the issue is to side, most of the deficits gions of unemployed people to shovel also maximize economic value and, stay general and concep- projected for the next two dirt on the side of the road. thus, create net new jobs. tual. At its core, what the decades reflect growth in If you look at the gross number Most government job creation debate is really about is Medicare, Medicaid, and of jobs created at the roadside, this the Left wants, however, has the op- whether government’s fis- other entitlements that cal problems are driven by are not closely tied to the policy may look successful. But if you posite effect. It destroys economic too much spending or too economic cycle. Economic consider the jobs lost by taxing or value and results in net job losses. little revenue. recovery won’t change the borrowing the money — the opportu- Even in areas where properly At the federal level, forecasts much. nity cost to producers and consumers structured government programs there is evidence for both JOHN And understand who otherwise would have used those can add value, such as infrastructure propositions. Federal HOOD that a significant share of scarce resources — then there may improvement, today’s programs are spending as a share of federal borrowing over well be no net jobs created. so poorly conceived that routing more gross domestic product the past two decades has Still, what really matters is not tax dollars into them to “stimulate the has been way above the historical financed state and local spending the number of jobs created but instead economy” is a fool’s errand. norm for several years. Score one — thus evading balanced-budget what economic value is added from Government exists to perform a for the GOP. But it’s also true that requirements at those levels of the activity. If the workers are adding small number of discrete tasks that are federal revenues as a share of GDP government. That means that we re- lanes to a congested highway, that difficult to perform through voluntary have been significantly below the ally ought to be thinking about total historical norm. Score one for the taxes and spending levels. creates value. Commuters and truck- means. Dems. According to data from the ers will move more quickly and safely Beyond that, government is a The reason the conservatives Tax Foundation, Americans will pay than before. liability, not an asset — and one that ultimately have the better argu- about 28 percent of their personal But if half the workers are dig- needs to be removed from our balance ment is that if income in fed- ging a trench down the side of the sheets. CJ you ignore the eral, state, and 2008-11 period, local taxes in looking back at Budget 2011. That’s the historical trends balancing average. Poorer Perdue’s Bet and forward households will at fiscal projec- is impossible pay less (rough- Governor hitches wagon to ObamaCare tions, you will ly 16 percent see that bud- without to 20 percent), getary balance and wealthier emember this spring when Gov. es to ObamaCare were not frivolous. is impossible spending restraint households will Bev Perdue and other Demo- Nor was it the case that the without spend- pay more (29 crats ridiculed a Republican bill lawsuit proved to be just partisan ing restraint. percent to 31 Rthat would have added North Caro- politics. In Cincinnati, one of the two But it is pos- percent). lina to the list of states challenging the judges upholding the mandate was a sible without tax hikes. If you compare the average constitutionality of ObamaCare? Republican appointee. In Atlanta, one Recessions make government 2011 tax burden, 28 percent, to past Perdue vetoed it. Her Demo- of the two judges striking the mandate deficits bigger in two ways. First, levels, you certainly can see it as a cratic allies went further, predicting down was a Democratic appointee. they lead to spending increases on recessionary drop. In 2006 and 2007, that the federal courts would reject the If the Supreme Court strikes programs such as unemployment for example, taxes totaled about 31 constitutional challenge because the down all or part of the ObamaCare compensation. Second, they lead to percent of personal income. That’s litigation was purely partisan. legislation before the 2012 presidential lower-than-expected revenues as similar to the total tax burden some taxpayers lose their jobs and Americans paid in most of the None of these predictions came election, Barack Obama won’t just suf- others lose enough income to fall 1970s, 1980s, and 1990s. So once the true. fer a policy loss. He’ll take a political into lower tax brackets. economy recovers, we can expect This summer, two federal ap- body blow. His major domestic ac- When the economy recovers, to see total tax collections rise back peals courts issued rulings on the complishment will have been declared these effects will dissipate. Higher toward that 31 percent figure. constitutionality of ObamaCare’s an unconstitutional power grab. employment will bring somewhat Unfortunately, federal, state, mandate that Americans purchase On the other hand, if the high lower expenditures and somewhat and local politicians have promised health insurance. By a 2-1 margin, a court waits to rule on the issue until higher revenues. That still leaves a to spend far more than 31 percent of panel from the 6th U.S. Circuit Court after November 2012, health care structural problem. income on government programs. of Appeals in Cincinnati ruled that the likely will consume almost as much In Washington, the longtime So, yes, the real problem is on the mandate was constitutional. More re- ink and pixels as the No. 1 campaign trend has been a persistent gap spending side. CJ cently, a split panel of the 11th Circuit issue of jobs. between historical rates of revenue in Atlanta struck it down. As for Perdue, she has attached (between 18 percent and 19 per- These events guarantee that the herself to the president on health cent of GDP) and historical rates John Hood is president of the John U.S. Supreme Court will take the case. care. We doubt it will turn out well of spending (between 20 percent Locke Foundation. Obviously, the constitutional challeng- for her. CJ PAGE 26 SEPTEMBER 2011 | CAROLINA JOURNAL Opinion EDITORIAL BRIEFS Mortgage Interest Deduction

he mortgage interest deduction often is justified as a means of increasing home- ownership. That really isn’t the case, though,T write Anthony Randazzo and Dean Stansel in a new paper for the Reason Founda- tion. In 2008, itemized deductions removed $1.26 billion from the country’s income tax base. This amounts to 15 percent of adjusted gross income. The mortgage interest deduction was the largest of the deductions, with Ameri- cans writing off $ $470.4 billion in interest they paid on their mortgages. Randazzo and Stansel argue that the mortgage interest deduction is a fairly inef- fective way to raise homeownership. Most of those who now rent but would like to buy a home have relatively low incomes. Because of that, they are unlikely to itemize and claim the mortgage interest deduction if they did buy a house. The mortgage interest deduction favors young, well-off households. Sixty percent Wealth Loss is the Big Story of mortgage interest deductions came from uch of the recent economic news has not One answer certainly could be the job situation. households earning more than $75,000 per year. been good. Unemployment remains above Consumers need jobs to provide them with the Households at or below the median income of 9 percent with many forecasts saying it will income to fuel their spending. With unemployment about $50,000 make up only 18 percent of those Mstay elevated. Loans are difficult to get. Consumer a continuing problem, it’s easy to conclude the lack claiming the deduction. The average tax from confidence is low, and home sales remain weak. of jobs is the main issue holding back consumer the deduction for a household at the median There’s no shortage of reasons given for the spending. was $120 per year. relatively bad economy. Many fingers have been However, an alternative argument is that un- “Ideally, the mortgage interest deduc- pointed at the federal government — either for employment is a symptom and not a cause. The lack tion should be completely eliminated from the spending too much or too little, or for having taxes of jobs stems from the lack of spending. A vicious tax code,” say Randazzo and Stansel. “This too high or too low! Corporations have been blamed circle has been established, where low spending would remove one of the major distortions in for having money but not spend- has led to fewer jobs, which in turn generates even the housing market, reducing the likelihood of ing it on workers. And bor- lower spending and more job cuts. But what was the another economy-destroying housing bubble rowers are upset at lenders for spark — or shock — that began the circle? being created.” increasing the standards neces- Many economists see an answer in our wealth, sary to obtain loans. or lack thereof! Like income, wealth also drives While good arguments can spending. Research shows that every dollar change be made for all these reasons, in wealth can alter spending from between 5 and Chinese imports and inflation there’s another force in the econ- 7 cents. So if consumer wealth goes up, so too will omy that can’t be overlooked: consumer spending. And if consumer wealth falls, What percentage of U.S. consumer spend- you and me as consumers. Con- consumer spending also will drop. ing actually goes to products “Made in China”? sumers dominate the economy, The problem is that the recession devastated That’s the question that Galina Hale and Bart accounting for about 70 percent MICHAEL the asset portion of our wealth equation. At the Hobijn, two Federal Reserve Bank of San Fran- of all economic activity — more WALDEN height of the recession, consumers collectively saw cisco economists, set out to answer recently. than twice as much as spending the value of their assets drop $16 trillion, with two- The answer, perhaps surprisingly, is less than by businesses and government combined. thirds of the drop from financial assets and one- 3 percent of U.S. personal consumption ex- Therefore, as consumers go, so goes the third from property (real estate) assets. This was a penditures, and even that figure overstates the economy. Today, the big problem in the economy is, 20 percent “hit” to our assets. impact. we consumers haven’t been doing very well. While our financial assets have recovered Most goods and services consumed in Some new analysis by the Federal Reserve about half their losses, our property assets — main- the U.S. also were produced here. Last year, Bank of San Francisco clearly illustrates the prob- ly the values of homes — haven’t. This is unlike imports amounted to about 16 percent of U.S. lem. Consumer spending per person, after adjusting recent recoveries from recessions when the home- gross domestic product. Chinese imports were for inflation, is still below pre-recessionary levels. buying market was a big boost to the economic 2.5 percent of GDP. Maybe more important, consumer spending per rebound. U.S. consumers spent 88.5 percent of their person is almost 10 percent lower than it would The loss of wealth and the continued weakness money on U.S.-made goods and services, with have been if prerecessionary trends had continued. in the housing market are big factors behind the China’s share being 2.7 percent of personal con- The lack of consumer spending is one of the slow economy. Home equity long was considered a sumption expenditures. The percentage varied main reasons businesses have been reluctant to ex- stable source of value for consumers. Now it isn’t. greatly by sector. Over a third of the clothing pand and hire. Businesses always are looking ahead. Lower home equity has translated into less consum- and shoes Americans buy were made in China. Prior to the recession, most businesses would have er spending. Plus many small businesses tradition- The 2.7 percent figure does not consider expected a continuing increase in consumer spend- ally have been started by using equity from the the use of intermediate goods imported from ing based on past trends. Production and hiring entrepreneur’s home. Now that equity isn’t there. China that are incorporated in the U.S. produc- plans would be based on these forecasts. Consumers are still “rulers” of the economy, tion of services or the use of U.S. services to But now businesses are adjusting to lower but our reign has been loosened with the recession consumer spending than they previously had pre- and wealth losses. The big question is: When will bring to market and sell items made in China. dicted. Past expansion plans have been thrown out we reclaim our power? CJ When adjusted for these factors, the total share and replaced with more modest futures. Often, new of personal consumption expenditures going to plans have resulted in downsizing. goods and services from China is 1.9 percent. CJ Yet this analysis raises still another question: Michael Walden is a Reynolds Distinguished Pro- What’s behind the drop in consumer spending? fessor at North Carolina State University. SEPTEMBER 2011 | CAROLINA JOURNAL PAGE 27 Opinion GOP’s ‘Grand Bargain’ Failure ver a weekend in late July, budget and the nation’s economy to popular than any politician. This year, Perry by as many as 10 percentage leaders in Washington came shreds. In 2010 Medicare cost $453 bil- there was an opportunity to reduce points in some polls, for example. The very close to forging a “Grand lion, an amount equal to 12.8 percent entitlements quite significantly and advantage is certainly not attributable OBargain,” a deal that would have cut of all federal spending and 3.2 percent have Democrats share the “blame.” to Obama’s policy stances. domestic and military discretionary of GDP. The program’s expenses are Democrats accused House Re- Republicans once were the sen- spending, made significant reductions projected to grow to 5.5 percent of publicans and the Tea Party caucus in sible party, with not only the pedi- to Medicare and Social Security, and GDP by 2035. In 2010, costing $695 bil- particular of killing the bargain. That’s gree for effective leadership but the overhauled the tax code. It was lever- lion, Social Security payments exceed- much too simplistic. They also say temperament for it, too. The party had aged by the need ed its revenues for the first time since Boehner was unreasonable and inflex- principles, but it also understood the for the president, 1983. Until 2020, the Social Security ible on taxes. This has a little more importance of decisive action in crises Democratic Sen- Board of Trustees believes the short- merit, although Obama did increase and was willing to put long-term ate, and Repub- fall can be made up by interest from his demand for more taxes after Boeh- national interests ahead of short-term lican House to the program’s general fund, but after ner provisionally had accepted about and often ephemeral political gains. extend the nation’s that the government will have to use $800 billion in new revenues over 10 The Democrats, on the other hand, legal borrowing reserves to make up the difference. years. Even so, at one stage both sides were impulsive, irresponsible, and authority. Those reserves will run dry in 2036. had agreed to lower individual and rather naïve. They hurt the national Ultimately, I would prefer a fundamental corporate income taxes significantly in interest because they were controlled the two princi- restructuring of these programs. But return for the elimination or reduction by special ones. For pragmatic in- pals in the nego- the perfect should not be made the of breaks like that for home mortgage dependents, this was an important tiations, President ANDY enemy of the good. The bold Medicare interest payments. This was revolu- distinction. Obama and House TAYLOR voucher proposal from House Bud- tionary stuff. Such a change would I think the summer’s events have Speaker John get Committee Chairman Paul Ryan, have assisted the economy greatly by damaged that reputation, and it is Boehner, retreated R-Wisc., was declared dead almost simplifying the tax code and broaden- hard to know how it can be repaired. to the safe confines of a much less am- immediately. This decision may come ing its base. To maintain ideological There is one silver lining for Republi- bitious agreement. Spending will be back to haunt Republicans. purity, however, congressional Repub- cans, though. The president’s actions cut moderately — hardly at all in the Recall that in 2005, President licans backed away from what would during the whole episode hardly have near term — and future fiscal policy- George W. Bush was going to use the have been a significant policy accom- endeared him to the American pub- making largely handed over to a con- “political capital” generated from plishment. lic. According to a recent poll, when gressional “supercommittee” made his victory over John Kerry to over- The main reason I am discour- asked about the events surrounding up of 12 members equally drawn from haul Social Security and phase in a aged by the outcome, however, is the debt deal, 77 percent believed our both bodies and both parties. program of personal accounts, let- that I think it will do lasting damage political leaders had behaved like I think this was a shame. It’s not ting beneficiaries invest a proportion to the Republican Party’s reputation. “spoiled children.” CJ every day that Democrats will look of their payments for themselves. Obama is vulnerable next year, as his seriously at reform of entitlement Bush backed off, in part because with 40 percent job approval rating attests. Andy Taylor is a professor of programs. Both Medicare and Social Republicans controlling Congress, the But next to most of the GOP alterna- political science in the School of Public Security are fiscal time bombs that, if party was fully accountable for re- tives, he still seems quite presidential. and International Affairs at N.C. State not disarmed, will blow the federal forming a program that is much more He leads Michele Bachmann and Rick University. Spinning Around the Dance Floor awmaking is sometimes likened tions got underway, looking much like his Democratic legislature, never slow dance until, much to everyone’s to sausage making. Others talk a fox trot. With projected shortfalls issuing a veto. His successor Mike surprise, the governor vetoed the of the machinery of carrying on of $2 billion to $3 billion, Gov. Bev Easley shuffled with his legislature: Regulatory Reform Act. In perhaps Lgovernment. The 2011-12 North Caro- Perdue insisted on keeping a sales tax He vetoed nine bills in eight years and another surprise, the veto was over- lina legislative session has been much that was set to expire, claiming the was overridden only once. ridden unanimously in the Senate, 48- more like watching $850 million in revenue was needed But Perdue and her Republican 0, and with strong bipartisan support a dance. for education. The Republicans were legislative partner looks more like in the House, 76-42. The state hellbent on keeping campaign prom- a spicy salsa with 15 vetoes in six There are several types of bills constitution sets ises not to hike taxes and said the months. They’ve overridden her six the governor cannot veto, so the dance out the partners budget could be balanced with less times. The veto dance beats on with changes, but it does not end. There’s a through a separa- spending. voter ID, energy exploration, and an down-and-dirty street dance between tion of powers Five Democrats joined a line ObamaCare exemption still in the the political parties on redistricting, clause. The legisla- dance with the 68 House Republicans wings. which ultimately will be decided by tive and execu- to pass the budget. Much like Act II Regulatory reform can best be additional, domineering partners tive branches of of “Swan Lake,” Senate Republicans described as a swing dance. With — the courts and the U.S. Depart- government “shall hold enough of a majority to get the more than 24,000 rules and burden- ment of Justice. Amendments to the be forever separate BECKI necessary votes and need no partners some regulations, businesses have and distinct from GRAY to pass the budget. begged for government to get off their constitution will strike up a square each other.” The A frenzied tango ensued. The backs and spur economic recovery. dance between the voters, the General partners also are governor said the cuts were too deep The governor responded in Assembly, the political parties, and determined in political terms — for and vetoed the budget; the General October 2010 with an executive order ultimately the courts, most likely over the first time in well over a century we Assembly promptly overrode her that said regulations should not im- eminent domain and gay marriage. have a Democratic governor part- veto. The budget spends $19.5 billion, pose undue burdens for compliance; As important issues continue nered with a Republican-led General 2 percent less than Perdue’s original should be cost-effective, timely, clearly to be considered — election laws, tax Assembly. $19.9 billion proposal. It was all over written, and up-to-date; and — most reform, infrastructure needs, and, as As the long session got under by June 15, the earliest a budget was important — should quantify the costs always, education — the dance will way, the dance began. It started out in place since 1979. Call it the Hustle. and benefits. The General Assembly continue. Will it be a cha-cha, a belly like a waltz with both partners prom- As the General Assembly con- passed the Regulatory Reform Act dance, or a break dance? Stay tuned. CJ ising to work together for jobs, educa- tinued its work, the governor made of 2011 with one small change: The tion, and economic recovery. frequent use of her veto power — a agency imposing a rule will not have But the beat quickened and the power that was enacted in 1997 under the final word in a disputed case. Becki Gray is vice president for out- music got louder as budget negotia- Gov. Jim Hunt. Hunt soft-shoed with The agreement looked like a reach at the John Locke Foundation. PAGE 28 SEPTEMBER2011 | CAROLINA JOURNAL Parting Shot Easley Mobile Library to Take Tour of North Carolina (a CJ parody) By Wickey Pedia surround the tour. “We want to give Archives Correspondent every North Carolinian the opportuni- RALEIGH ty to see these important archival doc- eeks after the release of the uments, so we are having the library fourth and final set of official visit the four corners of the state,” she papers of former Democratic told CJ. WGov. Jim Hunt, the state Department From Raleigh, Carlisle said the of Cultural Resources announced that tour will head to Sparta, where it will the gubernatorial documents and ef- park near the former Sparta Teapot fects of Hunt’s successor, Mike Easley, Museum of Craft and Design, which would be released to the public and closed in January 2010. The next stop housed in a mobile library. will be Franklin, on the grounds of a The Official Mike Easley Portable proposed “Green Eco-Community” Library will launch a statewide tour farm project that sought a grant from this fall, allowing residents to view the Golden LEAF foundation but papers and artifacts of the two-term never got off the ground. Then, it will Democratic governor, who left office in move to Roanoke Rapids and the site January 2009. The mobile library unit of the former Randy Parton Theatre has found a temporary home on the complex. grounds of the Old State Capitol. The library’s final resting place While the exhibit space may not The Official Mike Easley Portable Library made the first stop on a statewide tour at will be in Carteret County at the Can- be fancy, Cultural Resources Secretary the State Capitol recently. (CJ spoof photo) nonsgate development, on the wa- Carolina Journal Linda Carlisle told of his former press aides revealed its ing his administration, and the many terfront lot Easley purchased in 2005. “there’s a treasure trove of gubernato- existence in sworn depositions. “We models of airplanes and helicopters he Carlisle says the goal is to have the li- rial goodies” on display. She said long- had to redact some of the salty lan- flew in as governor. brary open for visitors at Cannonsgate time Easley friend McQueen Camp- guage in those messages,” Carlisle Plans for a separate room featur- on Dec. 17, the anniversary date of the bell, a Raleigh businessman, pilot, and said, “but they show a governor with ing portraits of the dignitaries former Wright Brothers’ first flight. former chairman of the Board of Trust- a wicked sense of humor.” First Lady Mary Easley brought to a “The governor was such an ad- ees at N.C. State University, has agreed Another area highlights Easley’s speakers program she ran at N.C. State vocate for the aviation industry in to serve as docent for the museum tour. escapades on the road and in the air. It were scrapped when university offi- North Carolina — and such a frequent One exhibit will feature the ex- includes scale-model representations cials discovered she did not book any flyer — that we think it’s appropri- tensive email correspondence the for- of the NASCAR vehicles the former speakers for campus events during her ate to place his legacy alongside that mer governor used from a private ac- governor wrecked, the cars he and tenure there. of Wilbur and Orville,” Carlisle said. count that was kept secret until several his family members used for free dur- Carlisle expects a lot of buzz to “They were all pioneers in flight.” CJ E.A. MORRIS FELLOWSHIP FOR EMERGING LEADERS

The E.A. Morris Fellowship is seeking principled, energetic applicants for the 2011 Fellowship class. Applications available online or at the John Locke Foundation. Please visit the E.A. Morris Fellowship Web site (www.EAMorrisFellows.org) for more information, including eligibility, program overview and application materials.

Eligibility Fellowship Timeline Fellowship Retreat Dates • Must be between the ages of 25 and 40. August 30, 2011: Applications available March 16-18, 2012 – Pinehurst, NC • Must be a resident of North Carolina and a U.S. citizen. September 15, 2011: Review of applications begins June 29-July 1, 2012 – Blowing Rock, NC • Must be willing to complete a special project requiring October 15, 2011: Finalist notifications begin;applications ac- October 19-21, 2012 – Coastal NC leadership and innovative thinking on a local level. cepted until finalist pool is filled, or until December 10, 2011 • Must be willing to attend all program events associated December 15, 2011: Finalist notifications close with the fellowship. February 4-5, 2012: 2012 Candidates’ Selection weekend • Must not be the spouse of a current or past Fellow.

www.EAMorrisFellows.org Contact Karen Y. Palasek | [email protected] or [email protected]

200 W. Morgan St., Ste 200 Raleigh, NC 27601 | 919-828-3876 | 1-866-553-4636