INSIDE THIS ISSUE: DEPARTMENTS Environmen- North Carolina 2 C A R O L I N A Education 8 talist pushes Interview 10 Higher Education 11 nuclear as Local Government 16 an option to Books & the Arts 20 Opinion 24 coal/4 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION March 2010 Vol. 19 No. 3 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org TransPark Broke With No Way to Retire Debt with members of the General Assem- bly later this year. Park owes more than “Nothing would thrill me more than to not have that debt on our $37 million to books,” she said. Since the park gen- erates nearly all its revenues with rent N.C. Escheat Fund from commercial tenants, Waddell ac- knowledged the park had no funding By Don Carrington source to repay the debt. Executive Editor Rep. Van Braxton, a Kinston RALEIGH Democrat, is a strong supporter of the he Global TransPark Author- GTP, but agreed the debt is a problem. ity, a two-decade-old industrial “I would like to see the TransPark pay park near Kinston created by that back, but clearly right now they theT General Assembly to handle air can’t do that,” he said. cargo, still can- State Treasurer Janet Cowell not repay more didn’t elaborate when asked about the than $20 million debt. “We are encouraged by recent it has borrowed updates from the Global TransPark from the state Authority and continue to monitor ac- treasurer — and tivities,” a spokeswoman said. has no idea how Senate Minority Leader Phil the debt will be Spirit AeroSystems, called the Global TransPark’s “anchor tenant,” is currently under Berger, R-Rockingham, cast doubt on construction. Government incentives granted to the plant add up to $200,000 per Waddell’s plan to seek help from the retired. Unpaid job. (CJ photo by Don Carrington) principal and General Assembly. “It was inappropri- Darlene Waddell accrued interest tems, a Wichita, Kan.-based company year’s short session of the legislature ate for the original borrowing to be al- GlobalTransPark lowed. State debt in general has been a executive director — owed to the that is set to start manufacturing large for help with the debt. state’s Escheats aircraft components later this year, GTP Executive Director Darlene problem,” he said. “There should be a Fund — are ap- government incentives to Spirit mean Waddell acknowledged that the debt business plan other than a bailout from proaching $38 million. taxpayers will subsidize employment to the state treasurer’s office was a se- the taxpayers.” Even though the park has landed at GTP to the tune of $200,000 per job. rious concern. She told Carolina Journal an “anchor tenant” in Spirit AeroSys- GTP officials say they may ask this her board members plan to discuss it Continued as “Global,“ Page 14 Scandals, History to Sting Dems in ’10? PAID RALEIGH, NC U.S. POSTAGE the first time since the 19th century. PERMIT NO. 1766 NONPROFIT ORG. Democrats have solid advantages in Easley scandal, both chambers — a 68-52 majority in the House and a 30-20 majority in the economy weigh Senate. But the GOP smells blood in key races that could tip the balance of on voters’ minds power. To take control, Republicans need By David N. Bass to pick up nine seats in the House and Associate Editor six in the Senate. The N.C. Free En- RALEIGH Election experts wonder if scandals in- terprise Foundation, a conservative s November’s midterm elec- volving former Gov. Mike Easley (left) and election-analysis group in Raleigh, has tions approach, most eyes are former House Speaker Jim Black (right), identified 10 Senate races and 18 House on the nation’s capital. But both Democrats, will cost the party in races as competitive, meaning the vic- 2010. (CJ file photos) NorthA Carolina could be in for some tor in 2008 won by 55 percent or less. historic races of its own, as scandals, The question of who controls the retirements, and political tides threat- Political analysts expect a bumpy General Assembly beginning next year en Democrats’ majorities in the state ride this year as Republicans hope to The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 General Assembly. take the reins of legislative power for Continued as “Scandals,“ Page 15 PAGE 2 MARCH 2010 | CAROLINA JOURNAL North Carolina C a r o l i n a Study Urges N.C. Legislature Rein in Regulators By Sara Burrows tion, federal agencies will write it for them, he said. Journal Associate Editor “It’s conceivable that [rules review] has been done in RALEIGH other states and it works fine, but it’s also possible that it hen the General Assembly gave the State Board of sort of ties the state in knots and that it’s impossible to get Rick Henderson Community Colleges the power to set admissions any regulation passed,” Harrington said. Managing Editor standards, lawmakers probably did not expect the Even when meeting a federal deadline is not an issue, Don Carrington boardW to allow illegal immigrants to enroll in community Smith said rules review can eat up a lot of time unnecessar- Executive Editor colleges. ily. And yet the board did, igniting protests across the “Up until a few years ago, every rule got held up for David N. Bass, Sara Burrows state. This is but one example of what John Locke Founda- legislative review,” she said. “The General Assembly real- Anthony Greco, Mitch Kokai tion regulatory policy analyst Daren Bakst considers unac- ized it was holding up rule changes that were completely Michael Lowrey countable bureaucracy. “Regulat- uncontroversial, and that in Associate Editors ing the Regulators,” a February many cases were being re- report authored by Bakst, argues quested by industry. Even rules Jana Benscoter, Kristen Blair that unchecked regulatory agen- that were being requested by Roy Cordato, Becki Gray cies in North Carolina are creating the folks being regulated were Paige Holland Hamp, David Hartgen one of the most unfriendly busi- getting caught up in the review Sam A. Hieb, Lindalyn Kakadelis ness environments in the nation. process.” George Leef, Karen McMahan Most states and even the Bakst argues that not ev- Donna Martinez, Sarah Okeson federal government are more le- ery rule would get held up, Karen Palasek, Lee Raynor nient than North Carolina when only those that didn’t meet the Marc Rotterman, Jim Stegall George Stephens, Jeff Taylor it comes to regulation, said Bakst. stated criteria. Michael Walden, Karen Welsh Excessive regulations cost North In addition to reviewing Hal Young, John Calvin Young Carolinians commercial opportu- rules before they are enacted, Contributors nities, jobs, and money. the legislature should review The report recommends a them periodically after they’ve Jacob Burgdorf series of reforms, led by calls for gone into effect, Bakst said. Adrienne Dunn the General Assembly to limit the Adrian Moore, vice presi- Kamen Nikolaev amount of power it delegates to dent of research at the Reason Editorial Interns state agencies. “Unelected and Foundation, agreed. Rules unaccountable bureaucrats” are making too many impor- should be scheduled to expire or “sunset” on a certain date, tant policy decisions, he said. Moore said, unless the legislature votes to reinstate them. Published by Legislators often hand off the responsibility of rule- In Colorado, the sunset period is one year. A year after The John Locke Foundation making to agencies so that lawmakers can duck hot-button a rule is enacted, the agency has to convince the legislature 200 W. Morgan St., # 200 issues and not have to deal with the political repercussions, it should be continued. If they can’t, the rule is scrapped. Raleigh, N.C. 27601 he said. (919) 828-3876 • Fax: 821-5117 “This forces the legislature to actually look at it and www.JohnLocke.org Agencies are expected to fill in the blanks of the Gen- examine its effectiveness. Otherwise you just get rubber- eral Assembly’s vague and often overly broad legislation stamping,” he said. Jon Ham with specific rules and regulations that help implement or Moore admitted the process would be time-consuming Vice President & Publisher interpret the law. The problem is when they interpret the and unappealing to legislators who “would rather spend law in ways the legislature never intended, Bakst said. their time making new laws than looking at old laws.” John Hood Bakst says important questions of social policy should “Politicians don’t get re-elected for making things Chairman & President be decided by the legislature, a representative body ac- more efficient,” he said. “They get re-elected for making countable to citizens. new laws.” Bruce Babcock, Herb Berkowitz To ensure agencies don’t get out of hand, the legisla- Smith said North Carolina experimented with a simi- Charlie Carter, Jim Fulghum ture should have more oversight of the regulatory process, lar idea 20 years ago, when the Rules Review Commission Chuck Fuller, Bill Graham he said. It should write narrower laws, leaving less wiggle was forced to evaluate all regulations every five years or so. Robert Luddy, Assad Meymandi room for interpretation, and it should require all rules to be Baker A. Mitchell Jr., Carl Mumpower, “From what I’ve heard it was incredibly burdensome reviewed before they become law. and didn’t generate much in the way of changes,” she said. J. Arthur Pope, Thomas A. Roberg, Robin Smith, a spokeswoman for the Department of David Stover, J.M Bryan Taylor, She said a sunset provision could lead to a “constant Environment and Natural Resources, said the state already Andy Wells churning of regulations,” creating confusion for the com- Board of Directors has a legislative review process in place. munity being regulated. All rules must be filtered through the Rules Review Moore argues there wouldn’t be a high turnover of Carolina Journal is a monthly journal Commission before they are enacted, she said. As long regulations as long as the rules were legitimate. of news, analysis, and commentary on state as the commission deems the agency has the authority to A system working properly would keep effective reg- and local government and public policy issues adopt the rule, and the language is clear and unambiguous, ulations in place and discard those that were too costly, too in North Carolina. the rule goes into effect. If there are any objections, the rule burdensome, or simply outdated, he said. ©2010 by The John Locke Foundation is sent to the legislature for review. Advancements in technology also can make regula- Inc. All opinions expressed in bylined articles Bakst argues the Rules Review Commission should be tions obsolete, he added. are those of the authors and do not necessarily responsible for more than assessing legality and ambiguity. As an example, Moore cited a fire code in San Diego reflect the views of the editors of CJ or the He said the commission should make sure rules are: requiring builders to install horizontal beams at narrow in- staff and board of the John Locke Foundation. • Consistent with legislative intent, tervals between vertical beams in the walls of tall buildings. Material published herein may be reprinted as • Cost-effective, long as appropriate credit is given. Submis- • Flexible for small businesses, The regulation protected against large vertical air pockets sions and letters are welcome and should be • No more stringent than federal regulations. that would allow a fire to move quickly through the wall. directed to the editor. Rules not satisfying these criteria should be either sent Moore said the code made sense a century ago, when CJ readers wanting more information buildings were made of wood. Now, however, the mandate between monthly issues can call 919-828- to the legislature for further review or rejected. Winston Harrington, an environmental regulation an- wastes time and money in construction costs for buildings 3876 and ask for Carolina Journal Weekly made of concrete and steel. , delivered each weekend by e-mail, alyst at Resources for the Future, said any legislative review Report Bakst said this is exactly why rules need to be re- or visit CarolinaJournal.com for news, links, process needs a time limit. and exclusive content updated each weekday. “Legislators need to keep in mind that the state is of- viewed. Those interested in education, higher educa- ten facing a mandate, a deadline [from the federal govern- “Agencies should have to justify a rule’s existence ev- tion, or local government should also ask to ment], those sorts of federal machinery to make sure that ery five years or so,” he said. “It should be their burden to receive weekly e-letters covering these issues. something happens,” he said. prove to the rule is still needed.” If state lawmakers can’t agree on the text of a regula- If they can’t, he said, the rule should be repealed. CJ MARCH 2010 | CAROLINA JOURNAL PAGE 3 North Carolina N.C. Pension Fund Experiences Largest Losses in Real Estate Funds and his brother Randy Allen developed the Cannonsgate housing develop- State law considers ment in Carteret County where former Gov. Mike Easley bought a waterfront such investments Real Estate Investments lot in 2005 at a $137,000 discount. Fran- co said the state’s real estate portfolio closed to public has made no investments with any of By Sarah Okeson the Allens’ waterfront funds. Contributor North Carolina’s treasurer is the RALEIGH sole fiduciary for its pension fund, he real estate investments in meaning the treasurer makes the final North Carolina’s pension fund decisions on its investments. Many lost about a third of their value N.C. Pension Fund states instead use investment boards. Tlast year, but because information Judith Lohman, who researched the about specific real estate investments issue for the Connecticut General As- is not considered a public record, it’s sembly in 2008, found that only 16 of impossible to know which investments the 50 state treasurers are responsible brought down the pension fund’s val- for investing state pension funds and ue. half of them use investment policy The losses in the real estate cate- boards. gory were worst among the categories “That’s just such a vast amount of investments in the fund’s portfolio. of power, but it’s not on the radar,” Real estate investments make up less for Cowell. to try to get information about invest- Watkins said. than 5 percent of the fund’s portfolio. Former state Treasurer Richard ments he had made. A Wake County Moore, who has not returned Carolina Journal Their value at the end of 2009 was $3 Moore got an advisory opinion from judge dismissed the lawsuit. The N.C. phone calls from , re- ceived at least $267,170 from 2004 to billion. the state attorney general in 2006 con- Court of Appeals upheld the dismissal 2008 from employees and people con- Overall, the $67 billion pen- cluding that records with information in November, writing that it was rea- nected to firms where the pension fund sion fund rose 15.08 percent in 2009, about the companies in which funds sonable for the treasurer’s office to had real estate investments. rebounding along with other invest- have made investments were trade se- deny “requests regarding the public Employees and others affiliated ments in the broader markets. Stocks crets. records that were not in their pos- with RLJ Development LLC, a hotel/ held by the fund bounced back by North Carolina isn’t the only session and records which contained about 33 percent. real estate investment company found- state with real estate investments that trade secrets.” About the only information state ed by Charlotte Bobcats majority own- tanked. In California, the real estate Appeals Court Judge Rick El- Treasurer Janet Cowell will release to er Bob Johnson, gave at least $62,000 investments of the pension system for more dissented. SEANC has appealed explain the loss is a list of the fund to Moore. RLJ received $1.2 million state employees plunged by 47.5 per- the ruling to the state Supreme Court. managers as of Dec. 31, 2008, and the in management fees in 2008 for three “I hope at the end of the day that losses posted by each manager. No cent, more than three times worse than funds in which the treasurer’s office the court says we can go into the trea- information is available from the trea- the index for that fund. had invested $150 million. surer’s office and get what we need,” surer’s office about the individual real But the California Public Em- RLJ also received $10.7 million said Ardis Watkins, the association’s estate investments made by those 39 ployees’ Retirement System does re- as an incentive payment for the per- legislative affairs director. “I hope it’s fund managers. The managers received lease information about the properties formance of RLJ Urban Lodging Fund there.” more than $65 million in management its real estate managers invest in. Clos- LP. Information about the performance Susan Carter, who oversees the fees from the treasurer’s office in 2008. er to home, South Carolina’s pension of RLJ Urban Lodging Fund for 2008 “These real estate portfolio hold- doesn’t make real estate investments. pension’s real estate investments for wasn’t available. Its weighted perfor- ings are not considered public record,” The State Employees Association the treasurer’s office, makes $210,000 mance in 2007 was almost 17 percent. a year. said Heather Franco, a spokeswoman of North Carolina sued Moore in 2008 Employees and people affiliated One of North Carolina’s real es- with Crow Holdings, a Dallas real tate investments that has tanked is a estate firm, gave at least $42,000 to commitment to invest $100 million in Moore. The treasurer’s office has $200 Cherokee Investment Partners IV, a million invested in three funds with Visit the new-look fund run by a Raleigh company. The Crow Holdings and paid more than state had invested less than $7 million Carolina Journal Online $290,000 in management fees in 2008. in the fund by the end of 2008 but had Cowell also has received dona- paid out close to $1.5 million in man- agement fees. tions from real estate investors that Cherokee Investment Partners, do business with the state, taking in the parent company of the fund and at least $51,000 in 2008 and 2009. Her another company North Carolina has top contributors were people connect- invested in, is the subject of a federal ed to Sentinel Real Estate Corp., who probe in connection with failed golf contributed at least $20,100. The firm and housing projects in New Jersey. received $1.7 million in management The New Jersey inspector general fees in 2008 from the treasurer’s office, issued a report in 2008 finding that a but the company’s Sentinel Realty V company backed by one of the limited fund was liquidated in 2009 because of partnerships in North Carolina’s pen- poor performance. sion fund had mismanaged a project People connected with RLJ De- on a landfill site in Bergen County. velopment LLC contributed the sec- Thomas Darden, the CEO of ond-highest amount of contributions Cherokee Investment Partners, con- to Cowell, $15,100. Cowell has said tributed $1,000 to Moore in 2004. that she supports public financing of treasurer elections, believing that out- With links to the new CJTV and CJ Radio Web sites Darden did not respond to an e-mail seeking comment. lawing campaign contributions from http://carolinajournal.com Developer Gary Allen donated individuals would alleviate potential $8,000 to Moore in 2004 and 2005. Allen conflicts of interest. CJ PAGE 4 MARCH 2010 | CAROLINA JOURNAL North Carolina N.C. Briefs Environmentalist Urges Nuclear over Coal Charter double standard By Donna Martinez percent over coal costs,” Elfland wrote School districts across North Contributor in an e-mail. “In the initial years, one Carolina would be forced to close CHAPEL HILL might expect higher costs and in- more than 150 traditional schools, Hansen calls e’s the rock star of climate creased price volatility due to the im- if the State Board of Education change activists, but James nuclear power mature market.” extended new charter school Hansen’s recent statements Boss is pushing UNC to switch to performance standards to all “the safest large supportingH nuclear power are pushing biomass or other alternatives such as public schools, according to Terry environmentalists to re-examine tech- industry in wind, geothermal, and solar by 2015. Stoops, the John Locke Foun- nology they’ve opposed consistently. He says the public health benefits of dation’s top education expert. During a January visit to UNC- the United States” eliminating coal from the nation’s fuel Using test results from the Chapel Hill to support a Sierra Club- mix outweigh economic costs to U.S. past three years, Stoops’ new led effort to pressure the university to mining communities, including North report shows traditional schools stop burning coal at its cogeneration power for the university and its hos- Carolina’s coal-producing neighbors would make up 155 of the 164 total plant, Hansen, head of NASA’s God- pitals. At the first meeting of the En- in Appalachia. The Independent Weekly schools subject to closing for poor dard Institute for Space Studies, sug- ergy Task Force, UNC Associate Vice has reported that, over the past five performance. Three alternative gested nuclear as one alternative to re- Chancellor for Campus Services Caro- years, UNC has purchased its coal district schools also would close. place coal in the nation’s fuel mix. lyn Elfland told members — including from Kentucky and Virginia. Six charter schools would close. “If you look at the damage that Molly Diggins, state director of the “Our group is pretty aware of “Under state rules, only the has been done to humans and the en- N.C. chapter of the Sierra Club — the both sides of that issue, that the people charter schools actually face the vironment by nuclear power and com- Environmental Protection Agency has in Virginia and West Virginia and other threat of closing,” said Terry pare that to what’s been done by coal, recognized the cogeneration plant for parts of Appalachia where the mining Stoops. “The new report exposes you’re talking several orders of magni- its efficiency. communities are, that they need these the way that the State Board of tude,” said Hansen, who famously de- Elfland explained that, except for jobs,” says Boss. “But also, we realize Education systematically cre- clared to a Senate committee hearing a brief period last year, coal tradition- that right now coal is devastating min- ated both privileged and disadvan- in 1988 that “the greenhouse effect has ally has been cheaper than natural gas ing communities. It’s really bad for lo- taged classes of public schools.” been detected, and it is changing our and the state requires its institutions cal public health. The emissions from Three of the six charter schools climate now.” to embrace a lowest-cost operation. At coal have been linked to cancer and that would be threatened with clos- At his Chapel Hill event in Janu- $20.1 million, fuel is nearly 30 percent autism and different things like that.” of this fiscal year’s $59.3 million total Boss says that Appalachia ing under the new policy operate in ary, Hansen said, “The safest large in- budget for the Chapel Hill campus. shouldn’t be dependent on coal and Durham and Wake counties. While dustry in the United States has been nuclear power. The number of people The Energy Task Force likely will that he realizes a transition will be those schools would shut their doors, killed from nuclear power is negligi- duplicate work that went into the uni- tough. “In the long term, they’re going 13 traditional district schools and ble.” versity’s 2009 Climate Action Plan, ad- to benefit by biting the bullet now and one alternative district school with Nuclear also emits no carbon di- opted just last fall. trying to find ways to support their similar student performance would oxide — the greenhouse gas that en- The document offers recommen- economy without needing coal.” remain open in those two counties. vironmental activists say is killing the dations to reach “climate neutrality” More than one-third of the na- planet. Coal, which Hansen calls the by 2050. In the near term — by 2020 — tion’s coal supply comes from Appa- Easley aides clash dirtiest fuel on the planet, does — and the plan suggests replacing 20 percent lachia, according to the U.S. Energy he says it should be phased out glob- of the coal with a biomass product. Information Administration, but a suc- Several aides to former Gov. ally. UNC plans to test dried wood pellets cessful anti-coal effort could increase Mike Easley could be in legal jeop- The Coal-Free UNC Campaign and torrefied wood. energy, transportation, and commod- ardy based on conflicting statements hosted Hansen’s visit. Much of its anti- The impact of switching to bio- ity costs in household budgets across they gave in sworn depositions. coal work relies on Hansen’s research. mass on the plant’s fuel budget is un- the country. Former Press Secretary Renee The group is affiliated with the Sierra clear. The university hasn’t received In 2008, the coal industry em- Hoffman recalled separate orders Club’s national Campuses Beyond quotes from suppliers. “The study ployed nearly 87,000 people. Coal is from communications directors Coal Campaign. Stewart Boss, me- indicated a long-term premium of 15 mined in 26 states. CJ Cari Boyce and Sherri Johnson for dia outreach coordinator for the UNC public information officers to delete group, says they don’t advocate wider e-mails to and from Easley — who use of nuclear power, but they give cre- used a private e-mail account to dence to Hansen’s remarks. conduct public business. Under So does the nuclear expert who oath, Boyce and Johnson denied sits on Chancellor Holden Thorp’s Share your CJ new Energy Task Force — the group such a blanket order was issued. assessing the cogeneration plant’s use While it’s not at all unusual of coal. David McNelis, director of the for witnesses at depositions to of- Center for Sustainable Energy, Envi- Finished reading all fer somewhat different accounts, ronment, and Economic Development said former Assistant U.S. Attorney at the UNC Institute for the Environ- the great articles in this Kieran Shanahan, in this instance, ment, says nuclear power is a safe tech- “some appear to be more than mini- nology in the United States. He doesn’t month’s Carolina Jour- mal. Given that we’re talking about see nuclear as an alternative for UNC, criminal conduct” related to the state however, because of the relatively nal? Don’t just throw it and federal investigations of Easley, small amount of power the campus he said, “if [the Easley staffers] knew needs. in the recycling bin, pass what they were doing was illegal, “In the future, years down the I think it becomes an additional road,” McNelis says, “there may be it along to a friend or building block” for prosecutors. small nuclear batteries or plants that Shanahan said the former offi- are sealed plants and will run their neighbor, and ask them cials also could face felony charges of life for 25 or more years and then be perjury, conspiracy, and obstruction replaced like you would a battery. But to do the same. of justice if they lied under oath to those are not available at this point.” conceal a “criminal enterprise.” CJ The cogeneration plant burns a combination of coal and natural gas Thanks. and provides about one-third of the MARCH 2010 | CAROLINA JOURNAL PAGE 5 North Carolina Employers: Government Uncertainty, Costs Hold Hiring in Check

By Karen McMahan costs in 2009. We’ve had cuts for the Contributor past three years, but we still had an av- RALEIGH erage amount of hiring in 2009 as in a s North Carolina continues to normal year.” flirt with record-setting un- Welton admitted Durham Coun- employment rates, employers ty, like other localities and the state, andA staffing companies increasingly relied on federal stimulus money to say the expectation of higher taxes and provide certain jobs and will continue more burdensome regulations pre- to depend on subsidies from Washing- vents them from hiring new workers. ton to maintain payroll. “Salaries and That message came through benefits account for 80 percent of Dur- clearly at January’s meeting of the ham County government’s annual op- Triangle Society for Human Resource erating budget. Without more stimulus Management in Research Triangle funds or an increase in revenues, we’ll Park, where panelists discussed em- have to lose employees in law enforce- ployment prospects in 2010 along with ment and health and human services mounting employer concerns. in FY2011,” he said. Presenters included Pam Hig- Welton said the county had tried don, president of Express Employment to offer an incentive plan last year to Professionals, a staffing firm; Bruce encourage some employees to retire Clarke, president and CEO of Capital early so that the positions could be Associated Industries, a Raleigh-based filled with junior workers earning employer association; and Marqueta lower salaries, but it wasn’t possible Welton, human resources director for because the new hires would be fund- Durham County government. ed with temporary federal grants that Higdon said 2009 was the most might not be available permanently. challenging year since her company “Some politicians don’t understand they had to look into the eyes of unem- James Sherk, Bradley Fellow in opened 13 years ago. “There are too how to run a business. A few hundred ployed people who are desperate for Labor Policy at the Heritage Founda- many candidates for too few jobs,” dollars as a tax break to hire someone work, like I have to every day, and the tion, said that lawmakers facing bud- Higdon said, “but we have seen a isn’t going to increase hiring if sales faces of business owners who spend get deficits routinely threaten to cut slight increase in hiring, even direct are down and employers are worried sleepless nights worrying if they’re go- essential services and jobs if the public hires, since the end of 2009. Still, em- about the future. I know business own- ing to lose everything they’ve worked resists tax increases. But that threat is ployers are reluctant to hire because ers who have been making big sacrific- so hard for. They want to take care of hollow. of uncertainty in the political climate es, even not paying themselves just so their families, contribute to charities of Pensions and health care account making it hard for business.” they won’t have to let staff go. It’s not their choice, and help people in need, for a big portion of a state’s long-term “Our firm has long-term, estab- fair to blame businesses for not hiring. but they’re hurting.” liabilities, so states could save money lished relationships with several hun- What business owner wouldn’t like to Clarke also painted a bleak pic- and maintain services by simply ex- dred businesses in North Carolina. hire? That would mean they’re grow- ture for job growth. “Most employ- pecting workers to pay a larger share Possible tax hikes and policy changes ing.” ers have become profitable primar- of those benefits. Sherk said lawmak- for health care and energy are big con- Hidgon expressed deep frustra- ily through deep cost-cutting. Only a ers also could reduce public employee cerns,” Higdon remarked in a follow- tion. “When I see politicians spend- small number of firms are still hiring, compensation, raise the retirement up interview. “We developed a very ing millions on pet projects, I just wish and another small group are hiring age, and simply cut jobs. conservative business plan for 2010.” they [policymakers] who are spending only by betting on stimulus money “The public sector has more gen- “More government spending us into the ground had to walk a mile and green energy to drive demand. erous compensation, pension plans, means fewer jobs,” Higdon added. in [business owners’] shoes. I wish “The public is misled when and health care than the private sector they’re told that government is innova- does,” Sherk said. “The private sector tive and creates jobs. Good innovation has had to shift from defined-benefit falls to manufacturing and the private to defined-contribution retirement Books authored By JLF staFFers sector,” Clarke said. “The legislature plans to reduce costs and be competi- as a body, I believe, feels the prospects tive, and the public sector could do Efficiency and Externalities for job creation in North Carolina are the same, and [government agencies] better than they actually are. They’re could require employees to pay part in an Open-Ended Universe out of touch. They need to encour- of their health care premiums, like pri- age growth in manufacturing because vate sector employees do,” he added. those historically have helped rural ar- “Two-thirds of unemployment eas grow.” is due to a large drop in job creation,” Clarke cites high taxes, lack of Sherk said. “To solve the problem, free-market solutions in health care, states just need to provide a business increased government mandates that climate that’s favorable to job cre- drive up business costs, and the state’s ation.” broken workers’ compensation system Despite millions in federal stimu- By Roy Cordato as just a few reasons for lackluster job lus funds and state incentives aimed at Vice President for Research John Locke Foundation creation. job creation, North Carolina’s unem- “Revenues in Durham County ployment rate continues to rise. “Cordato’s book is a solid government are down in all areas,” The latest figures from the performance, demonstrating Welton said, “and our revenues come North Carolina Employment Secu- impressive mastery of both from taxes. When the economy is rity Commission show the statewide the Austrian and neoclassical down, so are tax collections, but de- unemployment rate hit a record 11.2 literature.” mand for our services increase.” percent in December, well above Israel Kirzner “Last year, Gov. [Beverly] Perdue the national average of 10.0 percent. Cato Journal asked state agencies to cut their bud- Rates in several North Caro- gets by 10 percent. We ended up with lina counties exceeded 16 per- www.mises.org a cut of about 3.8 percent in operating cent. CJ PAGE 6 MARCH 2010 | CAROLINA JOURNAL Education Voter unrest fuels optimisn Minor Parties Still Face Significant Barriers to Ballot By Sara Burrows The ballot was six pages long. Associate Editor “Yes, it was a bit of a circus,” RALEIGH Haugh said, “but it resulted in a clear he Tea Party demonstrations that winner.” started last year, the growth of unaffiliated voters, and the ex- Without representation Tpansion of social networking to fuel Al Pisano, chairman of the Con- political activism have given backers stitution Party of North Carolina, be- of third parties hope that they can cash lieves three parties is not a crowd. To in on a growing frustration with the cater to a diverse population, he said, political establishment. the menu should be broader. A recent Rasmussen Reports poll The Constitution Party offers suggests an opening may exist beyond conservative voters something they the traditional two-party structure. can’t find in either the Republican or One question asked: “If you were to the Libertarian party, he said — posi- vote today and you got to choose be- tions that are more fiscally conserva- tween a candidate from the Democrat- tive than the modern GOP and more ic Party, the Republican Party, or the socially conservative than the Libertar- Tea Party, which would you choose?” ians. A third of the respondents sided Similarly, the Green Party offers with the Democrats. A quarter opted liberal voters a voice that isn’t broad- for the “Tea Party.” Only 18 percent cast from the platforms of Democrats chose Republicans. or Libertarians. “The hypothetical ‘Tea Party’ In 2005, the Libertarian and Green did better than the Republican Party,” parties sued the state for violating their laughed Sean Haugh, former state di- members’ constitutional rights. They rector of the Libertarian Party. CJ graphic claimed that restricting voting options infringed on freedom of speech, free- Series of obstacles and Natural Law parties to give up af- paign trail in 2008. dom of association, and equal protec- ter two tries. Advocates for third parties still But third parties face a series of tion under the law. They wanted the say reaching the ballot is too difficult. signature requirement lessened, if not obstacles before they can reach voters. Libertarians keep plugging “I don’t think it’s possible for any oth- dropped altogether. North Carolina erects some of the na- Only the Libertarian Party re- er party to meet this standard without In October 2009, the Court of Ap- tion’s highest ballot-access barriers on mains standing. Since its inception in out-of-state money” to pay petition- peals issued a split decision favoring minority parties. Ballot Access News 1976, the Libertarian Party has collect- ers to collect signatures, said Barbara the state. The North Carolina Supreme reports that only Oklahoma makes it ed enough signatures to get on North Howe, chairwoman of the Libertarian Court is set to hear the case late this tougher than North Carolina to place Carolina’s ballot eight times. And yet Party of North Carolina. She thinks spring or early this summer. a presidential candidate on the bal- it never has reached the 10-percent the signature requirement should be lot. Meanwhile, only Alabama places threshold. low enough for a core group of party The road ahead greater burdens on third-party candi- volunteers to meet it without having In 2007, the state changed the While easing ballot-access restric- dates seeking to run in statewide elec- to pay outside petitioners. She and polling percentage required to retain tions would provide voters with more tion races. Haugh agree that 5,000 signatures is a ballot access from 10 percent to 2 per- choices, there’s no guarantee that the North Carolina began printing of- “perfectly reasonable standard.” cent. offerings of third parties would deliver ficial ballots in 1901, controlling which “It keeps Mickey Mouse off the After spending more than victory at the polls, says Andrew Tay- candidates and parties appeared. Over ballot,” Howe added, “but it doesn’t $200,000 and 3½ years collecting the lor, a political science professor at N.C. the next century, the state regularly re- prevent a legitimate grass-roots orga- 70,000 signatures then needed to reach State University. vised its laws governing who can and the ballot, the party turned in 11 boxes nization from getting off the ground.” Minority parties also face restric- cannot get on the ballot. Third-party of petitions a month before the June tive campaign finance laws, a cumber- activists say that every time minor- ‘Choices confuse people’ 2008 deadline. some candidate nomination process, ity parties reach the ballot, the state “It’s like showing up to the be- In its court proceedings, the state and above all, a winner-takes-all elec- changes the rules and raises the barri- ginning of a marathon already out of has defended its signature require- toral system, written in the U.S. Con- ers higher. breath,” said Haugh, paraphrasing ment as a means of keeping voting stitution, which was not designed to When a 5,000-signature require- 2008 Libertarian gubernatorial candi- simple. Allowing multiple parties and accommodate third parties. ment allowed two new parties to reach date Mike Munger. candidates on the ballot would confuse What third parties want more the ballot in 1982, the legislature set the Munger, a professor of economics voters, the argument goes. than the presidency or high poll num- signature requirement at an all-time and political science at Duke Univer- Ballot clutter is a myth, third par- bers, Taylor said, is to be invited to high — 2 percent of the number of vot- sity, collected 3 percent of the vote in ties say. debates and given an outlet to present ers in the previous gubernatorial elec- 2008 — 120,000 votes — enough to get In Tennessee, where only 25 sig- their ideas. tion. Today, that translates to 85,000 Libertarians on the 2010 ballot without natures are required, a mere nine par- “At the moment they don’t even signatures. petitioning. ties appear on the ballot. have that,” he said, “because the orga- Over the next quarter century, In previous election cycles, pe- South Carolina never has had nizers don’t invite them. They’re effec- only three parties were able to jump titioning consumed the Libertarians’ more than four parties on the ballot, tively muzzled.” the hurdle — the Reform Party, the time, energy, and money, leaving little and its 10,000-signature requirement “They are just asking to make a Natural Law Party, and the Libertar- for advertising, media engagements, is significantly lower than North Caro- case, and if the public’s not interested ian Party. None of them, however, has or door-to-door outreach. Party lead- lina’s 85,000-signature requirement. in what they have to offer, then so be seen a candidate collect 10 percent of ers hope 2010 will be different. Even a several-page ballot would it,” he said. the vote, a threshold that (since 1949) “It’s hard for us to tell how much not present a problem, Haugh argues. Although easing ballot access is has given a party permanent ballot sta- our message might resonate with vot- He pointed to the 2003 recall election in not a sufficient condition for the rise tus. The frustration of having to start ers, because we’ve never had an op- California that elected Arnold Schwar- of third parties, Taylor said without it, the petitioning process from scratch portunity to present it,” Munger said zenegger governor. There were 135 “they are fighting with one hand tied each election cycle caused the Reform during his brief period on the cam- candidates. One was an exotic dancer. behind their backs.” CJ MARCH 2010 | CAROLINA JOURNAL PAGE 7 Education 45 Law Firms Seeking Cut of State Pension Litigation By Sarah Okeson a dominant securities law firm. Top Contributor Milberg Weiss partner William Lerach RALEIGH was known as the “king of shareholder he collapse of investment portfo- lawsuits” for his aggressive pursuit of lios has securities law firms troll- shareholder losses through litigation. ing for clients eager to sue over But the law initially helped Mil- Tlost money. State pension funds are berg Weiss more than it harmed the major targets for the high-flying litiga- firm. After its passage, law firms, in- tion shops. cluding Milberg Weiss, began to woo North Carolina is in the cross- pension funds with campaign contri- hairs of some 45 law firms. State Trea- butions. surer Janet Cowell will choose about Adam Pritchard, who teaches 10 to serve as a pool for lawsuits. Rep- corporate and securities law at the Uni- resentatives from Cowell’s office and versity of Michigan Law School, has the office of Attorney General Roy studied the connection between cam- Cooper are evaluating proposals from paign contributions and legal fees in the firms. class action cases. He found that large In lawyers’ parlance, the selec- funds tend to negotiate lower fees, but tion process is known as “the beauty that difference disappears once cam- contest.” One of the firms targeting paign contributions to state pension North Carolina is New York-based fund officials are accounted for. Bernstein Litowitz. “The political contributions are In 2005, the firm won a $6 bil- to the law firms seeking the state’s attorney with the U.S. Securities and taking us back pretty much where lion settlement in the WorldCom case business. People connected to Bern- Exchange Commission. “The hiring of we were before Congress adopted the brought by investors over the account- stein Litowitz were also his biggest plaintiff firms is the most controversial law,” Pritchard said. ing fraud that brought down the long- contributor, with $18,500 in contribu- thing a public fund can do because of Milberg Weiss collapsed after distance phone company. Attorney tions. questions surrounding the merit of revelations that the firm had paid more fees for that case were $336 million. Tony Gelderman, who heads the class-action securities cases and also than $11.3 million in kickbacks to get The lead plaintiff was the comptroller Louisiana office of Bernstein Litowitz, the bad conduct or behavior of these clients to sue. Lerach and other part- of New York state, because of invest- contributed $8,000 to Cowell and pro- firms.” ners from the firm went to prison. Two ments in WorldCom by the state’s pen- vided lodging worth about $1,000. He James Cox, a professor at the offspring of the original firm, Coughlin sion funds. contributed $5,500 to Cooper. Gelder- School of Law at Duke University, said Stoia of San Diego and Milberg LLP of Cowell has received more than man did not respond to a phone call North Carolina New York City, have expressed interest $123,000 since 2007 in campaign con- and e-mail seeking a comment for this shouldn’t be hav- in doing business tributions from employees and other story. ing people tied to with North Caro- people connected to the law firms that In Florida, which recently chose elected state offi- Firms under lina. are trying to get the state’s business. five law firms to represent the state cers such as Cow- Another firm The biggest contributors to Cowell in securities cases, the competition ell and Cooper consideration seeking North were people connected to Bernstein featured an anonymous letter about choose the law Carolina’s busi- Litowitz — which contributed at least ethical questions, law firms that hired firms. gave money ness is Bernstein $45,690, including in-kind contribu- lobbyists, and former partners who “I think you to some Liebhard LLP tions for catering and lodging. had lost their jobs after criminal con- should get it out of New York. It Cooper received at least $76,825 victions. of both those of- state officials dropped out of in campaign contributions since 2007 “It really was a theater of the ab- fices,” Cox said. “I the competition in from employees and others connected surd,” said Edward Siedle, a former think it should be Florida to handle in some more neutral body.” securities litigation after a senior part- Noelle Talley, a spokeswoman for ner made inaccurate statements to a Cooper, said that if a law firm is hired, selection committee. “we will urge that the treasurer’s of- An anonymous letter mailed to fice selection process be insulated from Florida’s attorney general also raised outside influence by having a team of ethical questinos about the firm. independent evaluators analyze the Bernstein Liebhard has hired two firms’ qualifications.” lobbyists in North Carolina, the only Pension funds weren’t always firm seeking North Carolina’s busi- big players in securities litigation, but ness that has done so, according to fil- that changed with a 1995 law intended ings with the secretary of state. One of to discourage frivolous lawsuits. At Bernstein Liebhard’s lobbyists is Jerry that time, the firm that first got to the Meek, former chairman of the North courthouse controlled securities law- Carolina Democratic Party. The firm suits. also hired a lobbyist in Florida. The Private Securities Litigation A few North Carolina firms Reform Act was intended to “empow- are seeking to represent the state, er investors so they, not their lawyers, including Blue Stephens & Fell- control securities litigation.” It handed ers in Raleigh, which has submit- control of the suit, or the lead plaintiff ted a joint proposal with Hagen status, to the investor with the biggest Berman Sobol Shapiro of Seattle. loss. In practice this typically meant Managing partner Dan Blue, public pension funds. The theory be- chairman of Duke University’s hind the switch was that institutions Board of Trustees and a Democrat- suffering big losses would monitor ic state senator from Wake County, the handling of the lawsuit better than told Carolina Journal his firm has not other plaintiffs would. been involved in securities litiga- The law was also known as tion, so “we teamed up with the best the “Anti-Milberg Weiss Act,” after firm in the country to do it.” CJ PAGE 8 MARCH 2010 | CAROLINA JOURNAL Education COMMENTARY Guilford Schools Want in on Recreational Media: The Other Parent Federal Stimulus Spending Fun By Sam A. Hieb 2009 allocations, they will not be al- ncreasingly sophisticated tech- sad, or unhappy. Contributor lowed to carry over 2010 allocations, nologies and rapidly evolving Kids’ consumption of recre- GREENSBORO creating what he described as a “use it media platforms have fueled an ational media is related to school ome Guilford County Schools or lose it” situation. Iepic surge in children’s media use. success as well. officials seem to feel the system Bobadilla and system chief finan- So influential is media in kids’ lives, Heavy media users were shouldn’t let everyone else have cial officer Sharon Ozment presented the resource group Common Sense more than twice as likely as light Sall the federal bond fun. the board with a list of projects that Media has dubbed it “the other users to say they earned “fair” or While county commissioners and would qualify for QSCB funding, the parent.” “poor” grades — Cs or below. In the Greensboro City Council are still majority of them heating and air con- Shocking as this sounds, new fact, almost half of students at the trying to hash out the confusion sur- ditioning improvements to several data on the recreational habits of high end of media use said they did rounding federal stimulus bonds for schools. Also included on the list were tweens and adolescents reveal it’s not perform well in school. But 66 a proposed downtown luxury hotel, door, window, and roof replacements on the mark. Parents and educators percent of light users said they got GCS is reviewing its list of projects that at several schools. must thus face the daunting task of good grades. could be funded The most ex- helping kids navigate a media-satu- Mobile technologies aren’t just with federal bonds, pensive renovations rated culture in a way that transforming kids’ leisure entertaining the are HVAC upgrades promotes healthy devel- time; they’re also affect- idea of using those at Ferndale Middle opment and school suc- ing school culture. While bonds to pay for School, at a cost of cess. technology in general has projects passed by $2.4 million, and at Cutting back on me- advanced and enriched voters in a 2008 Northeast Middle dia time would be a great classroom learning, stu- local bond referen- School at a cost of place to start. According dents’ mobile devices have dum. $1.5 million. to a recently released not. GCS stands to Bobadilla also Kaiser Family Founda- Cell phones among gain $34 million in offered up another tion study, “Generation students are now ubiqui- no-interest Quali- alternative, however M2: Media in the Lives tous — Kaiser reports 85 fied School Con- — use some of the of 8- to 18-Year-Olds” — KRISTEN percent of 15- to 18-year- struction Bonds, QSCB bonds to fund assessing 2,000 students BLAIR olds own them — meaning which were autho- projects in a $457 from public, private, and administrators must make rized by the federal million bond refer- parochial schools — kids decisions about how to government through the American endum approved by voters in 2008. spend on average more than 7 regulate them. Recovery and Reinvestment Act. Pro- Guilford County commissioners, who hours a day (53 hours a week) on Most high schools prohibit ceeds must be used for the construc- already have warned school officials to recreational media with devices cell phone use. Kids are using them tion, rehabilitation, or repair of public brace for another tight budget year, are such as cell phones, MP3 players, anyway. According to a 2009 Com- school facilities or the acquisition of pushing that alternative. computers, and television. mon Sense Media poll, teens with land on which a school facility would Bobadilla suggested the pro- Children’s daily media use cell phones send an average of 440 be built. posed Northern Greensboro Elemen- has increased by an hour and 17 text messages per week, 110 of them But some school system officials tary School, at a cost of $25 million, for minutes over the past five years; while in class. want to divert those funds to cover ex- QSCB funding. researchers attribute this uptick to A sizeable minority — 35 per- isting bond obligations. School board chairman Alan expanding mobile technologies. cent — say they have used phones The North Carolina Department Duncan noted that switching new con- Now, according to Kaiser’s Vicky to cheat. Some text test answers to of Public Instruction reports that the struction from the local bond to federal Rideout, “there is nothing that oc- friends, while others access answers state received a total QSCB allocation bonds would save taxpayers $6 mil- cupies more of young people’s time online. of $275 million. Of that, $261 million lion. than media. Not school. Not church. Such behaviors have schools has been passed along to school sys- “It’s very important to preserve Not family.” scrambling for solutions: a recent tems, with $34 million in total bonds our assets, because they’re the taxpay- What does this mean for par- MSNBC.com article reports that being issued. The state’s top five coun- ers’ assets,” Duncan said. ents? The purchasers of children’s officials in one Alabama county ty school systems — Cumberland, But board member Nancy Routh media devices, parents are also are confiscating offenders’ phones Forsyth, Guilford, Mecklenburg, and questioned that notion, saying the the gatekeepers of media usage. for 30 days and scanning them for Wake — were allocated a total of $88.4 money saved was only “imaginary Surprisingly, most parents don’t cheating and other infractions. million. money” because it was merely savings regulate media time: according to Used properly, technology and The stimulus act also more than on debt service. Kaiser’s study, only one-third of media have tremendous value and tripled funding for another federal “Theoretically it’s there, but students had any parental restric- utility — for education, enjoyment, school bond program. The Qualified there’s not $6 million somewhere in tions on TV, video game, or com- and connection. Mobile technolo- Zone Academy Bond allocation went existence that the county could allocate from $400 million annually nationwide for another project,” Routh said. puter time. gies have irrevocably altered and to $1.4 billion for 2009, with an equal In the end, the board voted 6-3 to There are compelling reasons animated the panorama of chil- allocation coming in 2010. approve the list of maintenance proj- to reconsider. Parental rules drove dren’s media options. North Carolina in total received ects as presented by staff and present it down daily use by about three But even in a culture awash $44 million in QZAB. Of that total, $19 to county commissioners, with Duncan hours, Kaiser’s study found. More- with digital advances, children can’t million has been allocated to 13 school and fellow board members Garth He- over, light media users (consuming find their own way. They need firm, systems. bert and Paul Daniels voting against. less than three hours daily) were enforceable rules and guardrails GCS’s $34 million in qualified Board members Amos Quick and Dee- likelier to say they were happy at from parents and educators — now, school construction bonds will come na Hayes were not present. school. more than ever. CJ in two $17 million installments, one for Still, as school systems across the Heavy users (tethered to 2009 and another that is expected for state wait for their 2010 allocations, the media for 16-plus hours daily) were 2010. Facilities director Leo Bobadilla big question is how quickly they will likelier to say they got into trouble Kristen Blair is a North Carolina told the Board of Education at a recent have access to funds. The economy is frequently, and were often bored, Education Alliance Fellow. meeting that while the federal govern- still slow, and the bond market remains ment will allow systems to carry over down. CJ MARCH 2010 | CAROLINA JOURNAL PAGE 9 Education Fireworks Follow State Board’s Proposed History Course Changes By Jim Stegall end of reconstruction in 1877, and relegate the study when Senate President Pro Tem Marc Basnight, D- Contributor of everything before that to earlier grades. Dare, weighed in against it. In a Feb. 12 letter to At- RALEIGH Following standard procedure, the first draft kinson and State Board of Education Chairman Bill Feb. 3 Fox News report on a draft proposal to of the proposed new curriculum was posted on the Harrison, Basnight said that he was “absolutely op- change the way U.S. history is taught in North Department of Public Instruction’s Web site on Dec. posed” to the proposed changes. Carolina schools set off a public firestorm that 15, and comments from the field were solicited. His- Echoing the comments of earlier critics, Bas- sentA the Department of Public Instruction back to the tory teachers were asked to weigh in with comments night wrote, “As a reader of history myself, I think drawing board. and suggestions, and at least one that no one should graduate from high school with- The brouhaha revealed a “webinar” event was conducted out a thorough understanding of the Declaration of high level of suspicion and mis- later that month to allow virtual Independence, the Founding Fathers, the writing of trust among critics of the state’s Fox News face-to-face contact with DPI of- the Constitution, and the personalities involved. Fur- education establishment, as well ficials. thermore, it is my belief that only high school stu- as frustration among officials report prompted As details of the draft dents have the capacity to understand complex and charged with administering the proposal became more widely awful parts of our nation’s history such as slavery state’s public schools. It also fo- more than known, negative feedback from and the Civil War.” cused intense public scrutiny on 7,000 e-mails the field began to mount. By late Basnight’s opposition may have been the fi- state education policymakers January, North Carolina law- nal nail in the coffin of “Draft 1.0,” as the proposed who often operate in relative ob- to State Board makers were beginning to get revision had come to be called. In a presentation to scurity. involved, contacting DPI offi- lawmakers on Feb. 16, school board Executive Direc- The State Board of Educa- cials to pass on comments from tor Rebecca Garland conceded that the proposal was tion is the body responsible for teachers and other constituents “dead on arrival.” She said the board will now con- approving the curriculum of required courses taught concerned about the proposal. sider plans calling for two history courses, one cov- in North Carolina public schools. A 2008 blue ribbon Critics of the pro- ering events from pre-Co- commission had reported that these courses were posed changes said that lumbian times through the “too broad and not deep enough.” The commission confining the study of the Civil War and Reconstruc- recommended that a new curriculum be developed nation’s founding and such tion, and the other dealing that would “limit learning objectives at each grade issues as slavery and the with events since 1877. level to only those that are of undisputable impor- Civil War to the elemen- Garland told law- tance and can be successfully taught … in the time tary and middle school makers that since the Fox available.” levels would weaken the News report came out, her Acting on the commission’s findings, the board curriculum and leave stu- department had received approved changes to the math and science curricu- dents with an underdevel- over 7,000 e-mails, many lums in 2009 with little fanfare. Next up were English oped sense of American of them abusive in nature, and social studies. The team chosen to work on the history. They argued that about the proposal. She social studies curriculum was mindful of the com- the concepts and events called the report “errone- mission’s findings, and of complaints from teachers, surrounding the creation ous” and blasted an indi- parents, and students that there was not enough time of the republic and its near vidual whom she did not in the required 11th-grade U.S. history course to cov- demise are essential to a name for sending the draft er more recent history. mature understanding of to Fox News, “rather than As a result, important historical events in the the American experience, share his comments with late 20th century, such as the roots of conflict in the and should be explored by us.” Middle East, the aftermath of the Cold War, and the older students. She said that because emergence of terrorism were being dealt with lightly DPI officials working of the Fox News story, if at all. The curriculum writers’ solution was to focus on the proposed revisions were well aware of these her curriculum writers had to spend “a significant the 11th-grade U.S. history course on events since the comments from the field before the Fox News report. amount of time to clear up erroneous information However, the intensity that was sent out over the Internet” as the story went of the public reaction to viral. She defended the work her writers were trying the report caught them to do, citing a law approved last year allowing more by surprise. U.S. history to be taught in middle school. After the report The individual Garland seemed to be blam- Visit our Triad regional page aired, the department ing for initiating the public dustup is Mike Belter, a posted a news release Rockingham County history teacher. Belter had been http://triad.johnlocke.org claiming that, “National one of the teachers who had attempted to participate media coverage … in- in the Jan. 12 webinar with DPI. The John Locke Foundation cluded an incomplete Belter told Carolina Journal Fox News first con- has five regional Web sites span- description of the new tacted him. Belter said that he had shared his con- ning the state from the mountains standards.” Superin- cerns with several people, and that one of those was to the sea. tendent of Public In- a friend whose daughter worked for Fox News. DPI struction June Atkinson officials say they were told by Fox News that some- argued that the new one had contacted them with a lead for the story. The Triad regional page includes Belter is not certain whether it was his actions news, policy reports and re- curriculum would actu- ally increase the amount that sparked the Fox News story, but even if it was, search of interest to people in of time devoted to the he’s not apologizing. “The public needed to know,” the Greensboro, Winston-Slem, study of the nation’s his- he said. “I still believe that if all this hadn’t come out, High Point area. tory, when information ‘Draft 1.0’ would be very close to the final product.” in all relevant courses — As things now stand, the “final product” won’t It also features the blog Pied- such as 10th-grade civ- be known for some time. Following normal proce- mont Publius, featuring com- ics and economics, and dure, a new draft most likely will be posted in April mentary on issues confronting seventh-grade North and further comments solicited. “The State Board of Triad residents. Carolina history — was Education is not in a hurry,” Garland told legislators, included. explaining that the board was more interested in making sure it gets the new curriculum right before The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 But a major blow was dealt to the plan it’s implemented. CJ PAGE 10 MARCH 2010 | CAROLINA JOURNAL Interview Goldberg: Fascism’s Origins are Leftist, Progressive, Utopian By CJ Staff RALEIGH “People say, ‘How could Nazis be on the left eople who object to modern-day since Nazis and Communists hated each other?’ liberal policies often hear the insult “fascist” or even “Nazi.” Well, it was Coke versus Pepsi. It wasn’t a cat- JonahP Goldberg, editor-at-large for National Review Online, says those in- egorical difference. It was the tyranny of small sults are aimed in the wrong direction. Goldberg has spent much of his career differences that really made them hate each debunking the notion that a conserva- other.” tive viewpoint has anything to do with fascist ideas. Goldberg discussed his Jonah Goldberg book Liberal Fascism with Mitch Ko- Author of Liberal Fascism kai for Carolina Journal Radio. (Go to http://www.carolinajournal.com/ cjradio/ to find a station near you or to learn about the weekly CJ Radio pod- ism, they are fighting fascism. Mean- those things about Obama, I think it’s tion to today? cast.) while, things that a visitor from Mars even more unfair to say those things would recognize as fascistic get almost about Americans. The idea that we Goldberg: The most danger- Kokai: Some people see the title no scrutiny on the Left. And one of the would support anybody like that is ous thing, generically, in a democracy, of the book and say, “Well, he’s calling only lessons I really want the Left to just not in the American character. We is groupthink. And I think there are all liberals fascists.” take from the book, one of my hopes are a liberty-loving people, deeply ad- an enormous number of people who was that the word “fascist” [would] dicted in the habits of our heart to con- watch politics like it’s a TV show and Goldberg: That’s not what I’m be removed from political discourse, stitutional government, and we won’t think, “Ah, this bickering is annoying, saying. The title of my book actually not become more popular. And on that go that way. and … some people say this, and some comes from a speech by H.G. Wells. front I failed completely. That said, it does seem like Barack people say that. Why can’t they all shut People forget that H.G. Wells was one But it’s to understand that fas- Obama is determined to prove the ar- up and just agree?” of the most important progressive fig- cism was … the Nazis didn’t flip a coin guments laid out in my book and with And I have sympathy with their ures in the English language, for pro- and lose and decide they were going reckless abandon. At times it seems as exhaustion. As a pundit, I’m trolling gressives. And he was the one who to be the villains of the 20th century. if he saw the book and said, “Gosh, I around in this muck 24/7. But the called for something called “liberal fas- No one decides they want to wear the got to help this guy sell books.” simple fact is that democracy is about cism.” He also called for “enlightened black hats and be the bad guys for all Because everything, from the disagreement, not about agreement. Nazism,” and I could have called my time and get played by bad British ac- way he campaigned — this messianic, And when you hear people like Barack book that and really made friends. tors in World War II movies. sacralized version of politics, where Obama saying “I don’t want to hear The basic argument, at least of Fascism crept in as a progressive, politics are going to be redemptory and any talk from the people I disagree the first half of the book, is that we modern, forward-thinking phenom- utopian and all of the rest, to the cor- with,” or when you hear people like Al have been taught, as a culture, that the enon. And there are a million different poratist means by which he is running Gore say “the time for debate is over,” further you move to the right, in the clichés about how the road to hell is the government, where government well, screw you, this is a democracy. Anglo-American tradition, the closer paved with good intentions and all of and big business get in bed together to And in a democracy, the time for de- you get to Nazism. And not only is this the rest. That doesn’t mean they’re not squeeze out the little guy, squeeze out bate is never over. wrong, it’s a terrible slander. true. It takes no intellectual courage the entrepreneur, to redistribute wealth There is this yearning out there The reality is that … look, I de- whatsoever to look at things you don’t — all of these things come straight out for us to get past partisanship and past fine right wing basically as two pillars, like and yell “fascist.” of the arguments I made originally in our philosophical differences and our right? One is traditional values, fam- It takes real intellectual courage the book about Hillary Clinton. ideological divide and all of the rest. ily values, Judeo-Christian tradition, to look at things you do like that seem And it turns out that Barack What I would ask people to listen for however you want to define it, and the good, that seem helpful, that seem to Obama out-liberal-fascists Hillary when they hear that, when they hear other one is free markets, free minds, be moving the wheel of history for- Clinton, which was an amazing thing. about this post-partisan nonsense, is libertarianism, all that kind of stuff. ward, and say, “Hey, gosh, what could And I think anybody who read the ask yourself: Have you ever heard Those two pillars were exactly what this lead to?” And that was the lesson book before Barack Obama came along somebody say we really need to move fascist movements in Europe fought for progressives that I thought was has been amazed. I get hundreds of e- against. beyond these ideological labels, move very important. I also thought it was mails from people saying, “How did beyond this philosophical divide, and They were opposed to tradition, fair to sort of exonerate conservatism, you know?” I didn’t know. opposed to Christianity, and opposed so, therefore, I’m going to abandon all which I believe in passionately, from But I think it sort of confirms my of my principles and agree with you? to limited government, and opposed to what was essentially a false and libel- basic argument about the thrust of free markets. That was what they were No one ever says that. They only ous charge. contemporary liberalism, that it does say that when they want you to shut standing for. And so what I try to do, have this family resemblance to fascis- up and get with their program. And so in the first half of the book, is simply Kokai: This book came out in tic movements and leftist movements I would say that this quest for unity, correct the record and show — and I 2007. Does the election of Barack generally. Because one of the main ar- this quest for silencing dissent, it is in think I do it fairly well — that by any Obama in 2008 prove your point? guments I make in the book is that the that climate that history’s greatest mis- fair, objective definition of right wing differences between leftist movements and left wing, in the Anglo-American Goldberg: I needed to do two are very small in their emotions and in takes and crimes are made. tradition, fascism has to be seen as a things. One is I had to have the very their categorical thinking. Regardless of whether or not left-wing phenomenon. clear caveat that nowhere in my book, People say, “How could Nazis you agree with Obama’s rhetoric or nowhere, do I say that liberals are Hit- be on the left since Nazis and Com- Obama’s program or agenda, let’s keep Kokai: Why do you have to make lerite genocidal racists who want to munists hated each other?” Well, it in mind that I don’t think dissent is the that case? kill people and round them up and all was Coke versus Pepsi. It wasn’t a cat- highest form of patriotism, but I think that kind of thing. I don’t do what the egorical difference. It was the tyranny it’s really scary that now we’re hearing Goldberg: Because so much of Left does and make reckless ad Hitle- of small differences that really made that dissent is the lowest form of racism. the political debate for the last 70 years rum charges, and I don’t think Barack them hate each other. They were two In a democracy, we’re supposed has been defined by this often sincere, Obama is a Hitler. I don’t think he’s a dogs fighting over the same bone. to have arguments. When you hear but flagrantly wrong, impression that Stalin. people say “no more arguments,” you the Left has that they are, by fighting I don’t think he’s a Mussolini. Kokai: What lessons from history should flip the safety on your meta- conservatism, by fighting libertarian- And while I think it’s unfair to say should we pay particularly close atten- phorical rifle. CJ MARCH 2010 | CAROLINA JOURNAL PAGE 11 Higher Education

Actor Glover Reframes MLK COMMENTARY In King Day Speech at UNC-CH Why So Few

By Jay Schalin called for the creation of a “guaranteed Contributor income,” which he wanted to be set at Faculty Conservatives? RALEIGH the median income in the country. eil Gross, professor of people with broadly liberal political NC-Chapel Hill made a curious Other American heroes have sup- sociology at the University sensibilities, and as inappropriate choice for the keynote speaker ported ideas that are not part of the of British Columbia, and for conservatives.” Whether that to top off a week of activities American tradition after they achieved Ethan Fosse, a doctoral student at reputation is deserved or not, it has devotedU to the memory of Dr. Martin acclaim. Thomas Jefferson supported N Harvard, recently argued that few an impact upon students with any Luther King Jr. While Danny Glover the French Revolution, despite that conservatives enter teaching be- ideological radar, and they respond has had a solid career on event’s shaky philosoph- cause the stereotype of a professor’s accordingly. If they sense at age 19 films and stage, he is nei- ical foundations and de- job doesn’t fit the image they have that an occupation is uncongenial to ther a scholar nor an as- volution into vindictive of themselves. their dispositions, they’ll drift else- sociate of King’s, nor has bloodshed, corruption, Just as few men want to go where. Thus a self-selection process he established himself as and, with the rise of Na- into nursing because it’s viewed as reinforces the reputation over time. a King “expert” by writ- poleon, despotic military ing a biography or series dictatorship. a woman’s occupation, so do few of articles about him. Thomas Paine actu- conservatives want to go into the Mary Grabar, Georgia Perim- Glover has, howev- ally served in the French professiorate because it’s eter College: Had Neil er, kept himself in the na- revolutionary govern- viewed as a liberal’s occu- Gross and Ethan Fosse tional spotlight in recent ment briefly, and later pation. bothered to talk to conser- years, mostly by making called for nations to The Pope Center vatives in the academy inflammatory statements provide guaranteed in- asked several professors or to the multitudes who and keeping company comes. But the legacies of to comment on the Gross/ left in disgust, they might with despots. His activ- these men rested on their Fosse thesis. Here are have learned about the Danny Glover ism has placed him in the early achievements; to- excerpts from some of harassment, ridicule, far left of American poli- day they are forgiven for their replies. (More can be censorship, and open tics. He has a longstanding friendship deviating from the original ideas of the found at the Pope Center discrimination we face. with the Communist Cuban dictator American Revolution. Web site.) GEORGE I would have told them Fidel Castro and also has developed Glover, however, suggested that LEEF about my experiences in close ties with Venezuelan socialist the later King is the one who truly mer- Michael Munger, graduate school, like be- leader Hugo Chavez. its our attention and admiration. He Duke University: Some ing branded an ignorant Perhaps Glover’s politics led the almost dismissed the traditional King people have claimed that Christian fundamentalist university to invite him to Chapel Hill from the 1950s and early 1960s, when the lack of conservative professors for simply pointing out the religious to speak on Jan. 21. If so, Glover did King led the fight for integration and is caused by the fact that conserva- references in T.S. Eliot’s poem “Ash not disappoint. He presented King in wrote “Letter from Birmingham Jail” tives aren’t interested in being pro- Wednesday.” A rhetoric professor, a different light than he is commonly and his “I Have a Dream” speech. fessors. In other words, conserva- for my lonely defense of Socrates perceived — not as a uniter of people At one point Glover suggested tives aren’t interested in things like in the dialogues, suggested that I and civil rights advocate, but as a so- that the protests and marches that history, literature, and the classics. might even like the writings of “fas- cialist who wished to “radically re- broke the color barrier were “easy,” Presumably, the idea is that conser- cist” writer Richard Weaver. That structure the architecture of American that “minor embarrassing incidents vatives just want to play golf and is how I often made my discoveries society.” like desegregating a water faucet” wear plaid pants and sweater sets in of the rich conservative intellectual Glover did not falsify his portrait were “easily accomplished.” What alarming colors. This idea is absurd tradition. of King, but rather showed King at King eventually decided was really on its face: history, literature, clas- his most radical. Glover said that one important, according to Glover, was sical education, and constitutional Thomas Bertonneau, SUNY should not focus on King at any par- attacking “structural racism,” and that government are at the very center of Oswego: The study by Fosse and ticular point in time, since King expe- required radical restructuring of the the conservative ideal. Gross, aside from offering a circular rienced an “evolution” from a “civil nation and its economy. argument (the academy is liberal rights leader to a human rights leader.” Glover suggested that King’s Burton Folsom, Hillsdale because liberals … are drawn to As Glover revealed, the Martin Luther later radicalization was part of the College: For sure, liberals breed the academy), runs counter to King who led the Montgomery bus natural progression of history — a liberals ,and likes attract likes. Thus, everything that I have observed boycott in 1955 was not the same as the “movement” of human advancement the leftists on campus perpetuate in nearly 30 years of teaching. The one who in 1967 wrote Where Do We Go that began with the Magna Carta and themselves generation after genera- professoriate is not merely liberal, it From Here: Chaos or Community? — a continued through the American Rev- tion. The Gross and Fosse article is radically left liberal in its basic as- paean to the redistribution of wealth olution, the abolition of slavery, and goes into more variables, and some sumptions. … The most ridiculous and income. the civil rights movement. Including of those are probably important, claim by Fosse and Gross is that the Glover heartily endorsed this King’s shift leftward in this advance- too. Academics usually have mod- political character of the academy transformation. To students who are ment suggests that the entire thrust of est lifestyles — no serious desire for can be explained in part by the fact not well-versed in political theory and historical advancement, particularly in a Mercedes or a beach house. Also, that the scholarly life attracts people the rhetoric of the political left, this America, is leading to socialism. they must be loners to some extent. who have a “a high tolerance for change of focus from civil rights to hu- This perspective of the flow of I can’t see, however, that there is controversial ideas.” On the con- man rights may sound positive. But history meshes with Glover’s own anything in the professor’s job that trary: the academy is intellectually these terms have very specific mean- politics. In the question-and-answer makes it unappealing to conserva- conformist and averse to actual con- ings. period following the speech, he said tives and libertarians. troversy. On every subject — from Civil rights are those rights that that “capitalism is not a science, mere- “global warming” to Darwinism confer equality under the law — they ly a relationship,” and “we’re going to Mark Bauerlein, Emory Uni- to affirmative action to abortion — disallow discrimination and guarantee have to find another relationship just versity: Although one is tempted to there is just one permissible opin- equal access to legal redress. Human for the species to survive.” CJ quibble with this or that contention, ion. CJ rights, as defined by the political left, the ultimate conclusion to the study often go way beyond civil rights by rings true. It is: “the professoriate George Leef is director of research seeking to institute government-man- Jay Schalin is senior writer for the … has been ‘politically typed’ as for the John W. Pope Center for Higher dated economic equality. John W. Pope Center for Higher Education appropriate for and welcoming of Education Policy (popecenter.org). Glover highlighted the King who Policy (popecenter.org). PAGE 12 MARCH 2010 | CAROLINA JOURNAL Higher Education Campus Briefs Report Reviews Speech Codes at N.C. Colleges Milton Welch, an assistant professor at N.C. State University, By Jane S. Shaw kicked off Black History Month at Contributor St. Augustine’s College in Raleigh RALEIGH with a talk that related the writings n theory, America’s colleges and of three prominent African-Ameri- universities are strongholds of clas- cans — W.E. B. Dubois, Anna Julia sically liberal ideals, including the Cooper, and Booker T. Washing- Iprotection of an individual’s right to ton. In January, Welch presented a open debate and inquiry. In real life, similar lecture to honors students however, this is often not the case. at N. C. Central University. The Across the country, universities deny Pope Center sponsored both talks students and faculty constitutionally with a grant from the Arthur Rupe protected rights to freedom of speech Foundation. and expression. Welch noted that the classics, The Foundation for Individual often called Great Books, some- Rights in Education (FIRE), a Phila- times are dismissed as having been delphia-based organization, regularly written by “dead white males.” issues alerts about clampdowns on the Not only is that untrue (the writ- rights of freedom of speech. Donald ing of Frederick Douglass, for ex- Downs, a professor of political science, the right to acknowledgment, and the endoes,” “teasing,” “jokes,” and “com- ample, is among the classics), but law, and journalism at the University value of privacy for all members of ments or inquiries about dating.” the implication that the classics of Wisconsin at Madison, has called have little to say to minorities or the Duke community.” Its computing • Livingstone College prohibits FIRE “the leading professional organi- women is wrong. Welch explained and electronic communications policy, any conduct or expression that is “of- zation dedicated to academic freedom that DuBois and Cooper valued however, restricts what students can fensive or annoying to others.” in higher education.” Great Books because they help the send by e-mail. Duke received a yel- • UNC-Greensboro “will not In February, the John W. Pope “active cultivation of oneself,” not low-light ranking. tolerate any discrimination against, or Center for Higher Education Policy because they provide a “passive “Some university policies may disrespect for persons.” joined with FIRE to report on the state transmission of customs.” look like rules to protect decorum or • Campbell University prohibits of freedom of speech in North Carolina. For DuBois, reading the clas- foster good manners,” writes Rob- “obscene or indecorous language or The new report, “Do North Carolina sics offered an alternative to the inson, “but they are often so broad conduct indicating his/her disapprov- discrimination and mistreatment Students Have Freedom of Speech?” that they can stifle the free exchange al of any matter.” of blacks. Welch quoted a poignant by the Pope Center’s Jenna Ashley of ideas.” Speech-code prohibitions The publication and distribution passage from DuBois: “I sit with Robinson, is based on careful scrutiny against “innuendoes,” “teasing,” and of Do North Carolina Students Have Free- Shakespeare, and he winces not. of speech codes, harassment policies, “disdain,” for example, can repress dom of Speech? reflect the Pope Center’s Across the color line I move arm restrictions on e-mails, and other regu- free expression. ongoing interest in encouraging di- in arm with Balzac and Dumas, lations. The Pope Center worked with Robinson quotes FIRE: “The versity of thought at North Carolina’s where smiling men and welcom- Azhar Majeed, FIRE’s associate direc- university setting is where students colleges and universities. Copies of the ing women glide in gilded halls. ... tor of legal and public advocacy, who are most subject to the assignment of paper are available from the Pope Cen- Is this the life you long to change evaluated school policies using FIRE’s group identity, to indoctrination of ter and also are located on the Web site into the dull red hideousness of methodology. The report covers 55 radical political orthodoxies, to legal at popecenter.org, along with details Georgia?” four-year colleges in the state, public inequality, to intrusion into private of the specific violations at each North Building on the idea that and private. conscience, and to assaults upon the Carolina college or university. CJ reading classics spurs self-devel- The report shows that no school morality of individual rights and re- opment, Welch discussed Booker truly protects freedom of speech. The sponsibilities.” T. Washington. Critics say that report, which lists the rating of each Among the examples of policies Jane S. Shaw is president of the John Washington, a proponent of in- school on freedom of expression, does that restrict speech in North Carolina: W. Pope Center for Higher Education Pol- dustrial education for blacks, had not include a single “green light” • Davidson College bans “innu- icy (popecenter.org). little sympathy for arts or even the — FIRE’s signal that schools do not traditional education espoused by threaten students’ free-speech rights. DuBois. Welch disputed that claim. More than half — 34 schools — He quoted a passage from Wash- in North Carolina received “red-light” ington showing his admiration of rankings, meaning that they “clearly the black artist Henry Tanner, and and substantially” restrict freedom of Welch explained that Washing- speech. Another 16 schools received ton’s emphasis on active involve- a “yellow-light” ranking, indicating ment in productive work reflected his concern with developing the that the school has some policies that inner person. “could ban or excessively regulate pro- Welch received his Ph.D. at tected speech.” the University of Virginia. His re- A few private schools, out of con- search interests are in poetry and viction, place religious values higher African-American literature, es- than freedom of speech. They are pecially in the ways that poetry marked in the Pope Center report as engages intellectual and social “not rated,” and no criticism is intend- history. At N.C. State, he teaches ed, explains Robinson. Their choice to courses in world literature, Ameri- restrict speech — and to inform their can literature, and Africana stud- students — reflects the diversity of the ies. CJ nation’s institutions. But many private schools claim to Compiled by Jenna Ashley Rob- provide open inquiry yet do not, says inson, campus outreach coordinator Robinson. She cites Duke University as for the John W. Pope Center for High- an example. It states that the university er Education Policy (popecenter.org). “cherishes freedom of expression, the diversity of values and perspectives inherent in an academic institution, MARCH 2010 | CAROLINA JOURNAL PAGE 13 Higher Education Opinion Requiem for a Heavyweight: Bowles Announces His Resignation was feeling rather intimidated at rude because of po- transparency. He became public, Bowles circled the my first University of North Caro- litical animosity — is a genuinely de- wagons and defended Easley, N.C. lina Board of Governors meeting unless he dismissed Issues cent man who State chancellor James Oblinger, and Iin the fall of 2007. It was a big step up me without a sec- sought substantial provost Larry Nielsen. from the suburban New Jersey town- ond thought. in improvements, as After serious ethical offenses ship councils and planning boards I I wondered Higher Education well as a dangerous were proven, Bowles’ failure to launch used to report on. about the man I had political infighter an investigation hurt his reputation. As I gazed over the Spangler just met. I knew with an agenda. Still, while there have been scandals Ballroom where the meetings are held, only that he was a And he told on his watch, none — including Mary the gathering looked more like a so- successful financier me in an e-mail to Easley’s job — were caused by his ap- cial event than a governance meeting, who worked for “never pull your pointments (although there might be with fashionably Clinton during the Monica Lewinsky punches” when I was criticizing him. one brewing at N.C. Central). dressed people ex- mess, and that he had lost of couple He is a complex Southern stew of qual- He also never approached the changing laughs of U.S. senatorial elections. Was he ities that inevitably made him rich, biggest problem in the university sys- and hugs before truly this open and friendly, or was he famous, popular, powerful — and ef- tem: the left-wing ideological bias that getting down to merely keeping his “enemies” close at fective. dominates academia. But if he was business. I knew hand? After all, no one could have the Bowles had previously per- not the UNC president conservatives that one of the career that he had formed on much wanted, he was perhaps the best they governors was a without learning larger stages than could get, given the state’s Democratic former governor how to disarm, the UNC presi- dominance. of North Carolina, cajole, and charm dency, and he In the final analysis, he must and I knew that JAY the opposition. overwhelmed his be commended for his public service the president of In time, I provincial sup- without regard for personal gain. It is the university sys- SCHALIN realized that he porting cast. For hard to imagine Bowles being corrupt tem had served as is many conflict- example, UNC on his own behalf. His family has con- President Clinton’s ing things. He is Tomorrow began tributed much more to the university chief of staff. somebody who as an indepen- system over several decades than he As a new employee of a conserva- directed his staff dent commission received in total salary (he also do- tive-leaning think tank in an academic to cooperate fully launched by the nated a $125,000 raise to need-based setting where the politics trend liberal, with critics (me) Board of Gover- scholarships). I had no problem being anonymous. from the opposing nors, but once he Bowles’ policies and actions My job was to report on the meeting, side of the political adopted it as his have often frustrated, angered, and so I sought a seat where I could be a spectrum, know- own, it produced bewildered me. Yet, with his re- Soon-to-retire UNC President Erskine mere “fly on the wall.” ing that I might Bowles a blueprint for the tirement impending, I can only re- A tall, slender man with thick use that help to university sys- spect a man who aids and encour- glasses and thinning brown hair in- attack his policies tem — to which ages his most ardent critic, in order troduced himself: “Hello, I’m Erskine in the op-ed pages. He is also some- all policy changes must adhere — that to be sure he’s getting all sides of the Bowles.” He was gracious and wel- body who could “cuss out” a student mostly echoed his wishes. story with which to make decisions. coming, and knew who I was. His at- government representative to get the His legacy includes his involve- There soon will be big shoes to tention flustered me. I mentally kicked young man on board with his policies ment in the Mary Easley affair, in fill in Chapel Hill. CJ myself for giving a bad first impression (according to the young man). He is which the former governor’s wife im- — he probably walked away thinking a part of North Carolina’s Democratic properly was given a sweetheart job Jay Schalin is senior writer for the that I wasn’t the swiftest boat in the machine, which is gaining a reputation and an outlandish raise at N.C. State John W. Pope Center for Higher Education lake or that I had been deliberately for corruption, yet he favors greater University. When improprieties first Policy (popecenter.org). PAGE 14 MARCH 2010 | CAROLINA JOURNAL From Page 1 Global TransPark Broke With No Way to Retire Debt

Continued from Page 1 dents attending public universities and community colleges. In 2009, the Spirit, established in 2005 as a treasurer’s office reports that 88,000 spin-off of Boeing Commercial Air- students were receiving assistance planes, is the world’s largest indepen- from the program. dent supplier of commercial airplane As of Jan. 31, the principal on the assemblies and components. Spirit loan to GTP from the Escheat Fund is sought business from Boeing and its $21,741,952 and the accumulated ac- main competitor, Europe-based Air- crued interest is $15,712,955, for a total bus. of $37,454,907. In 2006, state Commerce Secre- The General Assembly passed tary Jim Fain led a recruitment team legislation last year extending the to court Spirit. Gov. Mike Easley and due date to Oct. 1, 2011. The bill also other state officials announced the required the GTP Authority to report Spirit project in May 2008. Spirit chose “its strategic, business, and financial the GTP after winning a contract with plans. The report shall include the Au- Airbus to design and produce the com- thority’s proposed schedule to achieve posite fuselage structure for a new air- financial self-sufficiency and proposed craft model, designated the A350XWB. schedule to repay the Escheat Fund” to In April, Spirit will take pos- the House and Senate Appropriations session of the nearly completed Subcommittees on Transportation on 500,000-square-foot manufacturing or before May 15 of this year. building on a 304-acre site adjacent to the 11,500-foot GTP runway. Golden LEAF granted $100 million to the TransPark before Dan Gerlach took over GTP facts The company plans to hire 250 as the foundation’s president. Gerlach wonders how the TransPark will replay the nearly $37 million it owes the state Escheats Fund. (CJ photo by Don Carrington) The General Assembly created employees the first year and expects the GTP Authority in 1991 as a state to exceed 1,000 after six years. Average dies in excess of $200 million to attract the funds from North Carolina’s share agency located within the N.C. Depart- annual pay is expected to be $48,000, the company. If Spirit hires 1,000 work- of the multistate settlement with the ment of Transportation. A 1992 study or about $21,000 more than the average ers, the cost to taxpayers may exceed nation’s four largest cigarette makers. commissioned by the state projected salary in Lenoir County. $200,000 per job. In September 2008, the board ap- that the park could be responsible for GTP’s ‘anchor tenant’ A major component of North pointed Dan Gerlach, a former budget more than 100,000 new jobs by 2010. Carolina’s incentive package is an adviser to Easley, as the foundation’s More than $140 million in public funds GTP’s Waddell refers to Spirit as agreement for GTP to pay $100 million president. Prior to joining the Golden have been spent on the 2,400-acre GTP the park’s anchor tenant, as if it were toward Spirit’s building. GTP will own LEAF staff, as a top aide to Easley, since the project was launched. similar to a Sears or Belk’s department the structure and lease it to Spirit for Gerlach was a member of the state’s State officials envisioned the proj- store at a shopping mall. She believes $100 per year. Since rent is the park’s recruitment team that worked to land ect as an air cargo airport surrounded Spirit will attract other companies, al- primary source of revenue, Spirit will the Spirit project. by just-in-time manufacturing facili- lowing the GTP to generate enough not generate enough money to help In an interview, Gerlach also ties, but the concept has failed to at- revenue to pay back the loan. GTP repay its debt. The TransPark ob- said he didn’t know how GTP plans tract any just-in-time manufacturers. Gov. Beverly Perdue shares simi- tained a $100 million grant from the to repay the nearly $37 million Spirit’s finished components will be lar thoughts with Waddell. “She be- Golden LEAF Foundation to secure the owed to the state treasurer’s office. shipped by truck, rail, and then sea to lieves that as the park becomes more Spirit project. To date, including the grant to the final assembly location in France. successful in coming years, a pathway GTP, Golden LEAF has made more State Transportation Secretary to repayment will emerge,” spokes- Golden LEAF’s role than 900 grants totaling over $400 mil- Gene Conti, appointed chairman of woman Chrissy Pearson told CJ. The $100 million grant from lion. the GTP board by Perdue, was excited The anchor tenant came at a high Golden LEAF (Long Term Economic The remaining half of the to- about the Spirit project. “The coming of cost to the public. While Spirit officials Advancement Foundation) to the GTP bacco settlement money is divided Spirit to GTP is likely among the most have stated the company plans to in- Authority is the largest in the founda- equally between the Health and Well- important events in the business histo- vest approximately $500 million in the tion’s history. ness Trust Fund Commission, which ry of our state,” he wrote in a commen- facility, state officials committed subsi- Golden LEAF receives one half of spends its money on health programs, tary for The Charlotte Observer. “Now, and the Tobacco Trust Fund Commis- the GTP can leave the long struggle for sion, which assists tobacco farmers and respectability behind,” he said. others in tobacco-related employment But the respectability Conti is “displaced” by the declining use of to- counting on will not satisfy GTP’s bacco. debts. GTP’s audited financial state- Escheat Fund ment for the fiscal year ending June 30, The GTP loan authorized by the 2008, provides some insight into the General Assembly was from a fund park’s financial condition. The GTP managed by the state treasurer known had total operating revenues of $1.2 as the Escheat Fund. million and expenses of $4.5 million, An escheat is the succession of for a net operating loss of $3.3 million. unclaimed property to the state, of- To continue operations, GTP re- ten the result of someone dying with- lies on the General Assembly for a $1.6 out a will or any known heirs. It also million annual grant and the postpone- includes any property or funds un- ment of payments to the treasurer’s of- claimed or abandoned, including util- fice. ity deposits or bank deposits. The cur- In addition to the Escheat Fund rent total value of the Escheat Fund is loan, GTP also has outstanding loans $459 million. of approximately $3 million to the U.S. The interest on the fund goes to Department of Agriculture and almost The Golden LEAF Foundation, created to distribute funds from North Carolina’s the State Educational Assistance Au- $2 million to private lenders. Waddell share of the multistate tobacco settlement, is headquartered in Rocky Mount. (CJ thority to pay for grants, loans, and told CJ that dedicated lease revenues photo by Don Carrington) scholarships for North Carolina stu- cover those loans. CJ MARCH 2010 | CAROLINA JOURNAL PAGE 15 From Page 1 Scandals, History of Corruption to Sting Dems in ’10?

Continued from Page 1 al-estate swap with Easley in the 1990s for a home on Bald Head Island, an ex- is doubly important because the rul- clusive coastal development south of ing party will oversee redrawing the Wilmington. Rand resigned from the boundaries of legislative and congres- Senate Dec. 31. sional districts to reflect the 2010 cen- In total, 11 Democratic incum- sus. bents have either resigned or said they Midterm elections typically break won’t seek re-election to the General in the minority party’s favor, and the Assembly, including Sens. Julia Bose- trend at the national level favors the man of New Hanover County, David GOP, lending credence to the notion Hoyle of Gaston County, and Larry that Republicans could shake things Shaw of Cumberland County. up at the state level, too. The number of retirements could “There are clear indicators that lead to a power shift in certain districts, the tide is moving against Democrats,” said Peace College political science said N.C. State political science Profes- professor David McLennan. Even so, sor Andrew Taylor. “Republicans are he doesn’t see a tidal wave of change starting to raise a lot of money, starting coming. to recruit good people.” “The gerrymandered districts are Although Democrats easily to the point where voters look to their walked into office in 2008, a deepen- representatives and say they haven’t ing recession has caused their popu- been indicted and have done a good larity to wane. Gov. Bev Perdue’s ap- Former federal prosecutor Kieran Shanahan, a Republican, speaks to reporters about job, and they’ll re-elect them despite proval rating stood at 30 percent in the January indictment of Mike Easley aide Ruffin Poole. (CJ photo by Don Carrington) problems with Democrats overall,” mid-February. Since his inauguration, McLennan said. President Obama’s approval rating has of Elections fined Easley’s campaign federal criminal indictment of Easley That scenario has played out in dipped by 20 percentage points and $100,000, partly for free flights Easley right-hand man Ruffin Poole; Nick previous years. Although Republicans his disapproval spiked by 30 percent- failed to disclose on campaign finance Garrett, who completed an expensive are hopeful this election cycle could be age points. reports. The board also referred the renovation project on Easley’s South- different, Democratic corruption hasn’t Beyond a sagging economy and case to local prosecutors. port home; and McQueen Campbell, translated into losses at the ballot box, record unemployment, scandal might McQueen Campbell, a Raleigh who regularly provided flights to Ea- even when scandals dominated the play a role in how voters cast their bal- businessman and longtime Easley sley that were not disclosed on cam- headlines. lots. Top-level Democrats have found friend, provided many of the free paign reports. In the 2006 election, Republicans themselves the targets of state and fed- flights. Easley twice appointed Camp- State Democrats also have filed hoped to capitalize on former House eral probes into issues ranging from bell to the N.C. State University Board a complaint about a previously un- Speaker Jim Black’s ethics woes that campaign finance to real estate deals. of Trustees, where he became chair- reported helicopter flight by former ultimately sent him to jail. Far from los- This year, Republicans hope the cor- man before resigning in 2009. Camp- Charlotte Mayor Pat McCrory, a Re- ing ground, though, Democrats rode a ruption rap will stick. bell played a role in helping Easley’s publican, during his 2008 run for gov- national wave of discontent with Re- ernor. McCrory amended his cam- publicans and expanded their majori- Easley’s shadow wife, Mary, secure a $170,000 per year job at the university. paign report and paid for the flight in ties in the state House and Senate. Ask political analysts who tops Easley has yet to be charged, but late February. A similar story unfolded in the an indictment could come as early as months leading up to the 2008 election. their list of tainted public officials go- Retirements feed challengers ing into the midterm elections, and this spring. Former federal prosecutor One of Black’s top legislative allies, former Rep. Thomas Wright of Wilm- they’ll say Mike Easley. The former Kieran Shanahan told reporters in late Although Easley’s troubles have ington, was ousted from the General two-term governor is the subject of January that Poole’s indictment “reeks dominated the news cycle, other top Assembly and convicted of fraud and wide-ranging state and federal in- of conspiracy,” and that more is to Democratic leaders have faced scan- obstruction of justice. vestigations into shady pay-to-play come. “Clearly, the No. 1 target of this dal-related criticism of their own. But Democrats didn’t suffer at schemes, backroom deals, and cam- is the former governor,” he said. Worse for Democrats, several of their the polls in November, keeping control paign finance violations. Perdue has tried to distance her- key leaders in the Senate have resigned of the governor’s office, ousting the As first reported by Carolina self from her predecessor, not always or announced they won’t run for re- Republican state auditor, and coming Journal in April 2006, Easley bought successfully. In response to two com- election, creating competitive districts close to beating the Republican com- a choice lot in Cannonsgate, a coastal plaints from Republican Party Chair- where few existed before. missioner of labor. They also main- man Tom Fetzer, the State Board of development at Bogue Sound, at a State Sen. R.C. Soles, a Tabor City tained comfortable control of the Gen- Elections recently opened an investiga- bargain price. Closing documents ob- Democrat and the longest-serving leg- eral Assembly. tained by The News & Observer of Ra- tion into Perdue’s campaign finances. islator in the General Assembly, was That record of victories isn’t sur- leigh last year show that Easley got Perdue’s campaign has admitted indicted by a Columbus County grand prising to Democratic strategist Brad an additional 25 percent discount of that she failed to report six flights from jury in January for shooting one of his Crone. He said the corruption rap $137,000 at the closing in December private aircraft owners between 2004 former legal clients. Soles has admit- doesn’t translate into the lives of av- 2005. and 2006. The campaign valued the ted to the shooting but said it was in erage voters more worried about jobs Easley accepted the deal while flights at $2,177 in filings submitted self-defense. In late December, he an- and the economy. his administration allegedly expedited Nov. 18 to the Board of Elections. nounced that he wouldn’t seek another “The people inside the beltline environmental permits for Cannons- In August, Perdue’s campaign term in the Senate. get excited, but in Rockingham they gate developers. Ruffin Poole, Easley’s reimbursed aircraft owners around Scandal also has touched another don’t know who Jim Black is, and they ex-aide and go-to-guy, helped shep- $18,000 for flights not reported during top member of the legislature — for- don’t have a clue who Ruffin Poole is,” herd the permits through and gained her 2008 gubernatorial bid. At press mer Senate Majority Leader Tony Crone said. “They only know if their significant personal benefits from do- time, Perdue had disclosed 31 flights Rand. The attorney general’s office has unemployment benefits are ending.” ing so, according to a 51-count grand that had not been reported earlier. opened a probe into state purchases Taylor said voters’ understand- jury indictment in late January. Poole’s Fetzer’s complaint also noted from an electronic surveillance sup- ing of Democrats is beginning to criminal trial is tentatively set for April that among Perdue’s campaign donors plier with ties to Rand. The company’s change. As to a repeat of 1994, when 26. were figures who were subpoenaed to former president has accused Rand, Republicans achieved sweeping gains Investigators also are probing testify at the election board’s investi- who denies any wrongdoing, of insid- at the state and federal level, he said, fundraising malfeasance by the for- gation of Easley. They include Lanny er trading. “There’s no doubt at this point in mer governor. After a weeklong hear- Wilson, who was referred to as the As CJ reported in November, time that the Republicans will pick up ing in October, the N.C. State Board “Wilmington financier” in a 51-count Rand also went in on a questionable re- seats. The question is how many.” CJ PAGE 16 MARCH 2010 | CAROLINA JOURNAL Local Government

Town and County

CMUD misbilling New Assessment Financing Stirring Ire The Charlotte-Mecklenburg foreclose.” Utilities Department will assign In other states, the bonds have been hammered by the additional people to review water New laws allow project costs recession. In Florida, community development districts is- usage. The move comes after in- sued $6.5 billion in municipal bonds to pay for improve- creased public protests about too- to be distributed more widely ments like roads and utilities. high water bills, reports The Char- Richard Lehmann, a Forbes columnist who is an au- lotte Observer. thority on municipal defaults, said about 120 of Florida’s The utilities department among neighboring owners bond issuances are in default, and he expects about 70 more has fitted its water meters with By Sarah Okeson to default within the next year. transmitters to send usage data to Contributor “The state was too liberal in giving bonding author- specially equipped trucks as they MOORESVILLE ity to municipalities,” Lehmann said. “The system worked drive through a neighborhood. Mooresville developer whose companies own land very well when times were good, but when the crunch came CMUD calculates monthly water near Interstate 77 wants a bridge built over the high- they found there was no real collateral and no pressure on bills based upon this data. Using way that would improve public access to his proper- the builder not to walk away from the project.” the transmitters saves money for Aties, but which, under recently enacted state laws, would be In North Carolina, the Local Government Commission the utility as compared with hav- paid for by area landowners. oversees the finances of local government, including bonds ing someone manually read each The fees from nearby homeowners would repay that the counties and towns want to issue. The commission individual meter. bonds imposed through a special assessment district. New has not received any formal requests to approve issuing The utility recently has faced laws passed in 2008 and 2009 special assessment district a growing number of complaints expanded special assessment bonds, but it did look at a from residents about high bills, financing, a method previ- feasibility report about an- possibly resulting from erroneous ously used to fund things other Mooresville project, meter readings. CMUD has con- such as sidewalks and curbs. an $800 million, 350-acre firmed that about 60 percent of the “That assessment mixed-use development approximately 250,000 transmit- would be on elderly resi- called Langtree on the Lake. ters in use are of an older variety dents,” said Henry Brantley, Maia Setzer, Moorev- that has a 6.4 percent chance of whose family has owned ille’s director of administra- failing at some point. This creates land in the area since the tion and finance, said the the potential for misbilling. 1700s. “The way the general commission didn’t deny To catch these, CMUD is statute is now every land- the proposal formally, but adding a “second level” of peo- owner in North Carolina found that the feasibility ple to review accounts for errors. runs the risk of getting into report did not justify mov- CMUD’s computer system now the same situation.” ing forward with the proj- ect. Setzer said the project identifies about 50,000 accounts Mooresville officials needed some type of credit a month that possibly could have said they never intended for enhancement, such as a letter of credit from the developer errors, though fewer than that are homeowners to help pay for the bridge; they wanted only the owners of the 28 commercially zoned properties to fi- saying it had additional financial backing. checked by CMUD staff. nance the project. A majority of the landowners who control David Parker, a partner in the Langtree at the Lake at least 66 percent of the property would have to agree to the project, said the project has a $25 million commitment let- assessment before it could go forward, and town officials ter from a backer he won’t identify; he hopes the town will say Mooresville probably would foot about a fourth of the ask the Local Government Commission soon to approve the Oak Island wells cost. bonds. Opponents of the bridge over I-77 question whether The town of Oak Island “Most of our funding options are what I would call the overpass is even needed. A study done by WSP Sells thinks it may have reached a com- very traditional,” said Tim Brown, the planning director for said the bridge would reduce delay along North Carolina promise with state regulators to Mooresville. “To advance a common goal often takes work- Highway 150. allow most residents to continue ing together. Some of these nontraditional funding methods Automotive Collision Experts, a company headed by using irrigation wells after the can be the right method to advance development.” developer Steve McGlothlin — who wants the overpass — town’s new $130 million wastewa- Mooresville, about 25 miles north of Charlotte, is home paid half of the $85,500 cost of the feasibility study. Moores- ter system is completed. To do so, to many NASCAR racing teams and is known as “Race City ville paid the other half. Automotive Collision Experts and Oak Island must demonstrate that USA.” another company tied to McGlothlin, Oates Ventures LLC, the new system will perform as Under the previous limited application, a city would own about 54 acres on the east side of I-77 near Oates Road. well or better than the current sys- install the improvements and receive payments from the McGlothlin did not return phone calls seeking comment for tem in protecting water resources, landowners who benefited from them. The debt had to be this story. reports the Wilmington Star-News. repaid in 10 years, making the financing impractical for David Hartgen, an emeritus professor of transporta- Town officials are confident large, expensive projects. tion studies at the University of North Carolina at Charlotte, reviewed the feasibility study for CJ and said the bridge they can demonstrate that. Under the new laws, improvements now can be repaid would not reduce congestion along Highway 150. “Nothing “Our system as installed ac- for up to 30 years and can finance everything from parking would happen if you built this road,” Hartgen said. “Noth- complishes that,” said Mayor Bet- facilities to traffic signals. Typically, all the property own- ers inside a district’s boundaries pay an assessed fee. Such ing would happen on 150. It looks to me like this is a pro- ty Wallace on the requirement. districts are established after the property owners who want posed economic development plan that is hiding behind the State regulations require the improvements petition the local government. The 2009 smokescreen of traffic congestion reduction.” that wells within 100 feet of law was sponsored by state Sen. Fletcher Hartsell, R-Cabar- Neil Burke, the town’s transportation planner, said the sewer lines be either relocated rus. bridge is “kind of a multifaceted transportation improve- or closed to protect munici- “Many cities and counties were interested in both the ment. … This improvement was not an end-all, be-all for pal drinking water supplies. ’08 and ’09 legislation since the general bond market had 150, but as east-west connectivity,” he said. The town has tried for sev- dried up,” Hartsell told Brantley in an e-mail. He did not Opponents also question why the map for what could eral years to convince state regu- return phone calls or an e-mail from Carolina Journal. The be the special assessment district is drawn around the lators to make an exception for bonds are often called “dirt bonds” because they are se- homes of Commissioner Chris Carney and Planning Board wells on Oak Island. It estimates cured by land and are unrated. member Larry Stamm, meaning the local officials wouldn’t that 66 wells would be affected by “They are secured solely by the value of the property,” pay an assessment fee if homeowners are assessed. the regulation in the first portion said Eric Braun, a partner at K&L Gates in Raleigh. “It’s like Burke, who drew the map, said the map does not de- of the system to open. CJ a mortgage except there’s no ultimate liability on the part of pict the assessment district. “It’s an area of influence,” he the town. If the property owner doesn’t pay, the town can said. “It’s not necessarily who would get assessed.” CJ MARCH 2010 | CAROLINA JOURNAL PAGE 17 Local Government Court: Subdivision Notice COMMENTARY Local Government Isn’t Always Required And Police Issues By Michael Lowrey was required before the preliminary Associate Editor approval was issued. he local news business is Fayetteville’s mayor and city coun- RALEIGH In March 2008, CWNA and a built on the occurrence of cil rather bluntly told the FPD that ow much notice do local gov- number of Coventry Woods and Ce- out-of-the-ordinary events. it should release the same sort of ernments have to provide dars East residents sued the city of IfT everything runs well, if there are basic information that other major nearby property owners about Charlotte, the planning commission, no unusual situations, then there is police departments do in similar Hplans for new subdivisions? And does and Independence Capital to overturn very little news. circumstances. it matter if those property owners had the preliminary approval of the subdi- In recent months, the police “Let’s inform the public,” the blocked successfully an earlier rezon- vision plan for Independence Woods very much have been in the news Fayetteville Observer quoted Mayor ing proposal for the tract of land in with its denser, infill development. in Charlotte, Durham, and Fayette- Pro Tem D.J. Haire as saying. “Let’s question? The state’s second-highest After a Superior Court judge ville. In all three cases, the public make people aware.” court concluded that government of- ruled against them, the homeown- and press are interested in already- The Durham Police Depart- ficials may not have to provide nearby ers and neighborhood associations serious situations worsened by ment repeatedly made news in residents with any notice at all. brought the matter before the Court of questionable police policies. 2009 by paying excessive overtime Independence Capital Realty Appeals. Marcus Jackson was a Char- to the officer who oversaw its LLC owns an undeveloped 16-acre On appeal, CWNA argued the lotte-Mecklenburg police officer for program, allowing police officers tract of land in east Charlotte next to process for staff approval of the sub- less than a year. He’s now in the to work private security jobs. Of- the existing Coventry Woods and Ce- division plan was simply unfair, as it Mecklenburg County jail await- ficer Alesha Robinson-Taylor was dars East subdivisions. The parcel “wholly fails to afford aggrieved per- ing trial for assaulting fired for claiming to was zoned as R-4 sons any notice women sexually while on have worked 79 hours a for single-family The North Carolina Courts of staff decisions, duty. The Charlotte Meck- week. Deputy Chief B.J. houses. whereby such lenburg Police Depart- Council was forced into In July 2003, person could avail ment and Charlotte City retirement for signing off the company tried him or herself Council, meanwhile, are on most of the overtime to have the tract of such [appeal] doing their best to avoid payments. rezoned to a high- rights.” discussing why Jackson The secondary- er density. The This de- was hired, and anything employment program Coventry Woods nial of notice, having to do with the two that Robinson-Taylor N e i g h b o rh o o d they contended, suspensions he drew in MICHAEL oversaw had issues of its Association op- amounts to “a his short time on the force LOWREY own, though these pre- posed the rezon- “fundamental de- before he was arrested dated her arrival. Some ing. In August 2004, the Charlotte City nial of due process,” which is prohibit- and subsequently fired. after-hours security work Council rejected Independence Capi- ed by both the 14th Amendment of the The CMPD has admitted Jackson is more demanding than others. tal’s rezoning request. U.S. Constitution and Article I, Section never should have been hired and Police officers typically prefer That did not end the matter, 19 of the North Carolina Constitution. has changed its hiring process. earning extra dollars on assign- however. On Feb. 14, 2005, Capital For such a claim to succeed, the Still, it’s a story with legs, ments that involve a low prob- Realty sought preliminary approval appeals court noted that a constitu- largely because local officials have ability of making arrests. Directing from the Charlotte-Mecklenburg Plan- tionally protected property interest created the perception that they’re traffic at a Sunday church service ning Commission for a subdivision must exist. The N.C. Supreme Court, in stonewalling. Police personnel is a highly desired assignment; pa- plan for the land. The proposal for a a 1988 decision Armstrong v. Armstrong, records ordinarily are confidential. trolling the parking lot at a club on development to be called “Indepen- explained that “[t]here is no such thing Local governments can release re- a Saturday night, not so much. As dence Woods” included a request for as a vested right in the continuation of cords that might bolster public con- a 63-page city audit report demon- a “density bonus” allowing 72 single- an existing law.” fidence in the police department. strated, a great deal of favoritism family homes to be built, instead of the Thus, if the claim by Coventry A majority of the Charlotte City was displayed in who got the easy 58 houses typically allowed under R-4 Woods and Cedars East residents sim- Council isn’t even interested in jobs. zoning. Coventry Woods and Cedars ply is based upon the expectation that going into closed session to discuss For local government of- East residents were not informed that the status quo would continue, then such a move in Jackson’s case, sug- ficials, crime is not a glamorous a subdivision proposal had been filed. they do not have a property interest gesting the council is quite content topic. There aren’t many ribbon- On Dec. 13, 2006, the planning sufficient to support a due process with the way he was supervised. cutting ceremonies to attend. commission’s staff gave preliminary claim. In Fayetteville, meanwhile, Elected officials don’t get to hand approval to the subdivision plan. The This is exactly what the Court a serial rapist could be on the out grants to well-meaning service city’s subdivision ordinance requires of Appeals decided. It found that the prowl. There have been seven cases organizations. only that the developer be notified of plaintiffs were “essentially relying on reported of a masked man break- But unless police depart- the staff’s decision. A notice about the a belief that they are entitled to free- ing into residences and attacking ments adopt and enforce coherent preliminary approval was posted on dom from the inconvenience that they women since July. The police didn’t policies, they will create news. It the planning commission’s Web site on believe would result in the event that inform the public of this danger may not be the kind of news that Jan. 5, 2007. Independence Capital was allowed to until January, however. mayors, county commissioners, CWNA first became aware of develop Independence Woods consis- It had been the Fayetteville and city and county managers Independence Capital’s plans for In- tently with the approved preliminary Police Department’s policy not to want to deal with. dependence Woods in July 2007, well plan.” disclose the existence of reported And truth be told, it’s not the after the 10-day window to challenge Because the decision by the three- rapes except through a public sort of story that this journalist pre- the planning commission’s staff deci- judge appeals panel was unanimous, records request. If citizens looked fers to write about. CJ sion had passed. the N.C. Supreme Court is not required at the department’s Web site, they Its attempts to challenge the to take the case if CWNA and the resi- could track other crime in the city, Mi- subdivision plan were rejected as un- dents choose to appeal. but not rapes. chael Lowrey is an associate editor of timely. Charlotte’s Zoning Board of The case is Coventry Woods v. City That has since changed, as Carolina Journal. Adjustment also held that no hearing of Charlotte (09-611). CJ PAGE 18 MARCH 2010 | CAROLINA JOURNAL Local Government Local Innovation Bulletin Board Yadkin-Catawba Water Dispute Red Light Camera Backlash Parties OK Transfer Agreement By Michael Lowrey undeveloped land. cross the country, there’s a get the highest base pay but also Associate Editor growing backlash against earn the first shot at working over- It was 2009, however, before red-light cameras. Last year, time. RALEIGH Greensboro finally took in the three threeA states banned the devices, and “These are very good employ- he dispute over water rights be- subdivisions. A number of residents other jurisdictions are considering ees who follow the rules that have tween communities in the Yad- challenged the annexation, contend- kin and Catawba river basins banning or limiting them, reports been negotiated with the Team- ing that they had not been made aware Tis over. In late January, the two sides of the pending annexation when they USA Today. sters,” said Metro Transit general reached an agreement allowing Con- bought homes in the neighborhoods. There’s long been a percep- manager Chuck Kamp. cord and Kannapolis eventually to “We showed the court they [the tion that red-light cameras are more The opportunity exists for draw as much as 10 million gallons a agreements] didn’t run with the land a means of revenue collection for these drivers to earn substantial day from the Catawba River, reports and the people who bought the land localities than a safety tool. That amounts of overtime pay in part the Hickory Daily Record. were not bound by them,” the resi- notion is spreading and spurred because the contract also limits the The dispute began in 2006, when dents’ attorney, James Eldridge, said. successful legislation in Maine, Mis- number of part-time drivers that the state autho- Greensboro sissippi, and Montana last year ban- Metro Transit can employ — no rized the two officials estimate ning the devices. more than 15 percent of the number Cabarrus County that they spent Georgia didn’t ban the camer- of full-time drivers. communities to Cherokee $450,000 provid- as last year, but required stoplights Part-timers are also allowed to draw as much as ing services and equipped with the cameras to add a drive only morning and afternoon 26 million gallons making improve- second to yellow lights. Jurisdictions school routes. a day. A number to ments in the sub- using the cameras are frequently A state audit found the contract of Catawba Riv- divisions. criticized for shortening the dura- includes shift premiums for working er communities The city tion of yellow lights as a way to gen- evenings and Sundays, a practice challenged the Currituck has decided to erate extra revenue from red-light that is uncommon in the industry. transfer, arguing appeal Wilson’s runners. The Teamsters’ contact expired that it would im- ruling. In Dalton, Ga., the impact of at the end of December and the two pact adversely their economic devel- the new legislation was immediate. sides are negotiating a new deal. opment. Durham CON sale? In 2008, it issued 6,906 citations, in- The two sides eventually agreed Durham County may discon- cluding 624 in February. In February to mediation. Under the deal, Con- tinue its home-nursing operation. The 2009, with an extra second of yellow- Washington housing costs cord and Kannapolis will be able to move could save the county a half-mil- light time, the city issued only 125 draw 3 million gallons a day through A new report by the Washing- lion dollars a year plus a windfall from tickets. It ended its red-light camera ton Policy Center details the costs 2015. The amount would then rise to as much as 10 million gallons a day, the sale of its certificate of need, writes program at the end of the month. that state and local governments with the exact limit depending upon a the Durham Herald-Sun. “That sort of exposed the myth impose on construction in the state. number of factors, including whether The Durham County Health of why they’re there,” says Mayor Such costs make a significant impact drought conditions exist. Department has operated its visit- David Pennington. “It goes against on the state’s competitiveness. ing nurse service since 1963. In recent what I was told to begin with, which “We’ll do anything we feel neces- The paper, by policy analyst sary to make sure Concord and Kan- years, the health department has strug- is that they are for safety.” Brandon Houskeeper, describes gled to attract enough nurses to staff Government officials in other napolis comply,” said Hickory Mayor three broad types of government Rudy Wright. the program. In early 2009, it stopped areas are coming to a similar conclu- policies that affect construction accepting referrals from doctors for sion. The agreement does not end all costs: Building fees, such as impact wrangling over the issue. South Caro- new patients; since then, the number of “They were sold to us in a dif- fees; land use regulations, including clients it serves has fallen from 90 to 60. ferent manner than what they’re be- lina has sued North Carolina over the the state’s Growth Management Act; transfer, arguing that it should have It costs the health department ing used for,” says Illinois Rep. Jack and general state and local taxes. a say. The Catawba eventually flows about $725,000 a year to offer the in- Franks, who originally supported The impact of these policies into South Carolina, and the amount of home nursing visits, with $210,000 of the cameras. “The municipalities varies by community. Government water available from the river depends the cost reimbursed by Medicaid and have put them in areas where they’re policies add as much as $67,400, or on how North Carolina communities Medicare. just to make revenue.” 28 percent, to a single-family house use the water. The dispute between the “The realities are we can’t con- in Olympia. two states is before the U.S. Supreme tinue down this path,” Health Director Well-paid bus drivers In Vancouver, the impact is es- Court. Gayle Harris told county commission- timated at $54,000, or 25 percent of ers. “Most health departments no lon- John Nelson is the highest-paid the cost of a typical house. In Spo- G’boro annexation nixed ger provide home health service.” government employee in Madison, kane, it’s on the order of 21 percent, A Superior Court judge has over- State regulations mean the coun- Wisc. But he isn’t the city’s mayor or $38,000. turned Greensboro’s annexation of ty could receive a windfall by selling — or its police chief, comptroller, or Even the Washington chapter three McLeansville-area subdivisions. the service. North Carolina restricts city manager. He’s a bus driver, and of the American Planning Associa- In his decision, Judge Edwin Wilson the supply of certain medical services he made $159,258 last year, reports tion, a group that rarely plays up the ruled that residents could not be held through regulations requiring a “certif- the Wisconsin State Journal. And Nel- cost of regulation, concedes that gov- to annexation agreements signed by icate of need” to operate. The visiting son isn’t alone in making big bucks ernment red tape adds 17 percent to developers of the property, reports the nursing service has such a certificate, driving a city bus; six other Madison the cost of new housing construction Greensboro News & Record. which it received through a grandfa- bus drivers also earned more than in the state. When the Whitehurst Village, ther clause because the service was $100,000 last year. “As state and local officials Hartwood Village, and Laurel Park operating when the state adopted the The reasons behind the high continue to ignore or downplay subdivisions originally were created requirement. pay for Nelson and other senior bus their role in adding to the cost of from 1997 to 2000, developers asked The health department recently drivers are provisions in the contract construction in Washington, they Greensboro to provide water and sew- has received two unsolicited inquiries between the transit system, which is will continue to put local commu- er service. The city agreed, but on the about selling the service. Similar sales called Metro Transit, and the Team- nities and the state as a whole at a condition that the developers petition by other counties have gone for as sters. marked competitive disadvantage the city to annex the neighborhoods much as $4 million. Under the agreement, the driv- compared to the business climate in voluntarily. The three subdivisions, Harris was optimistic that those ers with the longest tenure not only other states,” notes Houskeeper. CJ which cover 151 acres and include currently using the service could find about 285 houses, are surrounded by private alternatives. CJ MARCH 2010 | CAROLINA JOURNAL PAGE 19 Local Government Counties, Metros Buying Abortions With Local Taxpayer Funds

By David N. Bass at a future meeting. Until then, the county manager’s Associate Editor decision apparently stands. RALEIGH “The board could elect to include it [again], but empers flared in Wake County Feb. 15, when they would be voting to do something that our coun- county commissioners met to consider nixing ty attorney has told us is illegal,” Gurley said. “We from their own health plan elective abortions, would be going out on a limb.” whichT are those deemed medically unnecessary. The Other local governments have taken up the meeting nearly deteriorated into a shouting match. issue. Town council members in Apex voted unani- Commissioners delayed a vote that would have mously Jan. 19 to eliminate elective coverage. Cum- ratified an earlier decision by county administrators berland County opted to do so administratively, with to limit the benefit plan to cover medically neces- the change taking effect March 1. Guilford County sary abortions only. But the testiness of that meeting hasn’t paid for the procedure in years. suggests that other communities may face heated Similar changes could be in store for Meck- discussions over a medical benefit state courts may lenburg County. Officials are reviewing their policy have outlawed. — which covers both elective and nonelective pro- Publicly funded abortion has been a flash point cedures — in light of Wake County’s decision, says at the national level, with pro-life lawmakers work- Mecklenburg County Commissioner Bill James. ing to ensure Medicaid and federal health insurance Wake County Board of Commissioners Chairman Tony Forsyth County Manager Dudley Watts is seek- reforms don’t cover the controversial procedure. But Gurley put the issue on the consent agenda for the Feb. ing legal advice on the situation and plans to con- 15 meeting. many leaders and residents are surprised that state sult with county commissioners as well, reports the and local taxpayer dollars already flow to it. tive abortions since 1999, but county administrators Winston-Salem Journal. The state’s most populous urban centers — in- changed the health insurance plan in early February Broader shifts are also in the works. A govern- cluding the Triangle, Triad, and Charlotte-Mecklen- to cover abortions only in cases of rape, incest, or ing board of the N.C. League of Municipalities opted burg area — cover abortions into the second trimes- when the mother’s life is endangered. Commission- in early February to nix elective abortion coverage ter. Counties and municipalities in the west and east ers had a chance to ratify that decision at the Feb. 15 from the sample medical plans it offers to the 522 — such as Asheville, Wilmington, Buncombe Coun- meeting, but opted to punt a final vote. municipal governments in its membership. ty, and New Hanover County — “In our case, we took the The standard plan will cover the procedure also offer the benefits. action because the research of only in cases of rape, incest, or when the mother’s A handful of local govern- the county attorney’s office said life is endangered, said Ellis Hankins, the league’s ments already have buckled un- Local governments that our current practice was not executive director. der pressure to remove elective legal based on the 1981 case that “Our board of trustees believes local governing abortion. House Minority Lead- around the state spending public funds for this bodies have local legislative discretion on this em- er Paul “Skip” Stam, R-Wake, must deal with purpose was not legal,” said ployee benefits issue, and they should determine it said the funding runs afoul of County Manager David Cooke. as they see fit. That’s why they made the change,” state law, and he’s willing to go coverage that Commission Chairman Hankins said. to court to prove it. Tony Gurley had added the item Other local governments are less enthusiastic “Our position is that any violates law to the board’s consent agenda, about tackling the controversy. Cary Mayor Harold city or county can stop doing it where routine and noncontro- Weinbrecht told The Cary News that abortion cover- tomorrow. That’s clear,” Stam versial matters go. Liberal com- age shouldn’t be addressed by a city council. said. “Our further position is missioners, however, began to Stam disagrees. He says a state Supreme Court that not only may they, but they have to stop.” debate the item without first moving it to the regular case from 1981 that he litigated offers “persuasive” Insurance giants CIGNA HealthCare and Blue agenda. evidence that property tax revenue can’t be used to Cross and Blue Shield provide many of the plans, Gurley called for a vote on the entire consent pay for elective abortions. which typically offer other family planning services agenda, which contained five other noncontroversial The case, Stam v. State of North Carolina, found that such as birth control and vasectomies. items. Passage failed on a 3-3 tie. But the issues, in- the General Assembly never gave counties the author- Wake County has paid for about a dozen elec- cluding elective abortion coverage, could be raised ity to pay for elective abortions with local tax dollars. CJ Help us keep our presses rolling Visit our Western regional page Publishing a newspaper is an ex- pensive proposition. Just ask the many http://western.johnlocke.org daily newspapers that are having trouble making ends meet these days. The John Locke Foundation It takes a large team of editors, re- porters, photographers and copy editors has five regional Web sites span- to bring you the aggressive investigative ning the state from the mountains reporting you have become accustomed to the sea. to seeing in Carolina Journal each month. The Western regional page in- Putting their work on newsprint and cludes news, policy reports and then delivering it to more than 100,000 research of interest to people in readers each month puts a sizeable dent the N.C. mountains. in the John Locke Foundation’s budget. That’s why we’re asking you to help defray those costs with a donation. Just It also features the blog The send a check to: Carolina Journal Fund, Wild West, featuring com- John Locke Foundation, 200 W. Morgan mentary on issues confronting St., Suite 200, Raleigh, NC 27601. Western N.C. residents. 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John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 20 MARCH 2010 | CAROLINA JOURNAL Books & the Arts

From the Liberty Library Review

• The underside of modern American politics — raw ambition, Civil Rights Museum Open After Turbulent Beginning manipulation, and deception — is re- vealed in detail by Andrew Young’s By Sam A. Hieb ment. At the start, visitors descend down an escalator into a riveting account of a presidential Contributor dark gallery portraying graphic images of violence against hopeful’s meteoric rise and scandal- GREENSBORO African-Americans, the most disturbing of which is the open ous fall. Like a nonfiction version of n 1990, I was present at the 30th anniversary re-enact- casket of Emmitt Till, the 14-year-old African-American boy All the King’s Men, The Politician of- ment of the historic sit-ins that became a key part of who was lynched brutally and murdered in Mississippi in fers a disturbing perspective on the the civil rights movement. It was a special moment be- the mid-1950s, allegedly for whistling at a white woman. risks taken and tactics employed by Icause it was the last time the men known as the Greensboro These events no doubt prompted the Greensboro Four a man determined to rule the most Four — David Richmond, Ezell Blair (now Jibreel Khazan), to plot their historic action, and with that in mind, visitors powerful nation on earth. Franklin McCain, and Joseph McNeil — appeared in public enter an auditorium where they are shown a 20-minute re- Idealistic and ambitious, together. Richmond would die just a few weeks later. enactment of the students planning the sit-ins. After the Young volunteered for the John It was also special because the downtown Woolworth’s movie, the guide lifted the screen to reveal a replica of the Edwards campaign for a North where they staged the sit-ins was still a dimestore. To see the students’ dorm room at North Carolina A&T State Univer- Carolina U.S. Senate seat in 1998 four men — older and grayer — walk into the store pretty sity. and quickly became the candidate’s much as it had been 30 years earlier and sit down at the Visitors then climb the stairs to the lunch counter, right-hand man. As the senator same lunch counter truly was a touching sight. where they watch another video re-enactment depicting became a national star, Young’s I recently returned to the site of the sit-ins for the first the scene inside Woolworth’s. From there, visitors wind responsibilities grew. time since witness- through a gallery In time, however, Young was ing the re-enact- filled with photos drawn into a series of questionable ment, except it’s and artifacts put- assignments that culminated with not a Woolworth’s ting the civil rights Edwards asking him to help conceal any more. The museum in per- the senator’s ongoing adultery. store closed soon spective. Replicas The Politician looks at the tra- after and remained of “colored only” jectory that made Edwards the ideal closed until last water fountains Democratic candidate for president month, when the and the colored and the hubris that brought him International Civil entrance to the down. More at www.macmillan. Rights Center and Greensboro train com. Museum opened depot show how just in time to cel- blacks were treat- ebrate the 50th ed as second-class • What has driven hundreds anniversary of the citizens. of thousands of people to take to the sit-ins. Again, the streets in protest since late February I was eager artifacts are mini- 2009? A cry of “enough” government to tour the mu- mal. On display expansion and interference and a seum, mostly be- are the briefcase of reassertion of individual liberty: a cause it has been J. Kenneth Lee, an first principle that became a rallying surrounded by African-American cry behind a movement. controversy dur- banker who hand- A New American Tea Party by ing the 17 years it ed out some of John O’Hara presents the voices be- took to complete. the first mortgage The museum’s loans to blacks, the hind the growing discontent among The Web page of the International Civil Rights Center & Museum in Greensboro everyday citizens with increased founders — Guil- is at www.sitinmovement.org. medical bag of Dr. government taxation, spending, and ford County Com- George Evans, a intervention. Visit www.wiley.com missioner Skip Alston and state Rep. Earl Jones, a former Greensboro doctor who treated patients at L. Richardson to learn more. Greensboro City Council member — have been polariz- Hospital, the city’s African-American hospital, and a 1950s- ing figures on the local political scene for years. After both era organ to represent black churches’ role in the civil rights the city and the county provided financial support for the movement. museum, questions about the handling of those finances Stronger exhibits feature photographs and newsreel • In Game Change, John Hei- constantly were being raised, with Greensboro citizens ul- footage from historic civil rights moments, including the lemann and Mark Halperin, two timately expressing their dissatisfaction with Alston and Montgomery bus boycott, the march across the Pettis Bridge of the country’s leading political Jones by twice voting down bond referendums providing from Selma to Montgomery, the March on Washington reporters, use their unrivaled ac- additional funding. (where Martin Luther King Jr. gave his “I Have a Dream” cess to pull back the curtain on In fact, Alston was the center of controversy right be- speech), and the Freedom Summer, when hundreds of white the Obama, Clinton, McCain, fore the museum’s opening when it was revealed that he students went to Mississippi to help register black voters. and Palin campaigns of 2008. brokered a property deal for an ownership group hoping to An entire wall is covered with the mug shots of those Heilemann and Halperin take build a federally subsidized 200-room luxury hotel across arrested while fighting for civil rights in the South, and it’s us inside the Obama machine, where the street from the museum. When members of the Greens- most interesting to read the brief profiles of the courageous staffers referred to the candidate as boro City Council questioned the hotel project, Alston re- people who put their own freedom on the line in helping “Black Jesus.” They unearth the quiet portedly threatened a recall movement before apologizing. ensure the freedom of others. conspiracy in the U.S. Senate to prod But I entered the museum with an open mind, sin- The tour takes about an hour, a good 20 minutes of Obama into the race, driven in part by cerely hoping it would live up to expectations. Museum which is watching video re-enactments. The museum is af- the fears of senior Democrats that Bill staff was very courteous, and guided tours took place ev- filiated with the Smithsonian, which (one hopes) will mean Clinton’s personal life might cripple ery hour, although unguided tours will be available later some quality revolving exhibits through the years. Surely Hillary’s presidential prospects. on. The artifacts are minimal, and most of the tour relies the museum also will be the focal point for many history Based on hundreds of in- on photographs and film footage. The lunch counter is still and civil-rights-related events. It certainly also will play terviews with the people who there, although the tour guide was careful to point out that a huge role in the continued revitalization of downtown lived the story, Game Change is a the stools and the section of counter where the four men Greensboro. reportorial tour de force that reads took their historic seats are now in their rightful place in the Admittedly, I was one of the many skeptics who ques- like a fast-paced novel. More at Smithsonian Institution. tioned whether the museum ever would actually open. www.harpercollins.com. CJ The tour is roughly in the form of a timeline, walk- Now that it has, I’m glad, though it has some work to do to ing visitors through various phases of the civil rights move- become everything it was meant to be. CJ MARCH 2010 | CAROLINA JOURNAL PAGE 21 Books & the Arts N.C. History Project Works to Prevent Decay of Studies Into Past hile many Americans are has suggested a second approach: 1) a person continuously living in the political parties; Tar Heel founding forgetting who they are and dividing U.S. history into two manda- moment. Bad decisions, or at least not fathers, including James Iredell Sr. and the state Department of tory high school classes, and 2) requir- the best ones, are made. It’s also like Willie Jones; the Conservative Mani- PublicW Instruction has suggested ex- ing a course in U.S. history since 1877 removing a house’s foundation. One festo of 1937; and various businesses cluding pre-1877 U.S. history courses while allowing local districts to decide will indeed have wood, brick, and and entrepreneurial adventures, from North Carolina high schools, the whether to require a pre-1877 course. mortar afterward, but it will become including the histories of Food Lion, North Carolina (I’m still amazed that Raleigh bu- rubble and memories of what was, not Texas Pete, Barringer Gold Mine, and History Project reaucrats have the power to “allow” a house. Plank Roads. continues provid- communities and families from the Likewise, if an in-depth study NCHP has hosted lectures ing resources for mountains to the coast to determine of pre-1877 United States is removed featuring Wilfred McClay discussing North Carolinians what their children should learn.) from our high school classrooms, we patriotism and Gordon Wood relaying interested in all Today, far too many devalue will one day be an America in name the importance of various Founders. historical eras. tradition and erroneously believe that only. At various venues, NCHP has brought (Although DPI has newer and novel are always better. There will be a nation, to be sure, history to life: Actors have portrayed unofficially taken Likewise, many believe that the past but it will not be the one based on law Thomas Jefferson, John Adams, its suggestion off half-century is more important than and order and checks on power that George Washington, Ulysses S. Grant, the table, such a our nation’s early years. evolved from an understanding of and Robert E. Lee. move remains pos- TROY It is true that many events, such thousands of years of history dating Whatever DPI decides concern- sible.) KICKLER as the Civil Rights Movement and the from the ancient Hebrews to the Glori- ing the U.S. history curriculum, the During the 9/11 attacks, are worthy of histori- ous Revolution in England. There will North Carolina History Project will past month, DPI cal study because they influence our be only memories of what was. continue exploring a neglected yet es- has received approximately 7,000 lives today. But knowledge — or lack The North Carolina History sential part of our nation’s past. e-mails from ordinary North Carolin- of it — of the Revolutionary War, the Project works to prevent further decay As philosopher Soren Kierkeg- ians and letters from numerous pro- constitutional ratification debates, the and to eventually help restore an aard remarked, “We live forward, but fessors and politicians (of all political War of 1812, Confederate secession, understanding of our state’s (and we can only think backward.” persuasions) concerning its proposed and Reconstruction (to name only five nation’s) past — one that includes the We don’t know the future, and curriculum changes. examples) informs our reactions to nation’s leading constitutional schol- the present lasts only a second before I was skeptical DPI would even and interpretations of recent events. ars and widespread examples show- it becomes history. History is all we consider what North Carolinians Contemporary history can’t stand ing how the private sector has solved truly know. CJ wanted. It seems that the people’s alone. many societal problems. voice has been heard — at least some- Disconnecting the past half-cen- Also, encyclopedia entries on Dr. Troy Kickler is director of the what and at least for now. tury from the nation’s first 100 years northcarolinahistory.org record the North Carolina History Project (www. Reacting to the feedback, DPI and its colonial beginnings is like history of the ratification debates; northcarolinahistory.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.

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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!

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The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 22 MARCH 2010 | CAROLINA JOURNAL Books & the Arts

Short Takes on Culture Book review ‘Moon’ Disdains Free Market History of Key N.C. Battle ‘Excellent’ •”Moon” despite having budding superstars • Lawrence E. Babits and Joshua B. mander’s strategy was to exhaust Directed by Duncan Jones Paul Hornung and Bart Starr, were Howard, Long, Obstinate, and Bloody: Cornwallis’ army by heading for the Sony Pictures Classics an undisciplined, out-of-shape team The Battle of Guilford Courthouse, Cha- Dan River in Virginia, staying just out who simply laid down for their op- pel Hill: The University of North Caro- of reach. The British army had to for- ast summer’s movie “Moon” ponents. lina Press, 2009, 300 pages, $30.00. age for food in areas already picked leaves the viewer with a con- The Packers were coming off a clean by the Americans. Greene then flicted feeling at the end. The one-win season when the ownership By George Stephens zigzagged through piedmont North Lfilm is a mind-bender based on a group brought in Vince Lombardi, Contributor Carolina. man’s experience during a three- an obscure assistant with the pow- RALEIGH The American general met Corn- year stint at a mining operation on erhouse New York Giants. Lombardi ictories in the South concluded wallis in battle at Guilford Courthouse the moon. immediately instilled discipline, fit- the American Revolution, but (the site lies in modern Greensboro). Like most liberal Hollywood ness, and a professional attitude. they are rarely acknowledged Previous accounts of the battle were movies, it’s based on a disdain for the Though the Packers struggled Vby historians. Lawrence Babits and sketchy and inaccurate, so Babits and providence God granted man over the in that 1959 season, the improvement Joshua Howard do not follow that nar- Howard did painstaking research Earth. That disdain is masked at the was noticeable, giving the team’s rative, and their accurate and readable from pension documents, personal ac- beginning when the movie celebrates hard-core faithful a taste of the great- history of this seminal battle offers a counts, and muster rolls. The authors man’s ability to mine the moon for ness to come. significant service to readers. give a thorough description of the our energy needs. — SAM HIEB In a typical Ameri- battle. The positions of But the movie’s conclusion re- can history, British Gen. the units on the field veals the moviemaker’s true feelings Charles Cornwallis as time progressed are toward large corporations. Without • Atlas Shrugged skirmishes through the noted and related to revealing the plot twist, the movie’s Ayn Rand South and then goes each other. There are conclusion frames the corporation Plume to Yorktown, where statements by the of- as an oppressive regime enslaving George Washington ficers and soldiers, and its employees. If author and philosopher takes his surrender. Ac- informed speculation However, the movie overcomes Ayn Rand were still alive, she likely tually, he already had about what the soldiers the typical anti-Americanism in popu- would be shocked that her novel, been defeated in three could see and how they lar culture. The main character, Sam Atlas Shrugged, would sell more of the bloodiest battles reacted. Bell, overcomes the corporation’s re- than 400,000 copies 52 years after it of the Revolution. Recent histories gime. “Moon” ends giving the viewer was published. The real history have claimed that Corn- a confidence in the human spirit. Like most English majors, is that, stalemated at wallis was said to have Right now, this country is facing I read portions of Rand’s works New York, in 1780 Brit- had his artillery fire into serious threats to its freedom. So it’s simply because, as an influential ish commander Sir a melee of Americans good to remember that our God-given American writer and a woman, she Henry Clinton sent a and British to break it spirit always will overcome oppres- could not be ignored. I remember strong force by sea un- up and save his army. sion. Much like Bell, it will take cour- reading John Galt’s 69-page speech. der Cornwallis to land The authors note that age, commitment, and creativity to Unfortunately, reading only this at Charleston and drive northward the uncorroborated story came from an keep our country on top of the world. small potion of the novel cheats the through the Carolinas and Virginia to officer who was far from the location — ANTHONY GRECO reader because they miss the full link with his army at New York for fi- and conclude that it did not happen. impact of a well-written novel full nal victory. Cornwallis sent a fourth of After 2 ½ hours of bloody fight- of mystery and intrigue. his army along the foothills of the Blue ing, the Americans withdrew from the What’s caused resurgence in Ridge under the command of Maj. field in good order. The British techni- • That First Season: How Vince Lombardi the popularity of this novel? The Patrick Ferguson, who issued an ulti- cally were victorious, but British Gen. Took the Worst Team in the NFL and Set answer is simple. Americans in- matum to the mountain people to sur- William Phillips later said it was “that It on the Path to Glory creasingly are concerned about the render or he would burn their farms sort of victory which ruins an army.” John Eisenberg expanding role of government and and hang their leaders. These patriots, Cornwallis departed for Wilmington Houghton Mifflin the bureaucrats who are making “Whigs,” from western North Carolina and finally Yorktown to reprovision decisions that impact their lives. and western Virginia militias, were ex- and wait for relief. Instead, Washing- Hey football fans — if March In her novel, Rand shows ex- perienced Indian fighters, crack shots ton came south and finished off his Madness isn’t getting it, there are actly what happens when govern- with their long rifles. They pursued army, a fraction of the one that had plenty of good gridiron books out ment overregulates industry and Ferguson for 200 miles, caught him at sailed from New York. there to keep you entertained between people’s lives. She also shows the Kings Mountain, killed him, and killed now and the NFL draft. One of those ugly side of the moneyed elitists. Babits and Howard also describe or captured his Tory troops in an hour- books is John Eisenberg’s That First They express guilt over their wealth the subsequent lives and careers of long battle on Oct. 7, 1780. This was the Season. and compassion for the poor work- the principal officers on both sides. Revolution’s turning point, because it Hard to believe today, but the ing class, but it becomes clear that it For example, Cornwallis became gov- Green Bay Packers, after much success is empty rhetoric. showed that the British could be beat- ernor-general of India; Tarleton was in the early days of pro football, were The story takes a unique twist: en, drying up British recruiting. the only British officer not invited a dysfunctional franchise in the 1950s, Tired of government involvement On Jan. 17, 1781, at Cowpens, a to dine with the Americans after the the remaining small-market team in that prevents the free market and combination of Continental line troops surrender at Yorktown; Greene had a league that had established itself in entrepreneurs from succeeding, and militiamen under Gen. Daniel heavy debts from his guarantee for a larger markets such as New York and business owners walk away from Morgan defeated a British force com- military contractor so that the con- Los Angeles as the game’s popularity their enterprises, taking their ideas manded by cavalry Col. Banastre tractor could supply his army, but continued to grow. with them, and a country collapses. “Bloody Ban” Tarleton. Another quar- South Carolina and Georgia award- The Packers were a skinflint Rand has written a timeless ter of Cornwallis’ army was killed or ed him large tracts of land, some of organization that held practices on novel that illustrates what happens captured through brilliant tactics and which he sold to repay them; Henry local high school fields and stayed when liberal ideas permeate gov- bravery. “Light Horse Harry” Lee fathered in cheap hotels while playing on the ernment. Unfortunately, it is still a To seize the advantage, Washing- Civil War General Robert E. Lee. road. This small-time mentality was must-read for today. ton sent Gen. Nathaniel Greene, hero These are fragments of four of the reflected on the field: the Packers, — MELISSA MITCHELL CJ of Saratoga, to command American life stories rounding out this excellent troops in the South. The new com- history. CJ MARCH 2010 | CAROLINA JOURNAL PAGE 23 Books & the Arts 1938 Argues that Leader of ‘Master Race’ Had no Master Plan • Giles MacDonogh, 1938: Hitler’s coupled with inept fiscal policy. alive with the sound of music, but of by 1938 anyway, had the will been Gamble, New York: Basic Books, 2009, Before he commanded the Luft- breaking glass. present? McDonogh suggests several 324 pages, $27.50. waffe, Hermann Goering was the chief Rodgers and Hammerstein do occasions when he may have been financial officer of the Reich, and he not reflect the facts that Austria al- turned aside or overthrown. Had Brit- By Hal Young was an ardent supporter of territo- ready had a semifascist government, ain and France honored their commit- Contributor rial acquisitions in proportion to their a concentration camp for dissidents, ments to Czechoslovakia, or shown RALEIGH wealth. Austria, for example, con- and a population that looted their Jew- more opposition to Hitler’s aggression robably no historical figure per- tained not only large foreign currency ish neighbors so quickly after the An- toward Austria, the dictator may have sonifies “evil genius” more than reserves but also rich iron deposits, schluss that advancing German troops paused for diplomatic reasons. The Adolf Hitler. As an orator he and both could feed the German arms found the spoils disappointingly slim. General Staff strongly opposed both Pcould beguile or terrorize with words machinery. Czechoslovakia possessed It was not a bright period for the incursions, fearing the response of the alone, and starting from scratch he extensive heavy manufacturing fa- rest of Europe, either. This was the French divisions and their own forc- built the machinery that turned his will cilities. As it happened, Germany re- year of Neville Chamberlain’s great- es’ inadequacies; had France made a into power and made a disarmed and mained on the brink est blunders in both move of any significance, the Germans defeated nation the masters of Europe. of bankruptcy during Austria and Czecho- may have retreated to reinforce their Few world leaders saw it coming. the whole period and slovakia, with the lat- own frontiers. In 1938: Hitler’s Gamble, Giles quickly dissipated any ter nation thought by In fact, some of the central figures MacDonogh argues that may have new gains. the Foreign Office as in the failed 1944 assassination attempt been because Hitler himself was work- The digestion of “not worth the bones were already forming their conspiracy ing from a broad outline. Instead of a Austria by the Reich of a single Grenadier.” in 1938. Hitler was no more a Junker of diabolical master plan, Hitler’s ascent was a classic illustra- France still reeled the Prussian elite than he was a blond may have been the result of brilliant tion of unintended from its losses in the Aryan, and his disgraceful treatment of opportunism. consequences as well. previous war, its gov- two generals fueled resentment at high This is the year when Hitler an- While Adolf Eichmann ernment vacillating levels in the army’s command. Mc- nexed Austria and carved up Czecho- proposed and acted and transitory while Donogh points out several times when slovakia, started the expulsion and in- to evict the Jews from its large army sat par- a diplomatic check to Hitler’s adven- ternment of Jews, and began to show Austria as quickly alyzed on the German tures would have activated a military his hand to the rest of Europe. It was as possible, Goering flank. plot to arrest or kill the dictator. probably the high point of Hitler’s po- threw up confisca- To some extent, This is a difficult book to read. litical game, as he consolidated power tory taxes and fees to every nation held its MacDonogh’s descriptions of street to himself and successfully called the plunder them on their doors against Jewish brutality against Jews and the politi- diplomatic turn of dozens of nations way out, delaying or refugees, including cal thuggery practiced by Hitler and surrounding him. Unlike other lead- preventing their de- Switzerland, Britain, his lieutenants are chilling. The shame- ers, or indeed his own General Staff, parture. Anti-Semitic policies boomer- and the United States. Others such as ful inaction, and sometimes shame- Hitler realized that thousands of anged on the populace; confiscation of Poland, Romania, and Hungary took ful action, of the Western powers can French troops on his western border rich Jews’ homes put their large house- Germany’s cue and began pushing produce guilt feelings and our own were meaningless if France lacked the hold staffs out of work, and the edict their own Jewish population toward question of conscience: Though the will to mobilize them — and correctly forbidding Jews to practice medicine any border that remained porous. Holocaust memorials say, “Nie wie- predicted it would not. eliminated half the nation’s doctors. Heroic individuals stand out, such as der,” never again, do we have the po- Like the history of the Southern As a people, the Austrians get Church of England officials in Aus- litical and diplomatic — or military — Confederacy, the rise and fall of Nazi very bad press from MacDonogh. In tria who baptized hundreds of Jew- will to halt such a monstrosity today? Germany is dominated by the war it an afterword, he relates that his mater- ish “converts” to enable them to pass Successful regime change in fought and the inhumanities it sought nal grandparents were Viennese Jews immigration barriers, but the govern- Iraq leaves the question unanswered to preserve. MacDonogh opens an in- who were dispossessed by the coming ments behind them failed to counter in southwest Asia and the Pacif- teresting window into the economic of the Nazis. While he doesn’t intro- Hitler’s advance in any meaningful ic Rim; only the future will know side of National Socialism, though, duce his relatives into the narrative of way. if we are living through our own and the effects of massive rearmament the book, the Austria he portrays is not Could Hitler have been stopped generation’s 1938. CJ

Books authored By JLF staFFers Selling the Dream Why Advertising is Good Business

By John Hood President of the John Locke Foundation

“[Selling the Dream] provides a fascinating look into the world of advertising and beyond ... Highly recommended.” Choice April 2006

www.praeger.com PAGE 24 MARCH 2010 | CAROLINA JOURNAL Opinion

COMMENTARY Hey, Let The Dogs In orth Carolina could soon a restaurant. Customers can see replay the smoking ban for themselves whether dogs are debate — but this time allowed at restaurants and choose targetingN dog owners. The state’s whether they want canines around. Commission for Public Health has Numerous individuals proba- proposed a rule that would, as bly supported the smoking ban and written, prohibit dog owners from now oppose a dog ban. However, bringing their canine friends to one can’t have it both ways. I wrote restaurants. The ban would include the following during the smoking even outdoor dining areas. ban debate: “Smoking ban propo- The agency has explained that nents may cheer on passage of H.B. the goal isn’t to ban dogs in outdoor 2 [the smoking ban bill], but under areas. Unfortunately, this is exactly the legislative precedent they wish what the rule would do. to set, they could soon find some of The state shouldn’t prohibit their own actions subject to prohibi- dog owners from bringing their tion.” EDITORIAL dogs to indoor or outdoor dining That is exactly what is hap- areas. pening with a dog ban. This issue isn’t about Those who oppose a dog the rights of dog owners ban but wanted a smok- The Pitfall (or dogs), just like the ing ban show the same smoking ban wasn’t about disrespect for property the rights of smokers. This rights and personal choice Of Ethics Policing is a property rights issue. used against them when Restaurant owners it comes to bringing dogs ith the corruption trial of Hudson, David Lee Brady, and James should have the right to to restaurants. To be fair, Gov. Mike Easley’s former Albert Perry Jr. are in (or on their way decide for themselves there may be smoking ban right-hand man Ruffin Poole to) prison. They were convicted of whether they want opponents who want a Wset for April 26, it’s no surprise that (or pleaded guilty to) violating anti- to allow dogs in their DAREN dog ban. This also would ethics in government has a newfound corruption laws that are now on the restaurants. The fact that BAKST be inconsistent. prominence in political discussions. books. property is open to the We’re entering a Everybody cheers clean poli- Existing laws provide ample public doesn’t change the situation in which the tics and pooh-poohs graft. Is anyone opportunity to make crooked officials fact that a restaurant is populace identifies things really against honesty and in favor pay for abusing the public trust. someone’s private property. it doesn’t like and then urges the of corruption — unless you’re on the Moreover, any heavy-handed Smoking ban proponents ar- government to ban them, regardless take? (And then, would you admit it attempt to inoculate the public from gued that health of rights or indi- publicly?) corruption is likely to have serious, “rights” were vidual responsi- That said, when this year’s unintended side effects, harming in- in conflict with bility. Yesterday, short session of the General Assembly nocents in the process. property rights Like smoking, we were talking isn’t scrambling to balance the state Consider a couple of recent — I imagine allowing dogs about a smok- budget, it will spend much of its time examples from Colorado. Amendment this same falla- ing ban. Today, dreaming up new legislation com- 41, passed in 2006, imposed the na- cious argument in restaurants we’re talking pelling politicians and other public tion’s toughest ban on gifts to elected will be made to about a dog officials to maintain pure hearts and officials and public employees. The defend a dog is a property ban. Tomorrow, spotless records. amendment was written so broadly ban. Just as we may be dis- Among the measures ripe for that the attorney general ruled it with smoking, rights issue cussing a sugar consideration is a ban on campaign would bar University of Colorado customers are ban. contributions from state contractors researchers from taking Nobel Prize fully capable A dog ban to government officials involved in money and the children of state em- of deciding for themselves whether also reflects a belief that restaurants approving contracts and a six-month ployees from accepting scholarships. they want to dine at a restaurant won’t act in their own best interests. cooling-off period preventing execu- Next, 2008’s Amendment 54, where dogs are welcomed. If a restaurant’s patrons don’t want tive branch employees from immedi- currently tied up in court, prohibits Dog ban proponents actually to be around dogs, then the restau- ately taking jobs as lobbyists or work- holders of “sole source” state govern- ing for the companies they regulated. ment contracts from making cam- want to create a new right. They rant will prohibit dogs from enter- These proposals might be paign contributions in any state and want a right to go to any restaurant ing the establishment. It doesn’t worthwhile. But there are two major local political race — including races they want without ever having to require the government to force problems with any deadline-driven for offices that aren’t connected to the deal with dogs. They want their them to ban dogs. crusade for clean politics: Corrup- contracts. The ban covers contractors personal preferences, enforced The Commission for Public tion is already illegal and is being and their extended families, and can- through the power of government, Health needs to let restaurants de- prosecuted. And sweeping moves to didates who accept contributions from to take precedence over property cide whether to allow dogs in their impose virtue on the political class contractors and their relatives can be rights and the preferences of others. indoor or outdoor dining areas. I’d could cause collateral damage to our considered lawbreakers, too. Smoking ban proponents think that dogs would really ap- basic freedoms. Talk about suppressing political argued that a smoking ban was preciate it. I know that anyone who Former House Speaker Jim speech. no different than having a health respects property rights and free- Black, former U.S. Rep. Frank Bal- North Carolina isn’t likely to go inspector regulate a restaurant’s dom will, too. CJ lance, former state Agriculture Com- on the sort of mindless good-govern- sanitation. But banning dogs isn’t missioner Meg Scott Phipps, former ment binge Colorado has embraced. the same as requiring health inspec- Daren Bakst is director of legal state Rep. Thomas Wright, former But members of the General Assembly tions to investigate the unknown and regulatory studies at the John Locke lottery board member Kevin Ged- surely will promote some goofy ideas health and safety conditions of Foundation. dings, and ethanol conspirators Boyce this spring. Watch them closely. CJ MARCH 2010 | CAROLINA JOURNAL PAGE 25 Opinion EDITORIALS COMMENTARY Debt and the Voters Some Thoughts From the Public officials go around citizens with COPs ‘Worst Person in the World’ here are plenty of reasons for that voters will say no. was tucking my sons in bed a guishable. We differ widely in size, North Carolinians to be worried It’s best just not to ask the peons few weeks ago when MSNBC shape, hue, talents, and culinary and angry about fiscal manage- in the first place. commentator Keith Olbermann preferences. Left to our own devic- ment by their government. State and The use of COPs and other non- T Inamed me as one of the worst es, we won’t all develop the same local officials have failed to set firm voter-approved debt is no minor oc- people in the world. interests, earn the same wages, rear budget priorities, while raising taxes currence. According to the 2010 Debt When a left-wing friend later identical children, or adopt the during recessions. And skyrocketing Affordability Study recently released state indebtedness is consuming tax by the office of State Treasurer Janet informed me of the honor, I admit same beliefs. money that might otherwise have Cowell, nearly one-third of the state’s to being a bit underwhelmed. Since What the phrase really means been used to balance the budget, cut total debt will be in the non-voter- Olbermann hands out the honorific is that, whatever our differences of taxes, or fund core services. approved category by 2011. That’s frequently, it was only a matter of status or wealth, we all enjoy equal All of these objections are valid. higher than the 30-percent mark that time before he got to me. Plus, I’ve rights under the law. But public officials repeatedly have bond-rating agencies prefer for states seen MSNBC’s ratings, And what are those violated the fiscal-policy provisions of to maintain a triple-A credit rating. so I figured it was statis- rights? They include the the state constitution and should be North Carolina politicians argue tically unlikely that I’d right to own ourselves held to account. that COPs aren’t subject to the state meet very many people and our decisions (life & The most egregious violation? constitution’s referendum require- who actually had watched liberty), to acquire prop- Government borrowing without ment because they don’t pledge the the show. erty by mixing our labor securing the permission of voters in a taxing power of the government. So I just went to bed. with natural resources referendum. Technically, investors who buy It’s pretty silly to as- (the fruits of our labors), In general, Article V, Sections 3 COPs are buying the right to share in cribe made-up beliefs and and to acquire property and 4 of the North Carolina Consti- the revenues to be derived from the attitudes to individuals by voluntary exchange tution require that any state or local buildings being financed. Technically, who write and speak for with other people (the borrowing that would pledge taxes the investors can repossess their share a living. In my case, there JOHN pursuit of happiness). to retire the debt must be subjected to of the buildings in question if the rev- are literally tens of thou- To say I have the voter approval. enues don’t materialize. sands of columns, blog HOOD right to pursue happiness But in recent years, both state Technically, this is what a lay- posts, audio files, and TV is not, of course, to say and local governments have issued man would call male-bovine excre- snippets freely available to anyone that I have a right to force you to certificates of participation to fund the ment. who might wonder what I think. It make me happy. I don’t have a right construction of prisons, schools, and In reality, investors who buy should be pretty obvious by now. to force you to give me food, cloth- other facilities. COPs are not subject to COPs are lending money to the state But I’ll offer the following as a ing, shelter, or health care. I can ask. voter approval, which is why politi- in return for receiving future tax handy timesaver: I can offer something you value cians like them. revenue. I hold it to be self-evident in exchange. When the Left tries Holding a referendum takes As long as North Carolina politi- that all that persons are created to misuse the concept of rights to some time and expense. More impor- cians are never held to account for equal; that they are endowed by justify theft via welfare and income- tantly, holding a referendum means their misuse of the power to borrow, their Creator with certain inalien- transfer programs, I snort. that you have to accept the possibility they’ll keep doing it. CJ able rights; and that among these I take a dim view of politicians are life, liberty, who think their the enjoyment job extends of the fruits of beyond carry- It’s Tough All Around their own labor, I don’t have ing out the few and the pursuit core constitu- Finally, higher ed not getting special treatment of happiness. the right to force tional duties of Sound you to give me government. I n recent weeks, several stories tax dollars students will fail to gradu- familiar? It also take a dim have chronicled the effects of the ate and businesses will fail to acquire should. This is food, clothing, view of people recession on the state’s univer- the human and scientific capital neces- a direct quote who won’t sityI and community college systems. sary to prosper. of Article 1, shelter, or mind their News of declining university endow- In reality, there’s never been Section 1 of the own business, ments, a steep drop in annual giving, much in the way of empirical data North Carolina health care in all senses of and operating losses at UNC-Chapel to support such assertions. But that Constitution. the terms. And Hill, N.C. State, and UNC-Wilmington doesn’t mean they haven’t, for the With a couple I take a dim have officials looking for ways to most part, persuaded their intended of small differ- view of anyone economize. audiences. North Carolina continues ences, the passage also appears near who thinks that personal freedom In the community college to be one of the most generous state the beginning of America’s found- doesn’t come with personal re- system, managers are in effect turn- funders of higher education in the ing document, the Declaration of sponsibility, and that it is the job of ing away some of the unprecedented United States. Even after recent tuition Independence. That language was, government to force taxpayers to number of students arriving on their hikes, students at North Carolina’s in turn, lifted with just a few other bail out profligate households or campuses, because the schools lack state colleges and universities fund alterations from a famous passage businesses. the instructors, materials, and space to very little of the cost of their own in Two Treatises of Government by, as If that makes me one of the accommodate them. educations. it happens, an English chap named worst people in the world in the Anyone who has followed North What’s telling, then, is that in John Locke. eyes of a few deluded nincom- Carolina politics for any length of time the midst of this Great Recession, the Many have heard these words poops, fine. I’ll just wish them a has heard a lot of poor-mouthing from usual defenses of UNC largesse seem so often that they’ve become a cat- speedy recovery and go play with university leaders and their allies in to be falling on deaf ears. It’s tough echism. Let’s look at each phrase in my kids. CJ politics, business, and the media. It is out there. It’s tough on everyone. more detail. often said that the UNC system is the What’s different is that higher educa- To say we are all created equal John Hood is president of the John most important driver of the state’s tion isn’t being treated differently this is not to say that we are indistin- Locke Foundation. economy, and that without additional time. CJ PAGE 26 MARCH 2010 | CAROLINA JOURNAL Opinion EDITORIAL BRIEFS The Cruelty Of Compassion

goal shared by virtually all European governments is social cohesion, a desire to reduce inequality as a means of limit- ingA social conflict. Such policies, though, have become a self-defeating excuse to avoid reform, argues The Economist. These policies exhibit two worrisome trends. The first is that governments focus on protecting “insiders,” those with permanent jobs, in trade unions, or in privileged profes- sions. The costs of such policies largely fall on “outsiders,” typically young workers and immigrants. This undermines the very social cohesion governments are aiming to preserve. It also erodes Europe’s economies, as compa- nies have little reason to train the temporary workers they must hire to avoid the high costs associated with longer-term contracts. The resulting loss of human capital is a reason Eu- rope’s economies have shown lower productiv- ity growth over the past two decades compared with the U.S. Why the Recovery Should Be Slow Government policies also protect the pay and benefits of government workers, even in nderstanding a problem is the first step to consumers’ financial situation looked very strong. recessions. Over time this leads to the public solving it. So when we look at the overriding Life was good! sector consuming an ever-larger share of GDP. problem in the country today — the reces- Then, literally, the bottom fell out. Beginning “[M]any of the policies espoused in the Usion and the likelihood of a slow recovery — our in 2007 and continuing into 2008 and 2009, the name of social cohesion do not promote com- initial task is to understand how we got here. Let wheels fell off both the stock and housing markets, passion over cruelty,” writes The Economist. me see if I can weave a story that makes sense. causing an unprecedented (at least for modern “Rather, they encourage decline, entrench The starting point is you and me — consumers times) plunge in consumer wealth. At the worst divisions and thus threaten the harmony they — for the simple reason that we drive the economy. point, collectively consumers lost $13 trillion of pretend to nurture.” Three decades ago our behavior in the economy wealth, a full 20 percent of what they had before the began to change. First, wealth recession. Kill Big Bird? started to rise. With wealth down, consumers’ high debt Driven by the good stock loads became exposed. The only way out of this This year, Congress will give the Corpo- market in the 1980s and 1990s situation was for consumers to spend less, save ration for Public Broadcasting $420 million to and then the booming hous- more, and pay down debt. help cover the costs of public television. The ing market in the decade from Lo and behold, this is what consumers are Washington Times argues that this funding has 1997 to 2007, average wealth per doing. In the past two years, consumers have paid outlived its usefulness. person (after taking out infla- down 7 percent of their debt and have increased In 1967, President Johnson signed the tion) jumped 100 percent from their saving rate from nothing to almost 5 percent. Public Broadcasting Act, stating that eventually 1980 to 2007. Never before were Debt payments as a percentage of consumer income he imagined “linking computers and satellites consumers so rich! also have fallen by a full percentage point. with a nationwide educational television-radio Simple economics dictated MICHAEL These individual actions certainly are good for system to form an electronic knowledge bank.” what happened next. With more WALDEN consumers. It’s a way for consumers to get their “fi- Today we live in such a world, and the wealth at hand, consumers took nancial balance sheets” back in order, and it’s what Times says the need for the government to fund on more debt. A big part of this any financial adviser would recommend. But what’s public broadcasting no longer exists. About 15 debt directly came from the rising value of our good for the individual consumer may not be good percent of the funds for public television and homes in the form of home equity loans. Consum- for the overall economy. public radio come from the federal govern- ers used this debt to purchase bigger homes, more Here’s the issue. Spending by consumers still ment. Those arguing for a continuation of fund- vehicles, and electronic gadgets. accounts for the majority of economic activity. If ing claim that eliminating it could cause public Even with greater borrowing, consumer debt consumer spending is sluggish because people are broadcasting to enter a death spiral. Or as fund- rose at a slower rate than consumer wealth (75 spending less and saving more in order to reduce ing proponents would say, cutting funding for percent versus 100 percent, again per person and debt, then the economy also will be sluggish. A public broadcasting is like killing Big Bird. adjusted for inflation). sluggish economy means jobs — even when they Furthermore, because interest rates on loans start to come back — will return very slowly. This argument ignores that some public began falling in the mid-1980s, consumers could fi- This is why the majority of economists think broadcasting properties are competitive in the nance this additional borrowing from their budgets. the time period after the recession will continue marketplace and have immense value. “Sesame Indeed, consumer debt payments as a percentage to be challenging. Although the stock market has Street,” including Big Bird, is a lucrative mer- of income rose only 30 percent during the period — regained some of its losses and housing values seem chandising franchise, with marketing deals for less than one-third as fast as wealth. to have stabilized, few forecast a return to prereces- games, toys, clothing, and more. And because our wealth was rising from the sionary wealth levels any time soon. “If the Sesame Workshop became a for- booming stock and housing markets, we had less This means the thriftiness consumers started profit publicly traded corporation, it could motivation to save money from our paychecks. during the recession will continue even after the assume a large part of the burden of supporting The personal saving rate dropped from 10 percent recession — perhaps for several years. public broadcasting, assuming its stockhold- in 1980 to almost nothing by the middle of the last So hunker down for a different set of economic ers thought that was good business,” says the decade. challenges! CJ Times. In 2007, consumers had a record level of debt “In any case, we doubt that Big Bird is and were spending virtually everything from their hurting.” CJ paychecks. Yet it didn’t matter because consumer Michael Walden is a William Neal Reynolds Dis- wealth was also at a record high. In fact, on paper, tinguished Professor at North Carolina State University. MARCH 2010 | CAROLINA JOURNAL PAGE 27 Opinion Filibuster is What Makes U.S. Senate Unique

opular opinion characterizes the ships that were threatened by German came in 1975. In that year an alliance Senators from both parties are filibuster as a principal villain of U-boats. of northern Democrats and moderate reluctant to support such changes our dysfunctional politics. From Calling the obstructionists “a Republicans was able to reduce the because they understand the fili- theP Dutch “vrijbuiter” (or pirate), a little group of willful men,” President number of votes required to invoke buster serves an important purpose. filibuster is an effort by an individual Woodrow Wilson implored the Sen- cloture to 60. The procedure is part of the Senate’s or group of senators to prevent a bill ate to change its operations. It did so These revisions to Rule 22 have uniqueness; it helps explain why from coming to a floor vote. by creating Rule 22 and a procedure not reduced the use of the filibuster. In many consider it the “world’s greatest This can hap- called cloture. fact, over the past 40 years the number deliberative body.” pen for two rea- A filibuster could be ended with of filed cloture motions has grown George Washington believed the sons. In 1806, the two-thirds of senators present and tremendously. Between the 1960s and Senate should act like a “saucer” to Senate rather ab- voting. The senator offering a motion 1970s, formal efforts to stop filibusters “cool” House legislation. It is really sentmindedly dis- to bring this about had to be recog- essentially tripled — from a trickle to the filibuster that permits the Senate carded its previous nized. a steady stream of about 30 to 40 — in to behave this way. question proce- Until the 1960s, a filibuster not each Congress. By the early 1990s, The filibuster plays a particularly dure. only prevented a vote on the bill this number had doubled again — to important role in our current politics As anyone under consideration, it brought the about 70 — and now we face a torrent. of cohesive and polarized parties. who has sat on a Senate’s entire legislative business to a In the 110th Congress of 2007-09, 139 Today’s partisanship has made our board knows, the ANDY standstill. So as to allow other bills to cloture motions were initiated. House of Representatives similar to previous question TAYLOR go to the floor and progress to pas- The heightened activity has the British House of Commons. is the way in which sage, the Senate leadership introduced generated more reform proposals. The majority sets the agenda a majority of mem- the track system. During the Bush years, the Republican unilaterally and sends it quickly to the bers can bring debate to an end. This put an end to the old “Mr. majority toyed with the idea of having floor where it can be assured a vic- The second critical feature of Smith” filibusters — made famous the presiding officer rule that filibus- tory after vacuous and choreographed the body’s rules is that the Senate’s by Jimmy Stewart’s performance ters on judicial nominations were not debate. presiding officer has no control over in Frank Capra’s Mr. Smith Goes to in order. Without the ability of dissenting floor debate. Washington and pajama-clad southern Under their current Democratic senators to filibuster and slow bills The power to recognize a senator Democrats who read for hours from rule, senators have been mulling a down, legislative consideration of to speak on the floor resides with the the telephone directory as they op- proposal, most closely associated with policy proposals would be minimal legislator who currently holds it. She posed civil rights bills in the 1950s and Tom Harkin of Iowa, to reduce the when both houses of Congress are is not obliged to relinquish. early 1960s. threshold for invoking cloture over controlled by the same party. At first these two peculiarities From that point on, pulling leg- time. Thus the great irony: The filibus- did not matter much. By the end of islation from the floor constituted the Essentially the first vote on a clo- ter is most needed when it can do the the 19th century, however, senators suspension of the bill’s consideration ture motion would, as is the case now, most damage. CJ began to filibuster bills they opposed and allowed members desperate for require 60 votes to go forward. But if with greater frequency. a bathroom break the opportunity to that failed the next vote would be two Andy Taylor is Professor and Chair Efforts to curtail the practice relieve themselves; it did not necessar- days later and require 57. This process of Political Science in the School of Public began. In 1917, a small group of sena- ily signal a bill’s death. would repeat itself until the number and International Affairs at N.C. State tors blocked a bill to arm merchant The last great change to Rule 22 fell to 51, or a simple majority. University. Forced Annexation vs. Property Rights

hen the General Assembly The bill remains eligible for con- and desired by the property owners. of those polled thought a one-year reconvenes in May, adjust- sideration during the short session. If a city initiates the annexation, it moratorium on forced annexation was ments to the budget will be According to a fiscal note, proposed should be financially responsible for a good idea. made.W Stricter ethics rules and taxpay- forced annexation reform will cost the new water and sewer infrastructure. However, 40 percent of the Elon er-funded elections are also ripe for state about $190,000 a year, as a result The political prospects of real poll respondents said they hadn’t further consider- of the reporting that would be re- annexation reform are uncertain. The given the issue much thought, and ation. But no item quired from new oversight provisions largest hurdle in getting a bill heard 12 percent of the Civitas respondents on the short ses- in the bill. vanished when Rand stepped down. weren’t sure about the issue. sion’s agenda will The problem with annexation is Advocates for property rights protec- Forced annexation may not af- be as important not that cities are breaking the law — tion in the Senate include Minority fect everyone. Some of us already live as a key property for the most part they aren’t. But the Leader Phil Berger and Sen. Larry within city limits, and others aren’t rights protection law is written so broadly that cities Shaw, a Fayetteville Democrat. Many attractive as potential annexation tar- issue — reform of are encouraged to trample property others oppose annexation reform. gets. But if government has the power North Carolina’s owners’ rights. And when cities do If the annexation bill that is to take anyone’s property, no one’s is repugnant forced overreach, the penalties are minimal eligible for consideration is amended safe — through forced annexation or annexation laws. BECKI at best. and passes in the Senate, it would some other scheme. North GRAY The bill that is eligible for con- then have to go back to the House John Locke believed that all men Carolina is one sideration, House Bill 645, is weak and for reconsideration. The first vote in are granted certain rights by God of a handful of does not offer enough protection. But the House was difficult and conten- and that government exists to protect states granting municipalities free rein it can be amended. tious. Political considerations, part of those rights. Our Constitution is based to annex property owners without Before a proposed area is an- the long session debate, will play an on those beliefs. The General Assem- their consent and charge taxes before nexed, the affected property owners even greater part in this election year bly must ensure that the principles residents receive services. The House should be able to vote on whether debate. behind the founding of our nation passed a weak attempt at reform at they want to pay city taxes and receive Polling shows that North Caro- and our state are upheld. Paramount the end of the 2009 session. The bill city services. Then, if a majority sup- linians don’t like forced annexation. In among those principles is the protec- met a brick wall of resistance in the ports annexation, county commissions a March 2009 Elon University poll, 40 tion of the right to property. CJ Senate from its powerful leader, Tony should provide oversight of the entire percent of the respondents disagreed Rand, who resigned Jan. 1 to take process. Any services provided should with forced annexation, and a June Becki Gray is vice president for out- charge of the state parole board. indeed be meaningful, i.e., needed 2008 Civitas poll found that 51 percent reach at the John Locke Foundation. PAGE 28 MARCH 2010 | CAROLINA JOURNAL Parting Shot Perdue: Hunter Good for State Edwards Long Leaf Pine Award to adorn LOVE NEST?

By Pop. A. Rotzee with Hunter, then admitted the affair but denied being the Entertainment Editor father of her child. In January, he admitted being the father. BLOWING ROCK Edwards has been the target of a federal investigation Mistress ov. Bev Perdue recently awarded John Edwards into the possible use of campaign funds to hide the affair. mistress Rielle Hunter the Order of the Long Leaf Hunter appeared last August at the federal court building Pine, North Caro- in Raleigh — presumably to lina’sG highest civilian honor, testify before the grand jury for Hunter’s efforts to “put looking into the matter. Gets NC’s North Carolina in the na- Edwards and his wife tional limelight.” Elizabeth recently have sep- Hunter decided to be- arated. He has stated pub- come a North Carolina resi- licly that he wants to be in- dent after Edwards recently volved with raising his new admitted he was the father daughter. The Enquirer and Highest of their 2-year old daughter. other media outlets have “We are thrilled to reported statements from have Rielle settle in North Edwards that he eventually Carolina. She has done more intends to marry Hunter. to put us in the national The Edwards affair Honor limelight than any economic with Hunter was chronicled development project since I in The Politician, a book by Former Senator’s became governor. We owe former Edwards aide An- her big time,” Perdue told drew Young. A reported Carolina Journal. sex tape of Edwards and Perdue said that un- Hunter recently was seized DARK like her predecessor Mike by the FBI. Easley, she would reserve Perdue said several the Long Leaf Pine award Gov. Beverly Perdue welcomes Rielle Hunter to North Carolina people have suggested that SECRETS! for individuals who actually with open arms, calls her good for the economy. she give the Long Leaf Pine have made a significant dif- award to Young. “Andrew’s ference. “Under the Easley administration, the Long Leaf got a lot of support, but I am holding out until he turns over Pine award was easier to get than a state highway map,” all copies of that tape,” she said. Perdue said. Perdue made the presentation to Hunter last month The National Enquirer first reported on the Edwards af- at a small ceremony in Blowing Rock at the vacation home fair in October 2007, and since then the magazine has had where Hunter was staying. at least 35 reporters and photographers stationed in North Perdue said Bob Collier, the home’s owner, nominated Carolina. Hunter for the award. A Statesville businessman, Collier is A CJ Parody “These reporters are essentially long-term tourists. also a retired state Supreme Court justice. He has served on They spend money on hotels, rental cars, surveillance the North Carolina Board of Transportation for six years equipment, meals, and lots of booze. I hope they stay in and recently was named chairman. North Carolina for a long time,” Perdue said. Collier told CJ that Hunter and his son Burr met many During his run for the 2008 Democratic presidential years ago on the horse show circuit and have remained friends. nomination, Edwards, a former U. S. senator, hired Hunter “She’s a real pistol. Lots of interesting stories. as a campaign videographer. He originally denied an affair We really enjoyed having her as a guest,” he said. CJ