INSIDE THIS ISSUE: DEPARTMENTS Craft brew- North Carolina 2 Local Government 9 ers want CAROLINA From Page 1 12 Education 14 more free- Books & the Arts 18 dom to dis- Interview 19 tribute/2 Opinion 20 JOURNALA MONTHLY JOURNAL OF NEWS, ANALYSIS, AND OPINION Parting Shot 24 FROM THE JOHN LOCKE FOUNDATION March 2016 Vol. 25 No. 3 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org N.C. Railroad Gives Millions to Megasite Project acreage will be donated to that com- pany. Critics calling The project has significant local opposition, including real estate attor- Randolph County ney Alan Ferguson, who lives near the project. In an op-ed article published project another recently by the Greensboro News & Record, titled “The megasite is a reck- less gamble,” Ferguson compared the Global TransPark megasite to the Global TransPark proj- By Don Carrington ect near Kinston. Executive Editor NCRR is a unique operation be- RALEIGH cause it is a private company with all he North Carolina Railroad the stock owned by the state of North Company has taken on a proj- Carolina. The governor and legislative ect that may be outside its core leaders appoint the 13 members of the Tmission by announcing in January it board of directors. Its primary income would spend $13 million to purchase Standing on the Norfolk Southern rail line that borders the northern boundary of comes from leasing its tracks to Nor- 875 acres of private land for the 1,500- the megasite, Megasite opponent Alan Ferguson wonders why the North Carolina folk Southern Railway. acre Greensboro-Randolph Megasite Railroad Company plans to spend $13 million to buy property that it will never serve. Norfolk Southern Railway owns project, an industrial site designed to (CJ photo by Don Carrington) the rail line bordering the site, and the attract a large automotive plant. closest NCRR track is approximately land would be more than three times ganizations participating in the project 15 miles away in Greensboro. The railroad company, which its net annual income, which in 2014 are the city of Greensboro, Randolph also goes by NCRR, owns and manag- NCRR spokeswoman Megan was $4.1 million. County, and the nonprofit Greensboro- Hoenk told CJ that the $13 million es a 317-mile rail corridor connecting NCRR president Scott Saylor Randolph Megasite Foundation. The Morehead City to Charlotte. The stated “will largely come from sales of legacy told Carolina Journal that his board ap- county has purchased about 420 acres, properties no longer used for railroad mission of NCRR is to develop its own proved the participation in the mega- and the foundation plans to purchase purposes.” She said that use of money corridor. Since another railroad com- site project as part of the company’s approximately 200 acres. on the megasite would not adversely pany would be serving the megasite, broader economic development mis- The city of Greensboro is plan- affect other projects that are directly re- the NCRR will not receive any direct sion. ning to pay for the extension of wa- lated to the NCRR corridor. return from its spending. The property is located along ter and sewer services to the site. If a In addition, the $13 million that U.S. 421 west of Liberty and lies entire- manufacturer agrees to build a suitably NCRR has committed to purchase the ly in Randolph County. The other or- large facility on the site, the assembled Continued as “N.C. Railroad,” Page 12 High Court Ruling Puts N.C. in Political Scramble PAID considerations the court had ruled un- RALEIGH, NC U.S. POSTAGE constitutional. PERMIT NO. 1766 NONPROFIT ORG. Officials adjust The new maps were submitted on Feb. 19 to a U.S. District Court. The to SCOTUS refusal state’s congressional primary, original- ly set for March 15, had to be resched- to stay lawsuit uled for June 7 as a result of the high court’s 11th-hour decision, which, ac- By Dan Way cording to Michael Bitzer, Catawba Associate Editor College provost and professor of poli- RALEIGH tics and history, did not comport with he U.S. Supreme Court’s refusal Meredith College, created “electoral previous court actions taken under to issue a stay in North Caroli- chaos, with the real potential that similar circumstances. na’s congressional redistricting thousands of votes already cast using Bitzer said it was surprising that Tcase so close to the state’s scheduled the 2011 maps will be invalidated.” the Supreme Court allowed the new March 15 primary put North Carolina’s The General Assembly hast- maps to go through this close to the voters, parties, legislators, and election ily redrew maps, saying their aim election “when they have previously officials in a scramble to adjust. was maintaining a 10-3 advantage ruled [differently] in other states.” The decision, said David McLen- for Republicans in the congressional The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 nan, a political science professor at delegation and eschewing the racial Continued as “High Court,” Page 13 PAGE 2 MARCH 2016 | CAROLINA JOURNAL North Carolina C A R O L I N A Craft Brewers Want More Freedom to Distribute By Barry Smith want to focus on brewing quality beer and leave the distri- JOURNAL Associate Editor bution to someone else. CHARLOTTE The craft brewery owners said distribution decisions Rick Henderson ome North Carolina craft breweries plan to ask the should be left up to the breweries, not dictated by state law. Managing Editor General Assembly next year to change a state law they “That’s the free-enterprise system,” Sherrill said. say is stunting their growth, but there’s little indica- Ford said he believes that his employees are best situ- Don Carrington tionS the association representing large beer wholesalers will ated to market NoDa’s beer. Executive Editor cede any of its control over the state’s beer distribution. “This is the area where we live and the area we pri- The law places a limit of 25,000 barrels any brewery marily wanted to focus on,” Ford said. “We didn’t think that can produce and sell in a year without having to contract there was anybody better to tell the story than our own em- Mitch Kokai, Michael Lowrey with a wholesale distributor. If a brewery exceeds the lim- ployees.” Barry Smith, Kari Travis it, it must use a distributor for all of its beer, not just the Ford said that wholesalers and distributors have val- Dan Way amount over 25,000 barrels. (One barrel equals 31 gallons.) ue, but he feels like self-distribution affords NoDa the op- Associate Editors “We want that option for ourselves,” said Todd Ford, portunity to be more nimble in servicing restaurants and Kristen Blair, Roy Cordato who with his wife co-owns NoDa Brewery in Charlotte. “I bars in a relatively small geographic area. Becki Gray, Sam A. Hieb don’t see us distributing 70,000 or 80,000. But I’d like that This won’t be the first time craft breweries have tried Lindalyn Kakadelis, Troy Kickler option.” to increase the self-distribution ceiling. George Leef, Michael Lowrey At least three North Carolina craft breweries say “The legislature has had this issue before it every ses- Donna Martinez, Harry Painter they’re approaching that ceiling and soon may have to make sion since 2003,” Kent said. “This is not a new issue.” Jenna Ashley Robinson decisions regarding their growth if the law isn’t changed. Indeed, Red Oak’s Sherrill has spent years pushing for Marc Rotterman, Jesse Saffron One, Olde Mecklenburg Brewery in Charlotte, brewed the change. But a bill never has gotten out of committee. Jay Schalin,Terry Stoops about 19,000 barrels of beer last year. Because it’s continu- Distributors and wholesalers have convinced lawmakers to Andy Taylor, Michael Walden ing to grow, the brewery no longer distributes beer in the leave the law alone. Contributors Greensboro-Winston-Salem market. Rep. Chuck McGrady, R-Henderson, who has sup- “As a precautionary move, we pulled out of the Triad ported similar moves in the past, said in 2017 he plans to Jan. 1,” said John Marrino, owner of Olde Meck. “Because of Joseph Chesser, Zak Hasanin put forward legislation lifting the cap. Catherine Koniecsny, Charles Logan the uncertainty, we said, ‘Let’s stop growing elsewhere and “I actually think the direction on this is changing,” Austin Pruitt, Matt Shaeffer focus on Charlotte,’” Marrino McGrady said. “As you get new Interns said. “The last thing I want to be legislators elected, I think you’ll doing is cutting off Charlotte and find that they’re more willing to driving beer up to the Triad.” look at our antiquated alcoholic Published by Bill Sherrill, owner of Red beverage laws.” The John Locke Foundation Oak Brewery in Whitsett, said McGrady noted that more 200 W. Morgan St., # 200 his brewery soon will reach the and more craft breweries are Raleigh, N.C. 27601 25,000-barrel cap. sprouting up in North Carolina. (919) 828-3876 • Fax: 821-5117 “I don’t think we’ll hit it this www.JohnLocke.org “These are all small businesses year, but we’ll hit it definitely in that employee people,” McGrady ’17,” Sherrill said. said. All three brewers say that Jon Ham Sen. Rick Gunn, R-Ala- if the cap isn’t lifted, they’ll cut Vice President & Publisher mance, who chairs the Senate back production rather than lose Commerce Committee and last control over the marketing and Kory Swanson Todd Ford, co-owner of NoDa Brewery in Charlotte, year sponsored legislation per- distribution of their products. President demonstrates part of the brewing process. Ford is mitting craft distilleries to sell “We are basically done part of a group of North Carolina craft brewers who small amounts of spirits at their John Hood growing if we can’t get this law say state laws are getting in the way of their plans Chairman changed,” Marrino said. “I will to expand. (CJ photo by Barry Smith) locations, said he’s hopeful that not be forced by this law to make the two sides can hammer out a Charles S. Carter, Charles F. Fuller a bad business decision from my compromise that can be enacted Bill Graham, John M. Hood perspective. I will not go over 25,000 as long as the law is in into law. Christine Mele, Baker A. Mitchell Jr. place.” “It is so much better when two business entities work Paul Slobodian, David Stover But the law has backers, led by the powerful N.C. Beer together to come up with a win-win,” Gunn said. “Other- J.M Bryan Taylor and Wine Wholesalers association. Tim Kent, executive di- wise, it puts legislators in a position to have to pick a winner Board of Directors rector of the organization, said that distributors see no need and a loser. I am still encouraging the craft brewers to work with the beer and wine wholesalers.” Carolina Journal is to change the law. a monthly journal of news, “We think that the current system is a proven success Gunn acknowledges that both sides have dug in their analysis, and commentary on by virtue of the fact that the exponential growth of the craft heels. state and local government beer business and the fact that we have so many new brew- Ford said getting out of a contract with a distributor is and public policy issues in eries in this country, and the wide variety of brands that are cumbersome. He also said smaller breweries are concerned North Carolina. available to the consumer,” Kent said. “That’s clear evidence that if they must distribute through a wholesaler, smaller ©2016 by The John Locke Foundation that the system works.” breweries could be squeezed by incentives the larger, global Inc. All opinions expressed in bylined articles North Carolina’s dispute was highlighted in an Au- brewing companies offer to retailers. “There could be many are those of the authors and do not necessarily gust 2015 report by the Center for Public Integrity on beer times where there is a strong motivation to move somebody reflect the views of the editors of or the CJ industry lobbying in state legislatures. The report said that, else’s product other than yours,” Ford said. staff and board of the John Locke Foundation. since 1996, alcohol wholesalers have given $740,000 in cam- Kent disagreed. Material published herein may be reprinted as “The distributors are in the business of selling prod- long as appropriate credit is given. Submis- paign contributions to North Carolina legislators and that sions and letters are welcome and should be Kent’s organization employs seven lobbyists. (The fledgling ucts that the consumer wants,” Kent said. “Beer distributors directed to the editor. North Carolina Brewers Craft Guild has two legislative lob- are excited about the craft beer movement. We are anxious To subscribe, call 919-828-3876. Readers byists, according to the report.) and ready to sell craft beer brands to retailers. There is no also can request Carolina Journal Weekly Kent said that more than 90 percent of the brewers in incentive for us not to do that.” Report, delivered each weekend by e-mail, the country produce 7,000 or fewer barrels a year. “Raising The craft brewery officials say they’re willing to wait a or visit CarolinaJournal.com for news, links, the barrel limit would provide a competitive advantage for year for a couple of reasons. First, “short sessions” like the and exclusive content updated each weekday. a very small handful of brewers in North Carolina,” Kent one in 2016 generally are reserved for budget adjustments Those interested in education, economics, said. “It would be to the disadvantage of everyone else.” and other less controversial matters. higher education, health care or local govern- Kent said that other regional and national producers, In addition, the breweries hope to use the time be- ment also can ask to receive weekly e-letters such as New Belgium Breweries, came to North Carolina tween now and the 2017 session to make a more compelling covering these issues. knowing the distribution laws. He said other breweries case to legislators. CJ MARCH 2016 | CAROLINA JOURNAL PAGE 3 North Carolina Sen. Berger Bristles at Diversion of Education Reading Funds By Dan Way tions,” Stoops said. “It will be a short- so would be inconsistent with the in- The appropriation to DPI “gives Associate Editor term gain but a long-term loss for an tent of the budget reduction to DPI us that flexibility to determine how we RALEIGH already unpopular state agency.” and would not accomplish budget ex- would organize and how we would tate Senate leader Phil Berger, R- Berger’s displeasure was evident pansion of the Excellent Public Schools use those dollars to carry out the provi- Rockingham, said he is “alarmed” in his letter to Atkinson and Cobey, Act.” sions of the General Assembly’s laws,” that the state Department of which he copied to Lt. Gov. Dan Forest, Former state budget director Lee Atkinson said. PublicS Instruction and State Board of State Treasurer Janet Cowell, the Office Roberts issued a letter on Oct. 28 to At- “With Read to Achieve, it was Education agreed, possibly in viola- of State Budget and Management, nu- kinson, copied to Cobey and DPI chief specified that we would hire people to tion of state open meetings laws and merous officials at financial officer provide support, and they gave us the legislative requirements, to shift funds other state depart- Philip Price, that the salary of those people,” she said. “But intended to help children learn to ments, and mem- plans to shift fund- the Excellent Schools Act did not have read into maintaining what he calls a bers of the General ing were “inconsis- any of those types of direction to us.” “bloated bureaucracy.” Assembly. tent with the intent Atkinson said DPI’s new organi- On Feb. 1, Berger issued a sting- “I am alarmed of the budget reduc- zational chart shows that responsibil- ing letter of rebuke to Superintendent by the apparent tion as directed by ity for the Excellent Public Schools Act of Public Instruction June Atkinson failure of the North the General Assem- falls across most of the agency’s de- and State Board of Education chair- Carolina Depart- bly.” partments to meet provisions such as man William Cobey. Berger demanded ment of Public In- Roberts wrote providing assistance to low-perform- a variety of correspondence, meeting struction and the that “it is clear” the ing schools and charter schools, and to minutes, and budget proposals related State Board of Ed- legislature intended implement a structure to report the sta- to the budget dispute. ucation to imple- to reduce General tus of public schools on an A through F At issue is a $2.5 million budget ment multiple pro- Fund support for grading basis. cut the General Assembly made to the visions contained DPI operations to “This is not the first time we’ve state Department of Public Instruc- in the 2015 state budget focused on $45.3 million, and that was to be “sep- been down this path, ordering people tion and a legislative demand that DPI achieving better educational outcomes arate and apart from the additional to do things, and what they end up do- spend $3.8 million more in 2015-16, for students,” Berger wrote. funding provided to implement the ing is shifting money around so they and $8.5 million if 2016-17, to expand “I am further concerned that this Excellent Public Schools Act.” don’t have to do what they were told the Excellent Public Schools Act. choice may have been authorized in a The requirement to expand the to do,” said state Rep. Craig Horn, R- Berger and others believe DPI closed meeting contrary to the require- Excellent Public Schools Act “will not Union, a member of the Joint Legisla- may be diverting money earmarked ments of the Open Meetings Law. I be accomplished if existing positions tive Education Oversight Committee. for the Read to Achieve early-grades hope the SBE will take action to correct and workload are simply relabeled as “I think unrest or unease is pretty literacy program and other measures these problems at its February 2016 support” for the act, Roberts wrote. light in describing the view of the leg- under the Excellent Public Schools Act meeting,” Berger wrote. “That’s a live, ongoing budget islature” on this matter, Horn said. to preserve jobs that might be eliminat- He said DPI plans to take “cru- issue, and so I’m not sure it would be “There’s a number of legislators, ed by the budget cut. cial funds designated for helping chil- appropriate for me to comment on it,” and I’m among them, that don’t look “From an operations standpoint, dren learn to read, and using them to Roberts told Carolina Journal in late kindly at people who decide which their budgetary switcheroo may make preserve DPI’s bloated bureaucracy in January. “I’m confident that it will get laws they’re going to enforce, and sense. It does not make sense political- clear violation of the budget’s require- resolved.” which ones they’re not going to pay at- ly, however,” Terry Stoops, director of ment for a reduction in the depart- “With all due respect to Mr. Rob- tention to,” Horn said. research and education studies at the ment’s operating costs.” erts, I’m unclear about what he’s actu- “At the end of the day, the role of John Locke Foundation, said of the DPI He further accused DPI of trying ally trying to convey there,” Atkinson the legislature is to make the law. The maneuver. to “cover this up by relabeling existing said of his letter. She said DPI met the role of the departments is to imple- “Lawmakers will likely respond positions and workload within DPI as requirements of the General Assem- ment the law. And the role of the gov- by approving deeper cuts to the DPI additional support for the Excellent bly’s $2.5 million cut. ernor, the executive, is to make sure budget, which may include the man- Public Schools Act.” That is contrary Atkinson said DPI sent a re- those rules are implemented,” Horn datory elimination of specific positions to “clear direction from the Office of sponse to Roberts’ Oct. 28 letter but did said. “It’s the standard [of] separation or departmentwide personnel reduc- Budget and Management that doing not hear back from him. of powers.” CJ PAGE 4 MARCH 2016 | CAROLINA JOURNAL North Carolina Doctor Finds Concierge Practice Gives Him More Patient Time

By Dan Way der] the service, and I agree to pay for Associate Editor it,” Belcea said. RALEIGH “Not everybody can afford it, r. Octavian Belcea thinks of and that’s why I decided to do the hy- himself as a medical throw- brid program because I don’t want to back, the friendly family doctor turn my back on anyone,” Belcea said. whoD practices old-fashioned, compre- Under a full concierge practice, the pa- hensive treatment of his patients and tients are required to pay the annual their families. fee and join the program; patients who He’s doing so using advanced don’t sign up and pay the fees must medical technology in the state’s first- find another doctor. of-its-kind hybrid “concierge” Wake- The hybrid model allows him to field Family Medicine practice in north treat Medicare patients. Belcea said. Raleigh. Earlier this year Belcea joined As Medicare costs rise and reimburse- Concierge Choice Physicians, the na- ment to doctors keep being squeezed, tion’s second-largest full-service con- patients “will not be able to find an- cierge medical service provider. Concierge care is an alterna- other doctor that takes Medicare. I’m tive catching on across the country. going to continue seeing everybody.” Through CCP’s trademark Hybrid All of the administrative and fi- Choice program, Belcea’s patients may nancial work on the concierge side is maintain their traditional model of performed by CCP, reducing his over- insurance-based health care. Or they head costs. CCP sent a full-time staff could opt for concierge medicine, un- Dr. Octavian Belcea, shown treating patient Anna Nguyen in his North Raleigh office, person to work in his office during his der which patients pay an annual re- is a rarity: a board-certified doctor in a solo family physician practice, with no con- startup, took care of advertising, and tainer fee and in return receive longer nections to large corporations or a medical group. (CJ photo by Dan Way) handled phone calls and follow-up consultations during their office visits, conversations on a toll-free line. along with Belcea’s promise to track Today he believes he is one of Patients can use their insurance His concierge patients can use patients’ medical conditions more only two board-certified, solo practice and their flexible spending accounts to CCP’s network of concierge doctors if closely and follow up as needed. family physicians remaining in the Ra- pay for office visits, co-payments, de- an emergency arises when traveling; “We have worked today for over leigh area. ductibles, and other health care costs. the physicians consult with Belcea. 300 practices with over a half-million “Everybody else works for some Those features distinguish con- All patients are given a USB big corporation or hospital. And what patients and tens of thousands of cierge care from direct primary care, thumb drive containing their medi- does a corporation care about? Money. members,” said Wayne Lipton, CCP which also operates on a retainer basis cal information and history that’s ‘Hey doc, you’ve got to see 40 patients managing partner. “We have steadily but usually does not accept insurance. available to other physicians in the today to make the quota,’” Belcea said. grown since we started 10 years ago. Federal law bars patients from using network. The thumb drive also con- “Well, how can you have time to do We believe that the growth will accel- flexible spending accounts for direct anything, follow up with endocrinolo- tains their DNA information, which erate dramatically in the coming years care. gists, pulmonologists, or look at all is updated continually to a global as a result of the rapid changes in the Under concierge, one annual of- that stuff? It’s impossible.” genetic database, indicating poten- health care landscape.” fice visit is not covered by insurance. He began working longer hours tial health risks and allowing preven- “It’s really what I used to provide and Saturday shifts. Appointment During that visit, Belcea orders any tive care to be customized. when I first opened the office,” Belcea times were growing shorter as he bloodwork or other screening tests he Elaine Ellis, spokeswoman for the said. “As time went on, and things got struggled to compete financially. He deems necessary to evaluate a patient. North Carolina Medical Society, said busier, I kind of noticed that I lost that had a master’s degree in computer sci- “Because I’m providing a non- the organization doesn’t have “any feeling of being different. By starting ence and was reconsidering his career. covered service, there’s no insurance formal position on concierge medicine this program, I’m basically able to get “One of the options was I could issues. The patient signs, I agree to [or- one way or the other.” CJ that feeling back, and the patients ap- just shut down the office, and go back preciate it.” to computer science, and probably His patients have noticed the make more money doing that,” Belcea Free Choice for Workers: changes in health care, “and how ev- said. “Another option was to sell the A History of the Right to Work Movement erybody’s rushed to get in and out,” office. And then the third option was he said. The national average of eight to do the concierge program.” minutes of face time with a doctor He describes the concierge pro- during an office visit is insufficient to gram as “additional testing, additional perform a thorough interview and ex- care, additional time to spend in detail, amination, he said. That’s part of the and follow-ups with hospitals, and fol- reason so many tests are ordered — to low-ups with consultants.” fill in the blanks, driving up health care “When you get an X-ray done, costs. you want to make sure it was done That harried, assembly-line style correctly. And that’s basically what of medicine drove Belcea into solo concierge medicine is,” he said. “Tradi- practice after graduating in 2003 from tional medicine is you order a test, and the UNC-Chapel Hill Family Medicine you hope the patient goes to do it.” Program. By George C. Leef More than half the time hospi- ViceDirector President of Research for Research at the at John the W. “I thought that I could do better tals don’t inform him his patients were JohnPope WilliamCenter Popefor HigherCenter forEducation Higher than that,” he said of the eight-minute seen or admitted. “A lot of times I don’t EducationPolicy Policy office visits. So he became the first — even get a discharge summary from and last — resident since 1986 to open the hospital,” Belcea said. It’s frustrat- “He writes like a buccaneer... a solo practice in the state. ing and time-consuming. recording episodes of bravery, “I had plenty of time with pa- The annual concierge retainer is treachery, commitment and tients, phone calls, emails, urgent vis- $1,650, or $137.50 monthly. That extra vacillation.” its. It was great,” Belcea said of his revenue helps him financially and al- Robert Huberty early experience. “It was exactly what I lows him to expand visit and walk-in (Call Jameson Books, 1-800-426-1357, to order) Capital Research Center dreamed primary care should be like.” times for concierge participants. MARCH 2016 | CAROLINA JOURNAL PAGE 5 North Carolina Court Puts Hold on Obama’s ‘Green’ Power Plant Rules By Dan Way one-fifth of total U.S. GDP losses, Associate Editor with an average annual loss of $10.5 RALEIGH billion and a peak loss of nearly $22 ov. Pat McCrory and a host of billion in 2025. This region also will business leaders were quick to have an average of 60,000 fewer praise the U.S. Supreme Court’s jobs over the 2014-30 forecast pe- decisionG on Feb. 9 blocking President riod, hitting a 171,000 job loss trough Obama’s signature climate change pro- in 2022,” the institute reported. gram from moving forward until a trial Prior to the Supreme Court rul- in federal court is concluded. ing, the North Carolina Chamber McCrory lauded the 5-4 decision was considering filing a friend-of- that could spell legal doom for the the-court brief in a lawsuit brought administration’s Clean Power Plan, by the U.S. Chamber and 14 other which could cause a 22 percent spike in business organizations against the home energy costs in North Carolina, EPA. A decision was anticipated critics of the plan say. The North Caro- “very soon,” according to Gary Sa- lina Chamber, which opposes the plan, lamido, state chamber spokesman. may file a brief on behalf of the state’s “We’re looking forward to a new businesses as the lawsuit heads to trial. administration in Washington. This one “We are pleased the Supreme hasn’t been good to business,” he said. Court recognizes that the federal The Clean Power Plan has in- power plan will dramatically increase Gov. Pat McCrory and the North Carolina Chamber praised the Supreme Court’s 5-4 fused uncertainty into the state’s busi- North Carolina’s electricity rates with decision to block Obama’s Clean Power Plan until a related lawsuit goes to trial. Critics ness climate and “makes it unpre- little, if any, environmental benefit,” say the plan would increase energy costs drastically. (Photo via Wikimedia Commons) dictable” for businesses to determine McCrory said in a written release. “We croachment on states’ rights to set ing on how quickly a decision is ren- future plans without knowing what will continue to fight the Obama ad- their own energy policy. McCrory dered, the Supreme Court could get energy costs might be, Salamido said. ministration’s illegal attempts to take joined the lawsuit after Attorney Gen- the case in time for its October term. “This looks to be a really activ- over North Carolina’s power system.” eral Roy Cooper declined to sign on. “The Clean Power Plan is based ist approach by the federal govern- McCrory contends the fed- The Supreme Court issued no on a strong legal and technical foun- ment to go beyond what people are eral plan would restructure radi- comment explaining its order, which dation, gives states the time and flex- doing, and that’s never good for busi- cally the way electricity is produced was issued days before the unexpected ibility they need to develop tailored, ness when you don’t have a predict- and consumed throughout the death of Associate Justice Antonin Sca- cost-effective plans to reduce their able environment,” Salamido said. country, drastically increase ener- lia. Chief Justice John Roberts, along emissions, and will deliver better air The state Department of En- gy costs, and threaten job creation. with Justices Anthony Kennedy, Clar- quality, improved public health, clean vironmental Quality “has consis- Among other goals, the rules ence Thomas, Samuel Alito, and Scalia energy investment and jobs across tently maintained that the EPA can- the Environmental Protection Agency were in the majority. Dissenting were the country, and major progress in not legally regulate emissions in the articulated under the Clean Power Justices Ruth Bader Ginsburg, Stephen our efforts to confront the risks posed manner set forth under the federal Plan aim to reduce carbon emis- Breyer, Sonia Sotomayor, and Elena by climate change,” Earnest said. power plan,” department spokes- sions 32 percent by 2030 when com- Kagan, all Democratic appointees. Jay Timmons, president and woman Stephanie Hawco said. pared to 2005 levels. Shutting down White House press secretary CEO of the National Association of The state is developing a “prima- coal-fired energy plants, along with Josh Earnest said the Obama admin- Manufacturers, took the opposite view. ry plan” that complies with “the only increasing the use of natural gas istration is confident it will prevail “The granting of our mo- component of the plan that is legal,” and more expensive wind and so- on the merits of the case, which is be- tion to delay implementation while Hawco said. That is the “best way to lar energy, would accomplish that. ing heard by a federal appeals court the courts debate the legality of the comply with the law, protect energy North Carolina is one of 29 on an expedited basis. Arguments Clean Power Plan not only shows the rates, and prevent a federal take- states that sued to halt federal en- are scheduled for June 2. Depend- strengths of the merits of our case, but over of the state’s energy program.” also saves manufacturers from bil- An Environmental Management lions of dollars in unjustly incurred Commission scheduled vote on the regulatory costs,” Timmons said in state’s primary plan was canceled af- a post on the organization’s web site. ter the Supreme Court ruling. The Su- “The Supreme Court’s stay of preme Court’s decision “sends a strong this rule, and the D.C. Circuit [Court of signal that the federal power plan will Appeals]’s order to hear the case quick- be overthrown, and suspends the fed- ly will ensure that America will not be eral government’s ability to impose the forced to make costly and irreversible plan until legal challenges have been implementation decisions based upon resolved,” DEQ said in a blog post. an unprecedented regulation until ju- “The decision relieves states from un- dicial review is complete,” U.S. Cham- necessarily spending time and money ber of Commerce president and CEO to create a plan that complies with the Thomas Donohue said in a statement. rule while the legal case proceeds.” Aside from putting govern- North Carolina has reduced ment in control of energy choices, and greenhouse gas emissions by nearly driving up electricity costs, the plan 25 percent since 2005 without federal would “reduce our nation’s global intrusion while keeping energy costs http://www.facebook.com/jlf.carolina.journal competitiveness,” Donohue said. low, she said. The state is on track to Research by the U.S. Chamber’s meet its 30 percent reduction by 2030. Institute for 21st Century Energy said But a sharp point of contention is the Clean Power Plan would hit the that the federal power plan uses 2012 as South Atlantic region the hardest. a baseline for North Carolina. That bars North Carolina, Delaware, the Dis- the state from receiving credit for any trict of Columbia, Florida, Georgia, emissions reductions made between Maryland, South Carolina, Virginia, 2005 and 2012, and ignores the state’s and West Virginia are in that region. prior investments in making its power “Its GDP losses make up about fleet more efficient, Hawco said. CJ PAGE 6 MARCH 2016 | CAROLINA JOURNAL North Carolina Goodwin: Obamacare Driving Insurers From North Carolina

By Dan Way rowed the scope of networks in some. gressional seat held by GOP Rep. Rich- Conover said, but that’s because fewer Associate Editor But it is not the only company to have ard Hudson. people have enrolled in Obamacare RALEIGH done so. “If anything … the reduction than predicted. Costs would have tate Insurance Commissioner From 2015 to 2016, Goodwin in the number of uninsured is really soared if the projected enrollment had Wayne Goodwin is concerned wrote, “the total number of plans avail- largely attributed to the number of been achieved. that insurers “have left health in- able from insurers in the two markets states that have decided to expand “The annual rate of increase in suranceS markets in droves due to the went from approximately 1,700 plans Medicaid, but other than that it’s re- health care spending vis a vis the rate increased burdens” of the Affordable to 683 plans.” ally not been successful,” said Kather- of increase in the economy is now back Care Act, popularly known as Obam- Due to “large ine Restrepo, health to being about 2 percentage points acare, and that insurers could pull out losses” in 2014 and and human services higher than rate of growth in the econ- of North Carolina’s individual health 2015, “I am highly policy analyst at the omy, and that is literally back to the insurance market completely, leaving concerned insurers John Locke Founda- historical average,” Conover said. thousands uninsured. may withdraw from tion. Health care spending is down Goodwin offered that assess- the individual mar- But states worldwide largely because of a weak ment in an early February letter to U.S. ket in North Caro- that have expand- economy “and the fact that things are Health and Human Services Secretary lina altogether. That ed Medicaid have slower than they would have been if Sylvia Burwell. is unacceptable,” found it “only in- we didn’t have this big recession, and The news comes on the heels of Goodwin wrote. creases costs for this much, much slower-than-average reports that Blue Cross and Blue Shield Compound- private coverage, recovery,” Conover said. of North Carolina expects to lose $400 ing the hundreds of and that squeezes Yet in the United States, he said, million on its Obamacare exchange millions of dollars out the middle-class per-capita health care expenditures policies for 2014 and 2015. in losses are insurance companies’ at- people from being able to afford their “actually are going up [faster] than “According to my staff, North tempts to cut costs. health insurance plans if they don’t other countries.” Carolina had 29 insurers offering indi- The North Carolina Association have them through their employer,” Conover pins some of the blame vidual health insurance coverage prior of Health Underwriters told Goodwin Restrepo said. for insurers’ plight on the companies to the ACA. For 2016, North Carolina “almost no insurers in the individual Medicaid expansion also increas- themselves. “What’s clear with the has only eight insurers who still issue market [are] paying commissions,” es the scope of the government safety benefit of hindsight is that too many of such coverage and a handful of oth- and agents may abandon the sale of in- net, “and when you have government the carriers ended up lowballing” their ers who provide transitional and/or dividual policies. rate-setting, and determining what costs and premiums, he said. grandfathered coverage only,” Good- Goodwin’s assessment is un- services a doctor can provide, that just “I don’t want to argue that was win wrote in the letter. likely to sit well with advocates of the creates all sorts of problems, and ac- purposeful,” and they were trying to “Similarly, for the small group troubled Obamacare health exchanges. cess problems, and then that compro- lose money in 2014, “but that’s what market,” he wrote, “North Carolina As recently as November, Thomas mises quality of care,” Restrepo said. happened. And so the fact that in has gone from 27 insurers offering cov- Mills, a longtime Democratic political “The only thing that’s positive is 2014 costs were lower than originally erage to just 10 in 2016.” consultant and founder of the liberal that we’ve covered a bunch of uninsured projected, we’re now having a catch- Goodwin ties Obamacare’s im- PoliticsNC.Com, wrote on his blog: people,” said Duke research scholar up phenomenon, where premiums pacts to a consolidation of health in- “Contrary to Republican spin, Chris Conover, who has been closely are having to catch up and adjust,” surer groups in North Carolina. Obamacare is working. It’s offered monitoring Obamacare and its effects. Conover said. “In a group, each insurer offers health insurance to an additional 17 Even so, fewer people have While average premium costs similar products and pricing, so North million people. As even conservative gained coverage than both the Con- among the three exchange insurers in 2016 Carolinians are left with fewer distinct columnist David Brooks notes, medi- gressional Budget Office and Centers went up between 20 percent and 32.5 per- coverage options than before the con- cal costs are increasing at a slower rate for Medicare and Medicaid Services cent, “that’s going to get amplified next solidations,” he wrote. since the program was enacted. That’s projected. And those with policies are year because [temporary federal subsi- BCBSNC, the state’s largest in- what the program was meant to do: not always able to see a doctor, as some dies] that were designed to reassure car- surer in the individual health insur- Provide more coverage and help re- people on the North Carolina exchange riers in the initial years, and entice them ance market, has cut back significantly duce costs.” Mills is the Democratic have complained. into the market, all that stuff goes away the number of plans it offers and nar- candidate for the 8th District U.S. con- “Aggregate costs are lower,” after 2016,” Conover said. CJ Locke, Jefferson and the Justices: Foundations and Failures of the U.S. Government Visit the new Carolina Journal Online By George M. Stephens

Preface by Newt Gingrich

“This book is about American politics and law; it is also about the roots of the Contract with America. A logical place to find the intent of the Founders is in Locke, [and] Stephens makes a contribution to highlighting this.” Newt Gingrich Former Speaker U.S. House of Representatives

http://carolinajournal.com Algora Publishing, New York (www.algora.com) MARCH 2016 | CAROLINA JOURNAL PAGE 7 North Carolina DOT: State Faces $60 Billion Gap in Transportation Funding By Barry Smith transportation needs is complicated Associate Editor by an apparent shift in the preferred RALEIGH mode of transportation by younger ransportation planners told a North Carolinians. House committee in early Feb- “There seems to be something ruary that the cumulative gap with the millennials — with the young- betweenT anticipated revenues and pro- er generation — where they don’t feel jected spending through 2040 would as compelled to get their driver’s li- be about $60 billion. cense or purchase an automobile,” Tor- N.C. Department of Transporta- bett said after the meeting. “So we’ve tion planners Burt Tasaico and Patrick got to somehow figure out what a bal- Norman told the House Select Com- ance is to address those needs. mittee on Strategic Transportation and “So we may have to shift more Long-Term Funding Solutions that the from expansive programs to maybe state population is expected to grow go to light rail systems or subway sys- from the current 10 million to 13 mil- tems, like [Washington,] D.C., or At- lion by 2040. From left, Reps. Susan Martin, R-Wilson, Allen McNeill, R-Randolph, and Pat Hurley, lanta, for example.” Norman noted that by 2040, 74 R-Randolph, listen to a presentation on transportation funding projections. (CJ photo Torbett said he wants North Car- percent of the state’s population would by Barry Smith) olina to be proactive, rather than reac- be living in six major metropolitan ar- Traditionally, gas taxes, motor ve- his whole district almost was beating tive, to the needs. eas — Charlotte, Raleigh-Durham, hicle fees, highway use taxes (such as up on him,” Carney said. “So I’m not “What I don’t want to do is what Greensboro-Winston-Salem, Asheville, sales taxes on vehicle purchases), and sure that that is a way to go. It’s going in my opinion the state has done and Fayetteville, and Wilmington. some tolls comprise the bulk of rev- to take a whole lot of educating of the has waited until it’s smacking you in Norman said that keeping up enues for transportation. public if we go down that road.” the face to try to make that decision, with the state’s transportation needs Committee members were in- The chairman of the committee, at which time we’re either obsolete or over that period would require $114 formed of several options to increase Rep. John Torbett, R-Gaston, said after way behind,” Torbett said. billion in spending. He said projected revenues, including raising taxes and the meeting that actions taken by the Torbett said the committee wants revenues over the same time period fees, adding tolls to more highway General Assembly in 2015 could lower to wrap up its work before the 2016 total only $54 billion, leaving a $60 bil- corridors, adding surcharges to auto the expected gap somewhat. short legislative session, which begins lion gap. insurance, adding property taxes to Last year, the General Assembly April 25. However, he said it may take The total projected needs cover vehicles, and charging motorists a fee stopped transferring money from the longer than that. all types of transportation, including for every mile they drive, aka a vehi- Highway Fund to the General Fund “The more we dig, the more we highways, aviation, rail, bicycle and cle-miles-traveled fee. to pay for the State Highway Patrol. In see that we need to dig more,” Torbett pedestrian trails, public transporta- Rep. Becky Carney, D-Mecklen- addition, lawmakers increased motor said. tion, ferries, and ports. burg, noted that an earlier task force vehicle fees, such as driver’s licenses, The committee may submit an in- “I just hope we will be doing had mentioned the VMT fee. vehicle registration, and title fees. terim report for the short session, with needs, needs, needs instead of wants, “The minute we threw out ve- “That $60 billion gap may now be a few minor recommendations, and wants, wants,” Rep. Pat Hurley, R- hicle miles traveled, one of the mem- $54 billion,” Torbett said. have the full report completed before Randolph, said. bers didn’t even get out of here before Torbett said predicting future the 2017 regular session, he said. CJ Auditor: Bellhaven Let Utility Users’ Bills Slide, Debt Mount By Barry Smith town manager to follow the town’s customers more time to pay their bills. by more than 90 days, and 77 past-due Associate Editor utility cut-off policy when customers The town’s mayor, Adam O’Neal, accounts had balances greater than RALEIGH became delinquent on their utility bills. and the town council were aware of the $1,000. report from the state audi- Jarvis said the town sells elec- large delinquent customer account bal- The report recommended that tor revealed that the eastern tricity, water and sewer, and garbage ances, the report says. the town manager enforce the utility North Carolina town of Bel- pickup services to its residents and In a letter from Jarvis to Wood, cut-off policy and that the town coun- havenA failed to cut off utilities for 629 businesses. The former town manager Jarvis disputed the claim that the may- cil make sure it is enforced. It also rec- accounts, with unpaid bills in June was Guinn Leverett, he said. or and council were aware of the large ommended that the town board seek 2015 totaling $429,888. Town officials “If the town manager does not delinquencies. legal counsel to evaluate the viability say they inherited the problems from follow the cut-off policy, delinquent “We contend that the mayor and of collection proceedings on past-due previous administrators, a contention balances will continue to increase, and town council were not aware of the accounts. challenged by correspondence cited in the town’s utility fund may experience large delinquent account balances in The town’s response to the audit the audit. cash shortages and not be able to pay the Town of Belhaven Utility enter- also detailed a plan to work with de- Belhaven Town Manager Woody its obligations,” the audit report says. prises,” Jarvis wrote on Jan. 11. The let- linquent customers to make their ac- Jarvis acknowledges that the town has “Also, the town council may have to terhead still listed Leverett as the town counts current. The plan requires those customers to pay current balances in had problems collecting utility bills increase utility rates to cover lost rev- manager. full by the 15th day of each month and and said officials are trying to fix the enue, which negatively affects local The audit, however, referred to make arrangements to begin repaying problem. business owners and residents.” a Dec. 18, 2014, letter from the Local any delinquent amounts. “We’re working on it just as hard The town didn’t enforce the Government Commission to O’Neal In addition, Jarvis notes in his let- as we can,” Jarvis said. He said the utility cut-off policy because, accord- that pointed out that the town’s cut-off ter to Wood that the town has a hard- town has new top managers trying to ing to Leverett, “Some residents were policy wasn’t strictly enforced. ship committee that meets weekly, and fix problems left by previous leaders. financially depressed, and manage- “We strongly encourage the town that the manager and finance officer “We have had a complete turn- ment tried to work with them and not to enforce its policy as a means of im- prepare payment plans for delinquent over in town manager and finance offi- disrupt utility service until the local proving collections,” the Local Gov- customers. cer,” Jarvis said. “I can’t speak for what economy rebounded,” the report says. ernment Commission letter said. The audit also found that the happened in 2013. I don’t know.” It also says the town didn’t pursue The report showed that of 1,294 town did not have a written travel pol- What happened before Jarvis ar- payment because some residents had active accounts, 235 were past due icy, and that the former town manager rived at his job, according to the audit health issues and the town should with customers still receiving utility and former finance officer failed to re- report, was the refusal of the former show compassion by providing such services, 136 accounts were delinquent port accounts receivable correctly. CJ Hed here

PAGE 8 MARCH 2016 | CAROLINA JOURNAL North Carolina Lawmakers Cannot Agree on Reforming Insurance Benefits

By Barry Smith nation that this is a good buy for the Associate Editor employee, and, most importantly, that RALEIGH it’s in the interest of the state,” Hise legislative oversight committee added. meeting in early February de- The reform bill would continue to layed recommending changes allow some variations across the state, inA supplemental state employee insur- but add requirements for competitive ance benefits after members could not bidding and committee oversight. agree whether to reform the current Sen. Fletcher Hartsell, R-Cabar- system or overhaul it. rus, who co-chairs the committee, said Rep. Nelson Dollar, R-Wake, the panel would decide among the op- who represents a district where a large tions at its March meeting. number of state employees reside, sug- The Program Evaluation Over- gested reforming the current system, sight Committee also recommended which allows divisions of state govern- that the General Assembly adopt leg- ment in different geographic regions islation that would help the state man- flexibility in their supplemental benefit age its real property more effectively packages. and provide a way of identifying and “There definitely needs to be disposing of surplus property. some tightening in a number of areas,” The committee also recommend- Dollar said, while urging lawmakers to ed legislation tightening procedures keep the basic structure of the system for state agencies that award service in place. Sen. Rick Gunn, R-Alamance, discusses a recommendation to monitor the state’s contracts. An earlier report determined “State employees are very intel- property as committee chairman Sen. Fletcher Hartsell, R-Cabarrus, looks on. (CJ ligent people,” Dollar said. “We rely photo by Barry Smith.) that state agencies had awarded con- tracts valued at $511 million through on them for a lot of very complex and failed to manage the supplemental in- “I think we have seen over and important things getting done in this surance products properly. over again that even at the state level, noncompetitive practices. The pro- state.” The report, by the division’s Jeff at the small committee level and oth- posed bill would require service con- The supplemental insurance ben- Grimes, showed that some commit- ers, there is not sufficient oversight of tracts of $5 million or less to obtain the efits include dental, vision, disabil- tees weren’t meeting as often as they this process to be granting access to written approval of the state purchas- ity, cancer, legal, and pet insurance. should and may permit vendors to of- employees’ payroll and to putting the ing officer. Both the state purchasing Employees pay the premiums for the fer insurance without a contract or a state’s seal of approval on these prod- officer and the Office of State Budget benefits they choose through payroll competitive bidding process. ucts by allowing them to be offered and Management would have to ap- deductions. Sen. Ralph Hise, R-Mitchell, when we’re not doing our due dili- prove service contracts exceeding $5 Last October, the committee wants to overhaul the system into one gence and oversight,” Hise said. million. heard a report from the General As- giving a central state employee com- “We need to make sure that when The committee also sent to a sub- sembly’s Program Evaluation Divi- mittee the authority to decide an ar- we’re allowing these companies that committee a proposal for the state to sion claiming that employee insurance ray of supplemental insurance benefits access an employee’s paycheck, that scrap its current three-tiered system of committees are ineffective and had that would be available statewide. we have made the good-faith determi- awarding economic incentives. CJ ‘Zero Tax Bracket’ Issue May Rise in Short Legislative Session By Barry Smith “A standard deduction tends to Ford said after the meeting. “I’m all for If approved, the standard de- Associate Editor help out significantly the middle-in- tax relief for working families. I want duction for married taxpayers filing RALEIGH come people,” Rucho said. to balance that with meeting the needs jointly would increase from $15,500 to egislative leaders are floating a He said making up for the lost and obligations of the state.” $17,500, Boardman said. For single tax- proposal to increase the standard revenue should not be a major prob- Ford said the key question is payers, it would increase from $7,750 deduction — or what Sen. Bob lem, and that al- what budget item to $8,750. For head-of-household tax- LRucho, R-Mecklenburg, calls the “zero lowing taxpayers gets sacrificed to payers, it would increase from $12,400 bracket” — on North Carolina income to keep more of pay for it. to $14,000, he said. taxes, a move that could eliminate state their money could “It’s going income taxes for tens of thousands of help boost the Proposal would to have to come Boardman said a couple with taxpayers. state’s economy. increase the from somewhere,” an adjusted gross income of $43,916 Barry Boardman, chief economist “It’s roughly Ford said. “Are would see a $115 reduction in state at the General Assembly, told a Feb. 9 $200 million. The standard deduction you asking me to income taxes owed if the change took meeting of the legislature’s Revenue lion’s share will be pull that revenue effect. Laws Study Committee that a $2,000 focused on people for married couples stream out of the Boardman said that increas- increase in the standard deduction for going from $70,000 budget that could ing the standard deduction primar- married taxpayers filing jointly would or less,” Rucho by $2,000 go for teacher rais- ily would benefit middle- and lower- mean 70,000 to 75,000 current North said, comment- es and benefits? income taxpayers because taxpayers Carolina taxpayers no longer would ing on those who The answer to that with higher incomes usually itemize owe income taxes. would benefit most from the proposed question is no.’’ their deductions. The change would reduce state change. “That will be another $200 mil- However, Ford said with the right Seventy percent of the 4.3 mil- revenues by an estimated $195 million lion — at least — driven into the econ- spending priorities, he could support lion tax returns filed in North Carolina to $205 million per year, Boardman omy for purchasing goods and services increasing the standard deduction. “If use the standard deduction, Boardman said. that they want.” you can prioritize and meet the needs Rucho, one of the co-chairmen of Sen. Joel Ford, D-Mecklenburg, of this state and still provide working- said. The remaining 30 percent itemize. the committee, said after the meeting was more cautious about the proposal. class tax relief, sign me up,” Ford said. The committee took no action. he plans to push for the change in the “It sounds good on paper, but like “But don’t ask me to sacrifice raises However, the matter could come back upcoming short session of the General any tax policy proposal, the measuring for school teachers or other important for discussion March 8, the committee’s Assembly. of the fiscal impact is also important,” state service deliveries.” next scheduled meeting date. CJ MARCH 2016 | CAROLINA JOURNAL PAGE 9 Local Government Raleigh Sidewalk Dining Committee Parses Table Definitions

By Kari Travis has a big thick code that overcom- Associate Editor plicates the situation. So are we that RALEIGH unique?” evere weather postponed a Feb. The committee’s Feb. 24 meeting 24 meeting of a committee ap- was set to discuss the scale of an estab- pointed by the Raleigh City lishment’s furniture compared with SCouncil to revise rules for restaurants its total outdoor dining space. Mem- and bars with sidewalk dining areas — bers also were to make a final review a discussion that led committee mem- of their recommendations for signage, bers to look at the way outdoor dining stanchions, and overall furniture ap- is regulated in cities of various sizes pearance. Those discussions now are within North Carolina and around the set to take place in early March, after world. press time. The delay meant that business The discussion about how to reg- owners, diners, and downtown resi- ulate Raleigh’s outdoor dining “look,” dents would have to wait until March which has consumed seven separate to learn whether the council will con- meetings, stems from an almost year- tinue a debate over the difference be- long controversy regarding proper use tween picnic tables and “communal of public sidewalks for patio dining. seating” — a debate that dominated Conflict arose in May of 2015 two hours of discussion at the Feb. 17 when complaints about late-night ac- meeting of the Outdoor Design Review Under outdoor dining regulations proposed to the Raleigh City Council, picnic tables, tivity along the Fayetteville Street cor- Committee, a part of the Raleigh City like these outside Calavera Empanadas and Tequila Bar on Blount Street, would be ridor spurred the city council to take Appearance Commission. outlawed outside restaurants on Fayetteville Street because the benches are attached action. Initial recommendations in- to the tables. (CJ photo by Kari Travis) The committee was tasked by volved stripping patio privileges from the city council to look at outdoor din- quired,” said Bryan O’Haver, the com- mosphere makes it difficult to regulate bars and private clubs but not restau- ing design rules put into effect last mittee’s chairman. “One of the issues furniture and setting for all establish- rants. Bar owners protested, and the year. Toward the end of the meeting, — and I hope we haven’t been tiptoe- ments with outdoor dining. city responded by proposing an alter- it finally concluded that picnic tables ing around it for the last six weeks — “I’m still struggling with ‘what is nate “pilot program” to place curfews should be banned from Fayetteville are the picnic tables. And I think what the architectural character of Fayette- and capacity limits on outdoor dining Street — which runs through the center we’re trying to do is to be flexible.” ville Street?’” asked committee mem- for both restaurants and bars. of downtown — with the understand- All of the bar owners attending ber Asa Fleming. “I mean, what is it? That three-month program un- ing that picnic tables would be allowed the Feb. 17 meeting said they would That, to me, is the real question.” derwent review by the city council at eating establishments on adjacent not object to removing picnic tables Each block of the corridor dis- late last year, making way for further streets and in other parts of the city. discussion about the appearance of along the city’s main street, so long plays a different characteristic of the The debate over outdoor dining as “communal tables” with detached sidewalk furniture and stanchions. city, making it crucial to provide some design has pitted restaurant owners benches could be used instead. Res- Members of the council moved that de- room for regulatory interpretation, and their patrons against a small but taurants like Blount Street’s Calavera bate to the appearance commission for said O’Haver. vocal group of downtown residents Empanadas and Tequila Bar wouldn’t what was supposed to be a six-week complaining about noise, traffic, and be required to remove its brilliant red “Staff has worked really, really study and work session. trash from late-night revelers — and picnic tables, though owner Ken Yow- hard over a two- or three-week period The design committee’s next leading city officials to ponder how ell said he would give up the tables if to bring us examples of other codes meeting, its eighth, will try to wrap much “vibrancy” is too much. required to do so. from cities in North Carolina, from cit- up loose ends on the proposal — but “I’m not trying to be disparaging At the heart of the issue, some ies in [other] states, from international the city council could modify or scrap to business owners, because they’re committee members pointed out, is the cities, similar-sized cities, [and] larger any recommendations the committee just trying to figure out what’s re- fact that Fayetteville Street’s varied at- cities,” O’Haver said. “None of them makes. CJ Visit the new Carolina Journal Online

http://carolinajournal.com PAGE 10 MARCH 2016 | CAROLINA JOURNAL Local Government Justices: Sheriffs May Fire Deputies Not Donating to Campaigns

By Michael Lowrey a number of exceptions to this, includ- charge violated her free-speech rights “After considering these statuto- Contributor ing that a discharge may not violate the under the N.C. Constitution. The N.C. ry and decisional factors, we conclude RALEIGH state’s public policy. The General As- Supreme Court has held that free that, by standing in the elected sher- n a dispute pitting political speech sembly has established a public policy speech rights under the state constitu- iff’s shoes, a deputy sheriff fills a role against the authority of public that county employees should not be tion are very similar to those protected in which loyalty to the elected sheriff agencies, in January the N.C. Su- subject to certain by the First is necessary to ensure that the sheriff’s Ipreme Court ruled that a sheriff could types of politi- Amendment policies are carried out.” fire a deputy for refusing to make a cal coercion, as of the U.S. contribution to the sheriff’s re-election Young argued Constitution. Other fired employees campaign. was her situa- The At the same time, the Supreme In a separate opinion, the court tion: She said she U.S. Supreme Court considered appeals from several refused to determine whether non- lost her job be- Court has held other employees fired by Bailey, in- deputy employees of a sheriff’s depart- cause she did not that “[a] state cluding Ivan McLaughlin. McLaughlin ment also could be fired for not sup- make a contribu- may not con- was not a sworn law enforcement of- porting the sheriff’s re-election. tion to her boss’s dition public ficer, making his free-speech argument Terri Young was hired by the campaign. employment different than Young’s. Mecklenburg County Sheriff’s Office The Su- on an employ- The justices rejected McLaugh- as a deputy in 1990 and had worked preme Court ee’s exercise of lin’s claim for a separate reason. her way up to captain by 2010. In held that em- his or her First McLaughlin was terminated for vio- June 2009, Daniel Bailey, the sheriff ployees working Amendment lating departmental policies, so even at the time, sent a letter to all depu- for a sheriff are not county employees, rights.” This protection is not absolute though (like Young) he did not contrib- ties seeking contributions for his 2010 even though sheriff’s offices get their and does not apply if “the hiring au- ute to Bailey’s campaign, McLaughlin’s re-election campaign. Young didn’t funding from county taxes. thority can demonstrate that party af- firing was backed up by a departmen- make a donation. Soon after Bailey’s The court noted that the office of filiation is an appropriate requirement tal review. The justices left for another 2010 re-election, Young lost her job. sheriff is defined in the state constitu- for the effective performance of the day a decision about whether non-dep- Young sued, claiming that Bailey fired tion, the General Assembly has recog- public office involved.” uty employees of a sheriff may be fired her because she did not donate to his nized the unique nature of the position, “Deputies are a reflection of their for their political speech. campaign and that her termination vi- and only a sheriff has the statutory au- sheriff. They serve as the alter egos of The case involving Young is Young olated state public policy and her free thority to hire and fire employees. the sheriff and, if liability results from v. Bailey, (355PA14-2). The justices’ de- speech rights under the N.C. Constitu- “In light of the distinct demarca- the acts of a deputy, the sheriff is held termination on McLaughlin’s claim is tion. tion between county government and responsible,” wrote Edmunds in reject- in a separate opinion, McLaughlin v. The N.C. Court of Appeals, fol- the office of the sheriff, we conclude ing Young’s claim. Bailey, (163A15). CJ lowing court precedents, issued a that a sheriff’s office is not a program unanimous ruling against Young, but or department of a county and agree the N.C. Supreme Court accepted with the consistent holdings of the Young’s request to hear the case. Court of Appeals that a deputy sheriff or employee of a sheriff’s office is not a Public policy vs. free speech county employee,” wrote Justice Rob- ert Edmunds for the high court. www.JohnLocke.org Before the Supreme Court, Young repeated her claims that her discharge Not a county program YOUR HOME ON THE WEB FOR violated both public policy and her free-speech rights. “Because a sheriff’s office is not NORTH CAROLINA PUBLIC POLICY North Carolina is an employ- a program or department of a county, ment-at-will state, meaning that em- the fact that the sheriff’s office receives CreatingGoing your to www.JohnLocke.orgown personal Key Account each at day is a ployers generally can let employees go funds therefrom is of no moment.” at any time for any reason. There are Young also argued that her dis- greatwww.JohnLocke.org place for you isto a track great startingcritical placepublic for policy tracking is- suesthe critical facing public North policy Carolina. issues facing North Carolina. Available at the JLF website are policy reports, Each day, your Key Account searches a comprehensive Share your copy briefing papers, news articles, press releases, col- of Carolina Journal umnsdatabase by ofour JLF analysts, reports, briefingand event papers, notices. news articles, pressOur releases, site is and an eventsexcellent notices tool to for display those timely drafting Finished reading legislation,information researching about the issues policy of your issues, choice. preparing It’s an all the great articles in newsexcellent stories, tool forplanning those drafting political legislation, or lobbying researching cam- policy issues, preparing news stories, planning political this month’s Carolina paigns, or seeking information with which to be a anor informedlobbying campaigns, voter and or citizen. seeking information with Journal? Don’t just which to be an informed throw it in the recy- voterVisit and www.JohnLocke. citizen. cling bin, pass it along org and you’ll be well- informedVisit www.JohnLocke.org on the issues to a friend or neigh- facingand create North your Carolina personalized and bor, and ask them to herKey citizens. Account today! do the same. Thanks. MARCH 2016 | CAROLINA JOURNAL PAGE 11 Local Government

Justices Exhibit Skepticism COMMENTARY In Map Act Appeal Arguments Build it, Even If

By Barry Smith document, a zoning ordinance that They Won’t Come Associate Editor talks about land uses in the future.” RALEIGH “Isn’t it actually designed to ul- conomic research has shown franchise. City officials said they n a packed Supreme Court cham- timately acquire property, not just to that stadium subsidies are would consider using tax money to ber on Feb. 16, the state’s justices regulate it?” Justice Robin Hudson bad public investments. That help fund the new stadium. considered the question of whether asked. hasn’tE reduced the desire of local As stadium ideas go, this is INorth Carolina’s Map Act amounts to “The acquisition of the property governments to throw money at about as daft as it gets. McPhiliamy an exercise of the state’s police power comes when the Department of Trans- professional sports teams. Making is fishing for the public money for — much like local zoning laws — or portation proceeds with a project,” matters worse, when local govern- a new home for his lacrosse team, instead constitutes eminent domain, Maddrey said. requiring just compensation to land- “Isn’t that ultimately the goal?” ments choose to play this game, which plays all of seven home owners whose property is included in Hudson asked. they often do so strangely, as in the games a year. Even if you are OK highway corridors drawn by the N.C. “Ultimately, if the project is ap- ways Raleigh and Charlotte are try- with public funding for privately Department of Transportation. proved to go forward by the Board of ing to attract a top-tier professional owned sports teams, that’s just The Map Act allows the DOT to Transportation, then there will be ac- soccer team. hard to justify. file maps of future highway corridors quisition of property,” Maddrey said. The country’s top soccer It’s also unclear if the pro- with local officials and block construc- The map is set in advance of that deci- league is Major League posal is practical at this tion permits from sion, he added. Soccer. MLS currently site. Over time, stadiums being issued on Matthew has 20 teams and is in and arenas have gotten the affected prop- The North Carolina Courts Bryant, arguing growth mode. In Decem- more elaborate, requiring erty for three for the property ber, the league upped its more land for a par- years or longer. owners, said that goal to 28 teams, com- ticular seat count. The The justices heard the Map Act im- mitting to four franchises old stadium sits beside an appeal from poses develop- in addition to already DOT of a ruling ment restrictions a major street on Central announced expansion issued last year on property in Piedmont Community franchises in Atlanta, by a unanimous highway corri- College’s main campus Court of Appeals dors for the pur- Miami, Minneapolis, and MICHAEL and has little available that sided with a pose of control- a second team in New LOWREY land nearby. group of Forsyth York City. It’s widely ex- Having a sports sta- County landowners. The appeals court ling prices. “That is a taking requiring just pected that Sacramento dium on that parcel may ruled that when the state invoked the and San Antonio will not be the best use of the Map Act, it was using eminent domain compensation,” Bryant said. be included in this next round of land. As Charlotte continues using powers, requiring property owners to Bryant pointed out the difference infill development to attract new be compensated. between government police and regu- expansion, leaving just two spots While the case before the state latory powers, such as with zoning available. residents, the number of people Supreme Court deals with property laws, and eminent domain powers. The league prefers that teams wanting to take classes at CPCC owners in Forsyth County, the Map “There is a difference — a consti- have their own stadiums, rather is likely to go up. An easy way to Act also has been used in Guilford, tutional difference — between telling than a facility shared with some accommodate some of that growth Wake, Cleveland, Cumberland, and the owners you can’t build too close to other major sports franchise — would be to put a classroom build- Pender counties. The outcome of the his other neighbor’s house and telling though that isn’t always possible ing or two where the stadium cur- case could determine whether the that same owner you can’t build that — and that they’re located down- rently sits. DOT has to pay hundreds of millions there because someday in the unan- town. The stadiums typically seat In Raleigh, meanwhile, a of dollars in compensation to as many nounced future at some unknown time 18,000 or more and have luxury downtown group released a 10- as 1,500 property owners statewide. the state is going to want that proper- boxes and other fancy amenities. year vision plan that includes a “The Department of Transporta- ty,” Bryant said. How much does such a facility new stadium or arena. For what tion contends that the Map Act is a reg- team? The plan’s vision doesn’t Bryant said that some of the cost? Recently completed and pro- ulatory enactment within the proper extend that far, though the owner property owners’ fights with the state posed MLS stadiums are running scope of state police power,” said John have gone on for 20 years. of the local minor league Carolina in the $100 million to $150 million Maddrey, the state’s solicitor general, “They’re asking Mr. Kirby to wait Railhawks soccer team said he’d range. who was making the case for the DOT. until he’s dead,” Bryant said, referring like to see the MLS come to Ra- In June, The Charlotte Observer “It is designed to coordinate future to Gene Kirby, the lead plaintiff in the leigh. road projects with current and future case. reported on an expandable sta- Having a vision is nice. But uses … in and around municipalities Newby questioned if the DOT’s dium option as a means of poten- it takes two to tango, and recent and rural areas.” action could be considered a tempo- tially attracting the MLS. news reports suggest that MLS Justices peppered Maddrey with rary taking, such as when a construc- Jim McPhiliamy owns the isn’t targeting Charlotte or Raleigh. questions. tion crew uses property for a tempo- Charlotte Hounds of Major League “How would you characterize Instead, MLS Commissioner Don rary period of time. Lacrosse and is involved with a mi- the benefit or the purpose of the Map Garber says that in addition to “There’s nothing temporary nor-league soccer team, the Char- Act?” Justice Paul Newby asked. “Isn’t Sacramento and San Antonio, St. lotte Independence. The Hounds it to set in place the value of the prop- about this,” Bryant responded. “It is a Louis, San Diego, and Detroit are currently play at American Legion erty … by restricting improvements or permanent taking. We call them that. being considered. subdivisions to keep the ultimate cost … Everyone knows that the road is Memorial Stadium, which opened Subsidizing stadium con- of the property at a particular level?” coming.” in 1936 and shows its age. struction generally is a bad idea. “That is certainly one aspect or el- Bryant said that the Map Act also McPhiliamy’s idea is to tear Even worse is spending public ement of the rationale behind the Map allows the DOT to delay condemning down the old stadium and replace money on sports facilities for teams Act,” Maddrey responded. “But pub- property, which reduces the cost to tax- it with a more modern facility, that may never come to town. CJ lic purpose or benefit can be broadly payers. seating 9,000 at first but with the described as coordinating future road The justices made no ruling. Typ- possibility of handling 20,000 to Michael Lowrey is a contributor projects and current and future land ically, the high court issues opinions 25,000 should the city get an MLS to Carolina Journal. uses. It has similarities to a county or several months after hearing oral argu- city adopting as long-range planning ments. CJ PAGE 12 MARCH 2016 | CAROLINA JOURNAL From Page 1 N.C. Railroad Gives Millions to Megasite Project Continued from Page 1 Hoenk acknowledged that no legislative committee has authorized NCRR’s participation in the megasite project. “However, we have kept leg- islative and administration leadership briefed on our plans,” she said. The Joint Legislative Transporta- tion Oversight Committee has the re- sponsibility for overseeing NCRR ac- tivities. Committee Co-Chairman Sen. Bill Rabon, R-Brunswick, said he was aware of the planned purchase but was not sure if the full committee knew about it. He said NCRR is scheduled to provide an update of its activities at a committee meeting scheduled for March 4. Rabon also said he has confi- dence in the NCRR board. The N.C. Department of Com- merce lists two other megasites as ready for an automaker. One is near Siler City and the other near Rocky Mount. Gov. Pat McCrory said in Janu- ary that the state intends to go after a major manufacturer using North Caro- lina’s megasite offerings as an entice- ment. “It’s one of our major priorities, but we’re going to go after the big dog in manufacturing, which is either go- ing to be in aerospace or automobiles,” McCrory told an annual Economic Forecast Forum in January, as reported by Triad Business Journal. The Greensboro-Randolph Megasite is located in the northeast corner of Rutherford County, and lies between U.S. 421 on its western boundary and the Norfolk Southern Railway line on its northern boundary. (CJ graphic) North Carolina Railroad Frank Rouse of Leland is the cur- property by false pretense. Megasite opposition rent chairman, and state Commerce To open the state for economic Ferguson and others formed the Secretary John Skvarla is another Megasite Foundation development, in 1848 the General As- Northeast Randolph Property Own- board member. sembly passed a bill calling for an In February 2015, immediately ers to fight the project. Ferguson is op- east-west railroad between Goldsboro Project leadership unclear after Powell’s resignation, former posed not only to this project but also and Charlotte. The General Assembly Greensboro Mayor E.S. “Jim” Mel- to any use of government funds to as- approved a plan under which 25 per- There are other entities with a di- vin formed the Greensboro-Randolph sist private companies — often called cent of the shares would be for private rect stake in the megasite project, how- Megasite Foundation with the stated corporate welfare. The organization’s purpose of acquiring land for the site stockholders and the remainder would ever. The Piedmont Triad Partnership, website (northeastrandolphproper- — bringing an additional player to the be owned by the state. a regional economic development tyowners.com) contains a considerable potential management and oversight In 1856 the first train ran the en- organization, began working quietly amount of information about the his- of the project. in 2010 to identify a megasite loca- tory of the project. tire length of the line. NCRR entered The foundation’s five board tion. Randolph County and the city of At a Feb. 9 Randolph County into a 99-year lease with Southern Rail- members include Melvin, Greensboro way (now Norfolk Southern) for oper- Greensboro later joined the effort. The Commission meeting to rezone the Department of Commerce made a $1.7 City Manager Jim Westmoreland, ations and maintenance. In 1989 NCRR and Randolph County Manager Hal property from residential/agricultural million grant to Randolph County in acquired the tracks from Goldsboro Johnson. Melvin also is the president to heavy industrial, Ferguson spoke 2012 to support the development and to Morehead City. In 1998 the state of of the Joseph M. Bryan Foundation, against the proposal and presented acquisition of a megasite. The groups North Carolina bought out the private a Greensboro-based nonprofit that commissioners a petition signed by eventually settled on the current loca- shareholders, making NCRR a private awards about $3 million annually in more than 400 area residents opposing tion that involves approximately 60 company, fully owned by the state. The charitable grants to organizations in the megasite project. The commission- separate parcels. next year, NCRR and Norfolk South- the Greensboro area. The Bryan Foun- ers voted 3-2 in favor of rezoning the David Powell, chief executive 1,500 acres. ern reached an agreement for Norfolk dation committed $5 million to sup- officer of the Piedmont Triad Partner- Ferguson told CJ that the NCRR’s Southern to continue freight and main- port the Megasite Foundation. The ship, resigned in January 2015. At the involvement was a surprise. tenance operations for 15 years, with Megasite Foundation currently is in time Powell left, his annual salary was the process of buying approximately “After almost four years of try- an option to renew the agreement for $326,000. The megasite was a high pri- ing to find private investors for this an additional 30 years. 200 acres. ority for PTP. The Megasite Foundation’s web- project, the boosters were unable to In 2001 NCRR “implemented In April 2015, PTP learned that site lists Randolph County Economic find enough,” he said. “The railroad a Corridor Improvement Plan to im- Powell had been involved in “financial Development Commission President has apparently stepped in at the last prove the maintenance, integrity, and irregularities” and asked the Greens- Bonnie Renfro and Greensboro Part- minute and bailed this project out in economic potential of the railroad cor- boro Police Department to investi- nership President Brent Christensen as order to save it from failing. Those of ridor.” NCRR’s current mission state- gate the matter. In January, the Guil- contacts. Christensen’s organization is us who have opposed this project still ment is: “To develop the unique North ford County District Attorney’s office a nonprofit handling economic devel- can’t figure out why NCRR doesn’t Carolina Railroad assets for the good charged Powell with two felony counts opment efforts for the city of Greens- spend money in its own corridor on of the people of North Carolina.” each of embezzlement and obtaining boro. railroad improvements.” CJ MARCH 2016 | CAROLINA JOURNAL PAGE 13 From Page 1 High Court Refusal to Issue Stay Results in Political Scramble

Continued from Page 1 professor at N.C. State University, of- court ruling to stand puts North Caro- ing the new maps is a legal gamble. fered another twist on the possibilities. lina into “electoral chaos with the real “The General Assembly did not That deviates from the “Purcell Princi- “Roberts thought the court’s go- potential that thousands of votes cast do North Carolina candidates or vot- ple,” first stated in the Purcell v. Gonza- ing to be deadlocked anyway, so that with the 2011 maps [will be] invalidat- ers any favor by radically altering the lez case in 2006, which asserted courts would mean that the lower court’s de- ed,” McLennan said. congressional districts and publicly should not change election rules close cision is upheld, 4-4,” Taylor said. So “The real losers in this legal-leg- stating that they did not take race into to an election. he declined to issue a stay or refer it to islative dispute are the voters of North consideration when drawing the new Bitzer thinks also that the ruling the full court in the belief that, “You’ve Carolina. Many who do not follow the districts,” McLennan said. That could on North Carolina’s request for a stay got a great start on this, you’ve got a behind-the-scenes happenings of elec- spark opponents to file another law- “was greatly impacted by the passing contingency plan, why don’t you just toral politics will be confused as the suit. of Associate Justice [Antonin] Scalia.” do that,” and allow the case to work its candidates who appear on the June 7 Although the Supreme Court re- “Scalia’s death likely had much to way through the normal court process. ballot are not the ones who have been moved the requirement of the 1965 Vot- do with the resulting 4-4 philosophical All four professors agree the tu- campaigning in their district prior to ing Rights Act for North Carolina and divide among the remaining justices,” mult bodes ill for voters and candi- Feb. 19,” he said. other Southern states to obtain Justice McLennan said, likely swinging Chief dates. “Having a bifurcated primary Department approval for new maps, Justice John Roberts’ decision not to is- While there is a degree of confu- system will almost certainly result in or “preclearance,” the remainder of the sue a stay. sion any time electoral maps are re- fewer people voting in congressional act remains in force, McLennan said. “It should be remembered that drawn, “midstream redistricting” is elections than otherwise would have “I think we are in very uncharted the justices are human beings, and especially troublesome for voters, Tay- voted in the March 15 primary. The waters when it comes to what happens many have formed deep bonds with lor said. state will also have the expense of con- next” as a result of eliminating racial Justice Scalia and are grieving his pass- And while incumbents typically ducting separate primaries,” McLen- considerations, Bitzer said. ing,” McLennon said. are hard to beat, that dynamic is re- nan said. “My belief is that trying to sepa- Chris Cooper, department head shaped for Reps. Alma Adams, D-12th, The “disarray question” is “in- rate race from political behavior, espe- of political science and public affairs and George Holding, R-13th, who were credibly important,” Cooper said. cially from Southern black voters and at Western Carolina University, dis- drawn out of their districts. “Voters don’t expect much out the 95 to 96 percent allegiance to the agreed, saying he doesn’t think Scalia’s Adams, who lives in Greens- of elections, but they do expect that Democratic Party, is still at the heart of death had any impact on the court’s boro, would represent a district that is their votes will be counted, and that the issue,” Bitzer said. decision not to hear the North Carolina located entirely in Mecklenburg Coun- the people who they choose between One of the plaintiffs might chal- case. ty, which may nudge Charlotte-based represent the entirety of their choices,” lenge these new maps, prolonging the “Nowhere in the Constitution Democrats to try to unseat the fresh- Cooper said. “In this election, both of uncertainty, he said. does it say that there must be nine jus- man member of Congress. these suppositions may be wrong — at Or the three-judge panel could tices. The court is able to function with On the new maps, the geographi- least for the congressional contest.” allow the maps to be used and then eight members, and there’s no reason cal boundaries of the 13th District were Congressional candidates and in- review them after the November elec- to believe that the number of justices moved about 100 miles west. Holding, cumbents will be challenged to adjust tion. affected their decision,” Cooper said. whose Raleigh home is in the heav- to the new electoral landscape, new “Indeed, North Carolina has seen Roberts likely referred the state’s ily Democratic 4th District, has an- challengers will enter the contests, and this happen in the past with changes request to the full court, “and there nounced he would file in the nearby voters will be confused about which to maps from one cycle to another, but either wasn’t enough support to stay, 2nd District and challenge three-term district they are in and who the candi- this is very chaotic for everyone,” Bitz- whether it was 4-4, or 3-5, or what, we GOP incumbent Rep. Renee Ellmers. dates are, Bitzer said. er said. really won’t know,” Bitzer said. “We “I would say that Renee Ellm- For those who administer the The Supreme Court “has been really have no idea what the Supreme ers and George Holding are probably elections, “it’s a continuing nightmare fairly clear that it is perfectly accept- Court is thinking in declining to issue worse off” as they square off in the of epic proportions,” Bitzer said. able to consider partisanship when the stay.” new 2nd district, Taylor said. The Republicans’ decision to re- drawing district lines,” Cooper said, Andy Taylor, a political science The decision allowing the lower move racial considerations from draw- but not race. CJ

2016 Contingent Congressional Plan Adopted by Joint Select Committee on Congressional Redistricting Source: N.C. General Assembly PAGE 14 MARCH 2016 | CAROLINA JOURNAL Education Atkinson’s Teacher Pay Hike Proposal Gets Chilly Reception

By Barry Smith that there is a need to treat teachers Associate Editor more like professionals. RALEIGH Berg offered some suggestions, efore a state House committee such as providing scholarships or re- in late January, state Superinten- paying student loans to teachers who dent of Public Instruction June get their degrees in North Carolina and BAtkinson recommended that all public agree to work here afterward. school teachers in North Carolina get “We need to elevate our respect a 10 percent boost in their pay as part for teachers,” Berg said. of a four-part plan to increase teacher Rep. Paul “Skip” Stam, R-Wake, compensation. also suggested that the state no longer Several members of the House consider individual teachers’ salaries Select Committee on Education Strat- public records. egy and Practices, who met Jan. 27-28, “I think that’s the main reason were skeptical of the value of across- that so many of them say they don’t the-board raises along with their want differentiated performance pay: cost. In a separate presentation, Terry because of envy and jealousy,” Stam Stoops, director of research and educa- said. “They don’t want their friend tion studies at the John Locke Founda- down the hall to know that they’re From left, Brenda Berg of BEST NC, Terry Stoops of the John Locke Foundation, and tion, said universal pay raises send the state Superintendent June Atkinson address Jan. 27 meeting of a House education making $2,000 more than they are.” wrong signals to the best and worst oversight committee. (CJ photo by Barry Smith) Even though Moore rejected classroom teachers. Atkinson’s proposal for a 10 percent they’re assuming that the across-the- them to move on to another field.” In remarks to the same panel on raise, calling it “political,” Stoops said board pay increase is what they will Jan. 28, House Speaker Tim Moore, Berg, from BEST NC, a nonprofit he expected this year’s short session keep receiving, regardless of how they R-Cleveland, rejected the idea of a 10 coalition of business leaders promot- of the General Assembly to enact a are performing,” Stoops said. “This percent raise, suggesting Atkinson, ing improvements in public schools, smaller across-the-board pay increase. creates a situation where we are es- who is running for re-election, floated said a national crisis is brewing be- “The amount of that pay raise will de- sentially allowing those poor teachers the large raise to enhance her standing cause millennials don’t want to go into pend on the revenue outlook and the to stay in the profession, and not really among teachers and win their support the teaching profession. pressures from other budgetary areas,” rewarding our most effective teach- for her campaign. “Compensation is a piece of the Stoops said. “I would say 5 percent ers.” Atkinson likened the tiers of puzzle,” Berg said. But she suggested would be the ceiling.” CJ Stoops said having performance- compensation to a four-layered wed- based pay or differentiated pay would ding cake. The base level of the cake allow the best teachers to receive the must be competitive enough to be at- compensation they deserve. tractive, Atkinson said. Atkinson said the second layer Carolina Journal Online “I would want North Carolina to of compensation requires identifying be extremely bold and to look toward a a certain percentage of teachers to be 10 percent increase for all of our teach- now optimized for designated as teacher leaders, who ers,” Atkinson said. would get additional pay for their The cost for providing all teach- your mobile device roles. These teachers could be instruc- ers 10 percent raises would be around tional coaches, peer evaluators, or $540 million. grade-level coordinators, among other Rep. Jonathan Jordan, R-Ashe, things, she said. asked Atkinson if spending the addi- A third layer would boost com- tional money would guarantee an end to the state’s teacher compensation pensation to attract teachers to low- problems. performing schools. The fourth layer Atkinson said that she wanted to would provide bonuses for teachers provide the committee with cost fig- at schools that exceed anticipated ures. growth, Atkinson said. “I recognize that it is a big item,” Stallings said that differential pay Atkinson said. “As state superinten- is complex and cautioned against hav- dent you have in statute that it is my ing a one-size-fits all approach to such responsibility to let the needs of our salary boosts. He said that there is schools be known. If I were in your “very little evidence” of an impact on shoes, I would be worrying about that student performance when the focus is money, too.” on pay-for-performance only. Also presenting to the committee “What works in Charlotte is were Stoops; Trip Stallings, director of probably not going to work in Bertie policy research at the Friday Institute County,” Stallings said. for Educational Innovation at N.C. Stoops said that the purpose State University; and Brenda Berg, for having differential pay is teacher president and CEO at Best NC. retention. He also said that teachers Stoops said across-the-board rais- leave their job for various reasons, not es are not sound policy because they just pay. encourage bad teachers to remain on “It’s not just compensation,” the job. Stoops said. “It’s personal circumstanc- “When you raise salaries across es. They don’t like their principal. They the board, both your best teachers and think the school district is too big. The your worst teachers receive that salary. working conditions are terrible. They You are incentivizing the bad teach- don’t have the books that they need, or carolinajournal.com ers to stay in the profession because the labor market is somehow enticing MARCH 2016 | CAROLINA JOURNAL PAGE 15 Education UNC Foundations Operate Outside Government Transparency Rules Over the 10-year lease in the new East Carolina University, Fayetteville versity of Arizona School of Journal- building, the university will pay about State University, North Carolina A&T ism. He co-authored the book, The Art Critics decry weak $15 million more than it would have in State University, North Carolina Cen- of Access: Strategies for Acquiring Public the space it previously leased, he said. tral University, North Carolina School Records with Charles Davis, dean of the public-records laws “I have a lot of questions about of Science and Math, North Caro- College of Journalism and Mass Com- real estate deals on these things,” said lina State University, UNC-Asheville, munication at the University of Geor- regarding university Kotis, owner of a commercial real es- UNC-Charlotte, UNC-Chapel Hill, gia. tate development corporation doing and UNC-Pembroke. “There’s like a handful of states business in North Carolina and South “I have a database of every state that are now subject to public-record foundations Carolina. Earlier, he raised issues about to see what’s been done not only on laws because of the shenanigans” at By Dan Way East Caro- the issue university foundations, Cuillier add- Associate Editor lina Uni- of univer- ed. “I think there are a ton of flags RALEIGH versity’s sities and that need to be raised when it comes he UNC system operates several Medical founda- to university foundations. I think it’s foundations that raise money for Foundation tions, but one of the most underreported scams their associated universities, and lease of a privati- in America. It’s [a] total slush fund. … Tnational researchers who have looked significant zation in What a great way to hide money for a at these types of organizations have amount of general, university.” called them “slush funds” and “shad- space back and pub- He said foundations have al- ow corporations” that too often oper- to the uni- lic-records lowed universities to hide “wrongdo- ate in secrecy, even though they spend versity, and access,” ing and questionable expenditures” taxpayers’ money. also about Capeloto because foundations usually aren’t In North Carolina, these foun- North said. “I subject to public-records laws and may dations buy property and then lease Carolina’s think that not comply with them in states where space back to their universities, high- Centennial North Car- they are. lighting concerns from some of those Campus. olina actu- “Why do universities have foun- experts. UNC Board of Governors The ally is ripe dations? Why don’t cities, and coun- member Marty Kotis said he has raised normal ap- for a chal- ties, and mosquito control districts?” many questions about those financial proach na- lenge … Cuillier asked. Imagine the public reac- relationships. tionally is because re- tion, he said, if the city of Raleigh cre- The UNC-Chapel Hill Founda- for foundations to lease space from the ally it’s not decided yet whether these ated a foundation to raise money for a tion bought the old University Square university, not to it, said Alexa Capelo- entities should be subject to public-re- mayoral mansion and provided other property on Franklin Street, then to, a City University of New York jour- cords laws.” compensation for the mayor in secret. ground-leased it to a third-party de- nalism professor who has researched The state attorney general’s office A request for comment from the veloper who turned it into a mixed-use how university foundations are shield- in 2000 issued an opinion saying foun- UNC system for this story was not an- development, Kotis said. ed from normal public disclosure laws. dation workers are not state employ- swered. “They are in turn leasing space to Because the UNC system does ees, according to Capeloto, which she “We’ve seen cases where founda- the university, and some of the centers not compile a comprehensive list of all said isn’t a huge surprise because only tions are buying gifts for university ad- and institutes, and some of the depart- campus foundations and their activi- one state even considers foundations a ministrators or paying for their hous- ments, which is just a little incestu- ties, Kotis had employees at his com- part of government: Nevada. ing” or other perks for people at the ous,” Kotis said. “You wonder in that pany put together a financial sketch of “There does seem to be kind of universities, such as exorbitant speak- scenario why does the foundation do the primary foundations on campuses. an inclination to consider foundations er payments to Sarah Palin and Hillary that, and what happens with the mon- As of June 2012, 17 foundations off limits in [North Carolina],” Capelo- Clinton, Capeloto said. “It does seem ey that flows into the foundation, or on 11 campuses possessed nearly $1.66 to said. “It’s a weak public-records almost like a shadow corporation.” “One foundation was paying out of it, and what’s the oversight on billion in assets. Those foundations law, and by implication it’s harder to for prostitutes for the football team,” that?” are at Appalachian State University, get things [here] than in some other states.” Cuillier said and another “was taking Frank LoMonte, executive direc- bribes from rich people who wanted to tor of the national Student Press Law get their slacker kids into this competi- tive orthodontics program.” Center, said in instances where scan- Despite his concerns about foun- Keep Up With the dals have erupted over questionable, dation transparency on UNC campus- unethical, or illegal university founda- es, and the examples of hijinks else- tion practices, they generally were ex- where, Kotis said he does not suspect posed as the result of a court ruling or General Assembly any wrongdoing here. attorney general’s opinion that created Even so, he said, “the founda- an avenue for access. tions are clearly a tool that’s being used Be sure to visit CarolinaJournal.com “We don’t have any record of ei- to avoid having to go through the red often for the latest on what’s going on dur- ther a lawsuit or a piece of legislation tape of the General Administration, the directly addressing itself to the status Board of Governors, the state oversight ing the North Carolina General Assembly. of these quasi-public foundations and in a lot of cases, and bypass us.” auxiliary organizations in North Caro- In the best possible light they are CJ writers are posting several news sto- lina,” said LoMonte, who has led nu- being used to accomplish goals that merous projects to obtain records from would have been delayed but still ap- ries daily. And for real-time coverage of university foundations. proved by governing bodies, Kotis Experts say increased transpar- said. breaking events, be sure to follow us on ency usually requires the revelation There are a lot of different of a previously unknown problem via types of money in university opera- Twitter: other means. tions, Kotis said, from tuition and “It sometimes takes a high-pro- state appropriations, to overhead re- file gaffe to get the legislature to move ceipts and enterprise fees for items CAROLINA JOURNAL: http://www.twitter.com/CarolinaJournal and pass a law saying foundations are such as housing or printing ser- JOHN LOCKE FOUNDATION: http://www.twitter.com/JohnLockeNC subject to the public-records laws,” vices, and foundations intermingle said David Cuillier, director of the Uni- money from different sources. CJ PAGE 16 MARCH 2016 | CAROLINA JOURNAL Education Opinion Full-Time Nontenured Faculty Represent Innovation, Not Abberation niversities’ increased use of changing world help improve she became her department’s associ- faculty members who are not and fluctuating classroom instruc- ate chair, an administrative manage- on a path to gain tenure has economy,” said Issues tion and advance ment position in which she oversees Udrawn condemnation from many en- David McCord, the university’s department staff and operations. trenched in the seniority system, but tenured psychol- in mission. “I experienced less-than-desir- critics may be ignoring the more com- ogy professor at Higher Education “Everybody’s able conditions early on in my career, plex realities and distinctive needs of Western Carolina going to have but N.C. State, to its credit, has made 21st-century higher education. University, in a re- adjuncts,” McCord tremendous strides [in its] promotion For instance, the American As- cent interview with said. “But you of a culture where nontenure-track sociation of University Professors — the Pope Center. take a big step up faculty are respected and enjoy good which is strongly pro-tenure — says “[Some] substan- in quality if you working conditions,” Sremaniak told the Pope Center. the rise of nontenured faculty threat- tial proportion have one person The benefits of this system don’t ens academic of instructional faculty should have teaching four sections of Psychology accrue to nontenured faculty alone, freedom, exploits more flexible contracts than those as- 150 — a person you know doing it according to Jennifer Carbrey, a full- professors, and sociated with tenure.” year after year — rather than a warm time nontenure-track faculty member undermines stu- Recently, McCord and other body off the street teaching individual in Duke University’s School of Medi- dent learning. members of WCU’s faculty senate sections.” cine. “The advantage of my position But while the created a special task force on nonten- At North Carolina State Uni- to my [tenure-track colleagues],” she AAUP and others ured faculty. This year, it will examine versity, on the other hand, officials told the Pope Center, “is that because may be accurate raising salaries and providing clearer appear to have different priorities I teach, their teaching load is light- in some instances paths to promotion and long-term ca- — ones that reflect the university’s ened, which gives them more time for (harrowing reers. The task force also will focus on research-intensive mission. In a Pope research.” anecdotes from big-theme questions, such as what the Center interview, Katharine Stewart, JESSE In other words, if done right, overworked and proper ratio of tenured/tenure-track vice provost for faculty affairs, said SAFFRON incorporating full-time nontenured underpaid adjunct and nontenure-track should be, and that approximately two-thirds of N.C. professors as teaching, research, or professors seem to how that ratio might vary by depart- State’s 2,700 faculty members are clinical specialists can free up valuable abound), they often treat the nonten- ment. tenured or tenure-track, and that the campus resources without diminish- ure track as wholly negative, and thus Of course, the “proper ratio” school plans to increase that percent- ing academic quality. ignore encouraging developments. In will vary not just by department, but age. But she said that nontenure-track Fortunately, leaders at Western many ways the rise of full-time non- also by university. WCU, for instance, faculty are highly valued, and that Carolina, N.C. State, and elsewhere tenured faculty significantly benefits is a regional university with a strong the university is striving to provide have begun to acknowledge the ben- schools, professors, and students. undergraduate focus and teaching “clearly defined pathways for [non- efits of full-time nontenured faculty Nevertheless, institutions are emphasis. WCU has 809 full- and tenure-track faculty] success.” members. For universities to create slowly recognizing that — for better part-time faculty members. Roughly That point was corroborated by flexible hiring systems that account or worse — a new faculty paradigm 500 are full-time (70 percent are ten- Laura Sremaniak, a full-time non- for academic excellence, bold officials has arrived. The sooner they adapt, ured or tenure track; 30 percent are tenured teaching professor in NCSU’s will have to challenge the academy’s the better prepared they’ll be for the full-time nontenure-track), and the chemistry department. Since joining longstanding orthodoxy and adminis- future. rest are part-time adjunct professors. the department in 1996, she’s had the trative practices. CJ “A university that really strives Going forward, faculty leaders may opportunity to take on a number of to give tenure to all instructional find that decreasing their reliance on curriculum-development projects, Jesse Saffron is a senior writer for faculty is tying its own hands and adjuncts, and instead appointing more help write two chemistry textbooks, the John W. Pope Center for Higher Edu- feet in terms of dealing with an ever- full-time nontenured faculty, could and work on research. And in 2009, cation Policy. MARCH 2016 | CAROLINA JOURNAL PAGE 17 Education

COMMENTARY COMMENTARY N.C. a Destination ‘Sustainability’ and For Problem Teachers The Marketplace of Ideas

orth Carolina’s public year. But then the inexplicable hap- n especially pernicious of sustainability as an objectively schools rely on a steady pened. Nothing. brand of environmentalism virtuous ideology that is beyond stream of out-of-state Superintendent of Public In- — “sustainability” — is on scrutiny — and one that should Nteachers to fill hard-to-staff posi- struction June Atkinson appeared theA verge of becoming an unstated, be foisted on the entire academic tions and meet the demands of stu- to shelve Raising The Bar just weeks but very real, part of N.C. State community. dent enrollment growth. According after its release. At the April 2010 University’s mission. University At the town hall event, there to statistics from the U.S. Depart- meeting of the State Board of Edu- leaders are developing an aggres- were calls to: create a first-year ment of Education, more than cation, Atkinson reported plans to sive public relations campaign general education course on sus- 7,200 teachers — or approximately appoint an internal working group and curriculum change that could tainability; “train” faculty, staff, half of those receiving their initial to address the task force recom- create a system indoctrinating and students to be more aware of North Carolina teacher credential mendations. There was no pub- students toward supporting social social and environmental justice between 2010 and 2013 — were lished record of any subsequent justice, environmental justice, and issues; and require incoming fresh- trained in another state. work by the internal committee progressivism — all of which are men to read sustainability books. Naturally, public schools or further discussion of the report tenets of sustainability. There also was a suggestion to add want to ensure that all incom- with members of the state board or “We want sustainability to be a sustainability statement to all ing educators have the legislators. By the time a part of our culture in course syllabi to indicate knowledge, skills, and the newly elected Repub- character necessary to lican majority convened everything we do,” said N.C. State’s commitment become successful class- the 2011 session of the Jack Colby Jan. 20 at N.C. to the cause. Other pro- room teachers. As a state, General Assembly, state State’s Sustainability posals were more radical: we are fortunate that a public school leaders Town Hall. Colby is the One person wants to “re- vast majority of those had moved on to other university’s chief sustain- brand N.C. State as a less pursuing a teaching matters. ability officer and heads conservative and more career in North Carolina Education officials its Sustainability Council, activist-minded school,” meet or exceed our high later said that the shock- which provost Warwick and another wants advo- expectations. But some ing murder of State Board Arden has charged with cates to visit local K-12 deadbeats continue to TERRY of Education member developing a new five- JESSE schools and “plant the slip through the cracks. STOOPS Kathy Taft and the ur- year “strategic plan” SAFFRON seed” of sustainability. An investigative gency of responding to on sustainability and Colby, in an in- report conducted by the Democratic proposals to “infusing sustainability terview with the Pope USA Today Network awarded slash the state’s public school bud- into academic curricula across the Center, insisted that, while radi- North Carolina an F, saying its get were to blame for their inac- campus.” calism may be prevalent at other “patchwork system of laws and tion. But neither of these explana- The roughly 60 professors, campuses, N.C. State is focused regulations, combined with in- tions sufficiently accounts for their administrators, and students who on practical concerns related to ef- consistent execution and flawed collective negligence. attended the event were asked to ficiency and energy savings. “This information sharing between states In response to the deficien- brainstorm ideas and provide the is not about tree-huggers and green and school districts, fails to keep cies exposed by the USA Today council and its working groups fanatics,” he said, citing a recent teachers with histories of serious investigation, Lt. Gov. Dan Forest with initial ideas as drafting of the 30 percent reduction in energy misconduct out of classrooms.” and members of the General As- plan begins. (It will be finalized in consumption. How did North Carolina sembly have vowed to overhaul 2017.) For some campus affiliates, Of course, university officials become what USA Today describes our defective system for screening alumni, and taxpayers, the propos- should be applauded when they as “among the worst states in the teachers by passing legislation that als may seem alarming. finds ways to save money. Unfor- country for screening teachers?” will give state education officials Although “sustainability” tunately, while Colby may be of In 2008, the staff attorney for the authority to implement some of may sound innocuous, perhaps a more practical bent, others who the North Carolina State Board of the recommendations outlined in conjuring images of community are attracted to the sustainability Education spearheaded an effort the task force report. Their role is to strengthen the teacher review straightforward. Lawmakers must gardens, at its core is a totalitarian movement often display a kind of process. A 24-member task force approve confidentiality protec- philosophy that seeks to curtail radical politics that is incompat- convened and published its final tions, authorize fingerprint back- personal and economic freedom. ible with the marketplace of ideas. report, Raising The Bar For North ground checks, and allow the state That’s one of the takeaways from It seems unlikely that officials will Carolina Teachers, in February 2010. board to share background check the National Association of Schol- be able to separate that hard-left The Raising The Bar report information with school boards ars’ comprehensive 2015 report fringe from their sustainability recommended taking steps to and vice versa. Sustainability: Higher Education’s mission. If anything, that fringe is implement a system of fingerprint The State Board of Education, New Fundamentalism. Across the being encouraged to participate ac- background checks, coordinate the Department of Public Instruction, country, campus activists are shut- tively in the policymaking process. sharing of relevant information, and local school boards will be ting down debate on important Vigilance on the part of the and improve reporting processes responsible for implementing rec- issues such as climate change, public and state leaders will be for state agencies and school ommended policies and practices watering down liberal arts cur- necessary. Left unchecked, this boards. These common-sense that have been hibernating for six ricula with politicized courses, seemingly harmless movement strategies would have required years. Ultimately, it is their job to and forcing behavioral changes on (which has a strong presence at state education officials to revise ensure that North Carolina public the part of students. Universities other North Carolina universities, existing policies and implement schools no longer put our future in spend roughly $3.4 billion per year too) could turn hearts and minds new statewide screening practices. the hands of those with a check- promoting sustainability projects. away from the principles of a free It also would have required the ered past. CJ But the biggest issue with society. CJ then-Democratic majority in the sustainability at N.C. State and oth- N.C. General Assembly to approve Terry Stoops is director of er universities may not be exces- Jesse Saffron is a senior writer legislation during the 2010 session, research and education studies at the sive spending. Rather, the problem for the John W. Pope Center for Higher which convened in May of that John Locke Foundation. seems to be the blanket acceptance Education Policy. PAGE 18 MARCH 2016 | CAROLINA JOURNAL Books & the Arts Regionalism Has Been a Potent Influence in N.C. since 1700s riving along Highway 64 preference derives from the culinary tions of individuals influenced by in- Many back in eastern North from Murphy to Manteo, you influence brought by the German creasing and widespread technology. Carolina agreed. Royal Governor can experience the state’s immigrants who arrived in the region At any rate, regionalism was far William Tryon was so pleased with Dgeographical diversity and in so do- nearly 300 years ago. more robust in early North Carolina Mickeljohn’s sermon near Hillsbor- ing hear distinctive, regional North Regionalism is not as pro- than today. ough that it was published and copies Carolina accents nounced as it was in past decades. In the so-called Regulator Rebel- were sent to England. in the mountains, In great part, technol- lion, Piedmont farmers The efforts of Anglican mission- the Piedmont, ogy makes it possible for criticized the royal govern- ary Charles Woodmason also reveal a and eastern North many, in North Carolina ment in New Bern and religious regionalism during the mid- Carolina. or elsewhere, to listen to later clashed with militia, 1700s. He claimed to have traveled Along the the same songs or watch mainly from eastern North approximately 6,000 miles to stop the way, you also can the same television shows. Carolina, at the Battle of spread of New Light and less formal eat barbecue that in Most hear the standard, flat Alamance. In short, “back- practices primarily among Baptists, Methodists, and Quakers. one region is taken delivery of broadcast news country” Piedmont farmers He believed religious splinter- from the shoulder anchors, no matter where were at odds with eastern ing led to chaos and perpetual in- and another from TROY they live or what channel North Carolina gentry and fighting. Even so, he noted that these the whole hog, the they hear or watch. Many drive the royal government officials. KICKLER various denominations increasingly meat flavored with same cars or wear the same brands The religious components of the different sauces noted three common foes: the landed of clothing because they have been Regulator Rebellion reveal a schism gentry, the Anglican Church, and the that reveal the state’s regional diver- influenced by the same commercials among denominations. Regulator royal government — all holding their sity and history. whether the advertisements appeared leader Herman Husband was a Quak- greatest influence in eastern North North Carolina is not unusual on the radio, on television, or online. er, and his political ally Shubal Stearns Carolina. in this regard. Traveling across the As more people experience was a Baptist. In a pamphlet citing Although regionalism is not as South, visitors will encounter barbe- information and entertainment online, Nehemiah 5, Husband questioned pronounced as it has been — and as cue subcultures and preferences for however, the personalization embed- what he deemed a government that the state’s population grows, new- different sauces. As a child growing ded in online applications that foster a overstepped the boundaries placed on comers may affect local cultures — in up in the Piedmont, I thought Lexing- sense of individualism may chip away authority and encroached on liberty. some fashion North Carolina region- ton-style was the definition of barbe- at American homogeneity. Instead Citing passages from Job and alism will remain and influence the cue. All others were foreign to me. of being of a nation of regions with Jeremiah, the Anglican George Mick- state’s future. CJ Ever wondered why, in South individuals, where people’s lives were eljohn, however, condemned the Hill- Carolina, from Columbia to Charles- affected in great part by the land and sborough Riot of 1768 and reminded Troy Kickler is director of the North ton, barbecue is served with a mus- weather, America may be becoming a his congregation that “every soul [is] Carolina History Project (northcarolina- tard-based sauce? Many argue that nation of formal and informal associa- subject to the higher powers.” history.org). BOOKS BY JOHN LOCKE FOUNDATION AUTHORS

If you don’t know about Edenton, North Carolina, your knowledge of U.S. history is incomplete and your knowl- edge of North Carolina insufficient. Organized women’s political activity in America was born in Edenton. The concept of judicial review—that courts can declare leg- islative acts unconstitutional—was championed here. Ideas for a national navy and defense were imple- mented here. Many passages of the N.C. Constitu- tion (1776) and the U.S. Constitution originated here. Leading proponents of the U.S. Constitution (a.k.a. Federalists) lived in this small place, and so did nationally known jurists and politicians. Dr. Troy Kickler, founding director of the North Carolina History Project, brings Edenton, its people, and its actions into proper and full focus in his book, The King’s Trouble Makers. Go to northcarolinahistory.org for more information. PAGE 19 MARCH 2016 | CAROLINA JOURNAL Interview Gizzi: Even With Divisive Primaries, GOP Could Unite Against Democrats

By CJ Staff RALEIGH “Let me put it very bluntly to you. he 2016 presidential election campaign already has gener- There is always talk that a highly ated plenty of excitement. Vet- Teran presidential campaign reporter competitive race, a divisive con- John Gizzi expects more. Gizzi, chief political correspondent for Newsmax, test, will leave the party weakened offered expert analysis during are- in the end. I would say there have cent John Locke Foundation election panel discussion in Raleigh. In connec- been cases of that. And there are tion with that event, Gizzi shared his electoral expertise with Mitch Kokai some people who walk away mad for Carolina Journal Radio. (Head to http://www.carolinajournal.com/ra- and don’t come back in the fall.” dio/ to find recent CJ Radio episodes.) John Gizzi Kokai: How has this campaign Political correspondent, Newsmax been different from those you’ve seen in the past?

Gizzi: It’s been different in the sense that there is a crowded Repub- lican field — one larger than any since 1920. I was not around to cover the 1920 election, but I certainly have read party that believes in competition. We moderate candidate, had, in their view, expect at this point based on what we quite a bit about it. should be glad to see so many competi- stolen the nomination at the conven- know? In addition, the Democratic side tors.” What’s your take on this? tion and taken it away from the man was once considered a coronation they called Mr. Republican. However, Gizzi: Bruce Herschensohn, who Gizzi: for Hillary Clinton. About the clos- Ask a fellow named Bar- by the time the fall came around, Mr. teaches the honors course in foreign est thing you could compare it to was rack Obama. He and Hillary Clinton Republican and everyone else was policy at California’s Pepperdine Uni- 1920, when Republicans were almost almost went up to the convention [in firmly behind Ike as the candidate. versity, once said that foreign policy certain to elect former President Theo- the 2008 Democratic nomination pro- In 2000, George W. Bush had a in presidential campaigns is discussed dore Roosevelt for a third, unprece- cess]. And he will tell you it made a very hard-fought contest with John for, perhaps, 20 minutes. This year it’s dented term. And what happened was better candidate out of him. Certainly, McCain. I covered some of their pri- going to be discussed for a lot longer he died at the age of 59, throwing the Bill Clinton didn’t wrap up the nomi- mary bouts and was in South Carolina than that, I would say. party into turmoil. nation until the California primary in when Bush finally won a primary and Because when one goes from the Hillary Clinton was the closest June of 1992. went on the road to victory. Everyone frozen streets in the Ukraine, to the to T.R. to be a nonincumbent certain of The idea of having someone be- got behind him after eight years of Middle East, and the deserts of Jordan, nomination so early. Now she’s in the come the nominee early is a two-edged Democrats in the White House. and Syria, and Iraq — already a petro fight for her life. sword. On the one hand, it gets the So I would say that after eight state — to the Far East, and Japan, and party united behind someone. On the years of Obama, Republicans will be Korea, which feel increasingly threat- other hand, that person is left out there united behind whomever their presi- Kokai: So in some ways, [this is] ened by China, foreign policy is, in- and is subject to attack from the other dential and vice presidential nominees the type of campaign we haven’t seen deed, moving up at the top of one’s side repeatedly, until the campaign are. for nearly a century? agenda. And terror, embodied by ISIS, heats up in the fall. And then he goes which already has made a few strikes in a little bit bruised. Kokai: On the Democratic side, Gizzi: I think that’s a pretty fair within this border, is going to certainly analogy — 96 years. My guess is the nomination pro- are you surprised that nomination cess works. The debates, which are didn’t turn into a coronation of sorts be high on everyone’s list. fewer in 2016 than 2012, have been for Hillary Clinton? Obviously, the effort to repeal Kokai: On the Republican side, is Obamacare, six years after it was en- it good news to see so many conserva- most productive in that they bring out Gizzi: acted, is alive and well. The polls have tive candidates? the fighting spirit of many candidates. Not really, and I’ll tell you So I would say, to paraphrase Winston why. In 2008, Hillary Clinton should never changed on this — the only ma- jor piece of social legislation that was Gizzi: It’s good news in the sense Churchill, this is the worst system for have been the Democratic nominee. nomination, with the exception of all That was her time. Had she been nomi- passed on strictly partly lines. that it underscores the fact the Repub- We’re also going to see a rich de- lican Party is a conservative party. others tried. nated, given the collapse of Wall Street in September, she almost surely would bate on taxes and the nature of capi- However, there certainly is also room talism in the United States. And, of for diversity. Jeb Bush and Chris Chris- Kokai: Is a hard-fought cam- have been elected to succeed George course, the “I word” — immigration — tie are considered not as conservative paign going to be good for the Repub- W. Bush. is going to come up. as, say, Ted Cruz. The same has been lican nominee? By the time she was geared up for said in some circles about Sen. Marco another campaign, she was eight years Kokai: Do you expect a hard- Rubio. Gizzi: Let me put it very bluntly older and, in many people’s eyes, yes- That said, there is an abundance to you. There is always talk that a high- terday’s news. I saw so many support- fought campaign in the fall? of riches. The Republican Party has a ly competitive race, a divisive contest, ers at rallies for her in Iowa who were Gizzi: broad field of fresh faces. This was not will leave the party weakened in the old Clinton hands. “I caucused for Bill Absolutely. I have no the case in 2012. Every one of the can- end. I would say there have been cases in 1992,” they said. doubt about it, and it usually is. The didates was very familiar to the vot- of that. And there are some people who On the other hand, the Bernie party that has had control over the ers and to the Republican electorate walk away mad and don’t come back Sanders rally could have been a fra- White House does not want to relin- in particular. In the end, people were in the fall. ternity out of “Animal House.” There quish it. The party that’s out is hun- just voting for someone other than Mitt On the other hand, when the were lots of young people cheering on gry to be back in power. I’ve seen it so Romney. That is not the case now. presidency is open, and there is no in- their 74-year-old hero who told it like many times in my life. And only once cumbent, that almost never happens. it was. has the party that was in the White Kokai: Some Republicans said And let me give you an example. In House retained it when the incum- they wished they had been able to 1952, supporters of Sen. Robert Taft, Kokai: It’s too early to say at this bent president stepped down. That, unify more quickly around a single the conservative, were very bitter that time how the fall campaign might play of course, was Ronald Reagan in 1988, candidate. Others said, “Hey, we’re the backers of Dwight D. Eisenhower, the out. But what are some themes you followed by George H.W. Bush. CJ PAGE 20 MARCH 2016 | CAROLINA JOURNAL Opinion

COMMENTARY Policy Changes That Can Boost Direct Care irect primary care is the Insurance Plans, 20 million poli- epitome of value-based cyholders now use HSAs. Having medicine. In exchange for an HSA permits you to contribute Da monthly cash payment, patients and withdraw funds on a tax-free have 24/7 access to their medical basis, so long as the money is used provider and a defined package of for “qualified medical expenses” as medical services. determined by the IRS. The John Locke Foundation Because monthly payments has released a report on how direct are not considered to be a qualified primary care restores the traditional health expense under the IRS, HSA doctor-patient relationship. The holders cannot make monthly DPC DPC movement now may be small, payments with HSA funds. To fix considering that only 2 percent of this, in 2015 legislation known as the 68,000 members of the Ameri- the Primary Care Enhancement Act can Academy of Family was introduced to allow EDITORIAL Physicians participate in direct care payments as this type of health care qualified medical ex- delivery. penses. Yet it’s a growing Another component Visit the New force that is gaining popu- of the bill calls for Medi- larity here in North Caro- care to pay providers a lina partly because these rate for program benefi- CarolinaJournal.com providers don’t have to ciaries seeking DPC. Fed- t’s been more than six years since and contributors. It’s also the home of practice under the thumb eral rules in place today we have updated CarolinaJour- our weekly Carolina Beat syndicated of state government, as KATHERINE are extremely confusing nal.com — the Internet gateway columns and the CJ parodies featured they must in other states. RESTREPO and serve as a hindrance toI Carolina Journal’s extensive news on the back page of every print edi- No price controls, no for Medicare patients to stories, opinion columns, and analysis tion. defined menu of services, access a direct care physi- — and once you’ve had a chance to Individual CJ stories are on no limit on patient panels. cian. visit and spend some time at our new pages with a clean, uncluttered look. How refreshing. Physicians can take Medicare website, we hope you’ll agree that Clicking on the author’s name will To ensure that the restored patients but can bill only for ser- wait was worth it. bring you to a separate page compil- physician-patient relationship vices not covered by the program, Our goal was to provide you ing that author’s stories, video clips, remains untouched by government leaving little room for health care with a website that is easier to read, and audio links. Just below the au- red tape, it would be wise for poli- delivery, since Medicare part B cov- easier to share, and easier to search, thor’s name is a stack of icons, letting cymakers to pass legislation stating ers most preventative services. and our design team, led by the John you (with a mouse click) share the that direct care providers do not The Primary Care Enhance- Locke Foundation’s director of digital story on Facebook, Twitter, or email; act as risk-bearing entities. In other ment Act sets up a Medicare content, Bill Gilbert, hit the target. format it for a printer; or — for the words, patients’ periodic member- alternative payment model. It has On the homepage you’ll find first time in CJ’s history — post a com- ship fees should not be classified as the good intention of allowing links to more than two dozen CJ ment at the end of the story. Please insurance premiums. Medicare patients to get their care articles, along with links to video join the conversation! Legislation clearly defining at DPC practices, but such a move could undermine the main appeal and audio clips with commentary “Audio” offers excerpts and DPC outside the insurance market of DPC for many doctors and pa- from CJ editors, John Locke Founda- full editions of our statewide weekly will save this health care delivery tients — removing government and tion researchers, and outside experts. syndicated news magazine Carolina method from regulations under the middleman intervention, letting You’ll have access to our archive span- Journal Radio. “Video” is a storehouse N.C. Department of Insurance. To providers actually practice the art of ning more than two decades of news, of recorded presentations by or for the date, 13 states have enacted legisla- medicine and spend more time with research, and analysis. And you can John Locke Foundation, along with tion specifically stating that DPC their patients. find a link taking you to the archive of clips of appearances by CJ or JLF staff does not act as insurance. Passing If Medicare determined a set CJ’s print editions, beginning with the members. similar legislation could lead to a rate for physicians, it would set a January 2001 issue, the first produced A new CJ feature is “Quick stronger DPC presence in North precedent for Medicare to get in as a newspaper. Takes” — brief, timely dispatches of Carolina. the business of dictating the types At the top of the page is a group news and commentary that we post Changes to federal policy can of services doctors can offer their of category banners: News, Opinion, throughout the day. So be sure to work alongside state action to spur patients and get reimbursed. Radio, Video, and a magnifying-glass check the page several times each day industry growth. While direct care A better approach would be icon taking you to our search function. for the latest. practices do not accept third-party to have Medicare distribute vouch- There’s also a blue button you can Over the next few months, JLF insurance, patients are urged to pur- ers to patients and let them decide click if you’d like to donate, providing will launch a new Web page, and the chase a high-deductible health plan where to receive DPC services. financial support for CJ. foundation’s Locker Room blog also for emergency medical situations There is no one-size-fits-all DPC. It’s Under “News” you’ll findCJ ’s will be updated to feature more fresh beyond primary care (and required best to keep it that way and em- pathbreaking investigative journalism material and an easier way to track under Obamacare’s individual man- power patients with more choices and our unparalleled coverage of state upcoming events and search our ex- date). to find a practice most suitable for and local politics and government tensive archive of research and policy As more Americans are them. CJ policy. analysis. purchasing high-deductible health The “Opinion” section includes We’re excited about the new plans, more are also pairing Health Katherine Restrepo is health and Daily Journals from John Locke Foun- CarolinaJournal.com, and we hope Savings Accounts with them. human services policy analyst for the dation chairman John Hood, along you’ll consider it an essential part of According to America’s Health John Locke Foundation. with other JLF experts and CJ editors your daily information menu. CJ MARCH 2016 | CAROLINA JOURNAL PAGE 21 Opinion

EDITORIALS COMMENTARY Cuts Save Billions Our State McCrory, NCGA pass biggest cuts ever ov. Pat McCrory and the legis- ers about $1 billion a year. Then-Gov. Gets Boring lature have enacted the largest Bev Perdue demanded that the Re- orth Carolina is a boring ing” doesn’t suggest that North tax cut in the history of North publican legislature keep at least part state. Carolinians are bland and mono- Carolina.G Conservatives celebrate this of the sales-tax hike in place. She even I’m not attacking my chrome. About half of our electorate fact. Liberals decry it. vetoed the state budget over the issue. homeN state. I’m not denying the was born in North Carolina, with Since the GOP won control of But the General Assembly overrode amenities and attractions it has in the rest hailing from all over the the legislature in 2010, state tax rates her veto. abundance. What I have in mind is country and beyond. We have an on retail sales, personal income, Democratic lawmakers and that the average North Carolinian increasingly diverse population, by and corporate income have all gone liberal activists have been inconsistent is now quite close to the average any measure. down — in the first instance because over whether this was a tax cut. Dur- American in public opinion. The point is that, across many the newly empowered Republicans ing the 2013 and 2015 debates over tax The Gallup Organization con- dimensions at least, North Carolina ducted a series of interviews during in its complexity is now similar to rejected a Democratic attempt to reform, they accused Republicans of 2015 to measure public sentiment in and representative of America in its extend a previous sales-tax increase, “abolishing” the state’s earned income each state. Respondents answered a complexity. It’s no surprise, then, and in the other instances because the tax credit, a renewable-energy tax range of personal, social, economic, that North Carolina has become a legislature slashed income tax rates as credit, and other measures. and political questions. Gallup then key battleground state for Demo- part of a tax-reform strategy that also That’s not what happened. The created a tool, called “State of the crats and Republicans — much broadened the income tax base and GOP-run legislature simply allowed States,” to report the find- like Ohio, Missouri, and the sales tax base. these time-limited credits to sunset as ings in several categories. Florida were in the past. According to a newly released scheduled. Let’s start with poli- During the past two analysis by the legislature’s fiscal Depending on how you score it, tics. Gallup asked respon- presidential elections, staff, the combined effects of the 2013 North Carolinians will pay between dents not simply for their North Carolina was the and 2015 tax changes enacted by the $1.3 billion and $2.3 billion less in party registration but to only state to go narrowly General Assembly and signed into law state General Fund taxes next year choose which party, if any, for Barack Obama in 2008 they identified with most and then go narrowly for by McCrory will reduce state General because of the policy choices McCrory of the time. Among North Mitt Romney in 2012. The Fund taxes by a net of $828 million and state lawmakers made. Most Carolinians, 41.7 percent Senate race between Kay during the current fiscal year (2015-16) households saw their tax burdens identified as Democratic Hagan and Thom Tillis and by $1.3 billion during the fiscal decline. North Carolina has never en- and 41.5 percent identi- in 2014 turned out to be year beginning in July. acted tax reductions of this magnitude fied as Republican. That JOHN one of the closest in the Scoring the legislature’s 2011 in its history. difference of two-tenths of HOOD country (and in state his- decision to let the sales tax rate drop a Whether these tax reductions a point was the smallest tory). While Republicans full percentage point to 4.75 percent is were a good idea is, of course, a mat- in the country. (Ohio tied have won a lot of recent not so clear-cut. Technically, lawmak- ter of debate. And you can expect to North Carolina with an races in North Carolina, ers let expire a “temporary” sales-tax hear much more about them in the identical gap.) Democrats remain competitive hike by Democrats that cost consum- months and years to come. CJ Other questions put our state (and would hold more seats in the near the center of the national distri- state legislature and congressional bution. The share of North Carolin- delegation if the district maps were ians reporting that they exercised at more neutrally drawn). least 30 minutes a day, three times More to the point, the 2016 a week, was 52.7 percent, precisely governor’s race between probable N.C. Schools Rank 7th the national average. The shares of nominees Pat McCrory for the Re- North Carolin- publicans and Results account for economic background ians reporting Roy Cooper for that they felt the Democrats orth Carolina’s public schools so do the rest of us, as there are broad active and North Carolina will be highly are currently producing better social costs when young people fail to productive, had competitive. results than you might think, live up to their potential. earned recogni- grows more similar Indeed, it will Naccording to a recent analysis of inde- Still, unless policymakers take tion for service probably be the to their commu- most-watched pendent testing data. student demographics into account in its complexity Matthew Chingos is a senior nities, and were gubernatorial when evaluating the success or failure worried about to the rest of race in the coun- fellow at the Urban Institute, which of education programs, they will draw their personal try. Our state published his study last fall. Chingos faulty conclusions. finances were the United States exemplifies a analyzed state performance on read- In his paper, Chingos adjusted all within one- nationwide turn ing and math exams administered the NAEP scores for student back- tenth of a point to the Right in by the National Assessment of Edu- ground. It made a big difference in of the national average. state governance over the past sev- cational Progress. A random sample the state-by-state comparisons. Here There were some areas of eral years. Conservatives across the of students in each state takes these are the top 10 states in student perfor- divergence. North Carolinians were country are rooting for the success NAEP tests every two years. more likely to say they were “very of this endeavor. Liberals are pre- mance, in descending order: Massa- Many factors shape the results. religious” (49 percent) than the dicting, and attempting to engineer, chusetts, New Jersey, Texas, Florida, The characteristics of the families national average (40 percent), were its demise. Indiana, Maryland, North Carolina, within which students grow up — more likely to say they were under- By becoming more like the rest Pennsylvania, New Hampshire, and household income, parental educa- employed (that is, working part- of America, North Carolina may tion, marital status, etc. — clearly Ohio. time but seeking full-time jobs), have lost some of its earlier distinc- affect student performance. Our students test about three and were somewhat less likely to tiveness. But it has gained a great express confidence in the growth deal from the deal — including the In the end, socio-economic months ahead of their national peers. of the national economy. At the attention of the rest of the country. CJ explanations can take you only so far. It’s a start but not good enough. Our ultimate goal should be to same time, North Carolinians were Students who fail to learn what they slightly more likely to report that John Locke Foundation chairman deliver the greatest educational value need to learn to succeed in life are at their employers were hiring more John Hood is the author of Catalyst: great risk. Blaming their fate on pov- for the dollar in the world. The social workers. Jim Martin and the Rise of North erty or a lack of role models doesn’t and economic benefits would be enor- Calling these findings “bor- Carolina Republicans. change that fate. They still lose — and mous. CJ PAGE 22 MARCH 2016 | CAROLINA JOURNAL Opinion MEDIA MANGLE ‘Transactional’ Journalism ne of the first things I learned from journalism professors and city editors was never to bargain with a news source Oabout how a story would be written. The report- er’s job was to listen, transcribe, write, and then let the chips fall where they may. Well, at least that’s how it used to be. To be fair, even in the good old days of journalism, this was a standard often honored in the breach. Beat reporters often got chummy with their sources, so much so that they felt no compunc- tion against, in effect, taking dictation and putting it in the pages of their newspaper. The carrot to the suscep- JON tible reporter was access, ex- HAM clusive info, and a chance to be “on the inside.” Once that bridge is crossed, though, one is no longer a reporter with independent North Carolina’s Wild Ride judgment. love the North Carolina State Fair. Around June in 2011, started to close the growth gap with the Most young reporters back in the day 1 I start the countdown to the fair’s opening. Ev- nation, and for the last two years the state’s growth would look down their noses at the old hands erything about the fair — the farm animals, the path has been stronger than the country’s. who had lost the bloodhound instinct, content exhibits,I the food, the happy people, and the rides The wilder ride of the economic rollercoaster to be more of a lap dog than a watchdog to their — appeals to me. I especially like to watch — but in North Carolina is not new. I’ve observed it for “friends” in city hall or in the legislature. Nowa- not ride — the rollercoasters. every business cycle since 1970. days, however, it’s the younger reporters who Which brings me to the point of today’s col- The big question is why. Why is North Caro- see this approach to journalism as alluring, not umn. Our economy is very much like a rollercoaster. lina’s business cycle steeper and deeper? Stated anathema. There are periods of time when the economy is another way, we do we have worse recessions than When the website Gawker filed a Freedom improving — meaning the rollercoaster is rising — the nation but — once the economy is revived — of Information Act request for email from Hillary but these “ups” are followed stronger expansions? Clinton’s former State Department spokesman, by months or years when the The best answer seems to be “economic Philippe Reines, they discovered that this kind of economy is dropping — similar structure.” Every state economy has a different mix journalism, often called “transactional” journal- to the plunge in the rollercoaster. of industries. Some industries have more volatile ism, was quite common among the Washington Economists have observed movements through the business cycle, while others press corps (http://bit.ly/1O1E1Os). this “up and down” pattern have milder economic ups and downs. Marc Ambinder, a contributing editor of the in the economy for almost all An industry that clearly has a steeper and Atlantic and editor-at-large of The Week, a Brit- countries and for as long as we deeper economic ride is manufacturing, for two rea- ish news weekly with an edition in the U.S., was have good statistics. We call the sons. First, purchasing many manufactured prod- shown to have used actual wording “suggested” pattern the “business cycle.” ucts can be postponed. Say I want a new big-screen by Reines in exchange for an early transcript of a One complete cycle is composed MICHAEL TV for my home, but I’m afraid I might lose my job. Clinton speech. of an “up” period and its cor- I’ll delay buying that TV and get a few more years Reines told him to use the word “muscu- responding “down” period. In WALDEN of viewing my current set. lar” “in your own voice” to describe Clinton’s economics jargon, the “ups” are Yet once the economy improves, the second position. Ambinder also was told to mention that termed “expansions,” and the “downs” are labeled factor kicks in, an impact economists call “pent- Richard Holbrooke, George Mitchell, and Dennis “recessions.” up demand.” Now all the manufactured products Ross, diplomatic heavyweights, were present for The average business cycle lasts about six people wanted — but didn’t buy during the reces- the speech. years. Fortunately, the “up” part of the average sion — are bought. This means states with signifi- At the end of his email to Ambinder, Reines cycle takes about five years, while the “down” part cant manufacturing sectors that suffered a big crash specified this condition: “You don’t say you were lasts around one year. during the recession benefit from a buying surge in blackmailed.” Ambinder’s email response: “got Everyone would like to be able to predict the the expansion. it.” And he did as he was told. business cycle. But although economists have tried, This phenomenon is important for North Car- Several other outlets also used the word there has yet to be discovered any foolproof method olina because manufacturing is still very important “muscular” and mentioned the arrayed diplo- for accurately predicting the movements of the busi- to the state’s economy. One-fifth of North Carolina’s matic heavyweights, evidencing the incestuous ness cycle. economy is based on manufacturing, compared to Yet there is one thing we know about the 12 percent for the nation. As manufacturing goes nature of the mainstream media. Gawker also business cycle — it does not affect every place in through bigger swings during the business cycle, so found emails of similar incidents involving Mike the same way. Specifically, some states have milder does North Carolina’s economy. Allen, chief political reporter at the Politico web- business cycles — meaning the ups and downs in Research shows two-thirds of any state’s eco- site, and Reines. their economy are narrower — while other states ex- nomic path is tied to national trends. The remaining It’s unclear whether these cases of “transac- perience bigger swings through the business cycle. one-third can make for a more stable state economy tional” journalism did any further damage to the North Carolina is in the second category, and or one with bigger “booms and busts.” North Caro- credibility of a mainstream news media whose this can be seen clearly in the current business cycle. lina’s economic ride is bumpier. For some this is a integrity and honesty already are damaged In 2006 and 2007 North Carolina’s trend in eco- plus; but for others it’s a minus! CJ nearly beyond repair. CJ nomic growth was stronger than the nation’s. Then the recession hit in 2008, and the drop in the state’s Michael Walden is a Reynolds Distinguished Pro- Jon Ham is a vice president of the John Locke economy was deeper for the next several years. fessor at North Carolina State University. He does not Foundation and publisher of Carolina Journal. North Carolina began to pull out of the recession speak for the university. MARCH 2016 | CAROLINA JOURNAL PAGE 23 Opinion Trump Campaign All About The Donald uch ink has been spilled on fact that the real estate investor is a Smart, experienced, and like-minded All you need is to grease a few palms, the Donald Trump phenom- bundle of contradictions. It’s not just partisans are recruited through an and everybody’s friends. Political enon. Practitioners and the that he has made inconsistent state- existing series of networks so they can differences are bridged, and all parts Mpublic seem obsessed with the guy, ments and shifted his policy positions; hit the ground running. of the federal government will mesh and pundits are analyzing every di- these are things critics have pointed Of course, a Trump administra- seamlessly together to execute the mension of his presidential campaign. out for some time. Trump is a candi- tion-in-waiting presumably would president’s plans. Trump’s previous He is, after all, rewriting the rules by date whose argument for his election be assembled soon after he won the political experience, which amounts rejecting outside money, taking clear is entirely incongruous with the kind nomination. But it would be im- solely to writing campaign checks, and controversial of man he is and therefore the kind of promptu. It would be a government of including to the Clintons, is emblem- positions on the president we should expect him to be. strangers because Trump has no deep atic of this. few issues he talks For example, Trump says he is relationships outside of his bubble of To some Americans, this is what about, and making self-financing his campaign so he can New York financiers and Hollywood politics is. It’s really just business, a use of a very small serve the American people. Instead, celebrities. He constantly talks about purely transactional way of life full of organization. How he is running one fueled by celebrity, assembling the brightest minds, but fluid relationships between autono- has he stayed at putting very little of his personal he doesn’t really know many of the mous individuals all out to make a or near the top of wealth on the line. Trump supporters people whose heads they occupy. few bucks. Nothing is personal, there every poll in every should be prepared. There is no easy He has only superficial roots in the is no history, and there are no other place for so long? way to win the GOP nomination, and Republican Party. principles. The Repub- when he really needs to pony up, the It is with Congress that a presi- But true leadership is about lican establish- ANDY candidate will side with his wallet. dent has his most important rela- ideas. A president must have a vision, ment’s initial re- TAYLOR This is all about him, not you. tionship. Again, party and ideology a clear direction toward which he sponse to Trump’s Throughout the campaign, provide the glue. The support of wishes to take the country. It is also rise was to leave Trump has presented himself as a House and Senate leaders is required about building solid and depend- him alone. The campaign would “man of action,” a doer not a thinker, to shepherd a president’s agenda able relationships to help those ideas surely implode. Of course, it did not. a manager and businessman, not a through the legislative process. Strong into policy outputs, to become reality. So as we entered 2016, it was time to procrastinating and hand-wringing ties to the rank and file assist in the Good presidents look for agreement, go after “The Donald.” In late January, politician. He’ll cut through red tape, building of coalitions. Trump has none but they are not compulsive dealmak- for example, National Review devoted breeze by Congress, and have foreign of this. In fact, a Trump candidacy is ers and understand you can rely only an entire issue — 31 articles — to why leaders eating out of his hand. But a likely to have negative down-ballot on handshakes forged by trust. Let’s Trump should not be the presidential Trump presidency is really a recipe for effects, costing Republicans seats, if hope Republicans realize this before nominee. To date, these efforts have gridlock. not majorities. If he were to win, Presi- they finish selecting their nominee CJ had minimal effect. An effective Republican admin- dent Trump would be working with That’s because the attacks only istration must have strong connections a smaller, demoralized, and resentful make Trump more appealing. The to all corners of the business com- congressional GOP. Andy Taylor is a professor of politi- way to defeat him is not to call him munity, state capitals, and other core Trump’s response to this might cal science at the School of Public and In- callous, unsophisticated, and foul- constituencies. It must have some co- be that he knows, to quote the title of ternational Affairs at N.C. State Univer- mouthed. It is to hone in on the basic herent theme, an ideological character. his famous book, “the art of the deal.” sity. He does not speak for the university. A Short Session Can Be An Effective One he 2016 legislative short session from income taxes. Expand the per- Safeguard the right of parents to edu- special treatment, power costs will begins April 25. While contin- child tax credit, recognizing that an cate their children at home. continue to rise on the backs of North ued uncertainty over congressio- investment in children yields positive • Teacher pay should reflect suc- Carolina consumers. nalT (and even legislative) district maps returns. cess in the classroom. Teachers willing North Carolina is the only state could cut into the General Assembly’s • Roll back regulations that to tackle hard-to-teach subjects and in the Southeast with a renewable calendar, there are a number of moves stifle economic growth, discourage teach in hard-to-staff schools should energy mandate. Ours eventually will our elected officials could make this entrepreneurship, and create barriers get more money. Principals should require utilities to provide 12.5 percent year to highlight economic growth — to entering professions. State regula- be equipped with the knowledge and of their energy from conservation and fairer taxes, fewer tions cost North Carolina’s economy authority to manage their schools to renewable sources. Since the renew- barriers to build- between $3.1 billion and $25.5 billion attain highly competent, motivated able mandate took effect in 2008, ing businesses, yearly. staff. North Carolina’s electricity rates have education options A state-level REINS Act would • Promote patient-driven rather increased about 2 1/2 times faster that work for all, require any rule with a major eco- than government-driven health care. than the national average, costing patient-driven nomic impact on the people of North Certificate-of-need laws laws create jobs and economic growth. Repeal the health care, lower Carolina to receive legislative approv- barriers to the expansion of medical mandate and focus state energy policy energy costs, and al and the governor’s signature before services to the detriment of competi- on ensuring the least-cost, most-reli- a sensible criminal it is enacted. tion, patient access, and care. The code. Occupational licensing poses a federal government repealed its CON able electricity sources. As you’d barrier to entry, increases the cost of mandate for states in 1987. North • Many North Carolinians expect, we have a BECKI services, and discourages entrepre- Carolina’s should go as well. unknowingly commit crimes every few ideas: GRAY neurial activity. North Carolina has • Medicaid consumes 17 percent day. Our state criminal code has more • Further some of the nation’s most restrictive of North Carolina’s General Fund than 700 crimes, significantly higher tax reform with a occupational licensing requirements. budget, and it’s the fastest-growing than the number in neighboring fairer, simpler system that encourages Many should be repealed. part of the budget. Expanding Med- states. A bipartisan legislative task economic growth and respects wage • School choice puts parents in icaid under Obamacare would cost force to eliminate overcriminalization earners. Eliminate the bias against charge of decisions about which edu- millions of dollars, leaving taxpayers is needed to consolidate, clarify, and savings and investment by reducing cation options work for their children. on the hook indefinitely. About 82 simplify our bloated criminal code. or removing the tax on capital gains. Invest more in private-school scholar- percent of those newly insured would A short session does not mean Allow all business expenses to be ship programs for low-income and be able-bodied, childless adults. They an ineffective session. We have a plan. written off in the year they are in- special-needs students. Encourage need jobs rather than dependence on Let’s get started. CJ curred. Increase the standard deduc- the growth of strong charter schools. welfare. tion (the zero percent tax bracket) to Strengthen virtual schooling options • As long as the renewable Becki Gray is vice president for out- let all taxpayers shield higher incomes by expanding access and enrollment. energy industry gets subsidies and reach at the John Locke Foundation. PAGE 24 MARCH 2016 | CAROLINA JOURNAL Parting Shot Raleigh Officials Seek Vibrancy Regulations from U.N. (a CJ parody) By Anton Ego Lykketoft told Carolina Journal. “We Restaurant Regulation Correspondent weren’t aware that this was an item RALEIGH requiring our interference, but we are n an effort to impose still more happy to step in and tell countries outdoor dining regulations on Ra- what they can and cannot do with their leigh’s restaurant and bar owners, city sidewalks.” MayorI Nancy McFarlane, along with Paris restaurant owner Jacques city council member Russ Stephenson, St.-Bernard, who depends on outdoor took a café tour in late February on the seating to support his café, says the no- streets of Paris to assess sidewalk seat- tion of too much vibrancy on the side- ing standards in Europe’s most vibrant walk is incomprehensible to French city. citizens. The two city officials were “I will never understand this stunned by what they observed from American way of thinking,” St.-Ber- the dining culture of Paris. nard said. “It is Americans who love to “As much as we enjoyed the hos- come to Paris and get fat on our food pitality of our Parisian restaurant own- and drink. It is Americans who love ers, we found the city’s lack of concern Raleigh Mayor Nancy McFarlane, with suitcase, seems unimpressed at the amount to ride in cabs rather than walk. Why regarding outdoor dining regulations of revelry and vibrancy that she and council member Russ Stephenson, with her in appalling,” McFarlane said in a press red sweater, discovered at Les Deux Magots, one of the most famous sidewalk cafes wouldn’t they love it, then, that we release at the end of the tour. “Cafés in the world, when they visited Paris on a fact-finding trip recently. (CJ spoof photo) have turned our sidewalks into dining space where they can continue fatten- have entirely too much freedom to among officials, residents, and busi- all Parisians — dare I say, all citizens of choose their own dining furniture, and ing themselves? Where is the fun for nesses. the world. What does this kind of dis- them in taking that away?” the number of people allowed to sit The rules are undergoing further play do to passersby who are unable to on sidewalk patios is nothing short of The goal of the U.N. commission revision, a move that required “thor- join in on the fun?” is not to diminish fun, but rather to re- shocking.” ough consideration of best practices Concerned for the future of un- duce the threat that too much vibrancy The trip, intended to educate city from cities around the world,” McFar- regulated patio dining and sidewalk poses to the comfort and happiness of officials on maintaining a vibrant en- lane said. use around the world, in late Febru- all, said McFarlane in a response to St.- vironment for residents and business Along with McFarlane’s com- ary the officials announced a proposal owners, stemmed from an ongoing de- plaints, Stephenson expressed alarm at to petition the United Nations General Bernard and other complainants. bate over sidewalk dining regulations the the noise levels around areas such Assembly to create a U.N. Commission “It just isn’t right for one city to in downtown Raleigh. as the Boulevard Saint-Michel and for the Regulation of Global Vibrancy. be more vibrant than another,” McFar- Residents’ complaints about the Place St.-André des Arts, both of The proposal will be considered at the lane said. “That blatant skewing of the overcrowding and excessive noise which have residential spaces above General Assembly’s April 21 meeting scale creates a competitive disadvan- began last May, spurring the council the street level. as part of its debate on sustainable de- tage for cities that cannot offer the level to tighten rules for dining on public “The amount of revelry I see velopment goals. of happiness that you can find in Paris, sidewalks. That action caused uproar along these streets is unacceptable,” “We are looking for supportive Berlin, or New York. That inequality among bar and restaurant owners, Stephenson said. “This poses a serious multistakeholder engagement on this among world-class cities should not be and resulted in months of arguments threat to equality of happiness among issue,” U.N. President H.E. Mogens allowed.” CJ

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