INSIDE THIS ISSUE: DEPARTMENTS In spite of North Carolina 2 C A R O L I N A Education 9 abuses, Higher Education 13 school-lunch Local Government 16 Books & the Arts 20 program ex- Opinion 24 Parting Shot 28 panded /5 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION JOURNALFROM THE JOHN LOCKE FOUNDATION July 2009 Vol. 18. No. 7 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Critics: Black Got Sweetheart Deal on Fines Critics say justice system did favors regarding settlement By David N. Bass Associate Editor RALEIGH s jailed former state House Speaker Jim Black mounts a campaign for early release from federalA prison, critics contend that the state justice sys- fice. “Cash in hand would have been tem did favors for much preferred in this situation.” Black regarding the Uncertainty about the deal settlement of his The property Jim Black used to settle his fine is located on the south side of Rice cropped up shortly after Black’s at- Road in Matthews, N.C., south of Charlotte. $1 million fine in torney, Whit Powell, asked President a corruption and cial properties and several lots with Critics wonder why the school Barack Obama and the federal Bureau bribery scheme. homes at Lake Norman, he was not system would accept the property on of Prisons either to free the former Black was required to sell or take out mortgages Rice Road in Matthews rather than speaker early or bring him closer to given two years on any of them to satisfy the final half force Black to borrow against or liqui- home. (and offered two of the fine. date his other real estate holdings val- Powell has said that Black’s wife, extensions) before Former Speaker Instead, prosecutors and the ued in the millions. Betty, recently was diagnosed with paying the fine; Jim Black court let Black pay the second install- “It’s mystifying that the Wake Lou Gehrig’s Disease, and Black him- he was allowed to ment by surrendering two parcels of County school district would take the self is in poor health. More than 150 do so in $500,000 installments. And undeveloped land in a Matthews sub- risk of having to sell the property in people, including former Republican even though the Matthews Democrat division that was most recently valued the future,” said Joe Sinsheimer, a for- Gov. Jim Martin, have reportedly writ- owned more than a dozen parcels of for tax purposes at about 30 percent of mer Democratic consultant who spear- real estate, including prime commer- the value of his outstanding debt. headed efforts to oust Black from of- Continued as “Critics,” Page 2 DAQ Scrapped Report After Meeting With AG’s Reps

PAID the state’s case, now on appeal in fed- western North Carolina and threaten- eral court. If the state wins its lawsuit, ing residents’ health. RALEIGH, NC U.S. POSTAGE Official says she PERMIT NO. 1766

NONPROFIT ORG. TVA and other nearby states with coal- “We know that air pollution from never felt pressured fired power plants may have to add the Tennessee Valley Authority is mak- emissions controls potentially costing ing people sick,” Cooper told National billions of dollars. Public Radio soon after filing the law- by state’s attorneys The DAQ report, part of a larger suit in 2006. “It’s causing haze across By David N. Bass document discussing compliance with our mountains, it’s killing our trees, Associate Editor air-quality regulations in Hickory and it’s polluting our waters. We want it to RALEIGH the Triad region, never got beyond the stop.” he N.C. Division of Air Quality draft stage. It had concluded that nitro- The state won its suit in U.S. District Court in January. The TVA ap- scrapped a pollution report days gen oxide, NOx, was an “insignificant” pealed the decision in May. after lawyers working for At- precursor to the formation of fine par- A press release issued by the at- torneyT General Roy Cooper expressed ticulate matter, PM2.5, a type of pollu- torney general’s office in 2006 estimat- concerns that its findings might lead to tion that poses respiratory health risks. ed that “out-of-state power plant emis- unwanted questions about the state’s But in the TVA lawsuit, Cooper sions (including PM2.5) are responsible lawsuit against the Tennessee Valley claimed the opposite. He argued that each year for more than 15,000 illnesses Authority. NOx emissions from TVA’s coal-fired and hundreds of emergency room vis- The DAQ report arrived at con- power plants are a primary compo- The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 clusions that could have undermined nent of PM2.5, contributing to smog in Continued as “DAQ,” Page 4 PAGE 2 JULY 2009 | CAROLINA JOURNAL

C a r o l i n a Critics: Black Got Sweetheart Deal on Fines Continued from Page 1 say they have not seen a complete copy TIMELINE OF JIM BLACK’S Journal ten in support of Black’s early release. of the appraisal. Black is currently serving a CRIMINAL FINES “I do not have access and have not seen it,” Willoughby said. Rick Henderson 63-month sentence in a Lewisburg, Pa., federal corrections facility on corrup- Feb. 15, 2007: Black pleads guilty to The appraisal should address Managing Editor a federal felony charge of “accepting whether sewer service is available to Don Carrington tion and obstruction of justice charges. illegal gratuities” the parcels, which would significantly Executive Editor (See timeline at right.) He admitted to impact their value. Bosworth said that accepting tens of thousands of dollars Feb. 20, 2007: Black pleads guilty to a David N. Bass, Mitch Kokai in bribes from chiropractors to push he could not recall whether sewer was state felony charge for bribing former available. Michael Lowrey legislation favorable to them. He also state Rep. Michael Decker Associate Editors pleaded guilty in state court to charges In a telephone interview with CJ, Gardner said that he had concerns af- stemming from a $50,000 payoff to Re- July 11, 2007: Black sentenced to 63 Chad Adams, Jana Benscoter publican state Rep. Michael Decker to months in prison and a $50,000 fine on ter learning of the property’s tax value, Kristen Blair, Roy Cordato switch parties, which allowed Black to federal charges but that in the end he felt comfortable Becki Gray, Paige Holland Hamp remain speaker. with the deal. “I’m not an expert, but I David Hartgen, Sam A. Hieb July 30, 2007: Reports to prison in feel very good that its fair market val- Lindalyn Kakadelis, George Leef As part of Black’s July 2007 guilty plea, Wake County Superior Court Lewisburg, Pa. ue is at least $500,000,” he said. Karen McMahan, Karen Palasek Willoughby also isn’t sure what Susan Robinson, Marc Rotterman Judge Donald W. Stephens ordered July 31, 2007: Sentenced in state the property would fetch on the open Mike Rouse, Jim Stegall him to pay a $1 million fine by Dec. 10, court, eight to 10 months in prison, $1 George Stephens, Jeff Taylor 2007. By law, the fine goes to the Wake market. “Certainly what’s gone on in million fine, $54,000 in restitution Michael Walden, Karen Welsh County Public School System. the last 18 months or two years in our Hal Young, John Calvin Young News & Observer economic times have made it more dif- The Raleigh re- Wake County Superior Contributors Dec. 7, 2007: ficult to place a value on the reales- ported that Stephens also threatened Court Judge Donald W. Stephens Black with an additional 19 months to tate,” he said, “so I don’t think anyone Laura Barringer, Jacob Burgdorf grants Black seven-month extension can tell you exactly what the property 23 months in state prison if he did not to pay fine in full; puts lien on Black’s Adrienne Dunn, Marissa Farell pay the fine on time. is worth today.” Ben Goldhaber, Hans Kist Charlotte office building Even so, Stephens gave Black two Powell defended the settlement Caitlin McLean, Alex Pitsinos, extensions, citing the tough economy, Dec. 20, 2007: RT Land Developers in a written response to e-mailed ques- Sara Riggins, Andrew Schreiber tions, saying, “Your implication that Editorial Interns placing a lien on the office building LLC offers to purchase two Rice Road housing Black’s former optometry parcels for $564,295 the Wake County School Board was Published by practice as security that Black eventu- shortchanged is inaccurate and with- The John Locke Foundation ally would pay the entire fine. April 29, 2008: Offer to purchase out basis.” 200 W. Morgan St., # 200 The former speaker paid half of amended, citing uncertainties about Black may have to pay capital Raleigh, N.C. 27601 the debt in June of last year, leaving sewer service gains taxes on the property, says Ra- (919) 828-3876 • Fax: 821-5117 a balance of $500,000. Black has had leigh CPA Chuck Averre. “The ex- www.JohnLocke.org trouble liquidating his real estate to May 23, 2008: Black files special change of property for extinguishment warranty deed in Mecklenburg County pay the remaining portion, according of debt is treated as if the property was shifting Rice Road and seven other Jon Ham to Powell. sold for the amount of the debt relief,” Vice President & Publisher real estate parcels into both his and his he said. “In other words, it is treated That led to a settlement with wife’s names the school system. Wake County Dis- as if he sold the property for cash, and John Hood then used that cash to pay the fine.” Chairman & President trict Attorney Colon Willoughby and June 26, 2008: Black pays $500,000 Asked what WCPSS planned to school board attorney Kris Gardner, of cash, settling half the fine; Stephens Bruce Babcock, Herb Berkowitz the law firm Tharrington Smith LLP, provides second extension of 12 do with the parcels, Gardner said they Charlie Carter, Jim Fulghum agreed to accept the Rice Road parcels months would probably try to sell them as Chuck Fuller, Bill Graham to fulfill Black’s obligation. soon as possible. Robert Luddy, Assad Meymandi Stephens signed off on the trans- May 14, 2009: John Bosworth & Asso- It’s uncertain how soon that Baker A. Mitchell Jr., fer in a court order issued May 14, stat- ciates LLC releases appraisal valuing might happen, given the bleak national Carl Mumpower, J. Arthur Pope ing that the property “has a fair market Rice Road parcels at $613,000 and local real estate market. The Char- Thomas A. Roberg, David Stover value roughly equal to the remaining lotte Observer reports that home sales Robert Stowe III, J.M Bryan Taylor fines, restitution and court costs to be May 14, 2009: Stephens and Wake in the area fell by 31 percent in May Andy Wells paid in this case based on previous of- County schools accept Rice Road par- compared with a year ago, and aver- Board of Directors cels as settlement of remaining fine fers to purchase.” age prices declined by 11 percent. Attempts to reach Stephens for Carolina Journal is a monthly journal Property records show the land March 21, 2012: Black’s scheduled comment were unsuccessful. of news, analysis, and commentary on state was deeded over to WCPSS the same release date from federal prison and local government and public policy issues day. The transaction officially satisfied Ownership questions in North Carolina. the $500,000 debt due Wake County. ©2009 by The John Locke Foundation Days before Stephens approved Land records indicate that Black Inc. All opinions expressed in bylined articles Settlement deal the May 2009 transfer of the two par- owns real estate worth around $4 mil- are those of the authors and do not necessarily cels to satisfy Black’s obligation, John lion in Mecklenburg and Iredell coun- reflect the views of the editors of CJ or the Willoughby and Gardner based their decision on two documents — an Bosworth & Associates LLC appraised ties, and at least some of it appears to staff and board of the John Locke Foundation. be fully paid for. Material published herein may be reprinted as offer to purchase and an appraisal — the real estate at $613,000. Mecklenburg County property long as appropriate credit is given. Submis- that each valued the property above CJ has been unable to obtain a full sions and letters are welcome and should be the amount Black owed. copy of the appraisal, which contains listed in the names of James B. Black Sr. directed to the editor. The offer to purchase was made data and analysis to justify the esti- and Betty C. Black include an Uptown CJ readers wanting more information originally in December 2007, when RT mate. Contacted by phone, John Bos- Charlotte office with a tax value of between monthly issues can call 919-828-3876 Land Developers LLC, a real estate worth declined to make available a full $1.2 million, a residence in Matthews and ask for Carolina Journal Weekly Re- company owned by Charlotte devel- copy, citing confidentiality agreements valued at almost $500,000, a Central port, delivered each weekend by e-mail, or visit oper Thomas Pearson, offered Black that prohibit release to a third party. Avenue day-care center building, and CarolinaJournal.com for news, links, and ex- $564,295 for the parcels. The contract Powell initially sent three pages of the several parcels of prime real estate in clusive content updated each weekday. Those was extended in April 2008 due to document, but by press time had not the commercial center of Matthews. interested in education, higher education, or responded to a request for the remain- These latter Matthews parcels together local government should also ask to receive uncertainty about the availability of ing portion. are valued at $451,900. weekly e-letters covering these issues. sewer service. The deal subsequently fell through. Willoughby and Gardner both Continued as “Critics,” Page 3 JULY 2009 | CAROLINA JOURNAL PAGE 3 Critics: Former Speaker Jim Black Got Sweetheart Deal on Fines Continued from Page 2 “They didn’t want to get into the CJ was unable to locate a deed landlord business,” he said. of trust for any of the properties, sug- Instead, Wake County schools gesting that Black has no outstanding will have to sell the properties, deduct- mortgages and could own them free ing legal and other transaction costs, and clear. before realizing any revenues from In addition to the Mecklenburg them. County real estate, Black owns three lakefront properties in Iredell County Liquidating assets — one of them listed in Black’s name Due to the economy, Black has only, the other two in his and his wife’s had trouble selling his real estate at fair names. The three properties had a market value to clean up the fine, Pow- combined tax value in 2007 of almost ell said. The source of Black’s $500,000 $2 million. cash payment last year that satisfied Willoughby said that Powell had half of the fine is unclear. represented to him that the Rice Road CJ was also unable to learn the properties were all that was available steps Black’s family took to sell his oth- to satisfy the debt, since Black and his er real estate. Black has “made efforts wife jointly own their other real estate. to sell all properties with the exception Wake County District Attorney Colon Willoughby addresses reporters after Jim Black “The judgment would be against of the home in which his critically ill Dr. Black, not against he and his wife, pleaded guilty to bribery. (CJ file photo) wife resides,” Powell said, but he did and so the judgment would not attach Black inherited the Rice Road proper- tax revaluations put the combined fair not provide details. to jointly owned property,” Willough- ties, Powell said, and that all “other market value of the properties at $1.3 Gardner suggested that the rea- by said. real property that Dr. Black has an in- million. son Black couldn’t sell property was But records indicate that both terest in was acquired after marriage to Willoughby and Gardner said “because the developers knew he was Black and his wife were listed as own- Mrs. Black.” they were unaware of Black’s Iredell in jail and were lowballing him.” ers of the Rice Road properties at the County property. “If it were property “It would have been ideal to time of the settlement with WCPSS. Iredell lake houses that he owned individually, it’s some- A special warranty deed recorded in have cash in hand, but that wasn’t an thing that could be levied against, and Mecklenburg County May 23, 2008, One of the lakefront properties option. So this for us was the next best ultimately the judgment could be lev- shows that Black transferred nine piec- in Iredell County, however, is listed thing,” he said. ied against it,” Willoughby said. es of real estate into both his and his in Black’s name only and does not ap- Asked if real estate was common- Asked if the school system wife’s names. The parcels on Rice Road pear to be jointly held. Records show ly accepted as a cash substitute to pay looked at Black’s other real estate be- were among them. that Black bought the property, which a fine, Willoughby said that large fines In addition, property tax records is located on the end of a peninsula on fore accepting the Rice Road proper- are “rarely if ever collected.” show that as recently as April 27, 2009, Lake Norman, in 1977. ties, Gardner said that they considered “It’s uncommon for anyone to both Black and his wife were listed as The land and an 1,800-square- some alternatives in Mecklenburg come in and voluntarily try to pay a owners of the more valuable of the two foot house had a fair market value of County. fine of this magnitude,” he said. “With Rice Road properties. The smaller, low- $725,510 on Jan. 1, 2007, based on a re- “We did consider several other most of the large fines that we see, er-valued parcel was listed in Black’s cent county reassessment. As with the properties. Some of them were encum- people make little or no attempt to pay name only. Mecklenburg County properties, CJ bered, some owned by other folks,” he them.” CJ Asked to clarify whether the was unable to locate a deed of trust for said. Rice Road parcels were individually the lake house, so it could be paid for. The school system didn’t consid- David N. Bass is an associate editor or jointly owned, Powell suggested Black also owns two other lake er asking for Black’s Tryon Road office, of Carolina Journal. Additional reporting that the only property the state could houses, one just down the road on the on which Stephens had placed a lien, for this story was provided by Carolina pursue to settle the fine was land that Lake Norman peninsula. The other is since there is a long-term lease on the Journal executive editor Don Carrington Black owned before he was married. located about two miles away. Recent property, Gardner said. and contributor Jeff A. Taylor.

Visit the new-look Carolina Journal Online

With links to the new CJTV and CJ Radio Web sites http://carolinajournal.com PAGE 4 JULY 2009 | CAROLINA JOURNAL DAQ Scrapped Pollution Report After Meeting With AG’s Reps Continued from Page 1 er pressured her to drop the report. “The most overriding would its in North Carolina alone.” “They were fine if we wanted to (con- have been the transportation confor- And yet the scuttled DAQ report clude NOx) insignificance as long as mity issues to show that NOx emis- found that even “unrealistically severe we could answer some of their ques- sions from cars aren’t creating a prob- reductions in NOx emissions” — in tions,” she said. lem,” he said, in addition to “controls other words, completely eliminating She said the lawyers asked how on factories to reduce NOx.” NOx — “resulted in comparatively mi- to respond to questions that might crop Keith Overcash, director of DAQ, nor reductions in total PM2.5 mass.” up in the legal case. Cooper filed peti- and Holman declined to be inter- DAQ staff decided to abandon tions under Section 126 of the federal viewed for this article. Clean Air Act asking the federal gov- the report shortly after meeting with Schwartz report Cooper’s attorneys in September 2008. ernment to force TVA and neighboring The air quality official responsible for states to comply with North Carolina’s DAQ’s finding that NOx is an the document, however, says the attor- strict 2002 Clean Smokestacks Act tar- insignificant precursor was correct, neys never pressured her to drop it. geting emissions from coal-fired pow- said Joel Schwartz, an environmental “They never once told me you er plants. DAQ’s report concluded that consultant and visiting fellow for the all can’t do this,” Laura Boothe, attain- regulations curbing NOx would have American Enterprise Institute. The at- ment planning branch supervisor for little effect on the formation of poten- torney general’s conclusion was not. DAQ, told Carolina Journal. tially harmful small-particle emissions. “NOx does help form PM2.5 by But e-mail correspondence sug- That conclusion could undermine the getting turned into ammonium ni- state’s lawsuit. gests that Cooper’s team was con- E-mail correspondence suggests At- trate,” Schwartz said. “However, it’s cerned about the report’s potential torney General Roy Cooper’s team was In the meeting, Boothe said she (a) minor PM2.5 contributor in the impact on the TVA case. After being concerned about the report’s potential had an “epiphany” that it would be eastern half of the U.S.” informed of DAQ’s findings, special impact on the TVA case. (CJ file photo) best to drop the report entirely. Doing A research report written by Deputy Attorney General Marc Bern- so would “satisfy EPA (and) it would Schwartz last year disputed Cooper’s for PM2.5,” Boothe said. Tighter ozone stein wrote in an e-mail dated March satisfy the concern that the attorney argument that emissions reductions standards subsequently issued by EPA 17, 2008, that it “hopefully … won’t general’s office may have had,” she from TVA would diminish health risks require the state to impose regulations create any issues in TVA. … ” said. to residents of western North Carolina. similar to those needed to reach PM2.5 Six months later, DAQ staff met If DAQ had proceeded with the It argued that neither NOx nor sulfur attainment levels, she said, so “there with Bernstein to discuss a final draft report, the agency would have had dioxide emissions from TVA’s power was no point to continue trying to win of the report. Shortly afterward, DAQ to implement controls for “a range of plants are harmful, “even at levels 10 EPA over from our point of view.” declared the project “officially dead.” things,” said DAQ public information times greater than are ever found in Despite months of back and forth officer Tom Mather. the air Americans breathe.” CJ No technical analysis with the EPA, though, Boothe did not drop the report until after she met with DAQ did not perform a technical the attorney general’s office. E-mails analysis before deciding to drop the re- show that Boothe and other top DAQ port, according to Boothe. She blamed staff met with Bernstein Sept. 9, 2008, pushback from the U.S. Environmental to discuss the report. Protection Agency as the primary rea- Two days later, George Bridg- son for abandoning the project. ers, a meteorologist for DAQ, e-mailed “They did not feel comfortable Boothe and Sheila Holman, who at the with what we had there,” she said. time was DAQ planning section chief, Declaring NOx an insignificant to ask if the project was dead. Boothe precursor would have let the state and Holman replied yes. Join one of the John Locke Foundation’s avoid new emission “controls that we Asked what occurred in the didn’t think would benefit attainment meeting, Boothe said the lawyers nev- new regional clubs. There’s one near you.

Triangle Freedom Club Piedmont Freedom Club Raleigh, Durham, Chapel Hill, and near- Charlotte, Gastonia, Concord, and near- by cities and towns by cities and towns Triad Freedom Club Down East Freedom Club Winston-Salem, Greensboro, Burlington, Greenville, Rocky Mount, Elizabeth City, and nearby cities and towns and nearby cities and towns Sandhills Freedom Club Western N.C. Freedom Club Fayetteville, Southern Pines, Pinehurst, Asheville, Hickory, Burnsville, and nearby and nearby cities and towns cities and towns Southeastern Freedom Club Wilmington, Jacksonville, Whiteville, and nearby, cities and towns

3 Ways to Join 1. Visit www.JohnLocke.org/freedomclubs 2. Phone 1-866-JLF-INFO 3. Be our guest for one meeting. If you like what you see and hear, you can join on site. Go to this link to check meeting dates and locations: http://www.johnlocke.org/events/ JULY 2009 | CAROLINA JOURNAL PAGE 5 Despite Abuses, Char-Meck Expands School-Lunch Program dizes the meals for school districts, taken advantage of their free break- program requires parents to do noth- but recent increases in food costs often fast and lunch each day since being ing more than self-report their earn- Critics worry meal mean that districts end up breaking approved, the meals have gener- ings. No proof of income, such as a pay even or losing money. That scenario is ated $193,172.26 in reimbursement to stub or W-2 form, is required. subsidies flowing no different in CMS, where 63,498 stu- the CMS Child Nutrition program,” dents were on the Hobbs said. Invitation to cheat? to ineligible students free and reduced But some lo- Such leniency opens the door for lunch dole last cal school leaders cheating, critics say, and allows higher- y avid ass school year. want the district B D N. B income families to enroll without fear Associate Editor In hopes of first to be more of getting caught. Verification summa- RALEIGH reducing over- diligent in ensur- ries from school districts across North harlotte-Mecklenburg Schools head for the ing that students Carolina suggest that ineligible partici- recently developed new ways to school district, receiving the en- pation might be widespread. get more students enrolled in its CMS in February titlement indeed Federal law requires school dis- freeC and reduced-price lunch program, cross-referenced qualify for it. tricts each year to verify the incomes of even while questions linger about po- a list of students “While I either 3 percent of applicants or 3,000 tential cheating among applicants. who receive food have no doubt (whichever is less) considered “error Demand for the school lunch en- stamps with that there are titlement has spiked nationwide over those enrolled in 1,000 or so that prone,” meaning households whose the last year as families try to weather the school lunch CMS was paying earnings are within $100 monthly or a turbulent economy. But some observ- program. for that were not $1,200 yearly of the income eligibility ers ask why the school district would The cross- collecting fed- limitation. seek to enroll more students when re- check helped the eral benefits, the As part of the verification, school cent checks of applicants have suggest- school system bigger question officials request proof of income from ed that many of them may have been identify more (is) the 10,000 or parents to justify the amount they ini- ineligible for the subsidies. than 1,000 eligible more who are on tially declared on the application. If The program, which is adminis- students “who it and should not applicants fail to respond, or respond tered by the U.S. Department of Agri- were not taking be,” said Meck- with evidence that shows too high an culture, is meant for families with in- advantage of the lenburg County income, officials reduce or terminate comes at or below 185 percent of the program,” ac- C o m m i s s i o n e r their benefits. federal poverty level. cording to Rick Christenbury, a spokes- Bill James. Verifications from the last three For example, a family of four man for the Mecklenburg County James was one of a handful of school years for CMS show an average earning up to 130 percent of the annual Health Department. county and school leaders who pressed potential fraud rate of 63 percent. That poverty level ($26,845) would be eli- for an audit of the free and reduced- percentage prompted a contentious de- gible for free meals. A family earning District reimbursed lunch entitlement last year after Caro- bate among school board members last between 130 percent ($26,845) and 185 Many of those students were lina Journal reported on potential fraud fall over whether to conduct a full au- percent ($38,203) of the poverty level coming to school each day without in the program. dit of the program. That idea died after would qualify for reduced-price meals. enough money for breakfast and “Charlotte-Mecklenburg Schools the USDA threatened to cut off CMS’ A family with an income over 185 per- lunch, and were charging their meals chases free and reduced-lunch num- school lunch subsidy if it proceeded. cent of the poverty level would have to on debit, said CMS Child Nutrition bers like ACORN chases votes. It’s The school board hasn’t dealt pay full price. Services director Cindy Hobbs. Enroll- the same attitude and activist mental- with the issue since, and Gauvreau Families also can qualify auto- ing the kids in the school lunch entitle- ity,” said school board member Larry doubts they will tackle it again. “It’s a matically based on residential status or ment means that CMS now receives Gauvreau, another vocal supporter of broken system,” he said. “Char-Meck participation in other government aid reimbursements from the federal gov- an audit. has taken advantage of that, and un- programs, such as food stamps. ernment for the meals. Unlike other federal nutrition en- fortunately doesn’t have the political The federal government subsi- “If the children identified have titlements, the free and reduced-lunch will do to this.” CJ

Books authored By JLF staFFers Visit our Triangle regional page Efficiency and Externalities http://triangle.johnlocke.org in an Open-Ended Universe The John Locke Foundation has five regional Web sites span- ning the state from the mountains to the sea.

The Triangle regional page in- cludes news, policy reports and By Roy Cordato Vice President for Research research of interest to people in John Locke Foundation the Research Triangle area. “Cordato’s book is a solid It also features the blog Right performance, demonstrating impressive mastery of both Angles, featuring commentary the Austrian and neoclassical on issues confronting Triangle literature.” residents. Israel Kirzner Cato Journal

The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 www.mises.org PAGE 6 JULY 2009 | CAROLINA JOURNAL N.C. Briefs Inclusionary Zoning On Table in Charlotte? Tax reviews update By Colleen Calvani sionary zoning won’t help the poorest income residents — and the swiftness The N.C. Department of Contributor Revenue has been less than forth- of the poor. “I’m not sure (it) will solve of its impact on middle-income hom- coming in answering questions CHARLOTTE the problem,” she said. eowners. about its practice of delaying in- amilies displaced by the reces- For Michael Hinshaw, president In communities with inclusion- come tax refunds to some filers sion and the rising number of of the Homebuilders Association of ary zoning, “builders will take on claiming large numbers of exemp- homeless have elevated concerns Charlotte and of Hinshaw Properties, smaller projects, or they’ll simply fo- tions. As Carolina Journal reported Fabout affordable housing in Charlotte. a private developer, affordability in cus on neighboring communities that in May, parents claiming eight or Some civic organizations and nonprof- Charlotte is not relegated only to the have no price restrictions,” said Mi- more exemptions were sent letters its have resumed calls for mandatory lowest income demographic. chael Sanera, research director and lo- from the department demanding inclusionary zoning, a controversial Three city cal government documentation to back up the policy that forces developers to reserve policies are driv- analyst for JLF. claims. Failure to comply meant a certain number of units in any new ing up the cost The policy refunds were forfeited. project for low-income residents. of housing, he Developers will of inclusionary Department Secretary Ken- Under inclusionary zoning, de- says. The city’s zoning could neth Lay initially said the policy velopers often will make up for the regulations gov- often compensate face some legal was enacted to catch suspected lower rents and home prices they erning stormwa- for lower rents and challenges as “noncompliance,” but the de- charge low-income residents by boost- ter, urban street well, as it could partment has since admitted that ing the amount tenants and buyers design, and trees home prices by conflict with this was the first year the state re- with higher incomes who don’t qualify each add sig- North Carolina quired documentation from filers for public assistance must pay. The sys- nificant costs to charging more to laws against rent before issuing refunds. tem allows people receiving subsidies new construc- control. In the Others have suggested that to reside in nicer neighborhoods and tion and seem to people with higher meantime, Char- the policy did nothing more than avoid the stigma of living in “low-in- contradict each incomes who don’t lotte is trying to harass large families, since the come” housing areas. For those who other. And since address its low- Internal Revenue Service verifies must subsidize their neighbors — of- Charlotte has no get subsidies income hous- exemptions and other informa- ten without their knowledge — it can natural land bar- ing shortage tion on tax returns by checking seem unfair. riers to discour- through some the Social Security Administra- “For Charlotte and other com- age people from new projects. tion database — and North Caro- munities, (inclusionary zoning) pro- moving to a neighboring county, he Earlier this year, nine multi- lina, like most states, has a reci- vides the choices and opportunities … said, the city will soon find its policies family projects were approved for procity agreement with the IRS to for all different types of housing types driving people out — and home prices construction or rehabilitation. One of share personal tax data. and price points, so people can have up. these projects, called Savanna Woods, CJ filed a public records re- the choices and opportunities that they The bad economy also would is proposed to be located in an area quest with the Revenue Depart- really need … to be successful,” said make it difficult to sell policies like in- where less than 50 percent of residents ment May 11 for all internal docu- Mary Klenz, a member of the Mixed clusionary zoning in any municipality. are homeowners. This would appear to ments relating to this policy. As of Income Housing Coalition and the “I don’t think that’s a very effec- violate a city policy designed to avoid June 24, Lay said in late June that League of Women Voters of Charlotte- tive long-term solution to affordable low-income density, but the city is re- the department would comply Mecklenburg. This year MIHC has housing,” he said. “Frankly, inexpen- questing a waiver of the policy for the with the request by the week of asked the Charlotte City Council, the sive housing has been one of the rea- project — to the chagrin of some resi- July 6. Mecklenburg Board of County Com- sons that Charlotte has been so suc- dents. missioners, and other officials to adopt cessful, and policies raising the cost of Additionally, Charlotte will see inclusionary zoning in the city. housing are very frustrating.” almost $2 million in federal stimulus JLF: Taxes destroy jobs “I think (people are) receptive to An April 2008 John Locke Foun- money for the express purpose of ad- hearing about it,” Klenz said. “Now dation study cited the ineffectiveness dressing homelessness related to the The John Locke Foundation how that’s going to translate, and how of inclusionary zoning in helping low- slumping economy. CJ said legislative proposals both to long that’s going to take to make its sock the state’s top earners with way into the public policy arena, it new income tax brackets and raise (will) take a while. But … I think it’s other levies would only exacer- beginning to make a lot of good sense bate the labor market collapse. to policymakers and elected officials.” “North Carolina already has But some question whether in- Visit our Triad regional page the highest marginal personal in- clusionary zoning, particularly in a come tax rate in the Southeast and lackluster market like Charlotte’s, will http://triad.johnlocke.org one of the highest rates in the na- actually help those most in need. The tion,” JLF Fiscal Policy Analyst Jo- city expects a housing shortage in the The John Locke Foundation seph Coletti said. “If the General next three years, with estimates of an Assembly’s negotiators adopt the has five regional Web sites span- additional 17,000 units needed for new income tax hikes included ning the state from the mountains in the House budget plan, North those making less than $16,000 per to the sea. Carolina would stand out from its year, according to a city study, cited in The Charlotte Observer. neighbors for the wrong reasons.” The Triad regional page includes The N.C. Employment Se- Patricia Garrett, president of the Charlotte-Mecklenburg Housing Part- news, policy reports and re- curity Commission’s latest report search of interest to people in lists the state’s unemployment nership, explained that the problem rate at 11.1 percent for May, up has been years in the making. the Greensboro, Winston-Slem, 0.4 percentage points from the “We haven’t (built) many shel- High Point area. adjusted April rate of 10.7 per- ters or transitional places, and it’s kind cent. It’s the highest rate North of become the perfect storm — we’ve It also features the blog Pied- Carolina has recorded since the not done a lot of production for spe- mont Publius, featuring com- cial populations, so now we have that state started keeping seasonally mentary on issues confronting adjusted data. North Carolina combined with the fact that people are ranks No. 7 among the 50 states in losing their homes or apartments,” she Triad residents. unemployment. CJ said. Garrett is concerned that inclu- The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 JULY 2009 | CAROLINA JOURNAL PAGE 7 Are N.C. Auto Dealership Closures Being Affected by Politics? Payback allegations Political influence Allegations emerged shortly af- ter the announcements that profitable The dealerships were being shut down alleged to be working for political reasons. Rep. Ted Poe, R- Federal Texas, said on the floor of the House of Representatives that large Repub- in both directions lican donors with Chrysler franchises File By Hal Young were being closed, while Democratic Contributor donors were allowed to stay in busi- RALEIGH ness. No one in the Presidential Task s the restructuring of the Amer- Force on the Auto Industry, a panel led ican auto industry proceeds, by Obama administration officials and both Chrysler and General former campaign aides, would explain MotorsA have begun widespread can- the decisions in their restructuring cellation of franchise agreements with plans, Poe said. local dealerships. A total of 789 Chrys- “Are these Auto Task Force ty- ler dealers were scheduled to close on rants picking the winners and losers June 9, with 1,100 GM dealers sched- based on campaign contributions? uled for shutdown by 2010. However, Does the administration have a Nixon- with an estimated 100,000 jobs and style enemies list?” he asked. “All these many long-established family busi- questions because the Auto Task Force you don’t want politicians picking nesses at stake, allegations have sur- guys aren’t talking and aren’t telling us winners and losers in business, and it’s faced that political influence may play why they closed down certain dealer- why you don’t want private business a role in the decisions of which dealers ships and why they let others remain to be owned by politicians, because to retain and which to cast away, and open.” you can’t trust them not to make deci- Congress is considering action to pre- This doesn’t seem to be the case sions on a political basis.” vent the completion of both manufac- The management of Doug Jones Chevro- in North Carolina. Federal Election turers’ closure plans. let in Benson gives its customers the bad Commission records show that most of Politics pulls both ways news. (CJ Photo by Hal Young) the affected dealers in the state offered Already in progress low levels of campaign support. One Other politicians have stepped lose around 30 dealers between the exception is C. David Johnson, whose in to block the closure plans. The Au- Chrysler LLC published its clo- two manufacturers. The total is uncer- Johnson Chrysler-Dodge-Jeep dealer- tomobile Dealer Economic Rights Res- sure list on May 15, citing dealers’ tain because while Chrysler named the ship in Durham was closed. Johnson, toration Act (H.R. 2743), sponsored by sales performance, customer service, 13 dealers set to be shuttered in North who owns Johnson Lexus in Raleigh Reps. Dan Maffei, D-N.Y., and Frank facilities, and relationships with other Carolina, GM has declined to release and several other large auto franchises, Kratovil, D-Md., would require Chrys- automakers as the key variables in the information about the franchises on is a long-time Republican donor. FEC ler and General Motors to honor fran- decision. The same day, General Mo- the chopping block. filings show donations to GOP candi- chise agreements as they existed before tors began notifying about 1,100 deal- Several online sources, including dates and PACs totaling $100,000 or bankruptcy proceedings began. The erships that the company “does not see the Huffington Post and auto consum- more over several election cycles. bill is intended “to protect the assets of them as part of its dealer network on a er site Edmunds.com, are attempting If Johnson’s case fits the allega- the Federal Government and better as- long-term basis.” While the ax fell on to build a list of General Motors clo- tions, Reginald Hubbard of Metro- sure the viability of automobile manu- Chrysler dealers June 9, GM’s action sures from media sources and reader lina Chrysler-Jeep-Dodge in Charlotte facturers in which the Federal Govern- will take effect at a more deliberate reports. The N.C. Auto Dealers As- seems to refute them. FEC filings show ment has an ownership interest, or to pace as contracts expire. sociation has estimated about 20 GM that, while not as generous as Johnson, which it is a lender.” North Carolina is expected to dealers will close here. Hubbard has consistently supported Rep. Walter Jones, R-N.C., who Democratic candidates, including U.S. voted against the automaker bailout Senate hopeful Erskine Bowles, U.S. bill, is one of the bill’s 147 co-sponsors. Rep. Mel Watt, and former Charlotte He said through a spokesperson that Mayor Harvey Gantt. he is supporting the bill “to protect Visit our Western regional page In fact, much about Metrolina local auto dealers from opaque gov- seems inconsistent with Chrysler’s ernment-controlled entities who are http://western.johnlocke.org stated criteria for closure. Dun & Brad- making quick (and perhaps arbitrary) street estimated the dealership’s an- decisions — without transparency The John Locke Foundation nual sales in the $60 million range; or oversight — about which dealers has five regional Web sites span- Hubbard was Wachovia’s 2004 “En- will be shutting down.” North Caro- trepreneur of the Year” and was recog- lina Democratic Reps. G.K. Butterfield, ning the state from the mountains Larry Kissell, and Heath Shuler are to the sea. nized by Black Enterprise magazine as one of the top African-American car also co-sponsors. dealers in the country. Metrolina was GOP Sen. Richard Burr summed The Western regional page in- located in a new facility and received up the controversy, saying, “This cludes news, policy reports and Chrysler’s own Five Star rating for is another example of the feder- research of interest to people in excellence in customer service. Still, it al government intervening where the N.C. mountains. joined two other Charlotte-area dealer- it does not belong. The govern- ships, which closed their doors on June ment’s role is to promote policies that create jobs, not eliminate them.” It also features the blog The 9. Like many dealers contacted by Burr added: “This would have Wild West, featuring com- Carolina Journal, neither Hubbard nor been far better handled had the White mentary on issues confronting Johnson responded to repeated re- House and its Auto Task Force stayed Western N.C. residents. quests for comment. The state Demo- out of the matter and let the bankrupt- cratic Party also declined to comment, cy courts, free from politics, determine though Brent Woodcox of the N.C. what was good for the companies go- The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 Republican Party stated, “This is why ing forward.” CJ PAGE 8 JULY 2009 | CAROLINA JOURNAL Hodge: North Carolina is Losing in Competition on Tax Policy By CJ Staff “Tax competition is running RALEIGH e often hear North Carolina politicians talk rampant across the globe, about competing with other states. One area in which we are losing the competition and country after country has Wis tax policy. That’s the assessment of Scott Hodge, been slashing their, in par- president of the Tax Foundation in Washington, D.C. Hodge recently spoke to the John Locke Founda- ticular, corporate tax rates for tion’s Shaftesbury Society on the theme, “Falling Be- hind: The Importance of Tax Competition in North the last two decades, while Carolina and the Nation.” He also discussed that topic with Mitch Kokai for Carolina Journal Radio. the United States has actu- (Go to http://www.carolinajournal.com/cjradio/ to ally been standing still.” find a station near you or to learn about the weekly CJ Radio podcast.) Scott Hodge President Kokai: How are we falling behind? Tax Foundation Hodge: You’re falling behind by standing still, much like the United States in the global tax compe- tax rate that’s almost 15 percentage points lower than list of the Business Tax Climate Index are states that tition. Tax competition is running rampant across the the U.S. rate, and it’s no wonder that some of those do without one of the major taxes, such as a personal globe, and country after country has been slashing economies are doing gangbusters. And the workers income tax, as Florida does, Tennessee, and others. their, in particular, corporate tax rates for the last two there are more productive, and they’re going to be Or corporate income tax, as Nevada does not. Wyo- decades, while the United States has actually been stiff competition in the future. ming (and) Montana don’t have corporate income standing still. And every day that we stand still, we taxes. Or some states don’t have a sales tax. could fall further and further behind in this global Kokai: Now we know here in North Carolina The states that are the worst, like the New Jer- tax competition, which is a problem, because we now we’ve seen — in the past few months — unemploy- seys, the New Yorks, the Connecticuts, the Califor- have a global economy. Capital is extremely mobile. ment climb into the double digits. Are the unemploy- nias, are the states that not only have all the major Our workers aren’t. So, as capital flees to the lowest- ment issues that we’re seeing in North Carolina, and taxes, but they have really high rates. And they have tax country, whether it’s China or Poland or Ireland the rising rates across the nation, tied into this whole become, essentially, the France of the United States. or Slovakia or Malaysia, we fall further and further idea of the flight of capital? They are essentially making themselves uncompeti- behind. tive, making themselves bad business climates, mak- Our workers are less competitive globally, and Hodge: There are a lot of factors that go into all ing themselves really economic wastelands. … our companies are less competitive globally, and that of this. Obviously, the banking situation is one, and One of the problems with these states is that ultimately redounds back to the United States econ- the fact that Americans right now, and especially in they’re almost chasing their tail. California is a great omy, overall, making us poorer in a way, as a result. the business community, are nervous. And so they’re example, where every year, they’re trying to jack up not hiring. They’re laying off. They’re trying to get those rates. We’re just going to have another mil- Kokai: I think some people will hear this and ahead of this problem. But certainly, taxes do play a lionaire surtax, or another high tax rate on the rich, say, “All right, I can understand the importance of part (in) this, especially at the margins, and we know and what they’re doing (is) taxing the most volatile competition, but I’d much rather be in the United that certain states have made themselves uncompeti- income sources, and the sources of income that are States than Poland today.” Why is this competition tive by doing nothing. North Carolina is one of them, most readily — or most easy to flee the state. Like important? and if we look at various indices that we have at the capital income, dividends, corporate income, etc. Tax Foundation, we can see that both the structure And so, by every year jacking up these rates, they Hodge: It’s about capital, jobs, and productiv- and the tax burden here is not competitive — not are making their economy weaker and weaker and ity. Right now, we know from a lot of economic re- only not competitive regionally, but not competitive weaker and weaker, which means that it doesn’t gen- search that capital is extremely mobile. It can flow nationally or globally. erate the tax revenues they need to pay for govern- across borders in a heartbeat. We as workers can’t. And that’s what’s increasingly important is ment services, and they get into this vicious cycle. So the real economic burden of corporate taxation that you have to understand that you are not just New York is about to do the same thing. New ultimately falls on workers. In fact, the economic re- competing against your immediate neighbors any- Jersey is about to do the same thing. They seem to be search is showing that as much as 70 percent of the more. You are competing in this global environment rivaling each other on who’s going to have the high- est tax on millionaires. Well, soon enough, you’re not overall economic burden of corporate taxation falls because capital can move so quickly, but your work- going to have enough millionaires to tax. on workers, through lower wages and lower produc- ers can’t. Remember they are the ones that are stuck tivity. Ultimately, that means lower standards of liv- here. They’re the ones that are reliant on investment Kokai: If we don’t do anything about competi- ing. for that job, for that paycheck. And if that capital tiveness of the U.S. tax system, or the state’s tax sys- So in countries that have dramatically slashed flees, like sometimes it has to do, to a more competi- tem over the next 10, 20, 30 years, where will we be? their corporate tax rates, they’ve seen a faster in- tive situation, your workers lose out. crease in the wages paid to workers and their overall Hodge: We’ll be behind. We’ll be behind, look- quality of life. In countries that have stood still, or Kokai: A business is thinking about moving ing at everyone else’s back, as they’re racing for- actually raised their corporate tax rates, they’ve seen its operations, or expanding its operations, or a new ward, becoming more productive. You know, we wages grow at a slower pace. Productivity is slower. entrepreneur is thinking about where to start a busi- worry about competition from China, because it’s Innovation is slower. All of the things that we associ- ness, where to fund some new business, and he looks the largest — one of the largest, and fastest-growing ate with a better quality of life happen slower. So we at the United States and looks at the tax rates here. economies out there — but it’s the small guys out are consigning our workers and our overall econo- What are some of the worst things he sees? there that are trying to compete, using lower tax my to a slower pace of growth because we are doing policy, and that’s the Polands, and the Irelands, and nothing to make ourselves more competitive. Hodge: One of the wonders of the United the Czech Republics, and Malaysias. All of those Over the last couple years, we’ve seen over 50 States is the fact that we have 50 states. We have 50 countries are trying to lure jobs, investment, and major countries cut their corporate taxes, including laboratories for not only democracy, but tax policy. capital away from the high-tax countries, like the our major competitors. We have the second-highest When the Tax Foundation looks at states, we look at U.S., and we’re going to keep falling behind unless corporate tax rate on Earth, second only to Japan. both the tax burden, but also the composition of the we do something quickly. Time is running short, and Meanwhile, Great Britain has cut their corporate tax tax system, and we have what we call the Business they’ve got the solution, and it’s time for us to pay rates. Germany, Spain, China now has a corporate Tax Climate Index. The states that are at the top of the attention. CJ JULY 2009 | CAROLINA JOURNAL PAGE 9

What to Do With Unused School COMMENTARY Vexes Guilford County Officials Kitchen system property consultant Joe Hill es- timated the property to be worth $2.8 Table Wisdom Braxton Craven million — $1.4 million for the building and $1.4 million for the land. ationwide, 1.5 million parental perceptions and reinforcing Elementary has sat Another issue is whether the schoolchildren are acquir- the need for home-based religious school system might prefer to hold the ing their own kind of and moral instruction. A recent vacant since 2004 property as an asset for possible future Nkitchen table wisdom. Federal data USA Today article by Greg Toppo use. The board frequently airs concerns show a record number of American highlighted yet another cultural By Sam Hieb about expanding enrollment and the children have joined the ranks of catalyst: the so-called “mean girls” Contributor need for new schools, not to mention the homeschooled, foregoing bus phenomenon. The data, as USA GREENSBORO the increasing cost of land in Guilford rides and backpacks for an unen- Today noted, support the possibility n abandoned school sits on County. To own land in the middle of cumbered amble down the stairs. that catty school cliques are driving prime real estate in the mid- the city is a true asset, noted system As they study English literature girls out. Nationally, 58 percent of dle of Greensboro. A potential chief operations officer Leo Bobadilla. and math algorithms at the kitchen homeschooled students are girls, up buyerA practically begs Guilford Coun- “This may very well be a site that table, these children are proof posi- from 51 percent in 1999. ty Schools to sell the property, and in you would want to utilize. Having tive of the richness of educational Parents keen on mitigating the turn the school system could use the such an asset provides you with that freedom. effects of substandard academics revenue to help offset state and local flexibility when you get the funding,” The latest numbers — from are also lured by homeschooling’s budget cuts. Bobadilla said. spring 2007 — were published this one-on-one tutoring approach. It’s a no-brainer, right? Not so Board member Sandra Alexan- June in the U.S. Depart- Research is encouraging, fast. der said selling the property to GCD ment of Education’s showing homeschooled For years, the Guilford County would provide “a golden opportunity annual report, The Con- kids fare well academical- Board of Education has been trying to to intervene in the lives of children who dition of Education. The ly compared to public and figure out what to do with Braxton Cra- need it very much, and we’re turning data reveal a marked private school students. ven Elementary our back on it shift in the way American Homeschooled students School, which once again. I see children are educated: also have ample time to has sat empty this as an issue between 1999 and 2007, hone their skills in areas since 2004 when that is a moral homeschooled students of personal interest. Not the board re- imperative.” nearly doubled in num- surprisingly, they are over- assumed con- The school ber. In North Carolina, represented in highly com- trol from a local board’s attor- homeschooling has grown KRISTEN petitive national geogra- nonprofit that ney cautioned even faster. State figures BLAIR phy and spelling contests, had leased the that “there is show the number of as the Hoover Institution’s building. absolutely no homeschooled students Richard Sousa has pointed The school assurance that more than tripled between 1999 and out. This year was no exception: sits on prime at the end of the 2007-08. Tim Ruiter, a 12-year-old Virginia real estate in outside bid pro- Homeschooled kids still com- homeschooler, placed second in the G re e n s b o ro ’ s cess, the highest prise a tiny fraction — 2.9 percent 2009 Scripps Spelling Bee. Lindley Park bidder will be nationally, and 4.4 percent in North Despite its appeal, however, neighborhood, someone who Carolina — of the overall K-12 homeschooling is not – and never making it a will use it to do population. But the homeschooling will be – a good fit for everyone. likely candidate anything that movement’s explosive growth and Its costs alone, in time and money, for infill devel- you believe to popularity have cemented its status are prohibitive for most families. opment in line be a high and as a credible, if not mainstream, Still, more parents are attempting with the city’s moral purpose.” educational choice. to juggle it all: one-third of home- smart growth Overgrown shrubbery nearly obscures the Nonethe- What’s fueling the home schooled students nationwide have policies. name of the long-empty school. (CJ Photo less, Alexander by Sam Hieb) education trend? Most homeschool- two parents in the labor force. In addi- offered a mo- ing parents are motivated, at least I know something about tion, Guilford Child Development — tion to sell the property to GCD for in part, by a desire to protect their this. For the past two years, I have the nonprofit that occupied the school $860,000. Fellow board member Kris children from corrosive outside homeschooled my two bright and for 17 years — has pursued the school Cooke then made a substitute motion influences. According to federal sometimes obstreperous children property aggressively to house its ear- to lease the property to GCD, which data, a whopping 88 percent cite while working part-time. This com- ly childhood education program. failed by a 6-5 vote. concern about the environment of bination has proved challenging. Yet government rules may pre- The board may at some point other schools – specifically, issues Yet these years at home have been vent the school system from selling the authorize a sale to GCD, even though of school safety, drug use, or peer unequivocally rich and worthwhile. property to GCD, even it if wants to. another bidder may offer more for the pressure – as one important factor As a veteran parent with children The school system can’t offer the par- property. in their decision; for 21 percent, this from public, private, and now, cel for sale direclty to any party — it Board member Paul Daniels said first must declare the land and school he failed to see the logic behind letting is the single greatest reason they home-based schools, I also genuine- building “surplus property” and turn the dilapidated property remain un- homeschool. Thirty-six percent of ly understand the value of educa- them over to the Guilford County used in the face of the system’s budget parents homeschool primarily to tional freedom. I have lived it. Board of Commissioners. And even problems. provide religious or moral instruc- This August my children will though commissioners supported a “[W]e just spent a whole bunch tion, while another 17 percent do it head back to regular school. They’ll sale to GCD at a June meeting, they of time … talking about how we don’t mostly because they’re dissatisfied do so having learned a lot – both would have to solicit open bids for the have any money for maintenance, and with the academics at other schools. concrete and intangible – at my property, which by law would go to we’re holding onto a piece of property Why are some parents so kitchen table. Are they any smarter? the highest bidder. that’s deteriorating every single day troubled by our modern-day school Maybe. But I know they’re wiser. CJ GCD might not offer as much as with the thought that some day we’ll culture? Highly publicized reports a commercial developer. The nonprofit have the money to fix it up,” Daniels of gangs, drug busts, and cheating Kristen Blair is a North Carolina offered $860,000 for the property, but said. CJ scandals have taken a toll, shaping Education Alliance Fellow. PAGE 10 JULY 2009 | CAROLINA JOURNAL Easley’s Education Legacy in Trouble as Fiscal Problems Grow

high school students to take both high school and college-level classes on Some of his most the campus of a local community col- lege or university, and graduate in visible programs are five years with a high school diploma and either an associate’s degree or two targeted for reduction years of college credit. The program has drawn solid reviews from educa- By Jim Stegall tors, parents, and students alike, and Contributor was one of the few areas of the budget RALEIGH actually to see an expansion planned ix months after leaving office, for- for the coming years. There are now 60 mer Gov. Mike Easley’s legacy as Learn and Earn campuses in operation an “education governor” is begin- in the state. Sning to crumble under the twin pres- An Easley administration official sures of an economy in recession and interviewed by Carolina Journal was legislative indifference. Some of his quick to point to Easley’s efforts in en- key education initiatives, popular with suring teacher quality as a bulwark of budget writers and educators alike his education legacy. during times of plenty, have been tar- Much of the perception of im- geted for reduction or outright elimi- provement stems from the unusually nation as the economy forces legisla- high percentage of North Carolina tors to prioritize. teachers who have achieved certifica- Of Easley’s top education initia- tion from the National Board for Pro- tives, one is on the brink of elimina- fessional Teaching Standards. Since the tion, another is poised to be absorbed Observers say former Gov. Mike Easley’s strong-arm approach will prove less effec- latter days of the Jim Hunt administra- by a pre-existing federal program, and tive in the long term that former Gov. Jim Hunt’s more collegial approach to lining up support for legislation. (CJ file photo) tion, the state has paid the $2,500 ap- the future of several others is unclear. plication fee for teachers who wish to Only one has established itself as a to- constitute a step back from the high But the results were disappoint- become National Board-certified and a tal success. standards that earned More at Four its ing. House budget writers recom- 12 percent salary bonus to those who A long-time education lobby- high ranking in exchange for a small mended canceling the program this achieve that certification. ist who did not want to be identified potential cost saving that may never year, and the Senate seemed poised to However, to date there has been recalled that Easley “had an uncanny materialize.” go along. In presenting the recommen- no scientific study demonstrating con- ability to get his stuff through the leg- Easley was an enthusiatic propo- dation to the House Appropriations clusively that National Board-certified islature. … It’s quite interesting in light nent of small class sizes, especially in Subcommittee on Education in May, teachers are any better at raising stu- of recent developments to see (his edu- the early grades. As with More at Four, Rep. Rick Glazier, D-Cumberland, re- dents’ test scores than other teachers. cation programs) unravel.” he was able to persuade the legislature ported that students whose teachers Comparing the styles of Easley Shortly after assuming office to appropriate general fund money had worked with literacy coaches ac- and Hunt, the education lobbyist said, Easley announced an ambitious pre- to get the program started, with the tually performed more poorly on read- “(Easley’s) leadership style was so school education program known as promise that lottery revenues would ing tests than those whose teachers dramatically opposite that of his pre- More at Four. With his party in control pay for it later on. had not. decessor. When Hunt sold a program, of the General Assembly, the popular He succeeded in lowering the Of Easley’s major education ini- it stayed sold.” Easley’s strong-arm new governor was able to push the student-teacher funding ratio to 18:1 tiatives, the Learn and Earn early col- approach, while effective in the back program through despite a recession in kindergarten through third grade, lege program is clearly the most popu- rooms, may have brought only tempo- and suspicions that it would needless- but with no apparent effect on student lar and successful. This program allows rary victories. CJ ly duplicate the existing state Smart performance. A John Locke Founda- Start program. tion study in 2006 concluded that class Over the years More at Four grew size reduction yielded no gains in stu- Locke, Jefferson and the Justices: into a $171.6 million program serv- dent achievement. When the economy ing about 32,000 North Carolina pre- turned sour in 2008, class size was one Foundations and Failures of the U.S. Government schoolers. The program is designed of the first areas legislative leaders to prepare at-risk 4-year-olds to enter turned to for savings. school. Studies show that it does result Lloyd Thrower, executive direc- By George M. Stephens in better student performance, though tor of the North Carolina Principals the benefits do not appear to last be- and Assistant Principals Association, Preface by Newt Gingrich yond elementary school. says that Easley’s class-size reduction This year the Senate budget program “was the biggest farce in the “This book is about American called for More at Four to be combined world. He would give you the money politics and law; it is also about with Smart Start, essentially eliminat- (to hire more teachers) but then de- the roots of the Contract with ing it as a stand-alone entity. House mand reversions.” In fact, few North budget writers wanted to do the same, Carolina K-3 classrooms ever achieved America. A logical place to find but decided that there was not enough the 18:1 ratio sought by Easley; accord- the intent of the Founders is in time left to work out the details of com- ing to the General Assembly’s Fiscal Locke, [and] Stephens makes bining the programs. The House opted Research Division, the average for this a contribution to highlighting to cut $10 million from More at Four past school year was 21:1. this.” this year and put off consolidation un- In 2006 the centerpiece of Eas- Newt Gingrich til next year. ley’s education agenda was the intro- Former Speaker The plan prompted an outcry duction of literacy coaches. Literacy U.S. House from Dr. Bill Harrison, chairman and coaches work with teachers to help of Representatives CEO of the State Board of Education. them integrate reading activities into In a statement posted on the Depart- their specific content areas, with a ment of Public Instruction’s Web site, goal of strengthening students’ overall Harrison said “Such a move would reading skills. Algora Publishing, New York (www.algora.com) JULY 2009 | CAROLINA JOURNAL PAGE 11 ‘Double Dippers’ on Top of Char-Meck Schools’ Job-Cut List classroom, but it’s conversely been explained. “The funding wouldn’t be tirement — up to 11.7 percent of a their undoing in the current crisis. there anyway.” teacher’s salary — and must often pay Rehiring retired “If you think about it this way, Even so, the decision to target retirees higher salaries than it would these are folks who have already cho- these teachers was not an easy one. younger teachers. teachers a luxury sen to retire and collect a pension,” Reports in The Charlotte Observer de- “There is a disincentive for school said Trent Merchant, at-large member tailed the effect that these reductions systems to re-employ retirees,” ex- in times of plenty of the Charlotte-Mecklenburg Schools have had on students, parents, and plained Terry Stoops, education policy Board of Education. While noting other employees, with accusations of analyst at the John Locke Foundation. By Colleen Calvani that cuts to teach- administrators im- In addition to the pension costs Contributor ing staff are never properly laying off and higher salaries, rehiring retirees CHARLOTTE easy to make, he teachers in front of can sometimes mean sacrificing the eginning the unpleasant busi- explained that Retired teachers their students. development of younger teachers. ness of balancing its budget dur- “there was an ele- “I think ev- “We think it’s important to keep ing the current fiscal crunch, in ment of humanity bring extra erybody under- as many of our teachers who are BMay Charlotte-Mecklenburg Schools in it. It’s a little bit stands that it’s a younger (or) who may be early or half- told 304 teachers they wouldn’t be re- easier to cut some- experience to difficult budget way through their careers,” Merchant turning to the classroom in the fall. one where this is situation and sac- said. “They may not be as outstanding A district press release said essentially a sec- school systems, rifices have to be as some of these rehired retirees when more than 230 were let go because of ond income (than but are ‘easier’ made. But every- it comes to performance, but these are low performance or licensure issues. to cut) someone body believes that people who are still growing and de- But administrators identified another where this may be targets for first cuts exceptions should veloping and who are going to be with group as vulnerable: retired educators (her) only source be made” for fa- us for the next 10, 20, 25 years.” who have been rehired by the district of income, or in- in downturns vored teachers, But these reasons are often out- to fill teacher shortages or meet other come that’s going explained Molly weighed, in a good economy when needs. to raise a new fam- Griffin, chairper- CMS’ budget may rise as high as $1 The 2009-10 district budget, ily.” son of the CMS billion, by the benefit of re-employing spearheaded by Superintendent Pe- The state law, requiring retirees Board of Education. a veteran, Stoops said. ter Gorman, includes $51.1 million in to be out of work for six months before Though Griffin’s constituents “It also makes sense (on an edu- “reductions and redirections.” On the being rehired by a district, has been may be particularly empathetic, some cational/teacher quality level) to re- chopping block are approximately 60 extended each time it has been up for teachers decided not to go quietly into employ a retired teacher who has a additional teaching positions and 1,000 a vote since 2001. But this year is dif- the night. In June, small protests of great deal of experience, knows the other jobs, though the final numbers ferent in so many ways, Merchant ex- parents and a few teachers sprung up curriculum, and/or is familiar with the remain in flux. Rehired retirees are ex- plained. to contest the cuts. operation of the school or school sys- pected to take the brunt of those cuts. The law, set to expire Oct. 1, has But the protests fall on deter- tem,” he said. In 2001, the General Assembly al- been the subject of much speculation mined, though not unsympathetic, Merchant agrees that these teach- lowed school districts to rehire retired among educators in recent months as ears. “(We’ve) lost a lot of talent,” ers bring real benefits to school dis- teachers; in return, the retirees could talk continues of moving up the sun- Merchant said of laying off the retired tricts. “Principals ought to have the collect their full pension benefits. The set to July. For now, the bill is stuck in teachers. “But from an operational and right to hire who they want to hire,” he state Department of Public Instruc- committee and looks to be headed to- financial and strategic standpoint, it added. tion says nearly 2,100 retired teachers ward an October death. was the right decision. … It was the If the law allowing the employ- worked in North Carolina schools un- Given the state’s current fiscal correct thing to do in order to build ment of retirees is allowed to expire, der this arrangement during the just- state, “we did not believe the legis- and sustain a strong organization.” retired teachers can continue to teach finished academic year. In good times, lature was going to be inclined to re- Though CMS is not responsible — but they could not collect 50 percent this “double dipping” allowed many new that provision, (that) they would for paying the veteran teachers’ pen- of their pension benefits any year they experienced teachers to return to the just allow that to expire,” Merchant sions, it does contribute to their re- return to the classroom. CJ PAGE 12 JULY 2009 | CAROLINA JOURNAL

Innovations embraced in Guilford, Char-Meck Wake Parents Look To Other N.C. Districts For Alternatives By Karen McMahan percent of students qualifying for free teacher effectiveness and quality, along “Teacher engagement is huge. Contributor or reduced-price lunches, rising from with home-field advantage, improves Many teachers provide their cell phone RALEIGH 30 percent about a decade ago. student achievement,” Holcombe numbers to students, so students get rustrated by what they consider Mission Possible provides extra said. Home-field advantage is a policy extra help whenever they need it,” the destabilizing and disruptive pay to experienced teachers and princi- enabling students to remain in their Wong said, “and school staff make effects of busing, reassignment, pals who work in the neediest schools neighborhood schools. “Students who home visits.” While only 40 percent of Fand mandatory year-round calendar and produce measurable, significant are not plucked up and moved from low-income students nationally ma- policies, some Wake County parents improvement in student achievement. school to school have significantly triculate to college, 85 percent of KIPP- are pushing school officials to consider Math teachers, for example, can earn higher test scores than those who are sters do. alternative ways to address students’ an extra $18,000 per year. not,” Holcombe added. KIPP schools measure perfor- flagging academic performance. Teachers receive mance through national tests measur- Parents have cause for concern. two types of incen- KIPP model ing students’ grasp of subject matter, Test results for 2007-08 from the N.C. tive pay: recurring Since its launch such as the Stanford Achievement Test, State Board of Education showed that recruitment/reten- in 1994, KIPP has ex- and state tests comparing students to 1,659 public schools, 68.8 percent, tion paid monthly panded to 66 schools their peers, similar to North Carolina’s failed to meet Adequate Yearly Prog- and a performance nationwide, includ- End of Course and End of Grade. Na- ress (AYP) required by federal No incentive awarded as ing one in Charlotte- tional percentile rankings for students Child Left Behind standards. Sixty a single payment af- Mecklenburg and in KIPP middle schools over four years schools were omitted because they ter the teacher’s prior two in Gaston Coun- rose from 41 to 80 in mathematics and lacked sufficient data to determine year’s performance ty. “Over 95 percent from 31 to 58 in reading. their status. Of the state’s 1,134 Title I has been determined. of KIPP students are Resisting change schools, so designated because a high The program also of- African-American percentage of students are eligible for fers structural sup- or Latino, and more Growing evidence that a number free- and reduced-price meals, 66.8 port, specialized than 80 percent of of innovative public school models are percent failed to meet AYP. training, and profes- KIPP students are eli- raising student academic performance, In 2007, North Carolina released sional development gible for the federal especially in schools with high percent- its first-ever four-year cohort gradua- to teachers. free and reduced- ages of economically disadvantaged tion rate. Only 68.1 percent of first-time Prior to the pro- price meals pro- and minority students, has some par- high school ninth-graders in 2002-03 gram’s implementa- gram,” cited the 2008 ents asking why Wake County relies graduated in four years or less. The tion, “one of our high KIPP Report Card, and “many stu- on busing and reassignment, which rates were worse for Native American schools went an entire year without dents who enter for their first year are haven’t delivered improvements. (51.1 percent), Limited English Profi- a single certified math teacher, some two or more grade levels behind their Wake County school board mem- cient (54.6 percent), economically dis- (schools) didn’t have a math teacher at peers in more affluent communities.” ber Ron Margiotta said he and some advantaged (55.3 percent), and black all, there was a shortage of English and In a telephone interview, Bran- other members have urged the board students (60.0 percent). elementary teachers, and the highest- don Wong, a national KIPP spokesper- to consider alternatives. “For whatever Two models garnering attention poverty schools had inexperienced son, explained that “KIPP schools have reason, Wake thinks it knows better. are the Mission Possible program, fo- teachers,” Holcombe said. high expectations for student achieve- The argument that these programs cusing on differentiated compensation Since its launch three years ago, ment and a set, rigorous college prepa- cost more is not true. We can use Title and performance pay for teachers, and the teacher attrition rate has dropped ratory curriculum. KIPP schools have I and other grants” for financing, said KIPP (Knowledge Is Power Program), 23 percent at Mission Possible schools, longer school days, up to 9 hours. Both Margiotta, “but Wake has not applied, a national network of free, open-en- and the rate of Mission Possible staff parents and teachers must sign a com- and that’s why some parent groups are rollment, college-preparatory charter transferring to non-Mission Possible mitment to excellence form when a working to elect school board members schools. school positions or other districts has student enrolls.” who are receptive to other models.” CJ fallen dramatically. Mission Possible Teacher quality, measured by At a May 11 public forum on edu- data derived from SAS-EVASS, has cation in Cary, Dr. Amy Holcombe, ex- similarly risen by as much as by 78 ecutive director of talent development percent. After deriving a teacher’s ef- for Guilford County Schools, discussed fect on student performance, the effect Visit our Wilmington regional page Mission Possible, a comprehensive is compared to all teachers in the sys- teacher incentive program launched in tem who taught the same course in the http://wilmington.johnlocke.org the 2006-07 school year to raise teacher same school year. quality and effectiveness and improve In a telephone interview, Hol- The John Locke Foundation student achievement. combe explained that EVASS enables has five regional Web sites span- Initially, 20 schools with the the school system to track not only a ning the state from the mountains highest teacher turnover rates (77 per- student’s test results from grade to to the sea. cent annually in core subjects at some grade over subjects but also teacher, schools), high poverty (more than 75 school, and district effects on the rate of percent eligible for free or reduced- individual student academic progress. The Wilmington regional page price lunches in some schools), and a EVASS, purchased by the N.C. Depart- includes news, policy reports low AYP and ABC status were selected. ment of Public Instruction in 2007, is and research of interest to The program has since expanded to in- free to all school districts in the state, people in the coastal area. clude 30 schools. though only a few systems are using it. While Guilford’s racial and eth- The achievement gap between It also features the blog Squall nic demographics are similar to those students in Mission Possible schools Lines, featuring commentary of the Wake and Charlotte-Mecklen- versus those in non-Mission Possible burg systems, Holcombe stressed that schools has been reduced. In 2008, Al- on issues confronting coastal Guilford also has been challenged by gebra I students in Mission Possible N.C. residents. the loss of major industries. This has schools outperformed those in non- fueled a startling rise in the school sys- Mission Possible schools. tem’s poverty rate, with more than 53 “Our studies and others show The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 JULY 2009 | CAROLINA JOURNAL PAGE 13

It’s Summertime, and the Reading Is Easy — Campus Briefs North Carolina universities selected the following books as And Sometimes Controversial for Colleges freshman reading: • Appalachian State University: Three Cups of Tea by Greg Morten- By Jenna Ashley Robinson can institutions. Ehrenreich concludes immigrants. Contributor son and David Oliver Relin. An that corporate America makes it im- Moreover, many of the books autobiographical story of Mortenson’s RALEIGH possible for the working poor to obtain chosen by universities are far too easy. failed attempt to climb Mt. Everest, magine that you are taking a multi- a “sustainable lifestyle.” Three Cups of Tea, a popular pick this seven weeks of recovery in a small ple-choice test. Which one of the fol- The highly controversial 2002 year, is a simple parable about hard Pakistani village, and his return to lowing is not like the others: Nickel choice at UNC-CH, Approaching the work and “giving back” to less privi- build a school for the village children. Iand Dimed; An Inconvenient Truth; Ap- Qur’an: The Early Revelations attempted leged people, but nothing more. Fans • Davidson College: Old School by proaching the Qur’an; The Oresteia. to whitewash Islam’s violent image in of the book, which is about a moun- Tobias Wolff. A boy on scholarship The answer: The Oresteia. The first the wake of the 9/11 terror attacks less taineer who helps a Pakistani village at a New England prep school in the three books are recent selections for than a year earlier. build a new school, have called it a early 1960s struggles to be a writer North Carolina universities as summer Al Gore’s An Inconvenient Truth, “remarkable adventure” and a “thrill- and to overcome insecurity. reading for incoming freshmen. The selected by Elon University and Mer- ing read,” but it offers little challenge Oresteia, a trilogy of tragedies by the edith College, is little more than a col- or intellectual stimulation for college- • Duke University: The Brief Won- Greek playwright lection of pic- bound students. drous Life of Oscar Wao by Junot Díaz. The story of a nerdy Domini- Aeschylus, was a tures, graphs, Indeed, summer reading choices can-American who yearns to write summer reading and powerpoint rarely fulfill the universities’ stated science fiction, fall in love, and break for an advanced Summer reading in slides, more missions. At UNC-Chapel Hill, the his family curse. placement class suited to mid- summer reading program is designed at a Charlotte high school dle school than to “enhance participation in the intel- • East Carolina University: Three high school. the first year of lectual life of the campus.” But Cuad- Cups of Tea by Greg Mortenson and advanced-placement David Oliver Relin. The lesson: college. Even ros’ A Home on the Field — another North Carolina courses is more de- scientists who feel-good morality story — does little • Elon University: A Thousand universities do believe that hu- to prepare students for the intellectual Splendid Suns by Khaled Hosseini. A not choose books manding man activity is rigors of college. novel following the tumultuous lives based on literary causing climate In contrast to this dilution of of two Afghan women, spanning time merit, the pres- change have intellectual content, high school AP from the 1960s to present day. ence of universal panned its sim- teachers have chosen works of clas- • Guilford College: Saints at the themes, or as a taste of the rigorous plistic treatment of a complex issue. sic literature, from ancient Greece to River by Ron Rash. The story of a academic experience that awaits col- Duke’s choice this year, Junot 20th century America. While students small town torn between recovering lege students. Instead, they choose Díaz’s The Brief Wondrous Life of Oscar read The Oresteia in Charlotte, those the body of a drowning victim from best-sellers, political rants, or books Wao, is another example of the race, at a North Raleigh school read Shake- the local river and keeping environ- that view every human event through class, and gender lens that faculty love. speare’s Macbeth and Aldous Huxley’s mental protection laws in place. the lens of race, class, gender, or sexual The book is framed as a part of the “the Brave New World during the summer orientation. Summer reading in high- Dominican-American experience” in- before their 12th-grade AP English • North Carolina State University: Three Cups of Tea by Greg Morten- school advanced-placement courses is stead of simply focusing on human class. Other summer reading choices son and David Oliver Relin. more demanding and more meaning- experience or even post-adolescent ex- in North Carolina high schools include ful. perience. Even UNC-Chapel Hill’s se- Alice Walker’s The Color Purple, Na- • UNC-Asheville: Fahrenheit 451 by Consider the university choices lection this year, Paul Cuadros’ A Home thaniel Hawthorne’s The Scarlet Letter, Ray Bradbury. A dystopian novel that mentioned above. on the Field, telling the story of a Siler and (my personal favorite) Jane Aus- presents a future American society in Barbara Ehrenreich’s Nickel and City, N.C., soccer team, focuses unnec- ten’s Pride and Prejudice. which reading is outlawed. Dimed, Chapel Hill’s choice in 2003, essarily on the ethnicity of the soccer In my senior AP English course at • UNC-Charlotte: Listening Is an was an ill-concealed assault on Ameri- team members and their identity as Enloe High School in Raleigh, we were Act of Love by David Isay. A literary required to read Joseph Conrad’s Heart work showcasing personal narratives of Darkness and take extensive notes told by everyday citizens in hope of on the book’s symbols, motifs, and sharing with future generations. themes. I read more classical literature in two years of AP English than I did in • UNC-Chapel Hill: A Home on the Field by Paul Cuadros. A story of four years of university education. perseverance and success by the Many AP English readings are Latino high school soccer players of chosen from the literary “canon.” The Siler City, N.C. Oresteia, in particular, challenges stu- dents to think about universal topics • UNC-Greensboro: My Freshman such as temptation and virtue, justice Year: What a Professor Learned by and mercy, freedom and personal re- Becoming a Student by Rebekah Nathan. A professor’s attempt to dis- sponsibility. Works in the canon en- cover what today’s undergraduates dure for centuries because they teach are really like. students about human dilemmas and how fictional characters face them. • UNC-Wilmington: A Long Way College summer reading as- Gone: Memoirs of a Boy Soldier by signments should continue students’ Ishmael Beah. The story of a 13-year exploration of the classics while also old soldier in Sierra Leone. introducing them to college-level lit- • Western Carolina University: erature and analysis. Three Cups of Tea by Greg Morten- If high school seniors can handle son and David Oliver Relin. CJ Macbeth, so can North Carolina’s col- lege students. CJ Compiled by Jenna Ashley Robinson, campus outreach coordina- Jenna Ashley Robinson is campus tor for the John W. Pope Center for outreach coordinator for the John W. Pope Higher Education Policy. Center for Higher Education Policy. PAGE 14 JULY 2009 | CAROLINA JOURNAL

Opinion N.C. State Scandal Reveals Aura of Academic Entitlement hat happened at North Three ingredients — political the funds would keep coming in. been forced to resign for misconduct. Carolina State University? pressure, an atmosphere of privilege Ordinary people live in a world where The chancellor, provost, and and ease, and inadequate transpar- Privilege and entitlement they face serious penalties for ethical Wchairman of the board of trustees were ency — helped create the unsavory The News & Observer published lapses. all forced out because of circumstanc- conditions at N. C. State. Let us exam- online a speech by former provost Transparency es surrounding the hiring and promo- ine each one. Larry Nielsen given before the N. C. tion of Mary Easley, the wife of the Political pressure State faculty in 2007. In some ways, public universi- former governor. The usually placid Nielsen reminded the faculty ties are transparent. When formally halls of North Carolina’s flagship A number of e-mails have been that they belong to “one of the most asked, for example, North Carolina technical university became the place made public indicating that in 2005, respected and trusted professions in public universities must reveal faculty of a sordid soap opera of deceptions, an aide to then-Gov. Mike Easley initi- the world.” Faculty members work and administrative salaries, supply cover-ups, sweet- ated a process to create a new job at “in a truly benign administrative set- course syllabi, and produce historical heart severance N.C. State for Mary. James Oblinger, ting” and have “an incredible level of e-mails (such as the ones that skew- deals, and incrimi- N.C. State’s chancellor at the time, job security.” ered Oblinger). nating e-mails. Did snapped to attention and quickly ac- Indeed, faculty life at N.C. Unfortunately, some of the N.C. State simply commodated the first couple. State — and many other universi- figures are virtually meaningless. The happen to hire But there’s good reason for ties — looks cushy. According to the Department of Education asks for a bunch of bad Oblinger’s compliance. A public re- American Association of Univer- “instructional costs,” for example, but apples? search university sity Professors there is no clear description of how to The answer like N.C. State (AAUP), in the arrive at them. to that question depends heavily 2008-09 academic More fundamentally, few people is no. Money, politics, JANE on state funds, year, on average are demanding these figures, because “One rarely and a governor and privilege a full professor at few are aware that serious problems encounters a venal SHAW has considerable N. C. State made exist in academia. Education itself is person in higher influence over have been $114,000 in sal- revered, and many alumni remember education,” says state appropria- ary, or $140,000 their college experience in the warm Robert E. Martin. tions. As a result, allowed to fester including benefits. glow of nostalgia. An emeritus professor at Centre Col- Mary Easley This is for a nine- To the public, the university is lege in Kentucky, Martin has spent ended up being hidden from view month academic composed of truth-seeking teachers more than 30 years in academia, in- hired as executive- year (including and thinkers who eschew the self- cluding large state universities. “Theft in-residence, with a long Christmas serving goals of the outside world. is rare in the ivy halls,” he wrote in the job of managing a seminar series, break). Unfortunately, this false perception a recent paper about higher educa- at a salary of $90,000. Finding a way The buzz surrounding Nielsen’s has allowed money, politics, and tion. “Most people working in higher to do that was not so difficult in the resignation stemmed more from his privilege to fester, hidden from view. education are dedicated, sincere, and heady days of 2005, when the state generous severance package than his The question is whether the conscientious.” was growing and funds were ample. role in bringing in and promoting scandal at N.C. State is something un- Martin observed that people in Oblinger was a star fundraiser Easley. He will keep his provost’s sal- usual or, rather, a glimpse of the kind higher education “are also human during his time atop N.C. State. The ary of $298,700 for six months, with- of behavior that is typical around the beings subject to normal human fail- school has prospered, as evidenced by out any obligations. When he returns country. I for one don’t see any reason ings.” And when you place normal its growing Centennial Campus and to teaching, his pay will decline to to believe that it is unique. CJ human failings in the world of the its new veterinary school. By accom- $156,000, and he will teach one course. public university you may have the modating the Easleys, Oblinger and To most people, there is some- Jane S. Shaw is the president of the makings of a scandal — once an out- ousted Provost Larry Nielsen may thing galling about maintaining John W. Pope Center for Higher Educa- sider starts taking a careful look. simply have been making sure that lucrative salaries for those who have tion Policy in Raleigh. JULY 2009 | CAROLINA JOURNAL PAGE 15

Opinion Actions of N.C. State Chancellor Were All Too Predictable y many accounts, James reputation. The faculty typically ask outward trappings of excellence that After all, the qualities that made Oblinger was an exemplary for two things: they want their jobs translate into national prestige — it him a successful chancellor are not the chancellor. Even as he was protected, and they want the adminis- was recently named the 12th-best edu- qualities of a great moral leader. His forcedB to resign in the wake of the tration to stay out of their way. cational value in public universities by background left him unprepared to do Mary Easley scandal, he was praised Both trustees and faculty are Kiplinger’s. Enrollment and teaching the right thing. and defended by the very men who capable of bringing down a chancellor. and staff jobs increased, pleasing the So where does State go from forced his resignation. Therefore, to thrive on the job, a chan- faculty. here? Given the chancellor’s failure to Still, his legacy as the head of cellor must be able to walk a tightrope Oblinger was also a lifelong act with integrity, given the culture of N.C. State University will be one of between these two widely different academic. Academia, for tenured fac- privilege that has been flourishing for bringing shame to the university, for constituencies (along with the press ulty, is “a truly benign administrative many years, and given the economic lying and covering up his earlier ac- and politicians as well). setting” and has “an incredible level downturn, perhaps it’s time to alter tions. of job security,” according to former the job description of chancellor. So why did The right kind of person Provost Larry Nielsen (also implicated this man consid- Moral examples This calls for an affable, non- in the Easley scandal). ered to be such an confrontational individual who makes Perhaps it’s time to appoint outstanding uni- Soft environment friends quickly, somebody who can chancellors who will lead and pro- versity administra- coax important (and self-important) This soft environment is not the vide upstanding moral examples, not tor turn out to be people to do his kind in which academic insiders who can raise funds such a bad leader? and appease the various campus inter- or her bidding people regularly And more impor- ests. The job now calls for administra- without causing have to suffer the tant, what does his tors who have the fortitude to peer offense. Perhaps it’s time consequences of fall suggest for the JAY into all the dark, dank corners where He or she difficult decisions, future? SCHALIN the sweetheart deals and sinecures must also be in for chancellors or face character- Much of the grow, and who will stand their ground answer lies in the general agree- who are moral building chal- when the light of transparency causes nature of a chan- ment with the lenges. People in the fur to fly. cellor’s job, as it is defined today. The worldviews of examples rather academia become The school not only has suf- general university environment is the trustees and than fundraisers comfortable with fered a crisis of integrity, but there is a another important contributing factor. faculty. The trust- their perks and new economic reality as well. Instead But most of all, it was a crisis of ees usually want privilege, and of a fundraiser, the school needs a character. to aggrandize are quick to avert dollars-and-cents individual who is A chancellor plays the central the university — more money, big their gaze from what they don’t want not accustomed to academic privilege role in a university’s three-part shared new buildings, more prestige, and so to see. and moral relativity, somebody who governance system. On one side are on. University faculties are usually In this environment, it is not will cut costs and gore a few sacred the trustees (and in the UNC system, ardently liberal politically — even if surprising that Oblinger was so quick cows. The time is right to forget the the president and general administra- a chancellor disagrees with them, it is to comply with Gov. Mike Easley’s re- old model of a chancellor and to look tion as well), and on the other side are to his or her benefit just to maintain quest to hire his wife. It should be no outside the system for leaders with the faculty, who have staked out own- campus peace. great shock that he not only publicly integrity to guide our youth. CJ ership of the most crucial component This job description of chancel- and privately denied any involvement of a university — the curriculum. lor fit Oblinger well, and he excelled with Mary Easley’s employment, but Most chancellors today receive at it. He was a star fundraiser; new then rewarded his provost, Larry Jay Schalin is a senior writer for the two mandates from the trustees: raise buildings arose on the new Centen- Nielsen, with a sweetheart retirement John W. Pope Center for Higher Educa- money and enhance the school’s nial Campus. N.C. State had all of the package for taking the fall. tion Policy in Raleigh.

Could Changes in Testing Explain Why So Many Students Attend College?

“Griggs v. Duke Power: Implications for College Credentialing” by Bryan O’Keefe and Richard Vedder, explores this topic.

To receive your free copy, call 919.828.1400 or email [email protected].

Visit the Pope Center online at popecenter.org for additional reports and studies PAGE 16 JULY 2009 | CAROLINA JOURNAL

Town and County

Cumberland water City Officials Talking Trash in Greensboro Cumberland County faces A large group of residents who live near the landfill significant water needs over the showed up at the meeting to speak out against its reopen- coming years, including extend- Black residents near White Street ing, telling council members about the adverse effects of the ing public water service to rural smell and truck traffic along Nealtown Road, which runs portions of the county with con- landfill say reopening the site perpendicular to White Street. In addition, a couple of can- taminated wells and failing septic didates for the upcoming municipal election spoke out. tanks. To address them, a consul- would be ‘environmental racism’ “It is my hope that Greensboro will … not (be) known tant has recommended a 20-year, as a city that flip-flops on life-altering decisions,” said Ryan $70 million plan to the county, re- By Sam A. Hieb Shell, who is running for a District 2 council seat. “But that ports the Fayetteville Observer. CONTRIBUTOR is exactly where we’re heading if you overturn a previous A key aspect of the outline GREENSBORO council decision to reopen White Street to municipal waste.” by Asheboro professional engineer here’s some serious trash-talking going on in Greens- “The people have spoken, and (we) heard them speak Hiram J. Marziano is obtaining fi- boro. the first time, after they struggled to get a unanimous vote,” nancing from the U.S. Department For the second time in just over a year, the city said Luther Falls, who’s running for the District 1 council of Agriculture, which would make isT debating whether to reopen the White Street municipal seat. “All council members at that time voted to close it, and the project much more affordable. landfill to household garbage. Opponents who live near the it should not be reconsidered, for economic reasons or any Without federal assistance, Mar- landfill say the smell and truck traffic harm their quality of ziano estimates the average water other reasons.” life, while the main proponent calls the original closure of Mayor Yvonne Johnson and council members Goldie bill would be $78 a month; USDA the landfill the “worst eco- could cut that in half. Wells and Dianne Bellamy- nomic decision” since the Marziano noted that his cost Small vociferously opposed city was founded. estimates may be low as they do reopening the landfill, and East Greensboro resi- not include inflation. the debate became heated at dents don’t want the nearby “Some of us won’t be here times. when you get this whole thing landfill to expand, but with- “I don’t want our up and running,” Marziano told out access to the landfill, the council to be thought of as a a gathering of local officials. “But city must transport its trash council that would consider you have to start somewhere.” to the Uwharrie Regional jeopardizing our residents Reaction from county com- Landfill in Montgomery and doing it for money rea- missioners to the report was posi- County. The cost? City sons,” Wells said. “We want tive. Councilman Mike Barber to be a city that sticks to- “We’ve been struggling with says Greensboro is paying gether and loves each other, this long before I became a com- an additional $7 million to and we’re not doing that.” missioner,” said Breeden Black- $14 million a year in trans- Council member Rob- well. portation costs. bie Perkins noted that he “The numbers are staggering, The city manager’s of- was on the council that vot- but you’ve shown us the light at fice disputes that estimate, ed to close White Street to the end of the tunnel.” but has concluded the city municipal waste and, at the could save $2.9 million an- time, it “felt like the right nually by reopening the thing to do.” Char-Meck water grants landfill, which some experts “I don’t mind this The Charlotte-Mecklenburg say has an additional 50- council having a discussion Utility Department is seeking a year capacity. about anything, but I do White Street landfill $500,000 state grant for a pilot pro- CJ photo illustration mind us constantly threat- gram aimed at drastically reducing originally opened in the ening this neighborhood to water consumption by its largest 1940s, and it has been a contentious issue for years. In a reopen (the landfill) without a real good reason to do it,” users. Despite the prospect of sav- 1990 effort to spur development in economically challenged Perkins said. ing tens of millions of gallons a East Greensboro, the city provided free land and low-inter- Still, Perkins added that he didn’t want to bind the city year, CMUD is unlikely to get the est loans to the Nealtown Farms neighborhood, which sits to a policy in the face of changing economic conditions. grant, reports The Charlotte Observ- mere yards from the landfill. “If the Uwharrie landfill is shut down for reasons be- er. But when the city announced plans to expand the yond Greensboro’s control, then we need a backup plan,” CMUD’s proposal involves landfill in 1995, black community leaders charged city offi- Perkins said. giving $500 rebates to large users cials with environmental racism. Nealtown Farms residents Perkins suggested that a regional waste authority be if they install “smart controllers,” filed suit against the city. In 1996, the parties reached a set- formed so that Triad-area governments can combine their computerized systems to deter- tlement, with the city agreeing to cover any losses in home waste and “dispose of it efficiently.” mine exactly how long irrigation values. Barber then countered that there’s no incentive for systems need to operate based In 2001 the City Council voted to close the landfill to other governments to participate in a regional waste author- upon recent rainfall and soil condi- household garbage, and it has accepted only construction ity because those cities have added capacity to their landfills tions. debris and yard waste since 2007. The city trucks its house- in recent years. The N.C. Department of En- hold waste to a transfer station — built in 2006 at a cost of $8 Barber also said environmental services director Cov- vironment and Natural Resources million — before it’s hauled to the Uwharrie landfill. ington negotiated favorable rates for hauling and disposal has $65 million in federal stimulus Barber raised the issue of reopening White Street last of the trash. But those contracts will eventually be up for funds available for water projects year. At a contentious meeting in April 2008, Barber noted renewal, and costs certainly would rise. throughout the state. It’s received that city environmental services director Jeryl Covington, “We won’t be able to get the same deal,” Barber said. more than 500 applications for based on capacity estimates provided by the North Carolina “Then the $7 million will go to $20 million.” projects with a combined value of Division of Environmental and Natural Resources, did not Barber said he was “not insensitive to (the) plight” of $1 billion. DENR has so far award- recommend closing the landfill. nearby residents who would be affected if the landfill re- ed about $40 million, with 25 of the The council voted 6-3 not to reopen the landfill at the 35 grants going to communities opened. “But I’m also not insensitive to the other 249,000 time. But Barber raised the issue again at a June 2009 council people who are paying a ridiculous amount of money to with populations under 10,000. meeting, saying the state of the economy dictates that the “Population is one factor truck their waste 80 miles.” city should continue to explore reopening White Street. working against (Charlotte),” she Following the debate, the council voted 6-3 to table the “The economy no longer lets us live with the worst says. CJ issue, with Johnson, Wells, and Bellamy-Small voting against economic decision in this city since 1808,” Barber said. the motion. So the trash-talk is likely to continue. CJ JULY 2009 | CAROLINA JOURNAL PAGE 17

‘Welfare for Local Pols’ COMMENTARY ‘Benefits’ of Sports Bill Stuck in Neutral Subsidies Rarely Add Up By Colleen Calvani raising playing field among candi- Contributor dates. But Bakst says the result gives t hasn’t been a good month for The Queen City lost its first NBA RALEIGH one contender an unfair advantage. government-subsidized sports team, the Hornets, in 2002. It then t’s certainly a detour if not the end “In calculating matching funds, it is stadium deals in North Caro- committed all its hotel-motel tax of the road for a bill that’s been the total of both Candidate A’s expen- Ilina. Two expensive, high-profile money for the foreseeable future to called “welfare for local politi- ditures and the expenditures spent by stadiums have disappointed, one build a new arena to attract an NBA Icians,” resulting from a grass-roots ef- independent groups that help Can- slowly and subtly, one loudly and expansion team. fort to defeat the legislation. House Bill didate A,” he said. “So if Candidate obviously. It’s doubtful, though, that the 120, which called for taxpayer-funded A spends $80,000, but independent It’s easy enough to under- city’s vision included the Bobcats political campaigns at the city level, groups spend $50,000, Candidate B re- stand why local governments are so finishing 26th among the 30 NBA is stuck in committee for the time be- ceives $30,000 in matching funds.” fascinated by professional sports. teams in home attendance, but ing, with General Assembly watchers Woodhouse also noted the like- At its core, it’s a numbers thing. that’s what happened this past predicting that it won’t be seen again ly effects of public financing on free Professional baseball, basketball, season. before the legislature adjourns. speech. “One thing we got at least some and hockey teams, even at the Talk has shifted from the The bill would mandate a public traction out of, and were able to point minor-league level, play a lot of financial impact the Bobcats will financing option out, (is) for the games. And a lot of games times have on Charlotte’s economy to for elections in first time (these) even modest attendance equals how good the city’s lawyering cities with more bills would com- many people coming to an area. was in negotiating the arena deal than 50,000 peo- Taxpayers would pel taxpayers to City and county gov- to keep the Bobcats in ple, a stipulation fund political ernment types are quite Charlotte for at least a placed in the bill have to finance races that they well-versed in the aspira- few more years. to garner sup- then couldn’t tions of their community’s By comparison, port from oth- local races in dis- even vote in,” he downtowns. That is, after Charlotte’s situation erwise unwill- tricts where they said. For exam- all, where they work. looks great compared to ing Democrats ple, tax dollars Put the two together, the mess Winston-Salem from eastern could not vote. from a resident and you have a ready mix has gotten itself into. North Carolina, living in Coun- for economic develop- In late 2006, the city explained Dal- cil District 1 of a ment schemes that in- committed $12 million las Woodhouse, North Carolina volve using public money MICHAEL dollars, primarily in state director of city would finance races in the city’s to help build stadiums LOWREY loans, to what was then Americans for Prosperity. Americans other districts, where that resident can- and arenas for privately a $22.6 million project, for Prosperity helped jump-start a not vote. owned professional sports building a new stadium grass-roots campaign against the bill. Although H.B. 120 would not teams. for minor league base- Of course, these deals are ball’s Class A Carolina League “I hope we have defeated it at compel cities to participate, Wood- always sold as providing broader Winston-Salem Dash. least for the foreseeable future. Noth- house says in this context, “voluntary” benefits, that the “investment” in By this year, the stadium had ing’s ever dead forever in politics,” has lost its meaning. “It’s not volun- the sports-related infrastructure is become a $40.7 million project, Woodhouse explained. It was Wood- tary to the voters, and it’s not volun- the key to revitalize a larger part of with the owners unable to secure house’s voice that North Carolinians tary to the candidate (who opts not to heard on recorded phone calls explain- a city’s downtown. private financing for completion. use it). The one guy who does it gets ing AFP’s opposition to the bill. If only it were so simple. The city, deciding the project was free money,” he said. “This is a very “We went down and spoke to It’s highly questionable whether too important to fail, stepped in partisan bill.” groups in what we thought were these sorts of deals bring the sorts and provided another $15.7 million Woodhouse also takes issue with swing districts, especially down in of benefits claimed. Professional for the project, mainly in the form the argument, offered by the bill’s eastern North Carolina, places that are sports are ultimately a form of of loans. conservative Democrat districts. Those Democratic sponsors, Reps. Rick Gla- entertainment. As such, it simply “I think the biggest concern is voters hate this type of stuff,” he said. zier, Melanie Goodwin, Pricey Har- draws money that would otherwise not getting it done,” said Winston- “Especially in these economic times, rison and Winkie Wilkins, that public have been spent on other local en- Salem Mayor Allen Joines. they can’t believe the idea that their tax financing would free elections of influ- tertainment options. There’s scant Except, of course, that this money would be used to fund politi- ence from special interests. evidence that putting government deal may still fail. To repay its cians.” “Here is a bill that is supposed money into these sorts of ventures loans, the Dash estimates it will Based on a pilot program adopt- to make everybody feel better about increases economic growth or local have to sell 300,000 tickets a year. ed in Chapel Hill, the public financing the electoral system, clean up the pro- incomes. That works out to about 4,400 option would work like this, says Dar- cess,” Woodhouse said. Even so, the And it all depends upon a game for each of the 70 home en Bakst, legal and regulatory policy bill’s sponsors in the Senate repeat- everything going as planned, that games — or about 80 percent of analyst for the John Locke Founda- edly delayed votes until they thought the local government’s de facto the seats available in the 5,500-seat tion: Candidate A chooses not to take a favorable mix of senators was avail- business partner does a good job of facility. taxpayer dollars, depending instead able to support the measure. Continual running the team. That hasn’t been That would be an impressive on the tried-and-true campaign fund- pressure from the grass-roots network the case in Charlotte and Winston- draw indeed for a single-A base- raising method of getting supporters spurred by Americans for Prosperity Salem recently. ball team, especially with nearby to donate their own money. Candidate and its partners kept that mix from In Charlotte, Bob Johnson Greensboro having its own minor- B, on the other hand, does decide to coming together, he said. announced that he’s putting the league team. use the public financing option, which “Voter-owned elections” may still NBA’s Charlotte Bobcats up for One would hope that local has a threshold of $100,000. “Once return this session, however. Senate sale. This doesn’t necessarily come government officials would learn Candidate A spends beyond $100,000, Bill 966, providing publicly financed as a surprise. The Bobcats have from these projects, but that may be money starts going to Candidate B. … elections beginning in 2012 for secre- been an expensive disappointment asking too much. CJ For example, if Candidate A spends tary of state, treasurer, attorney gener- for both Johnson, as an owner, and $105,000, then Candidate B gets $5,000 al, and the commissioners of labor and Charlotte for some time. Michael Lowrey is an associate in matching funds,” Bakst said. agriculture, is in the Senate Appropria- The story is simple enough: editor of Carolina Journal. The attempt is to level the fund- tions Committee. CJ PAGE 18 JULY 2009 | CAROLINA JOURNAL

Local Innovation Bulletin Board Winston-Salem Dashes to Bail Green Light for Revenues Out Minor-League Ballpark

hicago officials are examining jurisdictions use different criteria to By Michael Lowrey — they also are more risky and require a new use of red-light camer- measure the issue. Associate Editor the county to pay a higher interest rate. as to generate revenue for the “It really is a systemic failure, RALEIGH “That’s where some of the stuff Ccity: Issuing fines for automobiles and nobody is keeping the books on he city of Winston-Salem is bail- got away from us,” said county Finance spotted operating without insurance this in the country,” says University ing out the owners of the local Director Dena Diorio. “If we had not coverage. The proposal raises seri- of Texas Medical School professor professional baseball team as been so quick to use that mechanism to ous civil liberties concerns, reports Guy Clifton. “Get sick on a bad day, theyT struggle to finance a new stadi- pay for projects, then we would be in a the Heartland Institute. and you’re dead.” um. The city is obliging as it had previ- better place.” Illinois imposes a $500 fine for Sending patients to more dis- ously committed millions of dollars to The county now has restricted drivers found operating a vehicle tant hospitals increases the time be- the project, reports the Winston-Salem the use of COPs “except for extreme without liability insurance; munici- fore a patient sees a doctor and ties Journal. circumstances.” This includes pay- palities can impose additional pen- up ambulances longer. It also means In late 2006, Winston-Salem City ing for projects costing a combined alties. InsureNet, a Michigan-based that patients may be treated by doc- Council agreed to $141.4 million in company that provides instant veri- tors unfamiliar with their previous provide $12 mil- a pay-as-you-go fication of automobile insurance, has medical histories. lion in assistance manner instead suggested Chicago use its existing The reason for ER overcrowd- to Billy Prim and Cherokee of issuing COPs. red-light cameras also to cite cars ing varies by hospital. Some urban Andrew “Flip” M e c k l e n b u r g operating without insurance. That hospitals suffer from too many pa- Filipowski, the also plans on could amount to an extra $10 million tients seeking noncritical care, while owners of the to not starting any a year in revenue just from motorists hospitals in some suburban areas Class A baseball new projects for who are caught running red lights. have not kept up with population team now known a year and then The company projects the city growth. In many cases, though, the as the Winston- Currituck limiting yearly could collect up to an additional overcrowding stems from patient Salem Dash, as borrowing there- $200 million a year in fines if the flow problems at the facilities, with they built a new after. insurance status of all vehicles that backlogs developing from poorly stadium for the team. At the time, the “I think we’re taking actions now pass through intersections with red- organized emergency departments facility was projected to cost $22.6 mil- that are prudent,” said County Com- light cameras are checked, whether that can’t admit or discharge pa- lion. Most of the city assistance was in missioner Neil Cooksey. “It’s just too they run the light or not. InsureNet tients fast enough. the form of a loan, to be repaid via a $1 bad we had to get into the situation would collect 30 percent of whatever per ticket surcharge. we’re in where we have to put a freeze the city collects. Construction stopped earlier this on (new) capital spending.” Chicago is projecting a $300 The empty arena year when Prim couldn’t obtain pri- Asheville City Hall million budget deficit for 2009 and In 2004, Kansas City decided to vate financing to complete the facil- currently operates 132 red-light build a new arena to attract an NBA ity as he was also buying Filipowski Asheville City Hall, built in 1928, cameras. InsureNet verifies that a or NHL team. Build-it-and-they- out. That’s when the city stepped in to is among the city’s outstanding archi- vehicle is insured by assessing the will-come hasn’t happened yet for provide an additional $15.7 million in tectural landmarks. It’s also an expen- National Law Enforcement Telecom- Kansas City, and the city’s decision funding for the stadium, again mostly sive structure to maintain, reports the munications System. NLETS has to build the facility remains a baf- in the form of a loan. Asheville Citizen-Times, with the city this sort of information only if the fling one, writes Bruce Schoenfeld “As we looked at this project, we looking to spend at least $3.9 million insurance companies in a state turn for The Atlantic. started from the premise that it was over six years on repairs. it over. So far, that’s the case in 13 Kansas City once supported just not acceptable to let the stadium The city has spent $6.7 million states, but not Illinois. teams in all four major professional go into foreclosure,” said City Manag- over the past 20 years on the build- “It poses a serious threat to sports. Those times are long gone, er Lee Garrity. The stadium’s construc- ing. Even that hasn’t kept it completely privacy and civil liberties whenever however. While the city’s baseball tion cost has grown to $40.7 million open for use. The top two floors of the the government compels private and football teams continue to draw because of construction delays and eight-story building are largely unoc- companies to turn over customers’ well, big-time basketball and hockey changes in scope to the project. cupied, as they don’t meet current fire- personal information,” said Daniel left Kansas City in 1985 and 1976, re- To repay the loans, the Dash will safety standards. Ballon, a senior technology expert spectively. have to draw more than 4,000 fans per Asheville city government needs for the San Francisco-based Pacific Kansas City isn’t alone in that game at the 5,500-seat stadium, which more office space, so it is looking now Research Institute. regard, as Baltimore, Cincinnati, San Prim and city officials hope will be into refurbishing the top two floors. Diego, and Seattle are also seeking ready for the start of 2010 season. The necessary work, plus other repairs Ambulance diversions an NBA or NHL franchise to sup- Mecklenburg debt policy throughout the structure, are projected plement their baseball and football to cost at least $3.9 million. This esti- Health care officials in Wash- teams. Both the NBA and NHL have The soft economy is forcing mate does not include the cost of fixing ington, D.C., and Maryland often focused in recent years on putting Mecklenburg County to rethink its recent water leaks or mold prevention divert ambulances from the nearest franchises in markets like Raleigh approach to issuing debt. The move in the upper-floor ductwork. hospital because of emergency room and Charlotte that don’t have both comes as one dollar in five the county Finding the money for the work capacity limits. The practice increas- (or either) a major league baseball or spends is going for debt servicing, re- is proving challenging. The City Coun- es costs and can impact adversely football team. ports The Charlotte Observer. cil considered putting a bond issue the quality of care patients receive, What is different in Kansas Mecklenburg County’s debt has before voters last year that might have reports The Washington Post. City’s case is that city officials spent grown rapidly in recent years. Voters covered the costs, but dropped the idea The Post found that some $222 million on a new facility hop- have approved $1.4 billion of bonds because of the weak economy. Maryland ERs diverted patients ing they could attract a franchise. since 2000. Over the same period of “We’ve done enough to keep the from the nearest hospital 15 percent And while the Sprint Cen- time, the county has also issued $1.1 doors open, keep things safe, and keep of the time. In Washington, D.C., the ter, which opened in October 2007, billion in debt that doesn’t require vot- things presentable,” said Roderick rate was as high as 33 percent. is state of the art, that hasn’t been er approval, in the form of certificates Simmons, who heads the department Judging to what degree am- enough to persuade a club to come of participation. which oversees building maintenance bulance diversions are a problem to town. The arena now sits empty Because COPs don’t require vot- for the city. nationally is difficult, as different most nights. CJ er approval — technically, they aren’t “The problem is, infrastructure is backed by the county’s ability to tax not sexy.” CJ JULY 2009 | CAROLINA JOURNAL PAGE 19 Appeals Court Scraps Drug Tests of School System Workers

By Michael Lowrey manded to search suspected places danger demanding departure from for safety,” wrote Stephens. Associate Editor without evidence of the act commit- the Fourth Amendment’s” general re- The school board’s Fourth RALEIGH ted, or to seize any person or persons quirement of individualized suspicion. Amendment argument was dismissed he North Carolina Court of Ap- not named, whose offense is not par- “Considering and balancing all just as curtly, with Stephens noting peals has rejected the Graham ticularly described and supported by the circumstances, we conclude that that the Supreme Court had held that County Board of Education’s evidence, are dangerous to liberty and the employees’ acknowledged privacy “the nature of [the schools’ power over plansT to conduct random, suspicion- shall not be granted.” interests outweigh the Board’s interest schoolchildren] is custodial and tu- less drug testing of all its employees. Though the specific wording of in conducting random, suspicionless telary, [the schools’ power] permit[s] The appeals court found that such test- this provision is much different than testing,” wrote Judge Linda Stephens a degree of supervision and control ing violated the North Carolina Con- the Fourth Amendment of the U.S. for the appeals court. [over schoolchildren] that could not be stitution’s guarantees against unrea- Constitution, the “According- exercised over free adults.” sonable searches and seizures. N.C. Supreme ly, we hold that She also noted that the school On Dec. 5, 2006, the Graham Court has held The North Carolina Courts the policy violates board had presented no evidence that County school board voted to adopt a that the state con- Article I, Section their previous drug policy was ineffec- new drug policy, authorizing random stitution must be 20’s guarantee tive or that the school system faced a drug testing of all school system em- interpreted to pro- against unreason- drug problem. ployees, including those with little if vide at least the able searches.” The appeals court was also not any contact with students. same protections The prob- persuaded that a previous case, Boesche The policy was adopted based to liberty as the lem, in the Court v. Raleigh-Durham Airport Authority, upon general concern the board ex- federal Constitu- of Appeals’ view, served as a precedent worth following. pressed about drug use throughout so- tion. Courts ini- was that the In Boesche, the appeals court ciety. The school board did not adopt tially analyze claims that government school board had decided to conduct upheld the firing of an airport main- random drug testing because its pre- actions violate the protections of the intrusive drug tests without any evi- tenance worker for refusing to take a vious drug policy had proven to be state constitution to see if they violate dence that such tests were needed or drug test. The employee in that case somehow inadequate; county schools the U.S. Constitution. appropriate. It rejected the notion that was authorized to drive a vehicle along were not facing a drug problem. If not, a separate examination is schools were somehow different in this the airport’s flight line to get access to Susan Jones, a teacher at Rob- then undertaken to determine if the context, that school employees enjoy a the HVAC units he serviced. binsville High School, and the North more specifically worded N.C. Con- lesser expectation of privacy than oth- “In the case before us, there is Carolina Association of Educators filed stitution provides greater safeguards er government workers. absolutely no evidence in the record a lawsuit challenging the drug testing than its federal counterpart. Public employees may face a re- which in any way equates the safety policy, contending it violated the N.C. Accordingly, the Court of Ap- duced expectation of privacy if their concerns inherent in the driving of a Constitution’s protections against un- peals applied a Fourth Amendment line of work is heavily regulated for motor vehicle on the apron of an air- reasonable searches and seizures. After analysis to the case, which involves safety reasons. The school board also port’s flight area with the safety con- Superior Court Judge James U. Downs “balancing the nature of the intrusion pointed out that the U.S. Supreme cerns inherent in the job duties of any sided with the school board, Jones and on the individual’s privacy against the Court has held that “Fourth Amend- Board employee,” said Stephens. the NCAE brought the matter before promotion of legitimate governmental ment rights … are different in public The appeals court also tended to the state’s second highest court, again interests.” schools than elsewhere; the ‘reason- view the school board policy as violat- contending the drug testing provision Such an analysis, though, typi- ableness’ inquiry cannot disregard the ing Article I, Section 20’s prohibition was unconstitutional. cally involves some suspicion that the schools’ custodial and tutelary respon- on general warrants but did not ad- sibility for children.” The constitution’s standard person being searched has done some- dress the issue fully its opinion. thing wrong. The government can, in No evidence tests needed The school board has decided Article I, Section 20 of the North certain cases, legally conduct searches not to ask the North Carolina Supreme Carolina Constitution states: even without such individualized sus- “There is no evidence in the re- Court to review the case. “General warrants, whereby any picion. In those cases, courts look to see cord before us, however, that any of The case is Jones v. Graham County officer or other person may be com- if there is “any indication of a concrete the Board’s employees are regulated Board of Education, (08-477). CJ Help us keep our presses rolling Publishing a newspaper is an ex- pensive proposition. Just ask the many daily newspapers that are having trouble making ends meet these days. It takes a large team of editors, re- porters, photographers and copy editors to bring you the aggressive investigative reporting you have become accustomed to seeing in Carolina Journal each month. Putting their work on newsprint and then delivering it to more than 100,000 readers each month puts a sizeable dent in the John Locke Foundation’s budget. That’s why we’re asking you to help defray those costs with a donation. Just send a check to: Carolina Journal Fund, John Locke Foundation, 200 W. Morgan St., Suite 200, Raleigh, NC 27601. We thank you for your support.

John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 20 JULY 2009 | CAROLINA JOURNAL

From the Liberty Library Movie review

• In Camelot and the Cultural Revolution: How the Assassination of Disney/Pixar’s ‘Up’ a ‘Beautiful, Heroic Tearjerker’ John F. Kennedy Shattered American Liberalism, James Piereson examines •“Up,” Directed by Pete Docter, Disney/Pixar, Released Up continues Pixar’s long tradition of breathtakingly this seminal event from an entirely May 29, 87 minutes beautiful cinematic panoramas of computer-generated im- new and provocative point of view. agery. The setting of the main part of the movie — the ground Most books on the assassination By John Calvin Young and skies of Paradise Falls — is richly, wonderfully detailed. ask who was really responsible for Contributor With Up, however, for the first time Pixar experi- killing the president. Piereson takes RALEIGH mented with wide-release 3D in its films. While I did it as established fact that Kennedy ver wanted to tie yourself to a bunch of balloons and not see it in 3D (3D showings are dependent on the the- was killed by Lee Harvey Oswald. fly away? Carl Fredricksen does just that this summer ater and are typically $3 to $5 more expensive), I have What needs to be explained, he in Pixar’s newest animated blockbuster, Up (directed heard that, as usual, Pixar hit the 3D version out of the argues, is the bizarre aftermath of the Eby Pete Docter). ballpark. In my own experience, though, the 3D version assassination: Why in the years after Seventy-eight-year-old widower Carl (voiced by Ed of a film may be distracting or confusing and can even the assassination did the American Asner), grieving his recently deceased wife, decides to ful- cause some people headaches; your mileage may vary. Left become preoccupied with con- fill a childhood dream to go to the fabled Paradise Falls by The true theme of the movie isn’t about helping the spiratorial thinking? How and why mooring thousands of balloons to his house and flying it to elderly, or never forgetting your dreams, or anything else. was John F. Kennedy transformed South America. Russell needs leadership, needs to learn how to be a man. in death into a liberal icon and a In the process, cantankerous Carl collects a giant bird, Carl needs to remember who he is. You can’t forget martyr for civil rights? In what way a talking dog, and 8-year-old stowaway Russell (Jordan a dream, yet dreams are not enough — sometimes you was the assassination linked to the Nagai), all of whom demand more love, loyalty, and lead- have to leave them behind. In short, it’s “If” in cinemat- collapse of mid-century liberalism, ership than Carl’s tired ic form — Rudyard a doctrine which until 1963 was the heart can supply. Climb Kipling’s challenge to reigning philosophy of the nation? aboard as Carl Fredrick- courageous manhood: In answering these questions, sen finally finds his ad- Piereson places great weight on the venture — which may “If you can influence of Jacqueline Kennedy in be a little … wilder … dream — and not make shaping public memory of her hus- than either he or Russell dreams your master, band and the meaning of his death. anticipated. If you can think Visit www.encounterbooks.com to The film opens — and not make learn more. with a look back into thoughts your aim; Carl’s childhood, as he If you can meet with watches newsreels of Triumph and Disaster • The “creative” financing of his hero, intrepid ex- And treat those two home mortgages and the even more plorer Charles Muntz impostors just the same.” “creative” marketing of financial (Christopher Plummer) securities based on American mort- set off in his airship, the Be advised: the gages to countries around the world, Spirit of Adventure, seek- emotional intensity of are part of the story of how a financial ing the legendary giant Up may be a little too house of cards was built up — and bird of South Amer- then suddenly crashed. much for some kids. The ica’s Paradise Falls. In The Housing Boom and Bust, family in front of me in The youthful Carl Thomas Sowell, author of the ac- the theater had to take soon meets Ellie, a girl claimed Basic Economics, provides their little girls out three even more obsessed a plain-English explanation of how times, as the suspense got we got into the current economic with Muntz than him- to be too much for them. disaster that developed out of the self, if possible, and Unlike some of economics and politics of the hous- their shared dream Pixar’s previous films, ing boom and bust. More at www. makes them fast friends. this time the heroes in perseusbooksgroup.com. In the course of danger are near and time, they grow up, dear to us — a vulner- fall in love, marry, and able old man and a • Although the United States is grow old together, al- little boy rather than rightly preoccupied with the threat ways promising each a talking car, a clown- of Islamist terrorism and the two con- other they would some- fish, or a teenage chef. flicts in Iraq and Afghanistan, there is day make it to Paradise The film is hard- a wide consensus among American Falls like their hero. ly all seriousness, strategic thinkers that America’s We return to the though. The explorer’s greatest challenge over the next present to find a fiercely trained dog pack is fit- decades will be the rise of China. independent Carl, wid- ted with collars that The Rise of China is a collection owed and alone for the allow them to talk … of essays about the nature of that first time in 50 years. With his cottage threatened by urban de- until their attention is interrupted by a passing squirrel. threat and what the U.S. and its allies velopment, the retired balloon salesman devises a plan to tie Ever wondered how a dog thinks? Pixar’s nailed might do in foreign and defense af- thousands of balloons to his house and sail it to South Ameri- it — “Sir, I have just met you but I LOVE you. … ” fairs to meet it. Contributing authors ca, inadvertently taking along Russell, a Wilderness Explorer. Talking dogs, a giant bird that loves chocolate, Michael R. Auslin, Dan Blumenthal, Carl and Russell face far more than the simple difficulty and the escapades of an irrepressible 8-year-old Wilder- Ellen Bork, Nicholas Eberstadt, Rob- of getting to the falls, however. Charles Muntz is still search- ness Explorer do a lot to relieve the tension of the film. ert Kagan, Gary J. Schmitt, and Ash- ing for his giant bird, and he has become rather territorial Carl regains the sense of adventure, of youthfulness, ley J. Tellis contemplate how these about the falls and the birds that live there, complicating mat- he lost when Ellie died. And Russell learns how to be a two rising, ambitious powers are ters when one of the rare birds attaches itself to their convoy. man at last. Carl’s childhood hero failed the test, but Carl contesting for leadership in East Asia The explorer is convinced the man and boy are out to and Russell have come a long way together, and it shows. and ask if the sanguine forecasts for a get him, and sends his trained dog packs out to find and Pixar has done it again and created a beautiful, won- peaceful century will hold true. CJ stop them. Russell must learn courage and Carl patience if derful, heroic tearjerker of a movie. In today’s culture, they are to survive this blue-yonder adventure in one piece. we can do far worse for our kids and for ourselves. CJ JULY 2009 | CAROLINA JOURNAL PAGE 21 For Tar Heels, the Fall of Fort Hatteras an Embarrassing Defeat

uring the 1800s, Hatteras was were completely ready and started forcements never arrived, so Fort strengthened its blockading effort, and one of the state’s busiest ports. harboring Confederate raiders, who Hatteras’ commanders, Col. William the Union Army obtained a post for At the onset of the Civil War, were taking American supplies and Martin and Commodore Samuel Bar- military operation in northeast North Dthe Confederate state government sending them to Confederate troops ron, started strengthening the fort’s Carolina. The fort’s capture gave the built two forts to protect the port of in Virginia. To Union commanders, defenses for an imminent attack. Union a morale boost, after its humili- Hatteras: Fort Hatteras and Fort Clark. something had to be done. On Aug. 29, a heavy Union ating defeat at First Bull Run. The forts’ Union commanders decided to bombardment ensued. A Confederate Meanwhile, in Confederate locations allowed attack Fort Hatteras and eliminate the return was almost nonexistent — wet North Carolina, leaders and citizens for the two to Confederate raiding threat along the gunpowder, a fire in the fort, and were looking for someone to blame. work in tandem North Carolina coast. Approximately many shots did not detonate. One Accusations of soldier drunkenness and possibly trap 880 men from the 9th and 10th New officer estimated 3,000 Union shells and ineffectiveness abounded. The Union invaders in York Volunteers left Fort Monroe, were fired in three hours. After read- Ordnance Department was blamed for a crossfire. They Va., on Aug. 25, 1861, and headed ing reports, Gov. Clark later remarked, the lack of weaponry and ammunition were difficult to southward to Fort Hatteras. The fleet “Hatteras sustained the heaviest and at Fort Hatteras. defend, however. included seven warships. The Union most incessant firing that this country The fort was not particularly Enemy troops force arrived near Hatteras on Aug. ever witnessed.” Confederate Com- sturdy, so Army engineers were could land almost TROY 27 and waited for morning to attack. modore Barron sent as many men as criticized. The CSA Congress de- anywhere near KICKLER On Aug. 28, Union troops landed possible to New Bern before he signed manded an investigation.The fall Fort Clark (named approximately three miles north of the terms of unconditional surrender. of Fort Hatteras was one of the first after Gov. Henry Fort Clark, for a heavy surf prevented Although the Union victory re- Confederate defeats, and many North Toole Clark), and Confederate troops the Union army from landing at their sulted in few casualties for either side Carolinians were embarrassed. One had no good escape routes. original destination. Confederates (one Union dead and 12 Confederate Tar Heel expressed what many in his Before the forts were built soon abandoned Fort Clark and went dead), the capture of Fort Hatteras state undoubtedly thought: “Must his- completely, Fort Hatteras experienced to Hatteras; they were out of gunpow- was a significant Confederate defeat. tory record in after years that in our some of the first naval warfare during der. By nightfall, Union troops (with- Approximately 700 Confederates struggle for freedom the first repulse the Civil War. On July 10, 1861, the out casualty) then occupied Fort Clark had been captured, and 30 cannons our cause received was on the soil of U. S. Navy fired at the fort, and the and waited for the morning to mount and five small boats were now in the Old North State. . . .” CJ men in the fort, writes historian John an attack on Fort Hatteras. Union hands. Of more significance, G. Barrett, witnessed “the first hostile While Union troops occupied Southern privateering on the Outer Dr. Troy Kickler is director of the shots fired by the U.S. Navy at South- Fort Clark, Confederates planned to Banks had been eliminated, the Union North Carolina History Project (www. ern held territory.” By August the forts recapture the fort. Necessary rein- Navy acquired a fueling station that northcarolinahistory.org). Stay in the know with the JLF blogs Visit our family of weblogs for immediate analysis and commentary on issues great and small www.JohnLocke.org YOUR HOME ON THE WEB FOR The Locker Room is the blog on the main JLF Web site. All JLF employees and many friends of the foundation post on this site every day: http://www.johnlocke.org/lockerroom/ NORTH CAROLINA PUBLIC POLICY Creating your own personal Key Account at www.JohnLocke.org is a great starting place for tracking the critical public policy issues facing North Carolina.

The Meck Deck is the JLF’s blog in Charlotte. Jeff Taylor blogs on this site and has made it a must-read for anyone interested in issues in the Queen City: http://charlotte.johnlocke.org/blog/ Each day, your Key Account searches a comprehensive database of JLF reports, briefing papers, news articles, press releases, and events notices to display timely information about the issues of your choice. It’s an

Squall Lines is the JLF’s blog in Wilmington. A group of JLF staffers and coastal friends keep folks on excellent tool for those drafting legislation, researching the coast updated on issues facing that region of the state: http://wilmington.johnlocke.org/blog/ policy issues, preparing news stories, planning political or lobbying campaigns, or seeking information with which to be an informed voter and citizen.

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

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

The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 22 JULY 2009 | CAROLINA JOURNAL

Short Takes on Culture Book review ‘Wolverine’ Gritty Fairness and the First Amendment • “X-Men Origins: Wolverine” reading many of the great books … • Brian Jennings, Censorship: The Threat notes, many Americans, believing that 20th Century Fox is comparatively straightforward,” to Silence Talk Radio, New York: Thresh- “Fairness sounds like a positive thing,” Produced by Hugh Jackman O’Hear explains. “The difficulty old Editions, 2009, 301 pages. do not understand the effects of the we face, to put it crudely, is simple Fairness Doctrine on political speech. ans of the previous X-Men mov- ignorance in our age of the myths By Melissa Mitchell When Rasmussen Reports polled ies will have to adjust to the of Greece and Rome, and, for the Contributor Americans about the Fairness Doc- more realistic feel of “X-Men later works we have considered, of RALEIGH trine, “nearly half of the respondents FOrigins: Wolverine.” the Bible as well.” ll right, I admit it. I’m addicted said they would favor the regulation’s The idea is still simple: supply “To our collective shame,” he to talk radio. Like Brian Jen- restoration.” Logan/Wolverine (Hugh Jackman, adds, classics from ancient Greece nings, author of Censorship: The Jennings provides examples of who spends the movie with veins “remain a closed book” for the ThreatA to Silence Talk Radio, I grew up what radio was like when the Fair- bulging in his muscles and muscles “vast majority” of readers, despite with radio. Living in western Pennsyl- ness Doctrine ruled. At the time, there bulging out of his tank top) with as the fact “they simply are the soil vania, there was always a radio tuned were only about 100 talk stations na- many mutant opponents as possible. from which Western art and litera- to KDKA 1020-AM, which is one of the tionwide. These stations were so afraid Throw in a bit of romance and heart- ture have sprung.” oldest and most powerful commercial of the doctrine and the chance of los- break, and you know the whole story. O’Hear explores those ancient stations in the United States. Jennings ing their licenses that Jennings says But the typical superhero ac- texts and explains how they’ve had a similar experience living on the “no controversial opinions [were] ex- tion is replaced with more graphic helped inform everyone from Dante other side of the country in Wash- pressed on talk shows.” Jennings notes violence that raises the intensity of to Cervantes, from Chaucer to ington state. “Ra- that broadcasters relied the film well beyond the others in Shakespeare. For the reader unfa- dio woke me up in on “less-labor intensive the series. The theme of revenge also miliar with the Great Books, this the morning, got me shows like ’70s music, gives this film a more somber tone. book is a decent primer. through my chores, personal advice, gar- The character development sets — MITCH KOKAI got me to school and dening, and car repair it apart from the other movies in the back, and was the last shows.” series, too. Though Logan is portrayed thing I heard before After the Fairness as a hardened man in the previous •Digital Photography Books falling to sleep,” Jen- Doctrine was repealed, films, the full emotional trauma of his Assorted publishers nings says. “it was like a fog lift- life depicted in this movie gives his It was this love ed,” says Jennings. As character depth. He is a reluctant hero In recent years, there have of radio that began the program manger of living a simple life and doing honest been massive technological ad- his 40-year career in KVI in Seattle, Jennings work. The murder of his lover drags vances in the field of photography. radio. He was part of switched the format to him once more into the violent life Gone are the days of waiting for the industry during all-conservative talk he had abandoned. Logan wrestles photos to be developed to see if you the era of the Fair- radio and saw the sta- with lust for the blood of those who actually captured that great photo. ness Doctrine, a fed- tion’s ratings skyrocket have hurt him, the very lust which he With digital point-and-shoot and eral policy begun in from No. 23 in the mar- despised in his brother at the begin- SLR cameras, and even cell phones, the late 1940s requir- ket to No. 1. People ning of the movie. the photographer can see immedi- ing broadcast license supported conserva- Though “Wolverine” offers ately if the desired picture has been holders to present tive talk radio. Within a nothing unexpected, the nonstop captured. controversial public issues in a way little over two decades, the number of fighting provides riveting entertain- Owner’s manuals familiar- that the Federal Communications talk-radio stations in the U.S. jumped ment for those who love action. ize the owner with the camera’s Commission considered equitable and from 100 to more than 2,000. Free-mar- — SAMMY DALLAS settings, but the manuals go only so balanced. He was active in broadcast- ket principles worked. far in explaining how to achieve the ing after President Reagan’s FCC re- Some of the book’s most interest- perfect photo. But the good news is scinded the Fairness Doctrine in 1987. ing discussions address the failure of • The Great Books: A Journey Through that there are numerous inexpen- So Jennings has both a unique liberal talk radio to achieve popularity. 2,500 Years of the West’s Classic Lit- sive books that will help the novice perspective and the expertise to write If liberals want to succeed, says Jen- erature or experienced photographer suc- a book about the Fairness Doctrine and nings, “they need to be less dogmatic Anthony O’Hear ceed. the consequences to free speech should and more entertaining.” People don’t ISI Books From outdoor to indoor pho- it be reinstated. He also points out that want to listen to the constant trashing tography, these books receive rave many have called the Fairness Doctrine of America. One might expect that a book reviews from amateur and experi- the “censorship doctrine” because of Jennings points out that Chris- about the “Great Books” would enced photographers: The Digital the potential to censor anything but tian radio may be hit the hardest if the devote most of its words to explain- Photography Book: The Step-by-Step liberal news and ideas. Fairness Doctrine is reinstated. Jen- ing why the books are so great. Secrets for How to Make Your Photos Like many conservative and nings asks, “Would Christian radio, That’s what this reader anticipated Look Like the Pros, by Scott Kelby; Christian radio listeners, Jennings advocating for traditional marriage, from British philosophy professor Better Photo Guide to Digital Photog- is concerned about the move on the be required to give up valuable airtime Anthony O’Hear’s latest volume. raphy, by Jim Miotkie; and Under- part of powerful Democrats to restore to gay rights activists?” Many feel the Instead, O’Hear offers a more standing Exposure: How to Shoot the Fairness Doctrine. House Speaker equal time requirements of the doc- basic discussion. He chooses about Photographs with a Film or Digital Nancy Pelosi of California, Senate Ma- trine would cripple Christian broad- 20 major works — from Homer to Camera, by Bryan Peterson. jority Leader Harry Reid of Nevada, casting. Goethe — then spends most of his All of the author/photog- and Massachusetts Sen. John Kerry are Although the book is informa- time conveying the masterpieces’ raphers address the problems only a few who would like to rid the tive, it is repetitious, which at times I key plot points. encountered when trying to cap- airwaves of conservative talk radio. found irritating. Even with this criti- If a book full of plot descrip- ture that perfect picture, but the Jennings says that the foes of conserva- cism, Jennings’ book is a must read tions and light on analysis sounds different instructional techniques tive talk radio see the Fairness Doctrine for anyone who is concerned about like some sort of highbrow Cliff’s illustrated in each book allow the as a means to achieve that goal. First Amendment rights. The rein- Notes approach, it is. That’s not reader to choose a book address- Jennings gives the history of the statement of the Fairness Doctrine or to say it’s the wrong approach for ing individual needs and learning Fairness Doctrine, explaining its ori- similar legislation would have more most modern-day readers. styles. gin, its restrictions on issue-oriented far-reaching consequences on freedom “The difficulty we face in — MELISSA MITCHELL CJ programming, and why it was re- of speech than merely limiting the con- scinded. Unfortunately, as Jennings tent of talk radio. CJ JULY 2009 | CAROLINA JOURNAL PAGE 23 Buckley and Reagan: Two Soldiers in the Same Conservative Trench • William F. Buckley Jr., The Reagan I the scenes. Still, even Buckley is led to tiat, Hayek, and others. It made for an best-selling authors have to offer. And Knew, New York: Basic Books, 2008, invent a conversation (“well founded interesting relationship. this is not a poor effort, just a different 279 pages. on personal knowledge,” the intro- The book alternates between kind. duction assures) to try and get inside chapters of narrative and collections One of the pains of Alzheimer’s By Hal Young Reagan’s thinking, like Edmund Mor- of correspondence. Buckley shares his is that, in a sense, we can never be Contributor ris did in his authorized biography interaction with Reagan’s children, sure at what point we lost touch with RALEIGH Dutch. If Buckley got “as close to particularly the troubled relationship the friend or relative we knew. Rea- here is a sentimental aspect to last him as one could,” between Ron and Ron Jr. He also tells gan died in 2004 but formally bowed words. Deathbed confessions are as Chris Buck- of the inside jokes they out of the scene several years before. assumed to be truthful; death- ley suggests, this s h a r e d . Buckley’s health issues (diabetes and bedT conversions are greeted with relief may be the best B u c k l e y emphysema) did not prevent him from or disbelief, depending on the newly one can hope for. i n v e s t e d doing the work he loved up to the very deceased convert’s previous standing. B u c k l e y R e a g a n end, for which we can be thankful. Still, Those who die in action are honored for opens with his with titles there is something of a foreshadowy giving the last full measure of devotion first encoun- he had yet feeling to the book, as if signs of the to their cause; “It’s how they’d want to ter with Ron- to earn; one final decline are hidden therein. There go,” we say. It’s how William F. Buck- ald Reagan in Reagan ap- is a sketchiness to some chapters, as if ley went, found dead at his desk one 1961, while pearance on the author was struggling to finish his morning, and The Reagan I Knew may the future Firing Line thought or fill in his outline. Buckley’s be the last thing he worked on. In the p r e s i d e n t was on the research assistant Danilo Petranovich foreword, his son Christopher Buckley was still a unannounced mentions that he wrote first drafts of observed, “This one is a natural, even re g i s t e re d theme, “Sup- some of the chapters, no doubt heavily eerily fitting, coda to my father’s oeu- D e m o c r a t pose you are worked by Buckley but still a bit of a vre. … How apt … that his last book and admit- president,” 11 crutch for the aging warrior. should be about the man whose career ted ad- months before There are some places where the he in a sense enabled.” mirer of the 1980 elec- book could be titled The Buckley Who Franklin A tale of a friendship tion. Buckley and Knew Reagan. The chapters of corre- D. Roos- Reagan famously spondence, especially later in the chro- Buckley fils explains that his fa- evelt. It butted heads over nology, are sometimes one-sided, as ther’s support for Sen. Barry Goldwa- was a Carter’s Panama Buckley kept copies of his letters that ter’s 1964 presidential bid was part of charac- Canal treaty, and Reagan answered by phone call. They the underpinnings to the rise of Ronald teristi- for years afterward are still interesting, if you appreciate Reagan in California, then nationally. c a l l y Buckley continued Buckley when he was at his most free- This book is less about political strat- Reaga- to needle Reagan not wheeling and frivolous. His chatty, al- egy, though, than it is about two men n e s q u e to give away the Erie most flirtatious exchanges with Nancy soldiering together on the same side. incident, echoed decades Canal next; Buckley, Reagan (a longstanding joke between It’s a memoir of a friendship, not a his- later in a candidate debate in New of course, was the one them was running away to Casablanca torical work. England. The Gipper’s background as who advo- cated for the treaty. together) are quite unlike his familiar Like many celebrities, Reagan a reformed liberal was so instructive to prose in National Review. was an extrovert in public life but the ever-conservative Ivy Leaguer that Ringing down the curtain There are still plenty of nuggets kept a close guard around whatever Buckley calls the former actor his tu- This may be an appropriate final in this volume to make it worthwhile privacy he could retain. Buckley was tor, which probably will come as a sur- act of a literary career, but this book is reading. At the risk of sounding like a admitted to the inner circles both in prise. Of course, Reagan was no intel- not Buckley’s magnum opus. It’s argu- vaudeville announcement, if you liked friendship and in politics, so he is able lectual lightweight himself, being fully ably on the lower half of the list of his Buckley and loved Reagan, you’ll en- to offer interesting if somewhat epi- conversant with the foundational texts 55 books, although even a poor effort joy this valedictory combination of the sodic observations of Reagan behind of conservative thinking — Burke, Bas- by WFB stands above the best many two. CJ Books authored By JLF staFFers Free Choice for Workers: Selling the Dream A History of the Right to Work Movement Why Advertising is Good Business

By John Hood President of the John Locke Foundation By George C. Leef Vice President for Research at the John William Pope Center for Higher “[Selling the Dream] provides a Education Policy fascinating look into the world of advertising and beyond ... “He writes like a buccaneer... Highly recommended.” recording episodes of bravery, Choice treachery, commitment and April 2006 vacillation.” Robert Huberty www.praeger.com (Call Jameson Books, 1-800-426-1357, to order) Capital Research Center PAGE 24 JULY 2009 | CAROLINA JOURNAL

COMMENTARY Easley’s Evasions Should Not Surprise ith revelations pouring A slick, glossy brochure with forth about former Gov. direct mail capability was created Mike Easley, his contribut- for the predatory lending education ingW cronies, and state and federal initiative, but DOJ’s expenditure for investigations into his relationships its printing suspiciously went to a and gifts, the general reaction of company in Chicago: Service Web the political class seems to be: How Offset Corp. could he? The company’s Dick Stolfa The idea that a law enforcer told me in a 2000 telephone inter- (Easley was the state’s attorney view that the flier was created by general before becoming governor) The Strategy Group, a Democratic — even a top one — is incapable of consultancy. Peter Giangreco, a crossing ethical barriers is fanciful, partner with the firm, denied if not delusional. In fact, there were knowing anything about the public indications during Easley’s first service announcements. campaign for governor — while he “No, we haven’t done any- EDITORIAL was attorney general — that he was thing for the attorney general’s willing to breach ethics office,” Giangreco said. in his pursuit of political “We’ve worked on his power. campaign — that’s what Name In 1999 Easley we do: we work on cam- added Democratic cam- paigns.” paign strategists to his Easley’s campaign Your Price Department of Justice in 2000 formally used The staff, including Jay Reiff Strategy Group for his he more you dig into the deal the parcels for more than $560,000 that and Amanda Crumley. political advertisements, letting imprisoned former state fell through and an appraisal — ar- Both would eventually paying them more than House Speaker Jim Black settle ranged by Black — valuing the prop- join Easley’s gubernato- PAUL $115,000 for consulting hisT $1 million fine in a state corruption erty at $613,000 that Wake County rial campaign. The team and mailer production. case, the more it stinks. District Attorney Colon Willoughby began to put together CHESSER The summer of 1999 Prosecutors and the judicial sys- confessed he never fully reviewed. messaging to raise Eas- brought a flurry of adver- tem appeared to bend over backward What is this? Priceline for ley’s profile, to help give tisements about predatory to give convicted felon Black every Crooked Politicians? If you are him an advantage against primary lending on North Carolina radio break imaginable. charged with a crime, cop a plea, opponents. stations. The attorney general’s When he couldn’t round up the are fined, and you’re a few hundred Council of State officials often special account paid for production, $1 million in cash he was fined for ob- grand short, don’t worry. Settle your use their public information bud- recording, and radio airtime, and on structing justice in a massive bribery debt on your timetable, at your conve- gets to enhance the public’s recogni- July 21, 1999, the Easley campaign scheme, Wake County Superior Court nience, using whatever surplus assets tion of them. Think of Labor Com- paid Philadelphia-based Demo- Judge Donald W. Stephens gave him are on hand. Name your price. missioner Cherie Berry’s photo in cratic consultancy Shorr & Associ- an extra year to pay. And suspended every elevator, or former Treasurer ates more than $2,300 for what was Our justice system is not sup- any state jail sentence he might have posed to work like this. It’s supposed Richard Moore giving away money described as “media production.” otherwise received. (Black had earlier from the unclaimed property fund. The attorney general’s office to be open and transparent. Its client been convicted in federal court and is is the public — in this instance, the In 1999, as the gubernatorial ran the public service ads primarily now serving a 63-month prison term election approached, DOJ began a on black-oriented and country radio people of North Carolina — and its of- in Pennsylvania.) public service announcement cam- stations. Money for airtime was ficers are sworn to place the people’s When Black said he had only paign highlighting Easley’s fight paid to radio station owners out of interests ahead of the convenience half a million on hand at the end of against predatory lending, with an DOJ’s public funds. or the comfort of criminals. Even (or that first extension, and claimed he eye toward print and broadcast me- Meanwhile, Easley’s office perhaps especially) lawbreakers who hadn’t been able to raise the remain- dia targeting minority and low-in- would not reveal who in DOJ did are near the levers of power and have ing cash by selling some of his multi- come audiences. But the campaign the work to produce the ads, except betrayed the public trust. million-dollar real estate holdings, he had to finish by the end of the year, to say in a fax, “these announce- The only party who has benefit- got another extension. since North Carolina law prohibits ments were developed by Depart- ed from this arrangement is Jim Black. And when that final “deadline” such advertisements during election ment of Justice staff.” Even so, more than 150 people, includ- arrived, even though the state had years. Carrington and I were stone- ing such influential North Carolinians placed a lien on an office building that The advertising was paid for walled in the way the Raleigh as former Gov. Jim Martin and interim with public funds, out of an account media grew familiar with during Black owns in Charlotte with a tax valuation of $1.2 million, the former N.C. State Chancellor Jim Woodward, filled with money won in Easley’s Easley’s eight years as governor. have written to U.S. prison officials, consumer fraud cases. DOJ spokes- The media and political class speaker came to court with empty pockets. asking either to have Black’s sentence men claimed their own staff devel- may be murmuring now, but had commuted (reduced to time served) or oped the ads. they paid attention as the century Not a problem. to move him to a federal prison closer But evidence uncovered by me changed, they would have had an Prosecutors signed off on a deal to Matthews so he can be near his ail- (writing at the time for the now- inkling of what they were getting letting Black turn over two unde- ing wife. defunct Triad World newspaper) with Easley. CJ veloped parcels of real estate in a and by Don Carrington of Carolina Matthews subdivision that had most Let’s hope the Obama adminis- Journal showed that contractors for Paul Chesser is a former associ- recently been valued for tax purposes tration rejects those pleas. Such mis- Easley’s campaign for governor ate editor of Carolina Journal and a around $150,000, or 30 percent of placed leniency would pervert justice created the ads and placed them in special correspondent for the Heartland Black’s outstanding debt. and send a clear message that the rule the media. Institute. Prosecutors accepted Black’s set- of law doesn’t apply to those with tlement based on an offer to purchase connections and clout. CJ JULY 2009 | CAROLINA JOURNAL PAGE 25

EDITORIALS COMMENTARY Fast Way to the Bottom State Government’s Why liberals prefer hiking regressive taxes Twin Deficits ike rainwater, spilled milk, and catastrophic not primarily because it hroughout early June, there As for the personalities, Hunt sewage leaks, longtime politi- reduces the flow of income to private was breaking news on the was a hands-on manager, a worka- cians typically follow the path of decisionmakers but because it reduces two biggest political stories in holic who typically knew more Lleast resistance. the flow of revenue to government NorthT Carolina, the Easley scandal about the day-to-day operations of That’s the main reason there is so decisionmakers. Liberals instinctively and the state budget. While distin- state government than just about much incoherence in public policy — see the latter as intolerable, even if guishable, the two stories do have a everyone else in his administration. at all levels of government — and why they see the former as regrettable. common denominator. Easley seems to have been largely we have the spectacle of some liber- While accepting the need for The current state government a hands-off manager, a recluse who als in Raleigh reportedly scheming to some budget reduction to close reces- has a massive fiscal deficit. The for- delegated substantial authority to head off cuts in education and social sionary fiscal deficits, liberals empha- mer state governor had a massive his aides while spending an increas- services budgets by raising North size the need for more “revenue” or ethical deficit. ing amount of his time traveling, Carolina’s most regressive taxes, on “public investment,” by which they These two deficits recreating, and tending retail sales, tobacco, and alcohol. mean tax hikes. Although all taxes are are interconnected, both to his family’s financial Debating tax fairness is all well essentially income taxes, in that by in cause and in effect. The future. and good, but when it comes time definition they involve transferring common cause was the On policy matters, to make a choice, many modern-day income from those who earned it to administration of Gov. Easley’s inattentiveness liberals would rather have a bigger the government, there are three broad Mike Easley, which began cost the state a lot of mon- government with higher taxes on the categories of taxes based on their with a series of costly ey as reform initiatives in poor rather than smaller government formal structure: income, property, tax increases and new mental health, education, with lower taxes on the poor. and sales. spending programs that and criminal justice went The basic dividing line between So why are few state lawmak- only served to fuel North awry. His lack of scruples fiscal conservatives and fiscal liberals ers talking about higher income taxes Carolina’s boom-and-bust about how to gener- does not concern the distribution of and few local lawmakers talking spending cycle. Early in ate the money to fund his term, Easley had a JOHN his pet schemes led to a the tax code. It’s about the size, scope, about higher property taxes? Because HOOD and power of coercive government. these are the most unpopular forms of chance to break out of the state lottery, corruption, Fiscal conservatives tend to favor a taxation. It’s no accident that income cycle by repudiating the and criminal proceed- expensive spending promises of his ings. And his private dealings with smaller government that leaves more and property taxes are also the most predecessor, Jim Hunt, and balanc- campaign donors, state vendors, money in the hands of the people who transparent, the taxes for which North ing the state budget without a tax and political appointees went from earn it, to spend as they wish. Fiscal Carolinians receive an annual bill. increase. unseemly to unethical to politically liberals tend to favor a larger govern- That’s pretty much all you need Instead, Easley chose to follow disastrous and possibly illegal. ment that transfers more of the control to know if you find the tax-policy de- in Hunt’s footsteps. Hunt created Is North Carolina’s state gov- of income from earners to central bate in Raleigh puzzling. The sales tax Smart Start, so Easley created More ernment broke because Mike Easley planners, to spend as they wish. represents the easiest, quickest path to At Four. Hunt pushed through a and his aides misspent taxpayer A recession, then, is seen as the bottom. CJ massive spending program to raise money on his personal travels and teacher pay and cut class sizes, so arranged for a cushy new job for his Easley did the same. Hunt expand- wife at N.C. State University? No. ed the size and scope of state gov- His personal foibles cost the state ernment, in an earnest belief that it millions of dollars. His public poli- Hot Enough For Ya? would bring economic and social cies cost the state billions of dollars. progress. Easley followed suit. Whether they realize it or Flawed data may have skewed climate debate But the two governors pre- not, legislative leaders struggling sided over North Carolina state to balance the 2009-10 budget are government at different times, and nevertheless boxed in by the Easley hat if the entire debate about “In fact,” Watts continued, “we they brought different personalities scandal. government policy and found that 89 percent of the stations to the job. Taxpayers are angry that their climate change is predi- … fail to meet the National Weather During Hunt’s tenure in former governor (and previous Wcated on raw data that are hopelessly Service’s own siting requirements that the mid- to- late-1990s, economic state legislatures) failed to manage flawed? What if the surface stations stations must be 30 meters or more growth and the tech-led financial tax dollars wisely when times were that collect temperature readings, away from an artificial heating or bubble generated tremendous rev- good. Taxpayers are angry that the including several right here in North radiating/reflecting source.” enue windfalls to the state treasury. former governor and his family ap- Carolina, are in violation of basic The problematic locations of so Hunt was a tax cutter, at least in the pear to have abused their position standards? many climate-monitoring stations months following the Republicans’ for personal gain. Taxpayers are That’s what meteorologist pose the possibility that the apparent electoral victories of 1994, while angry that the Easleys’ machina- Anthony Watts and his team of 650 1.2 degrees Fahrenheit warming trend also creating huge new spending tions have brought N.C. State into volunteers say they have discovered in the U.S. during the 20th century programs. He could afford to prom- disrepute and left the university’s — by inspecting more than 860 of the is overstated, or perhaps entirely a ise everyone a share of the proceeds leadership in disarray. 1,221 climate-monitoring stations that manifestation of flawed monitoring. of what seemed to be the budgetary They are angry, in short, not generate data on temperature trends In North Carolina, his team equivalent of a perpetual motion just at state government’s fiscal in the continental United States. found a Tarboro station next to a machine. deficit but at its ethical deficit. If “We were shocked by what we wastewater treatment tank, a Fayette- It was Easley’s bad luck to the General Assembly now sticks found,” Watts wrote in a recent report, ville station next to a heat-radiating inherit the resulting fiscal mess. But it to taxpayers, again, lawmak- Is the U.S. Temperature Record Reliable?. sidewalk, and a Hendersonville station no one compelled him to respond ers should be prepared to see that “We found stations located next to the next to a parking lot and satellite dish. to state budget woes in 2001-02 anger intensify — and turn into exhaust fans of air conditioning units, Surely all participants in the cli- by raising sales and income taxes. action. CJ surrounded by asphalt parking lots mate-change debate would agree that Easley used “temporary” taxes to and roads, on blistering-hot rooftops, securing reliable temperature informa- paper over a fundamental problem John Hood is president of the John and near sidewalks and buildings that tion over time is absolutely critical for of excess spending. Locke Foundation. absorb and radiate heat.” making sensible policy decisions. CJ PAGE 26 JULY 2009 | CAROLINA JOURNAL

COMMENTARY The ABCs of Regulation

By Derrick Nantz

t least seven major bills are circulating through the North Carolina General Assembly this year to make “improve- ments”A to the Alcohol and Beverage Control (ABC) system. Separate bills currently are being debated, allowing liquor tastings at ABC stores, permitting ABC stores to be open on Sun- days, requiring mergers of unprofitable stores, mandating recycling plans for ABC permit holders, increasing liquor taxes as much as 27 percent, and demanding that private clubs holding liquor licenses “charge membership dues substantially greater than what would be paid by a one time or casual user, that the club restrict use by nonmembers, and that the club provide facilities or activities other than those directly related to the use of alcoholic bever- ages” (House Bill 1228). These proposals come on top of a state ABC board that already dictates where rev- enues must be spent, basic store hours, permis- sible liquor brands, the number of stores per Why Are We Finally Saving? county (if any), liquor prices, mandatory store holidays, products available to consumers (li- quor can be sold; fruit and mixers can’t), along hey’ve been called reckless spenders, fool- like stocks and the saving rate. The more that stocks with the laundry list of regulations restaurants ish financial planners, and the “got to have rise, the more the saving rate falls. So one reason and clubs must follow in order to hold costly it now” generation. Who are these people? behind the big drop in the saving rate from 1985 to liquor licenses. TThey’re you and me, the American consumer. For 2007 was the jump — on trend — in stock portfolios Should these bills be seen as improve- the last 20 years, we’ve been on a spending binge during that period. ments? Would increasing the cost of alcohol, that drove our saving rate to zero. But what about the biggest asset of all: peo- requiring liquor stores to relocate, forcing But recently we’ve changed our ways. We’re ple’s homes? For a long time economists thought restaurants to recycle, and dictating who can now saving more. In fact, the “personal saving people treated their homes differently and didn’t enter private clubs and at what price, constitute rate,” which measures how consider the value in the homes (called home eq- improvements? The only reason bars, clubs, much we save out of our pay- uity) to be a substitute for saving. and music venues currently charge a nominal check and other income, hit 4 However, there’s been a re-examination of the membership fee is that ABC legislation sets percent in the first three months role of home equity and saving since the boom (and arbitrary limits on the percentage of revenue of this year. This is still only half then bust) in home prices this decade. Research- establishments with liquor licenses must gener- of the average saving rate from ers, including yours truly, have recently found that ate in food sales. Should the government pass the end of World War II to the rising home prices in the 2000s could have played a House Bill 1228, the ABC system would outlaw mid-1980s, but it’s certainly bet- role in the plunging saving rate. Homeowners came private clubs that wish to operate exclusively ter than the 0 percent rate earlier to view their homes as big piggy banks that just as bars, prevent members from bringing guests, this decade. kept growing and growing. The attitude became: and mandate that membership dues increase What happened? Why MICHAEL There’s no need to save; my home is doing the sav- to unreasonably high levels. This bill would have we suddenly become more WALDEN ing for me! be particularly burdensome for those living in frugal? Does it have something There’s one other way we can save for the coastal areas who might enjoy entertaining out- to do with the economic condi- future besides watching our financial assets grow or of-town guests at private clubs. tions created by the recession? taking money from our paycheck. This is to spend While some of these bills genuinely would Before I answer these questions, let’s look at money increasing our ability to earn more in the improve the current system, such as permitting why people save and the factors that impact saving. future. Spending money on higher education (com- liquor tastings and Sunday sales, they would Saving is our economic link to the future. munity college and four-year colleges and univer- do little more than tweak a flawed and immoral Saving means a person is giving up the benefit and sities) is like saving because it’s money returned system. The government has no right to control enjoyment of buying things today in order to have many times over from the increased salary the the liquor industry and no right to profit exor- more money to spend later. In economics lingo, better-educated worker eventually earns. bitantly from a self-imposed monopoly. saving is a way to transfer purchasing power from This means that as spending on higher educa- At a time when many are questioning today to tomorrow. tion has gone up in recent decades, the saving rate why the federal government is trying to run the This suggests one big determinant of saving has gone down. automotive and banking industries, we should should be age. The older you are, the less time you With this background, I think we can solve the not hesitate to ask, Why is the state in charge of have remaining to spend, and so you’ll save less saving puzzle. For more than two decades we cut the liquor industry? What the liquor industry and spend more now. Indeed, studies show the ag- our saving rate because we were aging, we were needs is sober and unqualified deregulation ing of our population in recent decades has worked spending more on higher education, and our assets and the abolition of the ABC system. Once this to reduce the saving rate. had been increasing in value. In the past two years happens, North Carolinians will enjoy the ben- Another factor impacting how much we save our assets — especially homes — have taken a big efits of being freed from higher prices, higher is the value of our assets, like stocks, bonds, and hit, and although education still pays, its luster has operating costs for restaurants and bars, and CDs (certificates of deposit, not compact discs!). The been tarnished a bit by the recession. The result: restricted places to socialize. CJ idea is that these assets can be sold in the future and Our saving rate has increased. converted to cash for living expenses. Therefore, the Now, the big question is, will it last? CJ bigger your asset cushion, the less you need to save Derrick Nantz writes from Wilmington. out of your current income. Michael Walden is a William Neal Reynolds Dis- Past research has found a tie between assets tinguished Professor at North Carolina State University. JULY 2009 | CAROLINA JOURNAL PAGE 27 Bettering Our State By Thinking Institutionally

his is an especially demoralizing about how North Carolinians can en- Of course North Carolinians They should respect precedent and time. It seems that everywhere sure those in public positions put the already think institutionally. They worry about the future. Other state around me people are exploiting state’s interests before their own. As contribute to the life of their churches employees have a duty to safeguard publicT trust for private gain. The mo- someone strongly influenced by what and pass on religious traditions. They the rights of their principals — stu- tives of the former N.C. State chancel- academics call the “public choice” serve in the armed forces and honor dents, farmers, patients, prisoners, lor and provost in the Mary Easley school — the idea that individuals the sacrifices of those who served be- and, especially, the taxpayer. They do affair remain unclear. But it is obvi- behave so as to maximize their own fore them. They support their univer- this by following the rules, working ous Mrs. Easley interests — I am attracted obviously to sities long after they have graduated. hard, and reporting anything contrary believed her public the idea of incentives. We should in- Very few Americans are as patriotic as to the state’s interests. This last thing position permitted crease transparency and accountabil- we are. just got easier; former state auditor an egregious end ity in public life and inject flexibility Yet, unfortunately, we don’t Les Merritt and ethics guru and FBI run around the into state employment laws. This will think of our state in this way. To be man Frank Perry have launched the regular process for allow us to reward those who serve sure, there is a North Carolina way Foundation for Ethics in Public Ser- hiring and promo- the state well and get rid of those who of life. NASCAR, ACC basketball, vice to aid whistleblowers. tion, as well as an do not. barbecue, bluegrass music, and sum- Those outside the public sector obscene and pa- But I think we can do more. A mer beach trips are surely at the heart have an obligation to think institution- tently undeserved few weeks ago I was reviewing a book of it. But few people seem to think of ally, too. We all should be aware of salary. by George Mason University’s Hugh ANDY themselves as part of this institution, how the North Carolinians who came At Chapel Heclo titled On Thinking Institutionally. TAYLOR the state of North Carolina. before us made this such a great place Hill, UNC admin- Heclo pushed against my libertarian Perhaps that’s because so many to live — the settlers, the frontiers- istrators created instincts and encouraged my conser- of us are from somewhere else. May- men, those who worked on the farms a center that was vative ones. He argues that we are all be it’s because the tug of other institu- and in the factories. We are part of a essentially a front for former U.S. Sen. members of institutions — groups of John Edwards’ presidential campaign individuals tied together by shared tions frequently pulls us in another di- rich tradition. As we live and work — one we now discover could well values and experiences. Institu- rection. Or maybe it’s because many we should be thinking of those who have been spending money illegally. tions can be formal, like the Rotary of our leaders are setting such a bad come after us — our children and Oh, and I just got back from the Club, IBM, and the Taylor family, or example. Look at the choices made by their children, the people who will mi- U.K., where MPs are embroiled in an informal, such as a neighborhood people like Jim Black, Frank Ballance, grate here. We have an obligation to expenses scandal. Legislators are re- poker game or people who practice and Meg Scott Phipps, as well as the improve the state and leave it a more ported to have taken taxpayer money etiquette. As part of any institution, individuals discussed earlier. prosperous, healthy, and enjoyable to pay for things such as pornographic we should resist self-obsession and It would be better if we did start place to live. Each of us should add movies and, I kid you not, a moat to be a little more conscious of collective thinking this way, though. Govern- value, not subtract it. CJ be cleaned. interests. We should respect the con- ment officials must understand fully These events, particularly those tributions of those who came before their responsibilities to their constitu- Andy Taylor is Professor and Chair at my own institution, have saddened us. We should understand our obliga- ents and commit to a policymaking of Political Science in the School of Public me greatly. tions to those who come after us. We process characterized by transparency, and International Affairs at N.C. State They also have got me thinking should think institutionally. civility, candor, and thoughtfulness. University. How Do You Get to a Balanced Budget? he North Carolina Constitution and boosting taxes on cigarettes and Democrats and 10 Republicans, with a “bridge” to keep state government mandates that the state budget alcohol by $500 million. Democrats serving as chairs — to going for a time certain until a budget be balanced. While the federal The General Assembly then work out the differences in the two agreement is reached. A continuing governmentT can run a deficit, state began its work. The chambers take versions of the budget. Particular resolution that maintains government spending has to equal the available turns, and this biennium was the Sen- sticking points this year are tuition at 15 percent less than the current revenue. It is the responsibility of the ate’s turn to go first. With revenue de- increases, how many Department level of spending remains in effect General Assembly to pass a balanced clining, the Senate passed a $20 billion of Public Instruction positions to until a new budget is passed. budget. Once the budget in barely three weeks. It in- eliminate, how much to cut services in Meanwhile, negotiations con- budget becomes cluded cuts to More at Four and Smart Health and Human Services, and the tinue with a goal of cobbling together law, it is the Start, layoffs for 700 state employees, makeup of the new taxes. a budget that can garner the necessary governor’s respon- and $500 million in tax increases with- Some oppose increasing the sales votes to pass. Once an agreement is sibility to keep it out specifying where the new money tax because it’s regressive; some balk reached, the vote will go to the floor of balanced. How do would come from. Senators passed at boosting business taxes during a each chamber for an up or down vote. we get there? the hot potato with all Democrats and time of record-setting unemployment No amendments will be allowed. North Caro- three Republicans voting yes and then rates; some resist hikes in income tax When the budget passes the lina sets a budget sent it to the House. rates because they redistribute wealth; General Assembly, it goes back to Per- for two-year time The House began its delib- some worry that cigarette taxes will due, who must sign it into law or veto periods beginning BECKI erations April 14, and took a full two hurt North Carolina’s tobacco in- it. She’s part of the negotiations, as her in odd-numbered GRAY months to come up with a version that dustry; beer and wine drinkers ask recent demands for $1.5 billion more years and coincid- reached a final vote on June 13, just why they might be singled out to in revenue illustrate, to make sure she ing with each new after midnight. As revenue projec- pay higher prices — and some are can sign whatever reaches her desk. General Assembly, where members tions continued to decline, the House opposed to any tax increases in this With Perdue’s signature, North are elected for two-year terms begin- proposed $18.6 billion in spending stagnant economy. Carolina will have a budget spending ning in odd-numbered years. The with $870 million in new taxes and A budget must be passed at the billions of taxpayer dollars on gov- governor takes the first shot based on fees, along with increases for univer- conclusion of the previous biennium ernment programs over the next two revenue projections prepared by the sity tuition and $3 billion of program budget. The 2008-09 budget ran out years. The whole process will start Office of State Budget and Manage- cuts, mostly in education and social on June 30, and a new budget must again in 2011 with a new General As- ment. Gov. Bev Perdue delivered her services. All Republicans and two be in place to keep state government sembly. CJ 2009-11 proposal to the General As- Democrats voted no. running. A short-term alternative sembly on March 17, a $21 billion bud- The budget then moved to a when the conference committee can- get that reached balance by reducing conference committee made up of not reach a compromise is done with Becki Gray is vice president for out- unfilled positions in state government members of both chambers — 79 a continuing resolution that provides reach at the John Locke Foundation. PAGE 28 JULY 2009 | CAROLINA JOURNAL Parting Shot Easley and Campbell Headed for a ‘Dude-vorce’ (a CJ parody) By Luanne Platter fight and has officially become a dude- Culture Correspondent vorce.” Mary said she turned to Mike RALEIGH and said, “A dude-vorce — that’s you he federal investigation of for- and McQueen.” mer Gov. Mike Easley and his On TV, the two buddies resolve good friend Raleigh business- their differences, but Mary Easley said Tman McQueen Campbell has created that is not likely to happen in real life such extreme tension between the two with Mike and Campbell. When the men that they are going through a N&O revealed Campbell admitted “dude-vorce,” said Easley’s wife Mary. playing a key role in getting Mary a Breaking months of silence by job at NCSU, she said Mike just lost it. agreeing to an interview with Caro- “Ratting on your bro is unforgivable,” lina Journal, Mary Easley said, “Mike he screamed according to Mary Easley. believes the feds are responsible for She said Mike believes Campbell is co- ending a model ‘bromance’ that lasted operating with the feds and sharing in- eight years, but I think the relationship formation that should have remained would eventually have soured after CJ parody graphic secret. Mike left office and the favor-trading chairman of the N.C. State Univer- bell is a pilot and owns three aircraft. So how is Mary Easley coping environment deteriorated.” sity Board of Trustees. Campbell also Mary said she first heard the term with the situation? Since she lost her Mary Easley noted that “bro- bragged that his political connections “dude-vorce,” a play on the word di- six-figure-salaried position at N.C. mance” is a term used to describe a have facilitated environmental permits vorce, on a recent episode of the ani- State, she’s had her eye on the wacky very close, but not physical, relation- for coastal developments he repre- mated television series “King of the reality show “I’m a Celebrity…Get Me ship between two males. “Sort of like sented. Through Campbell, Easley re- Hill” that she was watching with her Out of Here,” an NBC series where ce- Butch Cassidy and the Sundance Kid, ceived free private air transportation, a husband. The series centers around lebrities hang out in the rugged Costa Matt Damon and Ben Affleck, and deal on a waterfront lot, and a job for Hank Hill, a propane salesman in a Rican rainforest to raise money for Barack Obama and Rahm Emanuel,” his wife Mary. small Texas town, and his family and charity. she explained. “Mike and McQueen were close friends. The current group of celebs in- The friendship between Easley and it hurts me to see Mike hurt,” she In the episode the Easleys cludes Patty Blagojevich, wife of dis- and Campbell has been chronicled in said. “Mike especially loved flying watched, the relationship between two graced former Illinois Governor Rod the recent Raleigh News & Observer with McQueen. Sometimes those two of Hank’s male friends had deteriorat- Blagojevich. “Why not?” Mary asked series entitled “Executive Privilege.” would just take off and fly to New York ed to the point where Hank’s wife Peg- about appearing in the reality series. “I Through Easley, Campbell became or Florida for dinner,” she said. Camp- gy declared, “This has gone beyond a am tougher than her.” CJ

We Have North Carolina Talking!

Every week, hundreds of thousands of North NC SPIN has been called ‘the most intelligent THE NC SPIN TELEVISION NETWORK (Partial) Carolinians watch NC SPIN for a full, all-points half-hour on North Carolina TV’ and is consid- WLOS-TV ABC Asheville Sundays 6am discussion of issues important to the state. Poli- WMYT-TV TV12 Charlotte Sundays 10am ered required viewing for those who play the WJZY-TV CW46 Charlotte Sundays 6:30am tics • Schools • Growth • Taxes • Health Trans- political game in the Tar Heel State — whether WFMY-TV CBS Greensboro Sundays 6:30am Cable-7 Independent Greenville Saturdays 9pm portation • Businesss • The Environment they are in government, cover government, Mondays 6pm want to be in government, or want to have the Tuesdays 6:30pm WITN-TV NBC Washington-New Bern Sundays 12am A recent poll showed 48% of North Carolina ear of those in government. WRAL-TV CBS Raleigh-Durham Sundays 6:30am ‘influentials’ — including elected officials, lobby- WRAL-DT CBS Raleigh-Durham Sundays 6:30am WRAL News Channel Raleigh-Durham Tuesdays 6pm ists, journalists, and business leaders — watch If your company, trade association, or group Thursdays 6:30pm NC SPIN, with 24% saying they watched the has a message you want political or business Sundays 3:30am, 4pm, 6:30pm, show ‘nearly every week.’ Thousands of North leaders to hear, NC SPIN’s statewide TV and WRAZ-TV FOX50 Raleigh-Durham Sundays 8:30am Carolinians also visit NCSPIN.com and get the WNVN-TV Roanoke Rapids Saturdays 11:30am radio networks are the place for you to be! WHIG-TV Rocky Mount Sundays 10am, 2:30pm latest political news, rumors, and gossip from its Call Carolina Broadcasting (919-832-1416) for Cable 10 Roxboro Sundays 6pm WILM-TV CBS Wilmington Sundays 6:30am weekly newsletter “Spin Cycle.” advertising information about TV or radio. Mountain News Network Sundays 9am (WLNN Boone, WTBL Lenoir) Mondays 5:30pm Tuesdays 12:30pm