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 real es- 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.