INSIDE THIS ISSUE: DEPARTMENTS Bills address North Carolina 2 C A R O L I N A Education 9 issue of Higher Education 13 athletics for Local Government 16 Books & the Arts 20 homeschool- Opinion 24 Parting Shot 28 ers /9 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION JOURNALFROM THE JOHN LOCKE FOUNDATION May 2009 Vol. 18. No. 5 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Easley Land Deal Gaining Interest Public Outrage Media and feds Accompanying also interested in Revaluations

By David N. Bass Easley automobiles Associate Editor By Don Carrington RALEIGH Executive Editor ome foreclosure and unemploy- RALEIGH ment rates are on the rise in ederal authorities and state me- North Carolina, but a new batch dia have turned their attention ofH property revaluations, and the tax to a Carteret County real estate hikes that often accompany them, could Fdevelopment in which former Gov. make life even more difficult for some Mike Easley bought a lot in 2005. residents. Carolina Journal first reported in By law, counties must revaluate 2006 on Easley’s purchase of a lot in property at least every eight years, al- the Cannonsgate development. An though commissioners can opt to re- analysis of other transactions showed valuate earlier. The new values must be Easley got what The Charlotte Observ- approved by Jan. 1 of the year they take er called a “sweetheart deal.” A recent photo of the Cannonsgate development shows roads and other amenities effect. That requirement is causing angst The federal interest in the Can- have been added since 2006. Easley’s lot borders the Intracoastal Waterway and in North Carolina counties where public nonsgate development came after The the entry to the marina. (CJ photo by Don Carrington) outrage has prompted commissioners to News & Observer of Raleigh reported rescind recent appraisals. owned by auto dealer and NASCAR choice waterfront lot at a lesser price that investigators are looking into the The problem is tied to the slumping team owner Rick Hendrick of Char- than what similar lots sold for in the free cars that auto dealers have pro- economy. Property values had consistent- lotte. Easley purchased the cars after Cannonsgate development. vided to Easley’s family. ly risen in recent years, but the mortgage the news reports were published. A spokesperson for Cannons- Easley’s son, Michael Jr., was crisis put the real-estate market in a tail- Federal investigators appear to gate developer William G. Allen ac- driving a car owned by Fayetteville spin. So homeowners are angered at the area car dealer Bobby Bleecker. Ea- be looking into the December 2005 knowledged an inquiry from federal sley’s wife, Mary, was driving a car Carteret County real estate trans- action in which Easley obtained a Continued as “Easley,“ Page 2 Continued as “Public,” Page 3 Tea’d Off: Disgust Spreads Over Spending PAID By David N. Bass RALEIGH, NC U.S. POSTAGE Associate Editor PERMIT NO. 1766 NONPROFIT ORG. RALEIGH s millions of Americans flocked to the post office April 15 to file their last-minute tax returns, hun- dreds of thousands of Americans flocked to state capitals,A public parks, and town halls with a much different goal in mind — to protest government bailouts, stimulus packages, and pork-barrel spending. It was the latest development in a movement that limited-government advocates say reflects renewed outrage at the tax-and-spend mentality in Washington. Ignited in February when CNBC pundit Rick Santelli suggested a Chi- cago “tea party” to decry wasteful government spending, the idea has caught on in hundreds of cities and towns from coast to coast. And its criticism is not limited to one political party, either.

Tea Party protesters at the N.C. State Capitol on April 15 made it The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 Continued as “Tea’d Off,“ Page 4 clear where they stand on taxes. (CJ photo by Don Carrington) PAGE 2 MAY 2009 | CAROLINA JOURNAL C a r o l i n a Easley Autos, Land Deal Gaining Interest Journal Continued from Page 1 family residential properties are now selling for approxi- authorities involving a specific lot purchase at the develop- mately 15 percent less than they did at the end of 2005,” ment. Easley appointed Allen and three others involved in he said. Nicholson said he knew little about Cannonsgate. Rick Henderson the project to major state boards. All have been major politi- Several Carteret County realtors who were familiar with the Managing Editor cal contributors to Easley. project did not want to speak on record. Don Carrington Carolina Journal first reported in 2006 that Easley pur- Executive Editor Connections chased a .36-acre waterfront lot in the Cannonsgate devel- David N. Bass, Mitch Kokai opment for $549,880, a price that appeared low when com- Easley bought the lot from Cannonsgate developer R. Michael Lowrey pared to the other lots in the 525-lot development. Records A. North Development Inc. of Matthews. Randoph M. Allen Associate Editors indicate that he paid 10 percent down and financed the is listed as the company president, according to the North remainder through a $494,000 mortgage loan from Branch Carolina Secretary of State office’s corporation records. In Chad Adams, Jana Benscoter Banking & Trust. addition to Cannonsgate, Allen and his brother, William Kristen Blair, Roy Cordato Following that story, The Charlotte Observer published G. Allen, have developed large waterfront communities in Becki Gray, Paige Holland Hamp a similar story that concluded Easley got a favorable deal. North Carolina, South Carolina, Florida, and Texas. David Hartgen, Sam A. Hieb Easley spokeswoman Cari Boyce told the paper that Eas- In June 2005 Easley appointed Randolph Allen to a Lindalyn Kakadelis, George Leef ley did not receive special treatment. ”The governor paid six-year term on the N.C. Wildlife Resources Commission. Karen McMahan, Karen Palasek the listed asking price for the lot. Easley had previously appointed Susan Robinson, Marc Rotterman Mike Rouse, Jim Stegall The price was set and non-nego- William Allen to the same com- George Stephens, Jeff Taylor tiable,” she said at the time. She mission. Michael Walden, Karen Welsh also said he bought the land as During a break at a Decem- Hal Young, John Calvin Young an investment. ber 2006 meeting of the WRC in Contributors One year after Easley’s Raleigh, Randoph Allen briefly purchase, the Carteret County discussed the project with CJ. Clint Atkins, Abby Alger Tax office assigned a value of Even though Allen’s signature Laura Barringer, Katie Bethune $1,198,245 to the lot that borders appears on Easley’s deed, Allen Nick Chandler, David Koon the Intracoastal Waterway and said he had nothing to do with Shelley Gonzales, Jessica Thompson the entrance to a new marina. setting the price for Easley’s lot. Editorial Interns Easley’s lot is the second-most He said the marketing company valuable lot in the development. set the price, but Allen later ac- Published by The development’s roads and knowledged that his brother, The John Locke Foundation other infrastructure are com- William G. Allen, controlled the 200 W. Morgan St., # 200 plete, but only one house is cur- marketing company, Southeast- Raleigh, N.C. 27601 rently under construction in the Promotional sign in front of the Cannonsgate devel- ern Waterfront Properties. Last (919) 828-3876 • Fax: 821-5117 development. opment in 2006. (CJ file photo) year, the lead broker for South- www.JohnLocke.org CJ was unable to talk with eastern, Mace Watts, refused to Easley about Cannonsgate. He recently joined the McGuire discuss the details of Easley’s purchase. Jon Ham Woods law firm and works out of the firm’s Raleigh office. Real estate investor Lanny Wilson of Wilmington, Vice President & Publisher Messages left on his office voicemail were not returned. through his company Cannonsgate Investments LLC, pro- vided $12.5 million in private financing for the Cannonsgate John Hood Setting value project. Easley appointed Wilson to the Real Estate Com- Chairman & President Carteret County Assistant Tax Administrator Ralph mission and to the N.C. Board of Transportation. Bruce Babcock, Herb Berkowitz Foster told CJ that he stands behind the $1,198,245 value Real estate broker D. McQueen Campbell of Raleigh Charlie Carter, Jim Fulghum placed on Easley’s lot. “Our job is to come up with a fair has taken responsibility for introducing Easley to the invest- Chuck Fuller, Bill Graham market value.” ment opportunity. He told CJ that he was a buyer’s agent Robert Luddy, Assad Meymandi He said for mass appraisals such as the periodic coun- for Easley. However, about the time of Easley’s purchase, Baker A. Mitchell Jr., ty revaluations tax administrators use standard practices Campbell developed a contractual employment relation- Carl Mumpower, J. Arthur Pope developed by The International Association of Assessing ship with the Allens. Thomas A. Roberg, David Stover Officers. North Carolina counties are required to do revalu- Based on a recent filing with the State Ethics Commis- Robert Stowe III, J.M Bryan Taylor ations at least every eight years, but may choose to do them sion, he holds the title of director of acquisitions for Water- Andy Wells front Communities Inc., owned by the Allens. Board of Directors more frequently. The purpose of the revaluations is to update the prop- In September 2008 CJ asked Campbell if he knew who reserved the Cannonsgate lot for Gov. Easley and who Carolina Journal is a monthly journal erty values that may have changed at varying rates since the of news, analysis, and commentary on state previous revaluation. The individual county commissions set the price. “I represented Gov. Easley in the transaction and local government and public policy issues set the tax rates. Carteret County property taxes make up 44 where he purchased a residential lot in Cannonsgate. I was in North Carolina. percent of the county’s total revenue. a buyer’s agent for Gov. Easley and had nothing to do, nor ©2009 by The John Locke Foundation If an individual disagrees with the revaluation, he can any input in, the pricing of the lots,” he said. Inc. All opinions expressed in bylined articles first ask for an informal review by the tax office. If still not Easley appointed Campbell to the N.C. State Univer- are those of the authors and do not necessarily satisfied, he can take his case to the county’s Board of Equal- sity Board of Trustees in 2001 and reappointed him in 2005. reflect the views of the editors of CJ or the ization and Review. Then, if still not satisfied, he can take Campbell was elected chairman of the NCSU board in 2007. staff and board of the John Locke Foundation. his case to the N.C. Department of Revenue’s Property Tax Easley also appointed Campbell’s father, D. M. Campbell Jr., Material published herein may be reprinted as to the N.C. Board of Transportation in 2001. He appointed long as appropriate credit is given. Submis- Commission. Finally, if still not satisfied with the aforemen- tioned administrative appeal process, he can then petition McQueen Campbell’s brother, Brian Campbell, to the Aero- sions and letters are welcome and should be nautics Council, an aviation advisory board. directed to the editor. the North Carolina Court of Appeals for a judicial review. Campbell and his relatives have ownership interests CJ readers wanting more information Cannonsgate has 525 lots and 75 individually owned between monthly issues can call 919-828-3876 boat slips. Thirty-four individual lot owners appealed their in at least 10 lots and six boat slips in Cannonsgate. and ask for Carolina Journal Weekly Re- Jan. 1, 2007, value as set by Carteret County. Four of those Other properties port, delivered each weekend by e-mail, or visit values were adjusted downward. Easley did not appeal the CarolinaJournal.com for news, links, and ex- value assigned to his lot. In addition to his Cannonsgate lot Mike Easley and his clusive content updated each weekday. Those Daniel L. Nicholson, the current president of the Cart- wife Mary own homes in Southport and Raleigh. The Ra- interested in education, higher education, or eret County Association of Realtors, told CJ that county real leigh home just underwent a major renovation. They also local government should also ask to receive estate values probably peaked at the end of 2005. co-own another home on Bald Head Island with Ealsey’s weekly e-letters covering these issues. “Excluding condominiums and townhomes, single- brother Henry. CJ MAY 2009 | CAROLINA JOURNAL PAGE 3 Public Outrage Accompanying Revaluations in Some Counties Continued from Page 1 increased by an average of 25 per- prospect of paying taxes on property cent over the past four years, angry that’s listed in county records for more residents have formed a group called than any potential buyer would pay Orange County Tax Revolt. Members for it. packed out several recent county com- “I know people who sweat out mission meetings. the tax bill every year. People can’t pay AG weighs in it,” said Thomas Harrington, a lawyer from Eden. He is chairman of a new In April, the attorney general’s grass-roots committee that is circulat- office and the Department of Revenue ing a petition to fight the revaluations. issued memoranda arguing that coun- Rockingham County’s most re- ties may not rescind revaluations after cent revaluation, which commissioners having approved them before the first ended up scuttling, would have raised of the year. The memos prompted at the value of some properties by sev- least one county, Harnett, to forgo ef- eral hundred percent, Harrington said. forts to drop the revaluations. That, mixed with high unemployment “The Machinery Act contains no and foreclosure rates, threatens hom- authorization for a board of county eowners. commissioners to rescind its advance- “You couldn’t sell a dozen Krispy ment of a general reappraisal or its ap- Kremes in Rockingham County right proval of a schedule of values once that now,” he said. “We are in terrible schedule becomes effective on 1 Janu- shape.” ary. Thus, the county must proceed in The dire economic picture is fu- accordance with the schedule of values eling local opposition to revaluations. Stanly counties all voted unanimously year threshold and have no choice but approved by the board of county com- Almost half a million North Carolin- earlier this year to put off their revalu- to revaluate this year: Alamance, Dup- missioners,” wrote Kay Hobart, special ians were unemployed in March, ac- ations after initially deciding to move lin, Edgecombe, Gates, Lenoir, Martin, deputy attorney general, in an adviso- cording to data from the Employment forward. Due to Mitchell, Nash, ry memo dated April 8. Security Commission. The unemploy- the eight-year Polk, and Warren. Hobart also pointed out that a ment rate in a number of counties is threshold, Rock- Just be- higher revaluation does not always approaching the mid-teens. ingham would not Several counties cause a county translate into higher taxes. “A county Rockingham, where unemploy- have had to re- revaluates prop- always has the option to reduce its tax ment stands at 13.5 percent, is one of valuate until 2011, are considering erty doesn’t mean rate to counterbalance a higher ap- three counties that have decided to put while Caldwell taxes will go up. praisal,” she wrote. off property revaluations for at least and Stanly could putting off their The county com- Harrington says he doesn’t buy two years. have waited un- revaluations missioners set the that argument. “I don’t care what they That move has spawned a con- til 2013. Many tax rate and can do with the tax rate. The folks who troversy of its own. Since revaluations counties revalu- until the economy adjust it to fit the have their property go up 200 or 300 must be approved by the first of the ate more regularly new revaluations percent are going to pay more,” he year, the state government says that so that property rebounds in the budget. Ho- said. it’s too late for counties to rescind their owners won’t be meowners also can Public outrage over the revalua- decisions to proceed. This places com- rocked by dramat- appeal apprais- tions has prompted a bipartisan group missioners, already facing pressure ic increases in their tax assessments. als if they think the county misjudged of state legislators to jump into the fray. from local residents, in even hotter wa- According to preliminary data their property value. Rep. Nelson Cole, D-Rockingham, has ter. from the N.C. Department of Revenue, That’s not good enough for resi- introduced legislation that would Rockingham, Caldwell, and 10 counties are already at the eight- dents worried about higher taxes. amend statutory law specifically to al- Rockingham County commissioners low counties to rescind their revalua- got an earful Feb. 9 from 750 residents tions. Books authored By JLF staFFers who attended a public hearing devot- A House local government com- ed to the revaluations. mittee approved the bill by unanimous “[T]he people cannot afford a tax voice vote April 29, sending it to the Efficiency and Externalities increase,” said Michael Smithwick, a House Finance Committee. Reidsville resident who spoke at the “The citizens of the state don’t in an Open-Ended Universe meeting. “An increase will take food off the tables and medicine out of their need this to be taking place right now medicine cabinets. It will hurt small in these economic times,” Cole said businesses because people will not be prior to the committee’s vote. able to have the money to buy the ne- Rep. David Lewis, a Harnett cessities of life.” County Republican and co-sponsor of Two weeks after the public hear- the legislation, said in a press release ing, commissioners voted to rescind that the revaluation process is flawed. By Roy Cordato the revaluation, even after receiving an “Requiring people to pay more of Vice President for Research opinion from a UNC public law profes- their already strained budgets in taxes John Locke Foundation sor advising that it was too late for the due to inflating their property values is county to scrap the new values. not wise policy,” he said. “Cordato’s book is a solid Several other counties, including The Orange County Board of performance, demonstrating Harnett, Orange, and Forsyth, have Commissioners also recently heard impressive mastery of both considered putting off their revalua- from Rep. Bill Faison, D-Orange, who the Austrian and neoclassical tions, but in each case commissioners urged the county to rescind its most re- literature.” decided to proceed. cent property appraisals. Israel Kirzner Many counties have seen grass- “We’re in the worst time since the Cato Journal roots resistance to the revaluations. Depression, and people are scared,” www.mises.org In Orange County, where the tax as- Faison said, according to the Durham sessor says that property values have Herald-Sun. CJ PAGE 4 MAY 2009 | CAROLINA JOURNAL Tea’d Off: Disgust Over Spending Spreads to North Carolina Continued from Page 1 “Neither party tells the truth about budgets or taxes,” said Mike Munger, a Duke University po- litical science professor who spoke at a Tax Day tea party in Raleigh. “Until voters stop rewarding politi- cians for telling lies, the lies are going to continue.” By some estimates, around 1 million Americans took to the streets April 15 in locally organized rallies, modeled after the famous Boston Tea Party in which American colonists protested a British-imposed tax on imported tea. About 15,000 taxpayers turned out in Atlanta for an event that included headliner talk radio host Sean Hannity, while thousands attended tea parties ranging from New York City to Bakers- field, Calif. In Raleigh, protesters gathered at the Federal Courthouse at 4 p.m. holding signs that bore such slogans as “Don’t spread my wealth, spread my work ethic,” and “Born free, taxed to death.” They later joined thousands more on the grounds of the State Capitol, forming a crowd that overflowed onto the surrounding streets. “It was astounding,” said Melodye Aben, coor- dinator for the Raleigh event. “The only issue that we had for the whole thing was that our sound system wasn’t good enough for the size of the crowd.” Participants in the Raleigh tea party were clearly miffed at how the tea party protesters had been characterized Statewide, around 20,000 North Carolinians by the national media. (CJ photo by David N. Bass) attended rallies in over 30 cities and towns — from comes from normal citizens donating their time, said events or even debating those in attendance. Franklin in the mountains to Kill Devil Hills on Daniel Martinez, another tea party coordinator in the coast. More rallies are planned for the coming North Carolina. Political clout months, including another in the state capital July 4. “Everybody has jobs, everybody works long The economic situation and heightened fears of Citizens participate hours, some have kids, and they’re all coming to- tax hikes are two factors driving participation in the gether on this,” he said. tea parties, according to North Carolina State Uni- Although backed by grass-roots conservative Martinez says he has no political affiliation, but versity political science professor Andrew Taylor. groups such as Freedom Works, tea parties have at- overspending at the federal level prompted him to “People understand that this is a weapon that tracted a crosssection of Americans fed up with what get involved. “I don’t see how you can spend your policy-makers have, and they are talking seriously they view as reckless spending. The movement got way out of debt. I can’t do that as a private citizen,” about tax increases of all different types,” he said. its start in October when a blogger proposed send- he said. Much of the tea partiers’ ire is leveled at federal ing tea bags to the White House and Congress to Dallas Woodhouse, state director of the North spending, which, fueled by a series of economic in- protest a $700 billion mortgage industry bailout that Carolina chapter of Americans for Prosperity, assist- terventions designed to jump-start the economy, has was backed by former President George W. Bush and ed with several tea parties in the state. He said “a reached record levels in recent months. Large out- some congressional Republicans. whole new crop of people” is getting involved and lays for government-sponsored health care and en- Nearly all of the manpower behind the events coordinating events in cities and towns. ergy policies included in the president’s budget have Liberal pundits, however, claim Republican Party operatives are instigating the movement. stoked fears among some economists of inflation and Economist Paul Krugman, writing in The New York unsustainable debt. Times, called the tea parties “fake grass-roots” events The Congressional Budget Office estimated in “manufactured by the usual suspects.” March that deficits will total almost $1.7 trillion this The Obama administration says participants year and $1.1 trillion next year, the largest percentage are unrepresentative of the American public. Ap- of Gross Domestic Product since World War II. The pearing on CBS News’ Face the Nation April 19, CBO also predicted that Obama’s proposed budget White House senior advisor David Axelrod called would double the deficit during the next decade. the tea parties “unhealthy.” Those stark economic conditions are bringing “The thing that bewilders me is [that] this pres- people out who have never participated in rallies ident just cut taxes for 95 percent of the American before, says Aben. “Every day folks — moms, dads, people,” he said. “So, I think the tea bags should be grandparents — have said enough,” she said. directed elsewhere, because he certainly understands Despite widespread interest, Congress has giv- the burden that people face.” en the tea parties a mixed reception. Several dozen Analysts point out that Obama’s tax relief plan elected officials, including U.S. Rep. Sue Myrick, R- includes a series of tax credits that redistribute wealth N.C., spoke at rallies on Tax Day. Sen. David Vitter, from Americans who pay income taxes to those who R-La., sponsored a resolution recognizing the events. do not, and that the president plans to let the Bush But many lawmakers have been silent. administration tax cuts expire. Taylor said the tea parties could have some “That was clearly fiction when he said it,” said political implications in 2010. “A lot of it is going to Munger of Obama’s tax cut pledge. “Our political depend on how the economy progresses in the next system chooses the candidate who can tell the big- six to nine months, as people start to attribute perfor- gest whopper with a straight face.” mance to the Obama administration,” he said. Conservative observers also have plenty of crit- Tax protests have been done periodically icism for the mainstream media, which they claim ei- throughout American history and are a good way of ther ignored the tea parties or portrayed participants generating publicity for policy goals, Taylor added. One protester’s sign alluded to events at a John Kerry as right-wing extremists. Critics say that, in several But according to Munger, the movement needs speech at the University of Florida in 2007. (CJ photo instances, reporters became the centerpiece of their to go beyond protest and latch onto a positive mes- by David N. Bass) own stories, using derogatory terms to describe the sage in order to be successful. CJ MAY 2009 | CAROLINA JOURNAL PAGE 5 Legislation Would Give Some School Boards More Flexibility

By Mitch Kokai The question, of course, is how much? Associate Editor But what we can do, for those districts RALEIGH that have earned flexibility, for those s many as 10 North Carolina districts [that] really have manage- public school systems could rial capacity to try to move a true step get more flexibility in spending forward, is to say to them what we’ve taxpayers’A money under a proposal tried to before but have never really moving through the state House. given them the authority to do. That is That flexibility could extend to a pilot that is actually going to say to teacher pay under an amendment ad- you: Here is your allocation. You may opted despite concerns from the state’s truly use [it] how you see fit for your largest teachers group. community to best advance you on a “Those of us who’ve been on yearly basis academically.” school boards have made this argu- ment for a long time, that if we were High performers only given a little more flexibility in the use of funds, we might move from being Some Education Committee truly good to great,” said Rep. Rick members questioned the decision to fo- Legislation would create a pilot program to test giving more flexibility to school boards. Glazier, D-Cumberland, while present- cus only on “high-performing” school districts. “I understand the concept that ing House Bill 584 to the House Edu- pave the way for local school systems to start adding them in.” poor managers you don’t want to give cation Committee April 9. “But there to offer higher pay for certain teachers. “For purposes of getting the bill flexibility to, but on the other hand, our are limitations placed on the categories “Suppose this great school sys- out today and really staying attuned when we [in the General Assembly] tem is really able to lower noninstruc- to the philosophy of flexibility means low-performing schools are the ones send funds, and for districts that have tional support positions or do some- flexibility … we may not like every- who most need improvement,” said earned their flexibility, they ought to thing else to save money, would the thing they do, but it’s not flexible if we Rep. Hugh Blackwell, R-Burke. “By be able to use that flexibility.” bill allow them to have differential pay start telling them what they can’t do,” limiting the flexibility to school sys- Glazier and three fellow Demo- for special ed or math or science teach- Glazier added. “And so I would ask tems that are already high-performing, crats sponsored H.B. 584, which would ers, and to pay them no less than the that you pass the Stam amendment, I wonder if we are depriving ourselves create a pilot program to test local existing salary structure?” Stam asked. and we’ll continue the discussions on of some important data, that we ought school budget flexibility. The Educa- “It’s important that the districts how we limit that later.” to have some low-performing schools tion Committee approved the bill on have full flexibility to do the things and a cohort of them that are not in- a voice vote and sent it forward to the they need to achieve,” Glazier re- Pilot program cluded in the flexibility to determine if even in those situations, flexibility may budget-writing Appropriations Com- sponded. “In that case, it seems to me The State Board of Education help even a poor manager manage bet- mittee. that the capacity that exists now in bo- and Department of Public Instruction ter.” “Some of us have been arguing nusing and differential [pay] is some- would choose 20 of the state’s 115 lo- Rep. Darrell McCormick, R-Yad- on all sides of the spectrum that giving thing that a district could explore.” cal school systems to participate in the kin, raised similar concerns. “As this is good managers flexibility to do things The N.C. Association of Educa- pilot, according to the bill’s text. Each a pilot program — not something that’s differently than the rules might other- tors raised a red flag about Stam’s of the 20 districts would be “high-per- being implemented across the board wise prohibit them from doing will get a m e n d m e n t . forming,” based — wouldn’t it serve our purposes to you better student outcomes and bet- “We’re excited on an evaluation gather data from how more flexibility ter student achievement,” Glazier said. about the bill, and that factors in test in the low-performing schools might “That’s a good experiment.” we think it’s a good NCAE says it’s scores, gradu- improve their situation just as much as Some supporters cited the ex- idea,” said Brian ation rates, No how more flexibility might improve or ample of current rules for North Caro- Lewis, NCAE gov- concerned about Child Left Behind impact the high-performing schools?” lina’s charter schools. ernment relations the idea of giving results, teacher “This bill sort of puts me in mind specialist. “How- turnover, sound Concerns about surrendering of a day in the future when we might ever, one of the is- flexibility to offer b o o k k e e p i n g , more authority to low-performing be able to draw on some of that flex- sues that we didn’t percentage of lo- schools might endanger H.B. 584, Gla- ibility that has been given to charter sign off on is the differentiated pay cal money spent zier responded. That’s why he shied schools to feed flexibility into the regu- idea that some of outside the class- away from including them in the pro- lar [Local Education Agency],” said the flexible pilots room, and other posal, he said. As the bill moves for- Rep. Susan Fisher, D-Buncombe. would be able to factors. ward, Glazier said, he would be will- Glazier agreed. “In the charter offer differentiated pay.” Half of the districts in the pilot ing to discuss a second pilot focusing schools that are working well … flex- The state’s largest teachers group program would operate with the same on some low-performing school sys- ibility used well by good managers has already has expressed its willingness budgetary restrictions as the rest of the tems. produced innovation and results,” he to study differentiated pay in the con- school systems across North Carolina. The pilot project could “advance said. “Hopefully, we’re going to see the text of another bill Glazier is sponsor- The other half, a total of 10 districts, student achievement for all students,” same thing at the LEA level. That’s the ing, Lewis said. He asked committee would get more leeway to use state Glazier said. “There are a lot of dis- goal obviously and the theory as it’s members to defer a vote on Stam’s pro- funds in ways their local school boards tricts that do not have the administra- been espoused.” posal. and superintendents determine them- tive capacity to do this and ought not Real flexibility is the key to a suc- “NCAE could come back to the selves. The pilot program would con- be given this flexibility,” he said. “I’d cessful pilot project, Glazier said. “It table with Rep. Glazier, and we could tinue for three years, Glazier said. be frightened to give some districts has to be very tightly controlled in the work out maybe some ideas where The state would spend $150,000 the flexibility. But there are a number sense of monitoring,” he said. “But if teachers and school personnel could be in the next budget year to pay for an that have earned it. And we’ll never it’s going to be an experiment, we all at the table as we explore differentiated “independent research organization” know — if we don’t give them that — can’t say, ‘Yes, you can have flexibility, pay in these pilot areas,” Lewis said. to help conduct the pilot program. The whether they can truly go from good but you can’t have flexibility here, here, Glazier downplayed NCAE’s bill does not call for any additional to great.” here, and here.’ That’s not flexibility.” concerns. “This bill wasn’t certainly money for participating school sys- The proposal could end up in the Teacher pay designed to be giving everyone — and tems. House’s budget plan. It would need I don’t think they would do — differ- “This year, we are not going to support from the full House and Sen- Given that understanding of entiated pay, in many respects, but I do be giving districts more money,” Gla- ate to move forward. CJ flexibility, Glazier accepted a commit- think that if we talk about flexibility, zier warned. “We are going to be giv- tee amendment from House Minority we ought not be saying all the things ing districts — in any scenario, it ap- Mitch Kokai is an associate editor of Leader Paul Stam, R-Wake, that could you can’t do, because we’re all going pears — fairly significantly less money. Carolina Journal. PAGE 6 MAY 2009 | CAROLINA JOURNAL N.C. Briefs State Launches JobsNOW Training Program JLF: Reform tax code North Carolina’s tax system By Karen McMahan wealth,” said James Sherk, Bradley Fellow in Labor Policy needs radical reform to maximize Contributor at the Heritage Foundation. prosperity and minimize harm to RALEIGH “Jobs programs have only a slight positive effect on individual liberty. That’s the theme n April 16, Gov. Beverly Perdue announced the a worker’s lifetime earnings of one-half of one percent,” of the John Locke Foundation’s launch of “12 in 6,” a worker training initiative Sherk said, “whereas $20,000 a year spent on a college edu- latest Macon Series Policy Report. aimed at laid-off workers and other job seekers. The cation yields an average increase in a worker’s salary of 8 to “The state’s current system of nameO refers to 12 career paths that can be completed in less 10 percent, making that a far better return on investment in taxation aggressively interferes with than six months, giving job seekers “a clear path to success education.” individual liberty and retards eco- in new, sustainable careers,” said Perdue. Most jobs programs train people in fields that are pro- nomic growth,” said report author This program is the first in a series of workforce devel- jected to grow over the next 10 years, reports the U.S. Bureau Dr. Roy Cordato, JLF vice president opment initiatives that comprise a new, broader job creation of Labor Statistics. That’s a problem, Sherk said, because “it for research and resident scholar. and economic development initiative called JobsNOW. gets tricky when the government is trying to pick occupa- “The existing tax system rewards North Carolina’s 58 community colleges will receive tions that will grow, and worse, the government doesn’t some activities and penalizes others $13.4 million in federal stimulus funds from the N.C. De- know what individuals are best at doing.” without any sound economic basis.” partment of Commerce to design and implement the pro- There’s also little data showing how graduates of ex- Cordato is releasing his re- gram, which should be available to job seekers by the end isting jobs programs in North Carolina have fared after they port as some legislators push for of September. complete their training. “We don’t track how these gradu- tax changes that would take away The areas selected for this rapid training program are ates do in the job market. Like most colleges and univer- freedom, rather than promoting it. nursing assistant, sities, we use self- “The state tax code does not need phlebotomy, medi- report surveys that new taxes on cigarettes, alcoholic cal coding, office/ have a very low re- beverages, or other products these clerical support, ma- sponse rate,” Weiner legislators don’t like,” he said. “The sonry/tilecutting, admitted. state should repeal separate sales plumbing, carpen- “But you can taxes for these items, as well as taxes try, welding, food see where the de- on restaurant meals and soft drinks.” service, auto body mand is. We col- Lawmakers should focus repair, manufactur- laborated with the on more than just the amount of ing/materials, and N.C. Department of revenue particular taxes generate, HVAC/industrial Commerce and the Cordato said. “Taxation inher- maintenance. state’s 24 workforce ently interferes with both personal Why were development boards. freedom and economic decision- those particular ar- The logo for the North Carolina Department of Commerce’s JobsNOW program. We also talked to making, so policy-makers need to eas chosen? Chrissy our professors. What be vigilant about how revenues are Pearson, the governor’s spokeswoman, said “these are ar- we believe is that these careers will be the first to recover,” collected,” he said. “Some types of eas of need, and the program will help people who need Weiner said. taxation are more damaging to free- retraining to quickly earn new certifications. This program Alan Weiss, a management consultant with the Sum- dom and prosperity than others.” shows the governor’s commitment to education and ensur- mit Consulting Group in East Greenwich, R.I., agrees. ing North Carolina continues to have a trained and well- “These careers are in areas that have been high-growth. educated workforce.” They are blue collar and semi-white collar jobs, and I believe “The ‘12 in 6’ program is just the beginning. It can be that it is money well spent because they are aimed at getting Protection for counties adapted to local needs of employers,” said Linda Weiner, the middle class back to work,” Weiss said. Local governments will vice president for engagement and strategic innovation for serve their communities best North Carolina Community College System. Private sector is key through policies that limit taxes “These programs will also come with a NC Career The key to a recovery in the job market is a revitalized and regulation, while protect- Readiness Certificate, which is highly regarded by employ- private sector, not government spending, Sherk said. What ing private property from un- ers because it verifies a worker has a basic skill level,” Wein- is needed are lower tax rates on corporations and individu- necessary government intrusion. er said, adding that “these careers are mostly technical or als to encourage investment and job creation. Those are some key concepts health care-related where the demand is still high.” North Carolina lawmakers seem headed in the oppo- driving recommendations in the With the state’s unemployment rate at 10.8 percent, site direction. In the teeth of the recession, the state Senate Center for Local Innovation’s new one of the highest in the nation, growing numbers of highly just approved a budget that raises taxes by nearly $1.2 bil- City and County Issue Guide 2009. skilled, highly educated workers are also joining the ranks lion over the next two years. Calling the package “tax re- The center is issuing the of the unemployed. form,” senators are offering to lower marginal tax rates on guide as N.C. cities and counties As jobs become scarcer across more sectors of the corporations and businesses and reduce the state sales tax make the budget choices that will economy, workers are finding it difficult to secure compa- rate. At the same, time, though, the plan would broaden the drive local government policy in rable positions quickly. Highly skilled job seekers say it is tax base by including many service businesses that have the budget year that starts July 1. even harder for them because employers are reluctant to previously been exempt from the sales tax. “This guide covers every- hire workers they consider overqualified to fill jobs requir- “It’s a money grab,” said Joseph Coletti, fiscal policy thing from taxes to transit, from ing less education or experience. analyst for the John Locke Foundation, “sold as a way to smart growth to stadiums, but “Employers are looking only at candidates who are an be fairer to business. The sales tax base has been eroding the common theme is freedom,” exact match,” a Raleigh technical recruiter said. as the economy becomes more service-based, and this tax said Dr. Michael Sanera, John Thus the appeal of programs to teach targeted skills. proposal will bring in more revenue by taxing more busi- Locke Foundation research direc- “The governor recognizes that different approaches are nesses.” Moreover, this tax proposal would be layered on tor and local government analyst. needed for different people, but this program will help put top of an automatic increase in the minimum wage taking The 34-page guide addresses people to work faster as the economy starts to recover,” effect in July. There’s also a proposal in the General Assem- 16 of the most important topics lo- Pearson stressed, and she said other areas may be added bly to force small businesses to pay employees for seven cal governments must address. It later. sick days a year. focuses on services governments Money Well Spent? Critics say that even if the state’s jobs pro- provide, steps those governments grams successfully impart new skills to unemployed take to fund their services, and Critics of government-funded jobs programs say they North Carolinians, higher taxes and stiffer regula- the impact of government action do not make economic sense because they “suck billions tions may retard the recovery, so businesses won’t be on private property rights. CJ of dollars from the private sector without creating jobs or able to hire those newly trained workers anyway. CJ MAY 2009 | CAROLINA JOURNAL PAGE 7 Recent Events Renew Congressional Debate Over Gun Control

By Karen McMahan ownership rights has focused on crime Contributor reduction or prevention and whether RALEIGH tighter restrictions are needed. Anti- The everal recent events have re- gun activists blame violent crime on newed the debate over gun con- high levels of gun ownership, claim- Federal trol: Mass shootings in North ing that guns do not make Americans SCarolina and other parts of the coun- safer. File try earlier this year; the Department But a 2006 study of crime statis- of Homeland Security’s intelligence tics and gun laws in more than a dozen assessment in April claiming restric- countries and the U.S. published in tions on firearms ownership and use the Harvard Journal of Law and Public could fuel “right-wing extremism”; Policy dispels the notion that “more and President Obama’s comments in guns equal more death and fewer guns Mexico suggesting that a tougher as- equal less death.” sault weapons ban in the U.S. could “Many high gun ownership na- deter Mexican gang violence. tions have much lower murder rates,” Earlier this year, U.S. Rep. Bobby the researchers reported. Don Kates, Rush, D-Ill., introduced “Blair Holt’s an American criminologist and consti- Firearm Licensing and Record of Sale tutional lawyer, and Dr. Gary Mauser, Act of 2009,” a bill to prohibit a person a Canadian criminologist and academ- from possessing a firearm unless that ic, found that “the long-term macro- person has a license, the license is veri- cosmic evidence is that gun ownership a bill that would allow concealed carry fied, and the dealer records a tracking spread widely throughout societies of handguns in federal, state, and mu- number. Under H.R. 45, the U.S. attor- consistently correlates with stable or nicipal parks. ney general would also be required to declining murder rates.” Cleveland is also a co-sponsor of create and maintain a database of ev- Constitutional scholars say the H.B. 270, enabling concealed handgun ery firearm sale or transfer. debate over gun control often ig- carry in restaurants, and H.B. 1133, al- nores the true purpose for the Second Rush introduced a similar bill in Obama’s chief of staff, Rep. Barbara lowing citizens to transport and store Amendment; namely, that Americans 2007, H.R. 2666, which had 15 co-spon- Lee, D-Calif., and Rep. Charles Rangel, locked firearms and ammunition in have the right and the means to de- sors, all Democrats. Among them were D-N.Y. their motor vehicles and in parking fend their liberty from a tyrannical Illinois Rep. Rahm Emmanuel, now Much of the debate over gun lots. government. Thus, any legislation that “Two of the bills have passed the infringes upon this right is unconstitu- first reading in committee, and one has tional. been sent to a subcommittee for revi- Last June 26, the U.S. Supreme sion,” said Cleveland, a 25-year veter- Court’s 5-4 ruling in District of Colum- an of the Marine Corps. “Sadly, many bia v. Heller affirmed the right of indi- Americans are uninformed about why viduals to bear arms and held that it the Second Amendment exists, which was unconstitutional for the District is to prevent our government from be- of Columbia to impose a total ban on coming tyrannical.” an entire class of arms or to require a Thomas Jefferson said as much trigger-lock mechanism for long guns. when he wrote, “No free man shall Pending legislation ever be debarred the use of arms. The Join one of the John Locke Foundation’s strongest reason for people to retain new regional clubs. There’s one near you. The court did not, however, say the right to keep and bear arms is, as that the Constitution prohibited any a last resort, to protect themselves restrictions on firearms ownership. So against tyranny in government.” Triangle Freedom Club Piedmont Freedom Club the ruling has energized legislators In June 1788, Patrick Henry Raleigh, Durham, Chapel Hill, and near- Charlotte, Gastonia, Concord, and near- on every side of the gun-control de- asked: “Where is the difference be- by cities and towns by cities and towns bate. Along with H.R. 45, other bills tween having our arms under our own have been introduced recently in Con- possession and under our own direc- gress and in the North Carolina Gen- tion, and having them under the man- Triad Freedom Club Down East Freedom Club eral Assembly seeking either to limit or agement of Congress? If our defense be Winston-Salem, Greensboro, Burlington, Greenville, Rocky Mount, Elizabeth City, strengthen gun rights. the real object of having those arms, in and nearby cities and towns and nearby cities and towns In Congress, hate crime, child whose hands can they be trusted with protection, and violence reduction more propriety, or equal safety to us, as Sandhills Freedom Club Western N.C. Freedom Club bills that would restrict gun ownership in our own hands?” Fayetteville, Southern Pines, Pinehurst, Asheville, Hickory, Burnsville, and nearby further are currently in committee. Like the U.S. Constitution, North and nearby cities and towns cities and towns Among them are H.R. 256 and H.R. Carolina’s constitution affirms the 257. On the other hand, several bills right of the people to bear arms, as Southeastern Freedom Club supporting or affirming gun rights and the state Supreme Court concluded Wilmington, Jacksonville, Whiteville, and nearby, states’ rights regarding gun legislation in the 1921 decision State v. Kerner. cities and towns are also pending, including H.R. 197 “The maintenance of the right to bear and S. 371. arms is a most essential one to every Proposed legislation in the 2009- free people and should not be whittled 3 Ways to Join 10 Session of the North Carolina Gen- down by technical constructions,” the eral Assembly reveals a similar pattern. court ruled. 1. Visit www.JohnLocke.org/freedomclubs One of North Carolina’s staunch- Should new gun-control restric- 2. Phone 1-866-JLF-INFO est supporters of gun rights is Rep. tions become law, today’s jurists will 3. Be our guest for one meeting. If you like what you see and George Cleveland, R-Onslow, who has be asked to determine whether those hear, you can join on site. Go to this link to check meeting dates sponsored a bill to prevent the seizure limits amount to unconstitutional and locations: http://www.johnlocke.org/events/ of lawful firearms in an emergency “technical constructions” on the right (H.B. 257) and co-sponsored H.B. 269, to bear arms. CJ PAGE 8 MAY 2009 | CAROLINA JOURNAL Pipes: Improve U.S. Health Care By Making it Consumer-Driven By CJ Staff “We demand a lot in our RALEIGH he American health care system has problems, health care in this country, but certain myths cloud the debate about fixing those problems. Sally Pipes, president and CEO and people come from all Tof the Pacific Research Institute, rebuts the worst of the myths in a new book. She recently spoke about over the world, from social- The Top 10 Myths of American Health Care for the John ized systems, to use it.” Locke Foundation’s Shaftesbury Society. She also discussed the topic with Mitch Kokai for Carolina Journal Radio. (Go to http://www.carolinajournal. com/cjradio/ to find a station near you or to learn Sally Pipes about the weekly CJ Radio podcast.) CEO Pacific Research Institute Kokai: Because of time constraints, we didn’t get to the top 10 myths, but you did cover some of the top myths [in your presentation]. What are they?

Pipes: I think that we would all agree we want affordable, accessible, quality health care for all Americans, and the goal would be universal cover- They still have 2.5 percent uninsured. Costs are out of out the private sector, ultimately, and we’ll be stuck age. The question is: How do we reach that goal? control. Twenty percent of people had to be — were with a national insurance plan, which is going to re- And I believe in patient-based health-care reform, excluded because insurance was still too expensive. sult in rationed care. And so I always say President empowering doctors, and patients encouraging in- Mandating insurance will not work in this country. It Obama will ration your health care. Where are we novation in wonderful drugs and biologics and doesn’t work in car insurance; 15 percent of drivers going to go? People come from all over the world. medical devices. The other vision is let’s increase the still drive around without car insurance. Where are Americans going to go to get the finest role of government in our health care. And today, 47 And my third myth is that socialized systems health care? Let’s change the tax code, allow people percent of our health care is in the hands of govern- — such as the system that exists in Canada, which to buy insurance across state lines, reform our medi- ment, through Medicare, Medicaid, SCHIP, and the is where I’m from — are more efficient and cheaper cal malpractice system, and reduce mandates. And VA system. We’re on a path to Medicare for all. And I than the American system. And if you look at it, the we will have universal choice in health care in this think part of the reason we’re on that path is because United States spends 16 percent of its gross domestic country. Once we have universal choice, we will the mainstream media and politicians keep saying product on health care. I don’t know whether that achieve universal coverage. we can reach universal coverage if government gets number is too much. Perhaps it’s too little. We de- more involved. mand a lot in our health care in this country, and Kokai: How likely is it we’re going to get an ef- And so I have 10 myths that I think people in people come from all over the world, from socialized fective change as opposed to the types of change that the mainstream — people on Main Street — need systems, to use it. you see that don’t look so good? to know what the real facts are. And so I wrote this Canada spends 10 percent of its gross domes- Pipes: As I say, Mr. Obama said, first 100 days. book, The Top 10 Myths of American Health Care, to tic product on health care, a lot less than the United He set up a lot of infrastructure with the secretary let people know what the facts are. So, the top three States. But because there’s a lot more demand than of [Health and Human Services], Kathleen Sebelius, myths. … The first one is 45.7 million Americans supply, we have long waiting lists in Canada. The being nominated. Within the CBO, Congressional have no health insurance and hence no health care. average wait, from seeing a primary doc to getting Budget Office: Doug Elmendorf. Within the OMB And of course, that number is a number that comes treatment by a specialist, is 17.3 weeks. That’s over four months. We have rationed care. People can- [Office of Management and Budget], we have Zeke out of the U.S. Census Bureau. But when you analyze Emanuel, [White House chief of staff] Rahm Emanu- it, because most people, 64 percent of Americans, get not get access to the latest tests, like colonoscopies and mammograms and PSA tests for men, because el’s brother. We have Peter Orszag. They all support their health care through their employer, if you lose increasing the role of government in our health care. they’re too expensive. We have lack of access to the your job or you quit your job, your health care is not On the congressional side, Sens. Max Baucus latest technology. You know, Canada ranks 13th out portable, and it doesn’t go with you. And so you’re and Ted Kennedy and on the House side, Henry of 25 countries within the Organization for Economic uninsured until you get your next job, or you go into Waxman from Los Angeles. So Baucus and Waxman Cooperation and Development in CT scans and 19th the individual market. And so you’re counted as un- say they’re going to have a bill ready for negotiat- out of 26 countries in MRIs, and there are only two insured, even if you’re only out of a job for maybe ing by June. And if this gets done and passed, I think positron emission tomography machines. You can two months and then you get new health insurance. we’re going to see this move down to government- But more important, I think it’s important to keep your costs down, but you don’t have access to run health care in this country. And so I’m fighting know that 17 million Americans are earning over health care. very hard. I want doctors to get involved. I want pa- $50,000 a year, and they don’t have health insurance. tients and American people to stand up to their con- The question is why. It’s because health insurance Kokai: Having all of these myths in American gressmen and say, “We don’t want government to be is expensive because of the many mandates that are health care, how does that skew the debate, and how running our health care. It’s not the American way.” on an insurance plan, and it makes it difficult — you does that hurt efforts to fix the system? can’t offer a catastrophic high-deductible insurance Kokai: If you had a very brief description to plan. Two-thirds of those 17 million people are young Pipes: Well, you know, President Obama said give to people of what government-run health care people, the “invincibles,” 18 to 34. Why should they during the campaign that within the first 100 days he would look like compared to what we have now, spend $500 a month on health care when nothing is would be reforming health care. We’ve got a stimu- what would that be? going to happen to them? About 14 million of these lus bill of $789 billion. We’ve got a budget, a huge people are people who are eligible for existing gov- budget. We are doing bailouts to companies and Pipes: You know, the polling, the recent poll- ernment programs, such as Medicaid and State Chil- industries. We’re going to be facing amazing, huge ing data shows that 81 percent of Americans like the dren’s Health Insurance, and they haven’t signed up. tax increases on us, the American people, to fund health care they have. So, you know, we need to fo- Ten million are illegal immigrants. We have about 8 all of these. But on health care, he has said that he cus on those people. And what people have is what million people that are chronically uninsured for two is going to beef up the employer side of health care, they like. We need to also work on those people that years or more. Those are the people we need to take have an employer mandate. If an employer doesn’t aren’t enjoying the health care system and are hav- care of. offer health insurance, they’ll have to pay a payroll ing trouble getting care. How do we get them the The second myth is we will reach universal tax of about 7 percent, so employees can buy health type of care without throwing the baby out with the coverage if we have an individual and an employer insurance in a new, government-run insurance plan, bathwater? So we need to beef up … the health sav- mandate. Hillary Clinton was very much in favor of which will be part of this new national insurance ex- ing accounts, consumer-driven care, because, as P. J. mandating that people buy health insurance during change, which will have private insurers. I think the O’Rourke says, if you think health care is expensive the campaign. It has not worked in Massachusetts. mandates … will make insurance expensive, crowd now, just wait until it’s free. CJ MAY 2009 | CAROLINA JOURNAL PAGE 9

Various Bills in Legislature Focus COMMENTARY On High School Athletics in 2009 Reversing

By Hal Young against their longstanding policy re- Freshman Failure Contributor quiring athletes to be full-time students RALEIGH of their team’s sponsoring school. A t’s hard to overstate the im- to 25.2 percent in grade 10, 23.3 per- ince 1913, coaches have looked large influx from private and charter portance of ninth grade to the cent in grade 11, and 14.8 percent in to the N.C. High School Athletic schools would overwhelm athletic eventual success of high school grade 12. Association for guidance on inter- directors, Strunk said. “It would be a Istudents. Much depends on wheth- Concern for the plight of high Sscholastic sports, and today 378 public nightmare,” he said. “It’s hard enough er freshmen — already buffeted by school freshmen nationwide has high schools are members of the non- keeping up with eligibility of students the tempest of early adolescence some educators recommending an profit association. This year, though, in your own schools.” — can maneuver deftly through influx of ninth-grade “academies.” another organization is getting in- Superintendents and athletic high school’s initial year. Students These institutions target the ninth- volved in a highly public way — the leaders are succinct in their opposition. who are unable to acclimate to the grade transition, operating either N.C. General Assembly, where several Rep. George Cleveland, R-Onslow, rigors of ninth grade generally find as smaller learning environments bills are putting unusual attention on who sponsored one of the bills, told themselves on a downward aca- within high schools, or as distinct athletics. a group of homeschoolers visiting the demic trajectory, likely to act out or entities on separate campuses. Ac- “I’ve been here 23 years, and I’ve legislature that the public school offi- drop out. cording to a 2008 DPI study, North never seen this cials he talked to This stark reality has caused Carolina currently has 134 ninth- much,” says Rick “didn’t tell me to educators and researchers to dub grade academies in 63 counties; Strunk, the as- go away — they ninth grade the “make or break though new, these academies have sociate executive said, ‘Go away year,” making numbers released made impressive progress, posting director at NCH- and die.’” in March from North dropout rates roughly half SAA. Senate Bill Carolina’s Department of the state average. Sen. Charles 259, sponsored by Public Instruction (DPI) a High schools in 15 Albertson, D- Sen. Jim Jacumin, worrisome sign. For many states including North Duplin, gained R-Burke, would students, the freshman Carolina are also turn- headlines early allow a student in year of high school has ing to reforms such as in March with a any school to go become an academic and the Talent Development proposal to bar out for the near- behavioral quagmire: in School. Conceptualized by low-performing est public school 2007-08, ninth graders — researchers at Johns Hop- schools from team if his own particularly males — were kins University, the Talent interscholastic school doesn’t of- more likely to receive KRISTEN Development model offers sports. Though fer his sport. The short-term suspensions, BLAIR faltering schools a dis- the bill has bi- Varsity teams from Greensboro and South measure could face expulsion, commit ciplinary and academic Wake compete in the Homeschool Foot- acts of crime or violence, tuneup. partisan support, ball League. (Photo by Hal Young) draw talent away including Senate from private and drop out of school According to the Majority Leader Tony Rand, D-Cum- schools’ programs, but some leaders than students at any other point program’s Web site, the Talent berland, critics say it would punish are not concerned. along the K-12 spectrum. Development model focuses on the wrong students and do nothing to Veritas Christian Academy in These are sobering findings. bolstering attendance and imple- boost test scores. Fletcher has only 100 high school stu- Behavioral disturbances among menting schoolwide curricular and Sen. David Rouzer, R-Johnston, dents but enough basketball talent that high school freshmen, as evidenced organizational changes, including a recently took his name off the co-spon- four seniors were signed by NCAA Di- by disciplinary actions such as “school-within-a-school” learning sors’ list. He said talks with superin- vision I schools this spring. suspensions and expulsions, occur community for ninth-graders. In tendents in his district convinced him John Jordan, who coaches boys’ in ninth grade at disproportionately 2006-07, North Carolina featured 28 that academic eligibility requirements basketball there, said the increased ac- high rates. Last year, ninth-graders Talent Development schools. push students who play sports to keep cess to other sports might be helpful to were suspended from school more Such interventions are both their grades up. students, as long as schools were not than twice as often as 10th-graders, timely and necessary. However, “I’ll be the first to admit when recruiting from each other, but that three times as often as 11th-graders, there’s an even more fundamental I’m wrong,” Rouzer said. sports are not the major reason stu- and five times as frequently as 12th- way to empower students and their Another bill sponsored by Sen. dents come to Veritas to begin with. graders. Ninth-grade suspensions parents: school choice. Educational David Hoyle, D-Gaston, would require Earl Pendleton, who runs the have risen steadily since 2004. choice — allowing families to select every high school in the state to hire a Homeschool Football League in Ra- Freshman expulsions are their child’s school — has been nonteaching certified athletic trainer. leigh, agreed, saying families come also at their highest levels since shown to boost academic achieve- Four N.C. high school athletes died to his league after making other deci- 2004. Last year, ninth graders were ment and parental involvement, last year, and while schools are now sions on their students’ education. The expelled at rates double those of key factors in curbing behavioral required to have a “first responder” league had 200 players for full contact 10th or 11th graders, and four times problems and keeping kids on on staff, only about a third of public and 550 for flag football last season, at- those of 12th graders. track. In fact, research demonstrates schools have certified trainers. The tracting students from as far away as Ninth-graders were also most that school choice raises graduation bill would provide $43 million over Wilmington and Virginia. Pendleton likely to commit crimes or violent rates — ultimately elevating the the next two years to fund the staff in- estimated fewer than 10 percent of his acts; how much likelier is hard to life prospects of would-be drop- creases. players would consider a public school say, however, since DPI did not re- outs and, according to Friedman The most controversial proposal program if it were available. lease crime numbers by individual Foundation calculations, potentially may be to open public school sports Rick Strunk pointed out that dis- grade level. saving states millions of dollars in to students outside the school system. covering another Tim Tebow is unlikely. Overall, the state’s dropout annual dropout costs. For educa- Multiple bills in both chambers would “Our purpose is not, and never rate decreased slightly, and this dip tors intent on reversing freshman allow homeschoolers and others to has been, to prepare students to go held for ninth-graders, providing failure, that would be good news try out for public school sports, like on to play in college,” he said. “It’s a measure of good news. Yet ninth indeed. CJ the 2007 Heisman Trophy winner Tim an anomaly, a nice byproduct, if they grade remains the year of great- Tebow did as a Florida homeschooler. do. The goal is to build better citizens, est student attrition: last year, 32.6 Although NCHSAA said it might to teach determination and team- percent of students who dropped Kristen Blair is a North Carolina be possible to accommodate the small- work, and to enhance one’s time in out did so in grade nine, compared Education Alliance Fellow. er number of homeschoolers, it goes the high school.” CJ PAGE 10 MAY 2009 | CAROLINA JOURNAL

Only if child begins in public education Bill Would Encourage Private Education — But There’s a Catch

By Hal Young use public money to finance private in public schools first was a compro- considerations may not be foremost in Contributor schools, some of them with religious mise to assist the bill’s passage; ide- families’ decisions. RALEIGH affiliations. ally, he said, “I’d take out the sentence “I would hope that parents who he state of North Carolina spends He noted that the widely accept- about public school.” A similar bill he enroll in a Christian, religious school just over $5,600 per year for ed Smart Start program for preschool- offered in 2005 did not include this re- are there for that kind of education,” each student enrolled in public ers and the Legislative Tuition Grant striction and did not pass. he said. schools.T A bill sponsored by House Mi- for college students support secular The unusual 10-page length of Maurice Adams is a Raleigh fa- nority Leader Paul Stam, R-Wake, of- and sectarian institu- the fiscal analy- ther with a child in a Christian school fers to split that cost with parents who tions. Moreover, he sis is due largely K-5 program. take their children off the public school said, “according to to the question of While their son has done well rolls and educate them elsewhere. Fiscal Research, [tax how many addi- this year, Maurice and his wife are con- House Bill 355, the Tax Fairness in credits] save money, tional families will sidering homeschooling partly due to Education Act, would grant a refund- on a recurring basis.” choose nonpublic cost; at $450 a month for one child and able tax credit of $1,250 per semester The fiscal anal- education if the fi- a younger sister close behind, he said, for students who had been enrolled in ysis attached to the nancial incentive “it’s already skinny with just the one.” the public school system but are with- bill says the mea- was available. The As Haas suggested, though, the deci- drawn in favor of nonpublic alterna- sure could save the Fiscal Research Di- sion will not hinge on whether a tax tives. Stam introduced a similar bill state as much as $35 vision concluded credit is available or not. in the last session, but it never made it million annually, somewhat vaguely “When I look at the mechanisms out of committee. and potentially $25 that between 4,800 that affect my family and children and The idea of public support for million more at the and 13,100 tax weigh the benefits for their academic nonpublic education in the state goes district level. North credits would be and spiritual development, my mind is back at least to 1956, when a voucher Carolina already awarded the first already made up for nonpublic educa- program for private schools was es- avoids over $1 bil- full year. They tion,” Adams said. tablished to address concerns over de- lion in educational also estimated pri- Some critics have charged that segregation. No vouchers ever were expenditures every vate school tuition even a limited tax credit will be the awarded, and the program was can- year due to 169,000 students now being would average $9,698 per year. start of much larger programs later celed in 1969. taught at home or in private schools. Linda Nelson, the executive di- on. Darrell Allison of Parents for Edu- Since then, numerous bills have The present bill has nothing to offer rector of the N.C. Association of Inde- cational Freedom North Carolina says been filed to encourage the nonpublic those already outside the public school pendent Schools, estimated their mem- that concern is misplaced. education option, both through con- system. ber schools’ annual tuition averages “The illustration of the camel’s ventional private schools or home- Dr. Joe Haas, the executive direc- close to $10,400, but said while some nose is catchy, but we’re not talking schooling. These have included a tax tor of the N.C. Christian Schools Asso- approach $20,000 per year there were about animals here,” Allison said. deduction for homeschooling families, ciation, said it might make sense if the several in the $4,500 range. A large “We’re talking about children whose vouchers for private schools, tax cred- tax credit were extended to all nonpub- percentage offer significant financial backs are to the wall, and families who its for either, and even measures which lic students, not just those exiting the aid already, she said, and a state tax are struggling to provide what the would increase public school funding public system, “[if] you understand credit would extend the ability of mid- Constitution says the state will pro- in proportion to the number of stu- the argument and the fact that parents dle class families “who are stretched vide — a quality education for their dents who went elsewhere. None of with children in nonpublic schools are already” to afford private school. children. these bills has passed either chamber. paying twice through their property NCCSA’s Haas said the proposed “We say forget the camels — let’s In the Republicans’ March 17 taxes,” he said. $2,500 credit would cover most of the bring in the sheep, donkeys, and ev- press conference, Stam addressed Stam said the provision which average $2,980 tuition reported by their erything else, to make that happen,” critics who said the tax credits would limits the credit to students who were member schools in 2008, but financial he said. CJ Locke, Jefferson and the Justices: Visit our Triad regional page Foundations and Failures of the U.S. Government

http://triad.johnlocke.org By George M. Stephens The John Locke Foundation Preface by Newt Gingrich has five regional Web sites span- ning the state from the mountains “This book is about American to the sea. politics and law; it is also about the roots of the Contract with The Triad regional page includes America. A logical place to find news, policy reports and re- the intent of the Founders is in search of interest to people in Locke, [and] Stephens makes the Greensboro, Winston-Slem, a contribution to highlighting High Point area. this.” Newt Gingrich It also features the blog Pied- Former Speaker mont Publius, featuring com- U.S. House mentary on issues confronting of Representatives Triad residents.

The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 Algora Publishing, New York (www.algora.com) MAY 2009 | CAROLINA JOURNAL PAGE 11 Charlotte Principals Given New Freedom Under Decentralization By Colleen Calvani 0.03 for high schools are eligible for students who have not been successful tiables that you [had] to follow,” Sig- Contributor FFA. As a comparison, a value of zero, in the traditional setting.” mon said of her pre-FFA work. With CHARLOTTE 0.00, means that students met expected The high school was an excel- the flexibility of the new plan, princi- hanks to a program introduced growth for that year on their EOC and lent candidate to take advantage of the pals can create their own professional by Superintendent Peter Gor- EOG tests. kind of flexibility and innovation that development workshops for their man, some principals in the Once enrolled in the FFA plan, Gorman had in mind when he began school’s teachers instead of mandat- Charlotte-MecklenburgT school system teachers are freed the process of de- ing their participation in a districtwide are being freed from the burden of from some dis- centralization in one. They can modify when school centralized management. Armed with trictwide restric- 2006. starts and ends, or what the student- innovation and frontline knowledge tions, such as the A school’s “This school to-teacher ratio must be. of each school’s challenges, these prin- amount of time was a prime ex- At the Performance Learning cipals are using their judgment — and spent in the class- eligibility depends ample,” Sigmon School, students participate in non- not that of district middle manage- room or how stu- said, pointing to classroom activities each Thursday. ment — to make the best decisions for dents are assigned on number the PLC’s alterna- Called S.O.U.L.L., or Service Oppor- their schools. to which teacher. tive approach to tunity Ultimate Life Learning, the Gorman’s plan, called Freedom Their enrollment of years its schooling. With program allows students to pick ser- and Flexibility with Accountability, or lasts three years, principal has a combination of vice opportunities such as mentoring FFA, puts some power back into the reviewed annually. computer-based a middle school student in computer hands of individual school adminis- “What (this been in place curriculum and literacy or participating in animal ad- trators. Forty-eight principals were plan) basically told s e r v i c e - b a s e d vocacy. With as much as 50 percent picked in the inaugural year, 2007, with me … is that I had and the school’s experiences, stu- of its curriculum delivered through another 11 joining the rolls this year. the freedom and dents who have a computer, students at PLC already To qualify, principals must be at flexibility to do standardized wilted in a rigidly have tremendous flexibility in creating their school for at least two years and what needed to be testing results structured class- a schedule and course load that works the school’s End of Course and End of done, to get the job room setting the for them. Grade tests must demonstrate growth done,” explained deadweight of “When I came here three years over the most recent two years. As Sherry Sigmon, districtwide de- ago and Dr. Gorman came in and came the district explains in its initial eligi- one of the original mands are blos- up with this initiative, I was just re- bility criteria from the 2007-08, those 48 principals chosen last year. Sigmon soming under PLC’s relative freedom, ally honored that he added my name principals presiding over schools with heads the Performance Learning Cen- she said. to this list,” said Sigmon. “It was the average two-year growth of 0.04 for ter, which bills itself as a “small, non- “What I’ve been able to do is be perfect environment: We had to build elementary and middle schools and traditional high school geared toward able to do a lot of things with sched- the guidelines.” uling for the school,” she said. “(I’ve) The district sees this as part of its been able to take money and use it plan to close the achievement gap be- where I deemed appropriate; I did not tween low-income students and their have to use it for this particular thing higher-income counterparts. Fifteen of for instruction.” the principals chosen in the first round Although still subject to statewide were located at high-poverty schools regulations, such as the End of Course or those in the FOCUS program, which tests or the range of curriculum, the allocates extra resources and supplies district suggests that principals in the to schools identified as in-need. Eight FFA plan can organize classes by gen- of the principals led Title I schools. der, or change course sequences to fit The plan’s stated long-term goal is to students’ learning capabilities better. have all principals qualify for the perks “There were so many non-nego- of freedom and flexibility. CJ PAGE 12 MAY 2009 | CAROLINA JOURNAL

Cap leads to waiting lists Charter School Group’s Focus Is on Achievement Gaps By Karen Welsh rates, with 70 percent of its students qualifying for Contributor the federal free and reduced-lunch program. CHARLOTTE Clark said the waitlists at the NHA schools are t’s hurry up and waitlist at many of the 97 charter a testimony to discerning parents who want school schools located throughout North Carolina. Three choice for their children. of the five elementary/middle charter schools in “Parents overwhelmingly value the education theI state currently partnered with National Heritage their children are getting,” he said. “They know what Academies, based out of Grand Rapids, Mich., are no a good school looks like for their children. There is follows closely with an 88 percent white population. exception. a substantial demand for our schools, for charter On the opposite end of the spectrum, PreEmi- Queen’s Grant Community School in Charlotte schools in North Carolina. The waitlists are the par- nent Charter School in Raleigh has a 98 percent Afri- currently has more than 1,300 students hoping to ents saying their children’s needs will best be met by can-American population, followed by 83 percent for gain entrance. Greensboro Academy has 826 poten- those schools.” Research Triangle Charter Academy, and 51 percent Hill said parents are often looking for some tial scholars waiting in the wings, while Research Tri- African-American enrollment at Forsyth Charter angle Charter Academy in Durham has 60 children. Academy in Winston-Salem. place better than mainstream public schools. They All NHA schools use a random lottery/draw- Though diverse, Clark said all schools are pro- want someone who values their children and adds a ing system when they have more students than slots vided the same quality services, options, and educa- more personal touch to the educational process to fill. Families who have filled out applications anx- tional opportunities by NHA. “We focus on eliminat- “I think they feel we listen more and we meet iously gather on a specified day to witness if their ing achievement gaps,” he said. “Secondly, we focus their children’s needs better — both academically name is pulled randomly to place their child in the on college preparedness.” and socially,” she said. “Our teachers communicate school. The process is repeated until all names are Clark said the NMA program embraces account- with parents. The biggest thing is choice. A parent prioritized on the list. ability, and each school’s academic achievements are with a student in our school has a choice and, as a It’s a very difficult process, said Queen’s Grant evaluated with adaptive assessments throughout the parent, that’s what it’s all about — the freedom to Community School Principal Christy Morrin. Her school year. “We can see where students are at the choose and not be tied by bureaucracy.” school currently has enough names on the waitlist to beginning of the year,” he said, “Then, we test them Clark said his hope is the North Carolina legis- create two new campuses in the area. However, with in the winter and spring to measure their academic lators will reconsider raising or removing the charter the cap on the number of charter schools allowed in growth. “ school cap so more NHA-based charter schools can the state set at 100, Morrin knows that’s not a reality Although four out of five schools — PreEmi- open up in the state. at the present time. nent, Forsyth, Queen’s Grant, and Research Triangle “NHA hopes to show, through performance “It’s hard, it’s disappointing to have to say to — did not make their goals on Annual Yearly Prog- and excellent school options, that we’ve earned the potential parents to ‘keep trying,’” she said. “They ress (AYP), Clark said the tests do not accurately right to serve additional students,” he said. “We come to the lottery because they want to do what’s show gains the children have made. “Many students want all students on the path for academic achieve- best for their child, and we hate to turn them away.” are coming into our schools well below grade level,” ment and college readiness.” Parents of students attending the NHA schools he said. “With the rigor and knowledge we provide It would certainly make Morrin and the 1,300 have a choice, and they are usually vying for a spot them, and with good instruction and time, they nar- potential students eagerly awaiting a charter school because they not only want a better education for row the achievement gap, and they will be college- experience at Queen’s Grant very happy. their child, but they also want their children placed ready.” “I’d like to see more NHA charter schools in school in their community, said NHA CEO Jeff Lori Hill, the principal of Forsyth Academy, in our district,” she said. “Our desire is to have Clark. which has partnered with NHA throughout its 10- more opportunities in the area for school choice As a result, he said each NHA school uniquely year existence, barely missed AYP in math by seven and provide more options that parents don’t have reflects the social, economic, and racial makeup of students. She said it’s an uphill climb, as most of her to pay for. It would be a great opportunity to have the particular area. Greensboro Academy is 91 per- students are not only undereducated when they ar- more schools here. There certainly wouldn’t be any cent Caucasian, while Queen’s Grant Community rive, but the school has one of the highest poverty trouble filling them.” CJ

Visit the new-look Carolina Journal Online Visit our Wilmington regional page http://wilmington.johnlocke.org

The John Locke Foundation has five regional Web sites span- ning the state from the mountains to the sea.

The Wilmington regional page includes news, policy reports and research of interest to people in the coastal area.

It also features the blog Squall Lines, featuring commentary on issues confronting coastal N.C. residents. With links to the new CJTV and CJ Radio Web sites

http://carolinajournal.com The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 MAY 2009 | CAROLINA JOURNAL PAGE 13

After Mob Disruption of Tom Tancredo Event, Campus Briefs • UNC-Charlotte hosted a “Museum of Oppression” from Goode Manages Speech Despite Interruptions April 6-8. According to promo- tional materials, the Museum of Oppression is “a historical and Protestors have characterized the YWC speech the venue was changed from a experiential museum focusing on publicly as white supremacists. One of similar lecture hall to an auditorium issues of oppression. It is an expe- Former Virginia the main organizers stated that the ear- that seats 390. The room change gave riential tour through the bigotry lier protest’s main goal was to stop the Goode some separation from his audi- and hate that minority groups YWC from inviting more speakers like ence, whereas the antagonistic audi- congressman’s face. The goal is to open people’s Tancredo. ence a week before was right on top of eyes, and maybe even touch a few The protesters’ justification for Tancredo. hearts.” The museum featured 14 persistence a factor their antics is that the opinions of con- The campus police had a strong “experiences”—including those y ay chalin servatives like Tancredo and Goode B J S presence for Goode’s speech, with as of African-Americans and the Contributor qualify as “hate speech” and therefore many as 20 officers inside and outside Lesbian, Gay, Bisexual, and Trans- are not protected under free speech RALEIGH the building. And, while, the week be- gender (LGBT) community. The statutes. Furthermore, they claimed n April 14, an unruly mob of fore, the few police (and no adminis- event was sponsored by the hous- that their shouting and noise making radical protestors at UNC- trators) on hand did nothing to prevent ing and residential-life program at while Tancredo tried to lecture quali- Chapel Hill chased former U.S. the outbursts by Tancredo’s audience, UNC-Charlotte. Other groups that congressmanO and illegal-immigration fies as protected speech. that changed, too. Shortly into Goode’s participated in the event included When Riley Matheson, the stu- critic Tom Tancredo from his speaking lecture, a woman shouted at the speak- the Black Student Union, Chain dent founder of engagement. Police used pepper spray er, “F--- you!” Reaction, PRIDE, a UNCC Latino the UNC chapter while protesters tried to push their way Winston Crisp, fraternity, and the UNCC Coun- of YWC, took the into an already packed room. Tancredo the assistant vice seling Center. According to resi- stage to introduce stopped speaking when protesters out- The university’s chancellor for stu- dence coordinator Tara Hummer Goode, protestors side the building broke a window in dent affairs, took Knitz, one of the program’s goals in the audience security precautions the lecture hall. the stage and said, is to “combat bigotry,” which she responded with On April 22, it initially appeared “This is going to admits is “not a big problem at chants, catcalls were much that a similar mob might do the same be the only time I UNC-Charlotte.” She describes and profanity to to another former congressman, Virgil different than say this. Whether UNC-C as already a “very inclu- drown him out, Goode, a Virginian who is an outspo- you are cheering sive campus.” The museum began as they had done ken opponent of affirmative action and during Tancredo’s or jeering, we are as “Beyond Words: Museum of with Tancredo. shares Tancredo’s views on immigra- going to ask you Oppression” at Eastern Illinois They did the same speech the tion. Yet between Goode’s persistence, to allow the speak- University, where it has been run- when Goode took improved security precautions by the er to make his ning for eight years. At some cam- his place behind week before university, and some support from comments. If you puses, the oppressed groups rep- the lectern. members of the audience, this time it persist in behav- resented include religious groups, Yet Goode was the mob that was silenced. ior that disrupts the unborn, and those sentenced The night began much as it did persevered, despite frequent interrup- this program, the DPS [Department of to death. in the previous week. Radical groups tions and disruptions. And in the end, he won over the crowd with his factual Public Safety] officers will be asked to again circulated flyers urging students • The Wake Forest Universi- knowledge and sense of fairness. remove you from the premises.” to protest, and again met in the Pit (a ty chapter of Young Americans for The university’s security prepa- Police made six arrests for disor- popular campus gathering spot) for Liberty and the university’s Col- rations and enforcement were quite derly conduct. Two protestors prompt- some pre-speech preparations. “Hey, lege Republicans hosted a speech different than they were the week be- ed their arrest by leaping to their feet ho, YWC has got to go,” they chanted. by U.S. Rep. Ron Paul, R-Texas, fore. Whereas Tancredo spoke in a lec- and unfurling a banner that read “F--- YWC stands for Youth for West- on April 20. Paul spoke about the ture hall that seated little more than Racism.” ern Civilization, a new campus orga- “ignored causes of the economic 100, with no stage, no podium, and The ranks of the protestors had nization that invited both Tancredo crisis and how to fix them while and Goode to the Chapel Hill campus. no microphone, on the day of Goode’s thinned considerably from the previ- ous week, as well. While protest or- maintaining an attitude of liberty.” ganizers, largely members of the local More than 800 people attended, chapter of the Students for a Democrat- including Wake Forest students, ic Society, were able to draw between Winston-Salem residents, and oth- 75 and 100 for the Tancredo speech, ers who supported Paul’s cam- there were no more than 40 present for paign for president. “If we don’t Goode. clean up this mess, big govern- Many in the crowd seemed to ap- ment will take away our liberty,” preciate Goode’s forthright manner. Paul said. “We need to preserve To start the question-and-answer pe- our liberty. We can be poor, we can riod, Aaron Maisto, a sophomore from have a tough time, but if you have Charlotte who majors in economics your freedom and you’re willing and public administration, said, “I dis- to work, we can be back on our feet in no time.” Young Americans agree with probably 95 percent of your for Liberty is a national organiza- opinions. That said, I must applaud tion that developed out of Paul’s you for maintaining your composure presidential campaign. Its focus in the face of some pretty rude people.” is on educating young Americans At evening’s end, the radicals about libertarian values and em- no longer appeared to be an emerg- phasizing the role of the U.S. Con- ing force on campus, as they had after stitution in the American govern- the previous week’s incident. Instead, ment. CJ their actions seemed to many merely juvenile, irrational, and pathetic. CJ Compiled by Jenna Ashley Rob- inson, campus outreach coordinator for the John W. Pope Center for High- Jay Schalin is a senior writer with the er Education Policy. Pope Center for Higher Education Policy. PAGE 14 MAY 2009 | CAROLINA JOURNAL

COMMENTARY Some Faculty Still Love to Read Dartmouth’s And Teach About the Classics

By Jane S. Shaw sustained and infectious. Incoming Politburo Contributor ACTC president Richard Kamber, a hen he ran for a position mouth’s president James Wright RALEIGH philosopher at the College of New Jer- ot all faculty in the humani- sey, observed that attendees often say on the Dartmouth Board (who will retire this June) pushed ties spend their time worrying that they like ACTC programs much of Trustees in 2005, Todd through a different power-enhanc- about “publish-or-perish” or more than their professional meetings Zywicki stated that, if elected, he ing change in September 2007. W Ntheir insufficient pay. There’s a group (such as the Modern Language As- would also “work to recommit Reminiscent of FDR’s infamous of faculty who live and breathe one sociation). Stephen Zelnick, ACTC’s Dartmouth to its traditional mission “court packing” plan, Dartmouth thing: teaching their students the clas- founding president, commented that of undergraduate education and decided to increase the size of its sics. ACTC is a far cry from academic meet- the development of well-rounded board by eight, all of them to be They are members of the Associa- ings where the focus is on finding a job students.” He said that he would chosen by the board itself. tion of Core Texts and Courses (ACTC), or winning status in a field of special- “work to increase the accountabil- Formerly, eight out of 18 and they met last month at a Holiday ization. ity and transparency of College trustees were elected by the alumni, Inn in Memphis, Tenn. More than 250 ACTC has been around for 15 governance and communication but now it will be only eight out of faculty members and devotees of lit- years; it started at Temple Univer- with Dartmouth students, parents, 26. FDR’s plan was defeated, but erature, philosophy, sity, where Zelnick, alumni, and faculty.” the Dartmouth regime got its way. and science dis- then the director Zywicki, a 1988 Dartmouth Power will be centralized and the cussed “core texts,” of the Intellectual graduate and now a professor at influence of dissident trustees re- sometimes known Heritage Program, George Mason University duced to mere symbolism. as “Great Books.” a yearlong core Law School, was elected That high-handed In small semi- course in the Great to the board, defeating a approach to governance nars, they plunged Books tradition, candidate favored by the caused The Wall Street into intense discus- wondered how administration. Journal to editorialize, “At sion, analyzing such many other schools Along with three least this fracas strips bare works as the Di- were still teaching other outsider (or “peti- the pretense that alumni vine Comedy, Mark classics. He thought tion”) candidates who have any college role be- Twain’s Pudd’nhead that bringing those have been elected to the yond writing checks. Wilson, Ralph Elli- faculty together Dartmouth board in recent “Dartmouth’s son’s Invisible Man, might enrich their years, Zywicki was not reigning lords no doubt the Bible, Don Quix- teaching. The first the sort of trustee college GEORGE believe they can ride out ote, Plato’s Republic, meeting in 1995 presidents love; he was LEEF any lawsuits or alumni and Augustine’s convened faculty City of God, to name a small sample. from 23 universities — and Zelnick not one simply to rubber- anger that arise from their Several seminars (and one plenary ses- figured he had tapped most of the pro- stamp whatever the ad- power play, and they may sion) were on “bridging the gap” be- grams in existence. But the group has ministration wanted to do. be right.” tween science and the humanities. been growing ever since, with 126 col- Worse yet, he actually had ideas of With control now firmly in ACTC members know what leges and universities represented in his own on how the school should the grasp of the administration and others in academia sometimes forget Memphis. be run. its trustee allies, why bother with — that teaching and learning are in- Most of the schools are small, In late April, with no public the symbolic execution of one of tertwined and that studying a text in and most private. Many are Catholic, discussion or explanation, a ma- the leading “rebels”? Dartmouth’s order to enhance teaching is a valued since a lot of Catholic schools retain jority of the board voted to deny board did not oust two other “out- activity. Most of the seminar papers a respect for the tradition of Western Zywicki a second term, thus pluck- sider” trustees whose terms were seemed designed to deepen the au- scholarship reflected in a required se- ing a thorn from the overly sensitive expiring (T. J. Rodgers and Peter thors’ understanding of a text in order quence of classical readings. Few large hide of the college’s administration. Robinson), so why the firing squad to teach it more effectively. public universities sent faculty, howev- To understand what’s been for Zywicki? For example, her desire to bring er. The most prestigious schools were going on at Dartmouth — and the The answer most likely (and classics to life — specifically, the Od- also underrepresented, although next battle between the forces of the again, the board’s actions were yssey — led Barbara Stone of Shimer year Columbia University, which has status quo and of critics goes far taken in secret) is that Zywicki had College to consider pairing Zora Neale had a Western-civilization-based core beyond just the ouster of Zywicki — shown the audacity to criticize Hurston’s 1937 novel Their Eyes Were curriculum for over 90 years, will help you must realize that most college the school and especially former Watching God with the Odyssey. She has sponsor the conference. presidents take a sort of Louis XIV President James Freedman at a Pope found that some students, especially Clearly, the Association of Core view of their power and preroga- Center conference in 2007. Thus, women, have trouble engaging with Texts and Courses helps humanities tives. making an example of him would the themes of the Odyssey. Perhaps a faculty hone their understanding and They think they know best be both useful and satisfying. “woman’s odyssey” or life journey, as skills and gain emotional support as and don’t want to be challenged. Message to the remaining crit- Their Eyes is, might help them appreci- they defend the value of their teaching Often they have enough support ics: “Accept your powerless status ate it more. against constant threats in the acade- among loyalist insiders that they and keep quiet.” Steven Epley of Samford Uni- my. Can programs like these grow? Or can neutralize or even eliminate Dartmouth thus points out versity told about his multifaceted ap- does ACTC represent a mere holding those who don’t bow or curtsey an irony in our higher education proach to Jane Austen’s Sense and Sen- action against the erosion of deep read- sibility. He wants to help his students ing and thinking at our universities? with enthusiasm. system. While it pays lip service apply to Austen’s novel the insights The evidence is mixed, but based Annoyed at the repeated suc- to freedom of inquiry, intellectual into Platonic values that they learned on the enthusiasm and the caliber of cess of petition candidates, in 2006 openness, critical thinking, and so at the start of the semester of classic conversation, there may be hope for the Dartmouth administration at- forth, at its highest levels it prefers readings. the future. How to restore the clas- tempted to change the rules to make to run like the old Soviet Politbu- To illuminate these values, he sics is an enormous challenge, but CJ it more difficult for such candidates ro. uses film versions of Sense and Sensibil- the effort is well under way. CJ to win, but they had to submit that ity, both because film communicates to proposal to a referendum of the students and because the films down- alumni and it lost hands-down. George Leef is the director of play Platonic values, thus providing a Jane S. Shaw is president of the John Rather than accept defeat and research at the John W. Pope Center for foil for the novel. W. Pope Center for Higher Education Pol- agree to work with critics, Dart- Higher Education Policy. The participants’ enthusiasm was icy. MAY 2009 | CAROLINA JOURNAL PAGE 15

Opinion Many College Students Find Cheating Easier Than Actual Work mong many American college ket, but it’s large sor might remem- with threats of serious penalties if students, there is a “consumer enough to keep a ber reading the they are caught submitting a paper mentality” that works like this: lot of companies passage copied. someone else has written for them. “I’mA paying to be at this school, so it in business. Do- Along came That won’t deter everyone. ought to satisfy me.” ing the research the Internet, which Better still is for the professor Put aside the obvious point that for a paper and changed that. Stu- to demand a draft from the student it’s usually someone else who is doing then writing it is dents could search along with evidence that he has done most of the paying. This mind-set may time-consuming, and come up with some research. That too could be paid not be justified, but it’s very real. Lots hard work. As one a vast array of for, but if the professor also insists on of students regard themselves as cus- student who was pertinent material. a short conference to discuss the stu- tomers buying something they want: a quoted in the arti- Edit, copy, paste, dent’s progress, the student’s inabil- college degree. cle said, “Like most people in college, and presto: A large chunk of the paper ity to talk about the work submitted It’s a short you don’t have time to do research on was done! But professors soon wised would be telltale. step from that some of these things.“ up. Sites like Turnitin.com make it A still more radical solution is to the idea that That state- possible to scan that of Professor Thomas Bertonneau, buying the com- ment speaks vol- student papers author of a Pope Center series on the ponents of the umes about col- against millions problems of dealing with students degree, such as lege students and Online essay of documents to who can’t or won’t read. Professor term papers, is their priorities. check for cheat- Bertonneau informs me that his stu- all right. Supply They’re happy to mills now provide ing, and many dents must do all their written work usually rises to have other people professors firmly in class. meet demand, and GEORGE do their school- fresh papers tell the students Few American college students therefore we today LEEF work so that they that they do check are accomplished writers, a fact that have the phenom- can have more for sale, and will punish was lamented by the National Com- enon of online time for things making it students who try mission on Writing in its 2003 report. “essay mills” where college students they prefer. (Prices to plagiarize their For the most part, our K-12 schools can order up essays and papers just as start at around harder for way to a good no longer do a decent job of teach- they might order up a pizza. Google $20 per page and grade. ing students how to write good, clear “buy term paper,” and you’ll get more increase based professors With these English, a defect rooted in the “pro- hits than you could ever click on. on the difficulty online essay mills, gressive” education theory that it’s The lead article in the March 20 of the paper and to catch students however, the “of- bad to drill rules into students. Some issue of the Chronicle of Higher Educa- time constraints.) who plagiarize fense” has gotten college professors still work diligently tion, “Cheating Goes Global as Essay Fraud and the upper hand to try to get their students to improve, Mills Multiply,” brought this issue plagiarism are others’ work on the “defense” but many students fail to recognize into focus. Who knew that one aspect nothing new, of again, since the that they’d benefit from better writing of globalization is that a student in a course. Back in papers are written skills. dorm in North Carolina can go online ancient (that is, “fresh.” That is to Cheating is so much easier than to buy the paper he’s supposed to pre-computer) days, students were say, they are not the easily detected working hard to improve oneself. CJ turn in on The Brothers Karamazov for known to type passages from pub- cut-and-paste jobs, but are new assem- his English class — much less that it lished works and hope to pass them blages of words. might actually be written by someone off as their own work. There was some How can professors combat this in Nigeria? danger in that, however. The library new kind of cheating? George Leef is the director of There aren’t any solid data on probably contained relatively few One thing is to try scaring the research at the John W. Pope Center for the size of the fraudulent paper mar- books on the subject, and the profes- students into doing their own work Higher Education Policy. 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 MAY 2009 | CAROLINA JOURNAL Town and County Reformers Unhappy With Health Plan Fix Triad water authority sued Five small hydroelectric dam By Jim Stegall has recently signaled more openness to the idea. owners are suing the Piedmont Tri- Contributor The plan’s financial difficulties go back to the end of ad Regional Water Authority, con- RALEIGH last year’s legislative session. Legislative leaders found out tending that the authority’s pend- ine months of studies, audits, frantic lobbying ef- in July that the plan was going broke, but chose to adjourn ing taking of water from the Deep forts, and closed-door negotiations came to a head for the year without implementing any changes other than River will hurt their profitability. in late April as the House and Senate quickly ap- to replace the executive director. The authority is a partnership Nproved a temporary fix to the ailing state employees’ health The new executive director, Dr. Jack Walker, spent the between Greensboro, High Point, plan. rest of the summer and fall figuring out what went wrong Jamestown, Archdale, Randleman, The compromise between House and Senate leaders and devising a plan to fix it. By the time the General Assem- and Randolph County. dashed the hopes of reformers who wanted more sweeping bly convened anew in late January, legislative leaders had It is building a water treat- changes, and state employees who wanted to hold down a bill to overhaul the plan drafted, but it took nearly three ment plant in northern Randolph costs for plan members. months to get it through both chambers, in part due to fierce County that is set to open in mid- In addition, the plan will continue to be run by a spe- lobbying efforts by pharmacists, state employees, teachers, 2010 and has the authority to with- cial legislative committee rather than an agency of the ex- and others. draw up to 12 million gallons a ecutive branch, as some had wanted. While the bill was being debated on the House floor, day. The compromise will raise employee co-pays, deduct- Blust proposed an amendment that would move the plan “It ain’t like we’re a Duke ibles, and dependent premiums enough to keep it solvent into the executive branch. His proposal was immediately Power that can go out there and for a while, but leaves big questions about the future fi- attacked by House Majority Leader Holliman, calling the spend billions of dollars to build a nancial health of the plan. Re- amendment a “knee-jerk reaction” nuclear plant,” said Dean Brooks formers wanted to change the to the plan’s fiscal woes. to the Greensboro News & Record. fiscal year of the plan to match Other House Democrats Brooks owns a small hydro- the calendar year; lower de- followed suit. Rep. Dan Blue, D- electric plant built by Carolina pendent premiums to attract Wake, pointed out that the bill al- Power & Light in the 1920s near younger, healthier people into ready had a provision calling for Moncure and is a plaintiff in the the plan; and enact other mea- a study of the plan’s management lawsuit. He sells the electricity the sures to make the plan more and urged the House to wait “for dam generates to Progress Energy, financially stable. What they an ultimate decision from the ex- CP&L’s successor. had to settle for was a provi- perts.” The dam owners are seeking sion calling for an independent Although several Republican several million dollars in compen- audit and a Blue Ribbon Task legislators spoke in favor of Blust’s sation for the impact that the re- Force to study the issues raised amendment, it was defeated, and duced river flow will have on their by the plan’s near failure. the House passed the bill without businesses. Proposals to put the it. However, the House passed The authority contends that health plan under the execu- several other amendments that did the river flow will remain adequate tive branch were tabled or vot- not sit well with the Senate, ne- and that dam owners have not ed down as a bill to reform the cessitating its referral to a confer- quantified their damages properly. plan (S.B. 287) moved through ence committee of both chambers both chambers in March. Of to work out a compromise. Both Garbage documentation the states that have govern- chambers agreed to the compro- ment-run health plans for state employees, more than two mise version April 21, mere hours after the conference com- Raleigh is considering chang- dozen are administered by the executive branch, while most mittee had finished its work. ing its policies on backyard gar- of the rest opt for control by an independent board of trust- Giving up control of the plan to the executive branch bage collection for the old or ees. North Carolina’s plan is administered entirely by a joint might have been a hard pill for legislative leaders to swal- infirm. The city is considering re- House and Senate committee run by each chamber’s major- low. The health care and insurance industries have a huge quiring a doctor’s note for back- ity leader, currently Sen. Tony Rand, D-Cumberland, and stake in the management of the state’s health plan, and yard collection, reports the Raleigh Rep. Hugh Holliman, D-Davidson. those industries have been a consistently reliable source of News & Observer. Critics say that arrangement has worked poorly. A campaign contributions for key legislators of both parties, Raleigh abandoned backyard report last year by former state auditor Les Merritt noted Rand in particular. garbage collection in 2004. Hom- that the Select Committee on Employee Hospital and Medi- It’s neither illegal nor unusual for companies in indus- eowners are now required to roll cal Benefits, the committee charged with administering the tries that are heavily regulated by state government to do- their garbage cans to the curb for plan, rarely met and that its members did not have access nate through political action committees to politicians who collection. to important details about the plan’s finances. The report write the regulations. Blue Cross and Blue Shield of North An exception to this require- concluded that lax oversight by the committee contributed Carolina, the company which currently administers the ment exists for those 65 or older or to the plan’s financial meltdown last year, and suggested state health plan, has been a particularly generous donor. who are incapable of bringing their that the executive branch was the proper place for the plan. An analysis by Democracy North Carolina, a nonpar- garbage to the street. To get on this Rep. John Blust, R-Guilford, agrees. He’s filed a bill tisan group which advocates for public financing of politi- list for backyard collection, all (H.B. 1302) that would put the plan under the governor’s cal campaigns, shows that PACs associated with Blue Cross someone has to do is call the city and say he is old or infirm. Office of Management and Budget. “It’s an executive func- and Blue Shield donated $643,000 during election cycles City Manager Russell Allen tion to carry out the rules,” he said. from 2000 to 2008. Executives of Blue Cross and Blue Shield wants to change that. Currently, Blust notes that the state constitution grants the legis- made personal donations totaling $117,000 during that same about 4,100 people are on the list lature the power to write laws and appropriate money, but time frame. for backyard collection, a far high- it calls on the executive branch to carry out those laws and The top recipient of these donations was Rand, who er number than in Charlotte or spend that money. pulled down $36,000 from the Blue Cross and Blue Shield Durham. Some appear perfectly He points out that under our system of separation PAC, and another $7,850 from Blue Cross executives. For capable of bringing their own gar- of powers, the legislature does not try to run programs in the 2008 election cycle, Rand raised just over a half-million bage to the street. other fields such as corrections, transportation, and schools. dollars, with $106,000 of that — about 20 percent — coming “We had one lady push- “We don’t have a committee to run prisons,” he said as an from the health and insurance sectors. ing a baby stroller,” said sanita- example. Even so, during the conference committee negotia- tion worker Felix Butler. “The city Rand has argued that he does not think the plan’s cur- tions Rand offered to move the plan to the executive branch. knows that, but they don’t go out rent form of governance raises any constitutional concerns. House conferees declined the offer. On their recommenda- and check.” CJ He had previously deflected attempts to move the plan out tion the conferees opted to wait for the report of the Blue Rib- of his committee’s control and into the executive branch, but bon Task Force before deciding the plan’s ultimate fate. CJ MAY 2009 | CAROLINA JOURNAL PAGE 17

Economy Taking its Toll COMMENTARY Keeping Tabs On Regional Planning On Local Government By Sam A. Hieb PART has since received $1 mil- Contributor lion in stimulus money via the Greens- ost people think they state and local governments. The GREENSBORO boro Metropolitan Planning Organiza- have a good sense of latest version of BTN is available ike practically everything else tion and hopes to receive an additional what their local govern- online at http://www.johnlocke. these days, the economy is tak- $13 million from the state’s stimulus mentsM are doing. It’s the town, the org/policy_reports/display_story. ing its toll on regional planning allotment. county they live in, often for years, html?id=194. Lin the Piedmont Triad area, putting a Now the High Point Metropoli- sometimes for their entire lives. Compiling BTN is possible damper on high hopes for the “aer- tan Planning Organization is showing They use the services — well, at because North Carolina does a otropolis” local leaders have been en- a deficit for its long-range plans. MPO least some of the services, anyway very good job of giving the public visioning for years now. administrator David Hyder told Guil- — that the local governments pro- access to information on the fi- Guilford County Commissioner ford County commissioners that costs vide. They certainly pay the taxes. nances of local government. Coun- Mike Winstead summed up the situa- for long-term projects were $ 2.7 billion But do they really understand ties and municipalities, regardless tion in February when he said “all of while projected revenues were only what their local governments are of size, are required to file audited a sudden I don’t hear anything any $1.5 billion. up to? financial statements with the De- more” about the Heart of the Triad, a As it is, the Piedmont Triad is a The media in general, and partment of the Treasurer. The fis- regional plan to convert hundreds of relatively complex planning environ- newspapers in particular, consider cal year for local governments (and acres straddling ment that includes themselves to be the guardians the state) in North Carolina runs the Guilford-For- several facilities of the public interest in from July 1 to June 30. syth county line that are significant government. And to the Audited financial into a mecca of Downturn forcing at the state and re- media this oversight statements are due to the economic devel- gional level. These is built upon access to treasurer’s office by the opment and Smart planners back include Interstates documents and meetings, Oct. 31 following the end Growth principles. to drawing board 40 and 85, Pied- transparency by being in of the fiscal year. The Heart of mont Triad Inter- the room when decisions The treasurer the Triad was to looking for national Airport, are being discussed and makes these audited feed off the future two pipelines, and made. results available several success of Pied- new revenue two new Inter- Call it the news- different ways. One is mont Triad Inter- states — 73 and 74 paper version of open MICHAEL via a separate Web page national Airport. — that are coming government. And it’s LOWREY for each locality that con- PTI had a rough through the area. certainly critical for citi- tains six years of data, 2008, especially after the low-fare car- High Point is in the middle of all zens to understand what which can be accessed at rier Skybus went bankrupt. But it was that, and its geographic location al- their local governments http://www.nctreasurer. finally going to see the benefits of the ready forces the MPO to coordinate its are doing and, just as importantly, com/lgc/units/unitlistjs.htm. much anticipated, taxpayer-funded activities with several government en- why they are doing it. The pages are typically up- FedEx hub, scheduled finally to open tities, including the four counties and But there’s also another type dated about mid-March to include this summer. Then FedEx finished six municipalities in the region. But the of local government transparency. data from the fiscal year that off PTI’s bad year with the news that MPO is quickly discovering that even Call it the accountant’s version ended the previous June. The in- it would delay opening the hub until the best-laid plans can’t be carried out of open government. It’s about formation also can be downloaded December ­— and with fewer jobs than without the funding to support them. understanding the finances of local as an Excel file. promised. Hyder told commissioners that government. Show me the money A few months later, the trea- Another major player in the they expect population and employ- or at least where the money was surer makes available summary Heart of the Triad, the Piedmont Au- ment in the PTI area to double in the spent and where it comes from. spreadsheets with data for all thority for Regional Transportation next few years. The Triad area is in- This is the sort of thing the counties and for all municipalities (PART), said last month that although cluded in an Atlantic Coast mega-re- news media has difficulty deal- for the fiscal year in question. it had a surplus now, it would soon run gion covering running from Washing- ing with. Journalists don’t handle Or at least all those local gov- a deficit unless another source of local ton to Atlanta, where most people will numbers well. And even if they ernments that turn in their audited revenue was found. live in metropolitan areas. do, editors tend to think that their financial statements in a timely PART’s role in the Heart of the With that in mind, Hyder iden- readership doesn’t handle num- manner. Triad is to develop a master plan em- tified four key “horizon years”: 2009, bers well. Sadly, this is a problem in phasizing mass transit. At the steering 2015, 2025, and 2035. The coming year The news media’s lack of some places. Take Princeville, a committee’s January meeting, Greens- should see the completion of two small interest, though, doesn’t mean that town of 2,200 in Edgecombe Coun- boro City Council member Robbie Per- bridge projects along with two High citizens have to be uninformed ty, which last submitted a report kins noted that PART was “continuing Point city bond projects. But the MPO about local government finance. back in 2003. Similarly, Greenevers to work on the Seamless Mobility Proj- hopes 2015 will be a key year when at The information is out there, and in Duplin County has submitted a ect for regional public transportation” least one major project ­— the U.S. 311 it’s more accessible than you may report for only one of the past six while simultaneously “working multi- bypass from Business I-85 to U.S. 220 think. years. modal regional transportation facility — will complete the major transporta- One source of that is the John So want to really know what project.” tion leg that will be part of I-74. Locke Foundation’s annual By The your local government is doing? But those plans could be contin- Hyder also noted that alterna- Numbers report, which calculates Then spend some time looking gent upon PART making up a loom- tive transportation would be incorpo- the cost of local government for over BTN and what’s on the trea- ing $3.2 million deficit. PART director rated into MPO’s master plan, includ- each of the state’s 100 counties and surer’s Web site. CJ Brent McKinney recently suggested ing a network of bicycle routes and a 540 odd municipalities. that the deficit could be made up with proposed greenway system, plans for BTN also offers a wide range a regionwide yearly licensing fee of up which the High Point Parks & Recre- of other useful financial and de- Michael Lowrey is an associate to $5 per car that could raise about $5 ation department will submit shortly mographic information about the editor of Carolina Journal. million a year. to the city council. CJ PAGE 18 MAY 2009 | CAROLINA JOURNAL

Local Innovation Bulletin Board N.C. Appeals Court Tosses Ballpark Benefits Questioned Buncombe County Zoning he recession is drastically shift- dish cleansers: the brutish Cascades, By Michael Lowrey begins July 1, reports the Wilmington ing the decades-long debate the muscular Electrasols. Associate Editor Star-News. over the value of subsidizing For those inclined to chuckle RALEIGH The city sent nine representa- sportsT stadiums. Local governments, at the travails of distant, desperate he N.C. Court of Appeals has tives, including all seven council mem- which once had cash to burn, are people with dirty dishes, consider thrown out Buncombe County’s bers, to Washington for a National suddenly heavily squeezed. Con- this: zoning ordinance after deter- League of Cities conference in March. sumers, once willing to fork over The detergent industry has miningT that the county failed to fol- The city, following custom, paid for the more money for seats in showcases, pledged to make every automatic low proper procedure in adopting the meals of the council members’ spouses are seeing their disposable incomes dishwashing soap sold in the U.S. regulations. who went along on the trip. vanish. and Canada nearly phosphate-free As a result, big facilities like by mid-2010. In its March 17 ruling, a three- It’s not against state law for the one planned [in Lee County Fla., With 12 states -- including judge panel of the state’s second high- municipalities to pick up the cost of as the spring training home of the Washington -- phasing in low-phos- est court found that the county made spouse’s meals. Boston Red Sox], once viewed as phate laws by the end of next year three serious er- “It’s up to huge revenue generators and sym- and four others considering them, in- rors in adopting the city council bols of local pride, increasingly look dustry officials say they are gearing the zoning ordi- to have its own to many people like monuments of a up to produce a new generation of nance. The coun- Cherokee travel policies,” bygone era of excess. products that will clean dishes while ty provided only said David Law- The local jobless rate already not harming lakes and streams. 14 days of public to rence, a profes- stood at 10 percent when Lee Coun- The pledge marks a significant notice before the sor in the School ty commissioners signed off on a turnaround for an industry that un- public hearing of Government deal last December. Yet the county til recently not only opposed such on the ordinance, at the University decided to go ahead with the plan, laws but also warned that many not at least 15 Currituck of North Caro- which could require an initial invest- phosphate-free dishwashing deter- days as was re- lina at Chapel ment of $100 million. The project, gents didn’t work the way consum- quired. Hill. “I think a lot [backers] argue, would pay for itself ers expected them to. The appeals court also found that of folks don’t pay for spouses because several times over by generating But plenty soon will be avail- zoning changes in the county’s open they think it’s inappropriate.” hundreds of jobs, propping up the able, said Dennis Griesing, vice pres- use district were approved by plan- Several council members have re- reeling construction industry and ident of government affairs for the ning staff but not by the county’s plan- imbursed the city for the cost of their attracting more tourists to this Gulf Washington, D.C.-based Soap and ning board as required by state law. spouses’ meals after the details became Coast community. Detergent Assn. “In its headlong rush to adopt the public. Lee County officials plan to fi- -- Kim Murphy, Los Angeles amendments to its ordinance, County “We were going up there trying nance the new site from a hotel tax Times violated this statutory provision,” to do the business of the city, but I can that primarily hits tourists. But the wrote Judge Sanford Steelman for the understand, given the economic condi- economics of such projects remain court. He also noted that the county’s tions of the city, that people are upset,” murky. Local supporters point to a Big yards or green space? existing ordinances require the plan- said Mayor Bill Saffo, who repaid the Florida-funded study in 2000 esti- In many communities, most ning board to approve the changes. city about $59 spent on meals for his mating a county derives $25 million housing is located in subdivisions. Lastly, the appeals court ques- wife Renee at the conference. in annual economic benefits by host- tioned whether the county truly had Increasingly, those developments Jordan Lake rules ing spring training. A study commis- are subject to “clustering” rules in provided citizens an opportunity to sioned by Sarasota County last year which houses must be located on a comment on the proposed zoning reg- Durham city officials have reject- estimated the Sox could generate portion of the total land and the re- ulations. The county was modifying ed a call by the head of an environment $45 million in annual benefits. mainder is left as open space. Open zoning maps in response to landowner organization to accept as written tough Several academics dispute space may provide benefits to sub- requests up to the day before the Bun- new rules for communities that border those projections, pointing to data division residents, but clustering combe County Commission’s public or are upstream of Jordan Lake. At is- showing tax and sales revenue have means that those residents are liv- hearing on the zoning ordinance. sue are regulations that might require remained stable in counties after ing in higher-density settings com- “We fail to see how the citizens municipalities to undertake expensive they secured or lost major league pared to conventional subdivisions. of Buncombe County could make any changes to existing developments, re- baseball teams. Although the external benefits from meaningful comment on the proposed ports the Durham Herald-Sun. — Mike Esterl, The Wall Street the open space may be positive, it is zoning ordinance amendments under Journal Elizabeth Ouzts, state director of unclear whether those benefits offset these circumstances,” wrote Steelman. Environment North Carolina, argued the loss experienced by smaller lots N.C. Court of Appeals rulings are that city officials were overstating Smuggling suds and higher density. controlling interpretations of state law the potential costs of rules to reduce We used data on subdivision unless overruled by the N.C. Supreme stormwater runoff into the lake and Spokane County [Wash.] in house sales occurring between 1981- Court. The Asheville-Citizen Times re- its tributaries. The city has estimated July adopted a near total ban on 2001 in a county on the fringe of ports that rather than ask the Supreme the cost of compliance as high as $570 sales of water-softening phosphates the Washington, D.C., metropolitan Court to review the appeals court de- million if existing subdivisions have to in dishwasher detergent -- the first area: Calvert County, Md. We exam- cision, Buncombe County will instead be altered to reduce runoff. Ouzts also in the nation -- in an attempt to slow ined how households value being readopt the rezoning ordinance with said her group would push for federal the flood of pollutants that is suck- adjacent to open space and more few, if any, changes. and state funding to help pay for the ing oxygen out of the endangered open space in the subdivision, as measures. Spokane River, smothering its fish. well as how readily they will trade Wilmington travel policies Durham Mayor Bill Bell was not The problem … is that most off those amenities with their own Wilmington is reviewing its trav- impressed by Ouzts’ offer. low-phosphate detergents are private lot space. el policies after reports that the city “Don’t ask us to have to retro- wimps when it comes to fighting We find no evidence of willing- paid for the meals of several spouses fit all of the existing developments to greasy pots and spaghetti-crusted ness to trade off one’s own lot size of city council members at a confer- have to accommodate that,” Bell said. plates. So [some residents have] be- for adjacency to the open space. ence. While the dollar amounts were Nor did Bell find the prospect of state come detergent outlaws, driving 45 — Elizabeth Kopits, Virginia minutes across the Idaho state line to McConnell, and Margaret Walls, comparatively small, they come as the or federal assistance particularly reas- city is struggling to close a $6.6 mil- suring, as such funding is not man- pick up secret stashes of the old, bad Regulation CJ lion budget gap in the fiscal year that dated by the regulations. CJ MAY 2009 | CAROLINA JOURNAL PAGE 19 Greensboro Hoping Stimulus Funds Can Aid Redevelopment Plans aged with private onto Martin Lu- But funding is problematic, espe- money.” ther King Jr. Drive. cially during an economic downturn Ole Asheboro One citizen The city says the that has local governments struggling however, spoke of ramp is one of the to fill budget gaps. Greensboro is cer- neighborhood feels the city’s obliga- last hindrances tainly no exception as it hopes to close tion to the neigh- to rebuilding the a $7.5 million budget gap for next fiscal borhood. neighborhood. year. it’s waited enough “I think I n d e e d , The city also took on consider- it’s time the city the private sec- able debt last November after voters By Sam A. Hieb Contributor fulfilled its re- tor has invested approved bonds totaling $156 million, GREENSBORO sponsibility to its in the south side including a $134 million transportation he City of Greensboro desper- residents,” said of Greensboro’s bond. ately wants to finish the revi- Donnell Moody. downtown area, Almost immediately, inquiries talization of the Ole Asheboro The Ole but not without were made about using federal stimu- neighborhoodT on the south side of Asheboro Street help from taxpay- lus money to help with Ole Asheboro’s downtown. Finding the money to do Neighborhood As- ers. redevelopment. so — especially during an economic sociation first reg- In 1990 citi- “I believe, after 30 years, that downturn — is a totally different mat- istered with the zens approved $5 we’re shovel-ready,” council member ter. city in 1979 to pre- million in bonds Trudy Wade said. Community development or- serve and enhance to help finance the Assistant City Manager Denise ganizers and residents of historic Ole the quality of life Southside rede- Turner said she wasn’t sure how fed- Asheboro brought a funding proposal in the historic Map showing the Ole Asheboro redevel- velopment. A re- eral stimulus money would be allocat- opment area. (CIty of Greensboro map) to the City Council during an April n e i g h b o rh o o d , development plan ed at this time, but that revitalization meeting. They proposed using two- which is bordered was passed three might fit under the federal Neighbor- thirds bonds to provide $2.9 million by Martin Luther King Jr. Drive years later. hood Stabilization program. Acting in funding to help revitalize the neigh- But progress was slow, and the So far, Southside has been a suc- Housing Director Dan Curry added borhood. The bonds would go toward neighborhood descended into an area cessful development and has been that indeed there was discussion of housing subsidies, housing rehabilita- marked by run-down houses, drugs, credited with helping revive down- federal funds going toward neighbor- tion, and construction of moderate- and prostitution. An amended Ole town. It has also received recognition hood revitalization projects, although income housing. Asheboro redevelopment plan was as a model of Smart Growth, winning he did not specify Ole Asheboro as one “We don’t lack skills. We lack adopted in 2004, but progress has not the National Award for Smart Growth of the possible projects. support. We lack funding,” said Nettie occurred as rapidly despite some new Achievement from the Environmen- Council member Robbie Perkins Coad, an Ole Asheboro community ac- construction. Mayor Yvonne Johnson tal Protection Agency. Southside did interjected a dose of reality to the situa- tivist for whom an apartment develop- also reminded the council that a 2006 show a crack, however, when its an- tion, introducing a motion to have city ment on Martin Luther King Jr. Drive bond to revitalize the neighborhood chor gathering spot, The Press Wine staff members look at different fund- is named. “We’re asking you, after 30 further failed. Bar, announced it was closing down. ing options before reporting back to years, to bring some closure to this.” There have been signs of hope, (New owners did step in with plans to the council in a few weeks. Bob Mays, a local businessman however. New Zion Missionary keep The Press open, however.) “Clearly, there is something lack- who serves on the city’s Redevelop- Church has announced plans to build Coad reminded the council that ing. The job hasn’t been finished, but ment Commission, told council mem- a housing development, a shopping Ole Asheboro community organiz- we don’t know where the funding bers that city involvement in rede- and restaurant district, a new sanctu- ers were the ones who “spearheaded” sources are,” Perkins said. “This is veloping Ole Asheboro would spur ary, and an education and family life Southside. community redevelopment, and when private development. center. “We’ve been in everybody’s you get into it, you often find there’s a “This is a concept that is a very With New Zion’s development court trying to play ball,” Coad said. lot more to it.” innovative approach to private devel- in mind, city officials want to close a “We’re asking you, after 30 years, to Perkins’ motion passed unani- opment,” Mays said. “It is easily lever- freeway-style exit ramp off Lee Street bring some closure to this.” mously. CJ Help us keep our presses rolling Publishing a newspaper is an ex- Visit our Triangle regional page pensive proposition. Just ask the many http://triangle.johnlocke.org daily newspapers that are having trouble making ends meet these days. It takes a large team of editors, re- The John Locke Foundation porters, photographers and copy editors has five regional Web sites span- to bring you the aggressive investigative ning the state from the mountains reporting you have become accustomed to the sea. to seeing in Carolina Journal each month. The Triangle regional page in- Putting their work on newsprint and cludes news, policy reports and then delivering it to more than 100,000 research of interest to people readers each month puts a sizeable dent in the John Locke Foundation’s budget. in the Research Triangle area. That’s why we’re asking you to help defray those costs with a donation. Just It also features the blog Right send a check to: Carolina Journal Fund, Angles, featuring commentary John Locke Foundation, 200 W. Morgan on issues confronting Triangle St., Suite 200, Raleigh, NC 27601. residents. We thank you for your support.

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

From the Liberty Library Book Review

• As anti-Americanism runs rampant throughout Europe and King and Cowboy Hurt By ‘Startling Inaccuracies’ the Middle East, Carol Gould ex- poses the threat it raises and calls • David Fromkin, The King and the Cowboy: Theodore Roos- and the conference. By staying far in the background, Ed- on Americans to defeat the trend. evelt and Edward the Seventh, Secret Partners (New York: Pen- ward allowed Roosevelt to flatter and lead the kaiser along Don’t Tread on Me is Gould’s guin, 2008), 256 pages. a path that resulted in no gains for Germany and a sympa- journey through the astonishing thetic outcome for France. It left in place the new alliance world of British and European By Hal Young between England and France and started the “special re- anti-Americanism, from the graffiti Contributor lationship” between the U.K. and the U.S. It also, Fromkin scrawled by street urchins to the RALEIGH says, lined up the players for the Great War to come, a view- venom spewed by the educated and he preface lays out an interesting premise: point shared by Kaiser Wilhelm. intellectual classes abroad. In 1901, the opening year of the 20th century, Unfortunately, Fromkin’s explanation of the era is a While the War on Terror has two colorful public figures inherited the leadership of confusing account that focuses more on the backstories of produced a crop of Bush-haters, theT English-speaking countries. They were sworn into office the key players than on the pivotal event itself. Most of the Gould argues that today’s anti- even though they were generally regarded as not really fit book is spent on biographical sketches of Queen Victoria, Americanism is not merely the result to rule. One was thought to be something of a wastrel; the her grandson the kaiser, a brief and factually weak look at of U.S. military action or the Abu other, something of a clown. Roosevelt, and much too much on the Prince of Wales who Ghraib scandal; it has deeper roots David Fromkin’s The King and the Cowboy seeks to ex- became Edward VII. and has grown into something much plain how these two not only disproved their critics’ fears, To some extent this is unavoidable, since the conflicts larger. but also largely rearranged the diplomatic tables of Europe. and alliances that arose in that decade were largely a fam- One element of the anti-Amer- ican fever sweeping Europe and Unfortunately, the book suffers from a shotgun approach ily matter. In America, all politics is local; in Victoria’s Eu- Britain is suspicion of the so-called to a subject which needs rifle-like accuracy, and even then, rope, politics was personal, and mostly involved relatives “Zionist lobby” in the United States doesn’t aim squarely at its target. who didn’t get along. Fromkin uses family nicknames to and a loathing of America’s support The title characters are King Edward VII of England emphasize the relationships, calling Edward “Bertie” when for Israel. and President Theodore Roosevelt, two men whose idio- he was well in his fifties and his nephew the Kaiser “Willy.” In Don’t Tread on Me, Gould syncratic personal lives Dozens of royal personages examines the forces behind this overshadowed their fu- come and go bearing multiple disturbing epidemic and pleads for ture effectiveness in office. names and inadequate intro- a bit of sanity before the “special re- They came into power in ductions. lationship” is eroded beyond repair. a decade when longstand- Fromkin says Edward More at www.encounterbooks.com. ing diplomatic conventions and Roosevelt were both were falling. England and “imperialist liberals” and, France, rivals since the Nor- in his view, “self-invented” • In the face of the modern man Conquest, had sud- men whose public personae liberal assault on Constitution-based denly found common cause masked their political depths. values, an attack that has snowballed against a belligerent, newly “The one was not entirely a steadily since President Roosevelt’s united Germany. The kai- playboy. The other was not New Deal of the 1930s and resulted ser had estranged himself entirely a frontiersman,” he in a federal government that is a from the traditionally pro- writes. No, not entirely, but massive, unaccountable conglom- German British monarchy it is quite true the Prince erate, the time for re-enforcing the and carelessly let a strategic of Wales cut a wide swath intellectual and practical case for treaty with Russia lapse, through Europe’s casinos and conservatism is now. creating new rivalries on ei- bordellos, and Roosevelt re- In Liberty and Tyranny, talk ther side. ally was a Dakota rancher for radio host Mark Levin lays out how Now, for the first time a time. They lived the lives conservatives can counter the liberal since the French and Indian they chose, and not for politi- corrosion that has filtered into every War, America and England cal purposes. timely issue affecting our daily lives would become political col- The sex life of the future from the economy to health care, laborators as Edward and King Edward is a major dis- global warming, immigration, edu- Roosevelt secretly worked traction. The fact the prince cation, and more — and illustrates to counter the power shifts bed-hopped across the con- how change, as seen through the on the continent. tinent for four decades gives conservative lens, is always pru- The erratic Kaiser Fromkin too much material, dent and always an enhancement Wilhelm II occupied cen- and he has a hard time get- to individual freedom. Visit www. ter stage for much of the ting back to diplomatic mat- simonandschuster.net to learn more. decade. Under Prussian leadership, the German army had ters; the chapter titled “Bertie’s Politics” is barely two pages proven its strength against France; Wilhelm’s desire for a long. navy to rival his grandmother Victoria’s was a direct chal- There are glaring mistakes in the Roosevelt narrative, • Move over red, white, and lenge to Britain. When France and England formed an notwithstanding a Roosevelt biographer’s review of the blue, America is going green. Per- “Entente Cordiale” resolving their differences over north manuscript. Fromkin poetically describes how Roosevelt sonal expression is fine, but this has Africa, Wilhelm went looking for a wedge issue to halt the led the Rough Riders in a glorious cavalry charge to carry much more sinister implications, rapprochement. the battle at Kettle Hill; actually, they had to leave their hors- because going green is no longer a Morocco seemed to provide the opportunity he sought. es on the dock in Florida and fought the entire war on foot. choice; it’s a government mandate. France, which already controlled Tunisia and Algeria, made He claims William McKinley and Roosevelt “campaigned In his shocking exposé, Green an exclusive agreement with the sultan of Morocco in viola- vigorously” for the 1900 election, when McKinley famously Hell, Steven Milloy shows how the tion of the “open door” treaties between the colonial pow- took questions from his front porch and Roosevelt rode over Greens and the federal government ers. Germany seized on this to try to provoke a crisis, and 21,000 miles in three months stumping for the ticket. These are growing a movement and cre- when in 1905 the sultan proposed an international confer- are not minutiae; such basic errors defy explanation. ating policies that won’t actually ence to discuss his country’s future, Wilhelm saw a chance The King and the Cowboy begins well, has moments benefit the planet but will make to cast France as a diplomatic rogue and disrupt the “en- of insight, and provides some interesting stories along the our lives more uncomfortable, more circlement” of Germany he perceived taking place. way. However, its tendency to dwell on preliminaries and expensive, and less enjoyable. Learn Unknown to Wilhelm, King Edward, whom he de- wander in its focus, coupled with some startling inaccura- more at www.regnery.com. CJ spised, and President Roosevelt, whom he admired, were cies, damage a well-intentioned effort to describe a little- quietly coordinating their responses to France, Germany, appreciated incident in international relations. CJ MAY 2009 | CAROLINA JOURNAL PAGE 21 Protesting Taxes is as American as Apple Pie and Baseball lthough historical events are taxation, it seems, statists errone- Carolinian birthright. piness.” (Notice Iredell wrote “allow never entirely replicable, his- ously label him or her as an unthink- During colonial times, North individual happiness,” not provide tory does in some ways repeat ing reactionary who lacks vision or Carolina set examples for others to fol- individual happiness.) In 1774, In Aitself. I saw this firsthand last month as a greedy capitalist who cares not low. A tobacco tax set in motion what Principles of An American Whig, Iredell as Tar Heels, from the mountains to for others’ needs. Some critics even historians call Culpepper’s Rebellion listed grievances, such as the Stamp the coast, revived asserted that the tax protests were (1677-1678). In the early 1700s, tax Act, and talked about the people’s an American and fueled by racism. (That’s right, when protests abounded in the Albemarle right to be represented fairly. This North Carolinian all else fails, many nowadays per- region. In 1715, many in the region essay provided an example for the tradition: protest- form what Friedrich Nietzsche called protested what they considered to authors of the Declaration of Inde- ing increased “philosophizing with a hammer.” be an unfair land tax. In 1774, the pendence. Before July 4, 1776, North taxation. Instead of addressing ideas, people hit women in Edenton held a tea party Carolinians moved toward indepen- An abhor- their opponents with a philosophical and signed an anti-tax petition that dence on April 12, 1776, with pass- rence for taxation hammer. Getting hit with a hammer read: “We cannot be indifferent on any ing the Halifax Resolves; “King and is nothing new. hurts. Being hit with a philosophical occasion that appears nearly to affect Parliament of Great Britain,” believed As early as 1665, hammer hurts, too. Get hit enough the peace and happiness of our coun- Tar Heels, “[had] usurped a Power North Carolin- TROY times when you protest and you quit. try, and . . . it is a duty which we owe, over the Persons and Properties of the ians protested KICKLER If one is called a racist every time he not only to our near and dear connec- People unlimited and uncontrouled.” increased taxation. or she questions government bailouts tions, . . . but to ourselves.” This was The document granted delegates the They had long dis- or increased taxation or government the first organized political activity by authority to declare independence liked taxation — even if deemed nec- intervention, for instance, many will women in what became the United with other colonies. The Continental essary — and they especially loathed eventually shut up or be distracted States. Congress told other states “to follow abuse of power and mismanagement and argue why they are not racist. In North Carolinian James Iredell, this laudable example.” And they did. of revenue. both cases, genuine debate has been who became one of the first U.S. Far from being un-American, tax The motivation underlying the silenced.) Supreme Court justices, questioned protests are as American as baseball recent tea parties, however, has been At the various tea parties, Ameri- government encroachment during and apple pie and the Halifax Re- questioned; some can’t understand cans and North Carolinians revived an the Revolutionary Era. In 1773, in To solves and the Declaration of Indepen- why so many were so infuriated with American and Tar Heel legacy. Ques- the Inhabitants of Great Britain, Iredell dence. CJ increased taxation and government tioning government intervention and challenged Blackstone’s parliamentary bailouts and imputed motivations to the taxation rate and investigating the sovereignty argument and contended taxpayers. abuse of power and mismanagement that “every person has the right of Dr. Troy Kickler is director of the Whenever one questions gov- of revenue is not only a natural thing liberty and that the purpose of gov- North Carolina History Project (www. ernment intervention or increased to do, it is an American and North ernment is to allow individual hap- northcarolinahistory.org). Stay in the know with the JLF blogs Visit our family of weblogs for immediate analysis and commentary on issues great and small www.JohnLocke.org YOUR HOME ON THE WEB FOR The Locker Room is the blog on the main JLF Web site. All JLF employees and many friends of the foundation post on this site every day: http://www.johnlocke.org/lockerroom/ NORTH CAROLINA PUBLIC POLICY Creating your own personal Key Account at www.JohnLocke.org is a great starting place for tracking the critical public policy issues facing North Carolina.

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

Short Takes on Culture Book review Add Some Sowell to Your Life Levin Warns of Growing Statism • Applied Economics (Revised and En- Showtime’s “The Tudors” focuses • Mark Levin, Liberty and Tyranny: A perception that resistance to statism is larged Edition) on Henry as he engages in a very Conservative Manifesto (Threshold Edi- slowing as more and more conserva- Thomas Sowell active sex life while suppressing the tions, 2009), 256 pages tives embrace it. Levin holds up as ex- Basic Books Protestant reformation, entangling amples former George W. Bush speech- political alliances with Spain and writer Michael Gerson, who wrote that lenty of smart people have spent France, and engaging in a religious By Sam A. Hieb if Republicans continue to run on an entire careers learning the in- struggle with Rome. Contributor anti-government message then they tricacies of economics, though Pretty boy Jonathan Rhys GREENSBORO will “deserve to lose,” as well as con- aP fellow named Henry Hazlitt once Meyers admittedly adds a 21st- hen I went to the local book- servative commentators William Kris- wrote that the entire field boils down century flair to Henry, while the store to get my copy of Mark tol and David Brooks, who promote to one lesson: “The art of economics veteran Sam Neill turns in a solid Levin’s Liberty and Tyranny: so-called “national-greatness conser- consists in looking not merely at the performance as Cardinal Thomas AW Conservative Mani- vatism.” immediate but at the longer effects of Wolsey, Henry’s chief foreign policy festo, I had to ask a Levin goes on any act or policy.” adviser whose failure to secure an sales clerk to help me to address many of Economist Thomas Sowell la- annulment to first wife Catherine so find it. Since I admit- the issues America bels this concept “thinking beyond he could marry Ann Boleyn caused tedly think in con- faces today through stage one.” It’s the subtitle of his book him to fall out of favor. spiracy theories, my the eyes of the stat- Applied Economics, newly expanded Falling out of favor with Hen- first thought was the ist. The founda- and updated five years after its origi- ry could have grave consequences, store didn’t want a tion of our country nal publication. as Ann would find out. Though “conservative mani- — the Declaration In areas ranging from medical you have to pay attention to follow festo” displayed of Independence care to housing, from immigration plot lines through the actors’ British prominently on its — is an “impedi- to discrimination, Sowell assembles accents, “The Tudors” is definitely shelves. ment” to the statist’s examples of drastic consequences a more exciting history lesson than The clerk im- schemes, consider- that can follow the failure to think the college class that some of us mediately set me ing the fact that he beyond stage one. might have snoozed through. straight, telling me believes “rights are Politicians, past and present, — SAM HIEB they kept Liberty and not a condition of tend to ignore long-term thinking, Tyranny up front, man’s existence but Sowell tells us. “FDR seems never mainly because cus- only exist to the ex- to have considered that incessant •”Bolt” tomers keep com- tent that the statist experimentation, in and of itself, Walt Disney DVD ing in asking for ratifies them.” was a process which could have high Produced by Clark Spencer it, adding that the While Gold- costs for the economy, irrespective of store couldn’t keep berg identifies the merits or demerits of particular Pixar has given us some su- enough copies in stock. Franklin D. Roosevelt as the ultimate experiments,” Sowell writes. perlative computer-animated films Sure enough, Liberty and Tyranny “liberal fascist,” Levin cites FDR as the “Government experiments with in recent years. “Monsters, Inc.” would appear on The New York Times statists’ favorite president. (History is the rules under which millions of and “The Incredibles” immediately best-seller list at the No. 1 position. far from done with Barack Obama.) other people must operate … is not come to mind. But “Bolt,” the story That tells me that Levin’s message is Roosevelt was initially a constitutional a prospect that encourages long-term of a dog endowed with a range getting out there in a big way. The only originalist who ran for president con- investment by businesses or even of super abilities (or so he thinks) question is what conservatives will do demning Herbert Hoover’s tax and short-term spending by consumers. beats them all. with that message. regulatory policies that exacerbated People tend to hang on to their money The plot would be cliché if it Much like Jonah Goldberg’s re- the Great Depression. Unfortunately, when they don’t know what is likely weren’t for the many unique twists. cent book Liberal Fascism, Levin clues Roosevelt abandoned those principles to happen next.” Life is great for Bolt the super dog. us into to the “statist” mentality, which in favor of the dismal failure that was Let’s hope leaders in the new He’s the star of his own TV show, is crucial intelligence considering the the New Deal. Levin writes that the administration take time to add some and he gets to rescue his owner, fact that President Obama is the “most New Deal serves as the modern stat- Sowell to their reading lists. Penny, each week from a variety of ideologically pure statist and commit- ist’s prototype for governance. Heaven — MITCH KOKAI perilous situations. All that changes ted counterrevolutionary to occupy help us. when he accidentally gets trucked the Oval Office.” Other topics include federalism, across the country and has to find But while Liberal Fascism is a the Constitution, and faith. But Levin • “The Tudors” his way home, still unable to distin- sometimes rambling — yet valuable is at his best when he addresses the Showtime guish between real life and his TV — lesson on 20th-century political three major issues that our country Produced by James Flynn show. thought, Liberty and Tyranny — com- faces today: the welfare state, “envi- A number of unique charac- ing in at a tight 205 pages — specifi- ro-statism,” and illegal immigration. Hollywood has a fascination ters are introduced along the way, cally addresses the statist assault on There’s been no lack of analysis of with Henry VIII these days. And including three pigeons with strong the foundations of our country in clear, these issues, but Levin explains them why not? Henry’s turbulent person- Bronx accents. The best character by concise terms. It’s an easy read and in such a common-sense manner that al life simply blows today’s celeb- far, however, is Rhino, the hamster highly recommended for anyone con- you can almost feel the light bulb go- rity gossip away. He married his in a ball. More than anything, Rhino cerned about the direction in which ing on over your head. late brother’s wife, he dated sisters, wants to imitate Bolt’s “awesome- our country is heading under the Levin offers pretty basic solu- sired illegitimate children, and be- ness,” and by trying to accomplish Obama administration. tions to counter statism — eliminating headed two ex-wives, all the while that goal provides some of the most Levin characterizes the statist as the progressive income tax, limiting leading England through a very quotable dialogue of any recent having “an insatiable appetite for con- the Supreme Court’s judicial review complex and dangerous world. comedy movie. trol,” speaking “in the tongue of the power, eliminating monopoly control The 2008 movie “The Other Beyond the humorous and demagogue, concocting one pretext of government education, etc. Boleyn Girl,” based on the histori- memorable banter, the beginning of and grievance after another to ma- But just making us aware of the cal novel of the same name, focuses the film has one of the best action nipulate public perceptions and build statist mentality in such a straight- on the lives of sisters Ann and scenes of any computer-animated popular momentum for the divestiture forward manner is a valuable ser- Mary Boleyn, each of whom serve movie. Definitely worth a rent. of liberty and property from its right- vice in itself and will no doubt as Henry’s mistress. Meanwhile, — DAVID BASS CJ ful possessors.” provide valuable aid in conserva- More disturbing, however, is the tives’ fight for liberty. CJ MAY 2009 | CAROLINA JOURNAL PAGE 23 Against Intellectual Monopoly : Strong Case for Radical Position • Michele Boldrin and David K. serve compensation for their efforts to until 1775, when they asked Parlia- impede real innovation. Levine, Against Intellectual Monopoly the conclusion that patents and copy- ment to extend the patent until 1800. Turning to theory, the authors (Cambridge University Press, 2008), rights, that is, a monopoly, are the best Only then did production of the engine include a brilliant discussion of the 298 pages or only way to provide that reward.” begin — along with rigorous efforts to nature of competition, focusing on the In short, intellectual monopolies are an block other inventors who came up “first mover advantage.” Being first By George Leef unnecessary evil with large costs and with improvements. in the market confers (or can confer) Contributor scant benefits. Numerous innovations were kept great profit advantages. It is as if white RALEIGH Boldrin and Levine proceed to at bay until Watt’s patent expired. “In didn’t just get the first move in a chess rticle I, Section 8 of the U.S. make their case against governmen- fact,” the authors write, “it is only after game, but the first three. Constitution provides that tally conferred intellectual monopo- their patents have expired that Boulton Addressing a current contro- Congress may establish a sys- lies (while letting innova- and Watt really started to manufacture versy, Boldrin and Levine argue that temA of patents and copyrights to pro- tors privately exploit their steam engines.” patents are not necessary even in the mote progress in “science and useful original ideas) by travers- Those and drug industry, where many believe arts.” Now we have two scholars con- ing history and theory. many other in- that patent-protected profits are neces- tending that the power to issue patents The history debunks a stances lead the sary to fund the development of new and copyrights was a mistake and that lot of widely accepted authors to con- medicines. The authors instead con- we would be a lot better off if govern- beliefs about famous in- clude, “Intellectual clude that we’d have at least as much ment could not create those intellectual ventors who relied on monopoly is not a innovation in the absence of patents. monopolies. patents, argues that cre- cause of innovation, In my view, they have made a convinc- Boldrin and Levine, both eco- ativity has flourished but rather an unwel- ing case, but I would be eager to hear nomics professors at Washington Uni- in the absence of any come consequence of counterarguments. versity in St Louis, have written a book system of patent and it.” If the authors are right, we should that makes an extremely powerful case copyright, and dem- Next, Boldrin abandon our IM system, but is it pos- against patents and copyrights. Most onstrates that patents and Levine batter the sible that we will? The status quo has people are likely to believe, as the Con- and copyrights have notion that patents a lot of powerful beneficiaries who will stitution’s drafters did, that we need impeded progress. and copyrights are vigorously defend it, including a large them to stimulate innovation and cre- C o n s i d e r necessary to spark in- number of lawyers, patent and copy- ativity, but the authors show that this James Watt, whose novation by pointing to right officials, Disney, the recorded belief is mistaken. steam engine is many examples of fast- music industry, and others. Those who There is no general agreement often regarded paced development and would benefit from ending the system that our intellectual property regime as the catalyst creativity where there of intellectual monopoly — mainly the is ideal. Some Americans strenuously that brought about the Industrial were no intellectual mo- public at large — are not politically argue that it doesn’t go far enough in Revolution. Defenders of patents as- nopoly laws. Third, intellectual organized and have little or no idea “protecting” creators. Others think sert that Watt’s ability to patent his monopoly leads to great inefficiency as of the losses they suffer due to IM im- that the system sometimes stifles in- innovation was instrumental in its people try to game the system. Among pediments. novation by unduly limiting the free- spread. Yes, Watt did have something other IM-related shenanigans, Bold- But if no one brings true costs of dom to use ideas. Enter Boldrin and to do with the steam engine, but that’s rin and Levine highlight “submarine” intellectual monopoly to our attention, Levine with a truly radical position: about all the truth in the tale, say the patents. These are vague patents that we’re sure to be stuck with it. I give the we should get rid of our system of in- authors. The steam engine already ex- people obtain not because they have authors high marks for making such a tellectual monopoly (IM) entirely. isted when Watt devised an improve- any intention of producing anything, strong case for a radical and, to most The authors write, “Creators ment on it in 1764, freely utilizing sev- but simply so they can launch a sneak people counterintuitive, position. CJ of new goods are not different from eral unpatented ideas. The next year, attack later on others who actually do producers of old ones: they want to he applied for a patent, supported by want to produce something by claim- be compensated for their effort. How- wealthy industrialist Matthew Boul- ing patent infringement and forcing a George Leef is the director of ever, it is a long and dangerous jump ton. The patent was granted, but Watt costly settlement. It’s clear that the IM research at the John W. Pope Center for from the assertion that innovators de- and Boulton did little with their engine system has a lot of hidden costs that Higher Education Policy. 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 MAY 2009 | CAROLINA JOURNAL

COMMENTARY Free Markets And the Media o what’s going to happen to to bias and agenda-driven report- the American newspaper? I ing. can’t count how many times As my connections to a daily SI have been asked and have tried newsroom recede, I’ve become less to answer that question since early willing to give newspapers a pass December. That’s when the Rocky when they fail in their most basic Mountain News in Denver, where role as a public watchdog. Yes, I worked as an editorial writer for newspapers pay people to attend the past three years, was put up for and report on mind-numbing but sale. important city council meetings, The short answer is, “go out land-use hearings, and legislative of business,” which the Rocky did in sessions. Most of us won’t do that late February, roughly seven weeks on our own time unless we have a shy of its 150th anniversary. And it’s personal interest — if our neighbor- one of many big-city dailies that are hood faces forced annexation, for in a financial freefall. The Internet instance. has both allowed news junkies to Still, any regular reader of EDITORIAL bypass print dailies and Carolina Journal can point obliterated newspapers’ out the dozens of stories, business model, thanks to large and small, about Reform Should online advertising alterna- official malfeasance right tives led by Craigslist and here in North Carolina Yahoo. the MSM have missed. The Newspaper Failing to keep an eye on Mean Better Association of America spending and regulation, reports ad revenues na- politicians and bureau- or most people, the meaning of newspapers because they could buy a tionwide plunged by 17.7 crats has undermined the word “reform” is clear. Once couple barrels of ink and kill us.” percent in 2008. Ad dollars media credibility. something is reformed, it ought In other words, Senate leaders are down roughly a third, RICK Providing readers Fto be better. If it’s not better, there was chose to broaden their tax base by or about $13 billion, since HENDERSON with incomplete informa- no reason for reform. targeting the services least likely to 2005. That money’s not tion can be just as harmful It’s too bad N.C. Senate lead- generate lobbying pressure against coming back, even when as publishing outright ers didn’t consider that definition of “reform.” the economy recovers. falsehoods. The tradition- “reform” when they applied the word That’s not the only problem. Paid circulation is plummet- al newspaper may be dying, and yet to the tax package unveiled as part of Senate leaders also stacked the deck ing as subscribers age. And their the public’s appetite for information state government’s ongoing budget against legitimate reform from the kids aren’t reading print newspa- about the inner workings of govern- debate. A package that would raise start. pers. ment has in no way diminished. taxes by $1.2 billion over the next two Rather than pursue reform that In February, a Pew Research Blogs and other alternative years cannot be better than the tax would cut the overall tax burden, or Center poll found that a mere 15 media cannot maintain the sheer system it’s designed to reform. at least maintain the current burden, percent of Americans born after volume of reporting about public There’s a grain of truth in the no- senators decided their “reform” pack- 1965 read print editions of dailies, institutions that dailies once provid- tion that senators aim to reform a tax age would have to generate at least compared with 28 percent of Boom- ed. With fewer boots on the ground, code that desperately needs reform- $500 million in additional revenue in ers and 48 percent of those born in and fewer reporters with sources ing. In discussing North Carolina’s the next budget year and at least $667 1946 and before. and contacts, less information will sales tax, for example, Senate leaders million in the following year. If readers fully migrate see the light of day. talk about broadening the tax base They guaranteed those tax online, they won’t restore newspa- What is possible, however, is and lowering the rate. That’s good. increases before they unveiled the tax pers’ fiscal health, because the rate journalism that takes on the job the But senators target particular “reform” package, approving a state structure for Web ads delivers only MSM has often abandoned, giv- services for new taxation, while leav- budget proposal that incorporated ad- a fraction of the revenues that the ing a better understanding of how ing others free from additional tax ditional tax revenues without spelling old system provided. public institutions work. A lot of burdens. Building repairs and music out details. Had the process of reform- But many of my questioners that information and analysis can downloads would face a new tax. ing the tax system led to a lower tax were more concerned about the ac- emerge from nontraditional outlets, Legal and medical services? None. burden, or even the revenue-neutral cess to information on the workings including niche publications, citizen Such choices inevitably mean option, senators would have left them- of government agencies and public journalists, and even organizations that legislators are picking winners selves a gaping budget hole. officials they’d lose if the paper with an ax to grind, including us. and losers, rewarding some types North Carolina needs tax reform. stopped publishing, or more likely, The publications and media of economic activity and penalizing The state’s top marginal tax rates for continued to shrink and the “news outlets that survive in this new others — rather than maximizing the individual and corporate income hurt hole” kept getting smaller. world will have to do so by build- freedom of taxpayers to make their the Tar Heel state’s competitiveness. A I don’t have a pithy response. ing reputations based on the quality own choices. sales tax that targets some transactions But I’m not as gloomy about jour- of the work they produce, instead Don’t assume that an electoral while ignoring others — because of nalism as I was in the Rocky’s final of the barrels of ink they purchase. days. They will live or die if they serve win gives a senator some special lobbying heft, rather than sound eco- Us ex-newsies are prone to their readers. insight that would help him make bet- nomic principles — makes no sense. wringing our hands and waxing That’s the way the free mar- ter choices about whom the tax man Real reform would help state govern- nostalgically about the wonderful ket’s supposed to work. CJ should target. Asked about the choice ment emerge from the current budget public service newspapers provided of services slated for new taxation, crisis on a solid footing for dealing in their glory days … and then Rick Henderson, a native of Sen. David Hoyle, D-Gaston, told Car- with the future. conveniently forgetting how often Wilkesboro, is managing editor of Caro- olina Journal: “We exempted haircuts. But if the current system is not mainstream dailies have succumbed lina Journal. We didn’t want to go to the barber- better than that which came before, shop and get beat up. We exempted there’s no reason for “reform.” CJ MAY 2009 | CAROLINA JOURNAL PAGE 25

EDITORIALS COMMENTARY Don’t Cripple Farmers Corporate Government regulations killing the golden goose Socialism griculture remains a critical officials are engaged currently in a se- ack in the fall, when conserva- Washington begging for another fix element of North Carolina’s rious effort to strangle and ultimately tives and a few lonely liber- to keep themselves out of (prob- economic present and future. destroy the tobacco industry, using als tried to stop the first in a ably inevitable) bankruptcy. Once a ButA like many other sectors, it’s under new excise taxes, smoking bans, and Bseries of massive federal bailouts of firm makes a special financing deal siege ­­­— from a credit squeeze, from the prospect of federal FDA regula- the nation’s financial-services and with government, it is no longer a the effects of worldwide recession, tion. auto industries, one of their best private company. Its owners and ex- and from ceaseless assault by govern- • 5 percent from beef and dairy arguments was that it ecutives shouldn’t expect ments and political extremists. cattle. Inspired by what they consider would prove extremely to be treated as such. Here’s how the state’s farm sec- to be successful litigation and regula- difficult to disentangle Among many other tor breaks out in sales, according to tion against Big Tobacco, some kooks Washington politicians flaws, North Carolina’s 2007 data from the state department are now ready to take on the fast-food from what used to be incentives policy warps of agriculture, and how public policy- industry with punitive taxes and private companies. The private business deci- makers are burdening each industry: lawsuits. principle of limited, con- sions by offering higher stitutional government amounts of money based • 35 percent from poultry. Some • 21 percent from vegetables would take a severe blow, on the numbers of jobs federal and state officials have been and other crops. While talking a they said. created. Businesses don’t oh-so-helpfully working to make it good game about wanting to nur- Since then, the pre- exist to create the maxi- easier for labor unions to organize ture farming and encourage the diction has proven all too JOHN mum number of jobs. They chicken and turkey processors. wider consumption of fresh fruits and prescient. We’ve seen the exist to create a return on • 22 percent from swine. In addi- vegetables, many politicians are in spectacle of an American HOOD investment to their owners tion to liberalizing union rules, some practice making it harder to grow and president swaggering by selling goods and ser- policy-makers have for years sought bring produce to market by neglect- around Washington like a callow vices that customers value. Creating to abolish the lagoon system that ing North Carolina’s roadways and new czar, firing the CEO of General jobs is a means to achieving that handles the majority of swine waste. imposing punitive taxes. Motors and even telling the head end, of course, but it’s only one of • 10 percent from nurseries, in- By no means should the state of one of the nation’s biggest banks them. Sometimes, in order to take cluding Christmas trees. The nursery or federal government to subsidize that he would not be allowed to advantage of a better opportunity business is reeling from the effects of farmers. Indeed, most farmers today repay federal “bailout” dollars to for growth or to preserve the firm the housing slowdown, which has produce for the private market, not protect the bank’s independence. itself, managers must eliminate jobs reduced demand for landscaping. If under the auspices of federal farm Members of Congress have gotten — either by substituting capital for some Smart Growth activists have programs. In an ideal world, all the into the act, too, quite literally, by labor or exiting a line of business their way, the slowdown in new-home subsidies would be abolished. staging feigned bouts of outrage for altogether. construction won’t be a temporary But first things first. Those who the TV cameras while preparing for It might be a wise decision one. say they want North Carolina farming their new role as autocratic commis- for Dell to reduce its expenditures • 7 percent from tobacco. It goes to remain a viable enterprise should sars of what they plan to be state- and output at the Forsyth plant. without saying that many government stop trying to cripple it. CJ run industries. It may serve the interests of Dell’s Those who follow state and lo- shareholders, customers, and even cal government shouldn’t have been workers in other locations. But surprised by all this. We’ve had a North Carolina state and local gov- preview of how this new corporatist ernments have no reason to defer Deregulate Telephony state would operate, thanks to the to what’s good for Dell. They have proliferation of corporate welfare forced taxpayers to invest in Dell deals. not as a computer company but as a Increased competition obviates old restrictions Look at what’s been happen- job creator in Forsyth County. ing in Winston-Salem. Years ago, Similarly, the federal govern- he market for telephony is less communicators. House Bill 1180 Dell Computers built a manufactur- ment has forced taxpayers to invest highly competitive. would end reporting requirements ing plant in Forsyth County after in banks, insurers, and automakers The ubiquity of advertis- and other rules that apply only to, say, receiving a massive package of state not for the purpose of improving ingT by wired, cable, and wireless AT&T but not Time Warner. and local incentives. The condition their service to customers or their companies is one indicator. Ads both The Public Staff of the N.C. was that Dell would be required returns to investors. Rather, Wash- facilitate competition — that’s one rea- Utilities Commission opposes the to meet an employment minimum ington is now leveraging taxpayer son why advertising serves the inter- legislature. Its executive director told scheduled to reach 1,700 jobs by dollars to compel these formerly ests of consumers by reducing prices TBJ that keeping tighter regulations October of next year. Now, after a private institutions to become arms — and constitute visible evidence of on phone companies serves consum- couple of rounds of layoffs at the of the state — to protect unionized competition. ers because “cable companies have no plant, local officials aren’t sure that jobs and to carry out the adminis- Another indicator is the rapid choice but to provide excellent service Dell is complying with the rule. tration’s public-policy objectives. decline in telephone landlines in to compete.” Competitive pressures Winston-Salem Mayor Allen Joines As America begins its transi- North Carolina. According to data improve service quality, but that’s is demanding that the company sur- tion from what had been a mostly reported recently by the Triangle Busi- precisely why government standards render additional information about free society to something new, a ness Journal, the number of access lines aren’t needed here. its employment at the plant. crossbreed between European-style delivered by the three big, regulated Consumers don’t need the Ordinarily, I’d be the first to social democracy and an inflation- telephone companies in the state — government to force one competitor defend a company’s right to keep its ridden banana republic, it’s worth AT&T, Embarq, and Verizon — was to “behave” so the others will, too. operational information confiden- noting that its precursor was ob- tial. Having to release it would put servable close to home, in the form just over 3 million in 2007, down 25 They already have that ability, via the Dell at a competitive disadvantage. of North Carolina’s foolish dalliance percent from the 2002 figure. power of choice. But Dell officials should have with corporate socialism. CJ Given these realities, it’s not The original sin of this story was thought of that before agreeing to surprising that the phone companies when government granted Ma Bell the incentives deal — just as banks are seeking to get out from under bur- and other phone companies monopoly ought to have spurned last fall’s John Hood is president of the densome state regulations imposed franchises. It never should have. A federal “rescue” and auto compa- John Locke Foundation and publisher of decades ago, when only Captain Kirk century later, it’s time to clean up the nies should never have come to CarolinaJournal.com. or Commander Koenig had wire- rest of the mess. CJ PAGE 26 MAY 2009 | CAROLINA JOURNAL

COMMENTARY Smoking and Freedom

am a nonsmoker and dislike being in en- closed places where others smoke. None- theless, I oppose the proposed law to ban smokingI in most workplaces because of the threat that the law poses to personal liberty, now and in the future. Like most people, there are many things I don’t like: loudmouths, the smell of many perfumes and colognes, people who use the word “like” in every sentence. In civil society we must inter- act constantly with people who are different from us, people who do things that we think are stupid, venal, unsightly, rude, or other- wise offensive. Making BRUCE such behaviors illegal is not CALDWELL the answer. Proponents of the ban argue that smoking raises health care costs for smok- Is a Big Financial Shift Coming? ers, and therefore to society. The evidence of that is murky. Everyone dies, so medical costs incurred at the end of life cancel out for smok- very recession creates costs and losses. Jobs was increasing even more. For example, from ers and nonsmokers. Smokers incur greater are cut, incomes are reduced, and stock values 1997 to 2007, household debt jumped 150 percent, drop. But something more has happened twice as fast as household income. But the value health care costs while they are living. But they Eduring the present recession — something that of household assets rose so much that household also die earlier. Do studies that allege higher many experts think will cause a major shift in our wealth (the difference between the value of assets costs of smoking take into account the added personal finances. and the value of debt) still doubled. costs to society (especially for retirement The devastating aspect of this recession has In other words, households believed they programs including Medicare) for nonsmokers been the tremendous loss in household wealth. Just could borrow more because what they owned was who, instead of dying at 70, live to 90? released numbers from the Federal Reserve show keeping ahead of what they owed. The other main argument concerns the that through the end of 2008, Now all that has changed with the big drop in dangers of secondhand smoke. Those at great- households had lost $13 trillion household wealth — the drop in what households est risk are those who work in places where in wealth, or 20 percent of the own. And households are responding by making others smoke, such as bars, and those who live wealth they had at the begin- big changes to their financial behavior. For the first with smokers. ning of the recession. time since World War II, households are paying People who choose to be firemen, police- No recent recession comes down on their debt and reducing their total amount men, coal miners, and construction workers even close to this wreckage. owed. choose high-risk jobs, and so do those who During the last recession of Saving is also making a comeback. After choose to work in bars. No one is forced to do 2001, household wealth fell a falling to nothing (0 percent) a couple of years ago, such work. mere 0.5 percent. In the 1990-91 we’re now saving over 4 percent out of our pay- People who live with family members recession, household wealth ac- MICHAEL checks. While modest, this still represents a signifi- tually rose 4 percent. The closest cant shift in financial behavior. who smoke have fewer choices. If we really WALDEN wealth plunge came in the 1973- Many observers think the 20-percent drop in want to reduce the incidence of secondhand 75 recession, when households household wealth is acting as a shock to the system. smoke because of its deleterious effects on saw 4 percent of their net assets evaporate. Households will remember the foreclosures, bank- those who cannot avoid it, the clear implica- The key reason for today’s situation is that ruptcies, and lost investment balances of the late tion is to ban people from smoking in their both twin pillars of our wealth — stocks and homes 2000s. The modest gains in household wealth will own homes whenever children are present or — have suffered during the current downturn. serve as a “check” on borrowing. there are others in the household who object. Again, it’s not unusual for stocks to fall when the But if saving goes up and borrowing goes This is the logical endpoint of the secondhand economy is shaky. It’s the unprecedented drop in down, certainly more households will be in better fi- smoke argument, the slippery slope onto real estate — mainly fueled by lower housing prices nancial condition. Yet at the same time, since house- which we step with the current proposed — that is unusual. holds are responsible for almost three-quarters of legislation. Households have long counted on their homes total spending in the economy, less spending means Such a law would represent, of course, a as a safe investment which increased in value over reduced business opportunities and fewer jobs. massive infringement on personal liberty by time. The experience of the last two years, with So do we risk financial meltdowns if house- the government, and is why I as a nonsmoker housing prices and values declining in most mar- holds borrow and spend, but sluggish growth and feel compelled to defend the few remaining kets, has shaken this belief to its foundation. high unemployment if they don’t? Fortunately, rights of smokers to smoke. Many states have This is the reason why many economists and there’s a third option. This is to use the savings financial experts say the recession of 2007-09 will be generated by households to invest and grow the overturned laws that allowed government to a turning point in personal financial behavior. Until economy, thereby increasing income. And higher legislate what went on in the bedroom. Let’s now, many households were “living beyond their levels of income can support both more saving and keep the rest of the house free, too. CJ means” by increasing their borrowing at rates much more spending — a “win-win.” faster than their income. Now they’re suffering the The key question, then, is how to create consequences. the conditions for option three — that’s the multi- Bruce Caldwell is a Professor of Economics However, before we cast too much blame, trillion-dollar question! CJ and the Director of the Center for the History of there was a very good reason for the borrowing Political Economy at Duke University. spree. While households’ borrowing was increas- Michael Walden is a William Neal Reynolds Dis- ing faster than their income, the value of their assets tinguished Professor at North Carolina State University. MAY 2009 | CAROLINA JOURNAL PAGE 27 Don’t Be so Quick to Undercut Legislature

veryone’s a reformer these days. the effect of reducing payments to executive is quite weak. liberal budgets. Unless the state can In my last column I discussed legislators by about $1.7 million, or 25 On UNC political scientist Thad get some Republican governors, then, the faulty logic of public financ- percent, if we assume 2007-08 session Beyle’s power ranking, the office conservatives are unlikely to be happy Eing for campaigns. Now, at the risk lengths. This sounds like a lot, but comes in 44th — largely because it with policy outcomes under session of annoying my friends, I’d like to it is only about 0.008 percent of the doesn’t have the line-item veto and limits. take a crack at a proposal that has the state’s annual budget. much of the Council of State is in- Of course, this problem is mol- support of Republicans and conserva- I have a better proposal to dependently elected. Compared to lified if the bill in question need not tives: session limits for the General reduce the legislature’s aggregate the legislature, however, our chief pass. There will come a point when Assembly. costs. Why not just get rid of some executive is extremely powerful. The the legislature would prefer to go Currently, lawmakers? Reducing the General patronage powers, staffing resources, home than have a law. But that point several bills at- Assembly’s membership by 43 would and capacity to leverage information won’t be reached often. Lawmakers tempt to restrict have about the same budgetary effect the governor enjoys are immense. who can brandish tangible legisla- the amount of time as Berger’s bill. I’m also in favor of a Legislative session limits would tive accomplishments will be a lot our legislators legislature that works hard. Session add dramatically to this imbalance. more popular than those who govern spend on Jones limits seem like they would reduce the At the moment deadlines for legisla- during gridlock. Desperate to do Street. Senate time members spend twiddling their tive agreement are applied equitably. something and with the top of the Republican Leader thumbs. But, as the private sector un- The fiscal year starts July 1, and both hourglass quickly emptying, the Gen- Phil Berger’s S.B. derstands, if you want quality outputs the governor and legislature are re- eral Assembly will acquiesce to the 156, for instance, you don’t reduce working hours, you sponsible for getting a budget done by governor’s proposals. essentially would ANDY pay for them. A smaller legislature — then. Both feel the pressure of public We want less costly govern- cap long sessions TAYLOR say cutting it to between 100 and 120 anger when they aren’t rapidly ad- ment. Unfortunately, many people at 100 days and members, about the size of the legisla- dressing the state’s problems. believe the legislature is a great place short ones at 55. tures in California and New Jersey — But if the legislature must get all to generate savings. But of all the Democrat Sen. would permit us to reward individual its work completed in a finite amount places where policy is made, it is the Tony Rand has S.B. 15 that prevents members more while limiting total of time while the governor does not, most deliberative, transparent, and members from receiving their per costs. It would also enlarge the pool the administration can simply wait responsive to public opinion. diem for more than 195 days during from which we draw. out the General Assembly when they Populated by generalists, it is the biennium. The General Assembly is cur- tussle over policy. This is accentuated also better able to craft a coherent The past decade is replete with rently inhabited disproportionately in budget politics. public policy than can state agencies, such efforts. Even our own John by retirees and small business folks. Armed with the veto and boards, and commissions. It mitigates Locke Foundation has been a support- Other talented North Carolinians just knowing the other branch faces time executive power. Let’s remember this er; session limits were a central part of cannot afford to take three-month constraints, the administration would before we undercut our General As- “Agenda 2002” and “Agenda 2004.” chunks out of their lives for the hold its ground and wait for the sembly. CJ But session limits are not a par- $14,000-a-year salary. legislature to come to it. Given that ticularly good idea. I’m all for saving The real problem with session the median senator and, especially, Andy Taylor is Professor and Chair money, but any amount recouped will limits, however, is that they empower the median House member have of Political Science in the School of Public be minimal. At current salaries and the governor. Compared to peers been to the right of recent Democratic and International Affairs at N.C. State per diems, Berger’s bill would have across the country, the North Carolina governors, the result would be more University. Watch the Budget, but Watch Freedoms, Too hen gauging the growth of ban in public and private workplaces, going to public transportation proj- water runoff requirements along the government, the focus is regulating what, when, and how a ects. Government subsidized buses coast (S.L. 2008-211) and rivers and often on budget and taxes. private business owner can allow and light rail systems attempt to move lakes (H.B. 3) are just a few land-use WWhen the economy is depressed, smoking on his premises — a busi- people and direct development where regulations being pushed through the revenues are down, and the demand ness he owns. The Railroad Corridor they think it should occur rather than General Assembly. for more taxes is resisted, govern- Management law (H.B. 116) gives the letting individuals choose. Environmental regulations great- ment’s growth is railroads power over property owners North Carolina remains one of ly impact where we get our power limited. Or is it? and opens the door to eminent do- the few states in the country that al- with little to no concern of the costs Not with govern- main takings through liberal right-of- lows municipalities to annex property associated with these requirements. ment’s power to way regulations. The Water Resource owners without their consent, charge The Department of Environment and regulate. Through Policy Act of 2009 (S.B. 907) picks up them higher taxes, and not provide Natural Resources has been granted regulation, the where last year’s Drought Manage- city services within a reasonable wide, sweeping rule-making author- General Assembly ment bill (S.L. 2008-143) left off in time — and all without any approval ity allowing it to increase regulations is attempting to tracking all water sources in North from those being annexed. Cities are with little legislative oversight. grow government Carolina with efforts to monitor and allowed to construct their territories So while the budget is certainly even when there is regulate water, water supplies, and as they deem most beneficial to their important and we all need to be a revenue shortfall. BECKI water allocation across the state. bottom line with no input from those concerned about what and how the Unwilling to GRAY Large investments are being who own the property — many of government spends our money, we make significant made in public transportation, while whom have chosen not to live in also need to watch how government spending cuts, funding for roads, bridges, and road cities. Proposals to require meaning- encroaches in our lives, engineering state leaders are proposing a $1.5 bil- maintenance is decreased. More than ful services and provide oversight of the way we live, controlling where we lion tax increase — fiscally growing $100 million of North Carolina’s $735 forced annexation (S.B. 494) have been live, how we enjoy our property, how government. The budget is not the million share of the federal stimulus slow to move through the General we travel, and how we run our busi- only measure of government growth. money designated for transportation Assembly. nesses. Taxes are only one way gov- Government also grows through will be used for public transportation, Efforts to regulate individual ernment grows. Regulations take free- increased regulation influencing our not roads. Under a misnamed Conges- property rights strictly continue to be doms away, too. CJ lives and encroaching on our freedom. tion Relief bill (H.B. 148), local govern- enforced and are becoming even more House Bill 2, passed by the ments would assume taxing authority invasive. Regulations on what can be Becki Gray is vice president for out- House, enacts a statewide smoking to increase sales tax with all revenue built on slopes (H.B. 782) and storm- reach at the John Locke Foundation. PAGE 28 MAY 2009 | CAROLINA JOURNAL Parting Shot Auto Dealer Expands Program for Heavy Hitters (a CJ parody)

By Ernie Carr special deal, the politician will be able Business Correspondent to buy the car after the fact. Bleecker RALEIGH said one of his salespeople will even ayetteville car dealer Bobby help explain the arrangement to the Bleecker, who has been provid- State Board of Elections. “It’s sort of ing a free car to former Gov. Mike like the way H&R Block will help you FEasley’s family as well as one to state if you’re audited,” Bleecker explained. Senate Majority Leader Tony Rand, has The program has a tiered-benefits announced an expanded special auto- list that a politician can “buy,” depend- mobile program for elected officials ing upon how influential he or she and their families. may be. Called the “Campaign Car Pro- For instance, in addition to hav- gram,” it will provide a free car, and ing a salesperson be a liaison with the pay all taxes and insurance, for any Board of Elections, certain politicians politician who meets a certain power could be added as members of the threshold, Bleecker explained. board of directors of a Bleecker deal- “What with the problems in the Some auto dealers are making special deals for influential politicians, among them ership. Rand holds such a position at auto industry, we can’t just go around Bleecker in Fayetteville and Hendrick in Charlotte. (CJ spoof photo) the Bleecker dealership in Dunn and providing free automobiles for mere a GMC Yukon that Bleecker has been drick, but she has bought one since says that’s why he has use of a free rank-and-file politicians,” Bleecker providing the family since 2003. Eas- news reports first revealed the - ar car. Board openings exist currently at said. “You have to have some kind of ley first said he was leasing the Yukon, rangement. the dealerships in Fayetteville and Red seniority, a committee chairmanship or then he said he was buying it, then a Hendrick told Carolina Journal Springs, CJ has learned. something, to qualify.” lawyer representing Easley said the and other news organizations that Easley and Rand have been act- Bleecker’s arrangements with vehicle was a campaign car provided Mary Easley’s car was a loaner. “Mary ing as mobile public relations men for politicians first came to light when The by Bleecker that eventually reverted to just couldn’t decide on a color, so she the Bleecker dealerships, Bleecker said. News & Observer of Raleigh revealed the Easley family after the campaign test drove the same model in six differ- “You can’t buy publicity like that,” he last month that while Easley, his wife became inactive. ent colors. Some women are like that,” said. “And the great thing is that even Mary, and their son Mike Jr. didn’t own Meanwhile, Mary Easley, who he said. if they get in any trouble of one sort or or lease any automobiles, they weren’t holds an important position at N.C. Under Bleecker’s expanded pro- another and get their names and faces without wheels. State University, was driving a 2009 gram, politicians are free to use their plastered all over the media, our deal- Junior, a second-year law student Honda Accord provided by NASCAR loaned car for any purpose, and if the erships get even more publicity. Win- at UNC-Chapel Hill, has been driving team owner and auto dealer Rick Hen- news media happen to uncover the win.” 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