INSIDE THIS ISSUE: DEPARTMENTS Pols and North Carolina 2 C A R O L I N A Education 7 public work- Local Government 10 From Page 1 14 ers take it Higher Education 17 on the chin Books & the Arts 20 Opinion 24 in poll/2 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION October 2011 Vol. 20 No. 10 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Obama Plan: Teacher Jobs One Year Only After a year, there ESC Reports Show is no federal funding No Net Public Job for the added jobs Losses to Date By Don Carrington Executive Editor By Don Carrington Executive Editor RALEIGH RALEIGH resident Barack Obama stood ov. Bev Perdue continues before thousands of screaming to blame North Carolina’s supporters at North Carolina high unem- State University Sept. 14, urging Con- P ploymentG rate on a gress to pass the American Jobs Act, loss of government his $450 billion plan to create jobs and jobs resulting from stimulate the economy. budget cuts by the “Pass this jobs bill, and there R e p u b l i c a n - l e d will be funding to save the jobs of up President Obama discusses his jobs plan at a rally at N.C. State’s Reynolds Coliseum in Raleigh on Sept. 14. (CJ photo by Don Carrington) General Assembly. to 13,000 North Carolina teachers, Perdue may be cops, and firefighters,” he said. But he help states and localities avoid and re- with providing each job in North Caro- right, but the of- didn’t say that his bill would fund the verse layoffs now, and will provide lina. Since the average annual cost of ficial information Gov. Beverly jobs only for one year. Nor did he say $900,300,000 in funds to North Caroli- teacher pay and benefits in the state is provided by the Perdue how the jobs would be paid for after na to support 13,400 educator and first $56,000, funding in Obama’s jobs bill state’s Employ- that — or whether state and local gov- responder jobs.” would cover a little more than one year ment Security Commission doesn’t ernments would have to lay off other As in the president’s comments, of compensation. back up her claims. public employees to maintain the jobs the White House press release does Sections 204-209 of the bill in- Perdue hinted at large gov- of those hired under the bill. not specify how long the jobs would clude provisions requiring states to ernment job losses this spring. A White House press release de- be funded. Dividing $900,300,000 by “meet the requirements” of the law scribing the benefits to North Carolina 13,400 yields $67,186.57 to cover salary, was more specific. “These funds would benefits, and any other costs associated Continued as “Obama,” Page 14 Continued as “ESC,” Page 14 Perdue Prepared To Flip on Dam Takeover Bid? PAID the governor supports bringing these RALEIGH, NC U.S. POSTAGE Clean Tech jobs to North Carolina. PERMIT NO. 1766 NONPROFIT ORG. Governor backs Alcoa-Yadkin However, Clean Tech has stated that it needs to overcome certain obstacles tenant at site of old before investing in Stanly County. Gov. Perdue is working diligently to try to Alcoa smelting plant overcome any barriers that might pre- DAM TAKEOVER vent the company from investing and By Don Carrington growing jobs in North Carolina.” Executive Editor Until recently, Perdue was one of RALEIGH being developed by Alcoa at the site the obstacles to a Clean Tech deal. She ov. Bev Perdue may be poised of a former aluminum smelting plant. wanted North Carolina to take over the Alcoa facilities, claiming the state to end the state’s effort to take Clean Tech’s plans are contingent on would be in a better position to control over Alcoa’s hydroelectric fa- Alcoa retaining control of its hydro- the water, sell power from the dams, Gcilities in Stanly County so that a man- electric facilities. and deal with environmental issues re- ufacturing company can bring 250 new Perdue spokesman Mark John- lated to the aluminum smelting opera- jobs to the town of Badin. son told Carolina Journal Sept. 20 that tions that took place there for nearly a Clean Tech Silicon & Bar LLC the governor supported the Clean Tech wants to invest $300 million and cre- project. When asked if Perdue’s sup- The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 ate 250 jobs at the Badin Business Park port was conditional, he said, “No, Continued as “Perdue,” Page 15 PAGE 2 OCTOBER 2011 | CAROLINA JOURNAL North Carolina C a r o l i n a Poll: Voters Take Dim View of Pols, Public Workers

By David N. Bass budget crisis, 48 percent say elected of- Journal Associate Editor ficials, while 28 percent say excessive Rick Henderson RALEIGH state government spending. Managing Editor oters take a dim view of bank- • A plurality (47 percent) say the rolling public employees’ sala- best way to ensure enough funding for Don Carrington ries and pensions on the backs Executive Editor public employee benefits is to cut gov- Vof taxpayers and believe that workers’ ernment spending. David N. Bass, Sara Burrows pay should be clipped to reflect state • Fifty-six percent favor reducing Mitch Kokai, Michael Lowrey government budget crunches. or eliminating certain state services to Associate Editors The findings are in a new nation- control budget deficits. Thirty-five per- al poll from the free-market Manhattan cent are opposed. system. Jana Benscoter, Kristy Bailey Institute for Policy Research. • Asked if they favor phasing out “Voters clearly identify reck- Kristen Blair, Roy Cordato A plurality of voters also say that tenure for teachers “because it protects Becki Gray, Sam A. Hieb less spending and promises made by salary and benefits for government bad teachers from being fired while Lindalyn Kakadelis, George Leef state politicians as a major culprit in workers are too high for their duties, making it harder to bring in new and Karen McMahan, Donna Martinez the state’s budgetary woes, and vot- while half of voters oppose collective better teachers,” 56 percent agree. Karen Palasek, Marc Rotterman ers don’t think they should be penal- bargaining for union members. • Sixty-nine percent favor mov- Michael Sanera, Tara Servatius ized with higher taxes to finance these George Stephens, Jeff Taylor The results were drawn from two ing new public employees from a promises,” said Brian Balfour, a fiscal Michael Walden, Dan Way polls of voters — one nationwide, and defined-benefit retirement plan to a Karen Welsh, Hal Young the second from 10 states, including policy analyst with the conservative Civitas Institute. defined-contribution plan, compared John Calvin Young North Carolina, and come while states to 17 percent who oppose that idea. Contributors are embroiled in a political tug of war The poll took place two months between public-sector groups and law- after the General Assembly passed a Key results in North Carolina makers forced to trim spending to bal- $19.7 billion budget that reduced state Adam Barrett ance government checkbooks. spending. The Republican-controlled • Fifty-three percent oppose rais- Nicole Fisher legislature gave the State Health Plan ing taxes to keep public employee ben- Zryi Mai A chief takeaway from the poll: voters’ distaste for politicians. Forty- a facelift that requires workers to pitch efits at current levels, compared to 41 Daniel Simpson in for their health insurance. Efforts to percent who are willing to pay more Alissa Whately eight percent of respondents said that Interns elected officials are to blame for the reform the state’s pension plan are in taxes. budget crisis, compared to 6 percent the works as well. • A greater majority of North Carolinians (66 percent) rejects the idea who say state governments didn’t tax Key results nationally Published by enough. of service cuts so that public employ- The John Locke Foundation “The level of ire at elected offi- • Forty-one percent say that sala- ees can maintain current benefit levels, 200 W. Morgan St., # 200 cials is remarkably high,” said Doug- ries and benefits for most public em- compared to 26 percent who are will- Raleigh, N.C. 27601 las E. Schoen, the lead pollster on the ployees are too high for the work they ing to take cuts. (919) 828-3876 • Fax: 821-5117 • Forty-eight percent say that www.JohnLocke.org survey. do. Another major finding: Voters • Voters aren’t willing to have cutting government spending is the Jon Ham aren’t willing to have their taxes raised their taxes raised to accommodate cur- best way to pay for public employee Vice President & Publisher or social services cut in order to keep rent salaries and benefits for public benefits, compared to 23 percent who compensation for public workers at workers (65 percent to 29 percent), but say current employees should contrib- John Hood current levels. On that issue, respon- they’re also not willing to have state ute more toward their pensions and Chairman & President dents oppose increased taxes by an al- social service programs cut to fund the health insurance. most two-thirds margin. compensation (52 percent to 37 per- • Fifty-five percent say they Bruce Babcock, Herb Berkowitz Although a slim majority of vot- cent). would oppose raising taxes to reduce Charlie Carter, Jim Fulghum CJ Chuck Fuller, Bill Graham ers had a negative view of union ne- • On who is to blame for the state budget deficits. Robert Luddy, Assad Meymandi gotiations, they were split on whether Baker A. Mitchell Jr., Carl Mumpower, laws recently passed in Ohio and Wis- J. Arthur Pope, Thomas A. Roberg, consin limiting collective bargaining David Stover, J.M Bryan Taylor, are a good idea. Andy Wells Board of Directors Tar Heel results Visit our Triangle regional page Carolina Journal is a monthly journal On some state-specific questions, http://triangle.johnlocke.org of news, analysis, and commentary on state Tar Heel voters polled slightly to the and local government and public policy issues left of their national counterparts. For The John Locke Foundation in North Carolina. instance, 48 percent of respondents in has five regional Web sites span- ©2011 by The John Locke Founda- the national survey said that public tion Inc. All opinions expressed in bylined employee salaries should be frozen ning the state from the mountains articles are those of the authors and do not and benefits reduced to shore up state to the sea. necessarily reflect the views of the editors of budgets, compared to 40 percent who CJ or the staff and board of the John Locke believe the opposite. The Triangle regional page in- Foundation. Material published herein may be reprinted as long as appropriate credit is In North Carolina, the numbers cludes news, policy reports and given. Submissions and letters are welcome were almost flipped: By a 46 percent research of interest to people and should be directed to the editor. to 42 percent margin, voters oppose in the Research Triangle area. CJ readers wanting more information freezing public-sector employees’ sal- between monthly issues can call 919-828- aries or requiring them to contribute It also features the blog Right 3876 and ask for Carolina Journal Weekly more to their benefits package. Report, delivered each weekend by e-mail, But on other metrics, North Caro- Angles, featuring commentary or visit CarolinaJournal.com for news, links, lina voters favor a more conservative on issues confronting Triangle and exclusive content updated each weekday. path. They support a reform of health residents. Those interested in education, higher educa- benefits that requires public workers to tion, or local government should also ask to receive weekly e-letters covering these issues. contribute to their own insurance and back a revamp of the state’s pension The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 OCTOBER 2011 | CAROLINA JOURNAL PAGE 3 North Carolina Fiscal Amendments Postponed in 2011 May Be Revived in 2012

By David N. Bass three — Missouri and Louisiana in Associate Editor 2004, and Alabama in 2006 — have RALEIGH done so in primaries. Kansas and Texas epublican leaders in the North passed amendments in off-year special Carolina General Assembly elections in 2005. The average margin convened a special session in of victory the five states was 75 - per mid-SeptemberR to pass constitutional cent. amendments, but the real story might Republican primaries in four be what they didn’t pass. competitive congressional districts Lawmakers delayed action on also could drive conservative voters three amendments that could shore to the polls. That’s dependent on the up the state’s fiscal foundation. The redrawn maps holding up in court in proposals would limit the spending time for the primary. growth of state government, require N.C. State University political a three-fifths vote of the legislature to science professor Steven Greene said raise taxes, and create a state savings he doubts that any primary races will account. drive GOP voter turnout. But he added Weary from a six-month session that demographics could be on the side in which legislators wrangled over of amendment supporters. a new budget and a host of other is- “In any off-cycle election, the sues, Republicans postponed the fis- electorate skews older,” Greene said. cal amendments until next year — or “That electorate is more opposed to beyond. The GOP also slowed action gay marriage, and therefore makes it on amendments addressing eminent more likely that the amendment is go- domain and term limits for top legis- Legislators weary from a six-month session earlier this year postponed deliberation ing to pass.” lative leaders to clear up troublesome on fiscal constitutional amendments, and slowed action on others. (CJ file photo) language in each. (commonly known as TABOR). Under more revisions. Short session docket The successful amendment — the amendment, General Fund expen- “These are concepts that we have At least two amendments, de- Senate Bill 514, Defense of Marriage ditures would have to correlate with worked on for a number of years,” said layed during the special session in — would define marriage as the union population growth plus inflation. A Rep. Nelson Dollar, R-Wake, a primary September, could crop up again during of one man and one woman and ban two-thirds majority vote of the legis- backer of H.B. 188 and H.B. 913. “Now the short session next year: eminent same-sex marriage. It passed the House lature would be needed to exceed the that we’re in the majority, we need to domain and leadership term limits. 75-42 and the Senate 30-16 and will ap- expenditure limit. see if we can put together a reasonable, “It will almost assuredly be on pear on the primary ballot in May. The idea follows on successful workable proposal for limiting the the ballot in November 2012,” said Amendments must be passed by passage of TABOR in other states, in- growth of government that will actu- House Majority Leader Paul “Skip” a three-fifths vote of the legislature be- cluding Colorado in 1992 and Wash- ally work and not keep us from being Stam, R-Wake, of the eminent domain fore going to a vote of the people. The ington state in 2007 and again in 2010. able to address the needs of the state.” amendment. governor can’t veto amendments. “Had we had some constraints Private-property advocates say in place, the legislature wouldn’t have Nuptials vote the delay could work to their advan- Other proposed amendments had to do what it had to do this session Republicans and conservative tage as it will give lawmakers more on the spending side,” said Rep. John Other proposed amendments Democrats have introduced marriage time to work out kinks in the language. Blust, R-Guilford, TABOR’s primary that were scuttled called for making amendments each session since 2003. The existing version says that private sponsor. “It’s always harder to slam English the official language for busi- Statutory law already bans same-sex property “shall not be taken by emi- brakes on than it is to bring the vehicle ness in North Carolina, codifying the marriage, but advocates of the amend- nent domain except for a public use.” to a stop over a decent distance.” state’s public records law in the con- ment say it is necessary to prevent ju- That’s problematic because courts stitution, and creating an independent ‘Taken by surprise’ dicial activists from striking down the have broadly interpreted the term redistricting commission. law. “public use,” said Daren Bakst, direc- Shortly after the September ses- Blust, who chairs the House ju- In response to pressure from tor of legal and regulatory studies for sion adjourned, House Speaker Thom diciary subcommittee where TABOR Democrats, Republicans scheduled the John Locke Foundation. Tillis, R-Mecklenburg, said he didn’t was assigned, added that he probably the marriage-amendment referendum “Too much is being left up to anticipate any more amendments aris- would have pushed the bill through for the May primary election rather courts to interpret,” Bakst said. ing before the short session next year, his committee had he known the legis- than the general election in Novem- On the term-limits amendment, lature would adjourn the long session even though lawmakers will return to ber. Democrats had worried that a bal- the House and Senate couldn’t agree by mid-June. Raleigh Nov. 7 for another special ses- lot question in the fall would prompt on final wording. The House version “I was taken by surprise at how sion. greater turnout among conservative would limit the speaker and Senate quick we got out of the regular ses- Democrats chided the Republican voters, hurting Democratic candidates. president pro tem to no more than two sion,” Blust said. “We were not re- majority for convening the September consecutive terms, while the Senate ally consulted — at least the member- The timing of the referendum in- session in the first place. “This session version extended that to four terms. ship wasn’t consulted, or the caucus creases the likelihood that it will pass is indeed one of the biggest wastes ever A compromise could be three polled.” because Republican primaries for pres- to hit the North Carolina legislature,” ident or governor still might be in play, terms, but even that could be difficult said House Minority Leader Joe Hack- Another amendment — House Bill 784, Three-Fifths Vote to Levy said Peace College political science to achieve. Shortly after the session ney, D-Orange, who served as speaker Taxes — would bar lawmakers from professor David McLennan. In con- adjourned, Senate leader Phil Berger, between 2007 and 2010. raising taxes without a supermajority trast, Democrats probably won’t have R-Rockingham, issued a press release Tillis retorted that Hackney suf- vote in both chambers of the legisla- key races to drive turnout, he added. suggesting a two-term limit for legis- fered from poor math skills. “This is ture. Right now, a simple majority is “From a purely political point of lative leaders and a one-term limit for still, with the additional legislative needed. view, it’s probably better for its passage the governor, ensuring that leaders are days, shorter than any legislature A third — House Bill 913, Amend and better for not distracting peoples’ in power for no more than four years [Hackney] presided over,” Tillis said. Constitution/State Savings Fund — attentions away from the major races at a time. Fiscal amendments would require the legislature to lay in November,” McLennan said. “[H] The idea got a lukewarm recep- aside a percentage of revenue growth aving this on the ballot would certainly tion in the House. “I don’t think that’s The fiscal-related amendments in a savings account to be used for spe- seem to bring in a lot of Republicans.” going to fly,” Blust said. never got a vote. Chief among them is cific expenditures only. Thirty states have amended their Tillis still holds out hope a com- House Bill 188, Taxpayer Bill of Rights All three amendments are in for constitutions to define marriage. Only promise will be reached. CJ PAGE 4 OCTOBER 2011 | CAROLINA JOURNAL Local Government State Briefs Officials Take Class on Delivering Bad News McCrory trails Tea Party By Karen McMahan ible, so “when we have potentially troublesome information Pat McCrory is the leading con- Contributor for the public, we must get out the information first, frame tender for the Republican guberna- RALEIGH the information, and provide the proper context.” torial nomination in 2012, but a new mid growing public dissatisfaction over local gov- Explaining the principle of recency, Weaver said, “the poll from a Democratic-leaning firm ernment attempts to raise taxes to meet budget last thing officials say is what the public remembers most.” suggests that the former Charlotte shortfalls, 29 local governments have taken training The third principle of strategic communication, Weaver ex- mayor is vulnerable to a challenge Ato educate officials on how to talk to citizens, constituents, plained, is that citizens reject information contrary to their from the right in North Carolina. and the media about possible budget cuts or tax increases. beliefs, even when there’s evidence that conflicts with those Asked if they would prefer The training was via a webinar called “Delivering Bad beliefs. Thus, officials “must communicate with the voters’ McCrory or a more conservative News: How to Help Citizens Understand the Realities of viewpoint in mind.” candidate, 40 percent of Republican Tough Economic Times” presented in May of 2010. It was To frame a message, Weaver said officials should use primary voters opted for McCrory, sponsored by the School of Government at the University action and descriptive words and maintain consistency of compared to 46 percent for the un- of North Carolina at Chapel Hill, the message throughout all levels named Tea Party challenger. Fifteen and was facilitated by Mark Weav- of the organization. As examples, percent said they weren’t sure. er, president of Communications Weaver said officials might de- Matched against actual can- Counsel Inc., a national communi- scribe a budget shortfall as a “gap- didates, McCrory performed much cations consultancy in Columbus, ing hole” or as “unprecedented,” better. In a head-to-head match, he Ohio. Weaver has advised top-lev- then everyone agrees to use those bested Republican U.S. Rep. Renee el elected government leaders, in- same words. Ellmers of the 2nd Congressional cluding President Ronald Reagan, Communications affect per- District 61 percent to 10 percent. and nonelected officials for more ception, Weaver said. Some years Results were similar in a face-off than two decades. ago, when the son of a governor between McCrory and Republican Among the topics: under- of a small state was arrested, the Agriculture Commissioner Steve standing how the public thinks; media used the term “governor’s Troxler — 51 percent to 15 percent. taking the community’s “pulse”; mansion,” making it sound like a “Pat McCrory could have a lot determining what bad news to millionaire’s home, which wasn’t of trouble with someone running to share and when; using communica- accurate. So Weaver said the staff tion principles to craft the message; starting using the term “gover- his right as the Republican electorate and ways to deliver the message. nor’s residence.” gets more and more conservative,” North Carolina local govern- In a telephone interview, said Dean Debnam, president of Pub- ment officials may well feel the Carolina Journal asked Weaver if lic Policy Polling. “The question is need to do a better job of commu- the webinar could be viewed as just whether someone will step up.” nicating with their constituents, a public relations tool to help of- given the results of a number of tax ficials counteract public resistance proposals over the past few years. Portion of Communications Counsel, Inc.’s Face- to tax increases or budget cuts. John Locke Foundation re- book page. “It’s incumbent on town leaders to Remedial rate increases searchers have found that from get out good, credible information Enrollment in North Caro- Nov. 7, 2007, through May 18, 2011, to the public and let the democratic lina community college remedial 54 counties held 78 referendums seeking a quarter-cent in- process work,” Weaver said. crease in the sales tax. Only 19 were approved. Some coun- courses grew at a faster rate than Who participated? the state’s public school gradu- ties have tried to win voter approval two or more times, ation rate in a recent two-year including Columbus, Guilford, Harnett, Orange, and Ran- Records provided to CJ by Thomas Thornburg, senior period. The John Locke Founda- dolph. associate dean at the School of Government, show that Bur- tion’s top education expert argues Earlier this year, Cabarrus and Halifax counties passed lington, Fayetteville, Greensboro, Lenoir, and Troutman had in a new Spotlight report that the quarter-cent sales tax hikes. Buncombe, Durham, and Or- the largest number of participants — as many as 20 — at- numbers suggest school gradua- ange counties each have a referendum on the Nov. 8 ballot. tending the “Delivering the Bad News” webinar. tion standards remain “alarmingly In 2007 and 2008, 21 counties tried to pass a 0.4 percent Rebecca Rogers Carter, management services manager land transfer tax. All failed. Gates and Tyrrell counties tried low.” for Fayetteville, said her department hosted a listening sta- twice and failed. JLF’s Terry Stoops focused his tion of the webinar in City Council chambers for about 20 Results released Sept. 21 from a national opinion poll research on increases in both public managers and supervisors. At the time, they were review- by the Manhattan Institute on the economy and the budget- school graduation rates from 2007 ing a social media policy and developing platforms to com- ing process of state and local governments show that voters municate with the public better. Because the webinar em- to 2009 and enrollment in state com- strongly oppose higher taxes. A majority of the 1,000 regis- munity college remedial courses phasized citizen engagement and the growing use of social tered voters in the survey favor spending cuts to stabilize media, Carter said, “I saw this as an excellent opportunity in the following school years. state government finances. Respondents were drawn from “The state’s four-year gradua- for general training in applications of communications prin- 10 states, including North Carolina. ciples.” tion rate grew by 2.3 percent during Discussing some of the key findings in The Wall Street that time period, from 69.5 percent Jondeen Terry, city clerk for the City of Burlington, Journal, pollster Douglas Schoen reported that 48 percent of told CJ that all city department heads (20 people) were told to 71.8 percent,” Stoops said. “At the the respondents said “elected state officials made careless same time, enrollment in commu- by the city manager to attend the webinar. The city budget and self-serving decisions,” indicating voters blame politi- already had been determined by the time attendees partici- nity college remedial classes — also cians for “creating and exacerbating the problems.” pated in the webinar, Terry said, so the purpose was to learn known as ‘developmental’ classes communication strategies as part of overall training. — increased by an even faster rate.” The webinar’s message CJ asked Thornburg how much Weaver was compen- By 2009-10, more than one- In a segment on “Putting the Message Together,” sated, and by whom, to conduct the webinar. Thornburg half of students newly enrolled in Weaver stressed the importance of choosing the “best said the School of Government did not pay Weaver for his a North Carolina community col- words,” saying “words matter,” and that there’s a difference work, and there was no contract for a fee or for his expenses. lege took a remedial math course, between spinning a topic and framing it. Asked whether he subsequently received a contract while nearly 40 percent enrolled Local government officials need to get out their mes- with any attendees of that webinar, Weaver said he has in a remedial English course. sage to the public in advance of bad news so they can frame not performed any paid work for them. He did mention “In sum, 64 percent of new the message and build their case for their proposed solution that he conducted a preconference seminar titled “Mas- community college students en- to the problem, Weaver said. They also need to communi- tering the Media: How to get good news coverage even rolled in one or more remedial cours- cate their successes. when things are going bad,” for the 2010 annual confer- es, a 7 percent increase from the 2007- Weaver covered the principle of primacy, which says ence of the N.C. Association of County Commissioners, in 08 school year,” Stoops said. CJ the first thing an unbiased observer learns is the most cred- conjunction with the N.C. League of Municipalities. CJ OCTOBER 2011 | CAROLINA JOURNAL PAGE 5 Local Government North Carolina Beach Plan Survives Hurricane Irene’s Visit By Karen Welsh beach house? That’s your risk.” Contributor Birkland said while the beach RALEIGH plan provides cheaper insurance to he time bomb has been de- homeowners along the ocean, it also fused for now, but it still could means people of modest income in- detonate. That’s the word from land will have to subsidize the prop- stateT Insurance Commissioner Wayne erty at the beach if a massive storm hits Goodwin concerning the North Caro- a large enough portion of the coastline. lina Beach Plan after Hurricane Irene If a property owner assumes tore through North Carolina in early more risk by building in a certain area, September. Birkland said the insurance to protect As a result of wind damage from that investment should cost more. the storm, an estimated $177 million “How much should those liv- to $200 million could be siphoned ing inland be expected to do?” Birk- from the N.C. Beach Plan, which has land asked. “Let the insurance market a reserve of $600 million. “The last find its level on the private level, not few weeks I’ve been on the coast by through the state-run beach plan. Get land and air,” Goodwin said. “Hur- rid of the beach plan, and make hom- ricane Irene was an epic storm that eowners and insurance companies as- The state’s new beach plan spreads the cost of damage over $1 billion to taxpayers of sume the high risk.” hit the state. It had an impact on the the state, but critics say beachfront homeowners should not be able to pass liability beach plan, but because of the passing on to others in the rest of the state. (CJ photo by Don Carrington) Tapping residents of House Bill 1305 in August 2009 it’s been able to withstand the storm’s im- created in 1969 as a supplemental in- We took it to the legislative session, Goodwin said tapping residents pact. [Irene] caused a dent in the beach surance of last resort; however, the and although it took many months, inland would be a “last resort.” He plan resources and reserves, but the General Assembly modified the plan we got it passed. Now, if an epic storm said the storm would have to cause state could withstand another major in 2003, letting it provide cheaper poli- should blow through all the resources, more damage than Hurricane Hazel in storm or a series of smaller storms if cies for homeowners. The new, low- then we should be covered. It’s a large 1954. A storm that severe could impose need be.” cost option put insurance companies reason the beach plan has been able to a recovery charge of up to 10 percent directly in the path of a financial storm, sustain itself after Hurricane Irene.” on homeowners’ premiums. “This Change in tone as it quickly became the first choice for could not be or should not be a per- coverage by policyholders. Limits assessments That’s quite a change in tone for manent increase,” Goodwin said. “The Companies felt they would be The new law limits assessments charge would decrease as soon as it is Goodwin. He called the beach plan, stuck with up to $70 billion in recovery also known as the “Coastal Insurance on the state’s insurers at $1 billion in paid off. I am adamant about this and claims and could go bankrupt if a cat- the case of a catastrophic coastal storm. other protections.” Wind Pool,” a “ticking time bomb” a egory 3, 4, or 5 hurricane hit the coast, little more than two years ago. Though If the damage is worse than that, Good- Not everyone is satisfied with the so a number of them stopped writing win said, the residents of the state will current plan. Sen. Harry Brown, R-On- the new beach plan has held togeth- new policies anywhere in the state. er so far, critics say inland residents have to pick up the rest of the tab. slow, said he will chair a study on the Goodwin began meeting with busi- North Carolina Beach Plan beginning should be forced to take on some of the Not only has the new law stabi- ness owners, bankers, insurance com- lized the plan, Goodwin said a good this month. He said the plan has pitted risk of coastal property owners by pay- panies, and legislators in early 2009 to number of insurance companies also the 20 coastal counties against the 80 ing higher insurance rates. develop the new legislation. have returned to do business in the inland counties. Goodwin witnessed insurance “I strongly supported the law, state. “We were effectively able to stop “If you are going to rate insur- companies exit the state in record num- that the beach plan should purchase the exodus of insurance companies,” ance based on the county a person bers over the previous plan, which was reinsurance for the ‘big one,’” he said. he said. “And the insurance rates are lives in, then there has to be some fair- underfunded by an estimated $65 bil- “We had a lot of oars in the water and leveling off.” ness about it,” Brown said. “This is a lion at the time. The beach plan was a lot of stakeholders working on this. Stuart Powell, vice president legitimate argument. If you choose to of insurance operations and techni- live right on the beach, the rate should cal affairs for the Independent Insur- be higher, but not for the whole coun- ance Agents of North Carolina, said ty or state. There is a shared risk to a his group feels the beach plan is more point, but we’ve gone beyond that.” Visit our Western regional page stable since H.B. 1305 passed. “It was Brown said the personal policy something to be worried about, but for his inland home has risen from http://western.johnlocke.org they shored up the cash and reinsur- $1,600 to $3,800 since H.B. 1305 was ance position of the plan,” he said. enacted. “I don’t live on the beach, and The John Locke Foundation “We are considerably better off than I had no personal claim on the damage has five regional Web sites span- we were even three or four years ago. caused by Hurricane Irene,” he said. ning the state from the mountains With Hurricane Irene we were able to “It’s not fair for people who live in- sustain a pretty good hit, and we are to the sea. land that never have had claims of any not reeling from it.” kind. I know it’s a tough issue, but we have to sit down and look at this and The Western regional page in- Questions of liability come up with something that is fair to cludes news, policy reports and Thomas Birkland, professor of everyone.” research of interest to people in public policy at the William T. Kretzer Brown also said he is concerned the N.C. mountains. School of Public and International Af- that the insurance commissioner has fairs at N.C. State University, said that the power to sign off on rate increases It also features the blog The although the beach plan is working, without any way for the public to chal- Wild West, featuring com- beach property owners should assume lenge the decision. Goodwin is uneasy that the beach mentary on issues confronting full liability for their property. “You have a right to develop and plan remains an ongoing issue with Western N.C. residents. use your property any way you want, lawmakers. “If they undo the changes but you also deserve the right to as- of the law, then that would relight the sume the risk,” he said. “Why should fuse of the ticking time bomb again,” The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 other people assume the risk for your he said. “That would be a calamity.” CJ PAGE 6 OCTOBER 2011 | CAROLINA JOURNAL North Carolina Wildlife Commission Considering Major Changes in Hunting Rules

By Dan Way sociation board of directors, said the Contributor lack of opportunity to kill hogs at night GRAHAM after Oct. 1 is something “that a lot of generations-deep tradition of people feel is a step in the wrong direc- hunting deer with dog packs tion of trying to control the population would be outlawed in Orange of feral swine in the state.” CountyA if opponents of the practice get Thinning out the deer herd is their way. Advocates of deer hunting the goal of proposals to increase the with dogs fear an Orange County ban either-sex deer season from conserva- could spark a domino effect elsewhere tive to moderate on Butner-Falls of in the state. They say fostering coop- Neuse Game Land and in Polk Coun- eration among dog hunters and land- ty, to allow additional archery and owners would be a more reasonable, muzzleloader deer hunting on Sand- less punitive approach. hills Game Land, and to increase the The two sides faced off at a Sept. either-sex deer season from moderate 7 public hearing of the North Carolina to maximum on Neuse River Game Wildlife Resources Commission on 55 Land. A conservative season has the proposed changes in state hunting, fewest days of hunting for either sex; a fishing, and trapping regulations for maximum season allows taking either 2012-13. One proposed change would sex the entire season. expand the use of dogs to hunt deer to Sundays in certain counties where it Deer population overgrown already is allowed the other six days “There’s increased motor vehicle of the week. That would make the law accidents statewide” involving deer, uniform with other counties that allow Cobb said. “We have more people, we deer dog hunting any day of the sea- have more roads, we have more people son. on the roads, and we have more deer.” The lively discussion showed The deer herd numbers an esti- that the issue, which captured state- mated 1.1 million. In 2010-11, hunters wide interest during the 2011 session harvested 175,157 deer, according to of the General Assembly, still is sim- The contentious divide between proponents and opponents of using dogs for deer wildlife commission data. mering. A bill introduced by state Sen. hunting continues to simmer, with competing measures for expansion and banning A bear population that has grown being proposed. (CJ file photo) Ellie Kinnaird, D-Orange, to ban deer to about 10,000 statewide provided the hunting with dogs in Orange County impetus for proposing a longer bear failed to get out of committee. road … the dogs are trespassing onto it very clear they strongly support the private property” and threatening tradition of hunting with dogs in many hunting season in Greene, Halifax, Hunting a huge industry livestock, Hauser said. “I’m sure you forms, but they do not support tres- Lenoir, Martin, Northampton, and Pitt know this is happening in other coun- passing,” Myers said. counties, and opening a bear hunting Some 3.4 million people, includ- ties of North Carolina.” season in Edgecombe, Harnett, John- ing nonresidents, participate annu- Valerie Foushee, a member of A strong divide ston, Nash, Stokes, Vance, Warren, ally in hunting, fishing, and wildlife the Orange County Board of Commis- Wayne, and Wilson counties. If the watching in North Carolina, according After the meeting, he said mov- proposals are adopted, the bear season sioners, lamented that the county has ing the line that divides dog hunting to a 2006 survey by the U.S. Fish and been unable to get legislative approval would be opened in previously closed Wildlife Service, the most recent data counties from those where it is not al- portions of Cleveland, Burke, and Sur- of dog hunt bans. “Twice our board lowed “would be a very complicated available. The industry has a $2.7 bil- has voted on this, and we have sought ry counties, and the season would be lion economic impact statewide, that process” that likely would take years changed in Yadkin, Iredell, Alexander, through the legislative process to have to push through the General Assembly. survey found. this done. Any consideration we could and Catawba counties. “The numbers are much larger Henri McClees of Oriental, rep- Although hunters harvest some get we would appreciate,” Foushee resenting the North Carolina Sport- than they were five years ago” in terms said. 2,500 bears each year, Cobb said “good of annual license sales, said commis- ing Dog Association, did not support habitat, a lot of food, and very little sion spokesman Harvey R. White in a An ‘attack on tradition’ expansion of dog hunting to Sundays. mortality” has helped the bear popula- telephone interview. Her organization opposed Kinnaird’s tion to increase. The wildlife commis- The Sept. 7 hearing was the sec- But Julius Andrews of Guilford Senate bill outlawing dog hunts in Or- sion hopes expanding hunting oppor- ond in a series of 10 public comment County viewed the matter as an attack ange County. tunities and seasons in these counties sessions being held around the state. on dog hunters’ traditions. “The onli- “We are opposed to hunting on could limit further expansion of bears The full commission is expected to re- est thing I’m scared of, and we’re see- Sunday, [with] dogs or otherwise,” into the Piedmont, where more people view testimony from the hearings at its ing it, is people are trying to do away McClees said. “If you have a pack of live. October meeting and vote on the pro- with our dogs,” Andrews said. dogs that go through the church park- “We’ve been bothered with them posals in November. Of the dozens of dogs Andrews ing lot on Sunday, you have a lot of en- here in Guilford County, Alamance Among the 55 proposals are sev- has owned, “I haven’t seen one yet that emies. You don’t need more enemies. County,” Andrews said in supporting eral rule changes increasing the allow- can read this trespass sign,” he said to You need more friends.” the rule changes. “Those bears are just able harvest of deer, bear, and feral a ripple of laughter. He encouraged The wildlife commission also trying to save their butt[s]” by roaming swine in some areas of the state. In dog hunters to talk to neighbors, “get a is being asked to add feral swine to to where food supplies exist. Ramon those areas, growing populations of rapport with them. If you’ll talk to me, its hunting rules. There would be no N. Bell of Guilford County, president these animals are creating problems I’ll do anything I can to accommodate closed season and no bag limit to allow of the North Carolina Bowhunters As- with humans, other wildlife, and habi- you.” for maximum harvest statewide. Fe- sociation, also endorsed the proposals tat carrying capacity. Hauser attempted to get a com- ral swine are a non-native species that and advocated a special bear archery During comment on the Sunday mitment from the wildlife commission “create all sorts of problems for other season. dog hunt expansion, Bonnie Hauser, “to petition the legislature to move the wildlife,” said David T. Cobb, chief of There were 1,048,137 annual li- representing the rural grass-roots orga- line” where dog hunting is unlawful to the Division of Wildlife Management. censes sold for the fiscal year ending nization Orange County Voice, called include all of Orange County or to give “They root up all the vegetation” and, June 30, White said. Those include dog deer hunting in northern Orange counties more authority in setting the more ominously, carry a number of hunting only, inland fishing only, salt- County, where it is allowed, “a danger- rules. diseases that could infect the state’s water fishing only, and various com- ous situation.” But Gordon Myers, the commis- livestock. binations of those three. There were “Our parcels are too small, hunt- sion’s executive director, gave a terse Harold Dorsett of Efland, a mem- an additional 469,999 active lifetime ers are illegally shooting from the response. “The commission has made ber of the North Carolina Trappers As- license holders as of June 30. CJ OCTOBER 2011 | CAROLINA JOURNAL PAGE 7 Education Charter School Wins Battle COMMENTARY Over Funding In Appeals Court Politics vs. Facts In Jobs Debate By Sara Burrows that “if it’s in the current expense fund, Associate Editor charters are entitled to it, even if they or months, Republicans and the survey at the school district RALEIGH don’t have the programs,” Stoops said. Democrats have engaged level easily could have interpreted he North Carolina Court of Ap- But traditional schools still have in a public debate about the questions differently in differ- peals has reaffirmed that local a legal avenue for withholding the Fimpact of the new state budget on ent school districts. Indeed, major school systems must give charter funds. North Carolina’s public schools. In inconsistencies were inevitable be- schoolsT a portion of their general op- As a response to the Sugar Creek late August, the N.C. Department cause the survey included no defini- erating budgets, even if the budgets decision, the Department of Public of Public Instruction released its tions of terms and few instructions. include funds that are designated for Instruction created something called first-ever public school employment Even if respondents had a uni- special programs that charter schools Fund 8, “a place to keep special funds report. The controversial report form understanding of the survey don’t offer. — special projects, earmarks, private appeared to validate the arguments questions, there is no objective way A three-judge panel decided donations — out of the current expense of those on the Left. Upon closer to audit surveys of public-sector unanimously in September that the fund,” Stoops said. inspection, however, it employment. Federal Rutherford County public school In its opinion on the Thomas becomes clear that DPI agencies compare results system owes Jefferson case, the produced a sloppy, po- of their surveys of private Thomas Jefferson appellate court re- litically motivated report employers with unem- Classical Acad- stated the school designed to manufacture ployment insurance re- emy more than districts’ right to do headlines and mislead cords. No comparable data $730,000. Ap- this: the public, rather than sources exist for public- pellate judges “Under our provide insight into the sector employment. agreed the school prior holdings in system had short- complex issue of public- One possible way Sugar Creek I and II, sector employment. to gauge the reliability of ed the charter the county schools In their report, the data is to compare it to school funding can place restricted TERRY state education officials other statistical resources for the 2007, 2008, funds in accounts STOOPS proclaimed that public published by DPI. As and 2009 budget other than the lo- schools have “cut more one would expect, large, years. cal current expense than 8 percent of staff multiple discrepancies The court fund.” since 2008-2009.” Although Repub- exist between the survey data and issued a similar Darrell Al- licans have controlled the General other DPI publications. Predictably, ruling in 2008, lison, president of Assembly for less than one of the the August school employment finding that Parents for Edu- Charlotte-Mecklenburg Schools sys- cational Freedom in North Carolina, four years in question, the main- report showed much higher job loss tematically underfunded Sugar Creek finds the court’s recent ruling reassur- stream media primarily blamed figures than any publication DPI Charter School and four other public ing, but sees a need for further legisla- Republican legislators for these released to the public last year. charter schools in the county. tive action. “draconian” cuts to public schools. One final problem is that data Charter advocates see the ruling The ruling “reinforces the mes- I suspect the idea that Democrats for the current 2011-12 school year as a victory, but hope the General As- sage that charter schools are public would respond to the state’s fiscal are incomplete. At the time of the sembly will clarify and strengthen the schools and they should be funded crisis by cutting education spend- report’s release, school districts law dealing with charter school fund- equally,” Allison said. ing — which they did between 2008 were still hiring teachers, admin- ing. But now that the state has elimi- and 2011 — did not compute for istrators, and staff. In other words, At issue in both cases was wheth- nated the cap on charter schools, the North Carolina’s media establish- we currently cannot determine the er traditional public schools must share legislature needs to come up with a ment. Thus, many left it out of their effect of the new state budget on funds designated for special programs more fair and balanced funding sys- stories. public school employment, if any, — such as the More at Four prekinder- tem, he said. From a research standpoint, because it will take the state months garten program — with charter schools “Our funding system has been the DPI report answers few ques- to conduct its annual (and more that don’t offer them. The court ruled in place since 1996. It allows signifi- tions about the actual state budget reliable) public school personnel that districts must share. cant discretion at the local level when impact on public school employ- count. “Funds restricted as to their use, it comes to dollars set aside for charter ment. For example, the report did Our state education leaders but placed into a school board’s ‘local schools,” Allison said. “Now that we’re not categorize jobs by the three had an opportunity to conduct current expense fund’ must be consid- going to have more charter schools, we main funding sources for public a careful assessment of the rela- ered in the computation of monies due need to re-evaluate it. It may need to be schools: state, local, and federal. tionship between state, local, and to a charter school pursuant to N.C. tweaked, modified.” We do not know how many public federal funding changes and public General Statute 115C-238.29H(b),” the “If we want to make sure more education jobs were eliminated due school employment. They blew it. opinion states. charter schools are available in eco- to the loss of millions in federal Instead, they chose to use taxpayer- Since 1996, “district schools were nomically distressed urban and rural stimulus funds. Similarly, the report funded resources to try to embar- supposed to give charter schools a por- areas, they’re going to need every dol- did not reveal how many school rass Republican members of the tion of all the money in their current lar they can possibly secure in order to districts lost positions because of General Assembly. Yet, in their at- expense funds — their general oper- be a viable, quality charter school.” cuts to their county’s budget. State tempt to humiliate Republican leg- ating fund, their main bank account,” “This ruling restores fairness and education leaders suggested that islators with a slipshod jobs report, explained Terry Stoops, director of equity to public school finance by end- the legislature was at fault, but they reminded North Carolinians education studies for the John Locke ing the accepted practice of withhold- changes to the state budget were that party politics, not educating Foundation. ing or concealing funds from charter one part of a much bigger story. children, is their chief concern. CJ “But through the years they have schools,” said Stoops. Moreover, there were several taken it upon themselves to keep funds In August, a separate three- methodological problems inherent used for programs charters don’t judge panel of the appeals court re- in the kind of self-reported data Dr. Terry Stoops is director of have.” jected a lawsuit filed by the Sugar generated by DPI’s online survey. education studies at the John Locke In both the Thomas Jefferson Creek Charter School seeking access Those responsible for completing Foundation. Classical Academy case and the Sugar to county education funds for capital Creek case, the appellate court ruled construction. CJ PAGE 8 OCTOBER 2011 | CAROLINA JOURNAL Education State’s First Charter Continues Helping At-Risk Students school, and I’m looking forward to go- ing to college to become a nurse some- Durham’s Healthy day.” Besides providing after-school Start Academy programs and tutoring services, the school also provides therapy counsel- ing and other support for the students Founded in 1997 and their families. By Karen Welsh Eddie Goodall, president of the Contributor North Carolina Alliance for Public DURHAM Charter Schools, said the passage of he first public school to receive Senate Bill 8, lifting the statewide cap a charter in North Carolina con- on charter schools, has made it an ex- tinues on the cutting edge of cur- citing time to be a part of the school- Triculum and character building for un- choice movement. derprivileged students. Established in 1997, the Healthy Embracing the new law Start Academy, a K-8 public charter He said the North Carolina school in Durham, pioneered a shift in School Boards Association appeared the educational process for underprivi- to be embracing the new law. Goodall leged and troubled youth in the state. said his association advised the SBA “The children are in a good en- to fast-track both charter schools that vironment,” said kindergarten teacher had applied unsuccessfully in the past Regina Boney. “They are allowed to and private schools that want to con- think outside the box, and their cir- Healthy Start Academy was created to help at-risk students and those who were vert into charters. That process would cumstances.” experiencing academic failure in traditional schools. (CJ photo by Karen Welsh) clear the way for a plethora of new Currently, 96 percent of the stu- charter schools to open in August 2012 dent body lives at or below the pov- said. “All of our students just need a the school. No matter what level her throughout the state. erty level, qualifying students for the chance, and we do everything we can children occupy, James said she has felt The deadline for potential charter federal free- and reduced-price lunch to help them achieve and succeed.” embraced by the faculty and staff. schools to apply if they want to open Program. Principal and superintendent “It’s an extended family at times,” next school year is Nov. 11, Goodall School founder and board mem- James T. McCormick said the teachers she said. “We have a relationship with said. The application form can be ob- ber Liz Morey said the school wanted and staff work continually to provide them. They pay more attention to my tained from the Department of Public to develop an atmosphere where the a rigorous and challenging curriculum children, catch learning problems Instruction’s website (http://bit.ly/ minds of young scholars could thrive. to a very mobile and challenging stu- quicker, and boost it up with education nDRD2P). “The school was created for at- dent body. so the children understand what they “The SBA has embraced the in- risk students and those who were ex- “We don’t pick and choose our are doing.” tent of S.B. 8, and the halls of educa- periencing academic failure,” she said. students here,” he said. “We provide Graduate Brittany Atkins, who tion have opened wide,” he said. “We “This alternative makes a lot of differ- equitable access, and they come from attended all nine years at Healthy Start are proceeding in good faith to con- ence to parents who can’t afford pri- the surrounding community and ap- Academy, said she felt secure at the tinue to meet the education needs of vate school tuition.” ply just like at any other public school. school. the children in the state. That’s where We do, however, have a huge popula- “I used to wake up every day we are. It’s a much brighter picture Many obstacles tion turnover here. Only 15 to 20 per- knowing what I was going to do at than we thought it would be before. The school has faced a lot of ob- cent of our students were here during school, and that made me feel hap- I applaud [State Board of Education stacles since its inception. Since the the 2008-09 school year. py and stable,” she said. “It gave me Chairman Bill] Harrison and the SBA North Carolina General Assembly “The students come from a very the education I needed to go to high for doing that.” CJ would not give extra funds for con- transient lifestyle, making their educa- struction, Healthy Start had to find an tion hard and a continuous struggle,” existing structure to host the school. McCormick said. “Oftentimes, their The founders settled on the site of a parents are scraping out a living.” century-old former Baptist church. A delicate balance “It’s the perfect reuse of this building,” Morey said. “It’s old, and it McCormick said there is a deli- needs a lot of work, but it is a good and cate balance at the school between solid building.” academics and discipline, and he takes School officials also had to con- the initiative to call every student who front rising standards on each stu- gets into trouble. Students with disci- dent’s end-of-grade testing and annual plinary problems are not allowed to yearly progress report required for the return to the school until the issue is federal No Child Left Behind law. Al- settled both at home and school. though the students haven’t met the “We have a lot of contact with the standards in the past couple of years, home,” he said. “We are just trying to they continue to do better at their stud- build relationships, and we want them ies in the confines of a smaller school to know we are more than a talking than they would in a traditional public head, and we invite them to become a school. part of the circle of courage. Morey said the numbers can be “We always want them to know deceiving, since the school accepts we are a safe and secure place in which some students who are several grade students can learn,” he added. “We levels behind their same-age peers. try to give them purpose and work at Everyone needs a chance higher levels of responsibility.” Parent Pearletta James has en- “It doesn’t matter who we get, rolled four of her six children, some they still need to be educated,” Morey gifted and some with special needs, at OCTOBER 2011 | CAROLINA JOURNAL PAGE 9 Education Paradise Getaway For Teachers Retrenches After Budget Cuts

By David N. Bass Associate Editor RALEIGH retreat for public school teach- ers is retooling its focus after the Republican-controlled Gen- eralA Assembly sliced the organization’s budget in half. With locations in the mountains and on the coast, the North Carolina Center for the Advancement of Teach- ing has served for more than 25 years as a coveted destination for educators. But with a 50-percent budget cut au- thorized by the General Assembly this year, big changes are in the cards. In the near term, NCCAT’s slashed budget will mean fewer five- day seminars, more on-site training for teachers in school districts, and ramped-up private fundraising. It’s also meant dozens of layoffs over the past two years. All expenses paid Before the cuts, NCCAT had drawn $6.1 million in taxpayer funds The dining room, left, and exercise room at the North Carolina Center for the Advancement of Teaching’s western North Carolina from the legislature and served as facility in Cullowhee. (CJ file photos) many as 5,000 teachers per year. Edu- ty, an extensive art collection, and even came as a surprise. “We anticipated NCCAT promoted five employees cators don’t pay their own way; NC- a Hershey’s Kiss on each teacher’s pil- different scenarios, but did we go that to fill vacant positions and gave- cor CAT picks up the tab for them to at- low in the morning. deep? No. I don’t think we saw that responding pay raises. Another two tend, including the expense of finding coming,” said Elizabeth Gillespie, employees also had salary bumps to substitutes to handle their classrooms Budget woes communications coordinator for the reflect additional job duties. back home. The teacher retreat went through center. “Those positions that we re- Critics say that the money should several iterations of cuts during bud- “It was too deep, [but] you deal ally try to preserve are those that are be spent elsewhere during lean fiscal get negotiations earlier this year. In her with what you’re given,” said Elaine responsible for developing curricula times — the legislature faced a $2.5 bil- proposed spending plan, Democratic Franklin, who took over as NCCAT’s and delivering programs to teachers,” lion budget gap this fiscal year — and Gov. Bev Perdue suggested a 10 percent executive director in April. Franklin said. that NCCAT is a luxury rather than a reduction, but initial House spending The cutbacks already have Franklin began her tenure as NC- necessity. targets would have zeroed out fund- prompted NCCAT staff to cancel 17 CAT’s leader with an annual starting As Carolina Journal reported in ing for the center. A final compromise of 27 seminars scheduled for the fall salary of $125,000. Before joining the 2009, the teacher retreat has many ac- between the House and Senate cut the 2011 semester. The remaining seminars teacher-training center, she served as commodations of a mountain resort, appropriation by half — about $3 mil- include “Strategies for Motivating Af- director for the Center for Mathemat- including a 48-room lodge, indoor am- lion each year. rican American Students,” “Move It! ics and Science Education at Western phitheater, a health and wellness facili- NCCAT’s top staff say the cuts The Physically Active Academic Class- Carolina University, where she earned room,” and “Teaching the Holocaust: $78,561 per year. Resources and Reflections.” Franklin replaced Mary McDuff- Instead of relying on the seminar ie, who served as NCCAT’s executive model, which Gillespie described as director for eight years. As of Decem- Visit the new-look “very expensive,” NCCAT staff will ber 2009, McDuffie was the highest- begin providing on-site services to paid state employee in the Department Carolina Journal Online school districts across the state. Exactly of Public Instruction at an annual sal- what that will look like is still up for ary of $175,137. discussion. “We’re trying to adapt on the fly New emphasis and be as flexible as possible to best Aside from on-site training, serve the schools in North Carolina,” Franklin said that NCCAT would fo- Gillespie said. cus on charter schools after the General Staff cutbacks Assembly lifted the 100-school cap this year. NCCAT has laid off around 35 “We want to really emphasize employees since mid-2009. The most that we are here for charter schools and recent reductions chiefly came from want to help them get ramped up, par- dining workers (NCCAT’s mountain ticularly for those new ones,” she said. location has a multilevel dining room Teacher retention initiatives also that looks out on the Appalachian will get renewed focus. “We don’t Mountains) and program associates, want to retain just any teacher,” Gil- who assisted with seminar develop- lespie said. “We want to make sure ment. that the teachers that are retained are Gillespie said all departments doing great work with the students With links to the new CJTV and CJ Radio Web sites have been cut. “No department has — that they are excited and inspired http://carolinajournal.com been exempt,” she said. and that the kids are really becoming Partly as a result of the cutbacks, lifelong learners.” CJ PAGE 10 OCTOBER 2011 | CAROLINA JOURNAL Local Government Town and County Rescue Mission Spurns Government Funds Urban loops speed up

Gov. Bev. Perdue has an- By Donna Martinez from $1 to a monster-size $100,000 gift, which was doubled nounced plans to speed up the Contributor to $200,000 by the donor’s employer. With another $300,000, construction of portions of six ur- DURHAM the center will be fully funded. ban loop projects across the state. ome social service nonprofit groups fear they can’t sur- At least eight other North Carolina rescue missions “Investing in our state’s in- vive without government funding. Not so the found- follow the no-government-money model, according to mis- frastructure is about jobs,” Perdue ers of the Durham Rescue Mission. sion staff. Others around the country do take public funds. said. “Not only will it create jobs, SThey don’t regret for a moment their decision nearly Mills is reluctant to advise which approach is best. “That’s a but it also will build an efficient four decades ago to rely on private donations to help the decision each organization has to make,” she said. transportation network that will homeless and addicted in one of the state’s largest cities be- Mills notes that a Los Angeles-area rescue mission attract new businesses and bring come productive members of society again. What govern- recently discovered the bureaucratic pitfalls that can come more jobs to our state in the fu- ment funds, government controls, explains chief Financial with the decision to accept government money: late pay- ture.” officer Gail Mills of the decision to avoid a strings-attachfd ments and grants that don’t cover all costs. The Rev. Andy The move is possible through the state issuing $400 million in relationship with public money. Bales told www.fulldisclosure.net that the Union Rescue so-called GARVEE bonds against In 1974, Mills co-founded the organization with her Mission set up a separate, secular entity to receive govern- future federal highway dollars. husband, the Rev. ment funding to pay The governor’s announcement Ernie Mills. She says for much-needed presumes that federal highway many who seek the winter shelters. money will continue in the future rescue mission’s Bales said a dispute at about the same level as today. help are receiving ensued when the The highways that could government assis- mission had trouble be built sooner than envisioned tance. getting reimbursed include portions of outer loops “How does by the Los Angeles around Asheville, Fayetteville, that look if we [the Homeless Services Greenville, Greensboro, Wilming- rescue mission] are Agency for services ton, and Winston-Salem. In most taking government the mission had cases, construction would begin assistance, but we’re provided. “We are between 2017 and 2020. telling them you finding that it’s bet- “To put [widening] first need to get skills and ter for us to rely on without fixing either end is ab- abilities to take care private funding,” surd,” said local attorney and De- of your own fam- Bales said to our- partment of Transportation critic ily?” Mills asked. weekly.com. Betty Lawrence to the Asheville “So it was a compet- Union Rescue Citizen-Times, noting the plan does ing message if we’re Mission’s experi- not address congested intersec- saying one thing but ence isn’t uncom- tions at each end of the Asheville we’re doing anoth- mon for nonprof- connector. er.” its. A 2010 survey The decision of its members by Food trucks expanding forced the couple the N.C. Center for to pound the pave- Nonprofits found The list of N.C. cities allow- ment looking for that 60 percent of ing food trucks increased by two support. There were state-funded non- in September, with Asheville and lean times. Mills profits reported be- Raleigh now permitting the din- ing option. In both cases, though, estimates the mis- ing paid late in 2010. the cities placed significant restric- sion’s income be- More than half of tions on food truck operations. tween 1974 and 1987 state-funded non- In Raleigh, food trucks will at roughly $1 mil- profits also reported be allowed to use only commer- lion. Between 1988 that government cially zoned private parking lots. and 2010, donations funding doesn’t They cannot operate within 100 soared to just over When Ernie Mills (above) and his wife Gail co-founded the Durham Rescue Mis- cover the full cost of feet of a restaurant’s main entrance $50 million. Chief sion in 1974, they felt they could not in good conscience urge their clients to providing services or outdoor dining area or within operating officer rely on themselves if their organization accepted government money, so they and that the appli- decided not to, and haven’t ever since. (CJ photo by Jon Ham) 50 feet of a hot dog cart. No more Rob Tart believes cation process and than three food trucks can operate success came be- reporting require- on a single parking lot regardless cause the rescue mission made good on its promises, which ments are overly complex. of its size. Food trucks can’t oper- generated credibility with donors and the community. In a limited sense, all nonprofits are government-fund- ate after 3 a.m. Last year, 65 percent of mission donations came from ed because they receive substantial tax advantages over oth- In Asheville’s case, only 10 individuals, churches, and businesses. Another 30 percent er groups, explains Fergus Hodgson, director of fiscal policy food trucks will be allowed. They came from mission-operated thrift stores, and 3 percent was studies for the John Locke Foundation. “However, direct al- cannot operate on public property, generated by Temps to the Rescue, a service matching cli- location of tax dollars to a nonprofit goes much further and use noisy generators, or operate ents with local businesses that need workers. Miscellaneous changes the nature of a charitable enterprise and its rela- after 2 a.m. The move allowing the sources generated the remaining 2 percent. tionships,” Hodgson said. trucks is a pilot project that could To keep providing services — the mission served an Ultimately, Hodgson warns nonprofits to consider be ended in the future. average of 200 men, women, and children each day last year carefully the implications of their funding mechanism. “Re- “It’s going to add to afford- — private fundraising never stops. This month the Millses liance on voluntary donations keeps charities accountable ability and continue to broaden are closing in on a $4.5 million goal to build The Center for to donors, but reliance on politicized tax dollars keeps chari- the choices that people have here,” Councilman Gordon Smith said Hope, a 20,000-square-foot addition to the downtown Dur- ties accountable to government officials.” to the Asheville Citizen-Times of al- ham location. The facility will feature a commercial kitch- For the Durham Rescue Mission, the question of who’s lowing food trucks. CJ en, dining room for up to 300 people, three dormitories, 88 accountable to whom is easy. “We just felt like it was important beds, and offices for counselors. Donations have ranged for this to be a ministry of people helping people,” Mills said. CJ OCTOBER 2011 | CAROLINA JOURNAL PAGE 11 Local Government

Court: State Can Be Sued For COMMENTARY Actions of Negligent Employees Rail: Build It

By Michael Lowrey Claims Act seeking to be compensated Associate Editor for the extra $28,300 they had to spend And They May Not Come RALEIGH for their septic system. The Industrial common misconception just because you build it does not orth Carolina law allows citi- Commision ruled in the Crumps’ fa- about public transit is that mean they have to come. zens to file claims against the vor. DENR contested the Crumps’ state for losses resulting when claim and brought the matter before it serves only as a means of And indeed, the proverbial stateN employees perform their duties the Court of Appeals. Atransportation. That’s not the case. “they” haven’t come. The line’s in a negligent manner. Can they recov- On appeal, DENR contended that Transit is sold as a solution to many Scaleybark Road station, the closest er losses if the losses resulted because the state should not be held liable for different issues: providing mobility to Uptown Charlotte with a park- the state employee’s reason for not Beane’s intentional actions. In support to the poor, serving as a substitute and-ride lot, was supposed to serve performing his duties was because he of its claim, the agency cited the 1968 for driving to work, and enhancing as a catalyst for a signature mixed- was being bribed? N.C. Supreme Court decision in Givens urban redevelopment. Indeed, the use development. The city has put In a decision handed down on v. Sellars, in which the high court held main justification of many pricey up $11.2 million to make it happen. Sept. 20, the state’s second-highest that “[i]njuries intentionally inflicted rail transit systems, such as that in Despite the money, and a rapid ex- court concluded that citizens can re- by employees of a State agency are not Charlotte, has less to do with mov- pansion of Charlotte-area apartment cover damages — even if the state em- compensable under the North Caro- ing people than as a tool for eco- sales, four years after the ployee did not intend specific harm lina Tort Claims Act.” nomic development. light-rail line opened the to those citizens — if the employee’s The appeals court found DENR’s Unlike buses, rail project remains stalled. actions could be considered willfully argument to be misplaced and upheld transit operates along a These struggles negligent. the award. fixed, permanent path. came even before Bank of In July 2001, David and Sharon “NCDENR overlooks the fact that Those wishing to ride rail America, which is head- Crump bought a the focus is not on must come to the sys- quartered in the Queen lot in a subdivi- whether Beane’s tem because the system sion in Caldwell The North Carolina Courts actions were in- City, announced in Sep- cannot come to them. To tember that it was laying County on the tentional, but proponents of rail, this is condition that the rather on whether off 30,000 people compa- a feature, not a bug. Rail property could he intended to nywide. transit is intended to serve MICHAEL support a septic injure or dam- In some sense, the as an attraction, a draw LOWREY system. age the Crumps,” city’s problems in using M i c h a e l wrote Judge Mar- for those who find a cer- transit to redevelop South tain sort of urban lifestyle Beane, an envi- tha Geer for the Boulevard aren’t surpris- appealing. ronmental health court. ing. A 2003 report by a consulting The idea usually is to retrofit specialist with the She noted firm warned that light rail projects rail transit systems into existing Caldwell County that in Givens, had not produced increased popu- urban areas. Charlotte’s first rail Health Department, which was acting the Supreme Court had stated that a lation density in areas that weren’t transit line, a light rail line running of behalf of the N.C. Department of “breach of duty may be wanton and densely populated already. Environment and Natural Resources, willful while the act is yet negligent; 9.6 miles along South Boulevard For Charlotte’s light rail line inspected the property and issued per- the idea of negligence is eliminated from Uptown Charlotte to just to have any chance of increasing mits allowing the construction of a tra- only when the injury or damage is inten- short of Interstate 485 near Pinev- ditional wastewater septic system. tional.” (Emphasis in Court of Appeals ille, certainly was intended to spur density, the city would have to ac- The Crumps bought the proper- decision.) redevelopment of a stretch of old quire large tracts of land and enter ty for $80,000 and began to make im- And this is what the Industrial strip malls. Then-Charlotte Mayor into public-private partnerships to provements on the land. They hadn’t Commission found in its ruling. DENR Pat McCrory famously described redevelop the property. Projects like begun adding the septic system by argued that Beane’s bribery convic- South Boulevard as a “corridor of the one at Scaleybark Road. late 2004, when the Caldwell County tion, his inaccurate soil measurements, crap” which the light rail line was A lack of success hasn’t Health Department notified them that and expert testimony established that intended to fix. stopped Charlotte-area officials the permits may have been issued im- Beane’s error in surveying the prop- Debra Campbell, Charlotte’s from pushing for more rail lines. properly. erty amounted to an intentional act. planning director, explains it this Now, the Charlotte Area Transit DENR had discovered that Beane The commission agreed that Beane’s way in the June 2007 issue of Gov- System wants a $1.1 billion exten- had issued permits for a septic system breach of duty to perform the soil test erning magazine: sion of its light rail line to UNC- on a different property where the land was intentional, but “the evidence does “The real impetus for transit Charlotte in northeast Mecklenburg could not support a septic system. This not compel a conclusion that Beane in- was how it could help us grow in County. A $450 million commuter led DENR to review other permits is- tended to cause injury to plaintiffs.” rail line from Uptown Charlotte to sued by Beane. In 23 of 25 cases, DENR The appeals court agreed with a way that was smart. This really the northern Mecklenburg County found soil conditions were “entirely in- the Industrial Commission’s conclu- isn’t even about building a transit towns of Huntersville, Cornelius, adequate” to support a septic system. sion. “The evidence cited by NCDENR system. It’s about place making. It’s Beane’s inspection of the Crumps’ is sufficient to prove an intentional fail- about building a community.” and Davidson may be built using property also proved to have been ure to carry out the duty imposed on The sort of place Charlotte of- tax increment financing, the ulti- faulty. The couple was forced to buy Beane regarding site inspections and ficials were hoping to create would mate build-it-and-hope-they-come property across the street for $20,000 to issuing permits,” wrote Geer. cater to people, particularly bank- scheme. accommodate the septic system and to “NCDENR, however, cites no ers, coming from such urban areas As long as transit has many spend $8,300 on a pumping system. evidence and the Commission found as San Francisco, New York, and roles and justifications, government Beane eventually pleaded guilty none that required the Commission to Boston. They were used to living in officials can continue hiding their to bribery of a public official in connec- find that Beane intended to injure the midrise condo buildings and riding questionable economic develop- tion with some of the permits he issued. Crumps. The Commission’s findings the train to work. ment projects from the public scru- No evidence was found to suggest that — and the evidence supporting those Government officials can tiny they deserve. CJ Beane conspired with the Crumps or findings — establish willful negligence dream up all the grand economic the developer of the property to issue rather than intentional injury.” development visions they want. the improper permit in their case. The case is Crump v. N.C. Depart- That doesn’t mean their wishes will Michael Lowrey is an associate The Crumps then brought a ment of Environment and Natural Re- come to pass. Or put another way, editor of Carolina Journal. claim against DENR under the Tort sources (10-1138). CJ PAGE 12 OCTOBER 2011 | CAROLINA JOURNAL Local Government Last-Minute Change Could Keep Traffic Cameras in Raleigh

By Sara Burrows had decreased by 42 percent since the try. Some studies find them to make If city council members wanted Associate Editor 12 cameras working at the time had intersections safer, and some find them to make intersections safer, Hodgson RALEIGH been installed. Meanwhile, rear-end to cause more accidents than they pre- said, there are better ways of achiev- ight years after they were put up, crashes had increased by 7 percent. A vent. “But one thing is for sure,” said ing that goal, such as extending yel- Raleigh’s red light cameras were study of Greensboro red light cameras Fergus Hodgson, director of fiscal pol- low light times. He noted that research set to be taken down at the end also showed an increase in rear-end icy studies for the John Locke Founda- from the Texas Transportation Institute ofE September. collisions. tion. “They generate revenue for local suggests that increasing the length yel- But a week after the city council “It’s not news governments, and low lights are illuminated by only one fell one vote short of the five needed to any of us at the that appears to be second reduces collisions by 40 per- to renew its contract with ACS Xerox city level that the the genuine reason cent. for the SafeLight Program, council rear-end smaller why they promote “Yet a number of cities have been member Eugene Weeks said he would kinds of collisions them.” found guilty of deliberately shortening change his no vote to yes. would increase R a l e i g h the yellow light so as to cause more red Weeks said he changed his mind from this kind doesn’t receive any light runs and more tickets,” Hodgson after city planners agreed to consider of technology in revenue for the $50 said. reactivating a traffic light camera that place,” said City red light tickets it is- In addition to safety concerns, had been removed from the intersec- Manager Russell sues, but the Wake red light cameras have “devious im- tion of Rock Quarry and Proctor roads Allen in 2006. County Public pacts on our privacy and our right to in Weeks’ southeast Raleigh district. Allen said School System does. a trial, the presumption of innocence,” If Weeks follows through at the Oct. 4 the city installed It has collected Hodgson said. council meeting, after this issue goes to the cameras to cut more than $500,000 Councilman Bonner Gaylord ex- press, the traffic cameras will remain down on danger- since the cameras pressed similar concerns at the Sept. active. ous, high-speed were installed. 20 council meeting. “Tickets are issued Studies show that while right- side collisions. Hodgson said based on the license plate,” Gaylord angle collisions have decreased with However, a the vast majority said. “How do we ensure it was the the cameras in place, rear-end and fatal more recent study of red light camera owner that was driving? What’s the collisions have increased. The cameras, found that fatal collisions have in- tickets are issued for rolling right-hand process if the owner was not driving at 15 intersections throughout Raleigh, creased at the intersections with cam- turns. Drivers are more likely to get the car and was issued a ticket?” would have been removed after the eras. According to the Insurance In- struck by lightning than to get in an ac- City staff answered that the contract expired Sept. 30. stitute for Highway Safety, there were cident by making a rolling right-hand owner can contest the ticket and get it While some council members nine fatal accidents between 2004 and turn, he said. transferred into the driver’s name. claim the primary purpose of the cam- 2008 — after the cameras were in place “That’s why everyone does it,” “To me this is against what our eras was public safety, critics argue it’s — compared to three between 1992 he said. “If it were so dangerous, peo- country’s justice system was founded just another source of revenue. and 1996. ple wouldn’t do it. There seems to be on, which is innocence until proven A 2005 study by North Carolina The impact of red light cameras the assumption that people want to get guilty,” Gaylord said. “This seems to State University showed side crashes on safety is debated around the coun- in accidents. They don’t.” be guilty until proven innocent.” CJ Triad Transit Agency Seeks New Funds From Cash-Strapped Counties By Sam A. Hieb member counties, and fellow board problems is a recent audit by the U.S. ford’s contribution would be $394,000. Contributor members quickly shot down Smothers’ Department of Transportation’s Fed- Guilford county commission GREENSBORO proposal. eral Transit Administration that called Chairman Skip Alston attended the imply stated, the Piedmont Au- “If you want short-term relief into question PART’s administrative meeting and was allowed to vote in thority for Regional Transporta- from us, do not bring this forward,” practices. place of fellow commissioner and tion is running on fumes. said fellow board member Gloria The audit found that PART does PART board member Carolyn Cole- S “We’re running out of money, Whisenhunt, who serves on Forsyth not monitor grant funding adequately, man, who is ill. and we require an infusion of new dol- County’s board of commissioners. “I does not reconcile farebox proceeds, During the past two years, Alston lars,” said High Point Mayor Becky can tell you right now we will not pass does not keep a sufficient inventory has led a movement to slash Guilford’s Smothers, who serves on the PART a registration tax.” of fare passes, allowed another FTA budget in the wake of the economic board as finance committee chair. “Then we won’t have a regional grantee to use FTA funds to purchase a downturn. PART’s board met in late Septem- service,” Smothers replied. pickup truck, and holds titles to buses But he seemed amenable to ber to discuss the most recent financial Currently, PART’s primary fund- in use by the City of High Point and granting PART’s funding request and crisis. The outlook was grim. ing source is a 5 percent tax on rental Elon University while having no direct said he would bring it before his board Even if PART gets a short-term cars in Guilford, Forsyth, Davie, Da- control over them. in October. infusion of cash from member counties vidson, Stokes, and Surry counties. Smothers said the finance com- “It’s the county’s responsibility to keep operating through the 2011-12 Randolph County provides funding mittee had met recently with the au- fiscal year, the following fiscal year through a $1 vehicle registration tax. ditors, who “assured us there was no to step up,” Alston said. “This is an looms, with no source of funding to PART also receives funds from the evidence of misappropriation or illegal incentive for people to keep their jobs. keep the transit agency afloat. North Carolina Department of Trans- activity.” Still, she added the auditors We might be able to find it some way. On top of that, a scathing federal portation and the federal government. “gently said the board needs to be It might have to come from the fund audit of PART’s operations painted a While the economic downturn more involved.” balance.” portrait that might make some wonder may have boosted PART’s ridership, it And the board made a pledge to In the meantime, PART faces if additional funding would be throw- simultaneously has reduced revenues be more involved when convincing the end of one fiscal year and the be- ing good money after bad. from the car rental tax. As a result, counties to provide more funding. ginning of another with no sign of an Smothers made a motion asking PART is running a $1.1 million deficit. PART is basing its funding re- economic recovery that would allow member counties to approve a $2 ve- A cash infusion from counties quest on the number of cars registered member counties to loosen their purse hicle registration tax. This tax was less would be one short-term fix. And there in each county. With two good-size cit- strings. than the $3 tax executive director Brent is an even shorter-term fix: Cut route ies within its borders — Greensboro Even so, Smothers remains hope- McKinney suggested earlier this year. schedules. Indeed, the board voted to and High Point — Guilford County by ful county commissioners will come McKinney’s proposal was met with do just that effective Oct. 31. far has the most registered vehicles in around. “Most of them are pretty smart a stony silence from cash-strapped Complicating PART’s funding the Triad area. At $1 per vehicle, Guil- people,” Smothers said. CJ OCTOBER 2011 | CAROLINA JOURNAL PAGE 13 Local Government Chapel Hill, Hillsborough May Soon Join Food Truck Parade

By Dan E. Way In Hillsborough, where food Contributor trucks have worked the town’s sig- CARRBORO nature Hog Day festival and monthly indsay Wells stood in a dimly lit downtown Last Fridays street celebra- parking lot next to a lumber com- tions, the Town Board and its Tourism pany waiting expectantly for the Board are talking about adding the Lyoung woman behind the window to roaming luncheonettes. pass her the steaming plate of Mexican “We’ve got kind of the basic food she had ordered. framework set up” and are moving to- “Right now it’s open, and it’s ward a public hearing to get resident near where I live,” Wells said of the and business feedback, said Planning reasons she was patronizing the Latin Director Margaret Hauth. “Folks saw Grill food truck parked just a block the impact they were having in Carr- off of Carrboro’s main drag. A phys- boro and Durham and said, ‘Hey, may- ics teacher, she was arriving home be we want to get involved with that,’” Wednesday evening after a long day she said. at Millbrook High School in Raleigh An ordinance could be enacted that featured an after-hours “back-to- as early as October, Hauth said, but school” program. she would prefer to wait until Jan. 1 to The authentic Mexican food, con- monitor what happens in Raleigh. Ra- venience of location, and rapid service leigh City Council voted in September of the mobile restaurant, she said, were Silvia Franco wields a fast flipper at the Latin Grill food truck in Carrboro. Owner to approve food trucks during specific what attracted her — and others — to Eladio Calletano, at right, said he has been operating successfully in the same spot for seven years. (CJ photo by Dan E. Way) hours on designated private property. the order line that alternately surged “I wouldn’t mind learning a and receded throughout the evening ment] staff to come up with some pos- vide ready setup for the vendors. few lessons from them in the first few hours. sible regulations,” Easthom said. “There’s a minimum of 75 restau- months to get some pointers from Carrboro, a community that “There are some issues about rants open at any one time in down- them,” Hauth said. prides itself on walkability, support- whether or not they pay [sales] tax, town Chapel Hill, and there’s not any The town’s Tourism Board col- ing local entrepreneurs, diversity, and or whether that tax comes back to spare parking,” Harrington said of the lects a 1 percent municipal food and a coolness factor, has a thriving food the town,” Easthom added. “I think most frequent objection to food trucks. beverage tax, and Hauth said the town truck industry with vigorous walk-up they’re going to work that out to make “Aside from the [UNC] campus, two is studying how to collect that from the business. sure the town receives that tax.” other places you could imagine food mobile vendors. trucks is downtown and shopping cen- Neighboring towns Chapel Hill Another issue is whether Chapel Food trucks have been part of ters on private property.” and Hillsborough want to pop some of Hill and Hillsborough will issue regu- the landscape in Carrboro for several that food flair onto their streets. They lations welcoming food trucks, as in Food trucks have operated at University Mall and some commercial years, Interim Town Manager Matt are in the midst of developing ordi- Carrboro and Durham, or, like Raleigh, Efird said. nances while watching developments will ban trucks from downtown and plazas in agreement with the property owners, and during town festivals, he Food trucks must get a one-time, in Durham and Raleigh. other areas with heavy pedestrian traf- said. $75 zoning permit, obtain an inspection “I think food trucks are great. I’d fic — and in the vicinity of brick-and- “We would go to Chapel Hill” if certification from the county health de- love to have them,” said Chapel Hill mortar restaurants. allowed, said Eladio Calletano, owner partment, and a $25 Carrboro business Councilwoman Laurin Easthom. “I “We got a real hard pushback of the Latin Grill food truck whose four privilege license. have a sense from the council . . . that from merchants downtown” to inject- employees dish up house specialty “There are a couple of locations they are interested in food trucks.” ing food trucks into the dining tableau, chicken tamales and chicken enchi- around town that are approved loca- A decision on whether to allow said Chapel Hill Councilman Ed Har- ladas from 6 p.m. to 11 p.m. Wednes- tions” for the vendors, Efird said. “We these popular meals on wheels could rington, acknowledging he frequents days, and 6 p.m. to midnight Thursday haven’t had many complaints com- happen soon. “We had a hearing and the convoy of food trucks in Durham, through Sunday in Carrboro. “We’d go pared to some of the other jurisdic- then we directed [Planning Depart- where ample empty parking lots pro- on a different day or in the morning.” tions around.” CJ Help us keep our presses rolling Publishing a newspaper is an ex- pensive proposition. Just ask the many daily newspapers that are having trouble making ends meet these days. It takes a large team of editors, re- porters, photographers and copy editors to bring you the aggressive investigative reporting you have become accustomed to seeing in Carolina Journal each month. Putting their work on newsprint and then delivering it to more than 100,000 readers each month puts a sizeable dent in the John Locke Foundation’s budget. That’s why we’re asking you to help defray those costs with a donation. Just send a check to: Carolina Journal Fund, John Locke Foundation, 200 W. Morgan St., Suite 200, Raleigh, NC 27601. We thank you for your support.

John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 14 OCTOBER 2011 | CAROLINA JOURNAL From Page 1 Obama Plan: Teacher Jobs Funded For One Year Only Continued from Page 1 tion the specific number who would be hired, and again failed to state how for an additional two years. A White long those jobs would be funded with House spokeswoman told Carolina federal tax dollars. Journal that the bill includes no un- The White House summary funded mandates. But unless North for Colorado states that his plan will Carolina picks up the funding for these award $478,600,000 to provide 7,000 positions after the first year, it’s unclear jobs. Simple division yields an amount how the teachers and first responders of $68,371 per job. supported by it would be paid. Background information pro- Moreover, the traditional school vided to CJ by the White House bases year began before Obama made his the distribution of funds to each state speech at N.C. State. Local school dis- primarily on population. The job esti- tricts have hired teachers, and classes mates rely on public-sector labor costs are under way. Even if the bill became obtained from each state. law quickly, it’s unclear how North CJ’s analysis places North Caro- Carolina government agencies could lina 31st among the states nationally in accept the federal money and achieve the cost per job, with the state receiv- the president’s job goals during the President Obama holds up a copy of his jobs proposal at a rally held in N.C. State’s ing $67,187 for each of its 13,400 jobs. current fiscal year. Reynolds Coliseum on Sept. ??. (CJ photo by Don Carrington) In neighboring states, Virginia would North Carolina Department of receive $68,731 for 10,800 jobs, South Public Instruction Chief Financial Of- tember 2012. erage cost per job of $74,757. Carolina $67,109 for 6,400 jobs, and ficer Philip Price told CJ that the aver- Obama’s American Jobs Act spe- Obama has crisscrossed the Tennessee $63,604 for 9,400 jobs. age cost of teacher pay and benefits in cifically includes $35 billion for state country selling his plan. “All across At the extreme ends of the rank- North Carolina was $56,000 per year. and local government employees: $30 the country, budget cuts are forc- ings, South Dakota would receive the He said his staff is just beginning to billion to hire or preserve the jobs of ing superintendents to make choices least money per job and New York the analyze the components of the bill that public school teachers, and $5 billion they don’t want to make,” he said at most. applied to public schools. for police officers, firefighters, and a speech at Lincoln High School in South Dakota would get Price also said approximately other first responders. In the White Denver on Sept. 27. “It’s unfair to our $77,600,000 for an estimated 1,600 jobs, 4,000 North Carolina teacher posi- House summary for each state, the cat- kids, it undermines their future, and it or $48,500 per job. New York, by con- tions are being supported currently by egories are combined. One-seventh, or has to stop. Tell Congress to pass the trast, would receive $1,769,800,000 for EduJobs, a program that was part of 14 percent, of the money covers first American Jobs Act, and there will be an estimated 18,000 jobs, or $98,322 per Obama’s previous stimulus package, responders. funding to save the jobs of thousands job. the American Recovery and Reinvest- A Carolina Journal analysis of the of Colorado teachers — and cops and California ranks second to New ment Act of 2009. Price said the money planned allotment and estimated jobs firefighters, too,” he said. York with $3,621,300,000 for an esti- for those jobs would run out in Sep- from each state yields a nationwide av- But in Colorado he failed to men- mated 37,300 jobs, $97,086 per job. CJ ESC Reports Show No Public-Sector Job Losses Yet Continued from Page 1 the state budget. Because of quirks in the federal Bureau of Labor Statistics, rate.” In a Sept. 16 interview with Ra- the seasonal adjustment methodology, which produces the employment es- leigh television station WTVD, Deputy At a Democratic fundraiser in April, ESC could report a gain of seasonally timates. The “seasonal adjustment” Chairman David Clegg said, “We are Perdue suggested that the state budget adjusted government jobs in Septem- factor used by BLS for public educa- using the same methodology that’s proposed by GOP leaders would lead ber. Such a report would not be an ac- tion jobs in the summer, for instance, is been used for decades. We are looking to massive layoffs — perhaps 30,000 in curate accounting of public employ- little more than a guess. It’s an estimate at the same snapshot of North Caroli- all sectors of government and 18,000 in ment, but it would place Perdue and based on observations from several re- na’s economy each and every month.” education alone. others who have been critical of the cent years of the number of jobs that ESC has been sharing the data Speaking to a group of economic General Assembly in a rhetorical bind. should exist if all schools remained from its monthly employment reports developers Sept. 19 in Charlotte, Per- Still, despite the lack of reliable open year-round and there were no with the governor a day before the re- due claimed that “much” of North numbers at present, Perdue spokes- summer break. port is released to the public. Carolina’s 10.4 percent unemployment man Mark Johnson maintains that the A more reliable way to look at DPI and UNC report rate was due to job losses in the pub- GOP is to blame for massive job losses public employment is to consider an lic sector, according to a WSOC-TV in the public sector. actual count of jobs, the so-called not A survey of the public school report. At a Greenville-Pitt County “The Republican legislature’s seasonally adjusted or unadjusted fig- systems by the Department of Public Chamber of Commerce lunch the next shortsighted and unnecessary cuts ure. Since the fiscal year began July Instruction, released in late August, day, Perdue said a recent jump in the resulted in the loss of thousands of 1, the ESC’s seasonally adjusted em- showed 6,300 positions had been elim- state’s unemployment rate occurred education positions in K-12 and thou- ployment estimates show a net gain of inated over the past four years — 3,900 because of public-sector job losses, the sands more in the university system,” 3,600 state and local government jobs. of them in previous years when Dem- Daily Reflector reported. Johnson told CJ. “Common sense alone By contrast, the unadjusted jobs figure ocrats were in charge of the General But the monthly employment tells you that these job losses push up for local education has plummeted — Assembly and the governor’s office. numbers released a few days earlier by unemployment; if unaddressed, these from 229,100 in May to 132,300 in July. Slightly more than 2,400 people have the ESC showed a different picture. The losses will harm both our ability to sus- Such drops are typical in the summer been let go since the current fiscal year seasonally adjusted unemployment tain a well-trained work force and to when schools are out of session. The started in July. rate did “jump” from 10.1 percent in remain competitive in the global mar- unadjusted jobs number rebounded to A similar survey by the Univer- July to 10.4 percent in August. Yet ESC ketplace. It’s worth noting that since 189,300 in August and should rise even sity of North Carolina system showed also reported a seasonally adjusted net Jan. 1 the state has seen an increase of more when the September report is re- the elimination of 487 full-time filled increase of 13,600 government jobs. approximately 34,000 private-sector leased Oct. 21. positions, 2,544 filled part-time posi- At a minimum, it is premature to jobs.” ESC officials defend their ap- tions, and 1,487 unfilled positions. UNC-Charlotte and Elizabeth City make any conclusions about a purport- proach. Agency spokesman Larry Adjusting the numbers State University reported zero re- ed relationship between government Parker told Carolina Journal that sea- job levels, the unemployment rate, and ESC serves as the local agent for sonally adjusted estimates are “accu- Continued as “ESC,” Page 15 OCTOBER 2011 | CAROLINA JOURNAL PAGE 15 From Page 1 Perdue Prepared to Flip on Alcoa Dams Takeover Bid? Continued from Page 1 fight against Alcoa. century. Since Alcoa is not interested in Alcoa recruiting companies selling the facilities to North Carolina, Earlier this year Alcoa success- Perdue’s strategy was to convince the fully recruited another company to the federal government not to renew Al- site without assistance from the Per- coa’s license to operate the dams and due administration. instead give the license to the state. In May, California-based Elec- Legal challenges and water quality tronic Recyclers International an- questions initiated by the Perdue ad- nounced it would open a regional ministration have stalled the relicens- recycling facility to process comput- ing process. The situation remains fluid. The ers, televisions, cell phones, and other Stanly County Board of Commission- electronic waste at the Badin Industrial ers filed a lawsuit against the state De- Park. partment of Environment and Natural The project would bring 200 Resources, which issued a water quali- “green” jobs and a $10 million invest- ty permit to Alcoa in 2009 as part of the ment to Alcoa’s abandoned industrial relicensing efforts. The state revoked site. At a May 23 ceremony, civic lead- that permit last year, and the county ers took the podium, including U.S. continues to argue that the water flow- The Alcoa smelting plant that ended operations in 2007 would house the Clean Tech Rep. Larry Kissell, D-8th District; Sen. ing through the dams belongs to the project, along with the already announced Electronic Recyclers International. (CJ William Purcell, D-Scotland; Rep. Jus- state and that Alcoa provides no ben- file photo) tin Burr, R-Stanly; Badin Mayor James Harrison; and Stanly County Commis- efit to the region. The company has made it clear that the the hydroelectric plant comprises four sion Chairman Josh Morton. At a Sept. 28 forum in Thomas- project cannot go forward at the Badin dams and reservoirs located along a But Perdue was not present. Nor ville, Perdue said she cannot force the site until questions about control of the 38-mile section of the Yadkin River in was Commerce Secretary Keith Crisco, county to drop its objections to the power are resolved. Clean Tech wants Davidson, Davie, Montgomery, Row- a Stanly County native. Both were in- water quality permit, and hopes the Alcoa to provide the power for the fa- an, and Stanly counties. vited, and since Perdue took office county and Alcoa can settle their dif- cility. The reservoirs, named High Rock, in 2009 she and Crisco have become ferences. On Sept. 21, Stickler confirmed Tuckertown, Badin, and Falls, lie with- regular participants at major jobs an- Clean Tech has notified the board that Perdue supports his company’s in 38,000 acres of real estate owned by nouncements in North Carolina. The in writing about its plans and commit- efforts to go forward with the project. Alcoa Power Generating Inc., a subsid- top administration officials to attend ments. “We can’t go into a situation “Clean Tech believes that, working iary of Pittsburgh-based Alcoa. Alcoa where we have lawsuits against our bought the land and constructed the were two commerce officials who did with the governor’s full support, that a not participate in the formal program. landowner,” said Clean Tech board path forward can be found in the very hydroelectric dams to supply power to member David L. Stickler to Charlotte its aluminum smelting plant in Badin, Neither the governor’s office nor near term,” he told CJ. the Commerce Department issued a radio station WFAE-FM. The landown- “The attempts by a small number a small town east of Albemarle. er is Alcoa. Aluminum production started in news release announcing the new jobs. of elected and appointed officials in Crisco also has been a key player in A Sept. 20 news story in the Stanly County and Raleigh to take cer- 1917 and continued until 2002, when Salisbury Post reported that the Stanly the company shut down most of the Perdue’s efforts to take over Alcoa’s tain assets owned by Alcoa is putting facilities. Commerce spokesman Tim County board has met in closed ses- Clean Tech’s project in great jeopardy. operation. All production stopped in sion three times since Sept. 12 to dis- Crowley told CJ that Crisco did not at- Clean Tech understands that significant 2007. The hydro facilities continue to cuss the matter and now is seeking a tend because of a scheduling conflict. amounts of money have been spent on generate up to 210 megawatts of elec- meeting with Perdue. At the time, Perdue spokeswom- legal and lobbying costs fighting with tricity that Alcoa wholesales to other Alcoa recruited Clean Tech, and an Chrissy Pearson also told CJ that the Alcoa. Clean Tech believes that these power companies. Clean Tech will rely on the existing governor had a prior commitment. CJ dollars would be better spent helping Alcoa operates the project under infrastructure and electrical power re- also asked Pearson if the job announce- to recruit companies to North Carolina a license from the federal government. sources owned by Alcoa. Clean Tech The initial 50-year license was issued in ment would affect the state’s efforts to will recycle scrap metal at the facility, and to retrain workers for advanced take over Alcoa’s facilities. “The gov- manufacturing jobs such as those at 1958 and Alcoa started the relicensing and expects to purchase $60 million process in 2002. The Federal Energy ernor’s concerns about the Alcoa situa- Clean Tech,” Stickler added. of raw materials from businesses in Regulatory Commission likely would tion have not changed,” she said. “Clean Tech continues to believe North Carolina each year. The compa- have issued a new license to Alcoa if The Stanly News & Press reported that with the governor’s assistance and ny is not seeking state incentives and Gov. Mike Easley had not intervened Sept. 23 that Perdue will be honored at direct involvement that we will soon has pledged to donate $500,000 annu- in April 2008. a reception in Albemarle Oct. 7. Tickets be able to call North Carolina home,” ally to the local school system in addi- Citing concerns of some local for the event range from $125 to $1,000. he said. tion to the local property taxes it will governments in the region, Easley A member of the host commit- pay. Project history asked FERC to delay issuing a new tee is Albemarle banker Roger Dick, Clean Tech will require large license until those concerns were ad- a leading opponent of Alcoa’s reli- amounts of energy to run its operation. Known as the Yadkin Project, dressed. Perdue has continued the censing efforts. CJ ESC Reports Show No Net Job Losses In Public Sector at Present

Continued from Page 14 cide with ESC data. School systems as much as 100,000 every summer, be- The employment numbers come may count the elimination of unfilled cause most public school teacher jobs from two separate employment statis- ductions in filled full-time positions. positions in different ways. They may are not counted during the summer tics programs managed by BLS. The UNC–Chapel Hill reported that it had not distinguish between a count of break. unemployment rate comes from a U.S. eliminated 95 filled full-time positions. employees and a count of jobs — and ESC’s Parker told CJ that most Census Bureau national monthly sur- If these surveys are accurate, ed- whether the jobs are filled or unfilled. economists would agree a more reli- vey for BLS of 60,000 households, with ucation job losses would total roughly ESC also emphasizes seasonally ad- able method of measuring changes in about 1,500 of them in North Carolina. 6,000, rather than the 18,000 Perdue justed numbers in its monthly release government jobs would be to compare The count of jobs comes from the predicted. rather than raw estimates. unadjusted employment numbers Current Employment Statistics pro- Still, there’s no way of knowing The BLS raw count of govern- from September 2010 with those from gram. It is based on a sample of private whether these surveys would coin- ment jobs in North Carolina drops by September 2011. and government employers. CJ PAGE 16 OCTOBER 2011 | CAROLINA JOURNAL Interview Zarate: We Are Safer Since 9/11, But There Remain Concerns

By CJ Staff RALEIGH “The reality is that citizens need to re- s people across the United States commemorated the 10th alize that we are much safer now. We anniversary of the Sept. 11, A2001, terrorist attacks on New York and have done some very important and Washington, D.C., many wondered how well the nation has improved its good things as a country to make our- ability to prevent similar terrorist at- selves safer. We also, though, need tacks today. That was one of the topics Juan to realize that 100 percent surety in Zarate, senior adviser to the Center for Strategic and International Studies, ad- our ability to stop all terrorist attacks dressed during a recent lecture at Duke University. Zarate was deputy national is not there and that we have to have security adviser for combating terror- ism from 2005 to 2009. societal resilience in the event that After his speech, Zarate dis- something actually does happen.” cussed the current state of federal anti- terrorism measures with Mitch Kokai Juan Zarate for Carolina Journal Radio. (Head to Center for Strategic and http://www.carolinajournal.com/ cjradio/ to find a station near you or to International Studies learn about the weekly CJ Radio pod- cast.) During the lecture, Zarate called efforts to take out Osama bin Laden fortunately, continuing to threaten the cally, in terms of national security, in Where they have, for example, “critically important.” United States. So I think it’s clear we’re terms of how we view and sense the signed an executive order trying to safer. We’ve built the institutions and threats to the United States, we’re ever close Guantanamo on an artificial Zarate: I don’t think we can the practices that have allowed us to going to go back to a Sept. 10, 2001, deadline — not fully appreciating the imagine the end of al-Qaida — or the disrupt terrorism. The legitimacy and mentality or psychology. I think the re- complexities of that, not fully appreci- movement — without the death or effectiveness of al-Qaida have dimin- alities of terrorism in the 21st century ating the fact that President Bush said capture of bin Laden. And that’s why ished. But there remain concerns: an — not just al-Qaida-driven, but other he wanted Guantanamo closed in 2006 I think you’re starting to see from [De- ideology that is alluring to individu- terrorist threats and other transnation- and was trying to do that, not fully ap- fense] Secretary [Leon] Panetta and als radicalized by the Internet or oth- al threats — you look at drug traffick- preciating the complexities of devis- others actual discourse about ending erwise, affiliates of al-Qaida in places ing networks, you look at the Mexican ing a detainee system that includes a al-Qaida, crushing al-Qaida. [Chief like Yemen or North Africa that pres- cartels and what’s happening in Mex- military tribunal option, that includes presidential counterterrorism adviser] ent a real risk to the United States still. ico — I mean, these are threats that criminal trials, that includes what the John Brennan has talked about crush- So I think it’s safe to say we’re safer but move beyond their locality, that impact Obama administration accepts is in- ing the al-Qaida core. We’re allowing not yet safe. the United States in ways that in a pre- definite detention without any trial ourselves to imagine that and to actu- 9/11 context didn’t quite equate and — those are differences the Obama ally drive toward that, in part because Kokai: Based on your presenta- didn’t quite calculate in terms of our administration has tried to draw. But bin Laden is gone. Strategically, it mat- tion, I get the sense that it’s not just the national security. the difference has not held up and has ters, though, and I think that some of case that there was a threat 10 years forced the Obama administration to the things that have been found in the ago, and we’ve progressed to some de- Kokai: You worked for the Bush retreat from some very controversial Abbottabad files and in his diary dem- gree in meeting that threat. The threat administration. Some people listening policy decisions. onstrate what some of us believed, has changed and transformed in the to us are going to say, “OK, this guy is which was: Not only was he a symbolic past decade. going to have a lot of bad things to say Kokai: You’re a professional in core of the movement, but he was still about the way President Obama has this field. You’re going to be focusing strategically driving the movement. Zarate: That’s right. I think in the handled terrorism.” But you call his much more attention on anti-terror- Again, back to the innovation of first instance the reaction to 9/11 was decision to take out Osama bin Laden a ism than the “normal” person. What bin Laden, he and Ayman al-Zawahiri an attempt to get our hands on a prob- “gutsy call” and the “right call.” How should a normal person who doesn’t had always been the drivers of attack- lem that, frankly, we hadn’t dealt with has President Obama done in handling have to — or want to — think every ing the West, keeping the eye on the properly and we didn’t know enough anti-terrorism? day about al-Qaida and terrorism, ball of attacking the United States in about. So it was an intense effort to not what should that person know about the first instance — getting all of the only learn more about al-Qaida, but to Zarate: Well, I think it’s a little bit how safe we are 10 years after 9/11? adherents to this movement to face disrupt its activities around the world. of a mixed story. I think there’s been west, to attack west. And we see now That led to arrests around the world, fundamental continuity in the coun- Zarate: An ordinary citizen, in some of the files that are being re- disrupted networks. We also saw at- terterrorism policies that were handed frankly, shouldn’t be worrying about vealed the fact that this internal de- tacks around the world, unfortunately. over in 2009. I think one of the reali- al-Qaida every day of their life. I actu- bate has actually been heightened over This was a movement that was poised ties is that our counterterrorism poli- ally feel … absolutely privileged by the time, something we hoped was hap- in terms of both its ideology and its lo- cies evolved over time. What we were roles I played, but also somewhat bur- pening — we thought, we sensed was gistics to actually mobilize and to at- doing in 2002 [and] 2003 changed and dened by the fact that I have to worry happening, but was really happening. tack. I think we often forget that reality. adapted. By the time we got to 2009, about what these terrorists are doing The good news is our counterterrorism there was a fundamental approach to on a daily basis as a matter of my pro- Kokai: Ten years after 9/11, just pressure actually impacted the group. our counterterrorism that, I think, the fession. The reality is that citizens need how safe are we? It has diminished al-Qaida’s reach. Obama administration has largely ad- to realize that we are much safer now. opted. Where I differ with the Obama We have done some very important Zarate: Well, I think that’s a dif- Kokai: During your presenta- administration is where they have and good things as a country to make ficult question to answer because I tion, the question came up: “Are we tried to starkly distinguish themselves, ourselves safer. We also, though, need think we’re much safer than when ever going to be safe? Are we ever go- in obvious ways, from the Bush ad- to realize that 100 percent surety in our 9/11 happened — clearly. But the real- ing to feel as safe again as we did Sept. ministration. That’s when they’ve got- ability to stop all terrorist attacks is not ity is that the terrorist threats that we 10, 2001?” ten into trouble because the baseline of there and that we have to have societal face in the 21st century are very adap- their policy is consistent with the Bush resilience in the event that something tive, in some ways relentless, and, un- Zarate: I don’t think psychologi- administration. actually does happen. CJ OCTOBER 2011 | CAROLINA JOURNAL PAGE 17 Higher Education Hollywood Questions Links COMMENTARY A More Aggressive Between Degree and Work Board of Governors? By Duke Cheston people have diplomas than there are Contributor jobs requiring diplomas. (About 17 mil- ver the past few years, the proposals would expand the RALEIGH lion college graduates are doing jobs Pope Center has proposed university’s mission well beyond he recent film “Larry Crowne” that don’t require a degree, according a number of bold changes education. The market crash of reveals that Hollywood is aware to Richard Vedder, an economist and Ofor the university system, such 2008 slowed down that expansion. of credential inflation — the idea president of the Center for College Af- as limiting enrollment, providing With that exception, the thatT too much attention is being given fordability and Productivity.) greater transparency, and prun- board has tended to be quiescent to getting a diploma that may not be “Larry Crowne” is also distinc- ing the underbrush of politicized — echoing the president and help- worth what it costs. tive in giving a positive portrayal of courses, centers, and programs. ing to boost support for the univer- Businesses are using degrees as a community colleges. For example, in Will any of these proposals come sity in the legislature. screening mechanism to weed out po- spite of an economics professor who is to pass? The board is also often under tential employees, regardless of actual pompous and quirky, Crowne learns Much depends upon the fire for its method of selection. A talent. enough to fix his personal finances and UNC Board of Governors. The position on the board is a presti- The film, starring Tom Hanks escape crushing debt. Those who know 32-member board supervises the gious political plum, partly be- and Julia Roberts, tells the tale of Larry community colleges from the NBC entire University of North Caro- cause the board chooses more than Crowne (Hanks), a man laid off from show “Community” will recognize lina system (16 colleges and one half the trustees of each constituent his job for no reason other than his lack that this is a more realistic portrayal. high school), and UNC president campus. of a college degree. Crowne is fired (To be fair, “Community” is a comedy Thomas Ross reports to it. Another problem with the while a colleague is promoted, even show and not particularly interested in This year, by one Board of Governors is its though it’s realism.) measure — political affili- size. Such a large govern- obvious to In the ation — we have a very ing body allows — even all involved movie as different board than in forces — a small group (even the in life, the the past. Half the voting to take control. During man pro- s t u d e n t s members of the Board of Bowles’ term, that meant moted) that a t t e n d i n g Governors were se- that his powerful per- Crowne is such schools lected by the Republican sonality controlled the much more are often in leadership of the General agenda. The large size capable. transitional Assembly, ending the also stifles debate. T h e periods. This dominance of Democrats. JANE In spite of these rest of the can be seen While there’s no reason to SHAW functional challenges, movie is in Hanks’ believe that Republicans the board faces another the story of c h a r a c t e r, care more about academic new reality. Students, Crowne try- but also in quality than do Demo- families, and taxpayers ing to get Julia Roberts and Tom Hanks in a scene from the his flirta- crats, the new members are not are increasingly concerned about back on his movie “Larry Crown.” tious scoot- beholden to the status quo or the higher education’s quality and feet. After e r- d r i v i n g traditional political establishment. cost. Thus, the Board of Gover- visiting all the retail outlets in town, he friend Talia (Gugu Mbatha-Raw), who Nor are they likely to be as nors has a strong motive to find discovers that without a college degree opens a thrift store before finishing the comfortable with the left-wing out what students are learning at he can’t get a job similar to his previ- semester. thinking typical on North Carolina UNC campuses and how much ous one (a store manager at “U-Mart”). One of the few deviations from campuses. Many are likely to be that learning costs taxpayers and So he enrolls at a local community col- accurately portraying community col- fiscal conservatives. students — even if it hasn’t looked lege. leges is the fact that hardly any stu- The board has the power to at those issues before. Of course, part of the problem is dents dropped any classes. The class make changes. Given its broad au- Fortunately, two initiatives that it’s just a bad economy, and the taught by Julia Roberts’ character had thority, one might expect the board suggest that the board is opening movie reflects that, too. “Hard times, only 10 students, and all 10 students to lead in making major decisions the door to scrutiny of academic I understand,” says Crowne while apparently remained for the whole about its campuses. But in the programs. walking out of a retail store that didn’t semester. Reality is different: Com- past, it has stayed away from most One is a study of duplication give him a job. munity colleges generally have very academic matters and has never of academic programs, headed The issue that the movie grap- low graduation rates, often in the 20 questioned the steady increase in by former UNC-Charlotte chan- ples with is the tendency of employers percent range. Conversations with enrollment. cellor Jim Woodward. The other to rely on a college degree when one community college students have con- In fact, commentators have is a plan to look at faculty work isn’t necessary for the job. One reason firmed the impression that a signifi- remarked on the board’s docility. loads. While this could end up as for this tendency may be that in many cant portion of the members of each It has been called “reactive” rather a smokescreen if the committee instances employers are not allowed to class usually drop out during the term. than “proactive.” And during the treats any activity conducted by use standardized tests as a screening But, then again, it was Julia Rob- tenure of system president Erskine faculty as “work,” it could be sig- mechanism. Tests that have a “dispa- erts teaching the class. Bowles, from 2006 to 2010, the nificant instead. The public wants rate impact” on some racial or ethnic “Larry Crowne” did not do board rarely disagreed publicly to know how many classes faculty groups came under much stricter scru- much to please the critics. The catch- with his proposals — possibly just are teaching in return for taxpayer tiny following the 1971 Griggs v. Duke word used to describe it seemed to be once, when it took a tougher stance dollars. Power Supreme Court case. “fluffy.” It’s “film as comfort food,” following scandals at N.C. State These small ventures could be Another consequence of creden- wrote the Detroit News’ Tom Long. But University. a positive beginning for a serious tial inflation also appears in the movie. the movie shows that some corners of It did initiate the UNC To- and aggressive Board of Gover- Although failure to get a degree can Hollywood, at least, are questioning morrow Commission, with Bowles’ nors. CJ keep you from getting a job, having a the link between college degrees and backing. The board authorized degree doesn’t guarantee a job. One of employment. CJ meetings around the state to gather Crowne’s former bosses — who has a input about how the university Jane S. Shaw is president of the college diploma — is later found to be Duke Cheston is a reporter and writ- could serve the state’s needs. If John W. Pope Center for Higher Edu- working as a pizza deliveryman. This er for the John W. Pope Center for Higher implemented, the commission’s cation Policy (popecenter.org). probably reflects the fact that more Education Policy (popecenter.org). PAGE 18 OCTOBER 2011 | CAROLINA JOURNAL Higher Education Campus Briefs Chronicle Assesses State of N.C.’s Higher Ed .S. News & World Report listed many universities in By Jenna Ashley Robinson universities was $2.16 million in 2010- • State residents made up 73 North Carolina in its yearly Contributor 11. percent of all freshmen enrolled in “Best Colleges” rankings, released U RALEIGH • N.C. State was among the top North Carolina in fall 2008. Eighty-five Sept. 13. In National University very year, the Chronicle of Higher 20 universities in the number of doc- percent of all North Carolina residents rankings, Duke University was Education releases its fact-filled torates awarded in economics in 2008- ranked 10th, Wake Forest Universi- who were freshmen attended college almanac issue, which provides 09 (19 degrees). ty 25th, and UNC-Chapel Hill 29th. in their home state. Euseful information about colleges and • UNC-Chapel Hill was among Among Southern regional The professors universities, Appalachian State universities in every state. Some of the the top 20 universities in the number of key findings about North Carolina are doctorates awarded in history in 2008- University ranked 10th, UNC- North Carolina professors are noted here. 09 (18 degrees). Wilmington 11th, Queens Univer- compensated well for their work. Aver- To begin with, North Carolina sity of Charlotte 21st, Campbell age pay for professors was well above has 16 public four-year institutions, 59 The students University 28th, Western Carolina the average per capita personal income public two-year institutions, 44 private University 32nd, Wingate Univer- North Carolina colleges and uni- in the state, currently $35,638. nonprofit four-year institutions, one sity 39th, and Gardner-Webb Uni- versities are • The average pay of a full pro- versity 47th. private nonprofit two-year institution, growing — es- and 17 private for-profit institutions. fessor at a public doctoral institution Among Southern regional pecially public (like UNC-Chapel Hill or N.C. State) colleges, Catawba College was These add up to a total of 137 higher ones. was $120,310 in 2009-10. Average pay ranked 16th, Elizabeth City State education institutions in the state. The num- for an assistant professor was $71,338. University 28th, Mars Hill College ber of new high University finances • The average pay of a full pro- and Methodist University were school gradu- fessor at a public master’s institution tied for 35th, Belmont Abbey Col- Despite the economic downturn, ates in North (like UNC-Pembroke) was $90,621 in lege ranked 38th, and Barton Col- university funding and spending grew Carolina is ex- 2009-10. Average pay for an assistant lege 42nd. in 2011. pected to grow professor was $62,192. U.S. News bases its ratings • State and federal support for 16 percent be- • The average pay of a full pro- on assessments from administra- higher education in North Carolina tween 2011-12 tors at peer institutions, retention rose 6 percent between academic years and 2021-22. fessor at a private nonprofit doctoral of students, faculty resources, stu- 2009-10 and 2010-11. • From 1999 to 2009, under- institution (like Duke) was $149,686 in dent selectivity, financial resources, • Two of the 99 American insti- graduate enrollment in North Carolina 2009-10. Average pay for an assistant alumni giving, and (for National tutions that charged more than $50,000 schools grew 43 percent. professor was $74,335. Universities and National Liberal for tuition, fees, and room and board in • Of students attending college • The average pay of a full pro- Arts Colleges) high school counsel- 2010-11 are located in North Carolina: in North Carolina in 2009, 83 percent fessor at a private nonprofit master’s or ratings of colleges and “gradu- Wake Forest University ($50,980) and attended public universities. institution (like Elon University) was ation rate performance.” The data Duke University ($51,865). • UNC-Pembroke was one of $66,139 in 2009-10. Average pay for an come from the schools and several • Wake Forest ranked fifth in the fastest-growing public master’s assistant professor was $49,818. higher education-related associa- the nation in licensing income (income universities in the country between The Chronicle of Higher Education tions. compiles information from a wide va- Four North Carolina schools from patents) in 2009 at $95,636,362. 2004 and 2009, increasing enrollment riety of sources, including the federal were among the top 50 national • Average tuition and fees at 33 percent. government and associations such as universities for “best value.” U.S. public four-year institutions in North • Minorities constituted 33 per- News’ calculation for Best Value Carolina (2009-10) were $4,559. At pri- cent of North Carolina university en- the National Association of College takes into account a school’s aca- vate four-year institutions, average tu- rollment in fall 2009. and University Business Officers. CJ demic quality and the 2010-11 net ition and fees were $23,788. • In North Carolina, 27 percent cost of attendance for a student • Duke has the largest endow- of residents have at least a bachelor’s Jenna Ashley Robinson is director of who receives the average level of ment in the state: $4,823,572,000. degree. Nine percent have at least a outreach coordinator for the John W. Pope need-based financial aid. Because master’s degree, up from 26.1 percent Center for Higher Education Policy U.S. News considers the most sig- Academics and 8.7 percent last year, respectively. (popecenter.org). nificant values to be among colleg- Several North Carolina univer- es that are above-average academi- sities were among the nation’s big cally, only schools ranked in or spenders on scientific research. Not near the top half of their categories surprisingly, those schools also re- are included. ceived considerable funding from fed- In this category, Duke Uni- eral grants. versity was ranked ninth, UNC- • Four of the top 100 schools in Chapel Hill was ranked 12th, N.C. total spending for science (2009) are State was ranked 20th, and Wake located in North Carolina: Duke ($805 Forest was ranked 33rd. million), UNC-Chapel Hill ($646 mil- U.S. News, once the only lion), North Carolina State University source for college rankings, no lon- ($380 million), and Wake Forest ($201 ger monopolizes the field. Other million). national and international rank- • Four of the top institutions in ings — such as Forbes, The Aca- federal dollars for science (2009) are demic Ranking of World Universi- located in North Carolina: Duke ($438 ties, and Times Higher Education World Rankings — use different million), UNC-Chapel Hill ($431 mil- criteria and find different results for lion), Wake Forest ($144 million), and universities in North Carolina and N.C. State ($135 million). around the world. CJ • In fiscal year 2008 and 2009, UNC-Chapel Hill constructed the most Compiled by Jenna Ashley Rob- new space for science and engineering inson, outreach coordinator for the research in the country: 355,000 square John W. Pope Center for Higher Edu- feet. cation Policy (popecenter.org). • Total spending on research and development by North Carolina OCTOBER 2011 | CAROLINA JOURNAL PAGE 19 Higher Education Opinion Donor Beware: Universities Play Games With Your Philanthropy veryone knows the legal maxim When called on university docu- orientation, but the Madison Program caveat emptor. That is, buyers their legerdemain, ments. Among guarantees that the American tradi- must be on guard against decep- university officials Issues the mountains of tion isn’t ignored (or vilified) com- Etion by the seller. said, “Gee, we’re paper were nu- pletely on campus. Today, buyers have more legal really sorry.” in merous revealing Another is the “endowed chair” protection under the law than they As former Higher Education memos, including approach. Suppose you have amassed used to. The admonition to be on Harvard President one to the presi- a fortune and want to be sure at least guard now applies Derek Bok once dent saying, “If one professor at a university (per- more to people said, “College the Robertsons haps your alma mater) will teach and who want to give presidents are like find out about advocate the virtues of laissez-faire away property, gambling addicts this, there will be capitalism — a counterweight to the especially gifts to and exiled royalty in that there is nev- trouble.” prevalent anti-capitalist mentality. You colleges and uni- er enough money.” Their insatiable After years of costly legal wran- approach officials at the school and versities. If donors desire to spend leads many of them gling, the case was settled in 2008. say that you’ll put up so many dollars aren’t careful, to smile sweetly and promise donors The Robertsons got some money back. if it will create the Murray Rothbard school officials are that they will abide by their wishes Princeton did not admit wrongdoing Chair in Economic Studies, named for likely to use their faithfully. But once the ink is dry, they but established an office to oversee your favorite economist. donations for pur- start trying to figure out how they can the administration of donations to Hungry for money, school of- poses they didn’t GEORGE divert the money or property from the make sure that donor intent would be ficials agree. Wooster shows, however, intend. LEEF donor’s purposes to their own. respected in the future. that this approach is perilous. The Pope Wooster Much of the The most obvious pitfall is the Center’s latest pa- describes many paper is devoted problem of putting someone who per examines the of these cases in to the problem shares your beliefs in the chair in the troubles that can beset donors. Games detail. The King Conservative faced by con- first place, and then ensuring that all Universities Play by Martin Morse Kong of them all servative and successors also will share those be- Wooster, a writer with great knowl- was the battle and libertarian libertarian donors liefs. The nightmarish possibility that edge about the field of philanthropy, between the Rob- who would like to the professor holding the Rothbard explores the travails of donors who ertson family and donors especially put some of their Chair might one day be a Keynesian wanted colleges to use their money or Princeton Univer- face problems wealth toward or a Marxist cannot be discounted. property in particular ways. sity. Charles Rob- improving the Third, there is “the BB&T What if, for example, you owned ertson had given with donations “balance” on approach.” John Allison, former a farm and, since you’re getting on in Princeton a huge college campuses president of BB&T Bank, wanted to years, wanted to donate it to a land- sum in the early by ensuring that establish programs to emphasize the grant university with the understand- 1960s, specifying there will be a teaching of free-market economic ing that the university would keep that the money be used to train future voice for their economic and philo- principles. BB&T makes limited-term it intact, using the farm for teaching federal foreign service workers in sophical ideas. Wooster discusses the grants to colleges that have identified and research purposes? If university Princeton’s Woodrow Wilson School. means by which donors have tried to solid faculty members who will teach officials accepted the donation under Years later, Robertson’s descen- accomplish that. those principles. The evidence indi- those terms, you would think that dants began to suspect that Princeton One is to create a center on cates that the BB&T approach is quite they would honor them. was siphoning away money from the campus devoted to scholarship in the effective. CJ Not necessarily. In the case of Wilson School and its students, using principles you hold. The James Madi- the Kiley Powers farm, given to Iowa it for other expenditures. Princeton son Program in American Ideals and State University a few years after the officials parried their arguments until Institutions at Princeton is the lead- George Leef is director of research death of the donor, the university sold the Robertsons finally brought a law- ing example. The faculty at Princeton for the John W. Pope Center for Higher the property and pocketed the money. suit that enabled them to get hold of is overwhelmingly leftist in political Education Policy (popecenter.org). PAGE 20 OCTOBER 2011 | CAROLINA JOURNAL Books & the Arts

From the Liberty Library Book review

• The 21st century will witness an epic struggle between the forces Essays Confirm Socialism Affects People’s Character of global governance and American constitutional democracy. Transna- • Thomas E. Woods Jr., editor, Back on the Road to Serfdom: Mueller’s essay exploring the true causes of the recent fi- tionalists in the United Nations and The Resurgence of Statism, Wilmington, Del.: ISI Books, 2010, nancial crisis, offering a corrective to the desperate scape- in the European Union, but more 223 pages, $29.95. goating we’ve gotten from the politicians responsible for it. importantly among America’s lead- Mueller’s essay is followed by one by Mark Brandly, who ing elites, are seeking to establish By George Leef reasserts the case for free trade and the international divi- a “global rule of law.” The more Contributor sion of labor, which is under attack by statists who would sophisticated transnationalists real- RALEIGH have us believe that free trade hurts workers in poor coun- ize that their goal could be achieved ince the bursting of the housing bubble in 2007, Amer- tries. That essay is followed by Dane Stangler’s, showing only through America’s voluntary ica’s social and economic troubles have been mount- how entrepreneurship is threatened by the ever-encroach- submission to global legal authority, ing rapidly. Unemployment remains high, saving and ing power of government and how foolish it is to think that presented to the American people in Sinvestment low. the state can perform the entrepreneurial function. Orwellian fashion as “leadership” The federal government is desperate to suck in enough Journalist Tim Carney contributes the next essay, evis- and “engagement.” money to pay its enormous tab for welfare and warfare a cerating one of the great myths of modern life, namely that In Sovereignty or Submission: bit longer. Our politics become increasingly vicious. About big business is opposed to big government. The truth, Car- Will Americans Rule Themselves or be two-thirds of the American people say that the country is on ney shows, is that big business has gotten extremely cozy Ruled by Others, John Fonte reveals the wrong track. with both liberal and con- how this troubling and fast-rising The great battle is to servative politicians. As a movement aims to subordinate persuade those people that result, America’s economy American sovereignty. The global our ills are rooted in stat- is drifting away steadily governance movement does not seek ism — that is, reliance upon from free enterprise and legitimacy in democracy, but rather government to do things into a syndicalist system in its own partisan interpretation of that should be left to vol- dominated by politically human rights. The U.S. Constitution, untary action. Back in the favored firms. globalists argue, must conform to 1930s, most Americans also Two essays deal with “evolving norms of international thought the country was the interface between re- law.” Learn more at www.encoun- on the wrong track, but un- ligion and the politicized terbooks.com. fortunately they blundered society. Gerard Casey ex- into the wrong conclusion amines the traditional — that a great expansion hostility many Christian of government power was clerics have toward capi- • Many people assume that what we needed. The chal- talism and finds that it is this generation of young Americans lenge today is to convince without any foundation is much like any other. But thanks them that government is in the Bible. John Larrivee to the radical Left, they’re not even the problem, not the solu- also evaluates the religious close. So says columnist and author tion. arguments against the free Marybeth Hicks in her new exposé, Among the most stal- market. In his view, those Don’t Let the Kids Drink the Kool-Aid: wart opponents of big gov- arguments are not only Confronting the Left’s Assault on Our ernment and its apologists naïve, but also ultimately Families, Faith, and Freedom. is historian Thomas Woods. undermine both faith and In the book, Hicks exposes His 2009 book Meltdown ex- civil society. how the Left’s relentless attacks on plained why the housing In the book’s final America’s character and culture bubble and its aftermath essay, Paul Cantor shows finally have succeeded, and are were caused entirely by how government interven- ushering in the first authentically politics, not the free market. tion in culture, specifically socialist generation of Americans With this book, he and his television, substitutes bu- who believe they are entitled to a essayists indict statism gen- reaucratic directives for the lifetime of government care. erally and argue strongly in spontaneous origins of true America can’t maintain the favor of radical depolitici- culture. If you ever won- kind of system its founders built zation. dered why the boat on the without the kind of people who In his introduction, series “Gilligan’s Island” built it, Hicks writes. More at www. Woods identifies a key ele- was named “Minnow,” regnery.com. ment in our national mal- you’ll find out by reading aise: “The more functions the state usurps from civil soci- Cantor’s essay. ety, the more the institutions of civil society atrophy. Once These are all splendid pieces, but I am especially supplanted by coercive government, the tasks the people drawn to Per Bylund’s. In it, he demonstrates the truth of • In Boom and Bust: Financial used to perform on a voluntary basis come to be viewed as Hayek’s argument that socialism destroys the foundation Cycles and Human Prosperity, Alex J. impossible for society to manage in the absence of govern- for prosperity by gradually changing the character of the Pollock argues that while economic ment. … The spiritless population comes in turn to look for people. Bylund observes that young Swedish adults today downturns can be frightening and political solutions even to the most trivial problems.” are far different in their outlook than were their grandpar- difficult, people living in free-market The book is made up of 10 essays. In the first, Brian ents. Whereas Swedes once had been known for their solid economies enjoy greater health, Domitrovic gives a very useful history of the growth of the work ethic, after many years of the welfare state and its nu- have better access to basic neces- American state over the last two centuries. Carey Roberts merous entitlements, it is largely gone. Young Swedes are sities, and better education, work follows it with an essay in which he shows the continuing known for taking as much time off as they can while col- less arduous jobs, and have more damage we suffer due to the statist thinking of Alexander lecting as much as possible in government benefits. The na- choices and wider horizons than Hamilton. Swedish economist Per Bylund then demolish- tion’s standard of living is falling and must continue to do people at any other point in history. es the notion, so often uttered by advocates of the welfare so. This wonderful reality would state, that Sweden proves how effective the “third way” (a I have just one tiny quibble with the book’s title. When not exist in the absence of financial welfare state neither capitalist nor socialist) can be. were we ever off the road to serfdom? CJ cycles. The book explains why. Those three essays establish a solid framework for More at www.aei.org. CJ thinking about the impact of government interference with George Leef ([email protected]) is book review editor for the spontaneous order of society. Woods next adds Anthony The Freeman. OCTOBER 2011 | CAROLINA JOURNAL PAGE 21 Books & the Arts Questions At Workshops Aid Understanding of Original Intent ver the past year and a half, of his fortune to the American cause. Federalists think of today’s politics? Dur- law violated longstanding British I have been traveling across For his efforts, the British destroyed ing their time, Antifederalists ques- constitutional traditions. North Carolina with my Hooper’s home, and the Wilmington tioned every attempt to give more 4. Weren’t the Antifederalists un- colleagueO Michael Sanera leading lawyer fled from town to town avoid- power to the national government and American to oppose the ratification of the constitutional workshops. In them, ing capture, imprisonment, and pos- demanded explanations for each effort Constitution? No. The Antifederalists we emphasize the federal nature of sible execution. In 1787, he supported to do so. The Federalists, on the other questioned centralization, or “ener- the American the ratification of the U.S. Constitu- hand, believed the national govern- getic” government as it was called government and tion. ment should be given certain powers, in the 1780s, because they wanted to remind Tar Heels Another important North such as the ability to raise an army, preserve individual liberty. This was a that knowledge of Carolinian was James Iredell Sr. In but the powers should remain few common sentiment among Americans history is essential the early 1770s, Iredell published a and limited. Although the two camps not far removed from the Revolution- to understanding pamphlet challenging the legality of opposed each other, by and large ary War experience. Antifederalists original intent and the British Stamp Act and other duties both defended liberty. They would be believed the best way to preserve indi- the Constitution’s and taxation. His “Principles of an disappointed with the trajectory of the vidual liberty was to keep the gov- meaning. American Whig,” is remarkably simi- nation and the expansion of govern- ernment small and ensure that states The ques- lar to the Declaration of Independence ment over the past century. remained sovereign. tion-and-answer in its language and justifications for 3. Did the founders create a living In many ways, Antifederalists sessions are TROY opposing increased regulation. By the Constitution? The framers opposed also shaped the political discourse interesting, so I KICKLER late 1780s, Iredell emerged as a lead- what we call a “living Constitution,” during the ratification debates. Today, thought I’d share ing Federalist, supporting the Consti- or what some call legal positivism. many rely on The Federalist Papers for some of the oft- tution. Americans believed that Parliament an understanding of original intent of repeated questions with readers. Using the pseudonym “Marcus,” ignored the traditions of common the Constitution. One must remember, 1. Who was the most influential Iredell refuted all 11 of Antifederal- law, British constitutionalism, and the however, that The Federalist answered and important North Carolina found- ist George Mason’s objections to the century-old colonial charters given the Antifederalist concerns expressed ing father? This is difficult to answer proposed Constitution. Iredell later to them by the Crown. The colonists in New York Gov. George Clinton’s because many North Carolinians served as one of the first justices on often appealed to a higher author- Cato essays. Had Antifederalists not sacrificed much, including their lives, the U.S. Supreme Court and is known ity — natural law — and believed raised questions, The Federalist Papers to secure American independence. Let best for his dissent in Chisholm v. Geor- that Parliament acted without regard never would have existed. CJ me name two, however. gia (1793). His dissent influenced the for those traditions. As one example, In 1776, William Hooper served passage in 1795 of the 11th Amend- Americans opposed the quartering on the committee to draft the Declara- ment, allowing residents of one state of troops in citizens’ homes. Even Dr. Troy Kickler is director of the tion of Independence. He later signed to sue residents of another state. though Parliament passed a law al- North Carolina History Project (northcar- the Declaration and donated much 2. What would the Antifederalists/ lowing the quartering of troops, that olinahistory.org). Stay in the know with the JLF blogs Visit our family of weblogs for immediate analysis and commentary on issues great and small www.JohnLocke.org YOUR HOME ON THE WEB FOR The Locker Room is the blog on the main JLF Web site. All JLF employees and many friends of the foundation post on this site every day: http://www.johnlocke.org/lockerroom/ NORTH CAROLINA PUBLIC POLICY Creating your own personal Key Account at www.JohnLocke.org is a great starting place for tracking the critical public policy issues facing North Carolina.

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

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The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 22 OCTOBER 2011 | CAROLINA JOURNAL Books & the Arts

Short Takes on Culture Book review ‘Conan’ Worth a Quarter A Personal Journey That Inspires • “Conan the Barbarian” Party movement. • Dick Cheney with Liz Cheney, In My Cheney is able to give the reader an in- Directed by Marcus Nispel Of all aspects of the book, the Time: A Personal and Political Memoir, depth look into every administration Lionsgate most eye-opening are his descriptions New York: Threshold Editions, 2011, from Richard Nixon’s through Bush of the Tea Party events — a move- 562 pages, $35.00. 43’s. hat movie had a budget ment that he said was “characterized He provides details of the Ford of over $70 million and by people who have disdain for the By Melissa Mitchell administration and is lavish in his cost me $7.50 to see — of political establishment in Washing- Contributor praise of Gerald Ford. It is apparent Wwhich $7.25 was wasted? “Conan the ton.” These people “were Democrats, RALEIGH that Cheney does not admire Jimmy Barbarian.” Republicans, and Independents, hen I started to read for- Carter. Surprisingly, although he was This film is taken from a best- but none with much affinity for any mer Vice President Dick a congressman during the Reagan ad- selling line of novels featuring a char- political party.” As the mainstream Cheney’s book, In My Time: ministration, there is very little about acter by the name of Conan. Conan media tried to rebuff the grass-roots WA Personal and Political Memoir, written Reagan, other than Iran-Contra. I was of Cimmeria to be exact. As a hero of movement, DeMint outlines his fight with his daughter Liz, it was not what left wondering if Cheney did not care a fantasy film, Conan has only one to shine a positive light on it. I expected. for Reagan or if there was just too redeeming quality. He is unwilling DeMint admirably gives credit The media interviews with much information to include within for anyone he loves or honors to die. to the American people for the success Cheney as he promoted the book fo- the book. His father was tortured and of the Tea Party and exposes what was cused on 9/11 and his years as vice The behind-the-scenes planning then forced to choose between death really happening on Capitol Hill. The president. Interviewers seemed bent for Desert Storm that Cheney relates for him or death for Conan, his son. book is a delight for true conservatives on unearthing some dirt or conflicts is intriguing. This was not an over- Conan fights to save his father, scar- everywhere. within the Bush administration, rather night project. As secretary of defense, ring his hands in the attempts, but — KRISTIN SZAFRANSKI than getting a full accounting of Dick Cheney not only oversaw the military ultimately fails, and his father dies Cheney’s life. Since the book opens planning, but also worked to secure in a shower of molten metal. with the events of Sept. 11, 2001, I as- the support of a host of other nations, Other than a few scenes toward sumed that this would be the book’s convincing Saudi Arabia to allow U.S. the end of the film which should have • Not Afraid of Life: My Journey So Far focus. But I was wrong. troops to deploy from Saudi soil. been rated X for nudity and depiction By Bristol Palin and Nancy French Yes, the book opens with that Cheney seldom expresses nega- of sex acts, the film is a string of bloody William Morrow eventful day, but the first chapter tivity toward any person, but during massacres from beginning to end. At jumps to a fasci- the planning for every turn, the main character is faced Add it to the growing genre nating history of Desert Storm, he with impossible odds and somehow of autobiographies by 20-year-olds: Cheney’s family, did admit having manages to cut or smash his way Bristol Palin’s Not Afraid of Life: My especially his fa- reservations about through any situation. Journey So Far chronicles her experi- ther’s family, who Gen. Colin Pow- And as a climax, the main ence as a teen mother. arrived in America ell’s dedication to character quotes his father and then Those interested in learning in 1630. the military ac- watches the antagonist fall into a more about Sarah Palin should look However, it is tion. Cheney also chasm. If you are looking for a film elsewhere. This memoir primarily is Cheney’s personal removed a general that provides you with highly ques- about Bristol’s chaotic relationship journey that truly who stepped out of tionable morals, gruesome actions, with Levi Johnston, the father of her inspires. Cheney bounds when talk- and a weak plot, look no further than child and a first-class deadbeat. Bristol readily admits that ing to the media. “Conan the Barbarian.” passes up no opportunity to dump he was arrested The book — CALEB YOUNG dirt on her former boyfriend. twice in his early ends with the after- Along those lines, the book often 20s for driving un- math of 9/11 and reads like a 16-year-old’s diary — only der the influence. the George W. Bush refined by an editor. Exclamation The second time, administration, but • The Great American Awakening: Two points and gossipy morsels abound. Cheney says, “I in the final chap- Years That Changed America, Washing- Although Bristol invokes her reliance realized the morn- ter Cheney is bru- ton, and Me. on Jesus, it often doesn’t mesh with ing I woke in that tally honest about By Jim DeMint her harsh attitude toward those who jail that if I didn’t President Obama B&H Books mistreat her. There isn’t much grace change my ways, I and his handling here. was going to come of Guantanamo Republican U.S. Sen. Jim De- Given what the Palins have en- to some bad end.” He changed that detainees, and the individuals who Mint’s book provides insight into dured, anger is understandable. But day. administered enhanced interrogation an arena in which few have ample is it necessary to air a load or two (or He also was kicked out of Yale, techniques. knowledge: the United States Senate. three) of dirty laundry for Americans not once, but twice for poor perfor- Dick Cheney’s memoir is fascinat- In stark contrast to the mainstream to eat up? mance. ing. Unfortunately, the events of 9/11 media’s coverage of the interim years I’m glad Bristol chose to have A changed Cheney would return and the media’s visceral hatred of Pres- between the 2008 and 2010 elections, her baby rather than get an abortion. to school and earn bachelor’s and mas- ident Bush have obscured Cheney’s DeMint’s most recent book presents I’m glad she’s telling teens to save sex ter’s degrees from the University of long and distinguished political career. a unique look behind the battle to for marriage. Both stands are coura- Wyoming. By age 35, he became Presi- Although I always have liked Cheney, restore America’s confidence in its geous. But her memoir, like many dent Ford’s chief of staff. At 37, he was I often thought he seemed grumpy. But federal government. aspects of the Palin saga, leaves me elected as Wyoming’s only representa- his memoir shows a thoughtful man It is with the loving support scratching my head and wondering, tive in the U.S. House, where he served and a problem solver. As he says, “I’m of his wife, his family, and his faith “Why?” for 10 years and was seen as a calming a man of few words.” that DeMint shares the story of how For those who lap up this kind force between the old-guard Repub- As Cheney dealt with his duties he fought against the Republican of material, fear not. Levi came out licans and the newer, Newt Gingrich as a congressman, secretary of defense, leadership in the Senate and the lib- with his own tell-all in September: types. and vice president, I felt his actions eral media; supported conservative Deer in the Headlights: My Life in Sarah In 1989, he became secretary of screamed statesman. His love and re- candidates through his political action Palin’s Crosshairs. defense. Finally, he was elected the spect for the military and this country committee, the Senate Conservatives Oh boy. 46th vice president of the United States. are also evident. I came away with a Fund; and supported the growing Tea — DAVID N. BASS CJ Because of his many political new respect for Dick Cheney, whose appointments and elected positions, sole aim was to serve his country. CJ OCTOBER 2011 | CAROLINA JOURNAL PAGE 23 Books & the Arts Book review Authors: Toxic Mix of Goverment Intervention Perverts Free Market • Kevin Dowd and Martin Hutchin- crisis since the Great Depression. people from turning lead into gold, heritance tax — have reduced the son, Alchemists of Loss: How Modern The “alchemists” in their story why don’t the laws of the marketplace number of families who oversee their Finance and Government Regulation are the architects and practitioners of preclude the financial alchemy that long-run business interests. The old Crashed the Financial System, New York: modern finance, which asserts among characterized most of this century’s partnerships (Dowd and Hutchinson’s Wiley, 2010, 422 pages, $27.95. other things that it’s possible to deter- first decade? The answer, our authors term), which kept the owners’ skin in mine the “correct” price of a share of make clear, is government interven- the game, have been supplanted by By Roger Garrison corporate stock; investors can quantify tion. A toxic mix of interventions (reg- limited-liability corporations, which Contributor risk and minimize their exposure to ulatory, fiscal, and monetary) pervert- effectively separate management and RALEIGH downturns by diversifying their port- ed the coordination of market forces by ownership. This critical separation, he subprime crisis and financial folios. Given the perverse regulatory removing considerations of long-run which left-leaning authors take to be meltdown have spawned dozens environment, buying systemic risk. The result characteristic of capitalism, is shown of books, some aimed at re-en- and selling derivatives was a systemic discoor- by the authors to be a consequence of Tshrining John Maynard Keynes, others can yield short-run dination whose increas- government systematically overriding at laying him to rest once more; some profits to hedge funds ing severity eventually the market-governed distribution of aimed at praising the Federal Reserve and other traders while turned systemic risk into income. Where we once had business for staving off another Great Depres- virtually guarantee- a crisis. families who were in it for the long run, sion, others at blaming it for treat- ing that in the longer The laws of the we now have financial managers and ing the economy to another cyclical run the owners of the marketplace, if allowed traders in derivatives markets who are episode. In the present reckoning, the underlying real assets to exert themselves, can in it for the short run, ultimately to the blame is assigned to government in- will suffer losses, if not preclude financial alche- detriment of the financial system and tervention (especially housing policy), bankruptcy. my (or at least put strict the real economy. fiscal irresponsibility, and interest-rate The careful reader limits on it). But govern- Alchemists of Loss provides a mul- manipulation, all of which gave scope will understand that ment intervention, in- tidimensional account of the nature for short-run profittaking based on speculation, whether cluding loan guarantees and magnitude of our long-brewing Modern Finance Theory. The incisive- on a long-term or short- and the too-big-to-fail economic woes. But the book provides ness of this well-integrated tale derives term basis, is an essen- doctrine, open a win- us with little hope for the future. The from a mutual leveraging of the co-au- tial and healthy feature dow in which short-run authors’ suggestions range from the thors’ perspectives and experiences. of a market economy. profit taking in financial radical (reinstating the gold standard Kevin Dowd offers a classical But, if anything, the au- markets is pitted against and eliminating the central bank) to liberal perspective on macroeconomic thors’ likening of speculation to alche- the long-run viability of financial insti- the not-so-radical (redrafting the Fed’s policy and specifically central bank my when the speculation is based on tutions. mandate to exclude concern about un- policy. Having written extensively on the techniques of modern finance and While the Federal Reserve is rec- employment) to the superficial (mov- free banking, he concludes that a thor- carried out in the context of a regulated ognized as an essential, accommodat- ing the Fed’s headquarters to St. Lou- ough decentralization of the banking economy understates the perversity. ing element in the most recent episode is). business is essential to enduring mac- On reflection, we can see that of boom and bust, Dowd and Hutchin- Even the casual reader will see roeconomic stability. Martin Hutchin- turning future long-run losses (of other son focus on the inherent perversity of that this range is from the virtually son is a seasoned investment banker people) into current short-run profits Modern Finance Theory in the context impossible to the not worth doing, turned financial journalist. His first- (for yourself) is triply more disruptive of the long-running efforts of the gov- with no promising midrange op- hand, nuts-and-bolts knowledge of than trying to turn lead into gold. We ernment to redistribute income and tion. The implicit conclusion is that modern financial markets undergirds can note (1) that unlike long-run loss- to encourage homeownership. Dating we should brace ourselves for more his broader perspective. Together, es, lead has a positive, though modest, from the 1930s, the government has booms and busts. CJ Dowd and Hutchinson provide an value; (2) that the lead belongs to you; used the tax code to redistribute in- enlightening account of the long-run and (3) that given the laws of nature, comes downward. trends and shortsighted policy actions you’re unable to turn the trick. Over the years, the income tax Roger Garrison is professor of eco- that culminated in the worst financial But if the laws of nature keep — and over the generations, the in- nomics at Auburn University. 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 OCTOBER 2011 | CAROLINA JOURNAL Opinion

COMMENTARY Committees Keep Legislators Busy

he 2011-12 General Assembly productivity and accountability in has completed its long session higher education. and held two special sessions. Other committees will exam- TSo far it has passed a fiscally ine the certificate of need process responsible and balanced two-year and other hospital issues, the state budget, streamlined regulations, health and pension plans, immigra- ended the cap on charter schools, tion policy, judicial consolidation, reformed workers’ compensation, and emergency preparedness and fixed forced annexation laws, re- disaster response. drawn congressional and legisla- House Speaker Thom Tillis has tive districts, and placed on the May said the 2012 session will expand 2012 ballot an amendment to the regulatory reform. The Joint Regula- state constitution banning same-sex tory Reform Committee should add marriage. new proposals to clean up Legislators are burdensome regulations EDITORIAL scheduled to return for that are stifling North another special session Carolina’s economy. Nov. 7 and to reconvene Even though Gov. for the short session in Bev Perdue vetoed the Perdue’s Fuzzy May 2012. Energy Jobs Act, the So what are they General Assembly con- doing in the meantime? tinues to look at ways to Jobs Math When not in regular ses- use our energy resources sion, the General Assem- better to spur economic ov. Bev Perdue and her liberal sonally adjusted) in September 2010 bly creates select commit- BECKI growth. The Department allies have made a series of versus the same month this year. tees to study issues that GRAY of Environment and Natu- outlandish claims about the Our guess? Some jobs have require in-depth examina- ral Resources has been Gimpact on public employment of the disappeared, though those losses will tion or look at matters the directed to study oil and Republican-led General Assembly’s overstate (perhaps dramatically) the legislature was unable to resolve gas exploration and the use of frack- budget. Their approach reveals a number of people who lost a primary in the session. The committees will ing to produce natural gas. DENR fundamental misunderstanding of the source of income. John Locke Foun- file reports and recommend new must offer legislative proposals by proper role of government. So long as dation Director of Education Studies legislation; sometimes the commit- May 1. The House Select Commit- this confusion continues, the Perdue Terry Stoops digs into the local educa- tees call for additional study. tee on Energy Independence will administration and the state’s liberal tion numbers on page 7 of this issue. A House committee is evaluat- look into fracking separately. It also establishment will continue pushing Higher ed may take a hit. But ing assets owned by the state, de- will study how the state can comply policies that will undermine a sustain- colleges and universities hire thou- termining what should be kept and with renewable energy require- able recovery. sands of part-time, “adjunct” instruc- tors, most of whom have full-time what should be sold. State agencies ments and how solar energy can or The current nonsense began employment in other fields of work manage more than 11,000 buildings. should be regulated. in April, when Perdue predicted the and moonlight as college teachers. In addition, the state owns more An omnibus elections bill was GOP’s proposed budget would reduce government jobs by 30,000 — 18,000 Campuses are eliminating a lot of than 3,000 parcels of property that stalled, but some provisions are get- those adjunct positions, and they’ll were left over when transportation ting a closer look: shortening early of them in education. At the time, she said, “We are about to see the largest show up as lost jobs in employment projects were completed. voting, eliminating Sunday voting, reports. But the people who held The committee will consider returning party labels to judicial public layoff in North Carolina and maybe in American history” if the those posts will continue drawing whether it makes sense to sell state- races, and ending taxpayer-funded paychecks elsewhere. owned piers and railroads. Its first election campaigns. Despite Per- budget became law. Other Democrats echoed that pitch. In August, the The governor and her progres- agenda item was whether the UNC due’s veto, requiring a photo to vote sive allies appear to argue that gov- Healthcare System should sell Rex is not dead. left-wing N.C. Budget & Tax Center predicted the budget would eliminate ernment is meant to be an employer of Healthcare. WakeMed has offered Several bills remain in confer- last (or perhaps first) resort when the nearly 20,000 public-sector jobs and an $750 million to purchase Rex. ence committee and could be con- economy goes sour. equal amount of private employment. The House Select Committee sidered later. They include an om- That philosophy is in stark While the budget became law on Education Reform will be look- nibus transportation bill, changes to contrast to the principles of liberty July 1, it’s far too soon to quantify its ing at ways to ensure that all chil- alcoholic beverage sales, and regu- and free government articulated in effect on government jobs. Why? Pub- dren come to school ready to learn, lations for waste kitchen grease. the North Carolina Constitution’s lic education — from pre-kindergarten and are prepared for either a job or Several constitutional amendments Declaration of Rights, which affirms through higher ed — is the largest em- higher education when they gradu- need additional work — limiting each person’s inalienable right to, life, ployer in state and local governments. ate from high school. To achieve eminent domain, restructuring the liberty, the fruits of his labor, and the Education accounts for 51 percent of those goals, major reform is needed. governance of the State Board of pursuit of happiness. local government employment and 45 The committee will look at teacher Education, and limiting terms for A bloated public sector, fi- percent of state jobs. And those em- tenure and pay, and how they com- legislative leadership. nanced with money extracted forc- ployers operated with skeleton crews pare to student performance; reduc- The General Assembly may ibly from North Carolinians, cannot during the summer hiatus. ing class size; why students drop not be in session, but its work hasn’t create wealth, generate commercial Our first solid look at the impact out; and the effectiveness of tests. stopped. CJ enterprise, or nurture a self-reliant of the budget on government jobs State funding, course offer- citizenry. So long as the governor and should emerge when the Employ- ings, and alternatives to current her allies view state government as ment Security Commission releases its one big employment agency, they will course delivery will be part of the Becki Gray is vice president for monthly employment report Oct. 21. fail to promote the policies that can study, as will ways to improve outreach at the John Locke Foundation. The key numbers to compare are state restore North Carolina’s economic vi- and local government jobs (not sea- tality. CJ OCTOBER 2011 | CAROLINA JOURNAL PAGE 25 Opinion

EDITORIALS COMMENTARY Which Model Is Best? What Would Texas a better example than California

here aren’t many places in the state economic growth came out in You Do? United States where the unem- April. Published by the National Bu- oing the right thing means slaves themselves. Pleasants had ployment rate is low. Most of reau of Economic Research, it looked making difficult choices. other options, however. He could AmericaT is hurting. at 11 different indexes that purport to American history is full of have attempted to take his slaves Still, the degree of pain varies. rank state business climates. examples.D Whether combatting the out of Virginia and free them else- North Carolina’s unemployment rate Some of the indexes are pub- impositions of the Stamp Act, the where. Or he could have attempted of 10.4 percent is higher than the na- lished by right-leaning institutions injustices of slavery, or the intru- to organize a broad-scale insurrec- tional average. California’s economy such as the National Center for Policy sions of eugenics, Americans have tion against the Virginia govern- is even worse, posting a 12.1 percent Analysis and the Tax Foundation. had to decide how best to respond ment. But neither option had much jobless rate in August. On the other They tend to focus on cost-of-doing- to tyrants in power — and some- prospect of success. hand, Texas is doing a bit better with business measures such as taxes, times to tyrants next door. Pleasants opted for a differ- 8.5 percent unemployment and better regulations, and energy prices. Far too many people have ent course. Recognizing that there recent performance on job creation Other indexes are published by and income growth. left-leaning outfits such as the Pro- made the wrong choice. was growing senti- Given Texas Gov. Rick Perry’s gressive Policy Institute and the Cor- Afraid to sacrifice their ment among influential entrance into the GOP presidential poration for Enterprise Development. reputations, their ambi- young Virginians such as field, we’re going to hear a great deal They tend to focus on productivity- tions, their property, or Thomas Jefferson to limit about the Texas model and how it related measures such as education their personal liberty, they the scope of slavery by at compares to, say, the California mod- level, infrastructure, and lifestyle have chosen to look the least prohibiting importa- el. Partisan sniping aside, there are factors. other way. tion of new slaves and important lessons to be found in the After carefully adjusting for Here in North legalizing manumission, comparison — although some North nonpolicy factors, the NBER re- Carolina, the state oper- Pleasants rewrote his Carolina politicians and activists may searchers found that the productivity ated a eugenics program will. He added a provi- not want to hear them. indexes preferred by the Left exhibit for decades that steril- sion that would free all of Now, you can’t draw those les- no relationship to state performance ized thousands of North JOHN his slaves if Virginia ever sons from scattered anecdotes, fleet- in employment, wages, or growth. It Carolinians against their HOOD legalized manumission. ing snapshots, or the press releases of is the cost-of-doing-business indexes will — on the grounds Pleasants died in headline-hungry politicians. Economic favored by the Right that mattered, that their mental or physi- 1771. His son Robert decisions reflect a host of factors. particularly in the areas of corporate cal infirmities made them unfit to Pleasants then became one of the To determine what policymakers taxation and welfare spending. reproduce. Rather than speak out founders of the abolition movement can do to improve a state’s economic Not surprisingly, Texas performs against this practice, many of the in Virginia. performance, you have to adjust for well in the cost-of-doing-business state’s most influential citizens ei- Right after the American them. You also have to examine a indexes. California ranks well in the ther ignored it or participated in it. Revolution, there was a burst of longer-enough time period to allow productivity indexes. Texas has made The 18th-century Virginia anti-slavery sentiment in Virginia. It for valid conclusions. the better choice. It’s clear which way planter and Quaker leader John didn’t last, unfortunately, but a 1782 The best study we’ve seen on North Carolina should lean. CJ Pleasants chose differently when law legalized the manumission of faced with his own era’s injustices. slaves for a time. Robert Pleasants As early as the 1760s, John Pleasants immediately liberated the slaves he and his son Robert had concluded had inherited from his father and Depoliticize Energy that the institution of slavery was built one of the first schools for free abhorrent to God and inconsistent blacks. The Gravel Hill community Political obstacles impede development with the principles of a free society. soon grew up around the school — he development and market- farmers would grow corn primar- They resolved to do something one of the first communities of free ing of energy sources ought to ily to feed people and animals. They about it. blacks in the South. be driven by economic realities wouldn’t grow corn to produce motor John and Robert Pleasants But other relatives challenged Tand market prices. Instead, politics fuel. were among the biggest slavehold- Robert’s actions. So Robert Pleas- and politicians intrude at virtually Even with all the intrusions and ers in Virginia’s Henrico County, ants went to court in the 1790s to every stage. The resulting morass subsidies, ethanol has proved to be a near Richmond. Their Curles Neck carry out his father’s wishes. His of regulations, penalties, subsidies, risky business. In September, Triangle Plantation was home to hundreds of attorney in the resulting case of and obstructions rarely makes logical Business Journal reported that North slaves. Although the Pleasants fam- Pleasants v. Pleasants was none other sense — and fails the test of providing Carolina’s first major venture into ily long had treated slaves kindly, than John Marshall, the future chief safe, reliable energy to consumers at a ethanol production, Clean Burn Fuels as they thought their Quaker faith justice of the U.S. Supreme Court. reasonable cost. of Raeford, has, uh, burned through demanded, it wasn’t until sometime They were successful. In 1799, Given environmental and na- more than $100 million in seed capital in the 1760s that they embraced the slaves at Curles Neck were freed tional-security considerations, among and is now basically kaput. abolition fully. and joined the growing Gravel Hill others, government must fashion and At the national level, renewable- At the time, it was illegal for community. implement energy policies. But they energy interests are reeling from the Virginians to manumit, or free, their John Pleasants was my sixth should be coherent, informed, and high-profile failure of Solyndra, a slaves. If John Pleasants simply great-grandfather. When faced with respectful of consumer choices. California solar company that re- had declared the workers at Curles injustice, he chose a middle course We are far removed from that ceived a half billion dollars in federal Neck free and sought to pay them, — to challenge it through moral ideal. Energy policy is all too often an loan guarantees and a personal visit he would have been subjected to suasion and the courts, rather than inside game, played by special inter- from President Obama. ests who manipulate legitimate con- If the energy market weren’t punishment and his workers to re- ignoring it or resorting to insurrec- cerns and public fears in an attempt to so heavily politicized, the failure of enslavement. tion. line their own pockets. any particular company would not Perhaps such an act of civil What would you do? CJ The ethanol industry, for exam- be a big deal. But the energy market disobedience might have advanced ple, surely would not exist in anything is heavily politicized, with too many the cause of abolition a bit, but at John Hood is president of the John like its current form without massive obstacles impeding the discovery, de- great cost — particularly to the Locke Foundation. government intrusions and subsidies. velopment, and use of low-cost energy If consumers were calling the shots, sources. CJ PAGE 26 OCTOBER 2011 | CAROLINA JOURNAL Opinion EDITORIAL BRIEFS Genetically Modified Crops

he Obama administration says that it wants to reduce regulations to encour- age innovation and to help stimulate the Teconomy. A good place to start would be to eliminate a proposed new Environmental Pro- tection Agency regulation requiring more data on genetically modified crops, writes Pennsyl- vania State University biology professor Nina V. Fedoroff in The Wall Street Journal. Farm production has grown dramatically over the past century and must continue to do so to feed a human population that continues to grow. Genetically modified crops offer a way to do this in a manner that is both more envi- ronmentally friendly and more productive than older methods. A crop with a gene added to im- prove resistance to certain insects, for example, may result in less pesticide use, reducing costs to farmers and less pesticide runoff in the envi- ronment, Federoff says. Three U.S. agencies, the EPA, the Depart- ment of Agriculture, and the Food and Drug Demographics and Economics Administration, currently regulate genetically s a child, when I was confused about some to have — a profound effect on federal government modified crops, resulting in a regulatory maze problem, my father would say, “Son, maybe finances and the continuing debate over the national that few companies can afford to run to bring you’re missing the forest because of the debt. new crops to market. trees.”A Of course, what he meant was I was too fo- Three big federal programs — Social Security, Such caution may have been justified ear- cused on the small pieces (the trees) of the problem Medicare, and Medicaid — are driven by our aging lier, but evidence shows that genetically modi- to see the answer in the big picture — the forest. population. Currently, Social Security is in good fi- fied crops are not a threat. The European Union The same could be said of many of today’s nancial shape, for now. It has a surplus in its invest- has spent $425 million over the past 25 years economic questions. Various groups debate causes ments. But the latest report from the Social Security studying genetically modified crops and has and solutions with no apparent agreement. Are they trustees states the surplus will be exhausted in 2036, found them to be as safe as crops modified by putting too much attention on the trees and not after which taxes collected for Social Security will more traditional methods. enough on the forest? cover only three-fourths of promised benefits. In “The three United States regulatory agen- A strong argument can be short, Social Security is expected to have a funding cies need to develop a single set of requirements made that the answer is yes, and problem down the road. and focus solely on the hazards — if any — the “forest” that often is being Medicare already has a funding problem. Ac- posed by new traits,” Federoff says. missed is demography. Demog- cording to the Social Security trustees, the program raphy is the study of human now spends more than it receives in fees. Addi- population and its characteris- tionally, Medicaid — which spends 26 percent of Solar panel subsidies tics. For current economic issues, its funds on the elderly — is supported totally by the important demographic fac- taxpayer funds. The price of solar panels continues to fall, tors are the numbers of people in Currently, Social Security, Medicare, and and a leading U.S. manufacturer is in bankrupt- various age ranges. MICHAEL Medicaid account for 43 percent of federal spend- cy. That hasn’t stopped the federal government Public expenditures on a ing. With the elderly population growing faster from handing out more loan guarantees to the per person basis generally are WALDEN than other age categories, the Congressional Budget industry, reports The Wall Street Journal. greatest for the young and the Office estimates that by 2035, these three programs The 2009 economic stimulus package in- old. Young people need to be educated, so public will account for over two-thirds (67 percent) of total cludes $25 billion in loans to renewable energy spending on K-12 schools, colleges, and universities federal spending. Social Security and Medicare and transmission projects. The funding authori- rises as the share of young people in the popula- alone will account for over 60 percent of the federal tion increases. At the other end of the age spectrum, budget. This is why most plans for addressing the zation expired on Sept. 30 with the Department older persons use more health care, and much of national debt and federal spending include some of Energy pushing hard to make as many loans this is provided by government spending. modification to these programs. as possible. It’s well known that we are an aging society. Another way in which the “forest” of our Solar panel manufacturers are a DOE In 1950 only 8 percent of the population was 65 and aging population could affect the economy is in favorite to receive loans. This comes despite older; by 1990 it had risen to 12.5 percent; and in investments. Elderly persons are more likely to weakness in the industry, with Chinese com- 2010 the rate was 13 percent. Further, with the large sell their stocks and convert them to cash for living petition driving down prices. Evergreen Solar “baby boom” generation moving into retirement, expenses than would younger persons. Such selling Inc. recently filed for bankruptcy protection and the elderly slice of our population will continue to puts downward pressure on stock prices. Indeed, closed a plant in Massachusetts that it built with grow, reaching 19 percent in 2030 and more than 20 new research from the Federal Reserve Bank of San the help of state and local subsidies. percent by 2050. Francisco has found an inverse relationship between Solyndra Inc., which received a $535 mil- At the same time, the percentage of our the prices of stocks and the aging population — that lion loan guarantee in 2009 to build a new fac- population which is young will change very little, is, stock prices fall as the relative size of the elderly tory in California, closed an older facility and slipping less than 1 percentage point in the next 20 population increases. laid off workers after demand for its products years. This means the growing proportion of our Demographic trends change only over long proved to be less than expected. elderly population will be accompanied by a similar periods. We, and the economy, will have to adapt to “The government really should not be reduced proportion of those in their peak working them. CJ years. picking technology bets,” said Jesse Pichel, a This, then, is the “forest” of our future: the clean-energy analyst at investment bank Jeffer- graying of our population and the increased num- Michael Walden is a Reynolds Distinguished Pro- ies & Co. “It’s fraught with potential failures.” CJ ber of elderly persons (usually retired) relative to fessor and Extension Economist at North Carolina State those working. This forest has — and will continue University. OCTOBER 2011 | CAROLINA JOURNAL PAGE 27 Opinion Why Well-To-Do Are Moving Left ne of the most interesting re- excess of $200,000 a year. of city life — there are always, after regulation because it often harms their cent developments in Ameri- Social and cultural politics most all, private schools for their kids and economic interests — although, like can voting behavior is the frequently are offered as an expla- clubs for their recreation. But they anyone else, most are perfectly willing moderateO attenuation of an extremely nation. The argument is that many understand it and its messy diversity. to accept subsidies and tax breaks. robust relationship between income wealthier Americans are pro-choice The various places of worship, the They serve customers, but they enter and party identification. Historically, and support gay rights, while many eclectic restaurants, and the cultural the relationship focused entirely on the more money you made, the more blue-collar workers are religious opportunities add to the richness of their profits. likely you were to vote Republican. It conservatives. Race and policies like life. Business is, of course, not mono- was as simple as affirmative action and school busing Professionals are advocates for lithic. Over the past couple of decades, that. also cut across economic divides. As others. Although this thinking ema- small business, largely through its In 1996, battles over issues like these naturally nates from hundreds of years of tradi- trade association the National Fed- for example, Bill capture headlines, they increasingly tion and culture, it is not solely an act eration of Independent Business, has Clinton won 59 shape voting decisions. of altruism. Doctors need patients, emerged as one of the most influential percent of the vote I believe there is another rea- lawyers need clients, and professors constituencies of the Republican Party. of those who made son why upper-income Americans need students to make a living. But it NFIB detests the kind of regu- less than $15,000 a increasingly have become a bit more does compel them to think in a more lation large corporations tolerate. year, 53 percent of Democratic. communal, and less individualis- Increases in minimum wage and en- vironmental standards advantage big those who made Forty years ago, there seemed tic, way. In other words, their work businesses because they can absorb between $15,000 to be few differences between busi- encourages them to think less like ANDY costs that might kill off smaller com- and $30,000, 48 ness owners and professionals. They Republicans, especially Republicans petitors. New health care insurance percent of those TAYLOR moved in the same social circles and in the 2000s. mandates hardly will affect multina- between $30,000 shared the same pragmatic but in- Professionals also like a dollop and $50,000, 47 tionals but may cripple many small trinsically conservative values. As the of government. Licensing require- businesses. NFIB cares less about percent of those between $50,000 country and Republican Party have ments keep competitors out of their and $75,000, 44 percent of all those liberal immigration laws because changed, however, the two groups fields and protect the investments of members tend not to employ many between $75,000 and $100,000, and have been pulled apart. time and money they have made in 38 percent of those who made over foreign workers. Many professionals, like doctors, their post-graduate educations. Scien- In other words, this business- $100,000. In 2000, George W. Bush’s lawyers, scientists, and professors, tists rely heavily on federal grants to professional split is a little more com- share of the vote in the same catego- oppose central tenets of the GOP’s do their research, and many individu- plex than first appears. Big business ries was 38 percent, 42 percent, 48 current philosophy. It is generally als come into doctors’ practices and types, the very rich, can be won over percent, 51 percent, 52 percent, and they who are voting for Democrats. lecture halls on the public’s dime. to the Democrats’ policies. They are 55 percent. Things then seemed to Because they provide services, profes- Business owners and manag- the genuine battleground for the par- change. The 2008 exit pollsters used sionals must be close to people, lead- ers, by contrast, are less concentrated. ties, not least because they have deep eight income categories in their data ing many to live in urban areas. They Urban living is costly, so many move pockets. CJ collection. Barack Obama won five have a greater appreciation for public away from large towns. Many of the of them; the bottom three (everyone facilities like mass transit, parks, and communities they live in are homog- Andy Taylor is a professor of under $50,000), but also the fifth from the arts, and they consume them. enous and often free of the kind of political science in the School of Public bottom ($75,000 to $100,000) and the They might not tolerate the crime, social problems government tries and International Affairs at N.C. State top category — or those who made in crowdedness, and inconveniences to solve. They dislike government University. Obama’s Troubles Clarify Opportunities ith a little more than a year as Wall Street. and he catapulted to the front of the der mandating HPV vaccinations for left before the next presi- The debt was $10.626 trillion on pack for the 2012 GOP nomination. minor girls only worsened his stand- dential election, our current the day that Mr. Obama was sworn By all accounts, Perry and his ing with the Republican faithful. commanderW in chief’s approval num- into office and now, according to the team had a great rollout. Clearly, Perry and his campaign bers have fallen to Treasury Department latest calcula- But then September brought team are in damage-control mode. In record lows. tion, is over $14.639 trillion. about three Republican presidential my opinion, Perry has very little time According Obama now has the dubious debates. To be blunt, those debates to make a course correction. to the nonpartisan distinction of piling on more debt than have been a disaster for Perry. Republicans are searching for Gallup research any other U.S. president in the history organization, as In all three, Perry appeared unfo- a candidate to defeat Barack Obama. of the Republic. cused, defensive, and ill-prepared. “Electability” is the operative word of of late August, Adding to the president’s prob- only 38 percent of His “my way or the highway the day. lems, in recent weeks, when matched attitude” did not go over well with The obvious beneficiary of the Americans ap- up against former Gov. Mitt Romney prove of President straw poll attendees and potential governor of Texas’ missteps has been of Massachusetts or current Texas Obama’s job per- primary voters. Romney, who has been well prepared, Gov. Rick Perry, Obama is in a statisti- formance, while MARC His repeated characterization of confident, and — yes — presidential. cal dead heat. 55 percent give his ROTTERMAN Social Security as a “Ponzi scheme” What seems clear is that unless This leads me to the Republican handling of the most certainly had an impact on the Perry has a dramatic change of for- office a thumbs- presidential primary. After sitting on a lead and em- recent GOP Florida straw poll, where tune, Mitt Romney is likely to be the down. he was beaten soundly by Tea Party Republican standard-bearer in 2012. CJ Many factors have influenced ploying a Rose Garden strategy for the majority of the summer, Romney favorite Herman Cain. this outcome, but put simply Obama’s Perry’s approval of charging in- Marc Rotterman worked on the na- economic policies have not worked. found himself in late August trailing state college tuition rates for children tional campaign of Reagan for President Priming the pump (spending in the polls, stung by Perry’s insurgent taxpayer dollars to “create jobs”) candidacy. of illegal immigrants in Texas, along in 1980, served on the presidential transi- while increasing the national debt Perry announced his run for the with his refusal to support completion tion team in 1980, worked in the Reagan to over $14 trillion has resulted in presidency from South Carolina on of a fence along the Mexican border, administration from 1981-84, is a senior Standard and Poor’s downgrading the day of the Iowa straw poll. His definitely have hastened his decline fellow at the John Locke Foundation, and a America’s triple-A bond rating and entrance into the race minimized Mi- with the GOP base. The way he has former member of the board of the Ameri- uncertainty on “Main Street” as well chele Bachmann’s straw poll victory, continued to defend his executive or- can Conservative Union. PAGE 28 OCTOBER 2011 | CAROLINA JOURNAL Parting Shot N.C. Aircraft Provider Association to Hold Final Fly-In (a CJ parody)

By Ace Wingman nance laws, he understood they have Aviation Correspondent been common practice for the past 10 LOUISBURG years. he North Carolina Aircraft Pro- “Our members have suspended viders Association is hosting a political flight activity due to state and weekend fly-in to commemorate federal investigations, but we don’t see Tthe third anniversary of Bev Perdue’s how you can do politics in North Caro- election as the state’s 73rd governor. lina without free flights,” he said. The three-day event, titled Wake County District Attorney “Planes and Politics,” will take place at Colon Willoughby has charged Flem- the Franklin County Airport near Lou- ing’s friend Robert Lee Caldwell, isburg beginning Friday, Nov. 4. The also of Morganton, with obstruction NCAPA is an association of aircraft of justice for his role in the Hickory- owners, pilots, and political donors in- to-Manteo flight. Caldwell allegedly volved with providing free flights for repaid Fleming with money from an- politicians during political campaigns. other party, hiding the true source of NCAPA president James Flem- funds. Willoughby has said he expects ing of Morganton told Carolina Journal to charge others soon. that the event would be the final gath- At last year’s NCAPA Fly-in, former Gov. Mike Easley (left) regales Gov. Bev Perdue State Board of Elections Chair- ering of the organization. “We under- (center) and Flight Provider McQueen Campbell (right) with tales of campaigning via man Larry Leake and the other four free aviation. (CJ spoof photo) stand that the investigation into the board members will attend the event governor’s aircraft provider program ley. Free aircraft rides will be offered in a Beechcraft King Air that was based and will be available to answer ques- may lead to problems for some of our to members of the public who are not in Hickory. tions about campaign finance laws re- members. We just wanted to have one politicians — in other words, persons “Our members have been respon- lated to the use of aircraft. more get-together to celebrate the rela- who currently do not hold elected of- sible in part for electing the winner in The event also will feature food tionship between campaigns and air- fice and are not running for office. the last three governors’ elections,” vendors, live music, and skydiving planes,” he said. Fleming, who is neither a pi- Fleming told CJ. He and 30 other asso- shows. A spokesman for Perdue said the lot nor an aircraft owner, said he was ciation members have provided more Other participants include the governor would not attend because tapped to head NCAPA after the as- than 200 free campaign-related flights U.S. Department of Justice, the N. C. she already had scheduled a series of sociation’s first president, McQueen to Easley and Perdue. The free flights State Bureau of Investigation, and the fundraising events outside the state Campbell, stepped down in 2010. allowed the political campaign organi- Wake County District Attorney’s of- that weekend. A barber from Morganton, Flem- zations to devote more money to other fice. The event is open to the public ing was offered a membership in the expenditures such as television adver- The event sponsors include The and will include at least 20 aircraft organization after he paid more than tising. News & Observer, Carolina Journal, and that have been used in the campaigns $3,000 for a Perdue flight from Chapel Fleming said that even though Raleigh television stations WRAL of Perdue and former Gov. Mike Eas- Hill to Manteo in 2007. That flight was the free flights violated campaign fi- and WTVD. CJ E.A. MORRIS FELLOWSHIP FOR EMERGING LEADERS

The E.A. Morris Fellowship is seeking principled, energetic applicants for the 2011 Fellowship class. Applications available online or at the John Locke Foundation. Please visit the E.A. Morris Fellowship Web site (www.EAMorrisFellows.org) for more information, including eligibility, program overview and application materials.

Eligibility Fellowship Timeline Fellowship Retreat Dates • Must be between the ages of 25 and 40. August 30, 2011: Applications available March 16-18, 2012 – Pinehurst, NC • Must be a resident of North Carolina and a U.S. citizen. September 15, 2011: Review of applications begins June 29-July 1, 2012 – Blowing Rock, NC • Must be willing to complete a special project requiring October 15, 2011: Finalist notifications begin;applications ac- October 19-21, 2012 – Coastal NC leadership and innovative thinking on a local level. cepted until finalist pool is filled, or until December 10, 2011 • Must be willing to attend all program events associated December 15, 2011: Finalist notifications close with the fellowship. February 4-5, 2012: 2012 Candidates’ Selection weekend • Must not be the spouse of a current or past Fellow.

www.EAMorrisFellows.org Contact Karen Y. Palasek | [email protected] or [email protected]

200 W. Morgan St., Ste 200 Raleigh, NC 27601 | 919-828-3876 | 1-866-553-4636