INSIDE THIS ISSUE: DEPARTMENTS Legislators 2 C A R O L I N A Education 7 may trade in Local Government 10 From Page 1 14 laptops for Higher Education 17 iPads and Books & the Arts 20 Opinion 24 tablets/6 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION January 2012 Vol. 21 No. 1 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org BLS: Perdue Violated Jobs Data Agreement Employment Security Commission of North Carolina tial until the embargo is lifted. unveiled Meantime, the Perdue adminis- N e w s R e l e a s e tration still claims that there’s nothing inappropriate about officials outside embargoed figures For More Information, Contact: For Immediate Release the LMI unit viewing embargoed in- Larry Parker/919.733.4329 August 19, 2011 formation early, hinting that the prac- before allowed date tice will continue. Public Sector Losses Lead to Net Jobs Decrease By Don Carrington Confidential data and Rick Henderson RALEIGH — North Carolina’s unemployment rate increased to 10.1 percent in July. The Confidential Information RALEIGH Protection and Statistical Efficiency ov. Bev Perdue violated a coop- While the private sector gained 6,900 jobs, state government jobs decreased by 300 and local government jobs Act of 2002 protects the privacy of data erative agreement between the decreased by 11,800. Employment data indicates that a majority of the local government jobs were in education, including teachers. provided to the federal government for federal Bureau of Labor Sta- statistical purposes. Violating it carries tisticsG and the state of North Carolina “Job growth in North Carolina’s private sector was offset by declines in both state and local government employ- a fine of up to $250,000, up to five years Aug. 18 when she told the Rotary Club ment,” said ESC Chairman Lynn R. Holmes. “Gov. Perdue’s focus on job creation and assisting North Carolina’s in prison, or both. A BLS Commission- of Asheville that the state lost 11,000 workers with getting back to work continue to be our priorities. We continue our collaborative efforts with our economic and workforce partners in assisting both job seekers and employers.” er’s Order from 2006 (No. 01-06) says public-sector jobs “confidential information includes … in July. TheSeasonally August adjusted jobs report,total nonfarm which industry Gov. employment, Beverly asPerdue gathered announced through the monthly prior establishment to its authorized survey pre-release economic data” and “em- release time, contains language insisted upon by Perdue’s communications staff to The job loss decreased by 4,100 to 3,868,100 in July. The largest over-the-month employment increase occurred in professional bargoed data,” including “the Employ- figures were sup- showand business the governor services (+3,600). in a positive Government light. employment declined by 11,000 jobs; including the loss of 11,800 jobs in local government. Private sector jobs increased by 6,900 over the month and 34,700 over the year. ment Situation” — that is, the monthly posed to be pro- known as the Employment Security It’s unclear whether Perdue’s er- Seasonally Adjusted Unemployment Rates Since July 2010 employment reports issued by BLS tected by an em- Commission), reported the violation ror not only violated the cooperative and state employment agencies. bargo until 10 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July to the BLS regional2010 2010office2010 in2010 Atlanta2010 2010af- 2011agreement2011 2011 BLS2011 enters2011 2011 with2011 DES and its Data integrity guidelines from a.m. Aug. 19; she ter seeing media reports of the Perdue counterparts in every other state but BLS say that data collected or main- made her remarks N.C. 10.3 10.1 10.0 9.9 9.8 9.8 9.8 9.8 9.7 9.7 9.7 9.9 10.1 Gov. Beverly comments. also broke a federal law protecting the tained by BLS under a pledge of con- roughly 12 hours Perdue BLSU.S. regional9.5 9.6 director9.6 9.7 9.8 Janet9.4 9.0confidentiality8.9 8.8 9.0 9.1 of9.2 employment9.1 data. fidentiality “will be accessible only to before the embar- Rankin in Atlanta confirmed to Caro- Rankin would not say if leaking infor- authorized persons. Pre-release eco- go was lifted. lina Journal that a violation**2010 occurred. Numbers Have Beenmation Benchmarked** that’s protected by an embargo nomic series data prepared for release According to BLS officials, Betty SheThe followednumber of people up unemployed with interviews increased by 7,620 of (seasonallycarries adjusted), any legal to 454,989. consequences, Since this time last though year, to the public will not be disclosed or McGrath, director of the Labor Market ESCthe number officials, of people including unemployed has director decreased by 8,081.Lynn BLS The state regulations unemployment spelling rate in July out2010 was what 10.3 is Information Division for the state’s Di- Holmes.percent. Rankin did not say if any fur- covered by the law suggest that em- vision of Employment Security (then therThe actionnext unemployment was taken. update is scheduled for Friday, Augustbargoed 26, when data the county is considered unemployment rates confiden for the - Continued as “BLS,” Page 14 month of July will be released.

— More — QuestionsThis information may Remainbe accessed on the ESC’s World Wide AboutWeb page, at http://www.ncesc.com Perdue Flight Operation Employment Security Commission of North Carolina Larry Parker, Acting PIO Director PAID Post Office Box 25903● Raleigh, N.C. 27611-5903 919.733.4329 and the lieutenant governor’s office. RALEIGH, NC U.S. POSTAGE According to the elections board

PERMIT NO. 1766 Several involved NONPROFIT ORG. report, three people should have knowledge of the operation of the air- in providing aircraft craft provider program: Stubbs, former Perdue campaign finance director Pe- escape prosecution ter Reichard, and Perdue. None has been charged for those By Don Carrington activities, though in December Reich- Executive Editor ard accepted a felony plea for using a Gov. Bev Perdue has a long association RALEIGH business he owns as a conduit for il- with Trawick “Buzzy” Stubbs, indicted legal contributions from a maxed-out ew Bern attorney Trawick recently in connection to irregularities in donor to the 2008 Perdue campaign. “Buzzy” Stubbs faces a felony the use of airplanes by the 2008 Perdue Perdue always has insisted she indictment for using his law campaign. (CJ photo by Don Carrington) did not know about the unreported firmN to hide payments for flights he charged Stubbs for his alleged role in flights when they occurred. provided to then-Lt. Gov. Bev Perdue’s a much larger flying operation for Per- Wake County District Attorney 2008 campaign for governor. Stubbs due: helping create what a State Board Colon Willoughby, who is in charge of has not disputed the facts underlying of Elections investigation called a list of the charges. “aircraft providers” to arrange flights The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 Meantime, prosecutors have not for the Perdue campaign committee Continued as “Questions,” Page 15 PAGE 2 JANUARY 2012 | CAROLINA JOURNAL North Carolina C a r o l i n a UNC-CH Profit Centers Could Be In IRS Crosshairs

By Dan E. Way also were to focus on “controlled taxable subsidiaries and Journal Contributor related exempt organizations and their relationship to the Rick Henderson CHAPEL HILL university.” Managing Editor he Internal Revenue Service is conducting a major au- In an interim report based on the questionnaires sub- dit of the University of North Carolina at Chapel Hill mitted by colleges and universities, the IRS said, “The au- Don Carrington and other higher education institutions. While neither dits are designed to focus principally on unrelated business Executive Editor universityT nor IRS officials will confirm any details, federal taxable income” — revenue generated from sources outside David N. Bass, Sara Burrows auditors most likely are scrutinizing executive compensa- the tax-exempt core purpose of an entity. Mitch Kokai, Michael Lowrey tion practices; determining whether the university is fully “We see oftentimes organizations filing who say, ‘Yes, Associate Editors paying on all sources of taxable income at facilities such as we have unrelated-business income.’ But when they file an the Carolina Inn, Finley Golf Course, and Rizzo Conference unrelated business tax form with us, lo and behold, they Chad Adams, Jana Benscoter Center; and examining the university’s investment funds never have to pay any tax,” the Chronicle of Philanthropy Kristy Bailey, Kristen Blair and procedures. quoted the IRS’ Lerner as saying. Roy Cordato, Becki Gray The audits may highlight a concern that entrepreneurs “If UNC is being audited right now, you’re talking a Sam A. Hieb, Lindalyn Kakadelis have aired about universities for decades: the advantage couple of years before there’s a finding,” said Marc Azar, a George Leef, Karen McMahan public and private universities can gain partner in the Atlanta-based Smith and Donna Martinez, Karen Palasek from owning commercial operations that Howard tax group. He is an expert in the Marc Rotterman, Michael Sanera Tara Servatius, George Stephens compete with nearby private merchants nonprofit arena and on IRS Form 990. Michael Walden, Dan Way and service providers. UNC will be cautious and thor- Karen Welsh, Hal Young UNC-Chapel Hill is one of more ough in the process because “whatever John Calvin Young than 30 colleges and universities culled they agree to will be precedent for future Contributors by the IRS from a pool of 400 public and years,” Azar said. private colleges and universities offering Unrelated business income from four-year degrees or higher that were re- corporate banquets, concerts and oth- Ziyi Mai quested to complete questionnaires for er events, advertising, endowments, Daniel Simpson the tax year ending in 2006. foreign investments, stadiums, hedge Alissa Whately These compliance checks could re- funds, and how employees are catego- Interns sult in more regulation of colleges and rized all could be under the microscope, universities, tax experts say; they also he said. Published by could clarify existing reporting guide- “You keep pushing this stuff a little The John Locke Foundation lines. The professionals say whatever farther,” Azar said of how universities 200 W. Morgan St., # 200 policy actions ensue are likely to filter view new ways of generating income Raleigh, N.C. 27601 down to other tax-exempt organizations through their tax-exempt status. “We’re (919) 828-3876 • Fax: 821-5117 and associations outside of higher educa- always thinking about raising revenue www.JohnLocke.org tion. but not thinking about tax issues,” he The IRS is not divulging the names said. Jon Ham of the colleges and universities under That paradigm is “like speeding at Vice President & Publisher audit. Lois Lerner, the IRS director of tax-exempt organi- 85 when you know it’s 55. No one’s been getting tickets, so John Hood zations overseeing the initiative, did not return numerous no one’s going 55,” Azar said. Those practices will continue Chairman & President voicemail messages. Mark Hanson, an IRS spokesman for “until the IRS says, ‘No, you can’t do that,’ or Congress says, North and South Carolina, declined several requests to dis- ‘No, you can’t do that.’” Bruce Babcock, Herb Berkowitz cuss the UNC situation. Azar said, “When they’re all done with this they are Charlie Carter, Jim Fulghum However, UNC officials acknowledged that North going to give us statistics” in a final report lumping together Chuck Fuller, Bill Graham Carolina’s flagship university is one of the more than 30 in- findings of all the individual audits. Specific findings at in- Robert Luddy, Assad Meymandi stitutions the IRS acknowledges are being audited. As with dividual campuses may be impossible to determine. Baker A. Mitchell Jr., Carl Mumpower, the still-unresolved NCAA probe of the UNC football team, He believes whatever policy changes are wrought for J. Arthur Pope, Thomas A. Roberg, UNC officials won’t say much about the IRS compliance colleges and universities are “eventually going to permeate David Stover, J.M Bryan Taylor, check and are releasing few records. down to other entities.” Andy Wells “I can confirm the university’s response to the audit “Generally, what we’re anticipating is getting a little Board of Directors notice is still in process. University officials decline further clearer guidance” from the final IRS report, said James P. Carolina Journal is comment while the response to the audit is pending,” Mike Sweeney, national technical leader for the exempt organiza- a monthly journal of news, McFarland, director of university communications, told tion tax practice of McGladrey and Pullen in Washington, analysis, and commentary on Carolina Journal. D.C. state and local government McFarland provided IRS 990-T tax return forms for the Sweeney said his firm already is using markers from and public policy issues in tax years ending in June 2007 and June 2010, and the official an IRS interim report based on completed questionnaires North Carolina. audit notice that UNC received from Michael A. Bieloski, from colleges and universities to assist its clients, including ©2012 by The John Locke Foundation IRS revenue agent and team coordinator. other tax-exempt organizations. Inc. All opinions expressed in bylined articles “That’s all the information I have to provide,” McFar- From the interim report, the firm learned some entities are those of the authors and do not necessarily land said. were not seeking advice of outside counsel and some were reflect the views of the editors of CJ or the staff and board of the John Locke Foundation. The tax return forms show UNC claimed $13,667,445 recording no unrelated business activity at all, “which gen- Material published herein may be reprinted as in gross unrelated business income profit for the year end- erally is looked upon as being unusual by the IRS,” he said. long as appropriate credit is given. Submis- ing June 2007, with expense deductions of $12,594,668, ren- Lisa Snell, director of education at the free-market sions and letters are welcome and should be dering $1,314,545 taxable. Taxes on that amount were deter- Reason Foundation, has concerns about the IRS initiative. directed to the editor. mined to be $446,945. “Generally, I think that anything that raises taxes on CJ readers wanting more information The 2010 form listed $12,196,276 in gross unrelated a select group is bad,” Snell said. “But on the other hand, if between monthly issues can call 919-828- business income, $12,211,234 in total deductions, and mi- universities are wanting to compete in the commercial sec- 3876 and ask for Carolina Journal Weekly nus-$14,958 in taxable unrelated business income. tor and they have a government-sanctioned, unfair advan- Report, delivered each weekend by e-mail, In a letter dated Oct. 7, 2009, to Richard L. Mann, UNC tage over other businesses” in the form of tax exemptions, or visit CarolinaJournal.com for news, links, vice chancellor for finance and administration, Bieloski said tax policy reforms may be necessary. and exclusive content updated each weekday. the examination of UNC records “will include the primary “Regular taxpayers are contributing to the largess of Those interested in education, higher educa- tion, or local government should also ask to return” for the year ended June 30, 2008, “as well as relat- those universities through all kinds of things,” she said, receive weekly e-letters covering these issues. ed returns” that may include employee plans returns, ex- while the universities are “competing with the people who cise tax returns, and employment tax returns. Discussions are funding them, and that seems problematic to me.” CJ JANUARY 2012 | CAROLINA JOURNAL PAGE 3 North Carolina N.C. Council of State Races Ripe For Brisk Competition in 2012 By David N. Bass of State — a Democrat On the North Carolina ballot, voters culture commissioner by a whisker, Associate Editor and candidate for U.S. Senate in 2010 may select “straight party” for Repub- winning by 2,287 votes out of 3.3 mil- RALEIGH — has aligned herself with the Occupy lican, Democratic, or Libertarian can- lion cast. Troxler won re-election hand- t’s a truism of Tar Heel politics: Few Wall Street movement. didates for all state-level offices. Votes ily in 2008. North Carolinians outside the Ra- Others take a more quiet ap- for president and vice president aren’t The contest for superintendent of leigh Beltline keep tabs on the go- proach. Despite a high-profile battle included. public instruction also was a squeaker ings-onI in the General Assembly. with Gov. Bev Perdue over who heads In 2008, nearly 2.2 million voters in 2004. Atkinson beat Republican Bill Half of voters don’t know which the Department of Public Instruction, opted for the straight ticket out of 4.3 Fletcher by 8,535 out of 3.3 million party controls the legislative process, state schools superintendent June At- million ballots cast. votes cast. The schools superintendent and most can’t name the speaker of the kinson seldom engages in political “What we know from exit polls race was the only council contest that House. And don’t even bother asking back-and-forth with Republicans, and in North Carolina didn’t have an incumbent. (For more what president pro tem of the Senate she’s garnered is that self-identi- information on the superintendent’s means. criticism from fel- fied Democrats or race in 2012, see page 9). But voters also are ignorant of the low Democrats for Low-key offices Republicans will Council of State, a nine-member execu- it. cast their vote 90 Polling doldrums tive governing body that includes the Political ob- nevertheless percent of the time lieutenant governor, attorney general, servers say that for their party,” One hurdle for Council of State and state treasurer. Even though these 2012 will be rife getting lots Bitzer said, “so candidates is gaining name recogni- executive-level officers direct policy with anti-incum- we would expect tion. Polling data show that even long- and regulation in a number of areas, bency sentiment, of attention those voters to term incumbents face an uphill climb polling indicates that half to three- feeding the entry in gaining voters’ attention. fourths of voters don’t know who of challengers. take the ‘easy way’ from candidates out of the voting A Civitas Institute survey in Oc- holds these posts. “There’s no tober showed that three-fourths of Candidates don’t share that apa- love lost for in- booth and vote straight ticket.” likely voters in 2012 never had heard thy, though. Contenders for the nine cumbents so far, of Insurance Commissioner Wayne elected offices already are lining up to and if I were a current officeholder, I’d Combative past Goodwin, Treasurer Janet Cowell, or lock horns in 2012, and several races be running scared, if I was running at Wood. All three are Democrats. are ripe for competition. all,” said Michael Bitzer, associate pro- Council of State races might fly The same survey showed that At- fessor of politics and history at Cataw- under the radar of most voters, but torney General and Mar- Two dozen candidates ba College in Salisbury. that doesn’t mean the match-ups aren’t shall, both Democrats, are the two most The filing deadline for next Jonathan Kappler, research direc- competitive. In 2008, seven of the nine tor at the pro-business N.C. FreeEnter- offices were won with less than 55 per- popular council members. Nineteen year’s primary is in late February, but percent had a “somewhat” favorable two dozen candidates either have an- prise Foundation, said that the trickle- cent of the vote, and four of the nine down impact of up-ballot races, such view of Cooper, compared to 6 percent nounced their candidacies or expressed were won with 52 percent or less. as for governor and president, is worth who had a “somewhat” or “very” un- interest in running. Only three offices The election for commissioner of watching. favorable opinion (45 percent never — those of attorney general, treasurer, labor was the closest in 2008. Incum- “Because most of the members had heard of him). Marshall’s favor- and state auditor — didn’t have at least bent Republican bested of the Council of State are not well- Democratic challenger Mary Fant Don- ability-unfavorability divide was 18 two candidates by late December. known by the public, general politi- Two Republicans and seven nan by 49,653 votes out of over 4 mil- percent compared to 9 percent (40 per- cal dynamics and party affiliation can lion cast. cent never had heard of her). Democrats make up the current Coun- play a heightened role in voters’ se- Les Merritt, also a Republican, “At this point, all eyes are on the cil of State. Aside from the lieutenant lections in these races,” Kappler said. governor, who is limited to two con- barely won election as auditor in 2004. gubernatorial rematch,” Bitzer said, “This will be especially true in 2012, “and I’m afraid, with the presidential secutive terms, the remaining mem- when North Carolina will undoubt- Out of 3.3 million votes cast, Merritt battle shaping up in this state as well, bers of the council may be elected for edly be one of the most critical states won over Democrat Ralph Campbell an unlimited number of terms. in the presidential contest and feature by 28,715 votes. Merritt lost to Demo- most of the attention will be focused Some council members take a one of the hottest gubernatorial races.” crat in 2008. on those two races in the state — and more prominent role in the public’s One prominent factor in Council Also in 2004, Republican Steve to the detriment of lower-ballot offices, eye than others. For instance, Secretary of State races is the straight-party vote. Troxler secured his first term as agri- like the Council of State positions.” CJ Share your CJ

Finished reading all the great articles in this month’s Carolina Jour- nal? Don’t just throw it in the recycling bin, pass it along to a friend or neighbor, and ask them to do the same. Thanks. PAGE 4 JANUARY 2012 | CAROLINA JOURNAL North Carolina State Briefs Petition Only Chance to Resurrect MJ Bill JLF: Only pay survivors By Dan Way “I think the importance of a public hearing before the The Governor’s Eugenics Contributor General Assembly would be to stress the medical dimen- Compensation Task Force should RALEIGH sions of the issue,” Luebke said. “I think that people do run urge the General Assembly to pro- vide payments only to the surviv- dvocates of legalizing marijuana for treatment of se- away from the issue because of the ‘M’ word, and they re- ing victims of the state’s eugenics rious medical conditions hope a rare legislative ma- ally don’t know the ways in which so many people have, in program and not to descendants of neuver could resurrect legislation buried in a House fact, benefited from the medical uses.” those who were sterilized. That’s committeeA in time for the upcoming short session. Luebke is in the unusual situation of being a co-spon- the recommendation of Daren State Rep. Kelly Alexander, D-Mecklenburg, has filed sor of H.B. 577, sitting on the Rules Committee where it has Bakst, director of legal and regu- a discharge petition for House Bill 577, the Medical Canna- been bottled up, and having signed the discharge petition latory studies at the John Locke bis Act. If at least 61 House members sign the petition, the to release it. Foundation. measure would bypass the committee structure and come “Legislators respond to the at-home folks, and 7,500 Bakst says any attempt to up for a floor vote by the full House. This could put North makes a good case for why it’s worth being heard,” Luebke compensate both descendants Carolina in position to be the 17th state to authorize use of said of the online citizen petition. Even so, he doubted the and living victims would restrict medical marijuana. petition alone would change many lawmakers’ minds. “My the amount of compensation the To rally House members to sign the document, Alex- feeling is it’s unlikely to get the sufficient number of mem- victims might receive. Moreover, ander created an online citizen petition with a goal of 7,500 bers to vote for the discharge petition.” such a move would encourage at- residents calling on state representatives to sign the dis- He suggests another option. tempts to exact reparations for the charge petition. By mid-December, the goal had been met, “I think the larger issue on this or for other topics descendants of slaves or other peo- with more than 7,900 signatures where there’s a lot of controver- ple who were not themselves vic- collected. sy, it’s my experience that public tims of government policies that Even with the online sup- hearings without legislative votes later were deemed immoral. port, the bill faces extremely long are really the way to go,” he said. “When compensating actual odds. It was introduced early in “The people who feel this is an victims,” Bakst said, “the injury this year’s legislative session, but important idea and important for is clear, and the harm is concrete. “was referred over to the Rules their health would have a chance When compensating descendants, Committee to quietly wither to speak on the record about it.” any injury is speculative at best.” away,” Alexander said. Moreover, Luebke said such an ap- In this year’s legislative ses- a lack of support from the official proach has been used in the past, sion, House Bill 70 would have medical community makes the notably several years ago on the provided $20,000 in compensa- job of selling the measure to skep- first go-round of annexation re- tion to victims. The task force has considered recommending com- tical legislators more difficult. form legislation that eventually pensation ranging from $20,000 Rules Committee Chairman passed this year as support co- to $50,000 for each living victim. Stephen LaRoque, R-Lenoir, did alesced. Victims also could receive supple- not allow the bill to come up for Alexander sees support for mental benefits, such as mental committee debate or a vote, ef- medical marijuana growing. The health services. fectively killing the measure. La- number of signatures affixed to Roque said he is not swayed by the online petition and the loca- Alexander’s discharge petition or tions across the state they repre- PPP: Faison unpopular online signature drive. “He’s cer- sent “tells me that attitudes and tainly able to do that,” LaRoque everything out there is changing,” The Democratic polling firm Public Policy Polling finds said of the petition effort. But “at he said. that N.C. Rep. , D-Or- this point, I don’t think it will be In North Carolina, medical ange, is even less popular among debated,” in part because of the patients and their families will Democrats than is Gov. Bev Per- stigma attached to any form of legalized marijuana. admit to buying from drug dealers to supply their mari- due. Faison, who is serving his “There’s a lack of support from the medical commu- juana for pain relief, Alexander said. “What we’re trying to fourth term in the House, re- nity, and I think that’s something that they need to get,” La- do is get a regime in place where medical cannabis would cently encouraged Perdue to pass Roque said. “The people who would be prescribing it need be highly regulated; you couldn’t get it without a prescrip- on running for a second term, to be supporting it. And I think you’ve got to have … some tion,” Alexander said. though he’s said he wouldn’t clinical proof that it does what they say it does.” “You could only get it from regulated outlets, and it challenge North Carolina’s first The North Carolina Medical Society “has no position could only be bought from regulated growers, so it would female governor in a primary. on this legislation,” said Mike Edwards, director of media be a completely regulated and taxed environment,” Alexan- “Faison’s recent statements relations and public affairs for the society. Edwards said he der said. appear to have antagonized is not aware of any formal studies of medical marijuana con- “Fiscal research has given us a lowball estimate of Democrats in the state,” PPP ducted by the society. somewhere between $40 million and $50 million in revenue said in a release. “Only 7 percent The U.S. Food and Drug Administration allows use potential” from annual taxes, Alexander said. The state Ag- have a positive opinion of him to of THC, the active ingredient in marijuana, for relieving riculture Department would regulate growers, “and a num- 31 percent with an unfavorable chronic pain and spasticity, stimulating appetite in patients ber of people believe that would be a boost potentially to one. And Perdue would crush with AIDS or who have undergone chemotherapy, treating small farmers who might want to diversify.” him in a primary, leading 55-23.” glaucoma, and treating nausea caused by chemotherapy in Perry Parks, president of The North Carolina Canna- In the gubernatorial horse cancer patients. bis Patients Network, whose 1,000 members include doc- race between Perdue and former Many state residents who signed Alexander’s online tors, said his advocacy group is “doing everything we can to Charlotte mayor Pat McCrory, drive added comments swearing by the medicinal benefits get the word out” about medical marijuana and the online Perdue trails McCrory 50 per- of marijuana. petition. cent to 40 percent. Thirty-seven “Marijuana really helps me with my depressive bipo- A former highly decorated helicopter pilot who spent percent of voters approve of Per- lar disorder and ADHD; it’s amazing how much it does,” 30 months in Vietnam, Parks smokes marijuana to relieve due’s job performance, compared wrote Leo Howerton of Raleigh. pain from his severe degenerative disc disorder and arthri- to 48 percent who disapprove. “I am a senior citizen who suffers from several diseas- tis. He said many veterans suffer pain and could benefit A majority of North Caro- es that cause inflammation and am in pain constantly. Mari- from medical marijuana. linians plan to vote in favor of a marriage amendment, PPP found: juana eases my pain and doesn’t have the bad side effects of “We are demanding our right to use marijuana instead “[Fifty-eight percent] say they’ll the pharmaceuticals,” wrote Alice Cahoon of Greensboro. of having to use narcotics,” and for uniform treatment at all vote for the amendment to 32 per- It was an outpouring of similar statements that per- Veterans Administration hospitals, Parks said. cent who are opposed.” CJ suaded state Rep. Paul Luebke, D-Durham, that legalization Patients at VA hospitals in states that allow use of med- of medical marijuana deserves consideration. ical marijuana are provided with the substance, he said. CJ JANUARY 2012 | CAROLINA JOURNAL PAGE 5 North Carolina Red Oak Won’t Benefit From N.C.’s New Microbrewery Law

By Sara Burrows reaches that 25,000-barrel plateau, the Sierra Nevada and New Belgium were that they’re not sold too cheaply. Associate Editor law says he’ll have to hire a wholesaler able to grow beyond the capacity of “Prohibition didn’t work,” Kent WHITSETT to distribute his beer — every drop of their original locations is that their said. “It just led to organized crime. n a special session the week after it. home states allowed them to self-dis- So they legalized alcohol, but they did Thanksgiving, the General Assem- Sherrill owns 15 trucks from tribute, no matter how many barrels it in a way that states have the ability bly tweaked North Carolina’s li- which employees deliver his Bavarian- they produced. to control it, and wholesalers are a key Iquor laws to allow midsize and large style lagers to nearly 600 bars from The reason the distributors don’t part of the solution.” breweries to offer tastings and sell Raleigh to Charlotte. He’s been self- want the law changed in North Caro- Rep. Tim Moffitt, R-Buncombe, their beer on-site. Previously only distributing for 21 years, partly to save lina is “they want their cut off the top,” who sponsored the bill that could en- small breweries, producing fewer than money and partly he said. tice Sierra Nevada and New Belgium 25,000 barrels a year, were allowed to because he doesn’t Tim Kent, to brew in North Carolina, said he’s do so. trust anyone else executive direc- not ready to lift the 25,000-barrel cap The law was changed as an at- with his product. tor of the North on self-distribution. tempt to attract two midsize breweries “Red Oak is Carolina Beer “When Prohibition ended, our — Sierra Nevada and New Belgium — unfiltered, unpas- and Wine Whole- state elected to regulate alcohol in a to the state. The California- and Colo- teurized, and has salers Associa- three-tiered system — production, rado-based companies are interested no preservatives,” tion, argues that wholesale or distribution, and retail,” in creating hubs on the East Coast. But Sherrill said. “It the purpose of Moffitt said. “You could not be a tied neither will come to North Carolina needs to be refrig- distributors (or system, meaning you can’t do all three. unless the state allows them to sample erated at all times.” wholesalers) is to I guess it was a mechanism to prevent and sell their beer at the brewery sites. He fears that protect the public. [monopoly].” The new law may persuade out- if the beer’s not handled right and goes “One of the reasons we had Pro- But when the General Assembly of-state breweries to move their opera- bad, his reputation, not the distribu- hibition was because pre-1919, you had realized microbreweries were having tions to North Carolina. But one native tors’, would be tarnished. what were called tied houses,” Kent a hard time competing under this sys- brewer who’s tried for more than a Sherrill said he wants to pick said. “The brewer, Anheuser-Busch or tem, Moffitt said, they carved out an decade to expand his business got no and choose when he uses a distribu- Schlitz, basically bought off the bars. exception, allowing craft brewers to help from the law. Bill Sherrill’s Red tor. When delivering to Raleigh or They said, if you sell only our beer, produce, distribute, and do retail sales. Oak Brewery produces 17,000 barrels Charlotte or Greensboro, he can do it we’ll give it to you at a very low price. “It’s allowed microbreweries to per year in the Guilford County com- cheaper himself. But in less populated That resulted in unusually low-priced thrive,” he said. “Right at this moment, munity of Whitsett. And while Sherrill areas at the eastern and western edges alcohol, overconsumption, and a lot I’m not interested in removing the dis- appreciates the fact that he can contin- of the state, he said, “it doesn’t make of drunks and a lot of women whose tribution limitation of 25,000 barrels.” ue offering tastings and retail sales af- sense for us to drive all over the place men were alcoholics and not coming But Moffitt said he’d be will- ter he crosses the 25,000-barrel thresh- with one product. ... So I would use home.” ing to reconsider his position after a old, he doesn’t plan to cross it anytime distributors for that.” Wholesalers, he said, ensure that more thorough examination of tied soon. That’s because as soon as he Sherrill said part of the reason a variety of beers are sold at bars and versus tiered systems. CJ PAGE 6 JANUARY 2012 | CAROLINA JOURNAL North Carolina State Lawmakers May Get Tablets To Replace Outdated Laptops not available in their paper form until committee meetings begin, and they’re The move is expected not online until a day or two later, if at all. to save money and “When a document becomes le- gal for public view — which means increase transparency as soon as it’s passed out to members of the General Assembly — instead of By Sara Burrows showing up physically to a meeting Associate Editor and waiting for a copy to be passed out RALEIGH by the sergeant at arms, anywhere in t’s time for North Carolina legis- the world people can pull up the docu- lators to get new computers. This ment online,” Brock said. year, instead of laptops, they might Brock says the committee is trying Iget tablets. to push that deadline up, so the docu- The lawmakers who will select ments are available for public view 24 the tablets haven’t decided yet whether hours before the meeting starts. to pick iPads, Galaxy Tabs, or Xooms, “When I was in the minority as but whichever brand they settle on, a Republican, I didn’t like getting a tablet computers are supposed to save document still hot from the printing the state money and give the public press and voting on it before the pa- better access to legislative documents per cooled down,” Brock said. “There and other materials. could be hundreds of pages to a bill.” Members of the General Assem- bly get new laptops approximately Real-time availability every four years. This year, the Joint Additionally, any bill amend- There remains the question of what kind of tablets to buy for lawmakers: Apple iPads, Legislative Oversight Committee on Galaxy Tabs, or Xooms. A committee is deciding. (CJ file photo) Information Technology is considering ments legislators submitted would be the less-expensive option of tablets. available online in real time. “The governor campaigned on hav- if we’re working on or voting on a bill “If I submitted an amendment ing an open book. Well, the legislature that we want our constituents’ feed- Cost less to a bill to the committee, it would be is keeping the governor’s campaign back on.” available to the public as soon as I hit promise. We’re opening the whole “I have a lot of people send mes- Ranging from $400 to $500, tab- send,” Brock said. “Now I would have lets cost significantly less than lap- thing up for people to see.” sages to my Facebook account,” he to walk the amendment up to the clerk, Brock said several lawmakers said. “It’s a modern form of communi- tops. They also should save the state and then copies would be passed out time and money in several other ways, already have purchased tablets with cation like email, faxes, and telephones to members. Any their own money. In addition to being were at one time. As times change says IT Committee extra copies would co-chairman Sen. easier to carry from meeting to meet- forms of communication change, and be passed out to Andrew Brock, R- ing, he says they’re easier to read, al- we, as legislators, need to make chang- the press and then Davie. Tablets are lowing users to scroll through long es as well so we can keep up with our to the public at Tablets are documents and zoom in and out with constituents.” considerably the meeting place. lighter in weight their fingertips. Brock said the IT Committee will The rest of the and have a longer He also noted that legislators cur- be conducting a pilot program issuing less expensive world would have battery life than rently can’t access social networking several legislators various brands of to wait until well laptops. Because than laptops, sites from their state-issued laptops. tablets to see which are the most user after the meeting of their portability, “We can’t update a Facebook status, friendly and cost-effective. CJ members would are lighter, was over for it to be required to car- more portable, be posted online, ry them to all com- if it were posted at Locke, Jefferson and the Justices: mittee meetings and have longer all.” and legislative Kory Swan- Foundations and Failures of the U.S. Government battery life son, executive sessions, allowing state government vice president of to go paperless. the John Locke By George M. Stephens Not only Foundation and would going paperless reduce the cost manager of NCTransparency.com, Preface by Newt Gingrich of purchasing paper, it also would save JLF’s government transparency web- site, said giving more information to money on printing contracts, copying “This book is about American the public in real time should improve costs, recycling pickup, and staff time politics and law; it is also about putting bill books together and passing oversight of the General Assembly’s the roots of the Contract with them out, Brock said. activities. A second benefit from moving to “I think having the information America. A logical place to find tablets: improved transparency. available for public perusal is a big the intent of the Founders is in Going paperless means agendas, deal if it makes the legislator more ac- Locke, [and] Stephens makes presentations, bills, bill amendments, countable,” Swanson said. a contribution to highlighting and all other legislative documents Brock said the committee also is this.” would be submitted electronically and working on developing Apple and An- Newt Gingrich available for lawmakers (and the rest droid applications, so the General As- Former Speaker of the world) to view on their tablets sembly’s webpage can be more easily U.S. House (or home computers) before legislative viewed on smart phones and tablets. of Representatives meetings even started. Full access for public Public documents “The public will have full access As it stands, these documents are to the information we have,” he said. Algora Publishing, New York (www.algora.com) JANUARY 2012 | CAROLINA JOURNAL PAGE 7 Education Education Expert Assails Slow COMMENTARY Pace of Public School Reform Don’t Forget

By CJ Staff Redmond doesn’t target his criti- Digital Dossier RALEIGH cism solely at teachers’ unions and t’s hard to find politicians who shy evaluation processes, however. He also or scores of aspiring college- particularly mindful of what they away from touting the paramount critiqued administrators and elected bound 12th-graders, an epic post” and suggests they “search importance of education, but they school boards who stand in the way of era of nail-biting has begun. online to make sure their digital Itypically are less eager when it comes public-school reforms and broadening FEarly January, synonymous with footprint is clean.” to enacting actual reforms. John Red- school choice. admissions deadlines at many un- That’s sage advice. But kids mond, recently retired director of ex- “We should hold principals re- dergraduate institutions, marks the ought to safeguard their digital ecutive education at the Bryan School sponsible for keeping quality instruc- end of the application process and reputations long before college ap- of Business at the University of North tion in their classrooms. No question the advent of the interminable wait. plications roll around. Both middle Carolina at Greensboro, said that polit- about that,” Redmond said. “And we Packed with hope, hard work, and and high schools should educate ical bickering is standing in the way of should also have a great deal of sym- careful messaging, students’ ap- students and parents about the legitimate school reform in the United pathy for these principals, because, plications now must withstand the impact, accessibility, and longev- States. in the current rules, they are not free judicious scrutiny of college admis- ity of material posted online. Most “If you’re looking for a one-word to dismiss a teacher that is underper- sions officers. provide some guidance: 70 percent answer, it’s poli- forming. Unless As colleges weigh students’ of online teens have received advice tics,” Redmond the teacher does academic lives on a bal- about Internet safety from said. “The schools something that ance, what matters most? school personnel, accord- are like any other is on the verge The constants of a college ing to Pew; 86 percent organization. If of criminal, the application — a student’s have heard from parents they try to be all principal’s hands GPA, test scores, personal about online safety and things to all peo- are tied.” essay, and letters of recom- responsibility. ple, they’re not R e d m o n d mendation — still reign In addition to verbal going to be much praised charter supreme. But schools in- advice, younger teens to anybody. And schools and other creasingly are throwing an need parental monitoring I’m afraid that’s alternatives to the unofficial, contemporary when they’re online. Post- kind of the situa- traditional public component into the mix: KRISTEN poning Facebook until tion that we’re in.” education sys- the digital dossier. BLAIR high school is also wise: R e d m o n d tem. Earlier this Over the past three Younger middle schoolers has broad experi- John Redmond during a Carolina Journal year, the North years, the percentage of are much less likely than ence in the field Radio interview that aired in September. Carolina General college admissions officers older teens to contemplate of education. He Assembly passed who mine social media for student the long-range ramifications of what served as president of the N.C. Council legislation lifting the 100-school cap on information has more than doubled, they post, Pew found. Moreover, on Economic Education for over two charter schools statewide. Lawmak- according to Kaplan Test Prep. Ka- many middle schoolers shouldn’t decades. The group’s purpose was to ers also enacted several other school- plan’s latest survey of admissions be on Facebook in the first place, provide K-12 schools in North Caroli- choice reforms, including a bill that officers from the country’s most since the site requires users to be na with the teacher training and mate- gives parents of disabled children a tax competitive colleges and universi- 13 to comply with federal privacy rials they needed to comply with state credit to take their children out of the ties found that 24 percent have law. Lying about one’s age violates mandates for teaching economics. public school system and use a private checked applicants’ social network- Facebook’s terms of service and can School reforms are stymied for education option. ing pages. Online appraisals aren’t circumvent the site’s protections for a variety of reasons, Redmond said, “Studies have shown that our limited to social sites; 20 percent of minors. but two examples are the influence of students are not achieving to anything admissions officers have Googled What about privacy? Survey teachers’ unions and a deficient meth- like the same level that students from applicants as well. data show about two-thirds of od of measuring student and teacher other countries are, and we’re creating Most of what they’re finding social networking teens use privacy performance. a talent gap for ourselves that’s go- isn’t decimating dreams. But some settings to restrict their viewing “Teachers’ groups get a lot of crit- ing to be very difficult to overcome,” is: 12 percent of admissions officers audience. That’s sensible, but such icism, and I think much of it is justified Redmond said. “Charters are currently have uncovered behavior that af- settings aren’t bulletproof. Content because of their resistance to things the best alternative. I do not think that fected student eligibility negatively. kids post online can be copied and like full accountability for their perfor- charters are enough, but they are the Such offenses, according to Kaplan, pasted elsewhere. And security mance,” he said. “Teacher evaluation best alternative on the street at the mo- “included essay plagiarism, vulgari- breaches can render the private, schemes, for example, are routinely ment.” ties in blogs, alcohol consumption public. Witness the recent exposure opposed by teachers’ groups.” Redmond said that he would rec- in photos, and ‘illegal activities.’” of Facebook CEO Mark Zucker- At the same time, Redmond said ommend going a step beyond charter Today’s teens ought to take berg’s personal photos. that he sympathizes with teachers who schools and creating a full voucher sys- notice. After all, 95 percent of 12- to Finally, privacy promises do undergo evaluations because the tem. “I think that giving parents more 17-year-olds are online, the Pew aren’t always kept. Facebook just process isn’t fair. and more immediate opportunities for Internet Project found; 80 percent settled Federal Trade Commission “We don’t have great ways, cur- alternatives for their children could use social networking sites (with charges that it “deceived consum- rently in use anyway, of evaluating not help but produce quicker results, one survey showing 20 million kids ers” and repeatedly violated users’ student progress,” he said. “It doesn’t which are very much in need,” he said. under 18 just on Facebook). Kids are privacy; Google settled an FTC make sense to evaluate a teacher in a The ultimate solution, Redmond generating copious content, some privacy complaint in 2011 regard- classroom that’s populated by kids said, must come from the state and of which may come back to haunt ing Buzz, its early attempt at social who are advantaged and highly moti- local level. “I think it’s going to take those who overshare. networking. vated and highly intelligent against a some community leadership,” he said. Online searches by admissions What’s the bottom line for teacher who may be teaching in a dis- “Very few people are deeply embed- officers are not “routine” — yet. But teens? Be careful online. And don’t advantaged situation in another part ded enough in public education to Kaplan’s vice president of research, forget that digital dossier. Others of the state. And yet the absolute mea- have a full grasp of the reasons that the Jeff Olson, points to “a growing ac- surely won’t. CJ sure of student performance is what is school’s progress is limited. It will take ceptance by college admissions of- looked at most often when we consider someone with a great deal of knowl- ficers” of vetting applicants online. Kristen Blair is a North Carolina the quality of a school or the quality of edge and a great deal of political skill He advises college applicants “to be Education Alliance Fellow. a teacher’s performance.” and a very thick skin.” CJ PAGE 8 JANUARY 2012 | CAROLINA JOURNAL Education School Districts Struggle With How To Add New School Days school in session. “Not only would they have to Legislature mandated incur the cost of teachers and adminis- trators, they would also have to pay for five additional days extra transportation and food service,” Stoops said. “That alone is a fairly sig- nificant cost.” in last session Tillman said the General Assem- By Karen Welsh Contributor bly will deal with funding in the up- coming session. RALEIGH “The plan is good,” he said. “It’s he tight squeeze of public school just getting the mechanics to work instructional days could become with the money.” more constrained after the North Besides the instructional and cost CarolinaT General Assembly mandated issues, Stoops said the State Board of that an additional five days be placed Education is turning the mandate for on the yearly school calendar. extra instructional days into a political Although legislators hope the issue. move will increase seat time and learn- He said that although legislators ing opportunities for students, there is gave school districts a way to opt out growing skepticism that adding five of the additional days, the board is not days was an efficient way to improve granting permission to do so. performance. Moreover, the General Educators disagree on whether adding days to the school calendar is the answer to low performance in the U.S. in relation to other countries. (CJ photo illustration) “I’m not happy with the SBE,” Assembly did not fund additional days Stoops said. “They are delaying the in the state budget, forcing districts ei- comes to classroom time. What they end the school year no later than June vote to grant the waivers, and that re- ther to cut teacher work days or ask the really need is to have extra resources 10. ally does all of the schools that applied state for waivers. available to enhance their learning ex- As a result, Stoops said 69 of 115 a disservice. Politics is definitely a part Terry Stoops, director of educa- perience. school districts throughout the state of that, allowing them to keep the issue tion studies at the John Locke Foun- Fields said his program was already have asked for an exemption. alive next year. It’s pure politics, and dation, said government officials are founded to help teachers find supple- He said most are strapped to come up it’s bad for both the schools and the operating under a myth that schools mental resources for their classrooms, with a plan of action to implement the children.” in North Carolina can’t compete inter- and to help students become enthusi- legislators’ decision to require more Tillman’s eventual goal is to re- nationally because students don’t have astic learners by locating mentors, tu- class time. quire 200 days of instruction in order enough instructional time. tors, and volunteer opportunities both In many cases it would mean to give North Carolina students a fight- “We generally have the most to broaden their educational experi- taking away teacher in-service and ing chance to compete with the world. hours in school per day, more than ence and to enhance their knowledge planned work days. “I don’t think there will be a 1,023 hours, required of our students,” base. “It wasn’t clear where these days wholesale repeal of the calendar law,” he said. “That’s one of the highest in “It’s all about passion,” he said. are going to land on the school calen- he said. “But, we need to soften it.” the world.” “If a student can find his or her passion dar,” he said. “I guess it is up to each Tillman also wants to mandate In real- and relate it to the individual school how to allocate these that End-of-Grade tests be delayed un- ity, Stoops said subject of study, it days.” til after June 1 of each school year. it’s not the hours can instill a sense Stoops said another concern is “The tests need to be given near in the classroom Backers say of investment in that most school districts have re- the very end of school,” he said. “It’s but the qual- the learning pro- ceived no extra funding for the addi- tough to have solid instruction going ity of instruction the plan is not cess.” tional days. In some cases, an addition- on after they are through. We’ve got to that counts. He perfect but Sen. Jerry al $1 million per day is needed to keep keep the kids engaged in learning.” CJ said instructional Tillman, R-Ran- time shouldn’t be that they are dolph, admits the caught in a one- plan is not a per- size-fits-all vise. standing by it fect one, but he is Some schools, standing by it. especially those “There’s a lot serving economi- we’ve got to do to cally disadvantaged student popula- get the mileage out of the five days,” tions, might profit from more hours in he said. “It’s not the end-all, be-all of the classroom, while others would do education reform, but it’s a start. We’ve better with less, he said. got a lot of things we’ve got to do and “Some students need less class try. It’s our first step, a short step to re- time and more practical experience,” form the school calendar.” he said. “Let the students do some- Tillman says North Carolina is thing that is relevant, whether in the lagging behind most of the other states trades, a vocation, or computer pro- and is currently ranked No. 45 out of grams. Let them pursue their own in- 50 in education. terests by giving them some flexibility. “We’ve got to start somewhere, It’s more important for school systems and we’ve got plenty of reason to do to use time more effectively rather than it,” he said. “We’re sitting here with a trying to hit a mark.” huge job on our hands, but we’re going Joe Fields, co-founder and man- to reform education. We’ve simply got aging director of First In Education, to do it. The playing field is not even.” a Raleigh-based nonprofit that links Even so, many school districts are schools and students to resources from finding it difficult to add in the extra their communities, agreed. days, as they are already struggling in He said students in North Caro- a vise grip over an existing state law lina and the United States keep pace that does not allow schools to begin with the rest of the world when it classes prior to Aug. 25 and they must JANUARY 2012 | CAROLINA JOURNAL PAGE 9 Education Republicans Hope to Capture State’s Top Education Office in 2012

By David N. Bass Atkinson under fire Associate Editor “Right now, is RALEIGH failing teachers and students, by not tep aside, Bev Perdue and Pat Mc- standing up to lawmakers who con- Crory. One of the most competi- tinue to hide behind false rhetoric af- tive Council of State races in 2012 ter they slashed school budgets,” said Salready is shaping up to be for state Gerrick Brenner, Progress N.C.’s ex- schools superintendent. ecutive director. The filing deadline for next year’s Speaking to reporters, Atkinson primary is more than a month away, defended her conduct. “Any time that but seven candidates from both parties I have been interviewed during the either have announced their candida- budget situation, I have worked with cies or expressed interest in entering legislators to point out to them that we the race to become head of the Depart- cannot continue to stretch the resourc- ment of Public Instruction. So far, no es of public education any tighter than other executive-level office in North we are now,” she said. Carolina has attracted that much inter- Atkinson isn’t a stranger to at- est. tacks from her party. After facing two North Carolina is one of 14 states primaries and winning by a whisker in that elects its top education official, The race for state superintendent of public instruction,the person who oversees state the general election in 2004, Atkinson and one of eight that conducts parti- education from its headquarters (above) in Raleigh, promises to be among the most saw her power stripped away when san races. A Republican victory in 2012 competitive Council of State races in years. (CJ file photo) Democratic Gov. appoint- would mark the first time since the Rep. Rick Glazier, D-Cumberland, has school graduates for careers. “A little ed his education adviser, J.B. Buxton, state Constitution of 1971 took effect filed initial paperwork to run for the over two-thirds of our students do as deputy state schools superinten- that a GOP candidate would have won office. Rep. Tricia Cotham, D-Mecklen- not go into a four-year college, and dent. Buxton, who lost to Atkinson in the office. burg, also has expressed interest. a number of them are heading out to the first of two Democratic primaries Three Republicans have thrown their first career right out of school,” he in 2004, reported directly to the State their hats into the ring. David Scholl, Republicans compete said. “We don’t seem to prepare them Board of Education, not to Atkinson. a Union County school board member When Perdue took over the gov- Republicans are emphasizing like we did in the past.” who announced his candidacy in De- Martin said that the state is fail- ernor’s office in 2009, she appointed three themes: local control of educa- William Harrison, chairman of the cember, is the most recent contender to ing to meet the constitution’s guaran- tion, vocational training in high school, State Board of Education, as head of leap into the fray. tee of the right to an education, and and more nontraditional education op- DPI. Atkinson sued and gained a fa- So far, Scholl’s two competitors public schools are focusing too much tions. vorable ruling guaranteeing her right are Cary public school teacher Ray on sending all students to post-second- Scholl, a businessman who has under the state constitution to be chief Martin and special-education teacher ary education. served on the Union County school of DPI. Richard Alexander of Monroe. Wake “We’ve failed kids,” he said. “The board since 2008, said that restoring lo- County school board member John Te- ones that we do pass onto universities, cal control would be among his main GOP criticism desco, also a Republican, said he would they’re still looking for jobs. So let’s decide after the New Year whether to goals. “The state is pushing a one-size- start looking at jobs first rather than Scholl declined to criticize Atkin- enter the race. fits-all mandate on everything in the looking at what scholarship we’re go- son directly, but said he would take a For her part, two-term incum- state,” he said, “and I don’t think it fits ing to give them or what school they’re “conservative, business-minded ap- bent Democrat June Atkinson has said and works as well as if they loosened going to go to.” proach” to the office if elected. Alexander said that Atkinson she will decide soon whether to seek up on the mandates.” Alexander said he teaches in Lan- should use her a third term in office. If she runs, she He’s also concerned that schools caster, S.C., partly bully pulpit more could face a primary from her party. aren’t doing enough to prepare high because he wanted often in defense of the freedom “to good teachers. speak freely and Critics say DPI On the oth- not worry about re- puts too much er hand, Martin Visit the new-look percussions” in his gave Atkinson an job while running emphasis on “A- to B+” and Carolina Journal Online for state schools described himself superintendent. sending all kids as “very close” He lives in Union friends with the County. to college superintendent. A l e x a n d e r “We go to the emphasized reduc- same church to- ing bureaucratic gether,” he said. “I’ve talked to her for bloat in DPI. “We could dramatically 20 years. I encouraged her when she reduce the budget of the education de- did run for state office.” partment and put that money into the At the same time, he questioned classroom,” he said. “And by putting Atkinson’s focus. “I think she’s done it into the classroom, I mean more vo- a good job in what she has done, but cational programs that are geared to- I don’t think the vision is there any ward the students in local areas.” more,” he said. On the school choice front, Al- Scholl sees 2012 as a ripe oppor- exander said he favors “anything that tunity for a Republican to capture an helps kids prepare for their future office dominated by Democrats. without having to jump through hoops “If you’re happy with where we to satisfy the federal government.” are today, then why change? But I’m Atkinson recently caught flak not happy with where we are today. With links to the new CJTV and CJ Radio Web sites from the left-wing group Progress N.C. I am asking for folks to change, and http://carolinajournal.com for not speaking out against Republi- I’m asking that I can help lead that can budget cuts enough. change,” he said. CJ PAGE 10 JANUARY 2012 | CAROLINA JOURNAL Local Government Auditor Calls Foul on NCHSAA Pension Arrangement § 14-100, Obtaining property by false ment authorized by the General As- status, so the retirement system ap- pretenses.” sembly. She had 22 years’ combined proved Bryan’s retirement benefits. State took opposite The report’s findings were re- service in state government when the “My understanding is that was ferred to local prosecutors and the Department of Commerce hired her the final resolution,” said Commerce position in case of State Bureau of Investigation. under a special arrangement in 1994 spokesman Tim Crowley Dec. 12. “Our In a joint statement, Chatham that allowed her to continue contribut- records show that Ms. Bryan separated Exploris official County Schools Superintendent Rob- ing to her state pension even though and retired from the state on Feb 28, ert Logan and NCHSAA Commission- she worked for the private and heav- 2003.” er Davis Whitfield said: “We firmly be- ily tax-subsidized Exploris museum in In an email response to requests Anne Bryan in 2002 lieve both organizations acted in good Raleigh. for information about the resolution By Dan E. Way faith and all actions related to this Like Strunk, Bryan wanted to at- of her case, Bryan said: “The previous Contributor e m p l o y m e n t tain full pension questions about my retirement were re- RALEIGH agreement were at 30 years of solved. I retired from the state in 2003 high-profile controversy in- handled hon- service. Exploris and have been receiving retirement since. I am now a part-time employee volving the state employees’ estly and openly issued quarterly and do not contribute to the retirement pension plan, the North Caro- for the public reimbursements system.” linaA High School Athletic Association, to review. Stan- to the Depart- While state officials went to great and Chatham County Schools high- dard employ- ment of Com- lengths to support Bryan, sanctions lights the state’s patchwork of special ment protocols merce for Bry- were recommended in the Strunk case. retirement benefit deals. It’s an issue were followed an’s salary and In a Feb. 5, 2004, letter to the IRS from that has been debated by the retire- including legal all related ex- Michael Williamson, deputy state trea- ment system, the attorney general’s review.” penses includ- surer and director of the Retirement office, the Department of Commerce, In sepa- ing matching Systems Division, Williamson made and the IRS, among others. rate responses Social Security, it clear the request for a ruling on the to the auditor’s retirement, and Nearly a decade ago, state of- Bryan matter was unprecedented. findings, the health insur- ficials went to the mat to protect the In defending Bryan’s participa- school district ance. public pension benefits of Anne Bryan, tion in the retirement system, Wil- and NCHSAA In August who left the Department of Public In- liamson wrote: “There is no explicit each said there 2002, Assistant struction to become president of the exclusion from membership in the were precedents Attorney Gen- nonprofit Exploris children’s museum System for an individual who is a state for the structure eral Robert M. in Raleigh. News accounts from Caro- employee and is leased by the State to they used to Curran issued a lina Journal and other media at the time another employer.” memorandum questioned whether Bryan was being transfer $95,192 Wood, on the other hand, rec- allowed by state officials to game the from NCHSAA to J. Marshall ommended that the Chatham County retirement system to her advantage. to Chatham Barnes III, dep- Board of Education discipline Logan Bryan currently works for Gov. Bev County Schools to fund Strunk’s salary uty director of the Retirement Systems and that the NCHSAA board take dis- Perdue as senior policy adviser on ear- and benefits including $12,592 in re- Division, stating Bryan’s “period of ciplinary action against Whitfield. ly childhood. tirement contributions from June 2010 employment with the Exploris Mu- through April 2011. seum was not service as an ‘employee’ No action anticipated Auditor’s ruling this year The precedents they cited illus- within the meaning of [North Carolina The state Department of Public More recently, state Auditor Beth trate North Carolina’s pension patch- statutes] and should not be included work. They include allowing the North as membership service in the [Retire- Instruction does not plan to take any Wood has suggested that NCHSAA — action regarding Chatham County a private organization — and Chatham Carolina League of Municipalities and ment] System. Any employee contri- the North Carolina Association of butions which were made incident to Schools. County Schools may have engaged in “We are aware of this issue, but criminal activity when they designated County Commissioners to participate this employment should be returned.” in the state retirement system even It did not appear Bryan had any essentially this really comes down to Rick Strunk, associate commissioner a local school board issue,” said DPI for communication at NCHSAA, as an though both organizations say they are reporting responsibility to Commerce not state agencies. or that the department “maintained spokeswoman Vanessa Jeter. “I think employee of the school district so he the state auditor and that local board could continue his retirement contri- Further, Chatham County any manner of control or supervision Schools and NCHSAA pointed out, over her work,” rather, her job descrip- will really need to work through that.” butions to the state Teachers and State While state officials backed Bry- Employees Retirement System. Thomasville City Schools lists employ- tion said she was to report to the muse- ees of the Piedmont-Triad Educational um’s Board of Directors, Curran said. an’s attempt to bolster her pension, Strunk had 24 years of state ser- Wood rebuked principals in the Strunk vice when the NCHSAA severed its Consortium, a regional educational service agency, on its payroll so they Settlement agreement case for its unorthodox contract and ties to the University of North Carolina for claiming the deal would impose no may participate in the state retirement system in June 2010 and became inde- Despite that opinion, TSERS’ additional taxpayer costs. system. A similar arrangement is in pendent. The move made employees Board of Trustees entered into a settle- Strunk, Wood wrote, “would place between Duplin County Schools of the athletic association ineligible for ment agreement with Bryan and Ex- have collected over $600 per month and the Southeastern RESA. further state pension contributions. ploris in February 2003 that allowed in additional retirement benefits after Those setups are similar to what But Strunk wanted to reach 30 Bryan to retire as a state employee ef- achieving 30 years of State service. the NCHSAA and Chatham County years of state employment so that his fective March 1, 2003, terminating the Just 10 years into retirement, the State Schools crafted for Strunk, and were monthly retirement income at age 60 agreement between Commerce and would have inappropriately paid the akin to what NCHSAA had in place would increase from $3,217 to $3,822. Exploris. Associate Commissioner $72,637. Af- with UNC, they claimed. So the NCHSAA asked Chatham Alexander Peters, special deputy ter 13.7 years, the improper retire- But Wood countered in her report County Schools to put Strunk on its attorney general, outlined the settle- ment benefits would have exceeded that “the arrangements between those payroll and submit retirement contri- ment to the retirement board in a July $100,000.” organizations and the retirement sys- butions on his behalf. 14, 2004, memorandum stating “Ms. Wood said the NCHSAA should tem received explicit approval from The investigative report, Bryan should be treated as eligible for have known the Strunk plan was inap- the retirement system and are codified spawned by a complaint to the audi- full retirement benefits based on an es- propriate because the retirement sys- tor’s hotline and released by Wood on in state law,” unlike the NCHSAA- timated 31.667 years of State employ- tem earlier rejected a proposal to have Chatham Schools arrangement. Dec. 8, stated: “The intentional misrep- ment, including service rendered while all association employees covered for resentation of the Associate Commis- Bryan’s retirement deal serving as president of Exploris.” continued state retirement eligibil- sioner’s employment may be a viola- Peters noted that the Internal ity under an agreement with Orange tion of North Carolina General Statute Nor was Anne Bryan’s arrange- Revenue Service did not object to that County Schools. CJ JANUARY 2012 | CAROLINA JOURNAL PAGE 11 Local Government

Appeals Court Clarifies When COMMENTARY Employees Can Sue for Libel Schrödinger’s

By Michael Lowrey eign immunity,” Elmore wrote. Associate Editor Trew next argued that White Commissioner RALEIGH could not pursue court action because he state’s second-highest court he had not exhausted all of his admin- n physics, there is a paradox from his board appointments, recently decided the conditions istrative remedies. The appeals court called Schrödinger’s Cat. The including the DSS board. Berger under which someone can sue noted that this doctrine applies only scenario presents a cat that has been in the news often over the anT employer for libel. The dispute in- if an effective administrative remedy Imight be alive or dead, depending past year for domestic disagree- volved an adverse performance review exists, which was not true in this case. on an earlier random event. Techni- ments with a former girlfriend, of an N.C. State University professor. Had White’s grievance succeeded, cally, at some point, the cat is both being chronically late to a myriad of The court’s decision upholds the right the negative review would have been alive and dead. meetings, and violating a judge’s re- to sue when an employer has been destroyed. That is different from the Two North Carolina county straining order by attending a Head defamed by internal company docu- financial compensation White sought commissions find themselves with Start meeting where his former ments that are shared with others. for allegedly having his professional a similar dilemma regarding the ap- girlfriend works. Mark White was a tenured asso- reputation defamed. pointment of a fellow commissioner The commissioners decided to ciate professor in the Department of Trew’s final argument was that to the local Department of Social remove Berger from his boards by Electrical and Computer Engineering the case should be dismissed because Services board. Once placing his removal on their consent at N.C. State. Rob- without publica- appointed, can a county agenda and passing that ert Trew was the The North Carolina Courts tion, no libel had commission remove from agenda. (Berger was late department chair occurred. the board a commissioner to the meeting and missed and wrote White’s The N.C. Su- it appointed? Enter the the consent agenda vote.) annual review. preme Court held paradox. Berger has defied their Trew concluded in the 1979 case In Brunswick decision by attempting that White had Arnold v. Sharpe to stay on the DSS board, not met the ex- that “there is no County, commissioner Charles Warren leads the and a showdown ensued. pectations of the basis for an action Do commissioners department. Trew for libel unless DSS board. Warren has become a personification have the right to remove passed his assess- there is a publi- CHAD a fellow commissioner ment along to cation of the de- of angst to his fellow com- ADAMS from the DSS board? The N.C. State’s dean famatory matter missioners. His presence answer is confusing and of engineering and in-house counsel. It to a person or persons other than the on the board became so ambivalent. also went into White’s personnel file. defamed person.” problematic last year Professors Aimee White objected to Trew’s char- Specifically, Trew argued that in that the commissioners decided to Wall and Frayda Bluestein, who acterization of his performance and an employment context, agents and pass a local ordinance forbidding specialize in public law and govern- wrote a “rebuttal letter,” which Trew employees of a single employer did county commissioners from serv- ment at the UNC School of Govern- found unpersuasive. White then filed a not count as the third person necessary ing on boards and commissions in ment, say the statutes are unclear. grievance, seeking to have the review for libel to have occurred. He cited Sat- the hopes that Warren would step There is no clear statutory author- stricken from his personnel file. He terfield v. McLellan Stores, a 1939 case in down. ity for commissioners to remove a also sued Trew for libeling him. which the N.C. Supreme Court found All other commissioners did fellow commissioner from a DSS Trew argued that the libel suit that libel did not exist when a manager step down — except Warren. The should be thrown out. Superior Court gave a note to a stenographer to type board. The “just cause” clause result is that his fellow commission- Judge W. Osmond Smith III did not a separation notice based upon alleged doesn’t really apply since commis- ers censured him, meaning noth- agree and denied Trew’s motion to misconduct. sioners are elected. dismiss. Trew then brought the matter The high court held that “the ing of consequence, and Warren’s Brunswick County chose not to the Court of Appeals, claiming that stenographer [was] not a third person controversial tenure continued. to challenge the statute and decided Smith had reached the wrong legal within the contemplation of law with That year, DSS fired its direc- to suggest strongly that Warren conclusion. respect to publication of a libelous tor, who sued the county and won. remove himself. In New Hanover Before the appeals court, Trew ad- matter.” It also attempted to hire a lawyer County, the commissioners took a vanced three arguments why White’s The Court of Appeals, however, without commission approval. The much more aggressive tack, as- claim should not proceed to trial: the refused to interpret Satterfield as Trew billable time is still outstanding. suming they had the authority to claim was barred by sovereign im- wished. And recently, the newest board ap- remove Berger. munity; White had not exhausted his Trew produced the annual re- pointee, Pat Sykes, was threatened Commissioners had Berger administrative remedies; and White view on his own. The dean and in- with arrest for trying to add an item removed from the next DSS meeting could not win, as Trew did not “pub- house counsel were involved only to the agenda. On film, the sheriff’s using a sheriff’s deputy. Berger said lish” the performance review. The ap- after the review was finished. The ap- deputy who would have to make he may file suit against the commis- peals court rejected all three claims. peals court also noted that the N.C. Su- the arrest clearly was uncomfort- sion. With no clear statute to go by, Trew argued that because the suit preme Court had based its holding in able with the situation. Sykes left a judge will decide if commission- challenged actions he made in his of- Satterfield on a New York case with a the dais and moved to the audience, ers do or don’t have the authority to ficial capacity as department head, the virtually identical fact pattern, Owen v. and then the board removed the remove. doctrine of sovereign immunity should Ogilvie Publishing Co. media to go into a closed session In the meantime, North Caro- bar White’s claim. The appeals court In it, the New York court noted without public notification. The did not agree. Sovereign immunity, that a statement could be considered lina has a “Schrödinger’s Commis- Brunswick Beacon and N.C. Press As- Judge Rick Elmore noted, bars claims “not published” if it is seen by a third sioner” dilemma: A commissioner only when government officials are party who is “distinct and indepen- sociation are addressing the alleged can be removed from and still sit on acting in their official capacity without dent of the process by which the libel violation of the Sunshine Law. the DSS board because the statutes “malice or corruption.” was produced.” To date, the Brunswick com- are unclear. Judges will have to “Even if the writing of a review is In this instance, however, wrote missioners have not tried to remove solve this paradox. CJ an activity defendant could have only Elmore, “giving the review to the dean Warren from the DSS board directly. carried out in his official capacity, be- and the staff of the office of general In New Hanover County, com- Chad Adams is host of “The cause plaintiff alleges that defendant counsel constitutes publication for the missioners are attempting to oust Morning Beat” on 93.7 FM and 106.3 carried out this activity maliciously, purposes of libel.” fellow commissioner Brian Berger FM The Big Talker in Wilmington. defendant is not protected by sover- The case is White v Trew, (11-337). CJ PAGE 12 JANUARY 2012 | CAROLINA JOURNAL Local Government From the Newsstands Wilmington Developers Want Tackling Cronyism New Hotel Locations Limited ess than one week removed campaign headquarters, staring By Michael Lowrey areas. Associate Editor from a John Locke Founda- at a computer screen and typing Under the new guidelines, res- tion Headliner appearance in intensely. [T]he campaign’s senior RALEIGH taurants must put date markers on all Raleigh,L the Washington Examiner‘s staff … hope the 23-year-old soft- public/private downtown food containers in their freezers and Timothy P. Carney tackled the ware engineer can use his skills to Wilmington economic develop- refrigerators. The code also limits how cronyism inherent in “government- help them find ways to reassure ment group is proposing that long prepared food can be stored. managed markets.” wavering Obama supporters, and theA city require all future hotels in the The FDA Food Code also prohib- identify new ones. city to be built only in its Central Busi- its cooks from touching ready-to-eat Central planners — whether St. Clair… is one of more ness District and a few other parts of food with their bare hands. Instead, in governments or huge corpora- than a dozen developers and engi- town. The idea gloves will be re- tions — cannot judge and balance neers toiling full time to re-elect has generated quired. supply and demand as well as Obama. Their job is to write soft- considerable op- “Right now, the market can, through the ware that can make sense of the position and city Cherokee the standard is independent actions of numerous reams of voter data the campaign staff is recom- minimal bare- individuals. A classic critique of collects, searching for information mending it be hand contact,” planned economies is that it leads that will enable a not-so-popular rejected, reports to notes Alicia Pick- to shortages and excesses — that President running in a lousy the Wilmington ett, a senior envi- is, waste and inefficiency — and economy to wring out every last Star-News. ronmental health thus leaves everyone poorer than vote he can. The idea is to take the Wilming- Currituck specialist with if producers were responding to now-standard practice of “micro- ton Downtown the New Hanover price signals and thus producing targeting”—where a campaign Inc. got the idea health depart- what people want and need. repeatedly pesters supporters with of restricting where hotels can be lo- ment. But there’s another relevant phone calls, volunteer visits, and cated during a roundtable meeting In addition, food will have to be critique of planned economies, fundraising emails — one step that included Charleston, S.C., Mayor stored at a lower temperature. Current particularly as we have a president further by tailoring their mes- Joe Riley. When asked how to attract state law allows foods that could po- who continues to campaign on sage to the concerns of individual more hotels to downtown, Riley said, tentially make you sick if they go bad the platform of battling the special voters. “that’s easy, we made it illegal every- to be stored at 45 degrees. Under the interests: When a few bureaucrats where else.” new federal guidelines, the refrigera- or politicians try to set supply “Moving this proposal forward tion standard is 41 degrees. and demand, they will often act Just when you thought you would limit growth and congestion,” Health inspectors anticipate they so as to benefit the well-connected had seen the silliest possible regula- Wilmington Downtown Inc. president will have the most work to do educat- incumbent businesses. tory squabble, James Lileks offers and CEO John Hinnant said in sup- ing local restaurants and cafes about Witness the DC govern- another doozy in his “Athwart” col- port of the proposed restriction. “This the changes, as many national chains ment’s proposals on taxis. … umn in the Dec. 19 National Review: is ultimately a decision that will have a already have adopted the new regula- … Who has more resources positive impact down the road.” tions. to spend on this matter, and who It’s a feature of modern life: Others aren’t so sure the limit is has more concentrated interests compliance with the Authorities a good idea. Char/Meck consolidation? at stake? The incumbent cabbies because there’s no point to object- “While [WDI’s] thought is that it do, far more than the passengers ing. It’s annoying enough when may generate hotels downtown, we’re The city of Charlotte and Meck- or the theoretical future cabbies. you’re led by the wise, but when not so sure that’s exactly what would lenburg County have had off-and-on So the sellers (cabbies) will always you’re led by a pack of jacka- happen,” Wilmington planning man- discussions about combining into a argue that “the market is satu- napeses and dunderheads, well, to ager Ron Satterfield said. “They may single local government over the years. rated.” … quote Plato, hoo boy. not locate in the city at all. They may Charlotte Mayor Anthony Foxx has … I’ve got nothing against Which brings us to the go into the county. They may go into brought up the concept again, but the cabbies getting rich. I do have a bureaucrats of Europe. This time Brunswick County.” idea has gotten a cool reception from problem, however, with cabbies us- it’s the matter of the improperly Satterfield noted that most com- county commissioners, reports The ing government might to deprive advertised water. … EUcrats parable cities to Wilmington allow Charlotte Observer. future competitors … from one have chided a bottled-water com- hotels in commercial and mixed-use Over the years, Charlotte and way of making a living, and creat- pany for making a health claim zones, with Charleston being an excep- Mecklenburg County have combined a ing shortages for customers at the unsupported by science. Makes tion with its special overlay districts number of services, with the city han- same time. you taller? Smarter? Even more for hotels. dling some while others are the coun- egalitarian? No, the company “It’s just an odd proposal,” said ty’s responsibility. Foxx has proposed made a claim of jaw-dropping Kip Damrow, Wilmington director of combining the remaining services and Sure, the poll numbers and audacity: The water was useful in sales for Interstate Hotels and Resorts. having a single governing body. This, economic data look bad for the preventing dehydration. “Like with any sort of free marketplace he argues, would save money and al- president — hence the focus on There was some technical scenario, it’s really up to the developer attacking likely 2012 Republican explanation about absorption low for better decision making. or to the bank to decide if it’s going to A bare majority of Charlotte City opponents rather than defending rates and cellular integrity, but work.” the administration’s record. But no one cares about the rationale, Council voted to study the issue. The the Dec. 19 Bloomberg Businessweek because it’s ridiculous. Find any New food guidelines $150,000 study would be paid for by a offers an article that should alarm marathon, stand at the finish line, private grant. anyone who thinks the GOP can and offer the runners a choice Local health departments across The Mecklenburg County com- rely only on historical trends to between a) water, and b) a glass of the state will soon be enforcing a new mission also must approve the study. predict the outcome of this year’s sand. Wager on which one they’ll set of food safety guidelines for restau- So far, the board does not seem inclined presidential race. A different set of take. You could say, “Sure, they’ll rants and cafes. The new rules take ef- to go along. Democrats hold a slim numbers could help the president’s take the water, because they’ve fect sometime before July1, reports the majority on the county board. Some cause: been conditioned by a lifetime Wilmington Star-News. but not all Democratic commissioners of ads from Big H20,” but most In 2009, the federal government favor at least examining consolida- Day and night, Will St. people would take water because developed food-handling guidelines tion. Commissioner Jennifer Roberts, Clair can be found sitting in the they’re — what’s the word? — called the United States Food and a Democratic consolidation supporter, dark on an exercise ball in the back thirsty. For water. Drug Administration Food Code. The has asked Republican commissioners room of Barack Obama’s Chicago MITCH LOKAI CJ code differs significantly from previ- to support the study. None, however, ous food-handling rules in several key seem inclined to do so. CJ JANUARY 2012 | CAROLINA JOURNAL PAGE 13 Local Government Cities Sue, Claiming Annexation Reform Denies Voting Rights

By Sara Burrows club and drug away by the hair.” Associate Editor Heath said it is ironic that cities RALEIGH say they are standing up for the voting ities suing the state over recent rights of minorities. “Minority popula- annexation reform legislation tions were more hurt when the city had say they are concerned that the all the say about who was annexed and Claw disenfranchises those who don’t who wasn’t, because [cities] would se- own property. lectively go around minority and low- The Annexation Reform Act income areas and leave them out.” gives property owners the chance to She also said cities can’t have it use a petition process to reject involun- both ways. If they want renters to be tary annexation into cities. Basically, if included in the decision of whether to more than 60 percent of property own- reject an involuntary annexation, rent- ers in an area targeted for annexation ers also should be allowed to request sign petitions opposing it, the city can- to be annexed voluntarily. not force those property owners into Cities often avoid voluntary an- its borders. nexations, as those who want to be an- Six cities whose involuntary nexed are usually poor, have low prop- annexations were halted by the leg- erty values, and are in need of services islation are arguing that the right to without getting preclearance from the Wake County judge won’t buy it, ei- the city can’t afford to provide them. petition against annexation is a vote — U.S. Department of Justice. ther. “They abolished the idea of hav- and renters, not just property owners, Several of the cities whose an- “Unfortunately, sometimes poli- ing a referendum for a vote in 1959 should be included in it. nexations were at risk of being undone tics plays a role in our courts,” she said. when they passed this law [allowing Supporters of the legislation say are located in what are called Voting Heath said it doesn’t make any involuntary annexation],” Heath said. it is not a vote; it simply is a means for Rights Act counties — counties that sense to include anyone other than “They have never considered the opin- property owners to prevent their prop- under the federal 1965 Voting Rights property owners in a decision that pri- ion of renters before. They didn’t want erty from being taken without their Act must get pre- marily affects their a vote before, and they don’t want a consent by cities. clearance from vote now.” Annexation reformers believe property. She said the Department it’s ridiculous to What they want is to delay the cities are concerned not about rent- of Justice before Annexation undoing of their annexations and to suggest some sort ers’ voting rights, but about losing making any major convince the General Assembly to re- of racist intent in hundreds of thousands of dollars they changes to their opponents argue peal the petition process altogether were counting on in new property tax- election practices. a petition excluding renters while they stall, she said. es from the annexed homeowners. The intent of the from the process. Kelli Kukura, director of gov- Goldsboro, Kinston, Lexington, law was to pre- can’t be considered “They’re reaching ernment affairs for the North Caro- Wilmington, and Fayetteville filed vent discrimina- very far to try to lina League of Municipalities, said the their complaint in Wake County Su- tion against black a vote make a case,” she league is not involved in the lawsuit, perior Court Nov. 20. (Rocky Mount voters. said. but it supports the cities that are. filed a similar complaint separately). The cities “Almost ev- “This situation has been par- It argues that making the right to vote suggested to DOJ ery community ticularly difficult because the towns contingent on property ownership vio- that renters were often poor and mi- I have gotten to know over the years made decisions about these annexa- lates the state constitution. norities and that leaving them out of that rose up fighting a forced annexa- tions based on the law at that time, It’s not the first time the cit- the petition process violated their vot- tion was very diverse,” Heath said. and then had new law applied to them ies have tried this argument. Several ing rights. The DOJ didn’t buy the ar- “They had blacks and Asians that retroactively, after taxpayer money months ago, city attorneys warned gument. would come up to the General Assem- had already been invested. This has county boards of elections not to go Cathy Heath, founder of bly just as mad as all the white people understandably upset a number of forward with the petition process StopNCAnnexation.com, hopes the about being hit over the head with a town residents,” Kukura said. 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 JANUARY 2012 | CAROLINA JOURNAL From Page 1 BLS Official: Perdue Violated Jobs Data Agreement Continued from Page 1 The statewide employment re- sy’s generic messaging and found fices will continue to provide services port typically is released the third Fri- nothing to ‘totally’ fit. to assist our state’s citizens who are used in an unauthorized manner be- day of each month at 10 a.m. • The most pressing problem looking for work.” fore they have been cleared for release, Former Gov. Mike Easley’s ad- in NC and my top priority since tak- At 9:29 a.m., Johnson responded and will be accessible only to autho- ministration received an early briefing ing office has been to create new jobs. to Parker: rized persons.” on the employment reports from ESC (we don’t know how many of these Chrissy still needs to review, In late December, Rankin told staff for several months in 2003 and jobs – over-the-month or over-the- but see the tweaked version of what CJ that states are expected to develop 2004, if not longer. CJ learned of and year – are new) you sent below. their own procedures for handling em- reported on them in 2004. • We are in the top ten states At 10:07 a.m., seven minutes after bargoed and confidential data. But in Perdue to improve the scheduled public release, Parker an earlier email, she said, “BLS does and her staff our unem- had not received a go-ahead from Per- not support the release of employment due’s team to finalize the language: may not re- [P]lease start using p l o y m e n t and unemployment data before the es- Do we have an update? BLS ceive formal the message points that rate – which tablished dates and times.” She notes has already released the data. briefings, but Chrissy included in her has dropped that states are required to publish the BLS posts data for all the states Parker told email to all the [public by nearly dates they will release employment on its website at the time designated CJ in Sep- information officers]. o n e - a n d - a - data by Dec. 31 of the previous year for release. tember that The Governor’s message on half points and follow that schedule. The final version released to the he shares the jobs should be reflected. compared to CJ asked DES spokesman Larry public read: jobs report For example, Lynn’s quote where we were Parker for the procedures on sharing “Clearly Gov. Perdue’s focus with Per- could say something to last February. embargoed data and a list of the peo- on growing jobs in North Carolina due’s staff the effect of: “As Gov. (Our unem- ple who can see that information. In an should continue to be the No. 1 pri- roughly 24 Perdue continues to ful- ployment rate email, Parker said, “Our process at this ority for North Carolina leaders,” hours before fill her No. 1 priority has improved time is to go through our legal depart- said ESC Chairman Lynn R. Hol- the embargo of bringing new jobs to because our ment and it doesn’t look as though we mes. “We are showing signs of slow was lifted. North Carolina, the state labor force has will make your deadline. …” but steady progress, with job gains Emails ob- saw a significant number dropped NOT As CJ began reporting that DES in February and over-the-year. Here tained by CJ of job gains in Febru- because we personnel, Perdue’s press office, and at the ESC we remain committed to i n v o l v i n g ary.” have grown other administration officials were assisting out-of-work citizens with Parker, Pear- jobs. This training and services to get them sharing embargoed job data, CJ has son, Johnson, is a DAN- through these hard times and back to learned that officials in Alabama and and in one Excerpt from an email sent to Larry Parker, G E R O U S work.” some other states apparently do the instance De- state employment agency spokesman, by Mark assumption same. BLS officials admit that the partment of Johnson, Gov. Beverly Perdue’s deputy com- until more June release sharing of data that’s supposed to be C o m m e r c e munications director. consistent job On Wednesday, July 20, at 5:33 protected is a problem, but they have spokesman growth takes p.m., Parker wrote Pearson the follow- not clarified whether breaking the em- Tim Crowley, show officials discussing hold. The data show this.) ing: bargo (and violating the cooperative the data more than 48 hours in advance • Since the start of my term, agreement) also breaks the law. Rankin Attached is the release for Fri- of the embargo. businesses have pledged to create day. I have LMI looking over some said this was an issue worth additional Crowley was press secretary for 58,000 jobs and are investing 12.5 discussion. educational and claims data. Right Perdue’s 2008 campaign for governor billion dollars – (This is a Commerce now much of the loss in education Spinning job reports and joined her administration as press number, not ours.) appears to be at the college level, but secretary after her inauguration. With that said – here is what I overall, a good portion of it histori- Perdue’s press office has gotten A review of several 2011 email ex- wrote in the revised quote. cally seasonal. Remember, the ‘pub- an advance look at embargoed data changes reveals how the monthly pro- “North Carolina added a sig- lic’ education numbers fall under since January 2011, and perhaps before cess, in which Perdue aides insisted on nificant number of jobs in Febru- Government. ‘Private’ education fall then. Documents and correspondence overseeing the releases, worked. ary,” said ESC Chairman Lynn R. under Education & Health Services. obtained by CJ show that Perdue’s staff Holmes. “This was the second con- If you need to discuss tonight – my received the information at least 24 February release secutive month with job gains as cell phone is ------. hours before the embargo ended. The Parker and Johnson had re- several sectors showed improvement. The following day at 6:55 a.m., governor’s staff used its early access viewed a draft of the February report Gov. Perdue’s top priority is growing Pearson sent Parker the following: to massage the monthly employment no later than Thursday, March 24. The and keeping jobs in North Carolina, Larry, I will have changes press release that reported jobs data to public release had been set for 10 a.m. and in February there were a notable for you later this morning – in the the public. the following day. In an email sent to amount of job gains as well as over- meantime, can you please provide me The DES sent a draft of the press Parker at 5:36 p.m. Thursday, Johnson the-year increases throughout many the data on jobs lost due to the [GOP state] budget — do they play in to release each month to Perdue’s press wrote: of the job sectors. Our statewide of- this rate at all? — and you haven’t office. The governor’s spokesmen Also, please start using the fices will continue to provide services given me the reason why — the mes- typically rewrote the text and added a message points that Chrissy includ- to assist our state’s citizens who are sage — that I asked for on Tuesday positive spin, even if the data did not ed in her email to all the [public in- looking to find work.” — we can’t move forward with this support Perdue’s talking points. formation officers]. The Governor’s Also at 8:51 a.m., Parker sent release until we have our talking The glowing quotes were attrib- Johnson a slightly different version: message on jobs should be reflected. points ironed out for the gov as much uted to Holmes, director of the employ- ”North Carolina added a sig- For example, Lynn’s quote could as for you. ment agency, but documents show the say something to the effect of: “As nificant number of jobs in Febru- For a look at these and other quotes were approved and probably Gov. Perdue continues to fulfill her ary,” said ESC Chairman Lynn R. email exchanges between Perdue of- written by a Perdue press aide, either No. 1 priority of bringing new jobs Holmes. “North Carolina experi- ficials and Parker, visit http://bit.ly/ Chrissy Pearson or Mark Johnson. to North Carolina, the state saw a enced back-to-back months of job SrzHo8. CJ In several instances, DES spokes- significant number of job gains in gains, showing that the state is forg- man Parker cautioned Pearson or February.” ing ahead of the difficult recession. Johnson against using extraneous or At 8:51 a.m. March 25, an The Governor continues to focus Don Carrington is executive editor unverifiable information to boost Per- hour before the scheduled re- on growing jobs in North Carolina of Carolina Journal. Prior to joining The due’s image. At times, the Perdue com- lease, Parker told Johnson he had and in February there were a notable John Locke Foundation, he was deputy di- munications team would push back, difficulty following Pearson’s di- amount of job gains, as well as over- rector of ESC’s Labor Market Information and the release would undergo several rective: the-year increases throughout many Division. Rick Henderson is CJ’s manag- revisions before final publication. Mark, I looked through Chris- of the job sectors. Our statewide of- ing editor. JANUARY 2012 | CAROLINA JOURNAL PAGE 15 From Page 1 Questions Remain About Perdue Flight Operation Continued from Page 1 ness flights occurred based on records made public through the elections the Perdue campaign probe, has said board. Some examples include: the governor is not a target of the in- • A round-trip flight for Perdue vestigation. The State Board of Elec- on Jan. 30, 2007, from Raleigh to Con- tions closed its investigation in August cord in a Cessna Citation jet owned by 2010. Board chairman Larry Leake has David King of Raleigh was listed as said that the board’s role in the matter official state business, yet there is no has ended. record of either the lieutenant gover- Unless new charges are filed, it’s nor’s office or the campaign paying possible the public never will learn the for the flight. King provided flights to nature of the relationship between the Perdue on other occasions. A flight on aircraft providers, campaign officials, March 5, 2007, to Wilmington in King’s and Perdue herself. jet was valued at $1,389. Two-thirds The elections board investiga- of the event time involved state busi- tion and media reports have identified ness, and one-third covered campaign three patterns of activity by the aircraft events. The Perdue Committee paid providers: campaign flights that were only $202 for this flight on July 1, 2007. meant to be free; campaign flights from Thought Gov. Bev Perdue’s former husband, Gary, died in 1997, Trawick “Buzzy” Stubbs’ law firm continues to use Perdue’s name. (CJ photo by Don Carrington) There is no record of any payment donors who had contributed the legal from the lieutenant governor’s office. maximum, wanted to provide addi- James Fleming, a Morganton barber, nady, a legislative liaison. “According • A July 23, 2007, flight between tional funding, and wanted to hide the in the amount of $3,048.50 to pay for to Ms. Young, Ms. Kannady would use New Bern and Ocean Isle to transport source the money; and free flights for a chartered aircraft for Perdue, the a list of individuals who could be con- Perdue for a speech to the N.C. Sher- official business by the lieutenant gov- indictment says. Caldwell then reim- tacted to provide air travel,” the report iffs Association was listed as official ernor. bursed Fleming for the check with said. “The list had been provided to state business, but there is no record None of the indictments so far money that came from an unidentified Ms. Young’s office.” In some instances, of any payment from the lieutenant has mentioned the use of private air- third party — a violation of campaign the campaign arranged the travel and governor’s office. The pilot was Mi- craft to conduct state business for free. law. Fulenwider, an acquaintance of Young would add the information to chael D’Orosko from Wilmington. CJ Nor has anyone from the governor’s Caldwell, originally was invoiced for Perdue’s calendar. was unable to determine who owned office or the campaign explained how the flight. Perdue could have used state- the single-engine airplane used for the providers were recruited and what the Reichard worked out a plea owned aircraft for official and cam- trip. providers might have expected in re- agreement with Willoughby on Dec. paign business — so long as the cam- • A flight Sept. 29, 2007, involved turn for giving free flights. 14. He entered an Alford plea, an ar- paign reimbursed the state. And yet a one-way trip for Perdue from New Indictments of Perdue donors rangement allowing a defendant to the elections board found that several Bern to Raleigh in a Cessna Citation maintain his innocence while acknowl- dozen flights were not reported in a jet. The plane was owned by Flying Stubbs, Reichard, and Juleigh edging that the prosecutor has suffi- timely manner and many were not re- W LLC and managed by Buddy Stall- Sitton of Morganton were indicted cient evidence to win a jury trial. He imbursed. ings of New Bern. Her events that day on felony charges by a Wake County agreed to pay a $25,000 fine and serve A CJ report from October 2010 re- included campaign and state busi- grand jury Nov. 28. Sitton, an attorney, two years’ pro- vealed that Perdue ness. The total cost was $701, and the worked for the 2008 Perdue campaign bation. After the also made no pay- campaign paid $239 on Jan. 12, 2008. and later ran Perdue’s western North hearing, he issued ments to private There is no record of payment from the Carolina office. Robert Lee Caldwell of a statement that he aircraft owners for lieutenant governor’s office for the re- Perdue could mainder. Morganton was indicted in February would not be talk- travel related to • On Nov. 9, 2007, records indi- on similar charges. ing to reporters. have used state official state busi- cate Perdue traveled round trip from Reichard was charged with Stubbs is ex- ness in 2007 and Chapel Hill to Hickory in a corporate funneling $32,000 from Morganton pected to appear aircraft and 2008. businessman Charles M. Fulenwider Perdue cam- plane originating in Dunn, owned by in Wake County reimbursed Warren Oil Company. Her events in through a business Reichard owns to Superior Court in paign committee pay a portion of Sitton’s salary with records turned Hickory consisted of an official state January and has for the flights business event lasting 50 minutes and the Perdue campaign. Fulenwider al- said he plans to over to the elec- tions board show a private campaign event lasting 120 ready had given the maximum $8,000 fight the charges that she sometimes minutes. The total flight costs were allowed during the primary and gen- against him. Sitton eral election cycles. used privately owned aircraft for trips stated as $589, with $415 calculated as and Caldwell also could make court the share attributed to the campaign. Stubbs, a registered Republican that were related entirely to official appearances this month. The Perdue Committee paid Warren and longtime political donor who has state business. On many other flights, she combined official business as lieu- Oil $415 on Dec. 31, 2007, almost two given primarily to GOP candidates, is SBOE fingers providers months after the flight took place. The tenant governor with political events accused of funneling $28,000 through difference could have been paid direct- A June 2010 report by elections in her quest to become the state’s chief his law firm to pay for aircraft to fly ly with public funds from the lieuten- board investigator Kim Strach alleged executive. For those flights, someone Perdue to campaign events during ant governor’s office, but there is no Stubbs and Reichard assembled a list in the Perdue campaign made calcula- 2007 and 2008. The free flights were not record of payment. of providers to meet the campaign’s air tions to separate the purported costs reported on campaign finance reports • A Jan. 31, 2008, flight, in an travel needs. “According to [Gardner] of official state business from expenses resulting in a number of campaign fi- aircraft owned by Agemark LLC in related to her gubernatorial campaign. nance law violations. Stubbs was the Payne, Governor Perdue advised him Hickory, originated in Hickory. Perdue in 2006 that Peter Reichard was work- law partner of Perdue’s late former ‘Gifts to the state’ was picked up in Chapel Hill, flown to husband; his eight-member firm con- ing with Buzzy Stubbs to obtain air- Concord, and then delivered back to tinues to bear the name Stubbs & Per- craft providers for the Perdue Commit- In October 2010, Perdue spokes- Chapel Hill. The trip was listed as of- due. tee flights,” Strach’s report said. Payne woman Chrissy Pearson acknowl- ficial state business, but no value was Caldwell, a former chairman of is a Raleigh attorney who raised funds edged the flights and told CJ that the stated for the flight, and there is no re- the board of Western Piedmont Com- for the Perdue campaign. office of the lieutenant governor treat- cord of a payment from the lieutenant munity College, was charged with The report said that when Perdue ed the free flights for official state busi- governor’s office or the Perdue cam- causing the Perdue campaign commit- “needed to travel on private aircraft,” ness as “gifts to the state” from those paign committee. tee to file false reports and obstruction one of two members of the lieutenant providing the flights. She said provid- Recent attempts to speak to Per- of justice. governor’s staff would locate a provid- ers would qualify for some type of tax due officials about the use of private Caldwell’s indictment states that er. The staffers were Carol Young, Per- credit or deduction. aircraft for official business were not he solicited and accepted a check from due’s official scheduler, and Ann Kan- More than 20 free official busi- successful. CJ PAGE 16 JANUARY 2012 | CAROLINA JOURNAL Interview Palmer: Our Problems Result From Cronyism, Not Capitalism

By CJ Staff RALEIGH he Occupy Wall Street protest- “[The occupy protesters] will live lon- ers and their imitators across ger than any previous generation. I the country have aimed much of theirT wrath at capitalism. But a recent won’t say they’ll be better educated, book offers a different perspective. It’s titled The Morality of Capitalism: What but they’ll be longer schooled than Your Professors Won’t Tell You. Editor Tom Palmer is executive vice president any generation in human history. They for international programs at the Atlas have more access to material goods, Network and senior fellow at the Cato Institute. He discussed the book’s key health care, everything. You name it. themes with Mitch Kokai for Carolina Journal Radio. (Head to http://www. And they’re complaining about pov- carolinajournal.com/cjradio/ to find a station near you or to learn about the erty. That’s a bit ironic.” weekly CJ Radio podcast.) Tom Palmer Kokai: Capitalism really has Senior Fellow come under fire for centuries, but in The Cato Institute recent weeks and months we’ve heard quite a bit about capitalism, and peo- ple are calling it an evil force and a force that has led to problems around the world and in the United States. It sounds like, from the title of your I won’t say they’ll be better educated, er people. If you want something that trol. Then, the group — the religion, book, you disagree. but they’ll be longer schooled than someone else has, there are at least two the sect, the race, the class, the tribe any generation in human history. They ways to get it. One is go whack them who can get control of the state — uses Palmer: Yes, I think that those have more access to material goods, in the head and take it from them. The it to plunder and harm everyone else. criticisms are in fact confused and health care, everything. You name it. other way is to offer an inducement, But under capitalism, people enter to- based on factual mistakes. Let’s take And they’re complaining about pov- something that would cause the per- gether into the market as moral equals the very first point. Something is on tri- erty. That’s a bit ironic. son to voluntarily exchange it. You’ll in exchange for mutual benefit. al. Something caused the current eco- Finally, if you want to look at in- pay money for it. You’ll exchange ser- So we owe religious freedom to nomic crisis that has gone global. What come or asset disparities, the big ones vices. Those are based on respect for capitalism. No capitalism, no religious was it? Was it free-market capitalism? are not within relatively free-market other people, so at the heart of free- freedom. We owe such things as the lib- Well, if you look at the causes — Feder- societies like the U.S., Canada, West- market capitalism is the idea that peo- eration of gay people to the experience of private property; they didn’t have to al Reserve system pumping out cheap, ern Europe, Japan. The big gap in the ple matter, that you have obligations go to some kind of state entertainment easy money and setting interest rates world is between those societies that to other people to respect them. That’s establishment. They could have gay in negative territory, which is really not have embraced free-market capitalism very important and should not be tak- bars where they could come and meet something private banks do. Normally, to a greater extent and those that have en for granted. Other systems — com- and socialize among themselves. That you pay the bank to borrow; the bank not embraced it or have rejected it. The munism, fascism, all these other anti- liberated people from those kinds of doesn’t pay you to borrow, which is gap is staggering. You want to see pov- capitalistic systems — are based on the social controls. And then think about what the Fed was doing. Now, Fannie erty? Go to socialist countries. Go to idea that people are means to the ends all of the other ways in which human Mae and Freddie Mac, these are gov- countries that do not have market in- of other people, rather than being ends beings are diverse. There’s something ernment-sponsored enterprises. The stitutions, and there you will see des- in themselves. So that’s the first point. for everyone. You can use an Apple Federal Housing Administration … all titution and poverty. That is an income Second, capitalism teaches you to computer like I do, or you could use of which pumped up a gigantic hous- gap that is a scandal, that is immoral, be respectful to other people. There’s a one of those clunky other things that ing bubble in this country, quite delib- that is shocking, and is caused by the wonderful phrase that the English still other people use. We have free choice. erately, and it popped. And the con- absence of capitalism. use in little stores. You buy something, and they say, “Thank you for your You can go to all kinds of different ed- sequence has been a disaster. Highly ucational opportunities — artistic, aes- Kokai: It’s one thing to say that custom.” That’s what it means to be regulated financial markets meant that thetic, religious. That’s what capital- capitalism is not evil, is not the source a customer. You get this double thank banks were encouraged to load up on ism brings to the human race: respect of our problems. Your book actually you experience. Think about it. You go government-guaranteed, mortgage- for human diversity and respect for the talks about the morality of capitalism into the store, and you buy something. backed securities, and this caused a human person. financial meltdown around the world. as a positive force. In what way is capi- You say, “Thank you.” And the other talism something to be admired for person who sold it to you says, “Thank This is not a problem of capitalism. Kokai: If someone has this view This is a crisis of interventionism and its propensity for helping us be more you.” There’s a double thank you be- in his mind that something that gener- cronyism. So that’s the first point. moral? cause it was an act of respect between ates a dollar has to be suspect, what’s The second point is I think that two people, both of whom benefited your 30-second reply? the Occupy Wall Street protesters are Palmer: Well, the first point is from the exchange. deeply confused. I mean, no doubt that free-market capitalism, to be dis- So fundamentally, it’s about Palmer: Get real. The world is nice people, what I assume is good tinguished from cronyism, by the way teaching people respect, and that has such that we use medium of exchange motives on the part of other people, — most complaints about capitalism spilled over into all of the areas of hu- to facilitate cooperation among per- but I think that they’re intellectually really are about cronyism, and that is a man life. Where does religious tolera- sons, and a dollar helps to achieve deeply and profoundly confused. And feature of state interventionism. Turns tion come from? From socialism? From that. People don’t want the dollar for the irony, of course, is that they’re tex- out, it’s good to be a close friend to communism? From fascism? No. It’s its own sake. It’s for the services and ting each other on their iPhones and the president. You can get a $500 mil- merchants who have taught our so- amenities that it can bring to you in Blackberrys, and going into Starbucks lion loan guarantee like Solyndra did. ciety to be morally tolerant toward voluntary exchange with other people. to freshen up on coffee imported from That’s cronyism, and it stinks, and peo- people of different religions, different If you want to abolish the market econ- abroad. They’re living the lives of fab- ple should be angry about that. That’s races, colors, and so on. It’s capitalism omy and abolish money, OK. We know ulously rich people. This is the richest different from free-market capitalism that has engendered this liberation of what you get: cannibalism. I much generation of human beings who have based on a rule of law. the human spirit and respect for hu- prefer a monetary market economy ever walked the earth. They will live If you look at free-market capital- man diversity. You don’t get that under to cannibalism, but, hey, other people longer than any previous generation. ism, at its foundation is respect for oth- systems where the state exercises con- may differ. CJ JANUARY 2012 | CAROLINA JOURNAL PAGE 17 Higher Education Conservative Breitbart COMMENTARY Why I No Longer Rips Academia at UNC Give to Duke By David N. Bass ernment is ranked 39th out of Tech- Associate Editor norati’s 100 top new media websites. y undergraduate and zations such as the John W. Pope CHAPEL HILL Big Government trails the conserva- graduate years at Duke Center for Higher Education ressed in faded jeans, a T-shirt, tive blog Hot Air and the No. 1-ranked University between 1958 Policy, many other issues in need and a dark sport coat, conser- Huffington Post. andM 1966 were a delight. Through- of reform at Duke came to my at- vative blogger Andrew Breit- Breitbart seldom minces words out the years following my gradu- tention: Dbart looked the part of the disheveled about the traditional media. At the Na- ation, I gave financial support to • Core curriculum: A re- academic at a Dec. 5 speech in the heart tional Tea Party Convention in 2010, he Duke on a regular basis, to annual quired core curriculum, including of the University of North Carolina at railed against the press. “It’s not your funds, capital campaigns, and the such subjects as economics, reading Chapel Hill campus. But his message, business model that sucks,” he said. endowment. and composition, foreign language, filled with Tea Party values, was mark- “It’s you that sucks.” In 1966, I had founded a gar- politics, and government, is no edly different from the typical ap- Breitbart has been at the center den industry-related business that longer the norm. proach taken by liberal professors. of several recent scandals that brought was thriving, and thus I had the • Free speech: In the interest Best known for breaking the down left-wing politicians and causes. means to give back to Duke what I of political correctness, students ACORN prostitution scandal in 2009 In 2009, he joined forces with James so appreciated Duke had given to and faculty may face adverse con- and releasing a lewd photo of U.S. O’Keefe and Hannah Giles to release me in the way of preparation for sequences if they speak contrary to Rep. Anthony Weiner in 2011, Breitbart a series of undercover videos show- life. Beginning in the mid-1970s, I the current university speech code. devoted the lion’s share of his lecture ing ACORN employees’ willingness became actively involved There is a “correct” racial, to ripping what to help establish a in fundraising for Duke. sexual, class, and political he called “the rot” brothel. From 1984 to 1986, I orthodoxy to which one of liberal arts de- He’s become served as chairman of the must adhere. grees. a very public tar- executive committee of • Political indoc- “Our chil- get of liberals, the Duke Annual Fund. trination: It is common dren are gradu- a role he seems But in 1991, I read a for professors to teach ating with the to relish by re- book titled Illiberal Educa- only the “preferred” worst degrees in posting from his tion, written by Dinesh way (their opinion) of the history of hu- Twitter account D’Souza. It includes case thinking about an issue. manity,” he said. (@AndrewBreit- studies on “the politics of ALBERT Research has confirmed “If you have a hu- bart), often with- race and sex on campus” OETTINGER JR that the great majority of Andrew Breitbart on the cover of his book, at some of the nation’s professors have a po- manities degree, Righteous Indignation. out comment, take your com- virulent personal “finest” institutions — litical preference that is parative literature attacks made Berkeley, Stanford, How- liberal and left of center, degree and try and get a barista job in against him by other Twitter users. ard, Michigan, Harvard, and Duke. and that is what is taught. 2011. There is going to be a line around In 2011, Breitbart was the first I learned that a new term had • Western civilization: Aca- the block.” to release a compromising photo of been coined: politically correct. demia rarely requires a course in Breitbart said he was raised a Weiner, a Democrat from New York, Well-thought-of schools were ini- Western civilization, because it re- secular Jew in the west side of Los An- obtained from the lawmaker’s Twitter tiating policies that were intended counts the works of the people aca- geles, a region he described as “Den- account. Weiner resigned from office in to right society’s wrongs, but had demics disdainfully label “DWEM” nis Kucinich bumper sticker” country. June. the opposite effect. For example, (dead white European males). Yet He arrived at Tulane University in During his speech, Breitbart in its bid for “diversity,” Duke had America’s foundations and govern- New Orleans with only one firm belief praised the Tea Party movement and begun to hire its faculty and admit ment are based on those of Western — that everyone in the South, and in advocated a return to Judeo-Christian its students using percentages that civilization. Surely, if one grew took into account racial balance. In up in China, one certainly would middle America, was stupid. He grad- ethics. “The left has stacked the deck, the process, merit was sometimes study the history and philosophy uated with a B.A. in American studies. shut people out,” he said. “There is fi- overlooked. of Confucius — but our own his- “My parents spent $100,000 nally a robust, conservative rebellion Shocked by this book, I tory is disparaged and neglected. in 1991 money, and many of you are against the status quo.” interviewed several tenured Duke • Tuition and costs: Duke’s spending $200,000 in 2011 money, in “Even though I’m secular, I’m professors to find out the extent to operating costs, and thus its order to get an education in the hu- playing softball for the Judeo-Chris- which it was true. The professors tuition, have risen at a far greater manities department that deprives you tian,” Breitbart added. “Their order, verified the accuracy of what I had pace than the Consumer Price of even understanding or even know- their right and wrong, works a lot bet- read. Index. ing what conservatism is on purpose.” ter than the chaos and the nihilism that I recall one comment by Stan- In response to these find- In 1992, Breitbart tuned into talk- manifests itself in the art and the poli- ley Fish, then chairman of Duke’s ings, all my financial support to radio hosts Dennis Prager and Rush tics and all other manifestations of the English department: “There is no the school ceased, and Duke was Limbaugh, and his views began to left. Show me one place where the left such thing as free speech.” That removed from my will. change, as did his life. believes in free speech and lets it hap- was most disturbing to me, as the Since then, I have become “I was a default liberal until a pen in its natural light.” university environment has tradi- an advocate of higher education few things started to happen in my life He also praised conservative in- tionally lent itself to free expres- reform, and all the funds that had when I realized there was a different roads into the media through nontra- sion. But speech codes had become been going to Duke (and then way to look at things,” he said. “I had ditional means, including blogs. de rigueur. some) have been redirected to been an insomniac my entire life, and “The strength of what I do comes I then joined an organization, organizations whose objectives are once I stopped embracing moral rela- down to one trait that I’d like to teach now called the American Council to achieve academic excellence in tivism and started believing in right all of you — and that is to be very pet- of Trustees and Alumni or ACTA, higher education. CJ and wrong, it just solved my insom- ty,” he said. “There isn’t a kindergar- which is devoted to promoting nia.” ten teacher, a corrupt union member, a excellence and reform in higher Albert Oettinger Jr. continues Breitbart is the linchpin of sev- congressman, a city council member, a education. to be active in the garden industry- eral top-level right-wing websites, corrupt toddler that I’m not willing to Through ACTA and organi- related firm he founded in 1966. among them Big Government, Big out, because it’s fun, quite frankly. I’m Hollywood, and Breitbart.tv. Big Gov- petty, and I do it because it’s fun.” CJ PAGE 18 JANUARY 2012 | CAROLINA JOURNAL Higher Education Campus Briefs Bauerlein: A Lot of Academic Research is Waste hile spring is the tradi- By George Leef books are rarely even cited by other office hours as an infringement,” wrote tional commencement Contributor academics, much less read by students. Bauerlein in a piece published in the season, universities RALEIGH During his talk at a recent conference, Dec. 4 Chronicle of Higher Education. It Wacross North Carolina also hold fall n iconoclastic English professor Bauerlein said that discussions he’s appears, however, that working with commencements. Perhaps because at Emory University has issued had with university librarians con- undergraduates is one of the first cor- these ceremonies are smaller, they a new report arguing that a lot firm that students almost never check ners to be cut when publishing is para- usually lack the overtly political ofA literary research is a waste of time. out scholarly books and articles. In his mount. speakers typical of spring gradua- Mark Bauerlein, known for his book view, the “publish or perish” regime In that article, Bauerlein de- tions. But this year North Carolina The Dumbest Generation, makes the has substantial explicit costs, but mini- scribes “a hefty article on a canonical State University scheduled a con- case that humanities professors could mal benefits. English poet, published 10 years ago in troversial political figure, Rajendra use their time much more effectively There are also substantial implicit a distinguished journal,” one that ap- K. Pachauri, to headline its Dec. 19 if there were less pressure on them to costs, he contends. All of the time and pears to be, says Bauerlein, “learned, commencement. publish. effort that professors have to devote wide-ranging, and conversant with Pachauri, an alumnus of N.C. Bauerlein’s report, titled “Liter- to research and writing could be used scholarship on the poet and theoretical State, has served as chair of the In- ary Research: Costs and Impacts,” of- more productively if they weren’t ob- currents in literary studies.” He found tergovernmental Panel on Climate fers evidence that college professors ligated to fill up pages. Bauerlein criti- only nine citations in Google Scholar, a Change since 2002. (and many cizes the fast search engine that collects references to The IPCC is the United who aspire and increas- academic articles. Given the effort that Nations-based organization that to become ingly heavy undoubtedly went into that article, the makes policy recommendations on p r o f e s s o r s pace of pub- result seems underwhelming at best. global warming, a topic that has but never lication re- Bauerlein is not alone in criticiz- turned from a scientific issue to a make it) quired for ing the “publish or perish” require- divisive political one. As head of spend great p r o f e s s o r s ment. Other observers of higher edu- the IPCC, Pachauri shared the spot- a m o u n t s who want to cation, both liberal and conservative, light with former Vice President Al of time re- attain tenure. have made the same point. Paying pro- Gore in 2007; they shared the No- s e a r c h i n g “Projects that fessors to research and write obscure bel Peace Prize “for their efforts to topics of won’t fit the books and articles raises the cost of build up and disseminate greater microscopi- deadlines are college substantially, but does under- knowledge about man-made cli- cally narrow a v o i d e d , ” graduate students little or no good. mate change.” scope, then says Bauer- Bauerlein is not against research, Pachauri has come under writing pa- lein in the but thinks the demand for it has be- fire for possible conflicts of- inter pers, articles, study. “Lines come far too great. He isn’t optimistic est between his membership on and books of inquiry that universities will take his advice the board of Oil and Natural Gas that almost no one ever reads. His pa- that have no quick prospect of finding and lower their publication require- Corporation and his involvement per was published in November by the a publisher are avoided. Research be- ments. Schools that did so might suf- in the awarding of research grants. Center for College Affordability and comes less exploratory and provision- fer a decline in their ranking compared Following the retraction of a flawed Productivity. al, and more aligned with prevailing with others. projection about glacier melt in a Professors at research universi- trends and interests.” Until some leading university report for the IPCC, there were calls ties are expected to devote about one Another serious drawback of steps forward to break the logjam, for him to step down as head of the third of their time to research. The current research trends is that the pres- academia is stuck with a research im- organization. He has rejected those average English department faculty sure to publish also keeps early-career perative that is high in cost and low appeals. salary at the four universities Bauer- academics from devoting much time in benefit. CJ Pachauri, who now lives in lein examined was around $75,000, so to their students. “We shouldn’t set a India, received Ph.D.s in industrial each professor was being paid roughly publication schedule that turns them George Leef is director of research for engineering and economics from $25,000 per year for published output. into nervous, isolated beings who end the John W. Pope Center for Higher Educa- N.C. State. In the 1970s, he taught Department heads and deans up regarding an inquisitive student in tion Policy. in the university’s Department of who grew up with the idea that Economics and Business. publishing research is what faculty In contrast, other universities members are supposed to do prob- in the state are relying on their own ably regard the cost of this research professors and local notables to as reasonable — a good bargain. But give students a send-off. At UNC- Bauerlein asks college presidents and Chapel Hill, students will hear trustees to question whether research about the value of the college “ex- should be such a high priority, espe- perience” from Barbara Fredrick- cially because teaching competes for son, a psychology professor who limited university funds. studies positive emotions and hu- The highly specialized research man well-being. that Bauerlein is talking about can be “I hope to convey to our seen in any recent issue of the Chron- graduates that beyond all the di- icle of Higher Education, specifically its rect knowledge they gained here “New Scholarly Books” section. In the at Carolina — the math, the social Nov. 18 edition, for example, under and natural sciences, the arts and the heading “literature,” 16 new books humanities, the professional skills are reviewed. Among them is Postcolo- — they’ll also carry forward with nial Francophone Autobiographies: From them many indirect lessons,” Fred- Africa to the Antilles by University of rickson said. CJ Delaware professor Edgard Sankara. The book “explores the transnational reception of autobiographies by writ- Compiled by Jenna Ashley Rob- ers from Africa and the Caribbean.” inson, outreach coordinator at the John Such books take a lot of hard W. Pope Center for Higher Education work to publish, but hard work is not Policy (popecenter.org). equal to usefulness. Bauerlein’s ma- jor point is that scholarly articles and JANUARY 2012 | CAROLINA JOURNAL PAGE 19 Higher Education Opinion Buckley’s God and Man at Yale Misunderstood 60 Years Later ixty years ago in November, advocate a Chris- their own which is At the time of God and Man at 25-year-old William F. Buckley Jr. tian, pro-capitalist best. Yale’s publication, many alumni still rocked the academic world. With world view. They Issues Buckley thought the university was promoting Smuch fanfare and much annoyance had previously thought this was Christianity and capitalism. Buckley to the academic establishment, the done so, but that in “voodoo,” as he hoped to shock the alumni into action precocious Buckley published his first fact apparently has Higher Education said in a 1966 by pointing out that some professors book, God and Man at Yale. been forgotten for speech building were openly promoting atheism and The book called on Yale to so long that some on God and Man at collectivism. He gave a number of ex- promote both Christianity over athe- modern observers Yale’s thesis. amples, including a history professor ism and capitalism over collectivism. scarcely can credit Such sorting named Ralph Turner. Buckley wrote Yale officials and it. The Hoover through ideas to that Turner was “addressing a large many leading Institution’s Peter Berkowitz, for find truth is not enough, Buckley said number of Yale students every year in intellectuals of the one, wrote on the Real Clear Politics in the book, “since the most casual such fashion as to wean a number of day publicly de- website about “Buckley’s critique of student of history knows that, as a them away from religion by relentless nounced the book, academic orthodoxy at Yale,” with- matter of fact, truth does not neces- disparagement of the whole fabric of but it is credited out acknowledging that Buckley was sarily vanquish.” Buckley thought the Christianity.” The university refused with launching actually trying to reinstate academic university should present all ideas, to fire Turner on the grounds of “aca- Buckley’s career, orthodoxy. then make the case for why the best demic freedom.” a career that Indeed, Buckley ones are, in fact, best. As While Buckley did shock many launched the attacked what he saw as an example, he approv- readers, no alumni revolt ever ma- modern American DUKE the misuse of the term ingly quoted Yale presi- terialized. The upper echelons of conservative intel- CHESTON “academic freedom,” dent Charles Seymour’s academia largely have been lost to lectual movement. which was then (as approach to teaching conservatives ever since. In fact, not The anniversary, now) used as a battering about communism: “I only are Christianity and capitalism therefore, is a sig- ram against traditional am sure that Communist not the prevailing doctrines anymore, nificant one, and a number of influ- values. ideas ought not to be out- but entire academic departments have ential scholars took time to mark the Academic freedom lawed from college teach- been established — women’s studies, occasion. is a bit difficult to define; ing. Rather they should human sexuality, African-American What some of the commemora- generally speaking, it be analyzed, discussed, studies, etc. — espousing political po- tions missed, however, was that God means the freedom of and deflated [i.e., shown sitions directly opposed to the conser- and Man at Yale was not an attack on the researcher to pursue to be faulty].” vatism Buckley championed. political correctness in the academy truth wherever it takes Buckley asserted However, thanks to Bill Buck- or a call for more diversity of ideas on him. But some of the that a private university ley’s work outside the academy, there campus — the kinds of critiques that people who run our na- should be committed to are those who continue to make the conservatives level at academia today. tion’s universities have forwarding particular case for the reinstatement of tradi- It was, in truth, a call for a restored taken this to mean that a knowledge and values tional values. For that, we should be conservative orthodoxy. “I hasten to university never can em- “at the expense of some grateful to Bill Buckley and his defi- dissociate myself,” wrote Buckley, brace any particular idea points of view” (empha- ant assertion, 60 years ago, that God “from the school of thought, largely as true and therefore must present all sis his), or else it would lose its sense should still be revered at Yale. CJ staffed by conservatives, that believes ideas to students as equal. In such a of mission. “It is a terrible loss, the teachers ought to be ‘at all times neu- system, students are supposed to sort loss of a sense of mission,” Buckley tral.’” through the various ideas — from wrote in the introduction to the book’s Duke Cheston is a writer/reporter Buckley wanted the nation’s economic systems to belief systems to 1977 edition. “It makes the private for the John W. Pope Center for Higher most prestigious universities to scientific concepts — and decide on university, sad to say, incoherent.” Education Policy. PAGE 20 JANUARY 2012 | CAROLINA JOURNAL Books & the Arts

From the Liberty Library Book review

• Picture this: an America with intense political partisanship, crush- Folsom’s Book Portrays FDR As Devious Opportunist ing national debt owed to foreign nations, citizens losing their homes • Burton W. Folsom Jr. and Anita Folsom, FDR Goes to War: the nasty tactic of using taxpayer dollars to buy votes from to foreclosure, and a nation in danger How Expanded Executive Power, Spiraling National Debt, and interest groups. Our massive federal budget and looming of separating at the seams. Restricted Civil Liberties Shaped Wartime America, New York: debt avalanche today are a result of that. No, it’s not 2011. It’s 1789, and Threshold Editions, 2011, 384 pages, $27.00. Apologists for Roosevelt say that the Japanese attack the fate of America as a young nation on Pearl Harbor took him completely by surprise, but the rests on the race for the congressional By George Leef Folsoms present a much more complicated picture. First, seat in Virginia’s 5th District. Contributor Pearl Harbor had not been the base for the American Pa- In Founding Rivals: Madison RALEIGH cific Fleet until FDR had ordered it there late in 1940. The vs. Monroe, the Bill of Rights, and the illsdale College history professor Burton Folsom fleet commander, Adm. James O. Richardson, protested that Election That Saved a Nation, author and his wife Anita have given a much-needed the fleet would be vulnerable there, so FDR relieved him Chris DeRose reveals one of the counterweight to the standard view that Franklin of command shortly after the November election had been most important but untold stories in D.H Roosevelt was one of the greatest American presidents. won. American history — the tale of the After reading FDR Goes to War (and I also recommend Fol- Second, FDR refused to heed the counsel of military high-stakes political battle between som’s earlier book, New Deal or Raw Deal?), anyone who men who said that the nation’s armed forces were ill-pre- two future presidents: James Madi- isn’t an utter zealot for our welfare-warfare state will have pared for war and that we should not underestimate the son and James Monroe. to conclude that FDR’s years of control over the nation were capabilities of the Japanese. Nevertheless, Roosevelt kept Friends and political allies for nothing short of cataclysmic. on with his bellicose policies while doing little to make the most of their lives, Madison and This new book examines Roosevelt and his adminis- armed forces ready for the war he desired. The president Monroe found themselves on oppo- tration from 1939 on as war engulfed Europe, an event that also continued to believe that a war with Japan would be site sides of the battle over the Con- gave FDR an opportunity to reinvent himself as a wartime over in a mere six months. stitution and the fate of a fledgling leader. The war was truly a godsend for him since many The authors don’t go so far as to say that Roosevelt nation in the extraordinary story of Americans had grown tired of the De- knew ahead of time, from the Japa- their 1789 congressional race. pression (which FDR’s statist policies nese diplomatic transmissions we had This was a race that determined had greatly prolonged) and the elec- intercepted and decoded, that an at- the future of the Constitution, the Bill tion of 1940 looked to be very difficult tack on the base would occur Dec. 7. of Rights, and the very definition of for the president. They do say, however, that from those the United States of America. Learn As war raged, FDR had to walk intercepts, he must have known that more at www.regnery.com. a tightrope. Most American citizens an attack was imminent on Dec. 6 and did not want the country to be drawn that Pearl Harbor was a possible tar- into conflicts that did not threaten our get. shores. Therefore, FDR had to pretend Another of FDR’s executive or- • The intellectual and political that he desired to maintain our neu- ders led to the most egregious attack elites of the West take for granted that trality, while at the same time doing on Americans’ liberty and property religion, in particular Christianity, is all he could to aid Britain and desper- during the war years: the internment a cultural vestige, a primitive form ately seeking an excuse to enter the of Japanese-American citizens under of knowledge, a consolation for the war. another of FDR’s many executive or- weak-minded, and an obstacle to In his speeches and avuncular ders. Tens of thousands were forced peaceful coexistence. Liberalism is “fireside chats,” Roosevelt reassured into detention camps without the considered to be “free-standing,” Americans that he was not going to get slightest pretense of due process of and the Western, liberal, open society the country involved in the war. “But law. There was no evidence that any is taken to be “self-sufficient.” behind the scenes,” the authors write, of those people would or could aid In Why We Should Call Ourselves “Roosevelt wanted the United States the Japanese military. But with anti- Christians, Marcello Pera reveals involved in the war,” and they quote Japanese hysteria raging after Pearl that not only is this wrong, it is his speechwriter, Robert Sherwood, as Harbor, Roosevelt did not hesitate to also dangerous. The very ideas on admitting that his statements “may be order that a great number of these in- which liberal societies are based denounced as deliberately misleading nocent men, women, and children be and by which they can be justified or at best wishful thinking.” Roos- imprisoned under his “emergency are distinctively Christian or, more evelt’s policy was one of quietly preparing for war and put- powers.” precisely, Judeo-Christian. More at ting American naval forces in danger, hoping that Germany Why was there no internment of German-Americans www.encounterbooks.com. would be provoked into creating a casus belli. or Italian-Americans? “In Roosevelt’s political calculation, A key, recurring theme in the book is the way FDR he wanted votes from German-Americans and Italian- would ignore the law — even the Constitution — when do- Americans,” the authors say. “He also wanted to carry Cali- ing so helped him accomplish his goals. One example is the fornia and the western states. By relocating only the Jap- • America was born out of deal he struck with the British in September 1940, wherein anese-Americans, he could please native Californians and a bloody revolt against tyranny. the United States would trade 50 Navy destroyers for Brit- not offend the many ethnic Germans and Italians he would ish military bases from the Caribbean to Newfoundland. need to win re-election in 1944.” Yet almost from its inception, the There were, however, two legal problems with this Despite Roosevelt’s failing health, he resolved to run government here has suppressed deal: The Constitution gives the president no authority to in 1944. During the campaign he gave a speech in which liberty. In It Is Dangerous to Be Right make such deals unilaterally, and doing this one violated he proposed an “economic bill of rights” that would put When the Government is Wrong, his a federal statute, the Neutrality Act. Roosevelt was fully the federal government in the business of ensuring every sixth book on the Constitution and aware of the illegality involved but went ahead anyway American’s “right to medical care,” “right to decent hous- human freedom, Judge Andrew through an “executive agreement.” He admitted to his close ing,” “right to a good education,” and so on. That speech P. Napolitano asks: Where does confidant Bernard Baruch, “I might get impeached for it.” indicated Roosevelt’s intention to revive his “New Deal” freedom come from? How can gov- The destructive idea that the president must be allowed to domestic agenda with a great expansion of entitlement pro- ernment in America exercise power do whatever he thinks best no matter what the law says is grams after the end of the war. that the people have not given to it? one of the most lasting and harmful legacies of FDR. He did not live to push that agenda through, however. Napolitano gives a sweep- The presidential campaign of 1940 was a model of Roosevelt died in the spring of 1945. Far from the brilliant ing treatment of natural rights what Richard Nixon would later call “maximizing the in- and almost saintly leader that most historians and politi- and the principles that under- cumbency.” Throughout the campaign, FDR’s allies in the cians see, FDR was a devious man who was really good score human freedom. More at bureaucracy steered government contracts into swing states at only one thing — winning elections. CJ CJ www.thomasnelson.com. with great fanfare and the implication that if the president were defeated, the federal goodies would stop. He perfected George Leef is book review editor of The Freeman. JANUARY 2012 | CAROLINA JOURNAL PAGE 21 Books & the Arts N.C. Entertainers Profiled on N.C. History Project Website an you name some famous entries. The 1972 film “Deliverance” nal Gold Medal. native North Carolina enter- Charlie Poole: A Randolph renamed Smith’s “Feuding Banjos” One of the more popular Ameri- tainers, celebrities, writers, or County native, a semi-pro baseball without his permission. Smith sued, can short-story writers was from Cathletes? Maybe you instantly thought player, and later a Columbia Records won, and received a constant stream Greensboro. William Sidney Porter, of Michael Jordan, Sugar Ray Leon- recording artist, this banjo player of royalty checks thereafter. also known as O. Henry, started out ard, or Dale Earnhardt Sr. (or maybe lived a rough-and-tumble life in the Billy Graham: The most recog- his adult professional life as a bank Jr., too). Maybe Piedmont’s cotton mill village culture. nized evangelist of the 20th century, teller. Bored with his job, he started you recalled Even so, he was known as “the best Graham’s far-reaching ministry began a magazine, The Rolling Stone, and numerous other banjo-picking player in the Caroli- in 1949. With eloquence and simplic- embarked on a writing career. His life NASCAR legends nas.” Along with his band, The North ity, the Mecklenburg County native was controversial at times: He drank or media person- Carolina Ramblers, he traveled the spoke to millions across the United whiskey like water, and his former alities such as Southeast and popularized his unique States, Europe, and even communist bank employer accused him of em- Edward R. Mur- finger-picking style with hits such as countries over six decades. bezzlement. row or Charles “Sweet Sunny South,” “White House Graham’s weekly radio program He was found guilty of em- Kuralt or Howard Blues,” “He Rambled,” and “Take a “Hour of Decision” was broadcast on bezzlement and incarcerated for five Cosell. Jazz en- Drink on Me.” He died at 39, but in more than 800 stations in the United years. In the penitentiary, he started thusiasts may list his short life, Charlie Poole developed States. He also served as counsel using the O. Henry pseudonym. Once Thelonius Monk TROY a style that banjo players still try to to several presidents, starting with a free man, he moved to New York or John Coltrane. KICKLER copy. Dwight D. Eisenhower. Graham City to advance his career, yet his Or if your musical Arthur “Guitar Boogie” Smith: was not beyond criticism, however. early life in North Carolina continued tastes are a little He was son of a poor South Carolina Hardliners objected to Graham’s ef- to influence his stories. different, you may list Firehouse or mill worker. As a young professional, forts to alleviate the tension between Some of his most popular short Ben Folds Five or Randy Travis. he moved to Charlotte and emerged Protestants and Catholics, primarily in stories are “The Gift of the Magi” and Maybe the poets and writers think of as one of country music’s brightest Ireland. “The Ransom of Red Chief.” I still Maya Angelou or Thomas Wolfe. stars. His singles, including “Guitar But millions appreciated his remember reading “The Gif of the North Carolina is the birthplace Boogie” and “Feuding Banjos,” sold ministry. Not only was Graham Magi” in elementary school. I enjoyed of or home to many famous people. millions of copies, and millions more knighted in Britain in 2001 for his reading his stories more than eat- Their personal histories are being tuned in to his radio and television service to religion and civility, but ing the candy bar “Oh Henry!” Now recorded on the website northcaro- programs. His “Arthur Smith Show” the preacher also received illustri- that’s saying something! CJ linahistory.org. There you will learn started in 1951 and ran for nearly ous awards from his home country, how famous Tar Heels contributed to 30 years. It featured musical guests including the Ronald Reagan Founda- Dr. Troy Kickler is director of the Southern and American culture. Here including Loretta Lynn and Johnny tion Freedom Award, the Templeton North Carolina History Project (northcar- is a brief description of some new Cash. Foundation Prize, and the Congressio- olinahistory.org).

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 PAGE 22 JANUARY 2012 | CAROLINA JOURNAL Books & the Arts

Short Takes on Culture Book review ‘Way’ Has Emotional Depth ‘Painting’ Overtaken By Events • “The Way” and enjoying this sequel. We get to • Glenn Feldman, ed., Painting Dixie In Defense of Government, E.J. Dionne Directed by Emilio Estevez know all of the characters better and Red: Where, When, and Why the South Jr.’s Why Americans Hate Politics, and Arc Entertainment watch their friendships deepen. Real Became Republican, Tallahassee, Fla.: Thomas B. and Mary D. Edsall’s Chain character development occurs in Po University Press of Florida, 2011, 360 Reaction offer intelligent and nuanced n the arc of a life there are many as he struggles with the realization pages, $74.95. if ultimately wrong-headed views of intersecting arcs — of other lives, that he is adopted. the interaction between race, culture, purposes, destinations, quests, The film is rated PG for martial By Rick Henderson economics, and politics. These books Iand dreams. Even where they coin- arts action and mild violence, with Managing Editor were published nearly 20 years ago, cide, they are unique and personal. scenes younger children could find RALEIGH and they offer a more useful and con- In the film “The Way,” one frightening. Eastern religion is inter- f you’re in the middle of a lengthy temporary perspective than almost man discovers that he has lost his woven throughout the movie. project, one of the worst things that anything you’ll find in Painting Dixie estranged son who had just embarked I heartily recommend this se- can happen is to have the thrust Red. on a pilgrim’s journey called “El quel for older children and adults. ofI your work overtaken by events, What really mucked up Feld- Camino de Santiago.” On the first day Keep watching after the credits; the rendering it outdated if not obsolete. man’s story of continuity was the rise out, the son dies in a freak snowstorm door is left open for a third install- That may be the realization that came of Tea Party politics in the South and in the French Pyrenees. Summoned ment. If they decide to make even to historian Glenn Feldman, editor of elsewhere. Feldman makes a brief, from America to recover the body, the more money from this story, I look Painting Dixie Red, as the result of po- snarky comment about Kentucky Sen. litical developments be- Rand Paul in the intro- father (Martin Sheen) learns for the forward to the sequel to “Kung Fu tween 2008 — when he duction, but the Tea Party very first time of El Camino: what it Panda 2” with pleasure. began putting together this receives a mere four men- is and what it signifies to those who — AMANDA VUKE collection of essays — and tiones — which is kind of travel to complete it. the fall of 2011, when the important, because several The Camino is a pilgrim’s walk University Press of Florida Tea Party heroes hardly fit toward the place believed to be the published it. the white-hooded stereo- burial site of St. James the Apostle, • The Narcissism Epidemic: Living in Feldman and his con- type Feldman, et al., insist now the Cathedral de Santiago de the Age of Entitlement tributors — primarily aca- dominate the Republican Compostela in northern Spain. By Jean M. Twenge and W. Keith demic historians — wanted South: Black U.S. Reps. On one level, it is a religious Campbell to tell a story of continuity. Allen West (Fla.) and Tim pilgrimage, though some pilgrims Free Press While acknowledging “the Scott (S.C.), Cuban-Ameri- are not religious. Fellow travelers massive influx of Yankees can U.S. Sen. Marco Rubio meet, part, and meet again along the Is the United States doomed to into the burgeoning Sun- (Fla.), Indian-American route, forming bands of companion- fail under the strain of narcissistic belt cities” and “despite the Gov. Nikki Haley (S.C.), ship — but also of discord, struggle, behaviors? Jean Twenge and Keith transition from cotton belt and, of course, another and self-examination. The “Why’s?” Campbell don’t go that far in The to skyscraper,” and “the Indian-American, Louisi- are many. Narcissism Epidemic, but they do crack fact that the South is now Republican,” ana Gov. Bobby Jindal, who recently Sheen’s character has decided to open a window into American culture these essays argue that “the South has won his second term running virtually walk the route of his son (played by and reveal an unsettling vista. still never really changed” (emphasis in unopposed in a state that was a Demo- Emilio Estevez, Sheen’s actual son), Narcissism, as defined by the original). cratic stronghold a decade ago. placing ashes of the cremated remains authors, is a preoccupation with And what hasn’t “really Remember: Tim Scott defeated at points along the path. Without “material wealth, physical appear- changed”? The region’s endemic rac- Strom Thurmond’s son in the GOP understanding why his son intended ance, celebrity worship, and attention ism. “The South’s partisan realign- congressional primary. If that didn’t the pilgrimage, the father and several seeking.” Narcissists love the sound of ment from Democratic to Republican blow up this book’s thesis, nothing off-again, on-again companions reach their own voices and their reflections is about race,” Feldman writes. “The much could. Compostela. And there, the father’s in the mirror, making one ponder why southern outlook is more than just a Other sins of omission abound. own quest begins. the word is not synonymous with ‘white backlash’ to civil rights; it is an There’s no mention of the reform- — KAREN PALASEK “politician.” ethos, a mentalité, a world view.” minded, business-oriented (dare I The authors cover the narcis- The Republicanism of the South say?) post-racial Republican governors sism epidemic from a variety of is “radical in the extreme: uber-patrio- and legislators of the 1980s who laid angles: from parenting to Facebook, tism to the point of talking about the the groundwork for the party’s South- • “Kung Fu Panda 2” mortgages to facelifts, the rise of in- use of nuclear weapons and defending ern leaders of today. Without Lamar Directed by Jennifer Yuh Nelson civility to the decline of work ethic. torture; laissez-faire and pro-business Alexander, Jim Martin, Carroll Camp- DreamWorks Animation It’s a depressing, though accurate, to the point of neoliberalism, Austrian bell, Connie Mack, and — yes — Newt diagnosis. economics, the Chicago school, and Gingrich, such contemporary figures “Kung Fu Panda 2” opens with The authors’ solutions to the the implied nihilism of F.A. Hayek, as Jindal, Bob McDonnell, George W. the Dragon Warrior continuing his problem are trite. Often they involve Ayn Rand, and Milton Friedman; and and Jeb Bush, and Haley Barbour may training with friends and fellow kung government overreach, when in fact fundamentalism not only religious and never have risen to positions of region- economic.” al and national leadership. fu heroes. Little do they know that the real solution lies with families and Oh, my. George W. Bush appears several an unremembered foe with a secret churches. One of the main points at The premise of the book is that times, but primarily as president rath- about Po’s past is about to threaten which their prescription is correct, Republicanism=small-government er than governor of Texas. You get the not just the Valley of Peace, but all however, is calling for more gratitude conservatism=racism, and that the point. of China and kung fu itself with his in American life. South became the perfect petri dish to Yes, there’s a romanticism of unstoppable weapon. “Gratitude is the opposite of incubate that filthy virus. the South that has no equal in other In order to save everything he entitlement: you think about what Rather than try to dissect all the regions of our nation. The legacies of loves, Po must look into his past and you already have, instead of what nonsense in Feldman’s thesis — let slavery, segregation, and civil rights find inner peace to bring balance you deserve to have but don’t,” the alone the cluelessness expressed in the are deeply intertwined in that story. back to life. authors write. essays that follow — it’s important to But there’s much more to the South “Kung Fu Panda” (the first The denizens of Occupy Wall acknowledge that several thoughtful than those tales of sin and redemption. movie) was funny. I have low opinions Street — brandishing their iPhones books with a strong left-leaning per- And until left-wing academics awaken of sequels solely created to make more and clothed in designer jeans — spective about the rise of Republicans to this reality, they’ll find themselves money, so I was pleasantly surprised should take that advice to heart. (in the South and beyond) have ap- increasingly isolated on their campus- to find myself genuinely laughing — DAVID N. BASS CJ peared in recent decades. es, irrelevant except for the fact that For starters, Jacob Weisberg’s they’re tenured. CJ JANUARY 2012 | CAROLINA JOURNAL PAGE 23 Books & the Arts Book review Rice’s Second Book, ‘No Higher Honor,’ As Good As Her First • Condoleezza Rice, No Higher Honor: However, Rice’s book is not just 9/11 and the Iraq war, readers will be Rice is a strong woman and a A Memoir of My Years in Washington, about 9/11. She also provides readers surprised at how many other major problem solver as evidenced by her New York: Crown Publishers, 2011, with insight into the eight years of the conflicts and crises Rice dealt with and ability to work effectively among as- 766 pages, $35.00. Bush administration. Rice does more helped solve during her time as na- sertive, powerful men and women. than talk about being national security tional security adviser and secretary of She also has an exceptional work ethic. By Melissa Mitchell adviser and secretary of state; in ad- state. After 9/11 she accepted the fact that Contributor dition, she provides a job description. Early in the book, Rice takes the she must work 17- and 18-hour days. RALEIGH When discussing the National Security media to task. “The tendency of jour- After she became secretary of state, she hen it was announced that Council, she tells how it was estab- nalists to take a kernel of truth and realized that she had to be careful not Condoleezza Rice was writ- lished, identifies the members of the turn it into a full-blown scoop is one to work 24 hours a day, which at times ing her memoirs and that commission, and how that I came to know was a temptation as she was single and Wshe would take two books to do it, the NSC functions. well — and suffer from had no family obligations. I thought that it might be overkill. I Throughout the throughout my eight At times the book is gut-wrench- was wrong. Two books are needed to book, she discusses the years in Washington,” ing, especially as Rice describes her chronicle the life of this extraordinary Cabinet members and she said. feelings immediately after 9/11. This woman. their duties, often pro- This attitude is still section shows the very human side of At the end of her first book, Ex- viding fascinating in- evident today as media this strong woman. Throughout the traordinary, Ordinary People; A Memoir formation about their reviewers assess books book, she often looks at certain situa- of Family, Rice is entering the Bush roles and functions. written by members of tions and wonders if she might have White House to assume her position For example, the State the Bush administration. done better; for example, she was trou- as national security adviser and is la- Department has 57,000 When this volume of bled by charges that the administra- menting the fact that her parents did employees worldwide, Rice’s memoirs became not live to see her working at the White and the secretary of state available, the media tion lied about the presence of weap- House. oversees all of them. The made a headlong rush ons of mass destruction in Iraq; Powell Ironically, she opens her second secretary of defense is to try to unearth conflict felt that his forceful argument for that book, No Higher Honor: A Memoir of My in charge of 700,000 ci- between the members of position tarnished his reputation and Years in Washington, on her last day as vilians at the Pentagon; the administration and image. Secretary of State. As she walks down military personnel in- Rice. She tells of dis- Not only have I gained addi- a hall to meet with the Israeli foreign clude hundreds of thou- agreements about policy, tional respect for Rice, but also a new minister one last time, she is thinking, sands more. but these disagreements always lead to respect for President Bush. The reader “My, you’ve lived a lot of history.” Rice offers a wealth of back- a better resolution of the problem and sees a president who is engaged fully At that point, the book returns to ground information about every dip- show very strong presidential leader- in protecting the country. Although 9/11, which becomes the cornerstone lomat and country she writes about, ship. many foreign policy decisions had to of her tenure as national security ad- along with the significance of the re- Most of the people that Rice is be made quickly, Rice said there were viser. She takes herself to task, noting, lationship between the United States working with — George W. Bush, Vice no rushes to judgment. Unfortunately, “Protest as you might to yourself, to and that nation. For example, when President Dick Cheney, Colin Powell, the media’s constant desire to present the nation, and to the world, you nev- a conflict arose between India and and Donald Rumsfeld — have strong a negative picture of the Bush admin- er get over the feeling that you could Pakistan in December 2001, Rice gives personalities, which is why they are istration overlooked the many foreign have done better. And you resolve nev- a quick snippet of historical informa- successful. But there is a maturity policy achievements during Rice’s ten- er to let it happen again.” Throughout tion about the often-volatile relation- about Rice that accepts each person’s ure in the administration, both as na- her time as national security adviser, ship between the two countries. She distinct personality. Rice is honest tional security adviser and secretary of she considered this a constant goal. also provides information about each about Rumsfeld and Powell’s dis- state. During the Bush administration, 9/11 nation’s leader, and the fact that both agreements and says, “It was my task Condoleezza Rice has penned would impact every policy decision countries have nuclear arsenals. to work around the personal distrust two entirely different books, and the both nationally and internationally. Because of the prominence of between the two men.” second is as good as the first. CJ Books authored By JLF staFFers Free Choice for Workers: Selling the Dream A History of the Right to Work Movement Why Advertising is Good Business

By John Hood President of the John Locke Foundation By George C. Leef Vice President for Research at the John William Pope Center for Higher “[Selling the Dream] provides a Education Policy fascinating look into the world of advertising and beyond ... “He writes like a buccaneer... Highly recommended.” recording episodes of bravery, Choice treachery, commitment and April 2006 vacillation.” Robert Huberty www.praeger.com (Call Jameson Books, 1-800-426-1357, to order) Capital Research Center PAGE 24 JANUARY 2012 | CAROLINA JOURNAL Opinion

COMMENTARY The Right Recipe For Poorest of the Poor efenders of free markets like he says. “But that doesn’t mean we to use analogies involving can’t even up the size of the slices pie. Perhaps they believe the within that larger pie. The last few wayD to a man’s brain is through his years notwithstanding, the Ameri- stomach. Perhaps they hope to ap- can economic pie always has grown peal to iconic American traditions. bigger over time. Distributing the (You know the song: “Baseball, hot larger pie a little more evenly seems dogs, apple pie, and Chevro. …” like a worthwhile solution.” Well, never mind.) If market critics are correct, Or perhaps the pie example their policies — those that lead to seems to offer a simple means for less economic freedom — should expressing a not-so-simple eco- allow the poorest members of our nomic concept. While left-leaning society to earn a larger share of pundits and politicians focus on the nation’s income. But the Fra- slicing an economic pie ser Institute’s Economic in different ways to meet Freedom of the World 2011 EDITORIAL their definition of fair- Annual Report tells a dif- ness, those who tout ferent story. market-based solutions Split nations into focus instead on creating four groups based on Flight Plan a larger economic pie for economic freedom, and everyone. calculate the share of in- It’s pretty clear that come earned by the poor- Clear as Mud when you slice a small est 10 percent. In the most pie and an extra-large pie economically free coun- e’ll give Gov. Bev Perdue staffer Juleigh Sitton. Sitton, a Mor- in the same way, one slice of MITCH tries, the “bottom 10 percent- credit for operating a more ganton attorney, later ran Perdue’s the extra-large pie is larger KOKAI ers” earn 2.6 percent of the open and transparent western North Carolina office. She than one slice of the small nation’s income. That sounds Wadministration than her predecessor, also was indicted in this scheme. pie. In other words, a larger pie bad? In the least free countries, the Mike Easley. Then again, Easley set Reichard’s attorney says his gives you more to eat, even if your “bottom 10 percenters” collect 2.4 the bar so low that any unscripted client will grant no interviews on the “share” of the pie hasn’t budged. percent of the nation’s income. interaction with the press or the public matter. Market advocates believe you Maybe there’s a sweet spot has been appreciated. The third person with intimate create the conditions for larger pies between the most free and least When it comes to allegations of knowledge of the aircraft provider by promoting economic freedom. free countries. Like Goldilocks, we finance violations by the governor’s program, according to the elections Limit the size of government. should pursue the level of freedom campaign, however, Perdue unfortu- board report, is the governor herself. Reduce burdensome regulations. that’s neither too hot nor too cold, nately has doffed a In the report, former Secure property but just right. cone of silence. Perdue attorney rights. Promote Except that The governor’s Gardner Payne said the rule of law. Increasing the size the “bottom 10 longtime friend Tra- that in 2006, he was Ensure access to percenters” earn wick “Buzzy” Stubbs told by then-Lt. Gov. sound money. of the pie about the same may be the last person Perdue that Reich- Promote free amount in the who could offer a ard and Stubbs were trade. middle quar- really does help detailed accounting of working to “obtain Nowhere tiles as well: 2.2 the “aircraft provider” aircraft providers” for in that recipe the bottom percent and 2.3 program he helped Perdue’s 2008 cam- will you find percent. devise for Perdue’s paign. higher taxes, in- 10 percenters In other 2008 campaign. If Perdue has re- creased govern- words, the poor- Stubbs maintains fused to identify who ment spending, est members of silence, the public else was involved or more regulation. You’ll find no society earn about the same per- may never know how with the program, or to distance other policy prescriptions tied to centage of a nation’s income regard- the flights were arranged, what was reconfiguring the size of the exist- less of economic freedom. Free or expected of the people who provided herself from them. “If you were men- ing pie’s slices. This set of policy unfree, they can expect to get about free travel, and what the aircraft pro- tioned by the elections board or were prescriptions leads to less economic 2.5 percent of the economic pie — viders hoped for (and received) from found guilty by the elections board freedom. regardless of the pie’s size. the Perdue administration. it might be one thing,” she said in Offer this argument, and some So how do they get more pie? Stubbs was the law partner of December 2010. “I don’t know that be- critics of market-based thinking will Only when their nation bakes a Perdue’s late former husband. He’s cause the press has written something skip the debate, grab a piece of pie, larger pie. one of three people named in a 2010 about you that you have been proved and go home. Others will complain If you’re concerned with im- investigation by the State Board of of doing something wrong.” that Big Pie has bought and paid for proving the lot of the poorest of the Elections with knowledge of the You’d think Perdue would this analysis (much as Big Oil, Big poor, then the only viable solution aircraft provider program. The board distance herself fully from the people Pharma, and Big Bird have polluted is a larger pie. Your baker’s check- fined the campaign $30,000 for flights who participated in illegal fundraising discussion of other public policy list must include a healthy serving that were reported late or not at all. schemes. At a minimum, she’d want issues). But the intellectually honest of freedom. CJ A second person named, Greens- to prevent a recurrence of lawbreaking skeptic might be willing to play boro businessman Peter Reichard, in and steer clear of shady donors. along. Mitch Kokai is director of December accepted a felony plea for Instead, the governor has shown “I understand that a bigger pie communications for The John Locke using a business he owned to launder a remarkable lack of curiosity about will lead to more pie for everyone,” Foundation. campaign contributions from a donor what happened. So much for trans- to help pay the salary of campaign parency. CJ JANUARY 2012 | CAROLINA JOURNAL PAGE 25 Opinion

EDITORIALS COMMENTARY Governor ‘No’ A Case For Vetoing popular legislation hurting Perdue

ev Perdue is the first North certainly thwarted the act’s real pur- Firing Teachers Carolina governor to make ex- pose — the perpetuation of a de facto f North Carolina policymakers levels that range from a low of one tensive use of the veto power to moratorium on capital punishment. want to boost economic growth half year to a high of one and a half Bchallenge major policy initiatives from To make a statistical assertion of and job creation, they should fire years of learning each academic the General Assembly. By this time racial bias in the administration of the someI teachers. year.” next year, Perdue may also be the first death penalty is not to prove that ra- Now that I have your atten- In his scholarly work, Hanush- modern North Carolina governor to cial bias affected the fate of any given tion, let me emphasize the word ek has found significant correlations lose a re-election bid. criminal. “some.” Most public school teach- between educational attainment If the latter comes about, it partly In fact, the available data do not ers perform satisfactory work in and economic growth — but not will be due to the former. even establish that the racial dispari- a difficult job. Some of them do significant correlations between the Obviously, Perdue’s biggest ties apparent in the statistics are the truly exemplary work or take on level of government spending on political problem is the persistent result of illegal or discriminatory ac- challenging subjects and student education and either student perfor- weakness of the North Carolina tions on anyone’s part. populations. They deserve mance or growth. economy. After years of double-digit Death-row inmates already have greater recognition and Hanushek’s research unemployment, Perdue would be an options for appellate relief should higher pay. does not suggest that underdog for re-election regardless of there be evidence of misconduct in And some teachers unless we replace every the fights she picked with the Republi- their own cases. The reason the Racial are lazy, poorly trained, bad and mediocre teacher can legislature. Justice Act exists is that inmates and ignorant of their subject with an exemplary one, But Perdue has worsened her po- their attorneys have been unable to matter, and ineffective at the education system is litical position by vetoing legislation produce such evidence. managing classrooms and doomed to failure. That that is generally popular among North Perdue’s re-election prospects teaching content. Most of would be impossible. Carolina voters but unpopular among are not strengthened by leftward them should be “encour- Rather than taking on the the left-wing base of the Democratic lurches. Liberal Democrats are go- aged” to find a different daunting task of trying to Party. The most recent example is her ing to turn out in 2012 for President line of work. boost the number of ex- veto of changes to the Racial Justice Obama, if no one else. Most also will JOHN Of course, I have HOOD emplary teachers, it might Act that essentially would have closed vote for Perdue. Her real problem is just described the per- make more sense to start the door to endless appeals by death- among centrist swing voters. formance distribution of by reducing the number row inmates based not on actual By using the veto pen to posi- virtually every other profession, as of atrocious ones. evidence of racial bias during their tion herself for tax increases, for well. There are brilliant, average, If North Carolina wants to trials but on broad statistical claims ObamaCare, against voter ID, and and God-awful doctors and law- improve the rate of return on our about the overall fairness of the North now against the restoration of the yers. There are brilliant, average, education dollars, for example, we Carolina justice system. death penalty, Perdue is alienating the and atrocious journalists, artists, should give principals the tools they Perdue signed the original Racial moderate Democrats and indepen- and entertainers. There are brilliant, need to manage their employees. Justice Act two years ago. While not dents she needs to rebuild an electoral average, and incompetent accoun- That means giving them more con- technically a repeal, the recent bill majority. CJ tants, engineers, and bankers. trol over compensation decisions But only in government- and abolishing tenure. run schools — and, I suppose, in In his article, Hanushek pro- the increasingly government-run jected the potential benefits of such field of Wall Street banking — is a policy by conducting a thought Otherwise Occupied performance routinely unrelated experiment. Suppose it were pos- to one’s job security or compensa- sible to replace the worst 7 percent Most Democrats running from Occupy protests tion. Because of rigid tenure rules of American teachers with those and longevity-based compensation whose skills were simply equal to f you are a current or prospective early Occupy rallies likely had no idea schedules, most schools do not pay today’s average teacher. This seem- Democratic politician in North they were lending support to anarcho- teachers according to demonstrable ingly small change would have Carolina, you are probably either socialists and other revolutionaries. effectiveness, or fire teachers for revolutionary results, by raising Icongratulating yourself at this point They thought they were helping to demonstrable ineffectiveness. the average student performance for staying away from the Occupy make a point about corporate greed or Over time, the distribution of of America to that of Finland, the movement — or nervously trying to economic stagnation. the education work force has taken highest-scoring country in interna- figure out how to distance yourself But, of course, most of them on a different shape than what you tional tests. from it after the fact. went home at the end of those early will find in professions that feature “Closing the achievement gap The Occupy movement was protests. They were not the ones who greater competition for excellent with Finland would, according to largely a creation of freaks, social- stayed behind to “camp.” performers at the top and greater historical experience, have astound- ists, and left-wing kooks. It was not a The ones who remained fit one turnover of poor performers at the ing benefits, increasing the annual creation of small-d democrats. Some of these categories: hard-core radicals, bottom. That’s one reason not to growth rate of the United States by of us recognized that fact from the professional agitators, amateur anar- pump more money into the existing 1 percent of GDP,” Hanushek wrote. beginning. chists, addicts, vagrants, or the deeply system and expect better results. “Accumulated over the lifetime of We’d seen it reflected in the confused. There is an emerging consen- somebody born today, this improve- sus among education researchers ment in achievement would amount anti-republican rhetoric of “occupa- Whatever they may have about the large extent to which to nothing less than an increase in tion” and the anti-libertarian tactics thought about the substance of the Oc- excellent teaching affects student total U.S. economic output of $112 employed by those who sought not cupy message, most Democratic poli- performance. As Stanford Univer- trillion in present value.” simply to argue their point of view ticians and leaders had the good sense sity economist Eric Hanushek put it Even in government account- but to shut up those who disagree. to stay away from these “campers.” in a recent article in the journal Edu- ing, that’s real money. CJ When it debuted, the Occupy Those who stumbled their way cationNext: “Teachers who work in movement drew the attention and into the Occupy movement’s make- a given school, and therefore teach support of large numbers of Ameri- shift communes in search of a fleet- students with similar demographic cans who have legitimate concerns ing media moment may now find it characteristics, can be responsible John Hood is president of the John and intentions. Many of those who difficult to stumble their way out into for increases in math and reading Locke Foundation. turned out to march or witness the political respectability again. CJ PAGE 26 JANUARY 2012 | CAROLINA JOURNAL Opinion EDITORIAL BRIEFS Entitlements Widen Wealth Gap

he question of addressing inequality with- in American society is likely to be a key issue in the 2012 elections. House Budget TCommittee Chairman Paul Ryan, R-Wisc., makes an excellent case that entitlement programs, not tax cuts, are responsible for rising inequality, writes syndicated columnist Michael Barone. In a 17-page paper based on Congres- sional Budget Office data, Ryan notes that the federal government redistributes incomes in two distinct manners, through taxes and transfer payments. Changes to the income tax and Social Security and Medicare withholdings between 1979 and 2007 have had little effect on inequality. What has changed dramatically is who receives transfer payments. In 1979, the lowest quintile of earners received 54 percent of all transfer payments. By 2007, the bottom 20 percent of households got only 36 percent of transfers. Democrats want to increase taxes on high- income earners but are loath to cut entitlement programs. The Credit Crunch “A better way is suggested by supercom- mittee Republicans: Limit future increases in ne of the big — and controversial — eco- pessimism reigns, lending attitudes move in the op- transfer payments to affluent households, and nomic issues today is the apparent lack of posite direction. Lenders become more cautious and cap deductions for home-mortgage interest and credit. Credit availability contracted during credit standards are increased. As a result, fewer state and local taxes, which are hugely lucrative O2008 and 2009. This should not be surprising. Those households and businesses qualify for loans. for high-earners and worthless for low-earners were the worst years of the recession, and credit Some say the pendulum has moved too far who don’t pay income tax,” says Barone. always gets tighter during economic downturns. today to compensate for the perceived laxity that Such changes, Barone says, could prevent The fact that the recent recession was the worst in prevailed when the economy was booming. With “European-style stagnation.” 75 years means credit conditions were the tightest in home prices falling and no firm sense of where memory. they’ll stop, appraisers may be setting values very Regulatory analysis weak But after the typical recession, lending activity low. A low appraisal increases the difficulty of a usually rebounds. For example, potential buyer qualifying for a mortgage loan. Periodically, Congress and the White after the 2001 recession, credit The Dodd-Frank financial regulation bill House have tried to improve the quality of growth doubled within three passed by Congress also has come under fire for set- decisions that regulatory agencies make. Such years. ting financial standards for lenders — in the opinion attempts at reform have not been very effective, Not so this time. Al- of some — too high. Plus, with three-fourths of the write Jerry Ellig and Sherzod Abdukadirov of though credit conditions were implementing regulations of Dodd-Frank yet to George Mason University’s Mercatus Center. better in 2010 than in the previ- be written, lenders still aren’t certain what specific Ellig and Abdukadirov examined the ous two years, credit growth rules they will have to follow. In the face of uncer- quality and use of regulatory analysis that was still only one-third the rate tainty, the general rule is: Be cautious. as in the recovery from the 2001 supported every significant new regulation Last, there’s the impact of the Federal recession. established in 2008 and 2009. They looked at 12 MICHAEL Reserve (the Fed), which has power over both the So why does credit remain different criteria and assigned a grade between WALDEN quantity and price of credit. The Fed certainly has 0 (no useful content) and 5 (comprehensive so tight? There are a number of done its part in increasing the availability of credit, analysis with potential best practices) to the possible reasons. having more than doubled the supply since late quality of work done. Overall, the average First is the argument that credit growth is slow 2008. Yet the majority of this new credit sits in the score was just over 27 (of a possible 60) in both because few households and businesses want — or 2008 and 2009. have the capability to acquire — loans. Households vaults of banks as “excess reserves.” Agencies scored worst in two areas: have been busy paying down the record debt levels Why? Returning to the first point, some say “systemic problem” and “retrospective analy- they posted a decade ago. They also are limiting it’s a lack of demand by creditworthy borrowers. sis.” Systemic problems assess whether an their spending and building up their savings. They But others say it’s a direct result of Fed policy. The agency’s analysis includes “a coherent theory don’t want more loans; instead, they want to pay off Fed is paying a 0.25 percent annual interest rate to and empirical evidence of a market failure, the loans they already have. banks on their excess reserves. While a low rate, it is government failure, or other systemic problem And since households have turned frugal, risk-free, and some think banks are quite happy to the regulation is supposed to solve,” which was businesses have cut back their spending plans, earn this guaranteed return in these uncertain times. rarely the case. Agencies also did a bad job of which means their need for loans also has been The Fed says it’s paying this rate on excess retrospective analysis, collecting data so the ef- curtailed. reserves to maintain a floor on interest rates and fects of a regulation could be examined after it While conceding the above argument has as a hedge against deflation. But some analysts see went into effect. merits, others present additional explanations. One it differently. They think that if the Fed eliminated The researchers also found that the qual- of the main alternatives has to do with the “credit the payment — or even charged banks for holding ity of research to support “budget” decisions pendulum” perhaps moving too far the other way. excess reserves — then new loans would start flying (those implementing spending or taxation The credit pendulum refers to the cycle out of the bank vaults. rules) was much worse than those looking at normally seen in credit availability. During good So we have a “chicken and egg” question. Is “prescriptive” regulations. economic times, when incomes are rising, profits lending tight because there are few good loans to be “This pattern persists across administra- are high, and optimism is strong, making loan pay- made? Or is lending lacking due to too-tight regula- tions, indicating that the source of the problem ments is easier. Lenders therefore are motivated to tions and an overly generous Federal Reserve? CJ is institutional, not political,” the researchers lower standards and extend credit to more house- concluded. CJ holds and businesses. Michael L. Walden is a Reynolds Distinguished When recessions hit and fear escalates and Professor at North Carolina State University. JANUARY 2012 | CAROLINA JOURNAL PAGE 27 Opinion Positive Momentum from 2011 n last month’s column I reviewed crony capitalism. In short, get the tion for fall 2012 openings. Make sure warehouse and ABC stores around the what the North Carolina General state’s fiscal house in order, and instill every new charter is of the highest state. Assembly accomplished in 2011. discipline by statute to keep it in quality, and monitor all to ensure Expand regulatory reform. A IThis month I’d like to offer sugges- order. school choice is successful. cost-benefit analysis needs to be part tions for consideration in 2012: Medicaid is intended to help Vocational high schools along of every regulation imposed — in- Passing a balanced budget with those who cannot help themselves. It with additional career and technical cluding the cost of compliance. Every no tax increases provided a good start, has grown into the state’s largest and training need to be expanded, and rule should be applied uniformly. but there is much fastest-growing entitlement program community colleges need to grow Licensing regulations should protect more to be done. and one of the most expensive in the job-training programs. Standards the public, not create monopolies or Enact a Tax- Southeast. Mismanagement and poor for teachers and students need to be bar entrance to a profession. payer Protection oversight of a billing system overhaul raised and performance carefully Review all 23,940 administra- Act, limiting gov- wasted more than $200 million; Med- tracked and measured. tive rules, and repeal those that aren’t ernment spending icaid starts 2012 with a $135 million Instead of pushing expensive needed. to the growth in cash shortfall. and inefficient energy sources that Restore integrity and transparen- population plus We cannot continue to expand increase energy costs, expand natural cy to our election laws. Put the party inflation. services to more people and grow gas exploration by fracking, and study label back on judicial races. Require Commit 10 Medicaid spending at unsustainable offshore drilling. Base the regulation photo identification when voting. Voters want it. The governor vetoed it. percent of the levels. Patient-driven reform would of coal and nuclear power on science BECKI Democrats won’t vote to override. If budget to the rainy allow enrollees to make decisions and facts. Repeal renewable energy GRAY there are current legislators and a gov- day fund every about their care while reducing costs. portfolio standards that require 12.5 ernor who can’t get that done, replace year. Transportation funding should percent of our energy to come from them in November with some who Require a five-year fiscal note go to relieve congestion and ensure conservation and renewable sources. will. Elections for tax increases should with each budget (instead of the two- safety. Railroads and buses are a poor Privatize and sell. The state does be held when most people vote, not year note offered now), projecting and inefficient use of those dollars: not know how many passenger ve- snuck in when no one is looking. No the longer-term fiscal impact of key Stop funding them. Expand toll roads, hicles it owns or what they cost. Nor election should be rigged so that the budget decisions. public-private partnerships, and other does it have an accurate accounting outcome is determined before the Continue to post all budget bills user-based funding methods. Revisit of how many buildings it owns. Get first vote is cast. Taxpayer funding of at least 72 hours before the first vote. the gas tax before it is set to readjust an accurate account of both, and sell elections is offensive to anyone who Repeal debt not approved by voters midyear. Consolidate the agencies what’s not used or needed. Sell the believes in free speech; it should be (certificates of participation and tax- within the Department of Transpor- Global TransPark and its assets, repay repealed. increment financing), pay off existing tation, and downsize the Board of the Escheat Fund the $40 million it’s A new year always brings op- debt, and fully fund the State Health Transportation. owed by the GTP, and don’t make portunities and possibilities. Let’s get Plan and the retirement and pension Senate Bill 8 opened the door to any more bad investments. Sell the started. CJ funds. expansion of charter schools. Eleven North Carolina Railroad. Privatize the Eliminate selective tax exemp- schools have been approved for final Alcoholic Beverage Control system; Becki Gray is vice president for out- tions and deductions, and repeal review by the State Board of Educa- sell all the assets including the state reach at the John Locke Foundation. Wind Power and Subsidies n response to wind power advo- subsidies are astronomical. Accord- cost of backup electricity generation more net employment. Certainly, a cates’ efforts in recent years, the ing to the U.S. Energy Information isn’t taken into account. new wind power plant creates jobs. John Locke Foundation held De- Administration, wind power receives The public — not utility compa- However, when considering extra cemberI workshops in Wilmington and 88 times more in federal subsidies per nies — must pay these extra costs. If costs imposed on families and busi- Morehead City to provide a different megawatt hour than coal and natural wind power proponents are so confi- nesses, the net effect on jobs is nega- perspective. gas. This doesn’t include state subsi- dent in wind power, they should have tive. Beyond the dies. no problem removing the energy tax. Common sense says if the state rhetoric, members Proponents often claim that this Of course, they recognize the facts. drastically increases energy prices, it of the public need is appropriate since wind power is a Even with subsidies, they must force hurts the economy and jobs. Recent to know that when new energy source. In fact, the op- the public to buy wind power. Other- research from Scotland shows that for they flick on the posite is true. Wind power has been wise, there would be no demand for every wind job created, 3.7 jobs were switch, their lights around since 5000 B.C. The use of wind power plants. lost. In Spain, for every wind job cre- will turn on. They wind power for electricity dates to the This energy tax, as with other ated, 2.1 jobs were lost. need reliability. late 19th century. massive taxes, drives up costs for There are many other consider- They also want Even with subsidies, wind families and all businesses. Those ations for local communities, includ- low costs. As a power still isn’t competitive. This is most hurt by higher energy prices are ing the negative impact on wildlife, basic necessity, DAREN why the North Carolina legislature in the poor. A larger percentage of their property values, tourism, health, and energy needs to be BAKST 2007 passed a mandate that utilities income goes toward energy costs. land use. Everyone in the state is affordable. generate at least 7.5 percent of their Some myths are worth address- being forced to pay an energy tax to The problem, electricity from renewable sources. To ing. First, wind power won’t reduce subsidize corporations making money unfortunately, come close to meeting this require- dependence on foreign oil because we from wind power. This isn’t about the is wind power doesn’t meet those ment, wind power likely will be re- generally don’t use oil for electricity environment. It is simply about greed. criteria. It has inherent, unavoidable quired along the coast. This mandate generation. Only about 1 percent of Our state’s unemployment tops problems. The wind doesn’t blow all is equivalent to a broad-based energy petroleum consumption is for electric- 10 percent. Many North Carolinians the time. Even when the wind does tax imposed on all electricity custom- ity. struggle to make ends meet. We need blow, its speed is often too slow or too ers. The law even expressly allows Second, wind power won’t have to find ways to grow the economy and fast. This means wind power must be for utilities to charge much more for a significant impact on carbon dioxide create jobs. The General Assembly backed up by conventional electricity renewable energy. emissions. According to a National should repeal the costly energy tax. sources, such as natural gas. According to EIA, onshore wind Academy of Sciences study, assum- Wind power should succeed or fail on No amount of subsidies will is about 50 percent more expensive ing a generous scenario, using wind its own merits. CJ solve these inherent flaws. Wind pow- than natural gas. Offshore wind is power could lead to a 1.8 percent er proponents are correct when they about 370 percent more expensive reduction in carbon dioxide emissions. Daren Bakst is director of legal claim that all energy sources receive than natural gas. These numbers are This difference is miniscule. and regulatory studies for the John Locke subsidies. However, wind power’s low because, among other things, the Third, wind power won’t create Foundation. PAGE 28 JANUARY 2012 | CAROLINA JOURNAL Parting Shot Federal Officials Target Surplus Christmas Trees(a CJ parody) By Paula Bunyan Christmas tree market is full of ineffi- Environmental Correspondent ciencies that waste resources and harm RALEIGH the environment and hurt sustainabil- Concerned about sustainability ity. Christmas tree disposal may also and excessive waste of resources, the contribute to post-holiday depression U.S. Department of Agriculture has for many Americans.” proposed a rule that the number of The report noted that even fresh Christmas trees that can be cut though some U.S. workers depend on from farms will be limited each year to income from the production, distribu- balance supply with demand. tion, and retail sales of real Christmas The new rule was the idea of trees, inexpensive artificial trees, 80 a USDA regulator who saw several percent of which are made in China, Christmas tree lots around Washington might be better for the environment. with hundreds of unused trees after Under the industry’s proposed the holiday. “This was a perfect way 2008 plan, domestic producers and for government to become involved in importers of Christmas trees would an area in which it has no business be- have paid between 15 cents and 20 ing involved,” said an unnamed USDA It was scenes like this that persuaded the bureaucrats of the USDA that the government cents per tree produced or imported. source. “Because that’s what we like to needed to become more involved in the Christmas tree industry. (CJ spoof photo) Smaller producers and importers han- do.” dling fewer than 500 Christmas trees A source in the Obama adminis- gall letting us take a hit for a tax we retail outlets that have not exhausted a year, along with organic tree farms, tration who did not want to be quoted weren’t clever enough to impose first,” their allocations by Dec. 25 of each would have been exempt from the as- said the president was enthusiastic a department source told Carolina Jour- year. sessments. about the new regulation because he nal. To justify the program, the USDA A board representing a cross- was peeved that he got blamed for North Carolina is the nation’s hastily cobbled together a research section of the industry would have the “Christmas tax” on Christmas tree second-largest Christmas tree produc- report. It concluded that only about administered the proposed checkoff growers earlier this year. er, trailing only Oregon. 50 percent of the roughly 50 million program to enhance the position of The National Christmas Tree As- While the new regulations have Christmas trees that are harvested and fresh-cut Christmas trees in the mar- sociation requested the tax, called a not been finalized, sources tell CJ they delivered to retail sites in the United ketplace and expand sales within the “marketing checkoff,” in 2008 to com- likely will include an allotment pro- States actually are sold to consumers. United States. bat imported artificial trees, most of gram, monitored by USDA inspectors, Unsold trees become trash on Dec. Proponents argue that similar which are made in China. But the news to limit the number of retail Christmas 25. Sold trees become trash soon after. federal checkoff funds are used to pro- of the tax effort didn’t break until this tree outlets in each state. Tree-disposal programs are at capac- mote the marketing of commodities fall, leading to charges that President An environmental impact charge ity, and many people just discard their independent of a particular producer, Obama hated Christmas. equal to three times the total retail val- trees by the side of a road. including blueberries, cotton, peanuts, “Those tree farmers have some ue of unsold trees will be assessed to According to the report, “The popcorn, and watermelons. CJ

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