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North Carolina INSIDE THIS ISSUE: DEPARTMENTS Legislators North Carolina 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. Governor 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 Gtistics 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 9.8Janet9.4 9.0confidentiality8.9 8.8 9.0 9.1of 9.2employment9.1 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 numberofficials, of people including unemployed hasdirector decreased Lynn by 8,081. BLS The stateregulations unemployment spelling rate in July out2010 waswhat 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 ratesconfiden 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 Nfirm 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 Tuniversity 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.
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