• Northeast Partnership • Regulations Inhibit Head Helps Self, p. 5 School Choice, p. 9

Health-Care Innovation, p. 7 C A R O L I N A Airlines and Markets, p. 17

Statewide Edition A Monthly Journal of News, Analysis, and Opinion from December 2005 • Vol. 14, No. 12 the John Locke Foundation www.CarolinaJournal.com JOURNAL www.JohnLocke.org Immigration Issue Reaching ‘Critical Mass’ By RICK MARTINEZ Racial/Ethnic Populations in N.C. Contributing Editor RALEIGH Group 1990 2002 % t both the federal and state levels, the policy and rhetorical battle Total Pop. 6,632,448 8,320,146 +25.4 on immigration is, in the words Total White 5,036,958 6,178,210 +22.6 Aof one North Carolina member of Con- gress, reaching “critical mass” as it pits White 4,975,409 5,774,440 +16.1 those who support strict enforcement of Non-Hispanic current laws against those who advocate Black 1,446,367 1,793,697 +24.0 sweeping immigration-law reform. Non-Hispanic During the 1990s, North Caro- lina had the fastest growing Hispanic American Indian 80,825 106,454 +31.7 population of any state in the nation, Asian 53,102 140,491 +164.5 growing from 76,726 in 1990 to 378,963 in 2000. That’s an increase of 393 percent. Total Hispanic 76,745 444,463 +479.1 Four years later, the U.S. Census Bureau estimated the Hispanic population at Hispanic immigrants line up for services at the Mexican consulate on Source: U.S. Census, 1990 and 2002 517,617. Six Forks Road in Raleigh (Photo by Don Carrington) Illegal immigration, primarily from Mexico, is responsible for the ma- population estimates. No major His- legislation that would have allowed troduced a bill that would have denied jority of that growth. The Washington panic advocacy group has disputed some illegal immigrant students to pay state services to illegal aliens. D.C.-based Pew Hispanic Center has es- Pew’s calculations. in-state tuition at the state’s 16 universi- Both measures died, but the debate timated that 300,000 people — roughly The rapid influx of illegal immi- ties played itself out on talk radio and certainly hasn’t. High-profile arrests of 65 percent of North Carolina’s Latino grants has created tensions in North letters to the editor pages in the state’s population — are illegal immigrants, Carolina. Earlier this year a heated pub- major newspapers. Additionally, State based on the Census Bureau’s latest lic reaction against General Assembly Sen. Hugh Webster (R-Alamance) in- Continued as “Immigration” Page 2 Influx of Hispanic Immigrants Hitting Schools Hardest

By KAREN WELSH new residents settled in the state,” con- ago when, in 2002, statistics showed those being illegal immigrants. Contributing Editor cluded a study by the Federation for attendance in the Limited English The problem has become so acute RALEIGH American Immigration Reform (FAIR) Proficiency/English Language Learn- that officials have named it one of the massive influx of immigrants, in Washington D.C. “The equivalent of ing instruction programs jumped 494 major challenges facing county govern- both legal and illegal, into North adding five Raleighs…[t]his large-scale percentage points within 10 years. ment across the state. Carolina has thrust thousands population growth is bringing traffic, And the numbers keep climb- “Hispanic and Latino residents Aof non-English speaking students into pollution, overcrowded schools and ing. The United States Census Bureau are transforming county services,” said the public school system, leaving lo- lack of affordable housing in the state, estimates that the Latino population a report taken from the Long-Range cal teachers and administrators with a decreasing quality of life and straining increased by 138,654 in North Carolina Planning and Visioning Project after the daunting task in their efforts to educate vital natural resources.” between the 2000 Census and July 1, 2004, this expanding population. FAIR’s Immigration Impact Report from 378,963 to 517,617, a gain of nearly “In the last 10 years, 1.4 million also said the trend was seen some years 37 percent, with an estimated 300,000 of Continued as “Influx” Page 3

Do lobbyists have too much influ- 80ence on legislation in N.C.? The John Locke Foundation NONPROFIT ORG. Contents 200 W. Morgan St., #200 U.S. POSTAGE Raleigh, NC 27601 PAID RALEIGH, NC State Government 3 PERMIT NO. 1766 Washington Watch 6 Education 8 Higher Education 12 Yes 73 % Local Government 16 No 16 % Not Sure 11 % Books & the Arts 20 Opinion 24 Parting Shot 28 John William% Respondents Pope Civitas in June Institute Civitas Poll, Institute November Poll 2005 CAROLINA C a r o l i n a North Carolina JOURNAL Journal Immigration Issue Reaching ‘Critical Mass’ Continued from Page 1 well, or at all. Richard Wagner Conclusions drawn from the Pew Editor illegal immigrant workers at Piedmont profile may differ, but one impact is International Airport, Seymour Johnson undeniable. The explosive population Don Carrington Air Force Base and Cree Incorporated growth and limited English proficiency Executive Editor by Immigration and Customs Enforce- skills of the illegal immigrant are seri- ment agents kept the volatile issue in ously challenging North Carolina’s pub- Paul Chesser, Michael Lowrey the news. lic schools. North Carolina is required to Donna Martinez On the federal level, U.S. Rep. educate illegal immigrant children as a Associate Editors Sue Myrick from North Carolina’s 9th result of a 1982 U.S. Supreme Court rul- Congressional District plans to introduce ing that each state has the responsibility Chad Adams, Shannon Blosser, legislation to tighten U.S–Mexico border Andrew Cline, Roy Cordato, of educating every resident child regard- security. Last month she authored a bill Bob Fliss, David Hartgen, less of legal status. The ruling has some Lindalyn Kakadelis, George Leef, that would withhold federal highway school districts busting at the seams. Maximilian Longley, Karen Palasek, funds to North Carolina and five other Latino school enrollment in North Marc Rotterman, R.E. Smith Jr., states that accept federal taxpayer ID The Mexican flag flying over the Mexican Carolina increased 600 percent between Jack Sommer, John Staddon, numbers as proof of residence when consulate on Six Forks road, signifying the 1993 and 2003 school years, according George Stephens, Jeff Taylor, issuing driver’s licenses. that the consulate is Mexican soil (Photo to the Department of Public Instruction. by Don Carrington) Michael Walden, Karen Welsh, In September, she introduced bills In 2003-04, the most recent year for which Hal Young that would make a DWI conviction a A labyrinth of regulations prohibits an data are available, Hispanic students Contributing Editors deportable offense for illegal aliens, and effective compilation of demographic numbered 88,335 out of 1,342,806 K-12 increase the fine for knowingly hiring and economic data. students in the state. Jenna Ashley Robinson, undocumented workers from the cur- Though not providing evidence on Using Pew’s estimates that 65 Paul Messino, Brian McGraw rent $250 to $10,000 per alien. Critics percent of those children are undocu- Editorial Interns the cost vs. benefit debate, the Pew His- say Myrick’s gubernatorial ambitions panic Center’s Rakesh Kochhar, Roberto mented, the illegal student count would have spurred her recent legislative activ- Suro and Sonya Tafoya investigated the number roughly 57,400. The John Locke ity, but she says it is because she feels North Carolina immigrant in their study, Foundation, publisher of Carolina Jour- a “critical mass” to do something has “The New Latino South: The Context nal, calculates that it costs taxpayers, Published by finally been reached among members and Consequences of Rapid Population on average, $8,500 per year to fund the The John Locke Foundation of Congress. Growth,” published this summer and operational and capital costs of edu- 200 W. Morgan St., # 200 As the political battle roils around available at www.pewhispanic.org. cating a child in North Carolina. That Raleigh, N.C. 27601 them, illegal immigrants continue to The research translates into an (919) 828-3876 • Fax: 821-5117 flock to North Carolina for the same team examined expenditure of ap- www.JohnLocke.org reason thousands of legal U.S. residents North Carolina, proximately $487 do: employment opportunities. Jobs in Arkansas, Ala- “If it weren’t for immi- million annually to Jon Ham construction, agriculture, textile, manu- bama, Georgia, grants, there wouldn’t be educate illegal im- Vice President & Publisher facturing, maintenance, services, and South Carolina, migrant children, hospitality are the attraction, accord- and Tennessee an agriculture industry in a cost that will John Hood ing to Dr. Nolo Martinez of the Center continue to grow Chairman & President because of their for New North Carolinians at UNC- pronounced His- North Carolina.” as the population Greensboro. Many of those economic panic population increases. Bruce Babcock, Herb Berkowitz, sectors have become dependent on Paula Gupton Page John Carrington, Sandra Fearrington, increases in the The question immigrant labor, he said. Most notable Jim Fulghum, William Graham, 1990s. N.C. Farm Bureau North Carolinians Lee Kindberg, Robert Luddy, is agriculture, the largest sector, which Not surpris- are debating is William Maready, J. Arthur Pope, is responsible for $62.6 billion of annual ingly, most illegal fundamental: Is it Assad Meymandi, Tula Robbins, economic activity. Others agree with his immigrants are poor by American worth it? David Stover, Jess Ward, assessment. standards. The average annual earn- According to those who cite the Andy Wells “If it weren’t for immigrants, there ings for an illegal Hispanic worker in Latino community’s growing economic Board of Directors wouldn’t be an agriculture industry in these six southern states was $16,000 in might, the answer is yes. The Selig Center North Carolina,” said Paula Gupton 2000, compared to the national Latino for Economic Growth at the University Page, legislative director for the North average of $18,000. Thus, the poverty of Georgia pegs the buying power of Carolina Journal is a monthly journal Carolina Farm Bureau, “because picking rate for illegal Hispanics in these states Hispanics in North Carolina at $8.2 bil- of news, analysis, and commentary on state tobacco is hot and hard, and harvesting rose to 25.5 percent in 2000 from 19.7 lion in 2005. The Selig Center predicts and local government and public policy issues Christmas trees is cold and hard. Farm- that number will grow to $13.3 billion in North Carolina. percent in 1990. That represented a 30 ers can’t hire enough local people to do percent increase compared with a 4 by 2010, one of the fastest growth rates the work anymore.” Paying the higher in the nation. ©2005 by The John Locke Foundation percent drop for Hispanics nationwide. wages that would entice American citi- A higher number of new Southern His- In his book Smart Economics, Dr. Mi- Inc. All opinions expressed in bylined articles zens back into the fields doesn’t make are those of the authors and do not necessarily panic residents rent their housing — 65 chael Walden, Reynolds Distinguished economic sense, she added, given low reflect the views of the editors of CJ or the percent vs. 53 percent nationally. What’s Professor of Agricultural and Resource staff and board of the John Locke Foundation. farm commodity prices. more, the number of people in Southern Economics at North Carolina State Uni- Material published herein may be reprinted as The willingness of illegal im- Hispanic households was significantly versity, points out immigrants, in effect, long as appropriate credit is given. Submis- migrants to perform low-skill, labor- higher (3.8) than their white (2.4) and increase the number of workers paying sions and letters are welcome and should be intensive jobs has created an economic black (2.7) counterparts. Social Security and Medicare taxes since directed to the editor. dilemma. The low-wage jobs that illegal Pew determined that Hispanic they pay those taxes while not receiving immigrants fill yield equally low taxes immigrants coming to these six states the benefits themselves. CJ readers wanting more information to state and local governments. The are young, with a median age of 27 Earlier this year, the Social Security between monthly issues can call 919-828-3876 majority of taxes paid by illegals accrue years, and predominately male (63 Administration revealed it had collected and ask for Carolina Journal Weekly Re- to the federal government, while many percent). Immigrants are also likely to $329 billion in its “earnings suspense port, delivered each weekend by e-mail, or visit public services they consume, such as be unmarried (51 percent). They have file” over the past 20 years, most of it CarolinaJournal.com for news, links, and ex- education, are mostly funded by state low education levels; only 38 percent from illegal immigrants who used phony clusive content updated each weekday. Those and local government. Social Security numbers. Conservative interested in education, higher education, or of those in the six southern states arrive Comparing the costs of services with a high school diploma. The Pew estimates are that illegal immigrants pay local government should also ask to receive provided to illegal immigrants with the weekly e-letters covering these issues. researchers also determined 57 percent benefits the workers provide is difficult. of new immigrants do not speak English Continued as “Immigration,” Page 3 CAROLINA December 2005 JOURNAL North Carolina  Influx of Hispanic Students Hitting Schools Hard

Continued from Page 1 challenging. counting Office estimated the per-pupil end-of-grade tests.” “It’s very overwhelming,” he said. expenditure for illegal alien children An article written by Franco Or- N.C. Association of County Commis- “I get a lot of complaints from superin- was $6,000. donez in The Charlotte Observer stated sioners School of Government met in tendents and principals from all over Chairman Lee said there are also Katherine Meads, director of English Chapel Hill in August 2004. “Hispanic the state that tell me these children are additional costs associated with educat- as a Second Language (ESL) for the and Latino populations present social, interfering with the education process ing immigrant children, including the Charlotte-Mecklenburg Schools, has cultural and fiscal challenges for county of the other children.” support staff and social workers needed seen the number of students learning to health and public education services. Jack Martin, Special Projects Di- at individual school sites to help the speak English jump from 2,000 to 10,000 Counties are asked to rector for FAIR said children. in the past 10 years. help educate and as- the children of illegal “It’s a tremendous financial bur- In an educational article in the San similate the growing immigrants degrade den,” he said. “It’s being borne by the Antonio Express-News, writer Lucy Hood Hispanic population instruction to Ameri- taxpayers who underwrite the cost of said the immigrant numbers in many who come from dif- can kids. them.” states, including North Carolina are criti- ferent parts of Mexico, Not only do the There is more than money issues cal and there needs to be a response. South America and children of undocu- to consider. Lee said the problems with Unfortunately, Chairman Lee said, Central America.” mented workers put immigrant students are multiplying and there is no ready solution to the mount- The 1982 Su- a strain in the class- growing within the state. ing problem. “We don’t know,” he said. preme Court decision room, Martin said, He said immigrant children who “There aren’t many options. We are very of Plyler v. Doe forced but these children register for school only come to school uncertain as to what we are going to do public schools to pro- also empty the pock- on a sporadic basis, and there is a definite at this time. It’s very hard to know if vide both documented ets of valid North language barrier for those who attend. there is a breaking point at some point and undocumented Carolina citizens who “Most of the children are unable to and what our response will be.” youngsters a primary are responsible for speak English,” Lee said. “And, in most FAIR said the only way to stop the and secondary educa- footing the enormous instances, they are illiterate in their own wave of immigrants into the state is to go tion. This “don’t ask, bill. language,” after the parents by enforcing a program don’t tell” policy has “[The illegal im- Currently the Charlotte-Meck- of document verification and changing overwhelmed school migrants] are break- lenburg School District is the hardest laws to eliminate illegal immigrants and systems throughout ing the piggy bank,” hit by immigrants, with more than 10 bring legal immigrants more slowly into the state and left them he said. “In North percent of their student body made up of the country. searching for solu- Carolina it costs $450 non-United States citizens. He said one “Our policies are aimed at stop- tions. million for educating children. It’s a big school in the district boasts more than a ping the flow of illegal immigrants,” North Carolina State Board of expense and the taxpayers are picking 60 percent immigrant student rate. Martin said. “We need to discourage Education Chairman Howard Lee says up the cost.” “They have the largest number them from coming … and creating condi- dealing with the huge numbers of immi- Martin’s assessment isn’t off base. of Latino-Hispanic students,” Lee said. tions that would encourage illegal im- grants coming into the state is extremely In 2004, the United States General Ac- “They are performing very low on the migrants to go back home.” CJ Immigration Issue Reaching ‘Critical Mass’ in North Carolina

Continued from Page 2 migration law. The U.S. Senate will take visa that can be renewed for up to six advocated by Mark Krikorian of the up two very different immigration bills years. At the end of that period, the alien Washington D.C.-based Center for a minimum of $7 billion per year into early next year. must return home or be in the pipeline Immigration Studies. The group says Social Security and Medicare. The Secure America and Orderly for a “green card” that would grant the solution to illegal immigration is a Some feel that these benefits don’t Immigration Act of 2005 (S. 1033/H.R. permanent status. combinations of consistent, across-the- outweigh the costs, however. One is 2330) is sponsored by Sens. Edward Under the Cornyn-Kyl legislation, board enforcement of existing law, illegal Debra Conrad-Schrader, vice chair of Kennedy (D-MA) and John McCain (R- illegal aliens would be forced to return immigrant deterrence, and increased the Forsyth County Board of Commis- AZ). The Comprehensive Enforcement to their country of origin and re-enter deportation. sioners. To her, the economic benefits and Immigration Act of 2005 (S. 1438) the U.S. through existing legal channels. Often not reported is that im- of illegal immigration don’t begin to was introduced by Sens. John Cornyn Illegal immigrants will have up to five migration has become a hotly debated outweigh the $400 million in bonds her (R-TX) and Jon Kyl (R-AZ). years to depart the U.S. Those who leave issue within the Hispanic community county school board is requesting to Both bills would tighten border quickly will be eligible to return through itself. Support for illegal immigrants build schools and finance renovations security in order in an effort to stop the a new temporary worker program. Un- among U.S.-born Latinos diminishes over the next 10 years, mostly due to flow of illegals into the U.S. The Ken- like the Kennedy-McCain bill, it does with each new generation. When Pew the influx of extra students, many of nedy-McCain plan relies heavily on not provide an avenue for permanent asked Latinos whether undocumented them Hispanic. technology and diplomacy while the legal status. workers help the economy, 46 percent of The Hispanic population in For- Cornyn-Kyl bill relies on manpower. Lindsay Taylor of U.S. Sen. Eliza- U.S. born Hispanics said no. In its survey syth County has increased 55 percent The Cornyn-Kyl bill would add beth Dole’s office says Dole has not of Hispanic attitudes toward immigra- during the past four years. Hispanics 10,000 new Border Patrol agents, au- decided which legislation to support, tion, Pew found that the younger the U.S. now comprise 14 percent of the district’s thorize 10,000 agents to investigate but that border security is Dole’s top pri- born Latino respondent, the less support 50,477 students. The influx of illegal im- employers who hire undocumented ority. U.S. Sen. Richard Burr has signed expressed for illegal immigrants. And migrants in Forsyth has made Conrad- workers, and add 10,000 new beds to on as a co-sponsor of the Cornyn-Kyl now, some Mexican-Americans are Schrader a supporter of a bill by U.S. detain illegal aliens. legislation. Myrick said she hasn’t yet participating in citizen border patrols Rep. Myrick to curb illegal immigration. However, it is the handling of decided on either bill but she charac- along the California-Mexico border. “We’ve seen a large influx of undocu- the estimated 11 million illegal aliens terized the Kennedy-McCain bill as an Latino advocacy leaders say they mented workers in our towns and it’s already living in the United States that “amnesty” bill. want a resolution because the issue of definitely put a strain on all aspects of is expected to generate the most fire- Ron Woodard, founder of the illegal immigration threatens to take the resources that cannot be addressed lo- works. The Kennedy-McCain bill would immigration-reform group NC Listen, focus off other Hispanic concerns. For cally,” she said. allow illegals to stay in the U.S. on the believes enforcement of existing laws, the first time in its history, the nation’s Conrad-Schrader is about to get stipulation that they pay a $2,000 fine including employer sanctions, must be leading Hispanic advocacy group, the her wish. Leaders in the U.S. House and submit to a security and medical tried before any guest-worker plans are National Council of La Raza, is sup- promise action this year on bills that background investigation. They would established. porting immigration-reform legislation, strengthen enforcement of current im- then be issued a new temporary work His position is similar to that specifically the Kennedy-McCain bill. CJ December 2005 CAROLINA  North Carolina JOURNAL Butterfield and Watt criticized Bill Bennett in September Black Congressmen Decline to Condemn N.C. State Professor

By SHANNON BLOSSER statements, “I am to those who make them,” Watt said.“I, Contributing Writer which re- o u t r a g e d therefore, call on all radio station owners RALEIGH ceived na- and it is dif- who carry Bill Bennett’s show to imme- wo North Carolina congressmen tional at- ficult for me diately terminate the show and if they who were quick to criticize for- t e n t i o n . to under- fail to do so, I call on his sponsors and mer U.S. Secretary of Education A spokes- stand how advertisers to withdraw their advertis- TBill Bennett for comments he made on woman for an individ- ing dollars.” his nationally syndicated radio show Watt said the ual granted Butterfield and Watt are not the in September about aborting black c o n g r e s s - a network only ones in Congress who criticized babies have refused to comment on man had no show could Bennett’s comments, but who have a statement made by a former NCSU i n t e n t i o n utter such an remained quiet about those made by professor that all white people should of making insensitive Kambon. According to a Library of Con- be exterminated. a comment U.S. Rep. Mel Watt, D- U.S. Rep. G.K. Butterfield, statement in gress search of the 109th Congress, there Rep. G. K. Butterfield and Rep. Mel about them. 12th D-1st 21st Century have been no resolutions introduced in Watt, the two black members of North T h e i r America,” the House or the Senate to condemn Carolina’s congressional delegation, position contrasts with statements that Butterfield said. “I am even more ap- Kambon’s comments. have been silent about comments made Butterfield and Watt, chairman of the palled over the fact these comments That is a sharp contrast to actions by Kamau Kambon, who is black, at a Congressional Black Caucus, made after come from a man who served as Sec- taken after Bennett made his comments. panel discussion in October at Howard Bennett’s comments. retary of Education under President Two resolutions were introduced — one University’s law school about Hurricane “While we support First Amend- Reagan.” in the Senate and one in the House — to Katrina relief. In comments televised live ment Rights, we simply cannot tolerate In addition to serving as education condemn Bennett’s comments. Senate by CSPAN, Kambon said that all white statements and [radio] shows that are secretary, Bennett served as the national Resolution 262 was introduced by Sen. people should be exterminated. replete with racism, stereotyping, and director of drug control policy under Frank Lautenberg, D-N.J., and was Bennett, secretary of education profiling,” Butterfield said at the time. President George H. Bush. Bennett’s cosponsored by six other Democrats, during the Reagan administration, said “Mr. Bennett’s statement is insulting to conservative commentary syndicated including Senate Minority Leader Sen. in reaction to a caller on his “Morning all of us and has no place on the nation’s radio program is heard by about 1.25 Henry Reid, D-Nev. in America” program that to reduce public air waves.” million people on 115 stations across The Senate resolution said “the crime one conceivably could “abort Butterfield and congressional the country, including stations in Los Senate believes that such statements every black baby in this country and colleagues sent a letter to Salem Radio Angeles, Chicago, Boston, Philadelphia, are unbecoming of a former Cabinet your crime rate would go down,” but Network President Greg Anderson urg- Dallas, Atlanta, Denver, Phoenix, San Secretary.” that any such policy would be “morally ing suspension of Bennett’s syndicated Diego, and Minneapolis. House Resolution 473, intro- reprehensible.” Bennett is white. radio program in the wake of comments Watt had similar comments. duced by Rep. Bobby Rush, D-Il- A press representative for But- made in response to a caller’s suggestion “However, it’s obvious that these kinds linois, with 13 cosponsors, called terfield’s office said the congressman linking abortions to the solvency of the of outrageous comments will continue Bennett’s statements “bigoted” and had had not heard about Kambon’s Social Security program. unless there are economic consequences “ignorant.” CJ Economic Developer Questions Targeted State Incentives

By PAUL CHESSER open a plant, make an investment, or Associate Editor expand operations,” McMahon wrote, RALEIGH ”Instead of cannibalizing our neighbor states we “but though in one instance that might n a case of swimming against a should be cooperating with them in regional job- mean more jobs for Ohio…it comes at tsunami of opinion among his the expense of investment in another professional peers, the leader of a creation efforts that bring economic development and area….a gain for one state means a loss Istate economic development agency has for another.” announced his support for the elimina- benefits to the entire area.” McMahon told CJ that he is not op- tion of certain targeted tax breaks for posed to all economic incentives made individual businesses. Michael McMahon by governments or quasi-government Michael McMahon, executive agencies — only those that amount to director of the Rhode Island Economic Rhode Island Economic Development Corp. payouts to private businesses with little Development Corporation, wrote on in lasting benefit to the state. For ex- Oct. 6 that he agrees with the decision ample, he cited workforce development in the Cuno v. DaimlerChrysler case, in and training dollars as one acceptable which the Sixth Circuit Court of Appeals The appeals court ruled in Cuno tion to incentives. strategy to lure businesses. ruled that some tax breaks granted by that a franchise tax credit based on a In a telephone interview with Caro- “To me that’s a good incentive,” Ohio violated the Commerce Clause business’s investments in Ohio was un- lina Journal, McMahon called himself a he said. “Well-trained workers stick of the Constitution. The U.S. Supreme constitutional, because it discriminated “recovering investment banker” who around.” Court in September said it will consider against investment out of state. That was fairly new to economic develop- “Instead of cannibalizing our the case. McMahon’s opinion article was considered inhibitive to interstate ment, and who sees the incentives war neighbor states,” he wrote in the Jour- was published by the Providence Jour- commerce, a power that the Constitution waged between states as destructive. nal-Bulletin, “we should be cooperating nal-Bulletin. reserves for Congress to regulate. “This was an issue where the con- with them in regional job-creation efforts “Rhode Island is not subject to the Opposition to tax incentives for clusion we came to was at two levels,” that bring economic development and rulings of the 6th Circuit,” McMahon companies is unusual among economic he told CJ. “From a national public benefits to the entire area.” wrote, “but we support the Supreme developers, who as a group generally policy, it’s really a zero-sum game. From But in the hyper-competitive world Court’s decision to review the case, so endorse any tools that governments a Rhode Island perspective, we have a of incentives competition among the that there will be one set of rules for all can offer to make business more attrac- smaller checkbook.” In his opinion piece, states, McMahon agreed that a federal regions. In the spirit of that level play- tive and less costly. McMahon said the McMahon said incentives “don’t really solution — which could be partially ing field, we hope the high court will response to his article has been mostly create new jobs.” addressed by the Cuno case — might be uphold the ruling against these types favorable, although it’s been from those “They may make the difference the only way to produce such regional of tax credits.” who are already on the record in opposi- in a company’s decision of where to cooperation. CJ CAROLINA December 2005 JOURNAL North Carolina  Head of Northeast Partnership Helps Self in Business Dealings Watson plans to work would have been an apparent violation of Watson’s contract with the partner- with Randy Parton’s ship. Earlier this year CJ reported that entertainment group Watson was an investor in a fingerprint technology company that received fund- ing from the state’s Tobacco Trust Fund, By PAUL CHESSER according to sources with direct knowl- Associate Editor edge of the project. Watson worked on RALEIGH obtaining the funds for Privaris, Inc., deal arranged by North C a r - despite his personal financial stake in the olina’s Northeast Partnership company, creating an apparent conflict president Rick Watson to work of interest. Awith country musician Randy Parton is Watson has created several non- not the first case in which Watson has profit organizations, which he says are tried to become involved with a com- private, that are related to the original pany that his public agency is trying to Northeastern North Carolina Regional help. Economic Development Commis- Watson, who leads many variations sion created by the state in 1994. The of the partnership, has in the past sought either a personal investment stake or first spinoff became North Carolina’s other benefits from the businesses he has Northeast Partnership, which is how it tried to help locate in northeastern North is presently identified after at least two Carolina. He currently plans to work name changes. both for the partnership and Moonlight In addition to the Commission and Bandit Productions, a company owned the Partnership, Watson created other af- by Parton that is building an entertain- Rick Watson, executive director of North Carolina’s Northeast Partnership, at the filiated organizations: North Carolina’s groundbreaking ceremony for the Randy Parton theater in Roanoke Rapids on Nov. 11. Northeast Committee of 1000; North ment theater in Roanoke Rapids. (Photo by Don Carrington) According to a report in The Daily Carolina’s Northeast Economic De- Advance of Elizabeth City November 9, organization that the employee is in- partnership would put up little, if any, velopment Foundation; and the North Watson helped draft legislation that got volved with. The Daily Advance reported of its own money in exchange for a sig- Carolina’s Northeast Partnership for $500,000 in state money for the promo- that Morgan found no problems related nificant ownership stake. The company Financing — created last November. tion of Parton’s theater project. The to Watson’s dual employment because rejected the proposal. Watson in 2003 also changed some newspaper said Watson plans to work “no public funds will be expended or Carolina Journal reported two years key provisions to the Partnership’s for both the Partnership and Parton benefits provided to the private entity.” ago that Watson and others sought a articles of incorporation. He greatly for 18 months, until he becomes fully It isn’t clear whether Morgan was aware personal stake in an ethanol plant in 2002 broadened the official “purposes” of employed by Parton. The partnership of the $500,000 allocation for the project that a Raleigh businessman wanted to the organization to include any activi- enlisted a consultant, former state attor- when he wrote his opinion. build in Martin County. And in a series ties outside of economic development. ney general and U.S. Sen. Robert Morgan Watson has been alleged in the of articles in The Daily Advance in May He also removed the Department of of Lillington, to determine whether past to have sought personal benefit 2003, officials of DataCraft Solutions Commerce as the recipient of all the Watson’s dual employment posed a from companies that have received help alleged that partnership representatives Partnership’s assets should it be dis- conflict of interest. Morgan concluded — supposed to be provided for free tried to get a 15 percent stake in their solved, leaving the decision with the that it didn’t. — from the Northeast Partnership. In company in exchange for services from board of directors. The partnership is one of seven 2001 and 2002 Watson proposed that their side business. Watson in the past has cited the pri- regional state economic development biotechnology company CropTech give The DataCraft executives claimed vate nature of the organizations related agencies that is funded by the state. State ownership equity to the partnership in they were told that Watson owned 50 to the original Northeastern Commission law prohibits public funding that ben- exchange for helping the now-defunct percent of the side business and would as reasons for not complying with public efits a government employee, or a private business get financial incentives. The “close deals” for DataCraft — which records requests. CJ December 2005 CAROLINA  Washington JOURNAL

NC Delegation Watch 18 states now in the combine

Dems want withdrawal States Join to Streamline Sales Tax Collection U.S. Reps. David Price, D-4th, and Brad Miller, D-13th, outspoken By STEVE STANEK critics of the Bush administration’s The Heartland Institute CHICAGO handling of the war in Iraq, intro- n 18-state network for the vol- duced a joint resolution Oct. 24 untary collection of taxes on directing the president to submit a goods sold over the Internet or detailed plan to Congress for end- Athrough the mail has been created by the ing the occupation of that country, Streamlined Sales Tax Project (SSTP), a including a quick initial drawdown step project members hope will lead to a of U.S. troops. national sales tax collection program. Price said in a statement At a June 30 meeting in Chicago, that...“while we should never have project officials, including state law- started this war…and although no makers and industry representatives, ideal option for ending it is avail- decided 11 states would oversee the able to us now, the October 15 (Iraq network and provide incentives for constitution) referendum vote offers retailers to participate voluntarily. In- the best opportunity we are likely to centives would include free software have to begin the process of with- to calculate, collect, and remit taxes on spokesman for the Tax Foundation in that if the system is truly simple, and drawal credibly and hopefully….” Internet sales and a one-year amnesty for Washington, DC. if the states follow through on their “If our presence in Iraq is truly companies that may owe taxes on past “So in one sense the SSTP is ob- commitments relating to certified ser- not for Iraq’s oil or for a permanent online sales to any of the participating solete,” Ahern said. “The need for it is vice providers and certified automated staging area for military operations states. The software and amnesty would gone. No state should bother trying to software that would largely eliminate in that part of the world, we need be offered beginning in October. change its tax rates or sales tax rules to the costs and burdens of collecting sales to say so,” Miller said. “We need to “This was a landmark meeting for accommodate some other states, because taxes, then sellers of all sizes should be state clearly that we do not intend the whole effort,” said Stephen Kranz, a the private marketplace has solved the able to comply.” a long term occupation of Iraq, and spokesman for the SSTP and tax counsel problem.” that Iraqis will decide their own for the Council on State Taxation, an One company that offers such a future.” industry trade association that is pro- solution, and has been certified by the Loss of Tax Competition Feared moting the project. SSTP, is Avalara Inc., based in Bainbridge Ahern said he fears nationwide The 11 states — Indiana, Iowa, Island, Washington. Kansas, Kentucky, Michigan, Minnesota, enactment of the SSTP would reduce tax Burr and Dole support Alito North Carolina, Nebraska, Oklahoma, competition between states or between South Dakota, and West Virginia — have Technology Seen as Solution communities within states. In Chicago, Both U.S. Sens. Richard Burr amended their sales tax laws to comply Illinois, for instance, the sales tax climbed and Elizabeth Dole of North Caro- with project rules and definitions of tax- “From my perspective, the sim- to 9 percent on July 1. In many Chicago lina praised President Bush for his able items. Six of the seven other states in plification is in the technology,” said suburbs, the tax rate is 6.5 percent. choice of 3rd District Court of Ap- the network — Arkansas, North Dakota, Rory Rawlings, Avalara’s founder. “No “That 6.5 percent rate helps restrain peals Judge Samuel Alito for the Ohio, Tennessee, Utah, and Wyoming matter how simplified they make the Chicago’s rate,” Ahern said. “The city’s Supreme Court. — have not made the necessary amend- laws, they’re still very complicated for rate would probably be even higher if “As the Senate now proceeds ments but plan to do so. small business owners to comply with. the suburbs’ rates were higher.” with the confirmation process, I am The remaining state, New Jersey, The answer is in technology and not in hopeful Judge Alito will receive a brought its sales tax law into project policy.” Rawlings said his company’s Web- States Keep Sovereignty fair, dignified hearing followed by compliance after the June 30 meeting. based product, which works with most an up-or-down vote on the Senate It did not fully comply, however, until Kranz, though, said tax competi- small-business accounting software floor,” Burr said. after the 11 states were designated to tion would remain under the SSTP. packages, starts at $9.95 a month. Prices “Samuel Alito is an excellent oversee the network. “The agreement says wherever a climb from there, depending on the choice…,” Dole said. “Throughout Internet and mail order retailers product is delivered is the jurisdiction that agree to collect and remit taxes will number of sales transactions a business that gets to impose the tax,” Kranz said. his distinguished legal career, he has makes each month. demonstrated the qualities that one do so for sales originating in any of the “A jurisdiction could tax something or states that have amended their laws to As an SSTP-certified vendor, Ava- not tax it. And the tax could be whatever wants in a federal judge – a strong lara Inc. is responsible for the accuracy intellect, fair-mindedness, and a fully comply with the SSTP standards. the jurisdiction wants.” “Originating” refers to the location of of the tax collections and remittances, Alaska, Delaware, Montana, New commitment to the philosophy of Rawlings noted. Any mistakes would judicial restraint.” the buyer. Hampshire, and Oregon do not have The National Governors Associa- be covered by Avalara. That holds true state sales taxes and would not have Earlier in the month, after the tion and National Conference of State for other certified vendors as well. Seven to impose them under the SSTP. (Some much-criticized (and subsequently Legislatures released a report in July 2004 vendors have been certified already. Alaska communities have their own withdrawn) nomination of Harriet that estimated state and local govern- local sales taxes.) Miers, Burr delivered comments ments lost as much as $16 billion by not Others Doubt Technology Without a destination-based tax similar to those he said about Alito: being able to tax Internet sales. system, Kranz said, “every company “I am hopeful that she will receive Rich Prem, director of global indi- that sold online should set up in one a fair, honest hearing followed by rect taxes for Amazon.com, said, “Tech- of the states without a sales tax. Some an up-or-down vote on the Senate No Longer Needed? nology isn’t a silver bullet to resolve the people think an origin-based system is a floor.” But the Washington Times real administrative burdens facing both good approach, because companies will characterized Dole’s response to Some taxpayer groups doubt the need for the SSTP. large and small Internet sellers. I believe relocate where there is no tax. We think it Miers’s nomination as “chilly.” that the real benefit of the technology would be a race to the bottom.” CJ “As the nomination process “The SSTP was started by states that feared they would lose revenue solutions being developed by companies moves ahead, I look forward to re- to Internet sales. Since then, there are like Avalara will be to enable even the viewing Ms. Miers’ qualification and now software solutions that even a one- smallest of Internet sellers to be able to her views on the proper role of the person business with a Web site can get collect sales tax on Internet sales, once the Steve Stanek ([email protected]) judiciary,” Dole said. CJ to compute sales tax in every ZIP Code more than 7,600 sales and use tax regimes is managing editor of Budget & Tax News, in the country,” said William Ahern, are appropriately streamlined.” in which this article first appeared. Visit He added, “Amazon’s position is them at www.heartland.org. CAROLINA December 2005 JOURNAL CJ Interview  Apex Doctor Thrives in Practice that Doesn’t Accept Insurance

By CAROLINA JOURNAL STAFF get seen for five by practice because our office for a while, they realize — it RALEIGH their provider. of being able to dawns on them — that they could be r. Brian Forrest of Apex has So what I re- have low over- saving thousands of dollars a year if opened a medical practice that ally wanted to do head by getting they would switch to a health-care sav- he thinks is the health-care is flip that around, rid of these ad- ings plan. Dmodel of the future, because he declines not just for the ministrative costs to accept health insurance payments for patients, but also associated with Martinez: This does seem to be his patients. He was recently interviewed for me, so that I insurance. one of these classic, win-win situations. by Carolina Journal’s Donna Martinez felt like I had time It sounds like patients are getting more about how he conducts business and to spend with a Martinez: time with you as the medical profes- where he thinks health-care trends are patient. You believe this sional, also at a lower cost, and you going. One of the is the model of the feel good about the service that you’re major things that future, and as you delivering. Is that a fair representation Martinez: First of all, talk about you would notice also know, in late of it? your medical practice in Apex and why at our office is that 2003 Congress cre- it’s different from the traditional medical a full-schedule day ated health savings Forrest: I think so. I think patients office that we’re used to encountering. for us is usually accounts. The goal have had a very, very positive response 10 appointments. was to have more to this. Forrest: Our office in Apex has Then we leave the people have ac- The insured patients value the in- been open now for about three years, rest of the day open Dr. Brian Forrest of Apex may have hit on cess to health- care creased access and the ability to spend and when we first opened, I made the for walk-ins for our the health-care model of the future. coverage. Those more time with their physician. The decision not to accept any health insur- patients so that if [health savings uninsured patients certainly appreciate ance contracts and to basically accept they’re sick, they don’t have to neces- accounts] are basically where you have the fact that they’re getting charged a payment at time of service. My initial sarily wait two or three days to get in to a high-deductible, but low-premium fraction of what they normally would. goal, I thought, was going to be to help see their health-care provider. insurance policy in which, if you have I think one of things is that people serve people who fell through the cracks, illness or an accident, you are covered, really think that routine health care is a who potentially did not have insur- Martinez: What I think is interest- but the individual actually pays for more lot more expensive than it is — because ance, people that were normal cash-pay ing about this is, it really seems to be cre- of the day-to-day things. of the health-care premiums they are patients that often were in a position ating a one-to-one relationship between Are you seeing patients who are paying. But it’s really not. that they could not afford health-care the patient who is consuming health care coming in, who are accessing that health insurance, and they really had to pay for and the patient actually paying [for] savings account model? Martinez: Dr. Forrest, I understand insurance — or for medical bills — out health care. That’s very different from you are enlisting other doctors, that you of pocket. what most of us are used to dealing with, Forrest: Absolutely. We’ve had two are finding a lot of interest from other What I found over the last three where we have an insurance carrier, we types of patients. We’ve had patients medical professionals in moving towards years that’s very interesting is that about pay a co-pay, a deductible, but we never who come to us initially because they this model, are organizing folks. 75 percent of my patients have some form really know what the cost of the services know about our type of care and also of third-party medical insurance, and are that we’re consuming. that they know about — they already Forrest: Well, I’m not organizing they still choose to come to our practice Do you see your patients paying have — a health-care savings account per se, but I’m certainly being sought out. because of some of the unique features more attention to what they’re actually and they know that with our model, I have probably met with dozens of doc- and the way we can practice medicine buying? they will be able to save a substantial tors over the last year who have wanted differently — by not accepting insurance amount of money each year. And then to go out to lunch, who have wanted to and not having the overhead staffing Forrest: We certainly do. When I the other phenomenon that we have is, a do things — basically to get together and administrative costs associated with was at Wake Forest, I actually did sort of lot of our patients who are self-employed and talk about this model. And several filing insurance. an observational study myself where I and who have maybe been buying their have put those into place and there are talked to practice managers and actually own health insurance out of pocket with several new ones in Wake County start- Martinez: So it sounds like you looked at the cost of doing business per se copay coverage. After they are seen at ing now. CJ have chosen to take the approach that for medical practice. And the interesting gets you out of the traditional model that thing I found is that the average charge is very heavy in paper work, dealing with for just an average visit was around $93. third-party companies, etcetera. However, the amount of money that it How does that benefit you as a took these practices to collect their bill business person, as a doctor who’s a was about $50 per patient visit. So that business professional? meant that out of the $93 they charged, $50 of that was going to overhead. Forrest: I think one of the key ways The other issue is collections. A lot it benefits us is that, before I started this of times, insurance plans and patients practice, I had worked in a couple of who can’t pay or whatever, a lot of the different places and, even in residency, times your collections are less as well. So, I remember that we were often asked to in this observational study, the average see 15 to 16 patients per half day. And amount collected was only $39 and these headliner series in the private world of medical practice, practices were spending $50 per patient patient visits have been shown to be in- to collect $39. Well, obviously, if you do R. James Woolsey (Charlotte luncheon event) creasing by 7 percent every year. Here in that math it means the practice manag- Raleigh, the average is between 20 and ers were saying, “See more patients, see December 7, 2005, omni charlotte hotel 30 patients per day. more patients.” What was happening was, we were locke annual Holiday gala (7-10 PM) Martinez: Really? That’s incred- actually losing more money, because Phone 919-828-3876 December 8, 2005, north riDge country club ible. what I have found is that, for my type for ticket information practice, per provider, we’re saving BoB novak (raleigh luncheon event) Forrest: I really wanted to not about $210,000 a year in practice over- December 13, 2005, holiDay inn brownstone hotel be pushed that hard. I know a lot of head. What we simply do is reinvest that patients feel frustrated, they feel they back into the practice, such that we can dick moRRis (wilmington luncheon event) get sort of herded in and out of offices. reduce our fees, and our fees are about January 16, 2005, wilmington riversiDe hilton hotel They sometimes wait for 50 minutes and 50 to 80 percent less than the traditional December 2005 CAROLINA  Education JOURNAL

State School Briefs Designed to help NCAE

Bush urges better schools Teacher Pay Decision Rewards Political Ally The Bush administration has By JIM STEGALL begun to ease some rules for the Contributing Editor controversial No Child Left Behind RALEIGH law, The Washington Post reported, ov. Mike Easley’s decision to opening the door to a new way to grant teachers an across-the- rate schools, granting a few urban board $525 pay raise was a systems permission to provide Greward for the teacher’s union that federally subsidized tutoring and has supported him in the past but now allowing certain states more time needs his help. to meet teacher-quality require- The spending ments. plan was struc- Analysis “These actions amount to tured and timed a major response to critics who to help the North have called No Child Left Behind Carolina Association of Educators, a rigid and unworkable,” The Post key political ally, reverse its decline in reported. membership and to keep the union on U.S. Secretary of Education the governor’s team for future legislative Margaret Spellings announced a and electoral battles. pilot program where interested and The recently passed budget bill qualified states can submit propos- authorized a raise in the teachers’ sal- North Carolina Association of Educators offices at 700 South Salisbury Street in Ra- als for developing growth models ary schedule of about one-third of one leigh. (Photo by Don Carrington) that follow the “bright-line” prin- percent. However, a little-noticed pro- ciples of No Child Left Behind. vision in the budget also set aside $170 agreement was that some of the money cal victory that directly affects teachers’ Secretary Spellings made the million over the next two years as a con- should be used to keep veteran teachers pocketbooks. special announcement during an tingency appropriation‚ for addressing on the job longer. The current pay scale By waiting until the school year address to the Council of Chief State issues in teacher pay. Language in the tops out at 30 years. The School Boards was under way to announce the raise School Officers’ (CCSSO) Annual bill directed the governor to “analyze Association called for some consider- (rather than simply adding the extra Policy Forum in Richmond, Va. the current state public school teacher ation of the idea of differential pay, that money into the salary schedule at the “A growth model is not a way salary schedule, trends in salaries, and is, paying extra to attract teachers to start of the year) Easley also created a hard-to-staff disciplines such as science, news event designed to focus teacher at- around accountability standards. the current disparity between North math, special education, and English tention on the NCAE’s accomplishment It’s a way for states that are already Carolina teacher pay and the national as a second language. Other groups in wrangling an “extra” pay raise. raising achievement and following average to determine how teacher pay preferred to target school systems with The union trumpeted its success the bright-line principles of the law affects the state’s ability to recruit and high turnover rates. in getting Easley to see things its way. to strengthen accountability. retain highly qualified public school teachers” with a goal of improving edu- In contrast to these ideas for tar- An “action alert” on the NCAE website, “We’re open to new ideas, but geting the money to specific problem posted the same day as the governor’s we’re not taking our eye off the ball. cational opportunity and outcomes for North Carolina’s schoolchildren. The bill areas, the NCAE argued for an across- announcement, said the plan was “a There are many different routes for the-board 2 percent increase in teacher great victory for NCAE.” states to take, but they all must begin directed the governor to come up with a plan to reduce the pay disparity using pay, to be applied to the existing teacher Although the NCAE routinely with a commitment to annual assess- pay scale this year and next year. Most claims to represent 70,000 teachers across ment and disaggregation of data.” the contingency appropriation funds. According to the bill, Easley was participants in the meetings opposed the state, recent reporting by Carolina to consult with the speaker of the House the idea, because it failed to address Journal, the Public School Forum, and and the president pro tem of the Senate the problems of new-teacher recruit- the Education Intelligence Agency show before implementing his plan. Once the ment, loss of experienced teachers, and that the union’s true membership is far Projects unfinished in CMS three leaders agreed on a plan, no further shortage areas. lower and steadily declining. NCAE President Eddie Davis The decline among actual class- After Charlotte-Mecklenburg legislation would be needed to begin spending the money. declined to speak with CJ about the room teachers is greater, as the union’s voters shot down a massive bond Easley’s education advisor, J. B. reasoning behind his organization’s demographics continue to skew toward referendum that would have built Buxton, convened a series of meetings position. However, Dr. Myron Lieber- retirees, student teachers, and school- new schools and renovated old to seek input from various stakehold- man, chairman of the Education Policy support personnel such as janitors, bus ones, The Charlotte Observer reported ers from the education establishment. Institute and one of the nation’s leading drivers, and cafeteria workers. Since that nine city schools are still wait- Teachers groups; the N.C. Association of authorities on education employment active classroom teachers pay the high- ing for renovation projects that School Administrators; the N.C. School and teachers’ unions has written that est dues, their loss is a financial blow to voters had already approved over Boards Association; and the Public unions oppose plans to pay teachers the union. the last eight years. School Forum, a Raleigh-based educa- differently because the proposals are Reaction to Easley’s pay plan from According to the newspaper, tion policy think-tank, were brought in “divisive within the union.” the rest of the education community was “the schools are caught in a twi- for consultation. For example, Dr. Lieberman writes, muted. Few of the other organizations light zone created by controversial But the final plan, announced “For every teacher awarded merit pay, that had provided input while the plan bond tactics and shifting political Oct. 25 by Easley, reflected little input ten others will want the union to file was under development had any official winds. For instance, renovations from any group other than the NCAE. a grievance alleging that they deserve statement to make about the governor’s to Northeast Middle School near Representatives of the administrators, merit pay more than the teachers who announcement. Dr. Ellen Greaves, ex- Mint Hill were approved in 1997, the school boards, and Professional received it.” He stated that a union ecutive director of PENC, applauded 2000 and 2002. Educators of North Carolina (a nonunion “must avoid internal controversy as Easley’s efforts and called the move a Charlotte-Mecklenburg professional association for teachers) much as possible.” “good first step.” Schools says the work won’t be fin- had argued that the money should be Easley’s plan satisfies the NCAE’s But she also pointed out that ished until 2009, stalled by contro- targeted to problem areas such as begin- desire to reward teachers equally by the state already has a Teacher Reten- versy over construction priorities. ning teachers’ pay. The Public School giving all teachers an extra $75 a month tion Task Force working on a plan Meanwhile, soaring construction Forum recently issued a report showing for the remaining seven months of the to recruit and retain better teachers, costs have eroded the budget, caus- that North Carolina’s average starting school year. It also gives the union and that teacher pay is “just one of ing CMS to scale back.” CJ teacher salary of $25,572 was lower than something it desperately needs to re- the factors that affects whether some- that of all five neighboring states. verse its declining membership among one becomes a teacher or remains a Another idea that received broad classroom teachers — a tangible politi- teacher.” CJ CAROLINA December 2005 JOURNAL Education  Burdensome Regulations Inhibit Commentary Participation in School Choice Unions Have Stranglehold — For Now By SAM A. HIEB is no schools were eligible for the pro- esults from the November elec- the CTA was given $2.5 million to Contributing Editor gram in 2000-01 or 2001-02, so no new tion showcase the staggering defeat the governor’s education ini- GREENSBORO students were able to enter the program political influence of teach- tiatives. More money was slated to ourt challenges and burdensome during that time. Rers’ unions. Nowhere is this more follow, with $6.7 million allocated procedures have had dramatic Still, even though there were eli- evident than in California, where for California and New Jersey. effects on participation in school gible schools in every subsequent year, the California Teachers’ Association Unfortunately, Propositions Cchoice programs around the country, participation once again declined after (CTA) has become a modern-day 74, 75, and 76 join a long list of oth- according to a report recently issued by a slight increase. Forster cites lack of Goliath. Flexing powerful er good ideas stamped the Friedman Foundation. media coverage as one reason for the special-interest muscle and out by the union. The The report, Using School Choice: decline. dispensing fistfuls of cash, CTA has also lobbied Analyzing How Americans Access Educa- “Because parents only have a two- the CTA seeks to squelch any successfully to prohibit tional Freedom, was issued in October and week window to apply, media coverage challenge to its bureaucratic California schools from it evaluates the process parents must go is crucial,” Forster said in a telephone stranglehold on California’s hiring private firms to through to participate in school choice interview. “If parents don’t hear, then public schools. provide food, transpor- programs, rating each for ease of access that two-week window is ticking and This fall, three ballot tation, janitorial and and use. It also collects, for the first time, parents don’t know it. Of course, as the initiatives pushed by Gov. landscaping services. historical data on participation in school program becomes old, it’s going to be Arnold Schwarzenegger Yet, studies show out- choice programs. covered less.” could have chipped away sourcing cuts costs by Greg Forster, author of the report But another major factor has been at the CTA’s mammoth in- 20 to 40 percent, mak- and a senior fellow a court challenge fluence. The first, Proposi- Lindalyn ing it a sound business at the Friedman to the program. tion 74, would have raised Kakadelis practice. For the CTA, Foundation, writes Under Florida the work requirement though, protecting that overbearing “Legal challenges to law, government for teacher tenure to five union jobs is far more application proce- programs are al- years. Currently, teachers receive important than meeting the needs dures “can create vouchers are going to be lowed to continue lifetime employment guarantees of schoolchildren. barriers to partici- with us for a while.” under court chal- after just two short years. Proposi- But shouldn’t children be the pation if they are lenges if the state tion 74 would have given California focus of our educational attention? onerous or confus- Greg Forster is appealing to a principals more time to weed out A snapshot of California’s academic ing.” The Friedman Foundation higher court. So the state’s weakest teachers, creat- performance reveals a system that Court chal- the program had ing necessary job accountability. is failing to educate students in lenges similarly no real danger of Yet, 55 percent of voters said “no.” the basics. Currently, more than discourage partici- being shut down The second measure, Propo- 1,700 California schools fall short of pation by placing a program’s future in until the case reached the Florida Su- sition 75, would have protected Adequate Yearly Progress standards doubt. preme Court in the summer of 2005. So teacher paychecks from union in- under No Child Left Behind. “Where there is reasonable chance the very real possibility of the program terference. Currently, the state must Nevertheless, the union de- that a program might be cancelled on the being ruled unconstitutional and being hire CTA members; dues are then clares war on any threat to its way whim of a judge, possibly in the middle shut down may have depressed enroll- automatically deducted from the of life. The day after California’s of a school year, parents likely will ment. paychecks of CTA teachers. These special election, CTA president take into consideration the disruption As of now, the Florida A+ program funds are used to support political Barbara Kerr issued the follow- that might cause their children and the is still waiting on a decision. candidates and initiatives favored ing veiled threat: “The teachers of problems they might have dealing with “In the school choice movement, by the union “godfathers,” whether California will not be silenced…No their local schools after being forced to we’re fairly experienced with courts not members agree or not. Proposition one should doubt that CTA and its return there,” Forster writes. taking into consideration the fact that 75 would have ended this unseemly 335,000 members have the will and Of the 14 school choice programs parents need an answer to plan their practice, requiring all public em- the resources to stand up for stu- rated in the report, five — Milwaukee’s children’s lives around,” Forster said. ployee labor unions to obtain writ- dents, our public schools and our voucher program, Maine and Vermont “To the judges, it’s less immediate.” ten member consent before using profession.” town tuitions, Arizona’s tax-funded Enrollment in other successful dues for political concerns. But this Yes, teachers’ unions have scholarships and personal tax credit pro- school choice programs around the proposition was defeated by 53.4 the will. And for now, at least, they grams in Illinois and Iowa — are rated country has been depressed by court percent of voters. have the resources — however “excellent” for ease of access, while two, challenges. When Milwaukee’s voucher The third measure, Proposi- suspect their collection of funds the Florida A+ voucher program and program allowed religious schools to tion 76, would have limited state may be. But the fight to reclaim the Washington, D.C. voucher program, participate in 1995, a court injunction spending on schools to the prior American education is only just received “poor” ratings. kept them from doing so. In 1998, the year’s level of spending, plus three beginning. Around the country, in- Under the Florida A+ program, the Wisconsin Supreme Court ruled in favor previous years’ average revenue novative schools and programs are state assigns each public school a letter of participation by religious schools. growth — a smart idea, given the pushing back against union power, grade based on its performance in the After the U.S. Supreme Court refused to fact that research continues to steadily reclaiming the ideological previous school year. If a school gets hear an appeal of the case in November dispute any link between higher ground. Eventually, market-based an “F” grade, or has had one in any of 1999, the program under went the great- spending and student achievement. concepts like choice and competi- the three previous years, students may est growth of any program in the country Yet, 62 percent of voters rejected tion will prevail. And as the inevi- apply for a voucher to attend a private rising from 2.1 percent in 1997-98 to 20.5 these spending parameters. table union casualties continue to school. percent in 2003-04. Why were three sensible re- mount — in the form of falling test The program received its poor rat- Though several school choice form initiatives handed such sting- scores, enduring achievement gaps, ing based mainly on a narrow two-week programs have recently passed with- ing defeats? Consider the political and frustrated teachers — we will window to apply for a voucher. Adding out legal challenges, Forster said that’s war chest with which the CTA win back voters, and with them, to the difficulty is the fact that parents do not necessarily an indication that the battles school reformers and their America’s schools. CJ not even know whether they are eligible courts will stay out of school choice is- proposals. As the state affiliate of until school grades come out. sues, especially if the Florida program the National Education Association While the number of students par- is struck down. (NEA), the CTA receives millions of ticipating in the program has increased “Legal challenges to vouchers dollars for political activity; in fact, Lindalyn Kakadelis is director of since 1999, the percentage of students are going to be with us for a while,” during the 2005 NEA convention, the North Carolina Education Alliance. participating has declined. One reason he said. CJ December 2005 CAROLINA 10 Education JOURNAL

School Reform Notes One and one don’t add up

Charters want lottery funds Charter Schools Judged Unfairly, Experts Say According to a report in the By KAREN WELSH Asheville Citizen-Times Nov. 21, Contributing Editor charter school parents and admin- RALEIGH istrators want state lawmakers to wo 2004 reports cast a disparaging allow some lottery proceeds to go light on charter schools in North towards their school construction Carolina, but critiques of those and other building needs. Current Treports say they are riddled with error state law prohibits state money for and fail to factor in the fact that charter the purchase or maintenance of schools intentionally target students buildings for charters. who are failing to perform in traditional Lottery money would enable classrooms. charter schools to enhance teacher University of Connecticut Profes- salaries, enrichment programs and sor Robert Bifulco and Duke Univer- develop better libraries, Jackie Wil- sity Professor Helen Ladd for the Terry liams, executive director of Ever- Sanford Institute authored one of those green Community Charter School in reports, finding that state charter school Asheville, told the Citizen-Times. are “lacking.” “We have a very, very tight “Parents often expect charter budget,” Williams said. “That schools to provide a stronger academic means our teachers don’t get paid experience for their children than tradi- as other state employees. The state Charter schools being criticized for having low-performing students, but reports fail to tional public schools, but that is typically point out that many charter schools actively promote themselves to just such students. spends less money on a child in not the case,” Ladd, a professor of public a charter school than in another policy studies and economics told her of academically gifted students found regular public school.” in the regular public school system. publicly funded school.” campus newspaper. “Our study finds In the end, however, Newmark “Her sample of North Carolina charter “I think it’s a question of get- that charter school students perform less said Hoxby failed to reach the right con- schools includes 11 schools targeting ting our political leaders to look at well on average in charter schools than clusion. He criticized the latter report, at-risk students while her sample of the situation and see the unfairness they would have in traditional public stating the identifying factors were too North Carolina regular public schools of the situation,” said Ken Patterson, schools and the negative effects of at- restrictive and her strategies incomplete does not include any,“ he said. “When I whose daughter attends Evergreen, tending a charter school are large.” in at least two areas. modify her method to account for these to the Citizen-Times. “Legislatively, Another study, conducted by Caro- Unfortunately, the National Edu- two facts, I find that the proficiency of we need to talk to our politicians line Hoxby, on behalf of the American cation Association and other educational North Carolina charter school students and get people to step up.” Federation of Teachers, rendered similar organizations have latched on to the false is not significantly different from their findings. findings and are using them to make a regular school counterparts.” North Carolina State University case against charter and school choice S.C. Gov. promotes choice An “Innovation in Education” Economist Craig Newmark, however, in general. policy report by North Carolina Edu- said the models used for both studies “In a study that followed North In an op-ed for The Charlotte cation confirms Newmark’s facts. The were riddled with errors, consisting Carolina students for several years, pro- Observer, South Carolina governor study found the state’s charter schools of mathematical and statistical materi- fessors Robert Bifulco and Helen Ladd Mark Sanford said that when it have more black and Hispanic students, comes to making the state more als omitted during the author’s final found that students in charter schools fewer white pupils and a higher percent- actually made considerably smaller competitive and more successful calculations. age of male students than traditional in education, he has always firmly In a policy report entitled. “An- achievement gains in charter schools public schools. than they would have in traditional pub- believed that parental choice in the other Look at the Effect of Charter “There seems to be a growing market is critical. Schools on Student Test Scores in North lic schools,” the NEA website states. tendency for charter schools to attract Despite the push to discredit char- “I am more convinced of that Carolina,” Newmark questioned Bifulco pupils who were not thriving in their than ever after having seen first- and Ladd’s findings, stating the report ter schools in North Carolina, there are traditional public school environment. many who aren’t biting. Sen. Edward hand how choice turned thousands faced “serious problems.” Charter schools also have a slightly of young lives around in places Newmark said both Bifulco and Goodall, R-Mecklenburg said it’s dif- higher percentage of special education ficult to compare apples with oranges like Milwaukee and Cleveland,” Ladd’s conclusions made him question children than non-charter schools. This in these types of studies. Sanford wrote for the Nov. 20 issue. the relevance of their public and charter occurs because some schools form spe- He said most assessments don’t “We owe it to those kids whose school comparisons. “For example, the cifically to serve special-needs students; mean much in the charter school realm needs for whatever reason aren’t fact that charter schools have a much alternatively, some children with learn- because those children need to be judged being met by their current school to smaller percentage of gifted students ing disabilities choose charter schools on a different criteria. “I’m not interested at least explore how these success than regular public schools is ignored,” because they are not well-served by their in their test scores,” he said. “Instead, stories might be duplicated here in Newmark said. “In each year studied, assigned public school.” I’m interested in how much they’ve South Carolina. the percentage of gifted regular public Unlike Bifulco and Ladd, Hoxby “It’s important because at school students is at least 4 percentage admitted she overlooked some vital progressed from where they’ve started the end of the day, school choice is points higher than in charter schools. information in her first study. She reas- out. Targeting at-risk children cannot be not just about its impact on those In the last year of the study, 2002-2003, sessed the information and determined viewed as a failure.” thousands of individual lives, but this percentage is more than three times her methods were indeed biased when The “Innovation in Education” the fact that it has been instrumen- that of charters: 13.62 percent for regu- she compared charter schools against report agreed, stating North Carolina’s tal in improving public education lar schools compared to 4.2 percent for regular public schools. charter schools are thriving, while pro- wherever it’s been tried. charters. Failure to incorporate this fact “Charter schools for at-risk stu- viding more than 21,000 students across “Take Milwaukee, which saw into their study biases it against charter dents seek out applicants with poor the state with proven and effective alter- its public school enrollment, gradu- schools.” achievement, so they should not be natives to traditional public schools. ation rate, per pupil funding and test Newmark also found the same criticized for having students whose “While it is true that students results all go up after school choice flawed premise in Hoxby’s procedures. achievement is low,” Hoxby wrote in generally tend to come into charter was implemented there. The only In a report entitled. “Reassessing North her second paper. “Put another way, schools at a lower achievement level thing that dropped over that same Carolina’s Charter Schools: A Note on if a school deliberately seeks out low- than their peers in other public schools, charter pupils are gaining ground at a period was the dropout rate!” CJ Caroline Hoxby’s Findings,” Newmark performing students, there is little or no said the Harvard researcher did not information to be gleaned by comparing faster rate than other non-charter stu- take into account the higher number its outcomes to those of its matched dents,” the study stated. CJ CAROLINA December 2005 JOURNAL Education 11 New State School Superintendent Doesn’t Mince Words

By PAIGE HOLLAND HAMP DPI employees have fewer than five provide choices for students and parents is ensuring students are succeeding in Contributing Editor years with the department, Atkinson particularly at the high school level. elementary and middle school, she said. RALEIGH is committed to providing develop- “There are many courses of study, Students who are succeeding have a very n August 23, 2005, after eight ment to build a strong organization for example some foreign languages low risk of dropping out, she added. months of legal wrangling, Dr. by retaining talented employees that like Chinese, that only a dozen or so To that end Atkinson believes the June Atkinson became the first can provide statewide leadership, students at a high school are interested NAEP results can provide the informa- Ofemale State Superintendent in North which she said is critical at all levels. in taking, but across a county you might tion needed to build a better curriculum. Carolina history. Dr. Atkinson has a long “Professional development for have enough to fill three classes,” she “For example, with our reading resume of accomplishments. . . teacher, teachers is key to improved stu- explained. “By creating online courses curriculum, many of the kids can say author and 28 years with DPI . . . that dent outcomes,” said Atkinson. in conjunction with our Universities and read the words,” she explained, qualify her to lead the state’s education “It’s not fancy but it’s effective.” and colleges we can provide these “but they are not reading for informa- system. In addition, She said she will options to the families we serve.” tion. Just being able to say the words she brings an absolute promote national stan- Another issue is the role technol- is not enough. They must understand candor about the state dards for professional ogy can play in providing high school and be able to utilize the information.” of education in North development. “Just course options in rural or isolated areas. Atkinson said that if educa- Carolina that will aid as other profession- “We have worked with UNC to develop tors can truly teach students to her in her task. als must continually AG [academically gifted] level classes glean information from what they D r. A t k i n s o n keep up in their fields, that can be offered online,” Atkinson read it would impact every subject. doesn’t try to manipulate educators much invest said. “We can expand the [UNC online “When I read for pleasure, which the numbers, talk in cir- in development or risk teacher resource site] Learn NC concept is what we have been promoting, in a cles to avoid hard ques- becoming dinosaurs,” to dramatically increase course options couple months I remember very little,” tions, and she doesn’t she said. She also said that are requested by students, but she said. “While we don’t want to mince words. “We have she believes educators would be impossible, financially, to af- discourage reading for pleasure, we as a lot of work to do in must see this as part of ford in a traditional classroom setting.” educators must learn to teach reading North Carolina,” states their obligation to their If technology is used for some for information in our classrooms.” Atkinson, “Our NAEP profession and not an of the routine delivery of information, Atkinson’s energy and enthusiasm scores for 8th graders “add-on” in which they she said, teachers can be freed up to be will go a long way in helping her achieve State School Superintendent have fallen below the Dr. June Atkinson are forced to participate. facilitators of true learning and as rela- her goals for North Carolina, but she un- national average and E v e r y y e a r tionship builders who will be attentive to derstands that she faces numerous chal- according to the Manhattan Institute our through national research educators the needs of children and their families. lenges. The biggest, from her perspective, graduation rate is a dismal 67 percent.” discover more about how students learn. Improving North Carolina’s gradu- is “bringing all the players together.” After losing time waiting for One essential tool in a modern educa- ation rate will also be a focus for Atkinson. “There are so many entities work- election results to be ratified, many tion system is the way technology can “We must begin with the end at ing in education across the state,” she might have complained, but Atkinson positively increase student performance. mind which would be a 100 percent said. Atkinson said that in some areas has jumped into the job with both feet. Effective use of technology in the class- graduation rate,” she said, “and then of the state there are so many services She says she is committed to mak- room is critical and if teachers don’t set benchmarks to get to at least 85 that resources are being wasted through ing significant progress during her know how to use it they lose significant percent within the next three years.” duplicated services, while in other areas tenure in key areas . . . increasing the opportunities for increased learning. She said that in the short-term educa- of the state, there are few services at all. graduation rate to at least 85 percent, Without professional development, tors must concentrate on the 9th grade, The bottom line, she believes, using technology to boost effectiveness many teachers don’t know how to effec- where the highest dropout rate occurs. is looking at the whole picture and and student outcomes, and ensuring tively use technology in their classroom. Across the state, where she has doing what is best for all the chil- educators at all levels have profes- Atkinson said that technology observed 9th grade academies that dren in North Carolina. Also, she is sional development opportunities. can provide options for learning that work helping transition students, there including a group often left out: par- Surprised to learn, after taking would otherwise be cost prohibitive. has been significant improvement, ents. Her parent advisory committee over in August, that 47 percent of In addition, she said, technology can she said. But the long-term solution will begin meeting in January. CJ December 2005 CAROLINA 12 Higher Education JOURNAL Bats in the Belltower UNC Center Gets Around to Discussing Poverty Beware the Facebook Police Executive Director John Edwards pushes effort to get capital income taxed the same as wages In November, the North Carolina State University bureau- By SHANNON BLOSSER included the University of Michigan, ing that the current rate is a “national cracy was in high dudgeon over Associate Editor Harvard University, Yale University, embarrassment.” “FACEBOOK VIOLATIONS” and CHAPEL HILL and the University of Texas. Edwards said his plan to reduce held a rush “town hall meeting to everal months after the Center for On the Web site for the Oppor- poverty by increasing taxes were a way discuss recent alcohol violations Poverty, Work and Opportunity tunity Rocks tour, Edwards says, “We to “level the playing field.” found on http://thefacebook.com. was announced, the center and its have all seen the wreckage of Hurri- “We don’t treat wealth differently Testimonies from the students Sexecutive director cane Katrina – people packed into the than work,” Edwards said. “Taxing one involved and presentations from former U.S. Sena- [Louisiana] Superdome and convention differently than we tax the other doesn’t key administrators will begin the tor and Democrat center with only the clothes on their make sense.” meeting.” It seems an overzealous Vice Presidential backs. We’ve all asked what brought During the discussion Kemp dis- resident advisor went snooping candidate John them there. Many things did, but one of missed Edwards’ plan to take capital through her residents’ photos on Edwards have be- them was poverty. Widespread poverty income the same as wages. He said it the “Facebook” online looking for gun to get busy existed before Katrina and it will persist had been tired before and was the main violations of the alcohol policy (and on its charge of after the Gulf region is rebuilt, if we let reason for the recession in 1988. “It is not goodness knows what else), then addressing pov- the images that we’ve watched on the ordinary income,” Kemp said. “You are went squealing to the authorities erty issues in the news fade from our memories as they taking a risk.” with her findings. United States. fade from our television screens.” Edwards, however, continued with John Edwards The Facebook is a private, on- Since it was At UNC-Chapel Hill, Edwards has campaign themes that he had during his line community specifically geared announced in Feb- hosted several forums and panel discus- own presidential bid and his run with for college students. Through ruary, the center, which is part of the sions aimed on solutions to getting more Sen. John Kerry for president in 2004 it they post information about UNC-Chapel Hill School of Law, has people out of poverty. claiming that there were two groups themselves, link to their friends’ been focused on holding forums, town One of the forums was a town hall in America — the haves and the have Facebook pages, meet and greet hall meetings and panel discussions discussion between Edwards and former nots. He said the tax code was a reason friends’ friends and others online, most of which have been held at UNC- Republican Vice Presidential candidate for that problem. join groups of like-minded peers Chapel Hill. Edwards also was the and former Secretary of the Department “It feels inherently wrong to most worldwide, and so forth. And they featured speaker of an Opportunity of Housing and Urban Development people,” Edwards said about not taxing also post photos of themselves and Rocks college tour sponsored by the Jack Kemp. The two discussed tax op- capital income the same as wages. their friends. Center for Promise and Opportunity, a tions and other solutions to poverty in Besides the Edwards-Kemp town NCSU’s student newspa- Washington-based think tank. per, Technician, reported on the front of a crowded Elizabeth Price Kenan hall discussion, the Center has also The Opportunity Rocks tour took “Facebook Violations” meeting. Theatre on Oct. 31. hosted a one-day conference in Novem- One “Paul Cousins from the Of- Edwards across the country to speak to “I think there is a hunger in this ber on poverty issues. fice of Student Conduct” was college students at 10 colleges in October, country for big ideas and where this Edwards was joined in the panel particularly incensed, reportedly including UNC-Chapel Hill. country needs to go,” Edwards said. discussion by Jared Bernstein of the telling students, “Either you drank In each of those events, Edwards, “People are looking for a big vision.” Economic Policy Institute, Ray Boshara or you didn’t, it’s pretty damn a potential presidential candidate in During the discussion, Edwards of the New America Foundation, Tim simple.” He then “recommended 2008, has tied the poverty issue around advocated a plan to tax capital income Kane of the Heritage Foundation, Anna the students take responsibility the devastation caused in New Orleans the same as wages, calling it a fair and Berger of Change to Win, and William and admit either guilt or innocence and other parts of the Gulf Coast by Hur- the right thing to do. He also advocated Julius Wilson of Harvard’s Malcolm when faced with their interviews,” ricane Katrina. Other stops on the tour an increase in the minimum wage say- Weiner Center for Social Policy. CJ warning students, “We’ve been us- ing photos for years — evidence is evidence” and “I can access your unity account under the right cir- Broad Says Farewell, Details Her Accomplishments cumstances.” By BRIAN SOPP “The joy of this profession derives of the legislature and other state leaders. NCSU is usually not the first Editorial Intern from being a part of something bigger “I have been amazed by how much we mover in academic Orwellianism, CHAPEL HILL than any person or thing that literally have accomplished,” she said. and it isn’t so now. Other univer- utgoing UNC President Molly transforms lives,” Broad said. “I want Broad also talked about one of sities have the Facebook Police Broad gave her final address each of you to know what an honor it her biggest political victories —the pas- already. Fisher College in Boston b e f o r e has been to serve beside such an incred- sage of the 2000 higher education bond expelled sophomore Cameron OBoard of Gover- ible team.” — during her speech. The 2000 bond, Walker for his Facebook comments nors members in In her remarks, Broad returned which was the largest bond referendum about a campus police officer. A November detail- to themes from her inaugural address American higher education history judicial affairs panel at Duquesne ing what she con- eight years ago where she emphasized played a vital role in the growth of the University found sophomore Ryan sidered were her the need to build access and quality, UNC system, she said. Miner guilty of “’sexual orienta- accomplishments improve the public schools of North Broad urged the BOG to “continue tion’ harassment” for comments he during her term. Carolina, and improve the North Caro- to make capital investment” because wrote on his Facebook page. Broad gave lina economy. “growth in access still hinges on space.” Also, UNC-Greensboro Caro- the speech during During her eight-year tenure, In this new global economy Broad said linian columnist Luke McIntyre the BOG’s Nov. 11 Broad said expanding access was the “we must invest more capital in every wrote recently that “in Cone meeting. She will UNC President BOG’s “highest goal.” During that time student and faculty worker to increase Hall a resident was charged with retire as the UNC Molly Broad enrollment has grown by 37,000 students productivity.” The UNC system has drinking in the dorm [after] the system president and the minority growth rate has been also seen growth in the research field. resident in question took pictures on December 31. The next day, former double that of the overall growth rate. Since 1997, approximately 250 degree of herself drinking and posted Clinton Administration Chief of Staff From 2004-05 the UNC system grew programs have been added and research them online, conveniently linked and former Democratic U.S. Senate by 6,600 students to a total of 196,248, contracts and grants have more than to her Facebook account. From candidate Erskine Bowles will officially the fifth consecutive year the system’s doubled, growing to over $1 billion. there her Community Advisor take over as president. enrollment grew by more than 6,000 Broad was also proud of the (UNCG’s phrase for RA) saw them Broad plans to take a year off before students. founding of a Washington office. She and she was written up.” CJ assuming a position at the UNC-Chapel Broad said many of those accom- said the office would help to promote Hill School of Law in January of 2007. plishments were made possible because UNC interests in Washington. CJ CAROLINA December 2005 JOURNAL Higher Education 13 GAO Wants Transfer Process Commentary Streamlined to Decrease Costs Will UNC Ever Be Diverse Enough? ast April, UNC-Chapel Hill historically black colleges and By SHANNON BLOSSER have to repeat classes they have already released its “Chancellor’s Task universities, where there is little or Contributing Editor taken when transferring to another Force on Diversity” report, no effort made to recruit a “diverse” RALEIGH school — and that we provide them L58 pages in length and loaded with student body, hire a “diverse” recent report by the Government help to find out where their credits will eight big recommendations for faculty, create a “diverse” cur- Accountability Office says the be accepted,” Enzi said. making the Chapel Hill riculum, and so on. Are transfer process used by univer- The report found that 69 per- campus more diverse. the graduates of those Asities could increase taxpayers’ costs and cent of higher-education institutions And in his State of the institutions handi- should be streamlined. had some form of an agreement with University speech, capped in some way by The recommendation was part of a institutions in regional accreditation Chancellor James Mo- the lack of “diversity” report requested by Republican higher agencies. Some institutions also have eser devoted several around them as they education leaders in both the House agreements through state legislation or paragraphs to this sub- go about their studies? and the Senate as Congress continues to other statewide initiatives to allow for ject, saying that “Diver- Does a Shaw University consider reauthorization of the Higher transfer of credits between institutions sity is a key component graduate necessarily Education Act. Specifically, the GAO within a state. of our academic plan,” have trouble in dealing wants the Higher In 1996, the and lauding “improve- with whites, Asians, Education Act to N.C. General As- ment in the diversity of Hispanics, and others include legislation sembly approved our full-time permanent who differ from him in to require higher- “A student’s inability to legislation that re- faculty.” countless other ways? education institu- transfer credit may re- quired the Board Alas, UNC-Chapel Hill is not The answer to that question, tions eligible for of Governors and yet diverse enough. The Task Force I believe, is a strong “No.” That financial aid fund- sult in longer enrollment, the State Board of report recommends, for example, is because people don’t have to ing from the fed- Community Col- that the university increase the learn about all the details of other eral government more tuition payments, leges to work on number of “minorities” in execu- people’s lives and background to issue a state- a credit transfer tive, administrative and managerial — something that is impossible, ment regarding and additional federal plan between in- positions. That might be accom- no matter how devoted we are to the school’s credit financial aid.” stitutions within plished through a heavier emphasis “diversity” — in order to interact transfer policy. the community on “diversity” in hiring and promo- positively with them. Shaw stu- According to college system and tion. dents understand it. So do students the GAO’s report, the university sys- Like most discussions of from Brigham Young and Yeshiva, students across the General Accounting Office tem. diversity, the focus is all on how just to name two more non-diverse country encounter report on university North Caro- to achieve more diversity, with it schools. You don’t need an educa- problems when at- transfer policies lina is also ahead being simply assumed that this is tion at a college that consciously at- tempting to trans- of the GAO report a desirable goal. But is it? Exactly tempts to make sure it has the right fer credits from on the recommen- why would the university be better percentages of each minority group one institution to dation to provide if it had more “minority” adminis- to be able to interact with people the next. Some institutions, according information about transferring credits. trators? What is it about “diversity” from different races, religions, etc. to the report, accept only credits from In 1995, the Assembly passed a bill to that makes it the Holy Grail of edu- It’s the great conceit of modern regional accreditation agencies and not require the Board of Governors and the cation leaders these days? liberalism that if good things are to from national accreditation agencies. community college system to develop The closest I can come to an happen, they have to be arranged A regional accreditation agency is a plan to provide students with infor- answer seems to be along these by authorities. Contrary to all more likely to accredit colleges in states mation on transferring credits among lines: Since the goal of the uni- evidence, they believe that we need that typically border each other, while community colleges and between com- versity is to educate students and economic planning, health care national organizations focus on special- munity colleges and the UNC system. knowing about the diverse world planning, retirement planning and ized institutions and have more recently The GAO report says graduates in which they live is a vital compo- so on, done for us by government. attempted to align their curriculum with who transfer credits from a community nent of education, it follows that the The diversity movement is just the more traditional four-year colleges, the college on average take 10 more credits more the university resembles the latest variation on that theme: if we report says. and extend their college careers by three world, the better will its students are to have a harmonious society, In 2001, 40 percent of students months more than students who don’t be prepared for a productive and government needs to engineer entering college during the 1995-1996 transfer credits. Additional tuition, the harmonious life. If that’s true, then schools so that they replicate society academic year attended at least two in- report says, could be $150 per credit UNC-Chapel Hill has quite a way to in miniature. stitutions during the next six years. Each hour for a public institution and $520 go. Its “global mosaic” is certainly The better approach, both in year the federal government spends for a private institution. lacking representatives from many economic and social policy, is to more than $20 billion on higher-educa- Rep. John Boehner, R-Ohio, chair- nationalities, cultures, religions, allow things to happen spontane- tion programs. In 2004, the spending man of the House Education and Work- philosophies, etc. ously, based on individual action. was $21 billion. force Committee, said the report shows Is it really true, though, Freedom works remarkably well. “A student’s inability to transfer that the rules need to be more flexible for that people will learn to be better Diversity initiatives have credit may result in longer enrollment, today’s college students, who are more citizens of the global village if they become the badge of honor among more tuition payments, and additional apt to transfer than before. have been educated in an institution education administrators, but if they federal financial aid,” the report says. “[I]t has become more important that has maximized its “diversity?” abandoned them and went back to Data is not available to suggest what the than ever to ensure that college students One way of approaching basing decisions on merit instead costs would be on the federal govern- are free to transfer from one institution to this question would be to ask if of factors that supposedly make ment and taxpayers, the report adds. another without unfairly losing credit for there is any evidence or reason to schools diverse, they’d be making Sen. Mike Enzi, R-Wyo., chair- quality courses they have completed,” he believe that students who attend the right move. CJ man of the Senate Health, Education, said in a statement. CJ highly diverse institutions are better Labor and Pensions Committee, said equipped to deal with the world the Higher Education Act included than are students who attend col- some of the recommendations from the Shannon Blosser (sblosser@popecen- leges where diversity is not treated George C. Leef is the executive GAO report. ter.org) is a staff writer with the John W. as a value for its own sake. director of the Pope Center for Higher “It’s important that we give stu- Pope Center for Higher Education Policy There are, for example, many Education. dents some assurances that they will not in Chapel Hill. December 2005 CAROLINA 14 Higher Education JOURNAL Course of the Month Commission Examines Higher Normal American Values Equal Education’s Role in 21st Century Social Deviance in NCSU Courses By SHANNON BLOSSER ing, non-transfer students. The trouble is Contributing Editor that over half of today’s college students RALEIGH are nontraditional students.” most remarkable thing oc- just members of society in general group of higher-education Charles Miller, a private inves- curred this semester. Two (9) — is, in a recurring “correct an- leaders has been organized to tor who is the former chairman of the separate students, indepen- swer” on the exam, “mindless obe- examine the role of higher edu- University of Texas system’s Board of dently of each other, sent Course of dience to the political and economic A Acation in the 21st century. It will release Regents, is leading the commission. the Month exams from two separate propaganda machine.” a report next year. Two university presidents — Charlene sociology classes at North Carolina One thing Terry decidedly Commissioned by the Department Nunley of Montgomery College and State University. Both students com- does not demonize is the former of Education, the Commission on the Robert Mendenhall of Western Gov- plained about Marxist proselytizing Soviet Union. According to Terry, Future of Higher Education includes ernors University — also serve on the and unabashed anti-Americanism and (18, Four) “the U.S. spent billions 18 members, including professors, commission. anti-capitalism in their classes. More of dollars each year to convince itself university presidents, business lead- Nunley cochaired a committee remarkable still is that both students and the American public of the dangers have the same instructor, Dr. Margaret of Soviet aggression and of the inferior ers, and government officials. Former that reported to the Maryland General Terry. U.S. position in the North Carolina Gov. James Hunt is the Assembly in November 2003 about ac- Having looked arms race” (emphasis only former elected official on the com- cessibility issues in higher education over their exams, CM added) because the mission. in the state. The agrees with them. Dr. “U.S. capitalists were What is being paper, “At risk: Terry seems to have battling an ideological termed as a “na- “It’s time to examine Access in Higher abandoned all pretense foe” and because “[i]f tional dialogue,” Education,” in of addressing the titular Soviet social-economic the commission how we can maximize general addresses issues of her classes ideas became global, is the brainchild increased enroll- and devoted herself then capitalists would of Secretary of our investment in higher ment demands at full-bore to Marxist lose global private- Education Marga- institutions, ca- indoctrination. profit-making.” ret Spellings. She education.” pacity issues, af- hopes the com- fordability, and The test questions What about Margaret Spellings are shrill, brimming “Agriculture and Rural mission will look statewide issues with socialist slogan- Society”? It supposed- at how to improve U.S. Sec’y of Education in Maryland. In eering, the material ly covers “[a]pplication higher education the report, the highly dubious, the list of sociological con- while meeting the committee rec- of multiple-choice answers chock- cepts, methods, theories and styles needs of an increas- ommended that full of communist and anti-Ameri- of reasoning to major social prob- ing global economy. The commission is Maryland make need-based financial aid can canards, and the wording so lems facing rural America.” expected to release its recommendations a priority, as well as supporting capital leading as to be doubly insulting to But instead, it is mostly about to the public in August. needs projects at institutions among students’ intelligence. blaming white racism for commu- The commission has already met other recommendations. But don’t take our word for nist ideas not taking hold in Amer- once, in October, since it was announced “Maryland, like other states across it. See the tests for yourself: www. ica. See, for example, question 14 in September during a press conference the country, must confront a very dif- johnlocke.org/site-docs/Social_De- from the exam, to which the answer in Charlotte. Its next meeting is sched- ficult public policy issue — how do we viance. for credit is “True”: “Many whites uled for Dec. 8, 9 in Nashville, Tenn. accommodate a growing number of The two classes are “Social expressed their superiority over During the first meeting, Spellings students who want to attend a public Deviance” (Sociology 206) and non-Whites and definedthem, rather outlined the charge for the commission institution of higher education,” the “Agriculture and Rural Society” (So- than the capitalists, as the enemy” and what she expected over the next sev- report says. “The current capacity of ciology 241). According to NCSU’s (emphasis added). Even though eral months as the membership works our institutions is already stretched. As Course Catalog [http://www2.acs. capitalists, per question 18, “were toward a future for higher education. this [Joint Chairmen’s Report] Report ncsu.edu/reg_records/crs_cat/di- the cause of their bony fingers.” The questions Spellings wants answered reveals, any methodology used to pre- rectory.html], “Social Deviance” is Question 38 holds that the in the report include how accessible is dict future demand leads to the same ostensibly to cover “Social processes following are true: that “U.S. elites higher education, why the cost is rising conclusion — unless steps are taken to in the creation and maintenance of chose the nativist route [mean- so rapidly, and how well are institutions address the problem, Maryland will end deviant populations: classification, ing the race-based “exclusionary preparing students for the workforce. up excluding a large number of students objectification of social meanings, nativist attitude” which, according “It’s time to examine how we can or will be unable to serve these students functions of subcultures and social to Question 37, the Ku Klux Klan maximize our investment in higher edu- in the way they need to be served.” outcomes of the deviance-ascription “helped to make … ‘respectable’” cation, including our federal dollars,” Also on the committee is Richard process. Includes core sociological in the U.S.]; it was less threatening Spellings said. “We all have a responsi- Vedder, an economics professor at Ohio concepts, methods, theories.” to them than the left-leaning route” bility to make sure our higher education University, who was written about the But a reading of the Terry’s and “The alternatives presented by system continues to spur innovation high costs of higher education in his book exams show that to her, “social those who opposed capitalism were and economic growth and gives more Going Broke By Degree, where he outlines deviance” is American government, real. The belief that the U.S. could Americans the chance to succeed in the some of the reasons why he thinks higher American industry, American ideals, move toward a European-style new knowledge economy.” education costs have soared. Vedder was America’s founding, and free-mar- socialist government was not far- Unlike K-12 education, Spellings also the keynote speaker at the Pope ket capitalism, and therefore the fetched.” said, few studies exist about the quality Center Conference in October. “deviant population” is anyone who Much more information of higher education. She also said many “…[S]o I am pondering with re- supports them. Without exaggera- on these courses can be found at people do not pay attention to how tax- newed intensity issues relating to our tion, Dr. Terry is teaching that social Course of the Month online, www. payer money is being spent at colleges system of colleges and universities,” deviants are normal, everyday Ameri- PopeCenter.org/course_month. CJ and universities. Vedder said at the recent Pope Center cans. “And as a result, we’re missing Conference about his appointment to the One thing all “deviants” have valuable information on how the system commission. CJ in common, according to Dr. Terry works today and what can be improved,” in Exam Four — be they academics Spellings said. “For instance, at the U.S. Shannon Blosser (sblosser@pope- (question 15), military personnel Jon Sanders is research editor for Department of Education, we can tell center.org) is a staff writer at the John W. (18), members of Congress (23) or the John Locke Foundation. you almost anything you want to know Pope Center for Higher Education Policy about first-time, full-time, degree-seek- in Chapel Hill. CAROLINA December 2005 JOURNAL Higher Education 15 Case invites abuse by administrators Recent Court Decision Undermines Rights of Student Journalists

By GEORGE C. LEEF reasonably know control. Then, as part of a journalism class. The Court RALEIGH that their actions to make matters reasoned that because that high school hroughout their history, college would violate the much worse, the paper was entirely subsidized by the newspapers have mostly enjoyed rights of others. court decided school, officials had the right to de- the same rights under the First Carter’s conduct the Supreme termine its content lest people think TAmendment as have other newspapers. was deemed so Court’s rul- that viewpoints expressed in the paper A recent decision by a federal appel- brazen that she ing about high represented the viewpoints of the ad- late court, however, jeopardizes their w a s d e n i e d school newspa- ministration. freedom. immunity. On pers should also Whether or not that’s a sound rea- Here are the facts: In 2000, Marga- the other issue, apply to college son for allowing officials to control the ret Hosty was the editor of The Innovator, whether The In- papers. content of a high school paper, college the student newspaper of Governors novator and its Therefore, newspapers should be treated differ- State University (GSU), located just staff were pro- the result of the ently. First, the student fees that in part west of Chicago. Like many student tected against censorship by the univer- case was not only a victory for the offi- support college newspapers are not the newspapers, The Innovator was sup- sity, the court also agreed with Hosty. cious Dean Carter, but also a precedent same as institutional funding in high ported mainly by student fees. That fall, GSU appealed to the Seventh that can be used by other college and school. While students usually don’t Patricia Carter, the university’s Dean of Circuit Court of Appeals, but a three- university administrations to silence have a choice in paying activity fees and Student Affairs, told the company that judge panel upheld the district court’s unwanted criticism from student writers the funds are allocated by the university, printed the paper that in the future, decision. GSU then requested a rehear- and editors. The best that free speech that is different from direct university school officials would review each issue ing in front of all advocates can funding. The university is simply acting before it could be printed. She took this the judges on the hope for now as a conduit for a portion of the money action despite written GSU policy stat- court – an en banc is that the Su- the paper needs to operate. ing that the student staff of the paper hearing – and preme Court Second, no one would reasonably would “determine content and format hit the jackpot. will hear Hosty conclude that opinions expressed in a of their publications without censorship The Seventh Cir- v. Carter and re- collegiate newspaper necessarily reflect or advance approval.” cuit decided en verse the Sev- the views of the administration — par- The reason why the GSU adminis- banc that Carter enth Circuit’s ticularly since those opinions are often tration decided to trample upon both its should enjoy decision. critical of the administration. own policies and the freedom of the stu- qualified im- The Su- Decisions by appellate courts in dent journalists was simple — it didn’t munity because preme Court the past have treated collegiate papers like the criticism it often received in the it was unclear decision that as being entitled to First Amendment pages of The Innovator. But could the that she was do- provided the protection. This case throws those school legally engage in prior restraint ing something grounds for the protections into question and invites of the paper? The laws of the United wrong. Why? Be- about-face in university officials like Carter to flex States have been strongly against prior cause the court Hosty is Hazel- their muscles whenever they don’t like restraint, no matter who is displeased said that under wood v. Kuhlmei- what they read. with what’s being written. a 1988 Supreme er. That case was Student newspapers can play an im- Hosty sued Carter and the federal Court ruling in- about the degree portant role on campus and shouldn’t be district court that heard the case sided volving a high of control it was subject to administration censorship. CJ with her on the two big issues in the school news- permissible for case. It found that Carter did not have paper, it was a high school to George C. Leef is executive director of “qualified immunity,” which protects permissible for take concerning the Pope Center for Higher Education Policy. government officials from liability for school officials a student pa- Visit PopeCenter.org for more information civil damages where they could not to exercise such per published about its programs.

Since 1991, Carolina Journal has provided thousands of readers each month with in-depth reporting, informed analysis, and incisive commentary about the most pressing state and local issues in North Carolina. Now Carolina Journal has taken its trademark blend of news, analysis, and commentary to the airwaves with Carolina Journal Radio. A weekly, one-hour newsmagazine, Carolina Journal Radio is hosted by John Hood and Donna Martinez and features a diverse mix of guests and topics. The pro- gram is currently broadcast on 18 commercial stations – from the mountains to the coast. The Carolina Journal Radio Network includes these fine affiliates: Albemarle/Concord WSPC AM 1010 Saturdays 11:00 AM Asheville WZNN AM 1350 Saturdays 1:00 PM Boone/Lenoir/Hickory WXIT AM 1200 Sundays 12:00 PM Burlington WBAG AM 1150 Saturdays 9:00 AM Chapel Hill WCHL AM 1360 Saturdays 5:00 PM Elizabeth City WGAI AM 560 Saturdays 6:00 AM Fayetteville WFNC AM 640 Saturdays 1:00 PM Gastonia/Charlotte WZRH AM 960 Saturdays 1:00 PM Goldsboro WGBR AM 1150 Saturdays 12:00 PM Greensboro/Burlington WSML AM 1200 Saturdays 12:00 PM Hendersonville WHKP AM 1450 Sundays 5:00 PM Jacksonville WJNC AM 1240 Sundays 7:00 PM Lumberton WFNC FM 102.3 Saturdays 1:00 PM Newport/New Bern WTKF FM 107.3 Sundays 7:00 PM Salisbury WSTP AM 1490 Saturdays 11:00 AM Siler City WNCA AM 1570 Sundays 6:00 AM Southern Pines WEEB AM 990 Wednesdays 8:00 AM Whiteville WTXY AM 1540 Tuesdays 10:00 AM Wilmington WAAV AM 980 Saturdays 1:00 PM Winston-Salem/Triad WSJS AM 600 Saturdays 12:00 PM For more information, visit www.CarolinaJournal.com/CJRadio December 2005 CAROLINA 16 Local Government JOURNAL Town and County Municipalities Plan to Push Annexation in 2006

No to Asheville parking deck By DONNA MARTINEZ Associate Editor Asheville’s plans to build a RALEIGH five-story, downtown parking deck nnexation, the controversial have apparently been derailed. Op- government power that cost Fay- position from residents of an adjoin- etteville Mayor Marshall Pitts ing apartment building caused that Ahis job in November, will likely be a top site’s owners, officials of the Catholic legislative priority in 2006 for the North Church, to rethink their desire to Carolina League of Municipalities, the sell to the city. president of the group says. “We’re not going to dictate The power to forcibly annex citi- from Charlotte what happens in zens into a town or city’s jurisdiction Asheville if it goes against the is a municipal authority that should be best interests of the parish and our retained, said A. Everett Clark, mayor parishioners,” Richard A. Lucey, of Marion, in McDowell County. Clark lawyer for the Diocese of Charlotte, was elected to the group’s top post in said to the Asheville Citizen-Times. October and will lead the association The diocese’s decision came after of more than 530 cities and towns for a tenants of the Battery Park Apart- one-year term. ments, a 122-room former luxury “Sometimes — and all of these hotel that now provides subsidized cases are a little different — but some- rental housing for senior citizens, times you almost have to do some of protested. The parking deck would that [annexation] in order to move on,” have been only 15 feet from the Bat- Clark said in an interview before Pitts’ tery Park. defeat. The Fayetteville mayor was the The city’s next step is unclear. chief backer of the contentious involun- Merchants continue to push for the tary annexation of Cumberland County city to address a lack of downtown residents into Fayetteville. Many of the parking. affected residents were opposed. They Board of Directors on Aug. 11, 2005, a serious issue but was not prepared to “The city made a commitment eventually lost a two-year legal battle to expresses unequivocal support for the comment on the call by the John Locke to the merchants of the Grove Ar- block the action. On Sept. 30, the annexa- policy. The document states that munici- Foundation, publisher of Carolina Jour- cade,” Michael Forde, co-owner of tion took affect and the city gained about palities should use the authority “in a nal, for an amendment to the North Four Corners in the Grove Arcade 46,000 residents and 20,000 parcels. fair and reasonable manner.” However, Carolina constitution to ensure state said to the newspaper. “We need Clark said that he prefers to bring the contents also make clear the league’s law isn’t changed to allow governments parking now. As it is, people are people into a city or town voluntarily, intent is to block efforts to curb local to engage in expanded “takings” for limited to the two hours on a meter. but that it’s nearly impossible to get government power and, in the process, economic development. … On a daily basis I hear people unanimous support. The challenge give citizens the ability to rebuff annexa- Locke Foundation Legal and Regu- say they have to rush back to their for officials is to make annexation a tion efforts they do not support. latory Affairs Policy Analyst Daren Bakst car because the meter is about to “win-win situation” that’s good for the “The League will continue to oppose explained the rationale for an amend- expire.” city and those being annexed. “I think changes in the law, either statewide or ment in his Oct. 17 Spotlight paper, sometimes we try to do too much at one local, which would weaken the present Property Rights After Kelo. “Amendments time. I think it needs to be done in an annexation procedures or restrict annex- to any constitution should be added very orderly fashion,” Clark said. Wilmington sewage leaks ation authority. The League will oppose rarely and under extreme caution,” Bakst In Fayetteville, 27 square miles new incorporations that are primarily for wrote. “However, it is hard to imagine a were gobbled up by the city in what Wilmington officials are plan- the purpose of preventing annexation time when a constitutional amendment locals dubbed the “big bang.” The Fay- ning to hire an engineering company by an existing municipality,” the report is more appropriate than now. The new etteville Observer reported that newly to review the city’s wastewater states. (emphasis in original document). amendment would not be creating a new annexed residents will owe 21 months collection system. The review was “We think that it has been good,” Clark right or doing anything even remotely work of city taxes in one year, while prompted by three significant sew- said of current law. “If we don’t have the controversial. In fact, all it would be some could wait as long as 16 years to age spills since the beginning of authority to do that…I think we would doing is to reaffirm the meaning of a receive full city services. July. become somewhat stagnant and not be fundamental right that was so important North Carolina is one of only seven “Pretty clearly, we’ve got a able to grow.” to our founders that they included it in states that permit forced annexation. All system with a lot of problems, and Eminent domain, the power of the Bill of Rights.” that’s required is for the municipality to it appears they’re structural,” Larry government to forcibly take a person’s Though Clark declined to com- follow a relatively simple administrative Cahoon, a professor of biology and private property and use it for a public ment, league Executive Director Ellis process: notify the public, prepare and marine biology at the University of purpose after providing just compensa- Hankins hasn’t been shy on the subject adopt a report, and hold public meet- North Carolina Wilmington, said to tion, is also likely to be a key discussion of Kelo. Writing in the July issue of South- ings. The ease with which it occurs has The Wilmington Star. area next year, Clark said. This summer’s ern City and on the league’s web site, he spurred the creation of citizen activist Two of the three leaks oc- Supreme Court decision in Kelo vs. City argued that a legislative response to the groups around the state, composed of curred when aging pipes corroded of New London has put eminent domain Supreme Court decision is unnecessary. residents angry over having no input through. The third spill — a leak power on the radar screen for property Yet that same month, while participating into a decision that directly affects their that came about when a coupling rights supporters across the political in a roundtable discussion in Raleigh on pocketbook. holding two pipes together failed spectrum. The ruling gave local govern- the NBC 17 public-affairs program “At Visitors to www.stopncannex- — released three million gallons and ments the right to take private property Issue,” he acknowledged it would be ation.com are greeted with a masthead was believed to be the worst in the from one person and give it to another a “reasonable concern” that legislators touting the effort to “end involuntary city’s history. private person or entity for economic might change North Carolina law to annexation abuse in North Carolina.” City officials acknowledge redevelopment. provide local governments the expanded The home page also contains “League that the city has a significant amount Clark said neither the league’s power over property owners. Watch News,” a reference to the league’s of piping that is nearing the end of its board nor its members have adopted an Clark was willing to comment on endorsement of the state’s liberal an- design life. Cahoon recommended official position on Kelo, but the group his personal view of property rights and nexation law. that the city upgrade the system is “pretty satisfied” with current North how it affects his role in leading Marion. The league’s 2006 Municipal Leg- and not simply conduct patchwork Carolina law, which, “has worked well “My take on it is that we shouldn’t take islative Goals and Policies document, repairs. CJ for us through the years.” He empha- property from one individual and give which was approved by the league’s sized that he considers property rights it to another private entity,” he said. CJ CAROLINA December 2005 JOURNAL Local Government 17

A tale of two cities Commentary Kinston’s and Hickory’s Airline Issues That Can Win Stories Reveal Industry Trend s you read this, the munici- pay 15 percent of the state’s por- pal elections of ‘05 in North tion of Medicaid. By MICHAEL LOWREY high oil prices, and Delta’s Chapter 11 Carolina will have been in- Many city council members Associate Editor bankruptcy filling. Aterpreted and spun in any number and county commissioners will CHARLOTTE Hickory officials contend they did of ways. step up to the plate on this issue, arlier this year, a regional airline all they could to market the service. There was no statewide man- but will they have the collective affiliated with Delta Airlines “We did our part. We made travel- date on educational bonds; some courage to take a stand? Were I to began service to Kinston and ers aware of the service,” Hickory Mayor passed, but the largest in state history, be in that list of souls aspiring to EHickory. For the two communities, the Rudy Wright said to The Charlotte Ob- the Charlotte/Mecklenburg bond, join the ranks of the House, these new flights represented a payoff to long server. “It was up to Delta and the fliers failed. While Durham passed eight would be the issues that I believe years of effort to hard work trying to lure to get together and get the tickets sold. bonds, Orange County would win in any dis- an airline back to town. In a nutshell, that’s where the frustration voted down a new trict: Delta’s Hickory gambit failed, is, because that didn’t happen.” school tax. 1) Reform Med- while service to Kinston is doing well. Wright noted that 80 percent Although the icaid by capping what The differ- of Delta frequent school bond mes- counties pay. The state ence is not some flyers in Hickory sage seemed mixed, should assume the re- sort of govern- were aware of the by and large, school sponsibility and pick up ment subsidy or flights and those referendums passed savings in waste, fraud advertising that that used the ser- without debate. and abuse. Kinston provided vice were happy Education, it seems, 2) End the “tem- or Hickory didn’t with it. is still good politics. porary” tax hikes. Did provide but rather Hickory’s In Fayetteville, anyone really believe in markets. Kin- problem lay 38 the mayoral race, for they were temporary? ston, effectively miles away to the better or worse, was 3) Buck the trend represented a southeast as the decided by a con- of providing corporate new, not previ- crow flies or about troversial “forced annexation” of welfare through lucrative incen- ously served, market for Delta. Hickory an hour by car. It’s Charlotte/Douglas 42,000 residents. Citizens were not tives. Corporate handouts fall travelers already could fly Delta from International Airport, and the vastly pleased and showed that displea- back on the tax-paying consumer. Charlotte and enough weren’t willing to larger number of travelers it attracts. sure at the ballot box by electing a 4) Demand ethical behavior pay a premium for less frequent service More passengers means both more new mayor who made annexation in government and end the use of closer to home. flights and larger aircraft used. In the a key issue. “slush funds”. Like many smaller cities, Kinston end, not enough people — Delta was Even in tiny Columbus, NC, 5) Stop borrowing money and Hickory have a long history of airline only filling 40 percents of its seats out potential annexees became so ani- from highway trust funds to pay service — until relatively recently that is. of Hickory most of the time it offered mated that they helped unseat two for other projects. Revenue gener- The airline industry, like all industries, the flight — were willing to pay enough incumbents. Many city councils ated for roads should go there. changes over time. money to sustain the service given the would do well to pay attention to 6) Allow driver’s licenses By the late 1990s, the long-standing lower-priced and more-frequent service this developing issue. Citizens do only to folks with legal residency instrument of choice for serving smaller only an hour away. not take kindly to being ignored status. If you have a visa, your cities — small turboprops, often seating With Hickory’s air service disap- or excluded from the annexation driver’s license expires when your 19 passengers — became increasingly peared again, Kinston’s flights are doing process. visa does. unprofitable and were largely with- well despite Kinston being a smaller And in truth, many cities 7) Enact a Taxpayer Bill of drawn from use over time. city than Hickory. Kinston’s airport also across the state take a more inclu- Rights. One has been offered for “Unless entirely new airframe and doubles as the Global TransPark. The sive route in expanding their city years, but never enacted. This powerplant technology is developed, most notable improvement — lengthen- limits. But the coming legislative would only allow growth in state the traffic floor for supporting air ser- ing the runway from 7,500 feet to 11,500 races of ‘06 will probably have a spending to equal population vice… will continue to move toward feet — made in the transformation into number of candidates running to growth and inflation. one which can sustain at least three 70- the GTP was also not critical in attract- stop the policy of “forced annexa- 8) Close the loophole that seaters a day,” stated airline consultant ing Delta. Kinston’s previous runway tion” in North Carolina. Even the allows cities to take property using Mike Boyd recently on his company’s configuration was more than adequate North Carolina League of Munici- eminent domain for private de- website. to support flight. Indeed, Hickory’s main palities has vowed to set annexa- velopment. All such cases should Many communities just can’t runway is only 6,400 feet long. tion as a top legislative priority in only be for “true” public purposes, generate that sort of traffic, and have Rather, Kinston’s appeal to Delta 2006. not for concocted economic devel- lost their scheduled airline service as a is regional. A significant number of As we head into ‘06, the opment reasons. result. In North Carolina, five of the 14 people live in the area east of Interstate House races will heat up. Local By sticking to these issues be- communities with scheduled air service 95 and north of Wilmington and south officials considering runs for the yond the campaign we can make a in 1998 were without it five years later. of Norfolk. The region has no dominant House hopefully will take the issue difference. In the end, we all want Most of the cities that lost service metropolitan area though, making it of local control seriously. There North Carolina to stay strong. By have since actively sought replacements more difficult for airlines to market to. was great hope in ‘02 and then restoring local control and de- and been willing to provide generous Indeed, US Airways used to serve Kin- again in ‘04 that the freshman class manding ethical, responsible state incentives to sweeten the pot. Some ston — and three other cities less than of legislators, many from city and government, we’ll be a far more have had success; late last year, Delta 35 miles away. Eventually, Kinston lost county posts, would reverse the attractive state for businesses na- Airlines announced that it would start out, though US Airways still retains their unfunded mandates that have tionwide. CJ service to Hickory and Kinston from its flights to nearby New Bern, Greenville, choked cities and counties state- Atlanta hub in the spring. and Jacksonville from Charlotte. wide. Unfortunately for Hickory, the Delta, however, had not previ- And surely, they reasoned, party didn’t last long. Delta Airlines ously served any of the four eastern we would see an end to the local Chad Adams is vice chairman of ended service to Hickory on Nov. 30 North Carolina cities. It chose to es- pay for Medicaid. But as of July the Lee County Board of Commission- only seven months after it began and sentially serve the region through 1 of this year, North Carolina ers and director of the Center for Local despite extensive advertising and other Kinston, one of the most centrally lo- became the only state in the nation Innovation. Visit www.LocalInnova- incentives by the city to promote the cated of the four airports and the only that continues to force counties to tion.com. flights. The carrier cited low load factors, one without current service. CJ December 2005 CAROLINA 18 Local Government JOURNAL

Local Innovation Bulletin Board From Cherokee to Currituck Regs Hike Housing Costs Greensboro Puts an End to Inspection of Private Hydrants ouse prices in many com- deductibility of conservation ease- munities, especially in urban ments. The problem is that some By MICHAEL LOWREY limited without driv- areas on the East and West conservation easements amount to Associate Editor ing some distance. Hcoasts, have soared in recent decades. abusive tax shelters, with assigned RALEIGH “Holly Springs A paper written by Edward Glaeser, valuations that are excessive. he Greensboro Fire has been on the bubble, Joseph Gyourko, and Raven Saks for Dominic Parker, of the Property Department has and Holly Springs is the National Bureau of Economic and Environment Research Center, stopped inspecting still on the bubble,” Research says increased regulatory suggests some public funding mecha- Tabout 2,000 fire hydrants Lisa Perla said to The barriers are the cause. nisms that encourage full account- during the past year be- News & Observer of The authors analyzed 316 metro- ability and transparency while also cause of liability problems Raleigh. Perla owns the politan areas of the continental United providing trusts with flexibility. with private hydrants, Java Divine Coffee Bar States, where the average home price One key is to increase the the News & Record of in Holly Springs. Her increased 1.7 percent faster than gen- oversight of the easement appraisal Greensboro reports. The daytime clientele is eral inflation. process. The nonprofit Land Trust hydrants that haven’t weighted toward stay- Before 1970, structure costs Alliance has proposed an accredita- been inspected amount to at-home moms. represented about 90 percent of the tion system that would certify land about one out of every six “We still are not value of a home in most areas, but trusts that want to receive donated of those in the city. where we want to be,” since 1980, the cost of land and obtain- conservation easements. Certified Ordinarily, the fire Holly Springs Mayor ing regulatory approval has shrunk land trusts would use only accredited department checks hydrants twice a Dick Sears said to the newspaper. “We’re the importance of building costs as a appraisers. year. Two years ago, however, the city working pretty hard to fix that.” factor in home prices. Parker also suggests replacing water and fire departments merged their In the Northeast, the nonstruc- federal tax breaks with a competitive databases. In the process, the fire depart- Beach assessment approved ture component of house value ex- grant program that requires trusts to ment found that it had been inspecting ceeded 40 percent by 1990. By 2000, the raise matching funds from private private fire hydrants. The N.C. Court of Appeals has pattern had spread to 27 metropolitan sources and local governments. Ide- City fire hydrants are connected to upheld a controversial beach erosion areas, including San Francisco, where ally, 75 percent or more of the total the city’s water mains. Private hydrants assessment on nearby property own- structure costs represent no more than cost of the conservation easement get their water from non-city mains. ers in New Hanover County to pay to 30 percent of home value. would be paid by the recipient or- While the fire department can use the pri- stabilize an inlet, The evidence points toward ganization. vate hydrants to fight fires, they would Figure Eight Island is the barrier a man-made scarcity of housing be responsible for any damage done to island situated north of Wrightsville because the supply has been con- Living wage ineffective private hydrants during inspections. Beach. While Wrightsville Beach is an strained by government regulation as With a hydrant costing $1,500 to $3,000, incorporated municipality, Figure Eight opposed to fundamental geographic “Living wage” laws requiring that’s a risk the city isn’t willing to take. Island is private property and adminis- limitations, especially in the last two employers to pay more than the The city will resume inspecting hydrants tered by a homeowners’ association. or three decades. Zoning has become minimum wage do little to improve if the owners sign a release relieving the In recent years, Mason Inlet, more restrictive over time, while local the standard of living for low-income city of liability for any damage caused which is between the islands has been public officials and judges become in- families, economists Yelowitz and during inspections. migrating to the south, eroding portions creasingly sympathetic to community Toikka say. “We’re asking owners of the pri- of Wrightsville Beach, adding land to and environmental concerns with new They used government data to vate hydrants, and we’re trying to find Figure Eight Island, and reducing the housing developments. determine the effect of the ordinances these individuals, to speak with them navigability of Mason Inlet. The authors argue that a main on earnings, income, and government about it, let them know what we’re try- In the late 1990s, the Figure Eight cause of this burst in legal barriers is assistance levels. Unlike many stud- ing to do and offer our services,” Capt. Island Homeowners’ Association joined that the fraction of Americans own- ies focusing on poverty levels, the Todd Tuttle said to the newspaper. with seven homeowner associations ing their own homes has risen in the authors examined total income — cash The city has obtained releases from Wrightsville Beach to form the past 40 years, giving homeowners income and benefits — to determine from most apartment complexes and Mason Inlet Preservation Group. MIPG more political clout. Additionally, the full effect on standard of living. is now trying to get permission from developed an ambitious, multimillion- rising education levels and other A family with two children can businesses. The city will again inspect dollar plan to stabilize the inlet. It was so political battles have made commu- qualify for more than $4,000 in as- private hydrants for which it has releases ambitious that MIPG wanted the county nity members more adept at using sistance through the Earned Income next year. to be the lead sponsor of the relocation, courts and the press to battle against Tax Credit (and even more in states using county hotel-motel tax money. developments. with supplemental state-run EITC Balancing a small economy The county would be repaid by a special programs). county assessment on homeowners. As earnings increase, recipients North Carolina’s major cities Raymond Clifton Parker, a land- Conservation easements see benefits from these programs continue to be engines of job creation, owner on the other end of Figure Eight decrease dramatically; the marginal drawing new companies while existing Island, sued to have the assessment Conservation easements are tax rate in the phase-out range for the firms add new jobs. Many Charlotte, declared illegal as a tax for a private, an increasingly popular way to pre- EITC can reach as high as 21percent, Raleigh, or Cary workers, though, don’t not public, interest. Parker argued that serve open space. The easement is a and the rate for food stamps is gener- live where they work, preferring instead the relocation mainly benefited specific legally binding agreement between a ally 30 percent. to reside in smaller, outlying communi- landowners and not the public at large. landowner and a nonprofit land trust Failing to include the loss of ties. The bedroom communities often The Court of Appeals noted, how- or government agency that prohibits these benefits when evaluating the have radically different daytime and ever, that by its nature, the inlet reloca- most development. benefit of living-wage ordinances nighttime populations, and similarly tion provided sufficient benefits to the Landowners are compensated can dramatically inflate the perceived skewed economies. public interests. The court identified the for the easement through cash pay- effectiveness. Specifically, the authors Holly Springs is an extreme ex- increased navigability of the inlet, addi- ments, often including public money, found that enactment of a living-wage ample of the trend. The Census Bureau tional sand on public beaches, increased or tax breaks. ordinance decreased benefits assis- estimates that the Wake County town’s flushing of tidal creeks, and greater Congress, however, is consider- tance by $34 per month, while increas- population dips by 34 percent during the ability to withstand hurricanes as public ing reducing or eliminating the tax ing earnings by $16 per month. CJ day. Though the town has added a num- benefits sufficient to qualify the project ber of businesses in recent years, dining, even if a majority of the benefits did to go shopping, and entertainment remain very specific property owners. CJ CAROLINA December 2005 JOURNAL Local Government 19 Groups Want Taxpayers to Fund Farmland Preservation By SAM A HIEB Preservation Strategy. The report cited Contributing Editor federal statistics that showed 43 North GREENSBORO Carolina counties with a decrease in the o spend or not to spend? That’s the number of farms, 41 with a decrease in question surrounding the issue the amount of farmland and decrease in of North Carolina’s supposedly total cropland in 55 counties. Tdiminishing farmland. As with many “Future opportunities for advance- land conservation programs, spending ment in all the state’s efforts may be better appears to be the answer. served with a reassessment of funding Conservation groups will lobby priorities and the allocation of resources the state next year for funding to pre- to the protection and promotion of the serve farmland. The nonprofit Land for family farm,” the report reads. “Strategy Tomorrow, which describes itself as a plans and policy changes alone cannot “growing partnership of North Carolina sustain the family farm. Appropriating organizations and citizens committed to monies simply to acquire development advocating for state funding to protect rights or conservation easements on ex- places that matter to our citizens and isting farms will not provide the support communities,” recommends that the that families need to save the lands this state increase spending for conservation state needs in the future…” projects by $200 million next year, $22 The best way to implement this million of which would go toward the strategy would be through land conser- preservation of farmland. The group Land for Tomorrow wants $200 million spent next year on land conservation, vation agencies, said Jim Cummings, the Land for Tomorrow would like to with $22 million going toward preservation of farmland. (Photo by Don Carrington) department’s environmental program see that $22 million guaranteed for five manager. years, for a total of $110 million. That’s lease, or sell the land for development. Farmers are offered “Of course, we would hope to still not enough, said Kate Dixon, direc- The right to develop a piece of land what is described as “fair market value,” contract with some of those land trusts tor of Land for Tomorrow. Any money for residential, commercial, or indus- which basically splits the difference and the soils and water conservation the state puts up would hopefully be trial purposes is also a right within that between a parcel’s value as a farm and districts around the state to work with matched by the federal government. bundle. The purchase of development its value as a commercial or residential farmers to purchase development rights “The challenge has been not having rights involves the sale of that right development. and conservation easements,” Cum- sufficient funding,” Dixon said. “The while leaving all the remaining rights So where does the funding come mings said. “In my conversations with federal government has had funding, as before. from to leverage the federal money? the commissioner, he’s had no interest but that requires a match and then the Once an agreement is made, a You guessed it: taxpayers. Different in building another bureaucracy but challenge is where does that match permanent deed restriction is placed areas around the country have come up to work through existing agencies and come from?” on the property, which restricts the type with different ways to fund develop- organizations.” The major component behind of activities that may take place on the ment rights programs. Virginia Beach, While this all may fine and good, farmland preservation is the purchase land in perpetuity. A fact sheet issued dedicated a cellular phone tax, a 1.5 the question is whether development of development rights. Under a develop- by the American Farmland Trust states percent increase in local property taxes, rights programs are politically feasible. ment rights program, which is voluntary, that “most agricultural conservation and some county appropriations for Maybe not, according to a report on land trusts or other agencies linked to easements are permanent. Most do not development rights. Several counties in development rigghts programs in South local government, make an offer to a restrict farming practices, although some Maryland use local real-estate transfer Carolina by Clemson University profes- landowner to buy the development grantees ask landowners to implement taxes supplemented by general fund sor Vern House. rights on the parcel. Ownership of land soil and water conservation plans.” appropriations. “Research findings indicate that has a bundle of rights associated with Naturally, the current agricultural Ironically, a major argument public willingness to pay often falls that piece of land. These rights include value associated with land is substan- among advocates of development rights short of the value of development the right to possess, use, modify develop, tially lower than the value that land has programs is they can help give farmers rights,” House writes. “These findings a tax break, especially on estate taxes by simulate economic behavior, whereas keeping the value of the land lower. the PDR program will be determined by Though Dixon thinks preservation politics. The debate is likely to focus on of farmland is a nonpartisan issue, she the amount of funding to buy develop- ment rights, the criteria for targeting North Carolina’s Most-Watched Political Talk Show Appears on admits it will be tough to find funding Television Stations Across the State in a tight state budget. funds and whether a bidding process “We’ll see next year, but obviously, will be used.” BuT WhAT If You MISS IT? as you know, the state budget is pretty Wendell Cox, principal of Demo- Now NC SPIN – featuring Carolina Journal’s John hood, host Tom Campbell, and tight,” she said. “In terms of the interest graphia, an international public policy commentators from across the political spectrum – is now rebroadcast weekly on many in the purpose and the importance of firm in St. Louis, is skeptical of the need fine radio stations across North Carolina: this for the future of this state, there’s to provide public funding to preserve Asheville WZNN AM 1350 Sundays 9:30 AM pretty broad interest in the legislature. farmland. The reason is simple: The Durham WDNC AM 620 Sundays 8:00 AM But as you know, there are a lot of needs United States is not running out of farmland. Gastonia/Charlotte WZRH AM 960 Saturdays 1:00 PM in the state. It really isn’t a partisan “This deal where we’re basically Goldsboro WGBR AM 1150 Sundays 4:00 PM thing. I think people really see this as saying that the cities are chewing up the Greenville WNCT AM 1070 Wednesdays 6:30 PM important for the environment and that farmland — not a chance,” Cox said. The Kings Mountain WKMT AM 1220 Saturdays 8:30 AM we have a lot of industries that are really amount of farmland in this country is Laurinburg WLLC AM 1300 Sundays 10:00 AM dependent on particular types of land and the quality of life that comes from huge compared to the amount of devel- Monroe/Charlotte WXNC AM 1060 Sundays 7:30 AM clean air and clean water and places to opment. There simply is no threat.” Outer Banks WYND FM 97.1 Sundays 8:00 AM go. Our tourism industry is really based Cox is also concerned about the Raleigh WDNZ AM 570 Sundays 7:00 AM 9:00 AM on the beauty of our state.” possible long-term effects of such land Rocky Mount WEED AM 1390 Mondays 9:30 AM N.C. Department of Agriculture conservation programs. “As we continue to take land off Salisbury WSTP AM 1490 Saturdays 11:00 AM officials not only support development the rolls for development, we are going Smithfield WMPM AM 1270 Sundays 5:00 PM rights programs, but think more action to be driving the price of land up, which Wilmington WAAV AM 980 Saturdays 12:30 PM is needed to help save farmland. In March, the department released its Ag- will make home ownership harder,” he More stations are joining the network soon. Visit www.NCSPIN.com for updates. ricultural Development and Farmland said. CJ December 2005 CAROLINA 20 The Learning Curve JOURNAL

From the Liberty Library Terrorism and the Constitution

• No issue was of greater Jurists Critique Court’s War on Terror Decisions concern to the delegates at the Constitutional Convention than • Peter Berkowitz, ed.; Terrorism, these cases. To a lesser extent, this lack that of slavery, historian Lawrence the Laws of War, and the Constitution: of guidance also characterizes the Su- Goldstone writes in Dark Bargain: Debating the Enemy Combatant Cases; preme Court’s Hamdi ruling concerning Slavery, Profits and the Struggle for the Hoover Institution Press, 2005; 196 citizen detainees, when “the Court” (as Constitution. It resounded through pp.; $15 Yoo says) “really just punted on the debates on the definition of treason, procedures to the lower courts and the the disposition of the rich lands west By MAXIMILIAN LONGLEY executive branch.” of the Alleghenies and the admis- Contributing Editor This vagueness leaves room for sion of new states, representation RALEIGH federal courts to try to run the country’s and taxation, the need for a national n 2004, the U.S. Supreme Court de- national-security policy, a task that census, and the very makeup of the cided three cases involving prison- Wedgwood and Yoo think is more ap- legislative and executive branches ers who had been locked up, under propriately left to the president alone. of the new government. Goldstone Iauthority of the president, as alleged Wedgwood is worried about letting cap- chronicles the forging of the Con- “enemy combatants” in the War on tured terrorist operatives litigate their stitution through the prism of the Terrorism. The Padilla case, involving a cases: “An opponent on the battlefield crucial compromises made by men U.S. citizen arrested in the United States, or in the shadows of a guerrilla war may consumed with the needs of the was thrown out on a technicality. In the try to take advantage of the law-mind- slave economy. As the daily debates Hamdi case, the court said an American edness of a democratic state in order to and backroom conferences in inns citizen captured in the Afghanistan war gain a fatal advantage.” and taverns stretched through July zone could be detained on presidential Benjamin Wittes is the only non- and August of that hot summer orders, but with the right to a hearing if lawyer among the contributors. An — and as the philosophical lead- he claimed he wasn’t a combatant. The opinion editor at the Washington Post, ership of James Madison waned Rasul decision held that foreign terror- Wittes blames key players in the enemy — Goldstone clearly reveals how ist suspects at the Guantanamo base in combatant cases for failing to properly Cuba had the right to challenge their tenuous the document was, and Wedgwood and Yoo ... confront the complex issues posed by how an agreement between unlikely imprisonment in court. America’s new war. Congress is blamed Terrorism, the Laws of War, and the collaborators got the delegates past in their respective analy- for failing to adopt legislation dealing Constitution prints critiques by promi- their most difficult point. Learn with prisoners captured during the War nent jurists, and one layman, about the more at www.walkerbooks.com. ses... chide the court for on Terrorism. The Bush administration court’s decisions, particularly Hamdi incurs Wittes’ censure for its extreme and Rasul. The contributions represent a second-guessing the claim of an unlimited detention power diversity of viewpoints, from supporters • If you think: Al Qaeda terror- where terrorism suspects are concerned. ists are likely to cross the Mexican of the court’s decisions, to opponents, executive on national- The civil-liberties groups are blamed for border, suitcase nuclear weapons to a couple of contributors who ques- security issues. Both an unrealistic insistence on applying are a real threat, there was no link tion the very framework in which most peacetime legal standards, instead of between al Qaeda and Saddam people discuss the issue. commentators say that balancing security with freedom. Hussein (and no WMD in Iraq), Seth Waxman, former solicitor Mark Tushnet, a law professor and that Halliburton made a for- general under the Clinton administra- the Rasul decision is who teaches at Georgetown University, tune off Iraq...then you’ve accepted tion, opens up the anthology with a implicitly criticizes the presupposi- some of the most prevalent myths more or less supportive account of the ambigous, allowing fed- about the War on Terror. Or so says Supreme Court’s terrorism decisions. eral courts to hear cases tions of the other commenters (besides investigative reporter and terrorism Waxman says that the high tribunal, by Wittes). Tushnet complains that jurists expert Richard Miniter in his new ruling as it did in the recent decisions, involving Guantanamo look to the Supreme Court to interpret book Disinformation: 22 Media Myths showed itself to be “a muscular, self- the Constitution in such a way as to cre- That Undermine the War on Terror, in confident Court . . . operating within its prisoners but giving ate the ideal balance between national security and individual rights in the which he punctures 22 myths about core competency — defining the basic lower courts little guid- terrorism, al Qaeda, and the war rights and obligations of parties under terrorism cases. in Iraq. See www. regnery.com for the Constitution.” This has been a break ance on how to decide Tushnet calls this the fallacy of more details. from cases such as the Korematsu decision the “perfect Constitution.” In actuality, of 1944, in which the court said Congress these cases. Tushnet says, the Constitution was writ- could empower the president to banish ten to deal with the possibility of wars • They’re slashing your tires, citizens of Japanese descent from their against nation-states, but does not speak burning your lawns, heaving pies at West Coast homes. Hopkins University specializes in in- to the new reality of wars involving Republican pundits, hurling racist Patricia M. Wald, a former federal ternational law and has held various nongovernmental terrorist groups. To epithets at minority conservatives, judge appointed to the bench by Jimmy consultant roles in the Bush adminis- adapt to this new reality, the Constitution nursing nutty conspiracy theories, Carter and now an advisor to the Bush tration. John Yoo, a law professor at should be changed by amendment, not and pining publicly for the murder administration on weapons of mass Berkeley’s Boalt Hall, once served in by judicial interpretation. In this way, of President Bush. In Unhinged: destruction, echoes some of Waxman’s the Bush Justice Department. Tushnet says, the people themselves, Liberals Gone Wild, Michelle Mal- points. Wald portrays the court’s deci- Wedgwood and Yoo, in their re- exercising their right to self-government, kin chronicles the bizarre world of sions as an understandable reaction to spective analyses, applaud the court for will participate in the debate over how leftists gone mad in their natural the executive’s claim of being immune giving the president some leeway to hold to fight to War on Terrorism. habitats: the mainstream media, from judicial review for its detention suspected terrorist combatants without Two of the contributors, tallying academia, Hollywood, and Wash- and treatment of terrorist suspects. trial. As Yoo says, “the Justices did not up the votes on the court, calculate that ington. Unhinged unmasks liberals The lack of congressional guidance on turn the clock back to September 10, a majority of five justices (Scalia plus who have completely abandoned the topic, and the “despicable abuses” 2001.” At the same time, Wedgwood and the four liberal justices) is prepared to rationality and reality. They’ve by U.S. forces at Abu Ghraib, inspired Yoo chide the court for second-guess- rule in favor of Jose Padilla, requiring taken chainsaws and bayonets to the court to step in and impose some ing the executive on national-security that he be either charged with a crime campaign signs, run down political accountability, Wald says. issues. Both commentators say that the or released. Padilla is the U.S. citizen opponents with their cars, and set Two other contributors want the Rasul decision is ambiguous, allowing who was arrested at a Chicago airport fire to political opponents in effigy. court to show more deference to the federal courts to hear cases involving and who has been held without trial Also from Regnery. CJ executive on national security issues. Guantanamo prisoners but giving lower ever since. The court is hearing his case Professor Ruth Wedgwood of Johns courts little guidance on how to decide this term. CJ CAROLINA December 2005 JOURNAL The Learning Curve 21 Thomas H. Hall: ‘Internal Improvements’ Result in Tyranny “My present purpose . . . is to present in retirement. In his opposition of federal-spon- disregarding this doctrine, in effect, cre- a figure seldom heard of nowadays but one Like his friends, John Randolph of sored transportation projects, Hall ated a new form of government: “Instead deserving a lasting place in the history of Virginia and Nathaniel Macon of North avoided saying “internal improve- of a Government of three centers, acting North Carolina.” Carolina, Hall vigorously opposed fed- ments,” for the term, he said, was “most as mutual and salutary checks on each eral involvement in internal improve- comprehensive,” including not only other, you unite the Executive, the Leg- n 1911, journalist Louis D. Wilson ments — a term used for government- highways but also vehicles and their islative, and Judicial into one, which is so described supported public works. Concerning owners. “If Congress has the right to the very definition of despotism.” Thomas H. this issue, Hall was immovable; he once make, alter, end, or abolish our highways Hall believed federal internal im- IHall, a congress- proclaimed, “I never shall abandon my within the States . . . does not even a blind provement legislation led to tyranny: man from Edge- principles on this subject.” man see that the consequence must soon Government taxed everyone for the combe County. His principled stance should not be an entire obliteration of all the power benefit of a few, powerful officials prede- Almost 100 years be mistaken for senseless stubbornness, of the State authorities, and in that case termined the logistics of transportation later, Wilson’s however. Hall believed, after much con- our system of government is destroyed networks for personal gain, and such statement still templation, that federal intervention in by consolidation?” legislation invited logrolling sessions. rings loudly. building transportation networks was He also feared that, via internal Exasperated by what he considered Although unconstitutional and an infringement improvements, legislators would re- a “system of iniquity” and the federal born in Virgin- Dr. Troy of the doctrines of dual sovereignty and define “general welfare”; if Congress government continually superseding its ia, Thomas H. Kickler separation of power. could tax for the betterment of every- “proper sphere of authority,” Hall urged Hall (1773-1853) The U.S. Constitution, claimed one, everywhere, Hall reasoned, then Tar Heels to demand public officials to called North Carolina home. With a Hall, enumerated exclusive powers to legislators had power to select outcomes maintain records of “credit and debit, medical practice in Tarboro, Hall was the federal and state governments, and and then raise whatever amount was showing precisely what they pay for the first elected to Congress as a Jefferso- both had “appropriate spheres of ac- needed to accomplish them. To Hall, article and what it yields.” That’s good nian-Republican (1817-1825). In 1824, tions, separate and distinct from each corruption and abuse of power resulted advice for us today. he lost his congressional seat. As a other.” He was troubled particularly from government having the means to No one has devoted significant Jacksonian-Democrat, Hall regained when Congress imposed taxes on all accomplish any goal. attention to Hall. For those interested it and served in Congress from 1827- states for transportation projects exclu- The conflation of the executive, in learning more about this North 1835. In Washington, D.C., Hall was on sively in one state. Opposing such legis- legislative, and judicial branches also Carolinian and his ideas, the Reg- several committees, including chairing lation in one 1830 congressional speech, distressed Hall. Debate over the separa- isters of Debates in Congress is the the Committee on Expenditures in the Hall read from the N.C. Declaration of tion of powers doctrine was needless, best place to start. CJ Department of the Treasury. Rights (1776): “That the people of this for it was, he said, the “plainest part of After his congressional career, Hall State ought to have the sole and exclusive the Constitution.” served in the N.C. Senate, practiced right of regulating internal government During an 1834 congressional Troy Kickler is director of the North medicine, and farmed. In 1853, he died and police thereof.” speech, Hall warned his colleagues that Carolina History Project. mmm$@e^dBeYa[$eh] 9"1,Ê" Ê" Ê/ Ê7 Ê",ÊÊ ",/Ê
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Short Takes on Culture ‘The Politics of Liberty’ Time to Revisit Narnia Ward Shows Ideas Really Matter • Lee Ward: The Politics of Liberty in • The Chronicles of Narnia ship with Ward, working to save England and Revolutionary America; By C. S. Lewis patients with mysterious illnesses, Cambridge University Press; 2004; 459 HarperCollins Publishers and making life miserable for his pages; $90 team of young doctors, one of whom

ith the coming release is head over heels in love with him. By BECKY AKERS of Walden Media’s “The It’s a hokey premise, but Laurie pulls Guest Contributor Chronicles of Narnia: The it off. Working with implausible story WASHINGTON WLion, the Witch and the Wardrobe,” lines, unremarkable writing despite eading philosophers who try to rereading C. S. Lewis’s classic tale is an Emmy for one episode, and silly justify the thieving, deception, timely. How is it that 55 years after inside-the-body graphics, he makes and murder that are government the book’s release, Narnia still captures “House” compelling and fun, rather Ris a bit like hearing Jeffrey Dahmer dither the human imagination? than morose and predictable. If you over place settings and recipes. In each It’s no secret that Lewis’s series appreciate unique actors and haven’t case, one longs to interrupt and ask, “Are contains Christian themes, but it is not overdosed on “Doctor” TV, give you listening to yourself?” the point-by-point Christian allegory “House” a try. Nevertheless, explaining and, some confuse it for. Edmund’s treach- — DONNA MARTINEZ worse, legitimizing the state occupied ery, condemnation, and salvation via 16th- and 17th-century philosophers Aslan’s sacrifice are a kid-friendly interpretation of Christ’s atonement in England and Europe. Even as the for man’s sin. Go with ‘Galactica’ beast they dissected exiled or impris- But, forgiveness, sin, and death oned them and ravaged their countries with civil war, they worried about the are only the most serious themes wo- • “Battlestar Galactica” ven into Lewis’s story of the Pensevie intricacies of absolute monarchy. How The SciFi Channel exactly did God ordain it, and do men for this. Supposedly, when God gave children’s adventure into the ward- Fridays at 10 p.m. Adam dominion over the earth (Gen robe. The four children’s magical owe obligations beyond abject submis- sion to their king? Is a monarchy not 1: 28-29), Adam became a literal and journey into a land filled with talk- The remake of the old 1970s utter dictator. ing animals and cursed with eternal only absolute but unified, or does the science fiction melodrama “Battlestar sovereign share his power with “lesser Never mind that the context of winter surrounds Lewis’s Christian Galactica” is worthwhile. Gone are these verses is dominion over the natural message with a fairy-tale adventure magistrates”? If the latter, does the king’s the bad special effects, the campy authority move with him from palace world, not the political one. God is not that captivates children and adults characters, and disco look and feel. establishing Adam as a sort of primeval from the first page. Walden Media, in to Parliament, so that his partners in The new version is edgier. crime bask in the reflected glow? Is there Stalin; rather, Adam is humanity’s rep- association with Disney, intend to re- The Galactica is an aging battle- resentative, with God offering nature to main faithful to Lewis’s work. Doug- room for contractual relations between a ship scheduled to be decommissioned sovereign and his subjects? And is that mankind so that we may harness it for las Gresham, the movie’s coproducer and turned into a museum when an our advantage. and Lewis’s stepson, promised not to contract voided when the sovereign be- attack occurs. Commander Adama, comes tyrannical? Is it even possible for Ward next shows how Hobbes and strip Lewis’s spiritual messages. The Grotius fine-tuned Filmer’s points. For played by the brooding Edward James a sovereign to be tyrannical? After all, if film premieres in theaters Dec. 9. example, they debate endlessly whether Olmos, assembles the remaining sur- law proceeds from the sovereign and is to — JENNA ASHLEY subjects have any right to rebel, even vivors into a ragtag fleet. The chain of be obeyed rather than questioned, how ROBINSON under the worst of conditions, including command has been interrupted, and can we mere mortals call some dictates the threat of imminent death. the only remaining member of the just and others, well, dictatorial? The early Whigs don’t offer much administration is Education Secretary Not only did these policy-wonk refuge from such lunacy. James Tyrrell Watch ‘House’ for the acting Laura Roslin (Mary McDonnell), questions intrigue pundits, they inspired wastes time and energy proving that who is quickly sworn in as the new such events in British history as the president of the survivors to ensure Adam’s authority over his sons was a Long Parliament, the Puritan Revolu- general one common to all fathers, rather • “House” civilian leadership. tion, the Commonwealth, etc. In The FOX Television More than 47,000 survivors try than a specific right granted to Adam Politics of Liberty, Professor Lee Ward, alone. He frets over whether human lib- Tuesday nights to find Earth, and the storyline is who teaches political science at Campion laced with more real-life drama than erty is alienable and decides it is, though College, University of Regina, correlates I’ve always thought consistently the savviest sci-fi. There is a post 9/11 no man would be foolish enough to give his philosophical history to the political well-written scripts are the key in parallel and paranoia, in which we away his freedom. Perhaps not, but some one and coincidentally proves how very making a television show a hit. Then never know who may or may not be philosophers are foolish enough to abet much ideas really matter. I watched “House,” a medical drama a “cylon” in our midst. those who steal it. He traces the development of starring British actor Hugh Laurie, There is always angst between The Politics of Liberty explains some thought, repellant though it is, on the and realized a gifted actor can over- Adama, privately an atheist trying of the baffling reverence for government extent and morality of the state’s author- come mediocre material. Laurie is to keep morale high with a faux plaguing us today. Much of it can be ity from Sir Robert Filmer, Hugo Grotius, best-known for comedic roles and as confidence of Earth’s whereabouts, traced to Filmer, Hobbes, and the other and Thomas Hobbes through Samuel the dad in the “Stuart Little” mov- and President Roslin, dying of breast apologists for government whom Ward Pufendorf and such Whig philosophers ies, but his versatility shows as Dr. cancer, coming to the belief that she discusses. Their pernicious presupposi- as James Tyrrell, Algernon Sidney, John Gregory House, a drug-addicted, self- is the prophet-leader foretold in their tions still stalk among us like vampires. Locke, and Cato (i.e., John Trenchard absorbed physician. House despises pagan scriptures. Understanding these presuppositions and Thomas Gordon, authors of Cato’s just about everyone. Most days that All of the characters are flawed allows us to track the vampires to their Letters). His book concludes with the includes his ex-girlfriend — gorgeous and yet move forward in a time of lairs so we can drive stakes through transformation of these ideas by James Sela Ward of “Sisters” — even though crisis. The enemy, as metallic kill- their hearts. This book provides not deep down, he still loves her but can’t ing machines, are unemotional task Otis, Thomas Paine, Thomas Jefferson, only a map to the lairs, but the stakes as forgive her fateful decision that caused driven droids — as human clones, and other Americans. well. CJ his permanent disability and his reli- reflective, wry and, well, human. And thank Heaven they were ance on pills. If nothing else, the story keeps you transformed. Filmer argues unabashedly The sarcastic House finds solace guessing and pondering the “what that the monarch is sovereign. Indeed, in three things, around which the ifs” of our own world. his king sits so far above the law that the Becky Akers ([email protected]) show is built: his love-hate relation- — CHAD ADAMS CJ royal nostrils may bleed. Filmer credits writes for The Freeman and other publica- the Biblical account of Adam’s creation tions. CAROLINA December 2005 JOURNAL The Learning Curve 23 Home-schooler’s Project Becomes World War II Tribute

By HAL YOUNG “The really in- spun out. Doug Phil- Bill Brown is now 82 years old Contributing Editor teresting thing about lips came to speak. We and living in his home state of Texas. RALEIGH this project is it’s a film started finding other The family moved around after the war, North Carolina family’s oral completely made by guys who were there though, and Scott, born in Alaska, grew history project has culminated families, for families, — we met [former up in California and went to college in in a book, key roles in a feature- to encourage children Marine] Bill Hender- the late 1960s. It was a critical time and Alength documentary just released, and to ask their fathers, and son here locally. One place to be a student; did it affect his some unusual travel destinations. fathers to rise up and of the first things we view of his father’s service? “When it all began,” said Scott tell their children. We did for the film was “Not really,” he said. “My father Brown, the father, “we had no idea we’d want people to run out fly him down to my had told us his stories from time to time, end up on Iwo Jima.” of the theatre, saying, father’s home in Fred- so we knew about it. Certainly the ‘60s What started as an assignment for ‘Where’s my father? ericksburg, Texas, and were a time of dishonoring fathers, their home-schooled daughter to learn I’ve got to ask him … filmed the two of them though I wasn’t aware of it at the time. her grandfather’s part in World War Where’s my daughter? talking there. That was They were anti-authoritarian, anti-heri- II became the catalyst for a multiyear I’ve got to tell her.’” in 2003.” tage, anti-male, anti-military.” project involving dozens of veterans Scott’s father, This spring the He laughed gently. “I’m sure I and a return to Guam and the volcanic Bill Brown, grew up Bill Brown with granddaughter project led several fam- was affected by it, being surrounded island where they once served in the in Texas and had an Kelly on Iwo Jima ilies and staff members like that — but of course, World War II South Pacific. early fascination with to one of the world’s was a different kind of war. My father The film, “The League of Grateful aviation. When the war broke out, he most exclusive and least glamorous went to war to stop Hitler and Hirohito. Sons,” follows a group of veterans and volunteered for duty, eventually becom- travel destinations — Iwo Jima. Occu- There the enemy was clear; it wasn’t so their descendents as they revisit the ing a P-51 pilot, shipping out for the pied by the United States for 23 years clear in Vietnam. battle scenes and retell the events that Pacific Theater, and serving the entire after the war, the island was returned to “I never correlated Vietnam with are now a part of their families’ history. war from 1942 to 1945. Lt. Brown’s Japan in 1968 and remains uninhabited my father’s war.” It is the first of several projects planned service led him to the rocky Iwo Jima, except for a single day each year, when Production on the film was com- under the overarching “Faith of Our about 600 miles from the home islands veterans who fought there and their pleted in time to premiere at the San Fathers” initiative sponsored by Texas- of Japan, where he flew missions from families are allowed a brief visit. This Antonio Independent Christian Film based Vision Forum. Its president, Doug the island’s air strip. year’s tour marked the 60th anniversary Festival in October. Over 1,000 par- Phillips, also encouraged Kelly Brown to He was shot down in Tokyo Bay of the 1945 battle. ticipants, including competitors from recast her history project in book form, on March 29, 1945, and picked out of Time is short for the tour, as well. North Carolina, were on hand for the and On A Wing And A Prayer was released the water by an American submarine. Besides being the site of a major setback event. One student said the film was in hardback this summer. When the war was over, Brown returned for the Japanese during the war — Brown powerful — “Everyone in the room had “I’ve never seen a documentary to civilian life. said their official version of the battle’s tears,” he said. like this before, where the purpose is Scott said he saw time was grow- history is “heavily spun” — there are Now that Lt. Brown’s story has so plainly stated,” Brown said. “Our ing short with his father now in his 80s. more than 20,000 Japanese soldiers been told on film, does his son foresee major objective was to encourage sons “A few years ago I realized my father entombed in the caves, bunkers, and participating in any of the upcoming to honor their fathers, and fathers to had many stories which we needed to rocky soil of the island. When the last projects? encourage their sons to recognize the record. I had my daughter go to him on veteran dies, said Brown, the island will “Sure,” he said. “I’m writing a role of Providence in their families’ a mission to learn those stories. It had be made officially off-limits. book now about what my father told me lives,” said Brown, a Wake Forest pas- come to me that there are a thousand The trip this March included nearly on Iwo Jima.” He’s still grateful. tor. “We took our cue from the book of to fifteen hundred of these men dying 90 veterans, along with the team from The film The League of Grateful Deuteronomy, verse 32:7 — ‘Remember each day; after we started collecting the film project. They landed on the Sons and Kelly Brown’s book On A Wing the days of old, consider the years of the stories from my father, our church military airstrip in a chartered airliner And A Prayer are available from Vision many generations. Ask your father, and began celebrating Memorial Day to and deplaned for visits to the beaches. Forum, San Antonio, Texas (http:// he will show you; your elders, and they honor these men. “We got hundreds of stories,” Brown www.visionforum.org ) CJ

Since 1991, Carolina Journal has provided thousands of readers each month with in-depth reporting, informed analysis, and incisive commentary about the most pressing state and local issues in North Carolina. Now Carolina Journal has taken its trademark blend of news, analysis, and commentary to the airwaves with Carolina Journal Radio. A weekly, one-hour newsmagazine, Carolina Journal Radio is hosted by John Hood and Donna Martinez and features a diverse mix of guests and topics. The pro- gram is currently broadcast on 18 commercial stations – from the mountains to the coast. The Carolina Journal Radio Network includes these fine affiliates: Albemarle/Concord WSPC AM 1010 Saturdays 11:00 AM Asheville WZNN AM 1350 Saturdays 1:00 PM Boone/Lenoir/Hickory WXIT AM 1200 Sundays 12:00 PM Burlington WBAG AM 1150 Saturdays 9:00 AM Chapel Hill WCHL AM 1360 Saturdays 5:00 PM Elizabeth City WGAI AM 560 Saturdays 6:00 AM Fayetteville WFNC AM 640 Saturdays 1:00 PM Gastonia/Charlotte WZRH AM 960 Saturdays 1:00 PM Goldsboro WGBR AM 1150 Saturdays 12:00 PM Greensboro/Burlington WSML AM 1200 Saturdays 12:00 PM Hendersonville WHKP AM 1450 Sundays 5:00 PM Jacksonville WJNC AM 1240 Sundays 7:00 PM Lumberton WFNC FM 102.3 Saturdays 1:00 PM Newport/New Bern WTKF FM 107.3 Sundays 7:00 PM Salisbury WSTP AM 1490 Saturdays 11:00 AM Siler City WNCA AM 1570 Sundays 6:00 AM Southern Pines WEEB AM 990 Wednesdays 8:00 AM Whiteville WTXY AM 1540 Tuesdays 10:00 AM Wilmington WAAV AM 980 Saturdays 1:00 PM Winston-Salem/Triad WSJS AM 600 Saturdays 12:00 PM For more information, visit www.CarolinaJournal.com/CJRadio December 2005 CAROLINA 24 Opinion JOURNAL

Commentary The Only Remedy for Kelo

on’t get too attached to also can take property that might your house. If the govern- become blighted. ment wants to, it can take Assume that current state Dit from you and give it to another statutes do protect us from eco- private party solely for economic nomic development takings. This development reasons. The pur- still would provide inadequate ported reasons might be to create protection for North Carolinians. a higher tax base for your commu- State statutes can easily be changed nity or simply to make at the whim of political your city more attrac- interests. If the United tive. States Supreme Court In Kelo v. City gutted freedom of of New London, the speech, would we feel United States Supreme a state statute protect- Court held that these ed freedom of speech “economic develop- in North Carolina? Of ment takings” are course not. constitutional. There A state constitu- Editorial doesn’t even have to tional amendment is be a likelihood that the Daren the only way to protect taking will lead to an Bakst North Carolinians. Congress Should Take Econ 101 economic benefit. All The North Carolina that is required is the government’s Constitution is the highest law of “It is no crime to be ignorant of day: While market prices are a deter- decision must be “rational.” the state, and once an amendment economics, which is, after all, a special- minate of profits, the reverse is not true. As Justice O’Connor argues: has been passed, it will be difficult ized discipline and one that most people Prices are set in the market by supply “The specter of condemnation to change. To amend the state con- consider to be a ‘dismal science.’ But it is and demand. Profits are a by-product of hangs over all property. Nothing is stitution, three-fifths of both houses totally irresponsible to have a loud and this process. In a market with no price to prevent the State from replacing of the General Assembly have to vociferous opinion on economic subjects controls, prices of any product, includ- any Motel 6 with a Ritz-Carlton, approve the change, and then a while remaining in this state of ignorance.” ing gasoline and oil, will move toward any home with a shopping mall, or majority of voters must pass it. the level that ensures no shortages or any farm with a factory.” Amending any constitution hose words of economist Murray surpluses, that is, where the quantity While the United States Con- should be done rarely. However, it Rothbard are particularly suitable supplied equals the quantity demanded. stitution no longer adequately pro- is hard to imagine a more appropri- to recent pontificating about oil Profits are revealed after this pro- tects property rights as a result of ate time than now to amend the Tcompany profits. Congress is conduct- cess takes place. If this “equilibrium Kelo, states can protect their citizens state constitution. Property rights ing hearings to investigate whether the price” is above cost, profits will be earned by guaranteeing greater property are being threatened. An amend- profits are “excessive.” As an aside, the — if it is well above cost there will be rights through their own laws. ment would not create a new right, 12-month average profit margin for oil large profits. If these prices are only North Carolina can provide these but simply would reaffirm a right companies is below the national average slightly above or possibly below cost, necessary protections through a that our nation’s founding fathers for all industries. then profits will be low or even negative, new constitutional amendment. explicitly listed in the Bill of Rights. At the heart of this “state of ig- there will be losses. There have been The North Carolina League North Carolina also has the norance” is a poor understanding of periods where the oil industry has suf- of Municipalities argues that a only state constitution, except for prices and their relationship to profits. fered greatly — recently, the mid 1980s constitutional amendment is un- possibly New Hampshire, which The field of microeconomics is devoted and the late 1990s — exactly because necessary. North Carolinians have does not expressly prohibit the to the study of these subjects and there of this relationship between prices and nothing to worry about because taking of private property without are scores of textbooks by economists profits. The point is that prices have state statutes are “crystal clear” and just compensation. In other words, as ideologically diverse as Milton been what they should be and conse- protect us from the Kelo decision. even if Kelo didn’t exist, the state Friedman and Paul Samuelson, where quently, profits are what they should be. It is true that there is no law desperately needs a constitutional one could go to lift himself out of this The term “shortage” refers to that explicitly allows for statewide amendment to adequately protect state of ignorance. Indeed, in econom- a situation where people cannot get economic development takings. property rights. ics this analysis is no more a question all of the product they desire at the However, this is an incomplete The foundation of the Ameri- of ideology than is an understanding going price. For the most part there examination of state law. The can dream is being able to rely on of how the heart interacts with the haven’t been shortages of gasoline. North Carolina legislature, even the government to legally protect lungs. Yet, daily we hear expressed Higher prices in recent weeks have before economic development tak- our property. The government “loud and vociferous opinions” on played an important social function. ings were deemed constitutional, ensures that our hard-earned prop- these subjects by national and local They encouraged people to economize passed a bill that explicitly permit- erty won’t be taken from us. After commentators who have not spent five on driving and to consume less gaso- ted Charlotte to engage in econom- Kelo, this critical understanding minutes actually studying the relevant line. If oil and gasoline companies had ic development takings. Imagine between citizens and the govern- science. Next, these same folks will be succumbed to social pressures and had what the legislature could pass ment is in question. North Caro- giving advice on how to treat cancer. artificially lowered their prices to adjust now that economic development lina should make it clear, through There is not enough space here to their profits downward (ignoring their takings are constitutional. a constitutional amendment, that clear up all of the economic misconcep- fiduciary responsibility to sharehold- The state’s urban renewal law in our state, the American dream tions that are coming from politicians ers) they would have been pushing also gives so much leeway to the and property rights are very much and radio and TV commentators. But prices below market clearing levels. government that “enterprising” alive. CJ there is a consistent undercurrent to At lower prices people would attorneys and local governments the mental void that is driving most have economized less on their driv- can easily use it as a pretext for of this chatter, namely that large oil- ing, creating gasoline shortages with economic development takings. Bakst, an attorney, is legal and company profits are proof that gaso- queues and limits on purchases. This This law does not cover blighted regulatory policy analyst for the John line prices have been too high; that oil could only be appealing to those property alone. The government Locke Foundation. companies have been “price gouging.” who think that Richard Nixon and Microeconomic principle of the Jimmy Carter were good presidents. CJ CAROLINA December 2005 JOURNAL Opinion 25 To Quota or Not to Quota? Commentary That’s the issue facing N.C. State as it strives for more divesity Big Food the Next Lawsuit Target

ow’s this for a preposterously enrollment “That will never happen.” influencing overall food consump- misleading headline, from The As explained less tendentiously tion was limited. People don’t eat Independent Weekly in Durham: in a News & Observer story several days r so said a prominent aca- crab cakes instead of rice cakes H“NCSU under investigation: Group that later, the probe into admissions practices demic researcher on tobacco because advertisers have manipu- played a role in Michigan case limiting at N.C. State involves the question of use when I talked to him a lated them. affirmative action says N.C. State has whether the university is using racial Ofew months ago about the dangerous The fundamental problem too many blacks, Latinos.” preferences today in a way that conflicts precedent set by over-regulation. I with the would-be ad prohibition- The organization in question, the with the 2003 Supreme Court decisions had asked him why, if advertising ists’ thesis is that it doesn’t match Center for Equal Opportunity, most cer- in two University of Michigan cases. bans and liability lawsuits up well with history. The tainly does not express the view that N.C. The majority upheld diversity as were appropriate respons- recent upswing in child- State or any other university has “too a legitimate educational goal, in a case es to cigarette marketing, hood obesity has not many blacks” or “too many Latinos.” The concerning admission to the law school, the same theory couldn’t occurred during a time president, Linda Chavez, is the former but struck down a numerical system justify restrictions and of intensified TV adver- staff director of the U.S. Commission on in undergraduate admissions that lawsuits against fast-food tising aimed at children, Civil Rights and former chairwoman of automatically gave underrepresented companies for causing which has existed for the National Commission on Migrant minorities extra points. obesity. “That will never decades. Education. She edited the American CEO’s research isn’t really new happen,” he insisted, say- In fact, American Federation of Teachers’ journal American but it is revealing. Author David Armor ing that I was just repeat- children are now gain- Educator. She is a passionate advocate found that given black and white appli- ing “the tobacco-company ing weight even as they for improving educational opportunities cants with the same qualifications, the line.” watch somewhat less for black and Hispanic students in the odds of the black student being admit- Au contraire. Both commercial television United States. ted to NCSU were 13 times higher than in the United States and than previous genera- What Chavez and CEO in general the white’s. around the world, there tions did. Alas, that does oppose is a policy of racial preferences It’s not clear what, if anything, are indeed serious efforts, from not mean today’s kids are playing in university admissions. Arguing that the federal Department of Education powerful lawmakers and litigation- outside more. They simply have blacks or Hispanics with fewer qualifi- will do in this case. The vast majority of happy interest groups, to wage many more commercial-free al- cations or less preparation for success North Carolinians, of all races, oppose a legal battle against Big Food ternatives such as premium cable, at a school like N.C. State should not naked racial preferences in university similar to those waged for decades tapes and DVDs, and video and be admitted instead of better-qualified, admissions. against Big Tobacco. The purported computer games. better-prepared whites or Asians is not Their continued use at N.C. State policy justification is also similar: Another unfortunate fact the same as arguing that fewer blacks would seem to violate both judicial given that government programs for advocates of regulating food or Hispanics should attend N.C. State. precedent and the will of the electorate. now account for a huge percentage advertising is that their pet idea The issue is how best to increase their It should stop immediately. CJ of health care spending, taxpayers has already been done to the max will be forced to shoulder huge – that is, in the form of outright costs for obesity-related illnesses bans of ads targeting children – in unless regulators or courts step in places such as Sweden and Que- End That Goofy Funeral Tax to “protect” them. bec. The obesity rate of Swedish The U.S. House of Represen- children differs little from that of, If we must keep the sales tax, don’t apply it piecemeal tatives took the threat of such ac- for example, British children. The tion so seriously that in October it same is true in Quebec vs. other ozens of tax-policy experts, 2006, the goods sold by funeral directors, passed the so-called Cheeseburger Canadian provinces. hundreds of politicians, thou- morticians, and undertakers will con- Bill. It stipulates that manufactur- Furthermore, the line of cau- sands of activists, and millions tinue to be taxable but the services won’t ers, retailers, and other related sality from advertising to obesity Dof taxpaying citizens are all saying that be. The $1,500 exclusion goes away, so businesses can’t be held liable in must run through the intermediate the tax code is complex and unfair. If that consumers will start to pay tax, on court for damages associated with point of eating more, or at least everyone thinks this is the case, why is what is taxable, from the word go. the consumption of any legal food more calorie-laden, food. But there it still complex and unfair? Perhaps this So when you get a bill from your product. is surprisingly little agreement little story about death and taxes will mortician, the coffins, grave markers, Unfortunately, the federal bill about this. Federal data reveal that suffice as a partial explanation. and other goods will bear a sales tax. won’t make this issue go away, not average caloric intake of U.S. teen- Don’t worry, lefties. This is not But ambulance service, cemetery lots, by a long shot. Those who see the agers rose by only 1 percent from going to be yet-another diatribe against burial fees, and death certificates won’t legal assault on tobacco as a wildly 1980 to 2000 while obesity rose 10 taxing estates and inheritances. Instead, be taxed. If the cost of hiring someone to successful model to emulate are percent. Sedentary lifestyles seem let’s look at the case of state taxes on move and bury the casket is included in not going to give up easily on the to be the more significant factor. funeral services. the price of the casket, it will be taxed. notion of replicating it against the It’s better to be debating the Current law in North Carolina re- If it is listed separately in the invoice, it far-larger target of food processors effects of food advertising rather quires funeral directors, morticians, and won’t be taxed. and restaurant chains. Their plan, than blaming food itself. But de- undertakers to levy the full retail-sales The original tax policy towards already evident in a re-filed lawsuit spite recent congressional interven- tax rate (7 percent in all counties except funeral services was goofy. The new one against McDonald’s in New York tion, and contrary to the assurances Mecklenburg where it is 7.5 percent) is even goofier. If we are going to retain State, is to argue not that the food of anti-tobacco activists, a major on the goods and services they sell. a sales tax, it should simply be applied itself is the cause of obesity but battle is still brewing over our Customers must pay sales tax, in other to the entire bill presented to a retail rather than the industry’s adver- freedom to eat and watch what we words, on both the caskets they buy and customer — no artificial distinctions tising practices are deceptive and want. CJ the services required to bury their loved between goods and services, no arbitrary injurious to public health. ones. The complexity here is that the cap on liability, and of course no retail The argument is flimsy at first $1,500 of expenses associated with sales tax on the goods or services that best. A comprehensive 1997 survey Hood is president of the John funerals and burials has been exempt funeral directors purchase business-to- of worldwide research on the Locke Foundation and the author of from sales taxation. business. topic found that while advertising Selling the Dream: Why Adver- The North Carolina General Or we can phase out the sales tax played a significant role in influ- tising is Good Business, just out Assembly, in its infinite wisdom, has and tax the same tax base via a con- encing brand preferences in highly from Praeger. Contact him at jhood@ “fixed” this problem. As of January 1, sumed-income tax. CJ competitive markets, its role in johnlocke.org. December 2005 CAROLINA 26 Opinion JOURNAL

Editorial Briefs

Subsidizing old TVs The Senate Commerce Committee, headed by Sen. Ted Stevens, R-Alaska, recently voted to spend $3 billion on subsidies for people with old television sets. Even more startling, the massive new spending program is a part of the committee’s contribution to the budget reconciliation bill, leg- islation that was intended to showcase Congress’s new resolve on spending, says James L. Gattuso, a research fellow at the Heritage Foundation. The subsidies are tied to ongoing efforts to complete the transition from the existing analog television broadcast system to a more advanced, digital system. Currently, U.S. broadcasters trans- mit in both modes, using previously licensed frequencies for analog broadcasts and a new spec- trum given to them for digital broadcasts. When the transition is complete, the old frequencies are to be auctioned off and used for a host of new telecommunications services. “We plan to provide a set-top box… to every- one who needs a box,” Stevens said. Specifically, the legislation provides for the federal government to pick up almost the complete cost of the set-top devices, which would convert the digital signals to analog signals that can be displayed on existing television sets. It estimates the cost of converters will be $50 to $60 apiece. Consumers would be Tax Reform Involves Tough Tradeoffs responsible for only a “co-pay” of $10. Ultimately, however, subsidies are the wrong thing to do, Gattuso said. There is no federal entitle- ith relatively little fanfare, the President’s mortgage interest and the business deduction of em- ment to analog television, nor should there be one. Advisory Panel on Federal Tax Reform ployer provided health insurance. The commission Viewers have been on notice of the transition for recently issued its final report. The com- recommended limiting both deductions, and they nearly a decade, and there is no reason for those Wmission, headed by two retired senators and includ- gave two reasons why. who have prepared for it to subsidize those who ing several prominent economists, was charged First is pure cost. The commission estimates have not. with developing alternatives to the current income the business health insurance deduction costs the tax. However, they had to operate with one crucial government $225 billion annually in lost tax rev- restriction: any alternative had to raise enue, and the mortgage interest deduc- the same amount of revenue as the cur- tion is close behind, costing $175 billion Finally some data on “acting white” rent system. per year. By curtailing these deduc- As noted in the commission’s tions, the saved funds could be used to There is a well-publicized aspect of black report, the motivation for changing the help eliminate the AMT and lower tax adolescent peer culture in which black teen-agers federal income tax is a longstanding one. rates. ridicule others for behavior regarded as charac- In the evaluation of many, the federal The commission also speculated teristic of whites — referred to as “acting white.” income tax is complicated and confusing, that the tax benefits for mortgage interest It includes ridiculing an interest in making good it discourages saving and encourages and employer provided health insurance grades. certain kinds of spending, and it can treat may motivate overspending on these While often talked about, the “acting white” taxpayers with the same income differ- Michael items and contribute to the fast rising phenomenon has rarely been studied because reli- ently. Walden prices for both houses and health care. able data on it did not exist. The recently released There’s also a component of the So we’re faced with a tradeoff. By National Longitudinal Study of Adolescent Health, current federal income tax, called the alternative limiting tax deductions, the President’s tax panel however, allowed National Bureau of Economic minimum tax (AMT), which is increasingly becom- was able to develop plans that reduced tax rates Research researchers Roland G. Fryer Jr. and Paul ing an issue for many taxpayers. The AMT was and removed the unpopular AMT. Therefore, if Torelli to construct an index that measured the originally designed to insure that high income adopted, homeowners with expensive mortgages popularity of students based on friendship net- taxpayers couldn’t use available deductions and and businesses offering generous health insurance works within their schools. exemptions to end up paying no income tax. But plans could end up paying more taxes, while others Among white teen-agers, a correlation exists because the AMT’s income levels haven’t been ad- would pay less. between higher grades and popularity. justed to account for inflation, today more and more This situation illustrates a dilemma with tax Popularity among their peers also rises along moderate income taxpayers are being subjected to reform. Any new tax plan that is required to gener- with grades for black and Hispanic teen-agers the higher AMT each year. ate the same amount of revenue as the current tax but above a certain achievement level, the trend Correcting these and other issues with the fed- code will inevitably create winners and losers. This reverses. For blacks, popularity peaks at a grade- eral income tax was the task of the tax commission. is the reason why any plan for major changes in the point-average of 3.5 and then declines; a black student with a 4.0 average has about as many black Many people think this job should have been easy. income tax faces a tough road when it gets to the friends as a black student with a 2.9 GPA. Just get rid of the complications, lower the tax rates, political process. One astute observer says it takes The threshold for Hispanics is much lower; and bingo, job done! a minimum of ten years before any new tax idea has popularity begins to decline at a GPA of 2.5, and a Unfortunately, it’s not that easy. Tax reform a chance of being accepted. Hispanic student with straight A’s is less popular involves tradeoffs. The complexities in the tax So don’t hold your breath for major tax among other Hispanics than one with a 1.0. code, in the form of deductions, exemptions, and changes! CJ Researchers found the phenomenon mostly credits, are there to reduce the tax bill of certain in public schools in which blacks are less than 20 taxpayers. So if these tax benefits are reduced or percent of the students. It is nonexistent among eliminated, some households and businesses may blacks in predominantly black schools or those who pay more taxes. Walden is a William Neal Reynolds Distinguished attend private schools. CJ Let me give you two examples examined by Professor at North Carolina State University and an the tax commission, the homeowner deduction for adjunct scholar with the Locke Foundation. CAROLINA December 2005 JOURNAL Opinion 27 Paternalism Dying as People Become Own Experts

f 1989 was the end of the beginning fins on cars. sembly insists that it knows best how to promised benefits will require higher for paternalism, 2005 is the begin- In between, health savings ac- invest our money — giving $500,000 to taxes or lower spending elsewhere. The ning of the end. counts, which require greater respon- a proposed theater in Roanoke Rapids, alternative is to limit the government’s I Paternalism reached its apogee sibility for one’s own care, passed $500,000 to promote the CIAA basketball obligations to future retirees and allow a half-century ago between the Great one million subscribers. The Supreme tournament in Charlotte, $2 million for them to control their own money. Depression and Lyndon Johnson’s Court’s Kelo decision on property a proposed ACC Hall of Champions Just as paternalism is proving too Great Society. rights led to a greater push in states to in Greensboro, and $7.5 million for an expensive, it is also proving harmful. Corporatism protect those rights. And the peoples Advanced Vehicle Research Center in The FDA faces criticism for Vioxx, but and socialism of Georgia, Ukraine, Lebanon, and Iraq Northampton County. not for the safe drugs it keeps off the spread under demonstrated again the universal desire Peter Drucker, the management market. Young girls become anorexic the assump- for freedom. guru, recognized the limits of paternal- because they think they are fat, but Ar- tion that smart North Carolina is, again, behind ism decades ago. He has often written kansas, Texas, and Pennsylvania are put- men in corpo- the curve. Gov. Mike Easley has com- that the complexity of modern society ting body-mass-index scores on report rations or gov- plained about the cost of Medicaid, but makes paternalism less viable. The cards because since-discredited studies ernment could done little to improve or shrink one of seemingly frivolous decisions we make showed overweight and obesity to be the protect the rest the most expensive programs in the at the Gap or in the cereal aisle allow us second leading cause of death. of us from life’s Joseph Southeast. to make the bigger choices about where The end of paternalism will ulti- troubles. Coletti The number of charter schools ap- and how much to work. mately come because Americans under The elec- proved in the state has reached the cap With no change in the program, 40 are comfortable with responsibility tions of Ronald Reagan, Margaret of 100 and legislation to raise the cap future Social Security beneficiaries are and choice. They grew up with cable Thatcher, and Pope John Paul II marked a languished while parents in Mecklen- doomed to lower benefits even as future television, empty homes after school, turning point. Within a decade the Berlin burg County were denied the right to workers are doomed to pay higher taxes. and computers. Those in college have Wall had fallen and students were facing even consider smaller school districts. The federal government would have to grown up with the Internet. They truly down tanks in Tiananmen Square. These Easley vetoed a bill that would make set aside a year’s production from the have been experts since they were teen- were the first victories against collectivist it easier to recruit teachers from out of entire country in an interest-bearing agers. To them, paternalism is not just a paternalism. state because he wants to ensure the account in order to pay what it owes bad deal — it’s condescending. CJ President George W. Bush started quality of the 46th best education system Social Security. 2005 with a plan for private Social Se- in the country. If nothing else, the president has curity accounts. On Oct. 8, Delphi CEO Auctioneers must be licensed. shown that Social Security is no longer Joseph Coletti (jcoletti@johnlocke. Steve Miller declared that defined benefit Barbers must be licensed. Mattresses the third rail of American politics, the org) is fiscal policy analyst at the John Locke pensions are an “anachronism,” like tail must be certified. But the General As- trust fund is a chimera, and paying the Foundation. Air Force One Symbolizes The Soaring Spirit of Ronald Reagan

any years ago my wife, pull it up a mountain to be housed in day presenting new challenges, rais- representatives of a nation that loves Karen, and I were in Arling- a spectacular three-plus-story build- ing the money, not the least of these. freedom and yearns for others to hear ton National Cemetery. It ing is remarkable. But it was no more The plane was disassembled by the its liberating song. Mwas a heavily overcast day with thick amazing than the tenacity and due Boeing Co., towed in the middle of the Perhaps Mrs. Reagan said it best: fog, one of those surreal days where diligence to accomplish great and night across four California freeways things seem to be appearing out of a difficult things that Ronald Reagan from San Bernardino to Simi Val- “Ronnie always dreamed about mist, a day when and the men and ley. The day the bringing this plane to his Library. He voices from the women who cornerstone of the knew it would attract people from all past call to us. worked for him “Ronnie always dreamed “Pavilion” was walks of life and inspire them to learn A military often accom- laid was during a about the presidency and the lessons of funeral was taking plished, both in about bringing this plane ferocious wind- liberty and democracy. As visitors step up place that day and and out of office. storm...and 22 to the door of AIR FORCE ONE , I hope the clop of the Many of these to his library.” rattlesnakes tried they feel as Ronnie and I did each time we horse’s hooves men and women to get in the way arrived on foreign soil in faraway coun- pulling the casket came to Califor- Nancy Reagan during the con- tries or returned to the safely of American could be heard nia to share this Former First Lady struction as well. shores – thankful for our blessings.” long before they Marc experience with Marine One was Rotterman came into view Mrs. Reagan. flown in on the A visit to the Reagan Library and through the fog. It Many came to stand at the former Library’s South ‘White House” lawn. the new Air Force One Pavilion are is a day I will always remember. president’s gravesite and say a final, Then rain and firesstorms threatened both wonderful experiences. I hope A few days ago, similar to that personal goodbye. As for me, having the survival of the big plane and final- that many North Carolinians who find day years ago, Karen and I wound our the privilege to serve, in some small ly the Boeing Team had to reassemble themselves in California on business way up the hill in Simi Valley, Calif., way, this great man, changed my life. the plane and lift Air Force One on its or pleasure will include a visit to the through a thick fog to the Reagan Before he left office, President pedestals. museum in their plans. If they do, Library. This is also a day we will Ronald Reagan had said that he hoped At last, the “Flying White I’m sure they will come away feeing remember. We were there for the dedi- “that this majestic aircraft would House” was in its new home. uplifted and full of the same opti- cation activities for the new pavilion someday find a permanent home at During his presidency, Reagan mism of the great man who worked that now houses the Air Force One the Reagan Library.” A devoted group traveled 661,708 miles on this craft to “take down walls” and believed craft that Reagan and several other of visionaries, learning that this Air visiting 26 countries and more than that “America is too great for small presidents used. Among the invited Force One was to be retired, wasted 150 U.S. cities. Reagan believed in dreams.” CJ attendees were many people with no time seeking a way to obtain this face-to-face diplomacy, and that is whom Karen and I worked during our great part of American history and how he used this plane — to defend, days in the Reagan administration. save it. In doing so, they made Rea- discuss, and negotiate for peace. The fact that anyone could take gan’s dream come true. I think that Reagan and this Marc Rotterman is a senior fellow at this massive plane apart, haul it across It took four years for the plane to plane are both tremendous symbols the John Locke Foundation and treasurer the horrible California traffic, and go from drawings to reality, with each of America at its best. They are both of the American Conservative Union. December 2005 C a r o l i n a 28 Parting Shot Journal Gov. Easley: Why I Skipped the Dolly Parton Gig (a CJ parody)

A letter to the citizens of Roanoke has also approved for him to moon- Rapids from Gov. Mike Easley: light for Randy Parton’s new company, Moonlight Bandit Productions. So I n Friday, Nov. 11 the promoters guess it would be OK for me to take a of the Randy Parton Theater and second job working for Dell Computer. Carolina Crossroads Music & Does that make sense to you? Do you OEntertainment District held a ground- really expect me to stand on the stage breaking ceremony for the project. I with Watson? learned from news reports that the Now for that Randy Parton fellow weather was beautiful and as many as — he looks cool with his ponytail and 10,000 people attended the event. From all the black leather — but my research news photos I concluded that Randy shows that all he has going for him is might be fun to hang out with and his the same last name as his sister Dolly. I sister Dolly would be fun to hug. can’t believe your city council is going So with great weather, several to build a $9 million theater and turn celebrities, and so many jobs promised, Country music superstar Dolly Parton (right) smiles as her brother, Randy Parton, it over to him to run. I even heard that many of you must have wondered why speaks at the groundbreaking of his theater venture in Roanoke Rapids on Nov. 11. At some of your local citizens chipped in to left is sister Stella Parton. (Photo by Don Carrington) your governor was not there. There are buy him a house. Are they crazy? several reasons. citizens to spend all their discretionary have told the public what the money Finally your community leaders Supporters claim the Phase 1 in- money on our new lottery? was spent on. Do you really expect me should know I don’t attend ground- vestment of $129 million will create over I also understood that at the event to share the stage with this guy? breakings or other publicity stunts on 2,600 new jobs in theaters, retail shops, I would have to share the stage with a Then there is this fellow Rick Friday unless they are held near my hotels and restaurants on a 130-acre site. group of legislators led by Sen. Robert Watson who is taking most of credit for weekend home on the coast at Southport. Sure it will — the old if-we-build-it-they- Holloman from Ahoskie. He claimed a landing the project. He calls himself the Anyway, I am not very optimistic about will-come, “Field of Dreams” mumbo key role in landing the project. I hope you CEO of the North Carolina’s Northeast the success of your project, but as your jumbo. My staff reviewed your feasibil- remember that he was deeply involved Partnership, an organization funded governor I wish you good luck. ity study and concluded it essentially in the shenanigans of former Congress- with your hard-earned tax dollars. The Sincerely, said that if people come to the project man Frank Ballance. Some people refer dude has a staff of less than 10 people, Mike Easley and spend enough money it would be to Holloman as an unindicted co-con- but his board of directors is paying feasible. Duh! That worked well with spirator because Holloman’s church got him $168,000 a year. I am CEO of the p.s. Let me know if Dolly makes it the Global TransPark. Besides, don’t almost $400,000 through the efforts of entire state government and only make back to North Carolina. I would like to you folks understand I am counting on Ballance. Neither Ballance nor Holloman $121,391. Then I learned that his board take her for a ride in my helicopter. CJ

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