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North Carolina INSIDE THIS ISSUE: DEPARTMENTS Wos talks North Carolina 2 C A R O L I N A Education 8 optimisti- Local Government 10 From Page 1 14 cally about Higher Education 17 Medicaid Books & the Arts 20 Opinion 24 expansion/2 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION November 2014 Vol. 23 No. 11 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Hagan-Nominated USDA Official Scrubs Docs ‘Proprietary info’ Stimulus file shows about JDC company significant Hagan ‘redacted’ from file family involvement By Don Carrington Executive Editor By Don Carrington Executive Editor RALEIGH RALEIGH copy of the U.S. Department en. Kay Hagan, D-N.C., and of Agriculture’s file on a 2011 her representatives have main- $50,000 solar energy grant to tained that Solardyne/Green JDC Manufacturing was missing key A SState Power, a company co-owned documents that would clarify the roles by Sen. Hagan’s husband Chip and of various family members of U.S. Sen. son Tilden, did minimal work on so- Kay Hagan. Hagan lar installations funded by a stimulus family members grant for Plastic Revolutions at JDC own JDC Manufac- The Hagan family sought and received a $50,000 grant from the USDA to help fund Manufacturing in Reidsville. JDC is turing, along with a a second set of solar panels atop this building they own in Reidsville, N.C. The first co-owned by Chip Hagan, and Chip solar company that set of solar panels also was funded by federal dollars. (CJ photo by Don Carrington) is an officer at Plastic Revolutions. claimed to have per- ter she took office in 2009. Gore and USDA would consider awarding the The solar installation project formed work on the Hagan live in Greensboro. President grant, but they were missing from the was one phase of a series of energy project. Obama nominated Gore, and the Sen- file the USDA provided to CJ. upgrades at the JDC building for Carolina Journal ate confirmed him. The missing documents — which which JDC received $250,644 in fed- requested access to According to the application, also could include invoices, purchase Randall Gore eral stimulus funding. The grant, the USDA file. The signed by JDC’S co-owner and Kay orders, and work records — might ex- awarded in 2011, was managed by head of North Carolina’s USDA Rural Hagan’s husband, Charles “Chip” plain the involvement of businesses the State Energy Office, which now is Development office, Randall Gore, is Hagan, among the missing documents owned by Chip Hagan, the Hagans’ part of the N.C. Department of Envi- the custodian of the information in the should be a “Copy of all estimates to son Tilden, son-in-law William Stew- ronment and Natural Resources. solar grant file. He was recommended calculate total project cost or Turn-Key art, and possibly other family mem- for the position (which is a political Quote.” Those documents had to be in- appointment) by Hagan not long af- cluded with the application before the Continued as “Hagan-Nominated,” Page 14 Continued as “Stimulus,” Page 14 Hagan Contractor Applications Raise Questions PAID tion for an unlimited license, a second RALEIGH, NC U.S. POSTAGE person attested to Tilden’s experience: PERMIT NO. 1766 NONPROFIT ORG. Senator’s husband William Stewart, Tilden’s brother-in- law. claims son worked The executive director of the state board that issues electrical contracting 76 hours per week licenses told CJ the board is obliged to By Don Carrington investigate credible information chal- Executive Editor lenging any license application, though RALEIGH he would not comment specifically on .S. Sen. Kay Hagan’s hus- the Hagan applications. band Charles “Chip” Hagan, a Carolina Journal calculated the Possessing an unlimited license Greensboro attorney, certified hours by comparing claims the Hagans affords Tilden the ability to manage Uto the North Carolina licensing board made on applications Tilden Hagan projects of a greater scope and mone- for electrical contractors that their son filed for North Carolina contracting tary value than he could perform with Tilden Hagan worked 3,500 hours in- licenses in the “limited” and “unlim- a limited license. The experience re- stalling electrical wiring and equip- ited” categories. On both applications, quirements for an unlimited license are ment over a period of 324 days in 2012 only one person attested to Tilden’s ex- greater, but the licensing board allows — requiring Tilden to work consecu- perience as an electrical installer: Chip The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 tive 76-hour weeks over that period. Hagan, Tilden’s father. On the applica- Continued as “Hagan Electrical,” Page 15 PAGE 2 NOVEMBER 2014 | CAROLINA JOURNAL North CaroliNa C A R O L I N A Wos Optimistic About Medicaid Expansion in N.C. By Dan Way funding bargain, the state would simply pull out. JOURNAL Associate Editor RALEIGH ‘Hotel California’ clause Rick Henderson tate Secretary of Health and Human Services Aldona But national health policy experts say there is a “Hotel Managing Editor Wos has been crisscrossing the state with an optimistic California” clause in the law covering Medicaid expansion. message that she is preparing to recommend that Gov. The Supreme Court ruled that states cannot be forced to add Don Carrington SPat McCrory expand Medicaid under Obamacare. to their Medicaid rolls, but language in the act forbids them Executive Editor But at a mid-October meeting of the Joint Legisla- from withdrawing from the program once they choose to tive Oversight Committee, two key sign on. Mitch Kokai, Michael Lowrey lawmakers who monitor Wos’ agency “I’m not sure under the Umstead Barry Smith, Dan Way made clear their reservations about Act that we have the legal standing to Associate Editors expanding the government health take it away” once a Medicaid program insurance program for the poor and or service has been provided to a par- disabled. Given Medicaid’s checkered ticular population, Hise said. “You’d Chad Adams, Kristy Bailey history, and lingering problems resolv- get sued, and it would end up being all David N. Bass, Lloyd Billingsley ing years of mismanagement and bud- Kristen Blair, Roy Cordato state dollars if you discontinued it.” get overruns, they said the belief that Becki Gray, Sam A. Hieb “It’s hard to unring the bell, Lindalyn Kakadelis, Troy Kickler Medicaid is ready to accept more par- and that would basically be what you George Leef, Elizabeth Lincicome ticipants is a Pollyannaish view. would be doing,” Burr said. “Taking Karen McMahan, Donna Martinez Wos has told several media out- an entitlement away after you’ve given Karen Palasek, Marc Rotterman lets that the foundation is in place for it is a near impossible thing to do.” Jesse Saffron, Michael Sanera a more efficient and more effective Wos did not broach the subject of George Stephens, Terry Stoops Medicaid system, and that she will ask expanding Medicaid at the meeting. Andy Taylor, Michael Walden McCrory to expand Medicaid in the But on the agenda were updates and Karen Welsh, Hal Young John Calvin Young near term. McCrory has said through a concerns about how much progress Contributors spokesman that he is confident in Wos, has been made fixing the agency. and she will advise him when the time is right to expand. Joseph Chesser, Catherine Koniecsny But if that happens, the governor will have to convince Spending higher than previous year Austin Pruitt, Matt Shaeffer skeptical legislators. Rudy Dimmling, acting director of finance in the Divi- Interns “I will say that the original rejection of the Medicaid sion of Medical Assistance, under which Medicaid operates, expansion by the General Assembly required that any plan Published by said spending in the first two months of fiscal year 2015 al- The John Locke Foundation for expansion had to come through the General Assembly, ready was $325 million higher than the comparable months 200 W. Morgan St., # 200 and not through an executive decision, and I don’t feel that in 2014. Raleigh, N.C. 27601 we’re in any position right now to consider expansion un- That sparked the following exchange with Hise: (919) 828-3876 • Fax: 821-5117 der the Affordable Care Act,” said state Sen. Ralph Hise, R- HISE: “Right now we spent total dollars $325 million www.JohnLocke.org Mitchell. more than we did in the first two months of last year. That “We’ve had a lot of trouble in the last year enrolling would be about $107 million in state dollars. The entire an- nual increase we anticipated was about $143 million in the Jon Ham the 120,000 additional applications that have come in,” said Vice President & Publisher Hise, who is co-chairman of the Senate Appropriations budget for the entire year in overspending. Committee on Health and Human Services, and co-chair- “If you forecast those numbers out annually, we’re sit- John Hood man of the Joint Legislative Oversight Committee on Health ting over a $680 million state shortfall that’s coming out if Chairman & President and Human Services. this trend continues, and isn’t attributable to other factors.” DIMMLING: “You can’t extrapolate it that way. … We Herb Berkowitz, Charlie Carter Trouble enrolling are tracking very, very closely. We are confident that our Jim Fulghum, Chuck Fuller end-of-year results will be within budget, so it’s important Bill Graham, Assad Meymandi “You start trying to think what would happen to our Baker A. Mitchell Jr., Carl Mumpower to see how this works out seasonally.
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