• Possible Conflict • Auditor Reports Surrounds Auto Center On Slush Funds

Charter School Bills Languish C A R O L I N A Smart Growth’s Costs

Statewide Edition A Monthly Journal of News, Analysis, and Opinion from August 2005 • Vol. 14, No. 8 the John Locke Foundation www.CarolinaJournal.com JOURNAL www.JohnLocke.org Eminent Domain Concerns NC Lawmakers By PAUL CHESSER forbade any committees to meet that Associate Editor “We ought to make it weren’t working on the budget. RALEIGH That didn’t stop other lawmakers fficials in North Carolina hold as difficult as possible from investigating the state’s exist- differing opinions on the local ing eminent-domain laws, and asking implications of the U.S. Supreme to take people’s prop- whether the court’s decision could open OCourt ruling in the Kelo v. New London the doors to similar property takings in eminent-domain case in late June. erty.” North Carolina. But nearly all of the elected leaders — Rep. David Hoyle “We ought to make it as difficult surveyed by Carolina Journal were con- as possible to take people’s property,” cerned about the potential for infringe- Gaston County said Gaston County’s David Hoyle, one ment on individual property rights. of the state Senate’s Democratic leaders. The 5-4 court decision, which “That’s just wrong.” allows government agencies to seize expected to take action next year.” The Kelo decision addressed a private property from one owner and North Carolina’s General Assem- situation in Connecticut in which a lo- to give it to another private owner for bly may be one of those bodies that acts, cal economic development agency, with economic development purposes, led but it is not clear how important the powers of eminent domain, sought to to a grass-roots backlash across the na- Democratic House and Senate leader- condemn the properties of nine owners tion. The Washington Times reported July ship believe the issue to be. At CJ’s press of 15 homes in the city of New London. 11 that “several state legislatures are time both chambers were deadlocked in Institute of Justice’s anti-Kelo campaign expected to act on some kind of statu- their budget negotiations, and Senate produced this poster tory ban before year’s end and more are President Pro Tempore Marc Basnight Continued as “Lawmakers,” Page 2 Piedmont Wants Help Paying for Subsidized Pipeline

By PAUL CHESSER age economic development in areas of Associate Editor ENCNG has been using the bond funds to construct the state that did not have natural-gas RALEIGH service. ENCNG received $188 million he N.C. Utilities Commission more than 600 miles of gas pipeline in northeastern of the $200 million in bonds that voters heard testimony in late June approved in 1998. about Piedmont Natural Gas North Carolina. According to Piedmont and the TCo.’s desire to merge a money-losing gas Utilities Commission Public Staff, a state operation into its overall rate base. The created by APEC and former co-owner only about 1,000 customers, and has agency that represents utility consum- proposal turned into a discussion over Carolina Power & Light in 2000 to receive no operating capital to sustain it for ers, ENCNG is losing about $8.3 million who should pay for the unsustainable taxpayer-funded gas bond revenues. long on its own. Dr. Mitch Renkow, a annually. In a separate but related case economic development project in the APEC was originally formed as a professor of agricultural economics at before the Utilities Commission, Pied- northeast part of the state. gas district by a coalition of northeast- N.C. StateUniversity, said in prior writ- mont is asking for permission to raise Piedmont wants to buy full control ern North Carolina local governments ten testimony on behalf of Piedmont, its rates to produce $36.7 million more of Eastern North Carolina Natural Gas in 1998. “there is a substantial probability that in revenue per year. from the Albemarle Pamlico Economic ENCNG has been using the bond (ENCNG) will never become economi- At the hearing June 23, a consul- Development Corporation for $1. Pied- funds to construct more than 600 miles cally viable.” mont and APEC are business partners of gas pipeline in northeastern North The bonds were promoted to North with equal stakes in ENCNG, which was Carolina. However the company has Carolina taxpayers as a way to encour- Continued as “Piedmont,” Page 3

Do You Support or Oppose 80 an Estate Tax in N.C.? The John Locke Foundation NONPROFIT ORG. 200 W. Morgan St., #200 U.S. POSTAGE 70 Contents Raleigh, NC 27601 PAID RALEIGH, NC 60 State Government 3 PERMIT NO. 1766 Oppose 72 % 50 Support 12 % Washington Watch 6 40 Not Sure 16% Education 8 Higher Education 12 30 Local Government 16 20 Books & the Arts 20

10 Opinion 24 Parting Shot 28 0 % Respondents in June Civitas Institute Poll CAROLINA C a r o l i n a North Carolina JOURNAL Journal Lawmakers Want to Prevent Seizures in NC Continued from page 1 Richard Wagner Editor The agency planned to obtain the land and turn it over to a private developer, Don Carrington who would build offices, a hotel, and a Executive Editor health club. The project was expected to provide as much as $680,000 annu- Paul Chesser, Michael Lowrey ally in tax revenues for New London’s Donna Martinez, Jon Sanders coffers. Associate Editors While many homeowners in the Chad Adams, Shannon Blosser, waterfront area voluntarily sold their Andrew Cline, Roy Cordato, homes to the agency, the Kelo plaintiffs Bob Fliss, David Hartgen, refused. That’s when New London Summer Hood, Lindalyn Kakadelis, invoked eminent domain, and the hold- George Leef, Marc Rotterman, outs sought legal protection under the Karen Palasek, R.E. Smith Jr., “takings clause” of the Fifth Amendment Jack Sommer, John Staddon, to the Constitution. George Stephens, Jeff Taylor, The Fifth Amendment reads that Michael Walden, Karen Welsh ...”(N)or shall private property be taken Contributing Editors for public use without just compensa- tion.” State Sen. Tom Apodaca, R-Henderson State Rep. Bruce Goforth, D-Buncombe Jenna Ashley Robinson, But the Supreme Court determined Paul Messino, Brian McGraw that the city’s taking of the property eminent domain for “urban redevelop- tutional amendment before the current Editorial Interns was justified. ment,” most often invoked in areas that session ends. “Those who govern the City are blighted. “I think you need a constitutional were not confronted with the need to “But it includes areas that substan- amendment to make sure that some remove blight…,” wrote Justice John tially impair the economic growth of the liberal judges don’t interpret the law Published by Paul Stevens for the majority opinion, community, have seriously adverse ef- the way they want, instead of the way The John Locke Foundation “but their determination that the area fects on surrounding development, and it’s written,” Forrester said. 200 W. Morgan St., # 200 was sufficiently distressed to justify a are detrimental to…the public health, In recent years North Carolina Raleigh, N.C. 27601 program of economic rejuvenation is safety, morals or welfare,” the memo legislators have shown a propensity (919) 828-3876 • Fax: 821-5117 entitled to our deference.” said. “Furthermore, it permits urban for passing special laws that offer large www.JohnLocke.org New London, like many north- redevelopment by a city where there is financial incentives to corporations in eastern towns, has suffered population a clear and present exchange for bring- Jon Ham losses in recent years with the increasing danger that these ing new jobs to the Vice President & Publisher unemployment and the closing of a Navy conditions will “It may give some state. facility. The projected shutdown of the come to be in the The highest- John Hood nearby Groton Naval Base is expected reasonably fore- municipality an idea, profile example Chairman & President to exacerbate the problem. seeable future.” was legislation in Despite similar pushes for eco- Researchers and we need to pro- November that cre- Bruce Babcock, Herb Berkowitz, John Carrington, Sandra Fearrington, nomic development by public officials said the statutes tect private property ated $242 million in Jim Fulghum, William Graham, in North Carolina, seizing private prop- authorize work- tax breaks for Dell Lee Kindberg, Robert Luddy, erty appears to be overstepping proper ing with private rights.” Corp. to build an William Maready, J. Arthur Pope, boundaries, sources say. developers in such assembly plant in Assad Meymandi, Tula Robbins, “I’m as much for economic devel- cases. — Sen. Tom Apodaca Winston-Salem. In David Stover, Jess Ward, opment in Forsyth County as anybody,” “That’s what Henderson County addition, local gov- Andy Wells said State Rep. Larry Brown, a Kerners- worries me,” said ernment provided Board of Directors ville Republican, “but I would never State Sen. Tom about $37 million in support what they did in Connecticut Apodaca, a Hen- land and tax breaks for any reason.” dersonville Republican. “Especially for Dell. “I have major concerns with [the when you get into urban planning, Public officials interviewed for this Carolina Journal is a monthly journal decision]” said Gloria Whisenhunt, because they change their planning article, who voted for the Dell incentives, of news, analysis, and commentary on state chairwoman of the Forsyth County every 20 years.” said that if an eminent-domain taking and local government and public policy issues Board of Commissioners and a Republi- He said that he and a number of was part of the deal, they would not in North Carolina. can. “I think there are boards that could his colleagues are seeking to address the have supported it. issue with a statutory fix “right off the “[Dell] would have to pay the ©2005 by The John Locke Foundation take advantage of it.” Inc. All opinions expressed in bylined articles Some lawmakers asked legislative bat.” Then he hopes a study commission price, or they’d have to find another are those of the authors and do not necessarily staff for the Assembly to examine the might be formed to consider whether site,” Hoyle said. reflect the views of the editors of CJ or the potential implications of the Kelo deci- a state constitutional amendment is “I wouldn’t want the state to staff and board of the John Locke Foundation. sion in North Carolina. necessary. condemn land to give it to Dell,” For- Material published herein may be reprinted as According to a memo issued by the “Even if this isn’t being done rester said. long as appropriate credit is given. Submis- legislative research team, the Supreme in North Carolina, it may give some Considering that the legislature sions and letters are welcome and should be Court’s decision “does not give the municipality an idea, and we need to has been willing to make exceptions in directed to the editor. power of condemnation for economic protect private property rights,” Apo- the tax code for private corporations, development to local governments. That daca said. and to allow municipal governments to CJ readers wanting more information power may only be exercised if the laws Two state representatives, Republi- raise revenue through local tax changes, between monthly issues can call 919-828-3876 of a state permit it to be used.” can Wilma Sherrill and Democrat Bruce making exceptions for eminent domain and ask for Carolina Journal Weekly Re- The memo cited several purposes Goforth, both of Buncombe County, were might be possible also, some said. port, delivered each weekend by e-mail, or visit in North Carolina law for which eminent working on a bill that would exclude “I don’t think it’s that far-fetched, CarolinaJournal.com for news, links, and ex- domain is permitted. They include many economic development as an excuse for and that’s why we need to move toward clusive content updated each weekday. Those of the commonly known reasons, such private property takings. a constitutional amendment,” Apodaca interested in education, higher education, or local government should also ask to receive as for roads, parks, and utilities. State Sen. Jim Forrester, R-Gas- said. “I think we need to approach it weekly e-letters covering these issues. However, researchers also noted ton, said he and State Sen. Fred Smith, while it’s a front-burner issue,” he a section in the statutes that allows for R-Johnston, hoped to propose a consti- said. CJ CAROLINA August 2005 JOURNAL North Carolina  Company could drop out of Northeastern project altogether Piedmont Says It May Not Merge If No Rate Hike Allowed

Continued from page 1 his view that he saw “no alternative to a roll-in” to ensure the economic viability tant for the Carolina Utility Customers of the northeast gas project. West sug- Association argued against the “roll-in” gested, and Renkow concurred, that of ENCNG into Piedmont, because the Piedmont’s shareholders — or perhaps burden of the money-losing project taxpayers — could absorb the losses. would fall disproportionately on manu- “But the taxpayers have already facturers in the state. ponied up a fairly large chunk of money “I believe that it is very important in that regard,” Renkow said. … to understand that Piedmont is seek- One commissioner, Robert V. Ow- ing a huge subsidy, the extent of which ens, implied how he might vote on the Piedmont will not even analyze, from case as the hearing closed. industrial customers to pay for an entity “I well know that it’s going to be a that Piedmont will not purchase without long time before it’s a viable situation,” asking manufacturers to subsidize its said Owens, a relative of State Senate purchase,” said Kevin O’Donnell, presi- President Pro Tem Marc Basnight, who dent of Nova Energy Consultants, who Construction crews work on the ENCNG pipeline in Martin County (CJ photo) helped get Owens on the commission represented CUCA before the Utilities during Gov. Jim Hunt’s administration. Commission. $17,200 in 2002. Piedmont system, or even how much a Owens is from Dare County. CUCA, which represents large At the commission hearing, West dekatherm of natural gas costs. “How does eastern North Carolina manufacturers in North Carolina, has asked O’Hara how APEC was funding West asked Renkow whether, as he get out of this dilemma?” Owens asked. “I mean, the only way it can be done is questioned why the Public Staff and its half of ENCNG’s losses. had claimed in earlier written testimony, over a long range, a long period of in- Piedmont have studied the proposed “It’s not right now,” O’Hara said. natural-gas service typically attracts frastructure. We know that’s gas, roads, merger’s impact only on residential “…the operating cost[s] associated with new industry. education and all the other little ameni- customers. If implemented, the rate in- that system are being funded by Pied- “Looking at the ENCNG system as ties that go with helping the economic crease is expected to increase the average mont with operating cost going into a it stands now,” West asked more directly, engine such as eastern North Carolina residential bill by about $9 annually. deferred account…to be treated or ad- “do you believe that that is a potent tool dressed in the upcoming rate case.” grow and develop. for attracting new firms to the area?” “Let me remind you folks, Raleigh is No rate hike equals no merger? The accumulating losses, in addi- “It hasn’t proven to be a terribly tion to the ongoing ones, would be recov- not eastern North Carolina …Yes, we are effective tool as of yet,” Renkow said. poor, very poor. We have probably more Representatives of Piedmont have ered by ENCNG ratepayers or a larger “Whether it will in the future, I cannot outhouses in eastern North Carolina said if the commission would not allow group of ratepayers, O’Hara said. say.” than any other area in the state of North a roll-in of ENCNG into its overall rate “It’s not believed [ENCNG] is go- West also challenged Renkow on Carolina.” CJ base, then it would not follow through ing to be economically feasible in the with a merger. near future,” O’Hara said. “And long Under cross-examination by term is very questionable.” CUCA lawyer James West, Piedmont But O’Hara said merging ENCNG Vice President for Business Develop- into Piedmont would produce some Little League Heaven ment Kevin O’Hara said that continu- cost savings, because it would get rid of ing ENCNG losses would continue to duplicative regulatory, tax, and financial By Carolina Journal Editor Richard C. Wagner be shared by APEC and Piedmont if reporting requirements. a merger didn’t happen. But O’Hara “It will be a big fat benefit to elimi- also suggested that if a roll-in failed, nate that work,” O’Hara said. Piedmont might withdraw from the O’Hara also said Piedmont would When Lillie Jo Sweeny realize $10 million to $20 million in project altogether. threw out the first pitch “You would pull out of your 50 per- savings in its system growth needs by of the game at Houston’s cent ownership?” West asked O’Hara. integrating the ENCNG infrastructure. Astrodome in 1989, she “Well, it is not a position we would But West contended that Piedmont joined the Astros and take right now,” O’Hara said. “But it could inexpensively lease the portions thousands of boys and is something we would certainly look of the ENCNG system that it needed for girls in celebrating the at, yes.” growth, without merging in the entire 50th anniversary of Little Such an action by Piedmont would company. League baseball. The leave APEC unable to maintain the event also saluted her gas project on its own. The economic Project’s merits debated deceased husband, Odie development nonprofit reported about Sweeny, a Little League $156,000 in revenue on its last two tax But the testimony turned into a legend who managed a returns on file with the IRS — for fiscal debate about the economic development never-say-die team for 38 2002 and 2003. That was exceeded by merits of sustaining ENCNG when Pied- years — a record in Texas $165,000 in total expenses for 2002 and mont witness Renkow took the stand. and one of the longest $164,000 expended in 2003. Included in “I believe that maintaining streaks in the nation. APEC’s reported revenue was $100,000 [ENCNG] as a stand-alone entity would Little League Heaven: The in government contributions for each of defeat the purpose for which the system Legend of Odie Sweeny, the two years. was constructed…,” Renkow said at the an inspirational biography, APEC’s executive director, John hearing. “…the promotion of economic serves a generous slice of Americana and traditional Hughes, received almost $88,000 in com- development in the eastern part of North values. pensation and benefits for 2003, and was Carolina.” reimbursed for $4,060 in expenses. He West, cross-examining Renkow, was paid $85,000 in salary and benefits questioned his credentials and under- the prior year, with $6,960 in expenses. standing of the natural-gas business. APEC’s 18 directors also received Renkow admitted that he didn’t have Available at PublishAmerica.com, Amazon.com and at major bookstores. compensation: $10,200 in 2003 and any prior knowledge of the ENCNG or August 2005 CAROLINA  North Carolina JOURNAL Possible Conflict Surrounds Proposed Vehicle Research Center

By DON CARRINGTON east Economic Development Partnership Executive Editor — a 16-county, state-funded regional RALEIGH economic development organization ep. Michael Wray, a Northampton headquartered in Edenton — and Wake County Democrat, has been a County resident Richard Dell, the man strong supporter of state fund- who originated the center concept. Ring for an automotive research center According to Northampton Coun- to be located on land in close proxim- ty Economic Development Commission ity to a tract he owns in Northampton Director Gary Brown, Dell is a retired County. IBM employee who has experience with Access to the 610-acre tract under the automotive industry, and who has option by Northampton County for the been an automotive enthusiast through- proposed Advanced Vehicle Research out his life. Center would be via a road that goes Apparent conflicts of interest have through Wray’s tract. Wray and a partner arisen in the past with the Northeast bought the property in 2001, just prior to Partnership. The Daily Advance of Eliza- Lowe’s Home Improvement Company beth City, the Washington Daily News, purchasing a nearby tract for a distribu- and Carolina Journal have documented tion center. situations where the organization’s Wray and his partner granted the president Rick Watson has tried to ob- Rep. Michael Wray, D-Northampton Rep. Lucy Allen, D-Franklin North Carolina Department of Transpor- tain, or has obtained, ownership interest tation a right-of-way to build the access in companies he was recruiting to come road, now named Lowe’s Boulevard, serve on that committee. The vehicle determines that his economic interest to his region. through their property. center was one of the projects listed may affect his judgment, “he shall not The Northeast Partnership hired The proposed House budget in the press take any ac- Dell to do a feasibility study on the released in mid-June contained $7.5 release. Wray tion to further vehicle research center. His feasibility million for the vehicle research center, also sponsored Wray and his partner grant- his economic study, completed in October 2002, con- which would to be located off I-95 north a separate bill interest, and cluded the project was feasible, that “the of Roanoke Rapids. A feasibility study this year that ed the North Carolina De- shall ask that best location for an automotive proving stated that the center would provide called for $15 partment of Transportation he be excused, ground and research center was on automotive testing services at a facility million in tax by the presid- I-95 in Northampton County” (in the that would include a 2.5-mile closed- credits and $15 a right-of-way to build the ing officer in Northeast Partnership’s region), and loop test track, laboratories, garages, million in cash a c c o rd a n c e that the Northeast Partnership “should and office space. for the center access road, now named with the rules be an ongoing partner in the grant and State taxpayers are to provide the over the next of the respec- funding process for the center.” start-up costs, and organizations that two years. Lowe’s Boulevard, through tive body.” A second expenditure approved need testing services will be recruited The 105- their property. R e p . for Wray’s legislative district was to fund the operating costs. acre Wray tract Wray, in his $750,000 towards an entertainment “We are pleased to report that is one of seven first term in complex in Roanoke Rapids. The project several projects in Northampton County available in- the General would involve Randy Parton, brother and Roanoke Rapids have cleared the dustrial sites the North Carolina Depart- Assembly, could not be reached for of country music star Dolly Parton. first hurdle in the budget process by be- ment of Commerce lists in Northampton comment. Both projects still have some ing approved by the Natural Resources County. A non-profit organization was hurdles. They will have to remain in Subcommittee, and we’re hopeful they State law requires a member of the set up in March to manage the vehicle the budget approved by the House, will be funded in the final House budget General Assembly who has an economic center project. then must be included in a final budget bill,” said a June 10 press release from interest in a matter to consider whether The members of the non-profit approved by the Senate, and then must Wray and Rep. Lucy Allen, also a Frank- his judgment will be substantially in- include representatives from Northamp- be in the budget signed by Gov. Mike lin County Democrat, both of whom fluenced by that interest. If a member ton County, the North Carolina North- Easley. CJ Former State Supreme Court Justice Announces Dell Lawsuit By PAUL CHESSER “We are delighted to have Dell claratory judgment against Dell, the cal activities that occur out of state.” It Associate Editor in North Carolina,” Orr said at a press state and local government agencies also contends that North Carolina’s tax RALEIGH conference. “We just want them to be a involved, and the nonprofit economic credits under the Bill Lee Act, and other ormer state Supreme Court Jus- good corporate citizen and pay their fair development agencies that provided sales and use tax breaks, which are con- tice Robert Orr announced June share of taxes.” the incentives. ditioned on machinery and equipment 23 that the organization he leads The complaint filed in Wake It asks that any funds paid to Dell or investment in North Carolina, violate Ffiled a lawsuit against state and local County Superior Court argues that the its agents to be refunded or reimbursed the Commerce Clause. governments over the constitutionality special incentives for Dell, passed in to the state and local governments that The lawsuit also says plaintiffs are of targeted economic incentives offered November by the General Assembly, issued them. deprived of their equal protection rights to Dell Corp. violate the Commerce Clause of the U.S. Orr’s organization, NCICL, says under the U.S. and N.C. Constitutions Orr, who last year left the high Constitution. that “the ultimate gain derived through because of the special tax laws created court to head the newly formed North It also claims that the state and the expenditure of public funds must be for Dell. Carolina Institute for Constitutional local incentives run afoul of the N.C. the public’s, not that of an individual or The state constitution also calls for Law, is challenging special legislation Constitution. private entity.” “uniformity of taxation,” in which “no that awarded Dell $242 million in tax “What we’re primarily concerned The complaint argues that corpo- class of property shall be taxed except credits and other economic subsidies. He about is taking tax revenue and handing rate income and corporate franchise tax by uniform rule….” is also suing the City of Winston-Salem it out to a few large companies,” Orr said. credits given to “major computer manu- Orr said he expects vigorous oppo- and Forsyth County over $37 million “I think the constitution was set up to facturers” by the state violate the Com- sition from the state Attorney General’s they offered to persuade the company keep that from happening.” merce Clause of the U.S. Constitution, Office and Dell’s lawyers. to build its East Coast assembly plant in The lawsuit lists seven plaintiffs because they are offered for business “This can go quickly, or it can go their jurisdiction. from across the state, and seeks a de- activities in state “but not for identi- very, very slowly,” he said. CJ CAROLINA August 2005 JOURNAL North Carolina  Merritt suggests AG consider constitutional issues State Auditor Reports on Slush Funds Controlled by Lawmakers

By PAUL CHESSER last year. Associate Editor Merritt said an assistant to Black RALEIGH notified the department that the speaker n a report released June 30, State had a “desired employee” (Decker), and Auditor Les Merritt explained the that the agency should create a position handling of special discretionary which “should be edited to include any Imonies controlled by the leaders of the specific qualifications of the desired General Assembly, and suggested that employee.” Language describing the Attorney General Roy Cooper examine position was later reworded “to tailor legal and constitutional issues related to the position to Mr. Decker.” The position the special funds. paid $45,000 per year, but is not funded Merritt also raised questions about in the budget that is currently being ne- Auditor Les Merritt Sen. Marc Basnight Speaker Jim Black Rep. Richard Morgan separation of powers between the legis- gotiated by the General Assembly. lative and executive branches, as it per- Management, and Cultural Resources. state favored by the three legislative Basnight, Black, and Morgan each tains to control of the reserve funds. In the report, the auditor did not leaders and those who supported them were given an opportunity to respond State Senate President Pro Tem address $10 million in funds at the in their posts. to Merritt’s report. Basnight expressed Marc Basnight, D-Dare); House Speaker Department of Transportation that had “The General Assembly leader- regret that “the budget process did Jim Black, D-Mecklenburg; and former been split among Basnight, Black, and ship approved these requests before not work the way it should have,” but Cospeaker Richard Morgan, R-Moore, Morgan. forwarding them to the departments said every project that was funded and divided up to $24 million in various state Merritt also directed Cooper’s for processing,” Merritt said in the audit recommended by the Senate was “truly agencies overseen by Gov. Mike Easley, attention to a North Carolina law that report. deserving.” to be spent according to the three legis- prohibits the General Assembly from Merritt also provided a chronologi- Black expressed no regret, and lative leaders’ wishes. The funds were funding new expenditures that it has cal account of one allocation directed by said he did not “agree or disagree with” allocated for fiscal 2004 and 2005. previously considered and rejected. Mer- Black, in which he requested that the Merritt’s findings. He also defended Merritt examined $6.5 million that ritt identified 11 projects that had been Cultural Resources Department hire the worthiness of the projects. Morgan was to be directed by Basnight through voted down in previous budget bills, former State Rep. Michael Decker. The merely thanked Merritt for the opportu- the Department of Cultural Resources, excluded by name in the final version Forsyth County Republican, who briefly nity to review the report. CJ and $7.5 million split between Black of the budget, yet funded through the joined the Democratic Party in 2003 and and Morgan and disbursed through special reserve funds. supported Black’s co-speakership with the Department of Health and Human The monies were used to fund Morgan, sought a state government job Associate publisher Don Carrington Services, the Office of State Budget and various nonprofit organizations in the after losing a Republican primary race contributed to this report. FAA Disputes GTP Funding

By DON CARRINGTON airport and follows all the agreements Executive Editor that are there.” RALEIGH When asked about the nonaviation Federal Aviation Administration activities going on at the airport, Seritt official disputed a recentTriangle said, “We consider that to be economic www.NCSPIN.com Business Journal story about the development issues and we don’t get AGlobal TransPark that said the General into that.” Seritt also said he didn’t recall Assembly must continue providing $1.6 any North Carolina legislators or legisla- North Carolina’s most-watched political talk show million in annual funding or pay back tive staff asking him about the issue. appears on television stations across the state $21.6 million in federal grants. The story “I am delighted you told me,” Rand attributed the legislature’s position to said to CJ when told about the FAA’s comments made by Senate Majority position contradicting his statements to But what if you miss it? Leader Tony Rand, D-Cumberland. the Business Journal. He did not provide “Rand says lawmakers concluded any names when asked who specifically Now NC SPIN — featuring Carolina Journal’s John Hood, they had little choice but to keep the told him that grants would have to be operation going. Pulling the plug now, repaid. host Tom Campbell, and commentators from across the political spectrum — he says, would have required the state Rep. Nelson Cole, D-Rockingham, is now rebroadcast weekly on many fine radio stations across North Carolina: to pony up $21.6 million to repay the chairman of the House appropriations Federal Aviation Administration for subcommittee on transportation said, Asheville WZNN AM 1350 Sundays 9:30am runway development grants awarded “We have been led to believe that con- Durham WDNC AM 620 Sundays 8am to the GTP,” the news story said. cerning any monies given by the feds, if Gastonia/Charlotte WZRH AM 960 Saturdays 1pm Scott Seritt, manager of the FAA we shut down the GTP — we could be Goldsboro WGBR AM 1150 Sundays 4pm Airports District Office in Atlanta, told obligated. I have not researched it, but Greenville WNCT AM 1070 Wednesdays 6:30pm Carolina Journal that was not the case. I will now be looking into it.” Kings Mountain WKMT AM 1220 Saturdays 8:30am The FAA provided the GTP the money Sen. Clark Jenkins, D-Edgecombe, Laurinburg WLLC AM 1300 Sundays 10am to extend the runway and make other chairman of the Senate Appropria- Monroe/Charlotte WXNC AM 1060 Sunday 7:30am airport improvements. “As long as the tion Committee on the Department of Outer Banks WYND FM 97.1 Sundays 8am airport stays open to the public we re- Transportation, told CJ, “I have heard Raleigh WDNZ AM 570 Sundays 7am, 9am ally have no issue as to who the spon- from DOT that you had to pay it back.” Rocky Mount WEED AM 1390 Mondays 9:30am sor is,” he said. “Originally it was the When asked who told him, he did not Salisbury WSTP AM 1490 Saturdays 11am Lenoir County and the City of Kinston. offer any names. Smithfield WMPM AM 1270 Sundays 5pm Then it became the TransPark and that He said he had not talked with the was fine. If it goes back to the city or it FAA and did not plan to. He said his Wilmington WAAV AM 980 Saturdays 12:30 pm goes back to the county, or to the state, support for the GTP is very strong. “As it really doesn’t matter to us as long long as I am a state senator I am going to More stations are joining the network soon. Visit www.NCSPIN.com for updates. as one of those entities maintains the support the GTP,” he said. CJ August 2005 CAROLINA  Washington JOURNAL

NC Delegation Watch The ‘Wall of Separation”

Coble gets funds for market Country Reacts to Ten Commandments Rulings

The plan to create a modern By MAXIMILIAN LONGLEY bus terminal system for downtown Contributing Editor High Point to serve its furniture DURHAM market moved a step closer to real- he U. S. Supreme Court finished ity, U.S. Rep. Howard Coble (R-6th) its recent term with two landmark announced at the end of June. Coble church-state decisions, both of said that the U.S. Department of Twhich involved the display of the Ten Transportation allocated $2,044,570 Commandments on public property. In for the project. a case from Kentucky (McCreary County “As everyone knows, it is v. ACLU), the court ruled against several important to move the thousands Kentucky counties, which wished to of visitors in downtown High Point display the Commandments. The al- efficiently and smoothly during the leged religious motivation was enough furniture market,” Coble said. to make such a display invalid. In a case “This $2 million DOT grant is from Texas (Van Order v. Perry), the court an important component in creat- approved the display of the Command- ing a viable transportation system ments on the state Capitol grounds, which will ensure that the Interna- although the justices in the majority tional Home Furnishings Market couldn’t agree on a single rationale. Both remains in High Point for years to cases prompted passionate dissents. Ten Commandments supporters gather at a rally in Raleigh in October 2003 come.” Members of North Carolina’s Some members of the N.C. con- and every one of the Ten Command- The plan is to construct a congressional delegation had mixed gressional delegation have endorsed ments being written into the laws of covered terminal for the loading reactions to the rulings. Scholars also proposals for challenging the Supreme the various colonies.” Dreisbach cites and unloading of bus passengers. offered their views of public display of Court’s church-state jurisprudence. Dale’s Laws, a code adopted for the early The funds will be used for ground the Commandments and the role of the Coble; Jones; Foxx; Rep. Mike McIntyre, 17th-century Jamestown settlement safety improvements and electronic Commandments in the development of D-7th; and Rep. Robin Hayes, R-8th, in Virginia. The laws required officers signage, along with the design phase American law. are among cosponsors of a proposed commanding in Jamestown to attend for the covering. Another level of U.S. Rep. Howard Coble, R-6th, “religious freedom” amendment to religious services and to encourage other funding will be used for the actual said he is “not offended at all” by the the U. S. Constitution. The proposal, settlers to do so. construction of the covering, Coble display of the Commandments in public House Joint Resolution 57, says that As another example of the influ- said. places. Such displays should be permit- “[t]he people retain the right to pray ence of Christianity and the Command- If future funding can be ob- ted, he said. and to recognize their religious beliefs, ments, Dreisbach mentions the common tained, a second phase is to construct U.S. Rep. Walter Jones, R-3rd, said heritage, and traditions on public prop- law, which America inherited from a terminal and obtain a parking lot the court has sent a “mixed signal. He erty, including schools.” The preamble England. The Commandments were for the western expansion of the said, ”The Constitution was written by to the bill specifically refers to the Ten “at the very . . . source” of the written terminal system. men who acknowledged the existence Commandments. common law, Dreisbach said. Thomas Coble had requested $6 mil- of a God, but the extreme left wing of William Van Alstyne, a law profes- Jefferson was among to first to deny that lion for High Point in the current American politics is “trying to under- sor at the College of William and Mary the common law had Christian origins, highway spending bill now in a mine the whole Judeo-Christian prin- in Williamsburg, Va. (where he moved but his posthumously published argu- conference between the House and ciples that I think are the foundation of from Duke), has written a widely used ments on that subject were “soundly Senate. America.” textbook on the First Amendment. He and swiftly repudiated by the leading U.S. Rep. Virginia Foxx, R-5th, said says the Commandments “may be a re- legal minds of his day.” Jones wants HUD change she thinks the Supreme Court has been minder” of some sources of law, but the James Hutson, head of the Manu- “issuing some really weird decisions relation between the Commandments script Department at the Library of Third District Congressman recently,” including the church-state and American law is a “mixed bag.” The Congress and also a historian with a Walter Jones, R-3rd co-sponsored decisions. Foxx said that the courts are American colonies didn’t just enforce research interest in the 18th century, legislation introduced by Rep. Jim “trying to rewrite the Constitution out- the Commandments against regular helped prepare a 1998 symposium at Ryun of Kansas to improve housing side their constitutional authority,” and crimes such as murder and theft, but the Library of Congress on “Religion eligibility for the military. that it may be necessary to “reign that also the Commandments against vio- and the Founding of the American Re- The bill calls for a change to in.” Foxx said that it might be necessary lating the Sabbath and misusing God’s public.” An anthology of papers mostly the existing Department of Hous- for Congress to submit an amendment name. These “sectarian” Command- prepared for the symposium was pub- ing and Urban Development Act modifying the lifetime terms of federal ments formed the basis of oppressive lished in 2000. Hutson said American to exclude amounts received as a judges. laws, which taxed the people to support colonial laws were “heavily influenced military basic housing allowance U.S. Rep. David Price, D-4th, found religion, punished profanity and blas- by the Bible,” although it’s disputable from consideration as income for merit in the ruling. “The Court opted phemy, and generally discriminated whether Christianity was the foundation purposes of determining eligibility for a pragmatic approach which both against “those not favored within par- of English common law. New England for federally assisted low-income respects the historical importance of ticular Christian denominations.” The colonies incorporated the Old Testament housing programs. religious monuments and attempts to public posting of the Commandments in their early laws. “It’s important that we look delineate when such displays violate could invoke “a ‘history’ which in sig- A metaphor employed by the after the interests of our men and the constitutional prohibition on gov- nificant measure was harsh, theocratic, Supreme Court, that the First Amend- women in uniform, who are tire- ernment establishment of religion,” he and, indeed, even threatening.” ment’s Establishment Clause erects a less in their efforts to safeguard the said in an email. “I believe the decision Daniel Dreisbach, professor of “wall of separation between church and well-being of our nation,” Jones said is defensible, but I do not expect it to Justice, Law and Society at American state,” comes from a letter written by in a press release. “This legislation prevent further debate and litigation.” University in Washington, D. C., is the President Jefferson in 1802. Hutson says will alleviate housing shortages Ken Willis, communications direc- author of the 2002 book Thomas Jefferson that Jefferson’s “wall” metaphor “wasn’t around many military bases and tor for U.S. Rep. G. K. Butterfield, D-1st, and the Wall of Separation Between Church accepted by the public at large,” or by help more military personnel, spe- refused to discuss the decision. Butter- and State. Dreisbach said that Christian- lawyers, at the time Jefferson used it. cifically those ranked E-5 and below, field’s office is “focused on what we [in ity, the Bible, and the Commandments Even while Jefferson was proclaim- in qualifying for low income hous- Congress] do,” not on issues which the have had “a significant impact on the ing the wall of separation, Hutson said, Supreme Court is dealing with, Willis ing.” CJ development of American law.” religious services were being conducted said. The Commandments decisions are During the Colonial era, Dreisbach in the Treasury Department building and in the latter category, he said. said, there are “specific examples of each the House chamber in Washington. CJ CAROLINA August 2005 JOURNAL CJ Interview  Craig Shirley: Reagan’s Revolution Started in North Carolina

By CAROLINA JOURNAL STAFF he got in the race in November of ’75, RALEIGH he was seen as a curiosity figure, but onald Reagan’s two-term presi- the national media didn’t know what dency during the 1980s is often really to make of him, because quite called the Reagan Revolution. It frankly they didn’t know much about Ris so named for the changes that he spear- him. They were all from the East Coast. headed domestically such as reforming He was from the West Coast. And this the federal income tax code, and interna- was at a time before fax machines, the tionally such as victory over the Soviet internet, cable television, talk radio, spe- Union in the Cold War. cialty publications. And the only way to But few Americans realize that the communicate between, say Washington Reagan Revolution began years before and California, was either by mail or he took office, in his 1976 campaign, long distance phone call. So some of and that North Carolina played a key role in getting that revolution off the the political reporters knew Reagan and ground. Craig Shirley, the author of had covered his speeches. But even for Reagan’s Revolution: The Untold Story of them he was a bit of a curiosity figure, the Campaign that Started it All, recently “Reagan’s Revolution” author Craig Shirley speaking at a Locke Headliner Luncheon not somebody to be taken seriously. visited Raleigh and was interviewed by John Locke Foundation president John cal sphere by the name of John Sears. He House by going after Alger Hiss who Hood: So Reagan comes into the race Hood about his new book. had been recruited by the Californians to was a Communist spy, by his aggressive and Ford wins a series of primaries, taking work with Reagan because he was from pursuit of the Rosenbergs who had sold us to the dramatic race in North Carolina. Hood: In your title and subtitle, the the East. He knew the national media, nuclear secrets to the Soviets. So he had Give us a sense of what happened there. untold story of the campaign that started which were, as he called them, the new earned his anti-Communist spurs. He it all, I take it that you are not referring political powers and political bosses in had a relationship with the Right. But Shirley: Ford won the first five to 1980. politics. And he had worked in the Nixon in fact, Richard Nixon was a political primaries. By the time, the North Caro- campaign in ’68 and was highly regarded opportunist. He really didn’t have any lina primary in 1976, Reagan’s campaign Shirley: No, it is about the 1976 inside the Republican Party as someone ideology or politics whatsoever. He was is $2 million in debt. His charter plane campaign. Over the years there have who knew how to craft a message and a Republican because in California at has been taken away, he is flying by been so many books written about win a campaign. And he sat down with that time it was good to be a Republican. commercial plane like the rest of us. Ronald Reagan, about his days in the Reagans and explained how they As soon as he became president he was Republican Party officials are calling on Hollywood, about his faith, about his could take on Gerald Ford and win the always interested in currying the favor him to get out of the race. governorship and about his presidency, nomination. That probably convinced of the editorial writers at The New York His staffers were being let go or and then various other permutations. Reagan more than anything else that he Times and The Washington Post. working for no pay. His campaign was But there was never a book devoted could win the race. in horrible condition. And lo and behold to what he and Nancy Reagan always Hood: In private he would rage he wins this astonishing victory over said was the most important campaign, Hood: Why did he want to run? against the media establishment—the liberal Gerald Ford. It was an upset that just which was his try for the presidency in establishment. But in public he attempted astonished the political… ’76, which he ultimately failed at the Shirley: He was a conservative. He to satiate it. convention to get against the incumbent was evolving as a conservative and was Gerald Ford. thinking on beliefs in many areas, but Shirley: Absolutely. He basically Hood: Here in North Carolina? he was always within the framework of surrenders in Southeast Asia to the Com- Hood: Let’s set the stage for that in a freedom and conservativism. He was munists. He establishes a détente with Shirley: Here in North Carolina. moment. We should establish right off the dismayed about Richard Nixon, but of the Soviets which was basically negotiat- bat that you’re not an entirely disinterested course Richard Nixon had such a hold ing the American nuclear capability into Hood: And I gather that Jesse Helms observer when it comes to looking at Reagan on the Republican Party that there was an ever weaker and weaker position. and his organization was involved. and the effect that he had on the Republican no way anybody could wrest the nomi- Wage and price controls… Party. You’ve been involved in politics for a nation from him in ’72. Shirley: Jesse Helms and the Con- couple of decades. By ’76, however, of course Nixon Hood: Environmental Protection gressional Club and Tom Ellis and Terry is gone from the scene, Gerald Ford is Agency. Boyle and Carter Wrenn all played huge Shirley: My whole life essen- president, and Ford is not only continu- and crucial roles in helping Reagan win tially. Even going back to 1964, I deliv- ing Nixon’s liberal policies, he also, now Shirley: The Environmental Pro- here in North Carolina in 1976. North ered brochures door to door for Barry as Reagan’s name floats up as a potential tection Agency. Liberal justices, Harry Carolina is the lynchpin. If he doesn’t Goldwater. It’s been pretty much of a candidate, aims a barrage of personal Blackmon, who wrote Roe v. Wade, win in North Carolina, then it is over. lifetime… insults that come from the Oval Office was a Nixon appointee to the Supreme He would have had to fold his tent and the Ford White House, aimed at Court. Liberals in his cabinet, liberals and would have made a gracious exit Hood: Have you worked on any cam- Ronald Reagan. to the bench, it goes on and on and on speech and gone back to the ranch in paigns that were successful? and on. Santa Barbara and would have faded Hood: I should hasten to say though, into political oblivion. Shirley: Yes. In 1980, 1984, in addition to that, your first point about Hood: So Reagan, as a two term gover- 1988. Reagan’s conservativism and his reaction nor of California, has left office not too long Hood: The fact that he ran as strong as to liberal policies of Nixon and Ford, a lot of before, is looking at this and saying, “I think he did, powered by the surprise North Caro- Hood: Just kidding. So set the stage people may not entirely compute that. What I should run.” How did he enter the race? for us regarding the 1976 run by Ronald are we talking about when we say Richard Was he considered an underdog? Was he even lina in 1976, one could argue, quite clearly Reagan, recently the governor of Califor- Nixon and Gerald Ford were enacting liberal with Ford? Was he a frontrunner? Give us led to his presidential race succeeding in 1980 nia. Why did he enter this race against the policies? Give us examples. a sense of the early tenor of the race. and the Reagan years that followed. incumbent president Gerald Ford, and what did he think his chances were? Shirley: Everything. From the time Shirley: It’s interesting because Shirley: No doubt about it. With- he took office… You know conservatives it really depended on which day you out North Carolina he doesn’t go on to Shirley: As far as his chances, he were always nervous about Richard were talking to the campaigns or talking Kansas City to lose very narrowly. And if probably thought that he had maybe a Nixon. He had established his bona fides to Ford or talking to the media because he doesn’t go to Kansas City to lose very 50/50 chance of getting the nomination. as a member of the House Un-American one day Reagan would be up, the next narrowly, he doesn’t run in 1980. So the He had a new person come into his politi- Activities Committee when he was in the day Ford would be up. I think that when lynchpin is North Carolina. CJ August 2005 CAROLINA  Education JOURNAL

State School Briefs Educational issues from around N.C. Ohio expands vouchers Embezzlement Cases Prompt Push For Audit Ohio is more than tripling the By DONNA MARTINEZ said bristled at parents who expected to size of its school voucher program, Associate Editor be included. Board members seemed to making it the nation’s largest since RALEIGH “I feel we cannot afford realize the process was flawed, Guebert the practice of using public money he job of the public school system said. “I believe board members were for private-school tuition was found not to do [a comprehen- is to teach children, but recent embarrassed and thought, ‘Let’s never constitutional three years ago, The events around the state illustrate do this kind of thing again.’” Washington Post reports. sive audit].” Tthat parents, community groups, and The board’s decision didn’t end The tuition aid, which has school board members are the ones — Ron Margiotta the disagreement. A few teachers char- been available only in Cleveland who get the real education when they acterized the decision as “a dangerous since 1996, will allow as many as challenge the power, policies, and con- Wake County Board precedent,” said Gloria Miller, director 14,000 additional students statewide ventional wisdom that surround an of media services for CMS. “They believe to leave schools that persistently education monopoly. in the freedom to read, the right to read,” fail academic tests and move to Just ask Ron Margiotta. He thought a resolution calling for a full audit, going she said of reaction to a memo that out- private schools, beginning in the his years as a small-business owner back five years. “I think the taxpayers of lined the decision, and were concerned fall of 2006. would be an asset when he was elected Wake County are as angry over this as that parents were censoring material. The state’s $51 billion budget to the Wake County Board of Education I’ve seen them over anything,” said Tru- Braun scoffed at that accusation. that Gov. Bob Taft signed in early in 2003. He had learned to respond to man Newberry, a WCTA vice president. “It’s not an issue of censorship, but July includes funding for 14,000 problems quickly, or go out of business. “It’s a further deterioration of confidence discretion,” he said, noting that if CMS children. The state will pay $4,250 When a financial bombshell rocked the in the school system.” officials use that logic, they are engaging for students in kindergarten through Wake County Public School System Margiotta said he thinks the scan- in censorship every time an employee ex- eighth grade and $5,000 for high in August 2004, his no-nonsense ap- dals contributed to the Wake County cludes a book from a library. “Anybody school students. proach pitted him against fellow board commissioners’ decision to fund only who makes a choice at CMS is making Supporters of school choice members. half of the board’s request for a $29.4 a choice for everybody.” have worked to set up and expand Margiotta’s concerns began when million budget increase. He fears more voucher programs since 2002, when school system staff uncovered an alleged financial ramifications if the specter Durham’s voting scheme the U.S. Supreme Court ruled that It was the makeup of the Durham embezzlement scheme in its transpor- of fraud taints voters’ willingness to Cleveland’s program, which in- County School Board, not a decision or tation department. Several employees approve an anticipated school bond cludes religious schools, does not policy, that entangled Charlotte Woods allegedly collaborated with employees in 2006. violate the separation of church in a bitter battle this year to change of a vendor to embezzle school money On July 12, Margiotta’s persis- and state. how the board is elected. Her group, that had been earmarked to buy bus tence appeared to have paid off. Board Concerned Citizens for Accountable parts. The three-year ripoff is estimated members agreed to develop a request Government, spearheaded a petition to have netted the ring as much as $2 for proposals from outside auditors to Fines awarded to schools drive to allow all Durham County voters million. Wake County District Attorney conduct a system review. Parameters of to vote for all board members, replacing A N.C. Supreme Court ruling Colon Willoughby is investigating the the review were not available. the current system, in which voters cast July 15 potentially takes hundreds scheme and has predicted that jail time a ballot only for their district’s member of millions of dollars worth of fines will be served. Bureaucratic patience-tester Julie Guebert and Peter Braun plus one at-large member. collected by the state in the past The transportation debacle was didn’t have a board member to champion That effort drew charges of racism, decade and gives that amount to followed in June by revelations of a their cause last fall when they challenged which Woods, who is white, vehemently the public schools. second possible embezzlement. This Charlotte-Mecklenburg Schools over the denied. The goal, she said, was to elect The ruling could lead to a one- time, a Garner High School cafeteria age appropriateness of Maniac Magee, representatives who want healthy dis- time windfall for the schools as well manager reportedly confessed to steal- a book assigned to some third-graders agreement, not continual name-calling. as an ongoing boost. About 28,000 ing $217,000 over four years. Margiotta at the school their children attend. The Durham’s school board meetings are new students are expected statewide became alarmed and proposed a full, award-winning novel touches on death notorious for sharp, often ugly dissen- this fall, but school districts face a independent audit of the school system’s and gangs, and contains racially tinged sion between white members and black slight cut in the state budget being books and financial policies. language. A dispute they believe should members. The meetings routinely make negotiated by lawmakers. Board members rejected his pro- have been handled simply, quickly de- headlines for what some see as shenani- “We’re conceivably looking posal. Margiotta said he was “shocked” teriorated into a bureaucratic patience- gans, but others believe is the only way at $500 million,” said Ed Dunlap, by their reaction. The other board mem- tester. After five months, the parents for all factions of a divided community executive director of the N.C. School bers said that an audit need only look at were granted 10 minutes to plead their to be heard. Boards Association, one of the new procedures implemented following case before three board members. Although the petition drive failed, parties that sued on behalf of the the discovery of the embezzlement in The parents were victorious, in Woods vows to continue speaking for schools. “We’re very pleased.” the transportation department. One part. The three-member panel agreed residents, including blacks, who tell her The court ruled that the state board member said a comprehensive that the book was inappropriate for K-3 the board’s behavior is embarrassing and constitution requires civil fines such audit would be too costly. Margiotta said students, but that fourth- and fifth-grade is hurting Durham. “Right now we are as some parking tickets, late fees other members thought that an internal teachers may assign Maniac Magee as selling our children out,” she said. “They on taxes, and other penalties to be audit, conducted each year, would be long as parents are notified and able to are seeing this inappropriate behavior funneled into the public schools. adequate. opt out. Guebert recalled the frustration on the school board and I fear they will Criminal fines of about $40 million “It’s been audited every year of dealing with bureaucrats whom she emulate it.” CJ a year already go to the schools, but and we’ve never found any of these until now courts hadn’t established problems, so how fine could it be?” he whether the civil penalties must as asked. “I feel we cannot afford not to well. do [a comprehensive audit]. We have Want to be on our mailing list! The decision could squeeze a big cloud over our heads…with this state agencies ranging from schools fraud.” Go to JohnLocke.org and sign up for a Key Account. With in the UNC system to the state’s Because some of the alleged em- a Key Account you can receive your copy of Carolina Journal tax department to the Department bezzlement took place on his watch, of Transportation. Those agencies Margiotta pushed forward. He gave in the mail each month and can also receive daily and weekly are among the ones that have been interviews and spoke with community emails of events and news from Carolina Journal Online. For receiving money from the fines for groups, including the Wake County years. CJ Taxpayers Association. In late June, Mar- more info call us at (919)828-3867 or 1-866-JLF-INFO. giotta spoke to a standing-room-only meeting of the association. WCTA passed CAROLINA August 2005 JOURNAL Education  Charter School Proposals Commentary Languishing in Legislature NEA, Get Out of the Way! By KAREN WELSH n 2004 Secretary of Education Rod “compassion and respect for all liv- Contributing Editor Paige lobbed a hand grenade at the ing things” in an animal vivisection RALEIGH nation’s largest union, calling the unit also related to humans in the I2.7 million-member National Educa- family-planning section. An attempt ey charter school legislation, designed to provide innovative tion Association “a terrorist organiza- to amend the union’s sexual assault learning opportunities for chil- tion.” While Paige’s word choice was policy with the statement that “the Kdren at all academic levels, remains at a certainly inflammatory (and indeed association deplores the advocacy of standstill in the General Assembly. had many union supporters adult/minor sexual con- Senate Bill 490, the Charter Schools crying foul), it neverthe- tact” was also blocked. Managed Growth Act, authored by Sen. less focused attention on a However, the NEA Larry Shaw, D-Cumberland and Sen. Ed- powerful and undisciplined approved a proposal to ward Goodall, R-Mecklenburg, was pro- organization that is often develop a “comprehen- posed in hopes of removing the state’s out of step with American sive strategy” to deal cap of 100 charter schools. However, the teachers and parents. with parents and others bill allowing 10 new charter schools to Bigger than the who do not want curri- start up each year hasn’t been brought Teamsters, the NEA jeal- cula, policies, and prac- to the Senate floor for a vote during the ously guards its hold on tices in public schools 2005 session. American schools, squash- that embrace alternative On the contrary, Goodall said ing any reform linked to sexual behavior — a militant opposition to the measure has merit pay or school choice. Lindalyn big victory for the Gay, kept it from being reviewed by the ap- “Charter school supporters are ad- Using millions of dollars Kakadelis Lesbian, Bisexual and propriate committees. “Jeanne Lucas vocating that the legislature increase the collected through teacher Transgender Caucus. [D-Durham] said she did not have a number of charter schools allowed from dues, the NEA publishes When it comes to release by the education committee to the current cap of 100, but the center’s re- and distributes copious amounts money, the NEA just wants more, have more charter schools.” he said. “It search indicates that such a move would of misinformation to the public. In more, more. Some convention was not heard in committee.” be premature,” said Mike McLaughlin, addition, the NEA flexes a powerful speakers lamented “devastating In an editorial on the pending editor of the center’s newspaper. “Too political muscle, lining the pock- cuts” to their state’s education fund- bill, Lindalyn Kakadelis, director of many of the schools are mediocre-to- ets of candidates who support its ing, claiming they now had “third the North Carolina Educational Alli- poor academic performers, too many agenda, and pumping millions of world budgets” — a laughable ance, labeled legislators “gatekeepers are in fiscal disarray, and too many are dollars into defeating ballot initia- statement since total K-12 educa- of mediocrity.” segregated by race. That’s not what the tives that threaten its survival. tion expenditures approach almost “This legislation, proposing to legislature hoped for when it began the Those who doubt the scope $500 billion. In fact, the U.S. public raise the current charter school cap of charter school experiment.” and influence of the NEA ought to education system spends as much 100 schools by 10 schools a year, would The report is not true and serves to read journalist Peter Brimelow’s as the total combined economies of infuse our state’s charter school move- protect the status quo of public schools, 2003 book, The Worm in the Apple: 37 African countries, according to ment with some much-needed energy Goodall said. Charter schools were never How the Teacher Unions Are Destroy- the Education Intelligence Agency. and growth,” Kakadelis wrote. “This meant to be cookie-cutter molds of the ing American Education. Brimelow, a Are American teachers fed total lethargy toward charter schools public school system and cannot be well-informed critic since his much- up yet? Only time will tell. Inter- is particularly surprising as circum- judged by the same standards, he said. read Forbes magazine expose of estingly, the convention attracted stances this year warrant an increase Often, he said, charter schools are the the NEA in 1993, details the NEA’s only 7,945 delegates this year — its in the cap.” only way out for at-risk students and history, dubious fund-raising tactics lowest attendance in eight years. The children aren’t the only ones they need to be judged on their own and heavy-handed political machi- The North Carolina Association of at risk. Goodall said North Carolina academic merits, not on a test. nations, and proposes a “24-point Educators, an NEA affiliate, sent stands to lose almost $19 million in fed- “The essence of the charter school wish list” to end the organization’s only eight delegates — no sur- eral education grants if the legislature is they are all different,” he said. “They stranglehold on American educa- prise since the state’s membership doesn’t raise the cap. He said he thinks can target a student or an educational tion. declined by 1.1 percent in 2003, the majority of political naysayers are plan. Some want every school to look Now, two years after the and 3.1 percent in 2004. However, a standing idly by to see if the grant comes alike, but that can’t happen. Targeting release of his book, Brimelow’s more strategic, aggressive member- through before seriously considering the at-risk children cannot be viewed as critique is still on target. On July 6, ship drive is likely soon, and not bill. “I think it would be embarrassing failure,” he said. the NEA concluded its 143rd annual just for teachers. This is an organiza- for the Democratic leadership,” Goodall There are others who agree. convention in Los Angeles, raising tion that also vigorously pursues said, “if they turn down the bill on the During a media roundtable on the $1.3 million in just four days from Education Support Professionals, cap and they get the grant.” Black Issues Forum on UNC-TV, Cash 8,000 members through its Political including teacher aides, bus drivers, Goodall said the handling of the Michaels, editor of the Carolinian, said Action Committee. NEA President and cafeteria workers, a group that bill is another case where the Democratic the new schools are providing a sense Reg Weaver (re-elected for another comprised about half the union’s leadership offered lip service to educa- of community to many black families three years), gave the keynote ad- national growth last year. tion innovation and choice, but didn’t who have struggled with the public dress, boasting about his organi- Terrorist organization or not, deliver. “Democrats face pressure from school system. zation’s embrace of mediocrity: “If one thing is clear: the NEA is single- education special-interest groups,” he “I would suggest to you that the there are those who choose to call handedly dismantling public educa- said. “Until there is pressure from the charter school movement is something us the keepers of the status quo, so tion. It’s time parents and taxpay- public about education I don’t think that is very, very strong in the African- be it. The status quo is the public ers cut short the NEA’s reign over things will change.” American community because a lot black in public education, and we are the schools by insisting on free-market The lack of commitment by the parents want to take back their children’s keepers!” principles such as competition and hesitant senators could be a knee-jerk re- education,” he said. The NEA continues to promote choice. American education will be action to a recent study conducted by the Liberal politicians lack the forti- an agenda that is at odds with the the better for it. CJ North Carolina Center for Public Policy tude to make any real changes in the views of many American parents. Research. The center recommended that public school system, Goodall said. They According to a Washington Times the state maintain its original cap of 100 are looking out for personal-interest article July 8, delegates blocked a charter schools until five years of data groups, placating those in power, instead proposal to put the NEA on record Lindalyn Kakadelis is Director of could be accumulated on the newest of serving for the needs of the taxpay- that its longstanding policy of the North Carolina Education Alliance. educational experiment. ers. CJ August 2005 CAROLINA 10 Education JOURNAL

School Reform Notes Victory Junction Gang Camp

Choices wanted in Durham ‘The King’ Discusses Life, Family, Helping Kids Durham residents are clamor- By PAIGE HOLLAND HAMP ing for more magnet schools focus- Contributing Editor ing on math, science and technology, RALEIGH accelerated learning, visual and ichard Petty truly is “the king.” performing arts, and gifted and While his racing prowess earned talented programs, according to the him the title, his humble and results of a “choice schools” survey Rgenerous nature ensures he keeps it. released July 6, The Herald-Sun of Recently, I was blessed to spend an hour Durham reports. with Petty to discuss his passions in life Almost 3,000 Durham Public . . . family, racing, and Victory Junction Schools parents and employees Gang Camp. completed the survey, which asked Adorned in his signature hat and them to indicate what types of sunglasses, Richard greeted me as he special programs Durham schools would a friend without an ounce of should adopt. The input from the the pretension you find in many sports survey will help administrators celebrities today. Sitting in his office, create a new plan for school choice adorned with racing trophies, elephants, options across the district. and Civil War artwork, it quickly became Officials are considering add- clear that Petty loves North Carolina and ing a variety of programs to the nine is proud of his Southern heritage. magnet schools and five year-round “I think people from the South schools currently offered. Options understand the importance of family and include expanding current magnet community,” Petty said. “We know that programs, adding new magnets, life is about giving back not just about linking elementary and second- what’s in it for us.” And giving back ary magnet programs, expanding is as much a part of the Petty tradition year-round options and creating as racing. additional high schools that em- For decades, the Pettys have com- phasize more personalized learning mitted time and money to help children environments. who are sick or disadvantaged. When NASCAR racing legend Richard Petty always has time for children (CJ photo) “Choice and reform are two asked where the commitment came from key words in education right now,” Richard said, “We have four children and support.” A replica of Adam’s No. 45 race car, said Chris Bennett, the school sys- 12 grandchildren who were healthy and The mission of Victory Junction is 20 times the original size, is at the center tem’s executive director for choice had all the advantages in life. I am so to enrich the lives of children who suffer of the camp, which has 32 buildings. programs. Bennett said administra- grateful for that and want to reach out chronic or life-threatening illnesses by Our first stop was Jesse’s Horsepower tors will present the Durham school and help children and families who face creating camping experiences that are Garage, a specially designed riding board with final recommendations struggles that I can’t imagine.” memorable, exciting, fun, empowering, stable. in September. In 2004, the Petty family opened the physically safe, and medically sound. Then we went to the Catch, Kiss camp for critically ill children in honor The children who attend Victory Junc- and Release Marina, where anglers are Charter sues over funding of Adam Petty, Petty’s grandson, who tion have such severe limitations, such as guaranteed to catch fish, followed by a died in a car crash in May 2000 at the age cancer, epilepsy, spina bifida, and sickle quick stop at the Fab Shop, where camp- Union Academy, Union Coun- of 19. Many who hear about the camp cell anemia, that they would never be ers can paint their hair “temporary” ty’s only charter school, on July 15 assume the Pettys created the concept able to attend a regular summer camp. colors or get their nails done. Around filed a lawsuit against Union County after they lost Adam, but actually the Victory Junction provides them a place every turn there was more fun . . . a Public Schools over concerns that idea of the camp and its design concept where they not only get to have fun but waterpark, climbing tower, theater, and the charter school might not be get- came from Adam. Adam had visited they don’t have to feel different. gym, among many other highlights. ting all the funding it should, the children in hospitals for years during his Camp is open year-round with There are also special theme parties, Enquirer-Journal of Union County father’s annual Kyle Petty Charity Ride. full-week activities in the summer and such as NASCAR night, Olympics, reports. After a visit to the Camp Boggy Creek weekend activities the remainder of the and movie night. Also on campus to The question over how much in Florida, Adam sold his family on the year. No child or family pays to attend keep campers safe is the Body Shop, a funding should be directed to the idea and began looking for land in North camp. Camp weeks are scheduled based full-service hospital, which has a “no charter school came up with general Carolina to build the camp. on the ailment to ensure the highest white-coat policy” for doctors. statute 115C-238.29H, which states, “Adam just had a heart for kids,” quality medical care can be provided. Many of the young campers have “The amount transferred under this Richard said. “After he died everything Each week a team of doctors and nurses never been away from home and are in subsection that consists of revenue went on hold for a couple years, but then specializing in the ailment volunteer their parents’ care continually because derived from supplemental taxes we thought if Adam was still with us he their time to give the children a chance of their health needs. “When campers shall be transferred only to a charter would have this camp built by now.” to have fun. arrive on Sunday, often they are very school located in the tax district for That was all the incentive they Thanks to the publicity the camp hesitant and sit alone, not interacting which these taxes are levied and in needed. Richard and his wife Lynda has received, recruiting volunteers has much,” Richard said, “but that only lasts which the student resides.” donated 75 acres of land adjacent to his been easy. If anyone wants to volunteer about a day and when it is time to go Because the school is located in home in Randleman, N.C. Meanwhile, camp leaders will find a job for you. “If home they are begging to stay longer.” Monroe’s city limits, UCPS officials Adam’s parents, Kyle and Pattie, led you are a cook and we have filled those The Pettys are thrilled with the suc- said Union Academy would receive a $23 million campaign to build the positions, will we line you up to help in cess of the camp and the joy they see on the funding of the supplemental camp. the stables, the pool, or somewhere,” the children’s faces. Richard said that he taxes only for students living in Richard credits the generosity of Petty said. The Victory Junction Gang is knew having a fun week at camp would Monroe. NASCAR teams, sponsors, partners, and a member of Paul Newman’s Association be good for the children and a respite The total amount in question is fans for helping make Adam’s dream for The Hole in the Wall Gang Camps. for their parents, but that what he didn’t over $200,000 for the past two years, a reality. “We are blessed with a huge Each of the camps has a theme, and expect was the long-term impact. said Dan Karpinski, financial officer network of companies and individuals Adam’s vision for Victory Junction was “Parents tell us their children leave for UCPS. CJ who all worked with us to make this a “NASCAR meets the Jetsons” design. camp with a new, more positive attitude happen,” Richard said. “We never would When touring the camp with me, my about life,” Richard said. “They don’t feel have been able to do this without their boys were awestruck. so different and alone.” CJ CAROLINA August 2005 JOURNAL Education 11 Superintendents Point Fingers After NCLB Results

By KAREN WELSH Susan Agruso called the rating system tion,” Lynch said in the article. “All we lines are too convoluted and difficult to Contributing Editor “complicated.” can do is work hard and take students achieve at this present time. RALEIGH The same article quoted N.C. as far as we can take them.” Cizek told Deaver there are limita- ewspapers across North Caro- Department of Education official Lou Other educators are maintaining tions to the Adequate Yearly Progress lina recently reported dismal re- Fabrizio as saying the NCLB act has full support for the schools that didn’t tests and ABC scores are obsolete when sults from schools and districts caused a lot of confusion among the make the grade. Debbie Smith, director it comes to measuring a child’s educa- Nstatewide failing to meet the educational public. “Noth- of testing and ac- tion. He said the end-of-grade tests goals set forth by the federal No Child ing can be ex- counting for the should provide the needed educational Left Behind Act. The one word pointedly plained sim- Person County measurements. “If people could look at missing in the verbiage was “account- ply,” he said. “If “Nothing can be explained School District, a period of years and see that the scores ability.” you explain it told Herald-Sun have been increasing, that’s really good,” Most school administrators gave simply, you’ve simply. If you explain it sim- writer Shaun Cizek said. excuses, not answers to the questions probably mis- Lockhart that While many mainstream schools regarding their schools’ failure to make led folks.” ply, you’ve probably misled students in their are complaining after they failed to the grade and, in most cases, declining The ed- folks.” failing schools meet the needs of their students, there in their overall academic performance ucator’s lines are fine. “I feel are others working diligently to meet during the 2004-05 school year. seem well-re- — Lou Fabrizio our students are the federal guidelines. Asheville Citizen- At the forefront was Durham Pub- hearsed, as if getting a good Times writer Amy Miller said the city’s lic Schools, where only 23 percent of the designed to N.C. Department e d u c a t i o n , ” Randolph Learning Center, an alterna- schools in the system met the federal leave parents of Education Smith said. “Just tive school for students with behavioral NCLB goals last school year. Carl Harris, scratching their because they or academic problems, met all its goals Durham’s associate superintendent for heads and won- don’t score well for the first time. instructional services, told The Herald- dering whether on a test doesn’t Miller also reported four schools Sun reporter Mindy B. Hagen he was it’s the NCLB mean we aren’t sanctioned by the federal government proud of the 13 schools in the district Act, not their local schools that are in meeting their needs.” for not meeting the NCLB standards in because they came “close” to achieving deep trouble when it comes to educating Some school officials simply previous years in western North Caro- their goals. “It’s always disappointing their children. blamed the children. In a story written lina reached their goals this year. when you don’t meet every goal,” he Agruso and Fabrizio are not alone. by Danielle Deaver in the Winston-Salem In the end, it’s not difficult to un- said in the article. “But we have to be Education officials statewide are labeling Journal, Winston-Salem/Forsyth County derstand why educators want to point mindful of the fact that 13 of our schools the NCLB act as stringent, unattainable Schools Superintendent Don Martin said the finger the other way. They have a only missed by one or two goals. We legislation. “While the NCLB legislation he was pleased with the system’s perfor- lot to lose. don’t want to blame those schools for has many positive features, it is however, mance, especially considering that the In reality, however, there are ac- doing something bad or wrong.” an all-or-nothing approach that leads to number of students who qualify for free countability measures in place for those A plethora of interviews with other high-achieving schools being labeled in and reduced lunch rates has increased as children attending non-performing educators showed no one taking per- need of improvement,” Kelly Rhoney, has the number of children who speak schools. The NCLB act allows children sonal responsibility for their shortfalls. Catawba County Schools director of English as a second language. too long held captive in struggling in- Instead, the NCLB results were only accountability services, told the Hickory “We have a population that has stitutions to receive special tutoring or hours old when top-ranking school of- Daily Record. basically gotten poorer over time,” transfer to higher performing schools. ficials began to point fingers and sulk, In a News & Observer article by T. Martin said. Educators should be nervous. claiming the NCLB benchmarks were Keung Hui, Principal Jamee Lynch of In the same article, Deaver report- This could open the floodgates for more too comprehensive for most people to Hodge Road Elementary in Knightdale, ed those in higher academia, including charter schools and potentially a voucher understand. a school currently not meeting the NCLB Gregory Cizek, a professor of educa- system for private education, enabling In an interview with Charlotte Ob- standards, reportedly discredited the tional measurement at the University of parents to make a real choice for their server writer Ann Doss Helms, Charlotte- NCLB Act. “You can’t make a decision North Carolina at Chapel Hill, support children’s future education. There’s Mecklenburg Schools Superintendent about a school based on flawed legisla- the rhetoric, saying the NCLB guide- nothing confusing about that. CJ August 2005 CAROLINA 12 Higher Education JOURNAL Course of the Month College Groups Endorse Academic Freedom Ask a silly question … Statement supporting intellectual diversity prompted by Academic Bill of Rights Last August, CM described the present approach to literature By SHANNON BLOSSER by teachers of literature thus: “texts Contributing Writer are not limited to books, pamphlets, CHAPEL HILL stories, works of literature — they n June 23 the American Council include any ‘story’ that an author on Education released a “State- or authors wish to tell, including ment on Academic Rights and by film, television, music, style of OResponsibilities,” endorsed by dozens of dress, home décor, choice of soft affiliated groups, including the Ameri- drink, ad nauseam.” can Association of University Profes- Take, for example, the follow- sors, Council for Christian Colleges ing course offered this fall at Duke and Universities, the College Board, University by the Department of and others. Literature: In the statement, ACE and other LIT 124: Girls, Grrrls, Girliness: signatory organizations outline their Gender, Generation and Futures in support for intellectual diversity on the 21st Century college campuses. That was a key con- The “Synopsis of course con- cern behind “Academic Bill of Rights” tent” for this month’s winner opens legislation, which essentially would with a barrage of questions. Now, codify the AAUP’s own definitions of although in concert those questions academic freedom. have a hearty, Trail Mix quality, ABOR legislation led to a “Memo- CM advises readers to feel free to randum of Understanding” between savor the nutty goodness of each public colleges and the Colorado leg- individual question: islature, inspired a Senate resolution in Georgia, and has been proposed before “What is a girl? How do girls a host of other state legislatures, includ- grow up? Do girls always have to ing North Carolina. It has also been become women? If girliness is a good presented before the U.S. House by Rep. thing, why are girlie men embarrass- Walter B. Jones, R-N.C., and 39 others. ing? What happened to Riot Grrrl? David Horowitz discusses the Academic Bill of Rights at the Pope Center’s conference Legislation in North Carolina, sponsored If the body is sexed from the start, on academic freedom last fall. (CJ photo) by Sen. Andrew Brock, did not make the why does femininity have to be pro- June deadline to be considered for full principles are: American Council on Education state- duced? Is the magazine makeover passage in the General Assembly during • Diversity among institutions is ment into the renewal of the Higher a prelude to plastic surgery? What the two-year session. what characterizes higher education in Education Act. sorts of futures do girls want? Can ABOR would have had the law the United States. The statement calls the “I applaud the higher education girls produce alternative futures? require protection of academic freedom, institutional diversity a “central figure community for coming to the table What would they look like?” rather than relying on the institutions and strength” that should be “valued and working with us to forge stronger Then it explains: “These are to monitor themselves internally or and protected.” protection for students on college cam- only some of the questions this the AAUP to monitor them externally. • Intellectual pluralism and the free puses,” said Rep. John Boehner, R-Ohio, seminar will take up …. [W]e will “Government’s recognition and respect exchange of ideas should be welcomed who chairs the House Commission on look into the process by which for the independence of colleges and on college campuses. Discussions should Education and the Workforce. “I’m childhood and adolescence were universities is essential for academic be held in an environment that allows encouraged by the cooperation and the distinguished from adulthood and and intellectual excellence,” the state- openness, tolerance, and civility. openness that led to this agreement, then at the complex social, cultural ment reads. “Because colleges and • Grades should be based on con- and I’m eager to move forward in that and economic pressures that com- universities have great discretion and siderations that are relevant to the subject spirit with renewal of the federal higher bined to produce the figure of ‘the autonomy over academic affairs, they matter. Students or faculty members education programs.” American girl’ as a subject of visual, have a particular obligation to ensure should not be evaluated based on their The Center for the Study of Popular literary and marketing interest. that academic freedom is protected for political opinions. Also, a clear institu- Culture’s David Horowitz, a chief advo- From there, we will proceed to ex- all members of the campus community tional process should be established to cate of ABOR, said the ACE statement amine the development of material and that academic decisions are based hear grievance if a student or faculty is important because it helps people and popular culture targeting girls, on intellectual standards consistent with member believes they have been pun- recognize “serious problems of political at Nancy Drew, the Bobbsey Twins, the mission of each institution.” ished because of their political views. exclusion and political harassment” on movie magazines, at Seventeen, • Intellectual standards should be college campuses. He said the statement Barbie, Judy Blume, Weetzie Bat, used to measure the validity of academic would help create a nonpartisan solution Buffy the Vampire Slayer, at Sassy, A compromise on ABOR? ideas, theories, arguments, and views. to the situation. Jane, and Bust.” • Government should recognize The “statement by the academic The synopsis mentions other The ACE statement appears to and respect the independence of colleges community is in no small part a reaction “texts,” too, including “diaries, pave the way for a compromise between and universities. to their principled calls for intellectual academic institutions and ABOR sup- decorated rooms, zines, websites, “Individual campuses must give pluralism,” Horrowitz said. porters — the former would keep their meaning and definition to these concepts Rep. Jack Kingston, R-Ga., a key music, … girls’ friendship networks, autonomy and identity, and the latter within the context of disciplinary and sponsor in Congress of ABOR legisla- their girlfriends,” and other kind[s] would see the principles of academic institutional mission,” according to the tion, said the compromise will allow of cultural production.” freedom applied more honestly and in statement. politics to be taken out of university But here comes the best part: a less-partisan fashion. The principles expressed in the curriculum. “In an effort to make sense In the statement, the groups say a statement generally support the goals of Rep. Howard “Buck” McKeon, of all this, we will read widely in a universal definition of academic freedom ABOR and were supported in Congress, R-Calif., called the statement a victory range of fields including feminist would not work because each institution including from Republicans who had for students, regardless of political af- theory, queer theory, history, cultural is different. Instead, the groups say there sought to include portions of ABOR into filiation or ideology. studies, sexuality and gender stud- are several principles that should be in- the Higher Education Act, currently in “[W]e are sending out a clear signal ies, psychology and sociology, and cluded as the basis of academic freedom the process of being reauthorized. Ac- that discrimination based on political anthropology.” CJ discussions on campuses. cording to a press statement, legislators beliefs will not be tolerated on college According to the statement, the will include portions of ABOR and the campuses,” McKeon said. CJ CAROLINA August 2005 JOURNAL Higher Education 13

Bills would promote instruction Commentary Congress Mulls Western Civ Annoy Diversicrats At Your Own Peril

By SHANNON BLOSSER Department of Education. ecently, a federal court in to see that the real meaning of that Contributing Writer Neither bill has been brought up Kansas ruled that the ad- statement is “a paper that will take CHAPEL HILL for consideration in its respective com- ministration at Kansas State us diversity crusaders as seriously as ongress is considering legisla- mittees. However, the Senate Commit- RUniversity did not violate the First we take ourselves.” tion that would provide grants tee on Health, Education, Labor and Amendment rights of a journalism The firestorm shocked the to colleges to promote programs Pensions had a hearing scheduled for professor who was fired newspaper into spasms Cin Western civilization and American June 30 on the quality of U.S. history from his position as of Larry Summers-like history education as a way to improve education. At least four witnesses were adviser to the school’s groveling. The editors educational quality in those subject scheduled to testify during the hearing student newspaper. It’s apologized for not hav- areas. to discuss the current condition of U.S. an amazing case that ing covered the black The Higher Education for Freedom history education. shows the extent to student government Act was introduced in early June by Gregg said the reason for the which school adminis- event, promised to Rep. Thomas E. Petri, R-Wis., and Sen. legislation is that few universities are trators will go in order institute a new system Judd Gregg, R-N.H., with the purpose focused on historical concepts, which to appease the campus to guarantee that all to sustain postsecondary education has caused a lack of historical literacy diversity crowd once campus events received programs that deal with traditional among college students. it decides to feel ag- attention, and said that American history, the American found- “Today, more than ever, we must grieved. they would undergo ing, and Western civilization. The bills, focus on preserving our nation’s history Prof. Ron Johnson some “diversity train- H.R. 2858 and S.B. 1209, are currently and ensuring that future generations of had for many years been ing.” in education committees in the House Americans understand the importance the faculty adviser to the Kansas State Not good enough. Rolfe and and the Senate. of free government on which this nation Collegian, a student newspaper that Gordon demanded that Johnson be The monetary grants permitted was founded,” Gregg said. had received an award in 2004 as fired from his advisory position with under the bills would allow colleges National Association of Scholars the best daily college newspaper in the Collegian. to create programs aimed at increasing President Steve Balch, in a letter to sup- a national competition. Alas, he and If there is one certainty in the numbers of students and quality of porters encouraging the bill’s passage, the students committed an unpar- America these days, it’s that college instruction in Western civilization and said that it has the potential to promote donable sin of omission. The paper administrators will never go against American history. “a sea of change in the academic cli- failed to cover an event on campus. their “diversity” staff and thereby The legislation would assist mate.” Of course, there are lots of events at invite attacks on their motives, visits academic centers, institutions, and “It would encourage the develop- a large university such as K-State, so from Jesse Jackson, and a publicity programs that offer courses, research, ment en masse of new postsecondary what’s the big deal about failing to nightmare. Kansas State officials sponsor lectures, or develop teaching programming focused on such subjects write about one of them? caved in and removed Johnson, issu- materials in Western civilization or U.S. as American political and constitutional The BIG DEAL was that the ing a statement accusing him of hav- history. history, the study of free institutions, event was the Big 12 Conference on ing a “poor attitude” in dealing with Specifically, the grants would and the study of Western civilization,” Black Student Government. Appar- students. Johnson does, however, assist colleges in teaching preparation Balch wrote. ently, the sponsoring campus group get to remain on the faculty to teach programs in U.S. history and Western Petri and Gregg’s legislation comes did not issue a press release about journalism, but the message has been civilization. The grants could also be at a time when debate has occurred the conference, but no matter. Failing delivered loud and clear: DON’T used to strengthen current programs within the University of North Carolina to go looking for “diversity” stories DISS DIVERSITY. through the design of new courses and community on the development of a these days is a high crime. Legal action was begun on be- programs, research, and graduate and Western civilization program. Natalie Rolfe, president of the half of Johnson and a federal district postgraduate fellowships. Throughout the school year, the K-State Black Student Union, com- judge issued a temporary restraining Grants ranging from $400,000 to UNC-Chapel Hill College of Arts and plained about the lack of coverage of order requiring K-State to reinstate $6 million could be awarded to qualify- Sciences worked with the John W. Pope the event to the university’s “diver- him as faculty adviser. In early ing colleges and universities. A total of Foundation about possibly funding sity coordinator,” Associate Provost June, however, the court dismissed $140 million is being requested in the a program in Western civilization at Myra Gordon. Gordon said she Johnson’s suit, saying that no viola- fiscal 2006 budget. The grants would the school. No final decision has been would back Rolfe “all the way.” tion of his First Amendment rights be made and administered through the reached regarding that proposal. CJ That was no surprise. In a had occurred and that the university previous position at Virginia Tech, was entitled to remove him if it saw Findings in the Higher Education for Freedom Act Gordon had overseen a diversity fit to do so. program built around the effusive What’s the lesson to be drawn (1) Given the increased threat to American ideals in the trying times in writings of Cathy Trower, who here? Let’s make this into a multiple- which we live, it is important to preserve and defend our common heritage of contends that “merit is socially con- choice question: freedom and civilization and to ensure that future generations of Americans structed by the dominant coalition” a. The advocates of “diver- understand the importance of traditional American history and the principles of and that all white male (but only sity” talk nicely about the need for free government on which this Nation was founded in order to provide the basic white male) job candidates should tolerance and respect, but tolerance knowledge that is essential to full and informed participation in civic life and be compelled to prove their commit- and respect doesn’t extend to people to the larger vibrancy of the American experiment in self-government, binding ment to the crusade for diversity as they’re mad at, no matter how trivial together a diverse people into a single Nation with a common purpose. a condition of employment. Gordon the reason. (2) However, despite its importance, most of the Nation’s colleges and is one of those diversity zealots who b. America enjoys a free press universities no longer require United States history or systematic study of take their business with a religious — except when diversity blowhards Western civilization and free institutions as a prerequisite to graduation. fervor. want to dictate newspaper content. (3) In addition, too many of our Nation’s elementary school and secondary With Gordon’s support, Rolfe c. The campus diversity jihad school history teachers lack the training necessary to effectively teach these organized a protest March in which is far more about getting and using subjects, due largely to the inadequacy of their teacher preparation. 50 students sported T-shirts embla- power than it is about helping mi- (4) Distinguished historians and intellectuals fear that without a common zoned “W.W.R.G?” meaning “When nority students succeed in college. civic memory and a common understanding of the remarkable individuals, events, and ideals that have shaped our Nation and its free institutions, the Will Ron Go?” Rolfe also made pub- d. All of the above. CJ people in the United States risk losing much of what it means to be an Ameri- lic her demand that the university can, as well as the ability to fulfill the fundamental responsibilities of citizens create “a system to make sure the George Leef is the Director of the in a democracy. paper is more friendly to the cam- John William Pope Center for Higher Source: Texts of House Resolution 2858 and Senate Bill 1209. pus.” It doesn’t take much acumen Education Policy. August 2005 CAROLINA 14 Higher Education JOURNAL Bats in the Belfry Business Groups Fight Proposal The Ins and Outs of Pursuing the to Amend State’s Umstead Act Correct Kind of Funding Here By SHANNON BLOSSER the universities to offer their expertise Contributing Writer to the community in an effort to en- att Kregor, a rising senior that the Ford Foundation “an- CHAPEL HILL hance economic development. She said at the University of North nounced a new $2.5 million grants usiness owners in many areas of that opinions from the state Attorney Carolina at Chapel Hill, initiative to support scholarship, North Carolina are mobilizing to General’s Office say that UNC has not Mrecently won a scholarship worth up teaching, and civil dialogue about oppose a bill under consideration violated the Umstead Act in the past. to $20,000 to study Tajik and Rus- difficult political, religious, racial, Bin the state Senate that they think would sian languages in the Asian nation of and cultural issues in undergradu- make it easier for the University of North Previous Umstead Act amendments Tajikistan. ate education in the United States.” Carolina to compete unfairly with small Twenty grand to travel to a That would be Ford’s “ Difficult businesses. This would not be the first time remote Asian country and study Dialogues initiative” set up “to Mark Zimmerman, a Chapel that the Umstead Act has been amended. not one, but two foreign languages help colleges and universities cre- Hill businessman and chairman of Previous amendments have allowed — such stuff is what multicultural ate a campus environment where the Chapel Hill-Carrboro Chamber of UNC institutions to operate student dreams are made of, is it not? sensitive subjects can be discussed Commerce’s Board of Directors, said the health services, the Centennial Campus Well, not so hasty. The award in a spirit of open scholarly inquiry, bill, which would amend the Umstead at North Carolina State University and drew criticism within Kregor’s own intellectual rigor, and with respect Act, could hinder businesses in Chapel dining services. university, from Prof. for different view- Hill and other university communities. Zimmerman said that unlike those Charles Kurzman, as- points. The initia- He mentioned specifically businesses narrow changes, the ones proposed in sociate director for the tive will support on Franklin Street that sell UNC-Chapel the legislation are broad and would Carolina Center for the new and existing Hill-related merchandise. If UNC is al- allow universities more authority to Study of the Middle courses and aca- lowed to sell merchandise to alumni it operate businesses in competition with East and Muslim Civi- demic programs that could damage those companies. small companies. lizations, and contact increase knowledge “We are very, very concerned,” Daughtridge said he considers for UNC-CH’s “Social of the religious and Zimmerman said. “There are real busi- arguments against the bill’s language and Economic Justice” cultural complexity nesses and real people that will be af- as not being a substantive complaint. program. of American society fected by this.” He said the bill’s sponsors have work Kurzman fretted and engage students House Bill 1539, which House to do to make the bill more business over Kregor’s winning in constructive dis- members approved overwhelmingly friendly. the David L. Boren cussion of conflicting June 1, would amend the Umstead Act, “It’s a whole more tightened up Scholarship because it viewpoints.” the 76-year-old provision that prohibits than it was before,” Daughtridge said. comes from the Nation- (Oddly enough, unfair state-supported competition with However, that has not allayed al Security Education a “campus environ- private companies. concerns of some business owners and Program and requires ment where sensi- The bill, listed as Senate Bill 758 they have established an organization Kregor, upon gradu- tive subjects can be in the state Senate, would allow UNC to fight the bill. Members of the Chapel ation, to use his new discussed in a spirit system schools to participate in business Hill-Carrboro Chamber of Commerce skills to assist in na- of open scholarly that would further the mission of the organized the Coalition for Small Busi- tional security. National inquiry, intellectual university, primarily serve the students ness and Fair Competition and drafted security for … America. rigor, and with respect for different or employees, provide a related uni- a resolution against the bill. Thus in The Chapel Hill Herald viewpoints” was once considered versity service to alumni, or enable the Other groups, such as the Orange Kurzman worried about the “cloak- de rigueur for a university.) local community to use the university’s County Economic Development Com- and-dagger stuff” of having a stu- Nevertheless, Prof. Donald facilities, equipment, or expertise. mission, the Chapel Hill Downtown dent in the classroom who might be Nonini responded, asking the list- It would also establish a panel, Commission and the Hillsborough-Or- headed for a future in intelligence- serv on April 18 whether other pro- within the Board of Governors, to ange County Chamber of Commerce gathering — especially if profes- fessors “would like to join together review any claims that a university is have joined the group. sors might wind up contributing to with me to put a proposal for fund- participating in unfair competition with Organizations in Raleigh, Ashe- national security by, egads, teaching ing on a project connected to this businesses. ville, Cary, and Durham are considering a student such as Kregor without initiative which we could submit to The bill was sponsored by Rep. joining the group, according to informa- knowing who’s footing his school Ford? Seems like we have rich and Bill Daughtridge, Rep. Harold Brubaker, tion provided by the Chapel Hill-Car- bill. As Kurzman put it, “if we are harrowing experience to draw on, Rep. Phillip Haire, and Rep. Douglas rboro Chamber of Commerce. serving some government intel- as well as the possibilities of inter- Yongue. It has yet to be taken up for a “It just dropped in our laps,” said ligence function by training them, I disciplinary collaboration, to draw vote in the state Senate and could come the Chapel Hill Chamber’s Zimmerman. would like to know.” on among us.” up for a vote this session. “We started with those we know the best. More to the point, Kurzman Nonini added, “Besides, it Daughtridge said he thinks the There are 16 chambers of commerce that asked, “To what extent are we help- might actually provide us with bill would allow the universities to help ought to pay attention to this.” ing students go out and do all sorts resources, where our administra- small businesses develop prototypes and The group has also made its dis- of dirty deeds that we would be tion fails to do so.” He is the same other items by using expertise within pleasure with the legislation known to embarrassed to have a hand in?” Nonini who vehemently opposed the system. members of the Senate, including Or- No, really — “dirty deeds.” a grant from the Pope Foundation He said some of the provisions in ange County’s Sen. Ellie Kinnaird. Well, what do UNC-CH leftists and was among those UNC-CH the bill could have been implemented In a letter to Kinnaird, dated June do when they aren’t complaining professors who signed an open let- by the universities previously, but uni- 16, Zimmerman said, “While this legisla- about students getting scholarship ter to that effect. versity officials where uneasy about tion may have been well intended, we money to serve national security or Meanwhile, two days later, doing them for fear of violating the believe that it is loosely written, poorly protesting academic departments UNC-CH hosted a conference on Umstead Act. conceived, extremely broad in scope seeking money from conserva- the subject of “Selling the Univer- “This is a clarification so [the and effectively eliminates the protection tive foundations to support course sity: Funding, Academic Freedom, universities] know where they stood,” for small businesses the Umstead Act development? Chase money from and Public Responsibility: How Daughtridge said. sought to establish.” leftist foundations to support course does dependence on corporate, Joni Worthington, a spokeswoman Zimmerman said he hopes to work development, of course! foundation and research funding for UNC-General Administration, said with legislators to alter the bill’s amend- In April, the leftist listserv at influence teaching, research and the bill would not allow UNC institu- ments or to defeat it all together. UNC-CH was abuzz with the news service?” CJ tions to participate in “unfair competi- “We just want to put the brakes on tion.” Instead, she said it would open up it for awhile,” Zimmerman said. CJ CAROLINA August 2005 JOURNAL Higher Education 15 Hail the Disposition Police! Diversity Movement is Biggest Threat to Academic Freedom

By JON SANDERS But there is a above are taken resolute.” Even after the negative vote, Assistant Editor movement to do verbatim from a UO President David B. Frohnmayer told RALEIGH those things ac- plan attempted The Chronicle of Higher Education of magine, ust for fun, how the aca- cording to de- at the Univer- May 27, “We’re wedded to the objectives demic Left would react if dozens monstrable fe- sity of Oregon of the plan.” of colleges incorporated patriotism alty to diversity — except for That unswerving agenda is to base Iinto their guiding principles and evalu- politics. There’s replacing that every conceivable aspect of the univer- ated people according to their “patriotic been no outcry, plan’s diversity sity on the undefined “cultural compe- dispositions.” however. euphemism of tency.” Oregon’s plan shows everyone Then think how they’d respond to The first “cultural com- where the diversity movement is headed a plan to “Develop Patriotism” among paragraph of petence” with — more thought control, more discrimi- university faculty that would: this article — ex- “patriotism.” nation, more “unswerving” conformity, • “Revise 3rd year, tenure, and cept for replac- With their “Five more subjugation of free inquiry. Hiring, post-tenure evaluation criteria to assess ing “social justice” with “patriotism” Year Diversity Plan,” Oregon’s diversity promotions, raises, even tenure accord- ongoing skill building and demonstrable — mimics a June 3 New York Sun article planners wanted to base every conceiv- ing to political behavior. Recruiting, commitment to patriotism.” about Brooklyn College’s School of able aspect of the university on “cultural scholarships, course content, minors, • “Tie evaluation of patriotism to Education, which “has begun to base competency,” a concept that they never majors, even campus centers based on raises, promotions, etc.” evaluations of aspiring teachers in part define. how they serve a political cause. Having • “Provide patriotism develop- on their commitment to social justice” us- It wasn’t just faculty hiring, promo- to run all proposals and decisions by ment opportunities ing “a new method tion and tenure decisions, but also enroll- several newly created diversity offices. for faculty skill- of judging teacher ment decisions, scholarship decisions, In other words, the academic Left’s building.” Oregon’s diversity plan- candidates based curriculum changes, course offerings, worst, hallucinogen-induced night- • “Recom- on their ‘disposi- new minors and majors, executive hires mares about the Bush administration mend that all in- ners wanted to base tions.’” The Sun and decisions, new campus offices, even is exactly what the diversity movement structional facul- every conceivable aspect points out that eval- new campus building projects. openly sought to achieve in Oregon. ties participate in uating prospective Oregon’s “Diversity Work Group” Meanwhile, diversityniks lose sleep ongoing patriotism of the university on “cul- teachers according and “Diversity Advisory Council” pro- when conservatives — and Christians! professional devel- to their social-jus- duced its interestingly named “Five Year — merely request that their place at the opment, including a tural competency.” tice dispositions is Plan.” A total of 80 people collaborated academic table be respected. module from the Pa- “a vogue in teacher on this scheme, and they thought it was At least Oregon’s proposal was triotism Project.” training across the so wonderful they all put their names defeated. And in such a climate, the • “Include meaningful emphasis country that focuses on evaluating teach- on it on page one. American Council on Education’s recent on patriotism development in orienta- ers’ values, apart from their classroom statement reasserting academic freedom tion programming.” performance.” Rapport with a thief of freedom is quite welcome. But despite the Oregon The outcry would be of biblical Also, The Sun reported that Brook- plan’s defeat, it would be foolish to think proportions, right? Academics would lyn “is among dozens of education The bad news is that the Dispo- it is the last such proposal we’ll see. wail about academic freedom and rail schools across the country that incorpo- sitions Police are already out in force That’s because the watchdogs of over the sanctity of the classroom, the rate the notion of ‘social justice’ in their at Brooklyn College and others. The academic freedom have developed a intellectual responsibility to teach and guiding principles.” Not surprisingly, good news is, Oregon’s faculty voted rapport with a thief. Yes, they strain at endure challenging ideas, and so forth. several students have already filed al- down the plan. The dark cloud above the chains at the mere mention of the Aca- And they’d be right. legations of discrimination against them that silver lining is that its defeat won’t demic Bill of Rights. But when it came Rest assured, there’s no campus because of their political beliefs. They dissuade the diversityniks. The plan’s to Oregon’s proposal or the ed schools’ movement to reward or punish people had the “wrong disposition,” you see. authors state flat out, “This agenda is overtly political evaluations, they were according to demonstrable patriotism. The quotations in the bullet points unswerving and our efforts must be the dogs who didn’t bark. CJ

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See what one Raleigh paper called “Matt Drudge with Class” August 2005 CAROLINA 16 Local Government JOURNAL Town and County Can Smart Growth Make a City Unaffordable? City wins annexation ruling By RANDAL O’TOOLE come estimates using information from regions have ratios of between 2.0 and The Thoreau Institute the 2000 census. This revealed that Port- 3.0. The last category includes seven The city of Winston-Salem BANDON, ORE. land’s median-family income was $8,600 regions, five regions whose ratios are won one round in mid-July in n the March 2005 issue of New Urban higher than HUD had thought. This between 5.0 and 6.0 and two regions its legal fight to annex 22 square News (http://www.newurbannews. shows, Langdon said, that Portland’s whose ratios are above 6.0. The table miles and 18,000 residents, but com/PortlandMar05.html), New affordability didn’t decline as much as also lists regions typical of each ratio; the annexation battle continues in IUrbanist Philip Langdon argues that the everyone thought. Of course, this doesn’t for example, Portland is 2.96. another lawsuit, the Winston-Salem “urban growth boundary did not make prove that Portland’s affordability didn’t To calculate the change in afford- Journal reports. Portland, Ore. unaffordable.” Langdon’s decline or that the decline wasn’t due to ability between 1990 and 2000, I simply The N.C. Court of Appeals claim shows how important it is to get the urban-growth boundary. divided the 2000 price-to-income ratios upheld a lower-court ruling on the best possible data before reaching by the 1990 ratios. two complaints in a suit filed by conclusions. Recalculating the change Nationally, the ratios remained at Citizens Against Forced Annexa- Langdon is the author of “A Bet- Since the most reliable data come almost exactly 2.23 between 1990 and tion. A judge in Forsyth Superior ter Place to Live,” which argues that from the decennial census, and the cen- 2000, indicating that incomes rose at Court had dismissed the first two suburbs should be redesigned to look sus also estimates the value of owner- the same rate as home prices. In just the complaints. like his home city of New Haven, Conn.: occupied homes, I downloaded 1990 urbanized areas, ratios declined — that The group had argued that in other words, with the dense, mixed- and 2000 median-family incomes and is, affordability increased — from an annexation is unconstitutional and use neighborhoods so beloved of the median-home values for every urban- average of 2.32 to 2.25. violates Winston-Salem’s charter. New Urbanists. In his latest article, he ized area (the numbers actually apply Affordability improved in about The appeals court said that reveals that the National Association to 1989 and 1999). An urbanized area is half of all urbanized areas and decreased a third complaint in the suit, that of Home Builders had used erroneous a city and its suburbs that together add in the other half. the city violated North Carolina’s data in its housing affordability index. up to 50,000 or more people. open-meetings law when it adver- Since “smart-growth” skeptics such as The United States had about 400 And the winner is.... tised three special meetings related Wendell Cox and me relied on that faulty urbanized areas in 1990, and about 50 My complete spreadsheet can be to annexation in June 2003, should index to conclude that Portland experi- more in 2000, partly because the Census downloaded from http://ti.org/pricet- also have been dismissed when enced the fastest decline in affordability Bureau split up a few urbanized areas. oincome.xls. In a nutshell, the 15 regions the judge dismissed the other two of any U.S. housing market in the 1990s, It also merged a few other urban- with the greatest increases in price-to- complaints. Langdon triumphantly announces we ized areas, notably Miami and Ft. Lau- income ratios — that is, the greatest Richard Brown, a lawyer must be wrong. derdale. Without going to the trouble declines in affordability — are: of merging and splitting data, which representing the residents, said he I always prefer data over personal •Portland, Vancouver, OR-WA 53% plans to appeal to the N.C. Supreme experiences, which can be selective and would not have significantly changed the rankings, I was able to find more •Salem, OR, 44% Court. Members of the citizens biased. But, unlike Langdon, I lived in •Longview, WA-OR, 44% group filed two lawsuits against Portland through the 1990s, and it was than 350 urbanized areas in common between the two censuses. •Eugene, OR, 42% the city in 2003. obvious to almost anyone who lived •Salt Lake City, UT, 38% The other lawsuit is aimed there during that time that the region’s For each urbanized area in each census I made a simple calculation of af- •Boulder, CO, 38% at the methods the city used to housing affordability dramatically de- •Bay City, MI, 38% determine which areas it is trying to clined as housing prices increased far fordability: median-home value divided by median-family income. The most •Yakima, WA, 37% annex. The city won that argument faster than personal incomes. •Flint, MI, 36% in Forsyth Superior Court. But resi- The data we had available said that, affordable regions have a home-price- to-income ratio of less than 2, meaning •Jackson, MI, 35% dents appealed, and the two sides between 1988 and 1998, the region’s real •Medford, OR, 34% are waiting for a date for a hearing (i.e., inflation-adjusted) median family that a median family could buy a me- dian home by devoting 100 percent of •Missoula, MT, 33% before the appeals court, said Ron incomes remained flat or even declined •Longmont, CO, 33% Seeber, the city attorney. slightly, while housing prices more than their income to the house cost for two or fewer years. •Ogden, UT, 33% doubled (see http://ti.org/pdxprices. •Provo-Orem, UT, 33% jpg). Using the National Association of More realistically, 25 percent of ‘Town Hall’ session on meth Home Builders’ Housing Opportunity their income could pay off a 6 percent Index, which estimates the percentage mortgage in under 12 years. Nearly 200 The actual price-to-income ratios Billy Kenoi of the Hawaii of homes affordable to a median-income regions met this affordability test in 2000, for Portland, Salem, Eugene, and Med- County mayor’s office told about family, Portland’s affordability declined including Dallas-Ft. Worth, Houston, ford grew from about 2 to nearly 3, 150 county officials from Florida from about 67 percent to a low of 26 and San Antonio. meaning these communities went from to Washington state gathered in percent. No other region experienced The table below shows these ratios very affordable to marginally affordable. Honolulu on July 18 not to give up such a decline in this time period. for several representative urban areas. While Portland is not as unaffordable as if their communites are besieged by To calculate its index, the National Ratios of 5.0 and 6.0 mean, essentially, San Francisco, its affordability declined methamphetamines. Association of Home Builders relied that the house could not ever be paid off, more than any other urbanized area in The National Association of on median-income data published by so these are ranked “very” to “extremely the nation. Counties’ first-ever “town hall” the Department of Housing and Urban unaffordable.” Lots of things influence affordabil- session on methamphetamine of- Development. HUD uses these data Since lenders are reluctant to give ity, but the data show that on average fered no miracle solutions for de- (downloadable from http://www. mortgages to people who would have the home-price-to-income ratio has been feating meth, blamed for boosting huduser.org/datasets/il.html) to de- to spend more than 30 percent of their and remains about 2.2 to 2.3 throughout crime and child abuse across the termine which families in different incomes on the mortgage plus prop- the nation. nation. Instead authorities spoke metropolitan areas have incomes low erty taxes and insurance, regions with This means that homebuilders of the need to attack the problem enough to be eligible for federal hous- price-to-income ratios of 3 or more are are generally able to keep up with the from all angles. ing assistance. considered marginal to unaffordable. demand for housing even in fast-grow- ing communities. Housing shortages Eddie Wright, a commis- •Topeka, 1.5, extremely affordable sioner in Vance County, N.C., said An error in the data occur in growing regions mainly when Apparently, as Langdon discov- •Dallas, 1.75, very affordable government intervention such as growth he was worried methamphetamine •Cincinnati, 2.0, affordable use would spread because of its ered, HUD estimates of median-family boundaries, building limits, lengthy income aren’t particularly accurate. For •Portland, 3.0, marginally affordable permitting processes, or other regulation low cost. Wright, whose largely •San Diego, 4.0, unaffordable rural county north of Raleigh and the most accurate information, HUD prevents homebuilders with keeping up •San Jose, 5.0, very unaffordable CJ Durham has only just begun to see relies on the decennial census, which with demand. gathers income data and calculates •Santa Barbara, 6.0, extremely unaf- an influx of the drug, said he would fordable take home what he learned in Ha- median-family incomes. In between the censuses, HUD bases its estimates on waii. CJ more limited sources of data. Fourteen regions have price-to- Randal O’Toole can be reached at his In 2003, HUD “recalibrated” its in- income ratios of less than 1.5 and 210 email address of [email protected] CAROLINA August 2005 JOURNAL Local Government 17

Would affect local governments Commentary Loser-Pays Public Records Bill Is Cutting Taxes Unpopular? Spurs Spirited House Debate ell, the local budget cycle results in lower tax rates. Even has once again run its Moore County dropped its rate this By RICHARD WAGNER the law becomes a vehicle for abuse,” course and we can now year. Focusing on retirees and golf Wtake a collective break from all the courses seems to have a more dra- Editor Bussian said. “The press association local news coverage. We can also matic effect on tax rates than does RALEIGH urges the committee to support the bill step back and see what this budget any economic developer statewide. bill that would require courts to in its present form.” cycle has wrought. The two largest tax increases award attorney’s fees to the press The NCPA would reluctantly We’ll step away from the munici- across the state occurred in Camden and citizens who win public-re- accept Section One of the bill if the pality viewpoint, as most cities will and Lee Counties. Camden in- Acord lawsuits against local governments public and the press were automatically have elections this year and so took creased taxes by 15 cents to 90 cents, and the state aroused spirited debate awarded attorneys fees if the plaintiffs their tax hit last year or a 20 percent increase. during a House committee hearing win lawsuits over public records, Bus- will take one again next Lee County increased recently. sian said. year. The story amongst their rate from 67 cents John Bus- But Andy sian, legisla- the 100 counties is inter- to 79 cents, an 18 percent Romanet, gen- esting enough. increase. In both instanc- tive and First “If there is no consequence eral counsel of A m e n d m e n t The difference es, the primary reason of withholding public re- the N.C. League between the highest for the increase was the counsel for the of Municipali- North Caro- and lowest property construction of — and cords, the law becomes a ties, said Sec- tax rates in the state new expenses related to lina Press As- tion Two of the sociation, told continues to show that opening — a school. vehicle for abuse.” bill “is troubling the system has is- There was also a members of the to us.” He said House Judicia- — John Bussian sues. Scotland County variety of interesting the league rep- retains its sole position comments made by com- ry 1 Commit- resents 535 mu- tee that despite First Amendment Counsel as the county with the missioners and county nicipalities in highest rate, at $1.10. managers about the issue changes that NC Press Assoc. North Carolina. g o v e r n m e n t This is not an increase, but of growth in newspapers statewide. “The people in the result of micromanagement by Several commented that they need- lawyers want, these munici- the legislation the General Assembly that started ed an increase to pay for growth palities do the “is a good bill the way it’s presently in 1963 when the City of Laurin- while others said they needed tax best job they can with the law. To penalize worded” and that “no opposing words burg schools and the county school increases due to lack of growth. them if they make a mistake, that goes were given” in Senate committee hear- system merged. Since that time, One thing seems certain, too far.” Romanet said the league would ings that had been conducted on the the county has been forbidden from whether you’re growing or not, support a different version of the bill that bill. negotiating with the school board taxes will probably go up. All told, allows judges to make decisions on the The first section of the measure, for current expense. 45 counties increased taxes this year. awarding of attorneys fees. Senate Bill 856, would establish an excep- The second problem in Scot- That is up from the 32 that raised tion in the state Public Records Law for Jim Blackburn, a lawyer for the N.C. land County is the continued ero- them last year and the 35 that raised trial preparation material. It would pro- Association of County Commissioners, sion of local control that the state of the year prior. vide that a custodian of a public record said the issue of trial material is not a NC forces in the form of Medicaid. Medicaid continues to be an that is also a trial preparation material question of “whether it becomes public, As of July 1,we are now the only easy target, and should be. Accord- may deny access to the record, whether but of when it becomes public.” state in the country that continues to ing to the NC Association of Com- or not a lawsuit has been filed. Any per- “There is not a vast conspiracy force counties to pay for 15 percent missioners, Medicaid is eating up son denied access to a public record that out there to keep information from the of the state’s share of the costs. more than 10 percent in 15 counties is alleged to be a trial record may ask the public or the press,” he said. In a difficult move, the county across the state. Worse, Medicaid court for a ruling. If the party seeking The stronger bill is needed, Bus- appears to have absorbed that six- is eating up more money in 48 access is a party to the lawsuit, an action sian said, because judges have shown cent increase and hit the sheriff’s de- counties than they spend on school to determine access must be brought in in almost every case over the years partment with personnel cuts. The construction. The reality is that the pending action. Otherwise, a person that they will not award attorneys fees situation with Medicaid must end. the General Assembly should act can bring a separate action for a judicial to the public or the media when they Dare County is on the other quickly and deal with this horrible determination. filed public records lawsuits against the end of the extreme with a 25-cent situation. The custodian of trial preparation government. “You can look all around tax rate. This is primarily due to the As a state collectively, we seem material that is also a public record must the state at cases that have gone up on fact that coastal property is expen- to relish having tax increases. Our grant access to the material once the law- attorney fees, and judges will not award sive and many of the “owners” state continues to expand faster than suit is resolved, or when the applicable fees against the government,” he said. aren’t residents. When your real the rate of inflation and population statute of limitations expires. Rep. John Blust, R-Guilford, estate is increasing 20 percent year growth. Cities and counties seem Section Two would amend the agreed. “Sometimes requested records over year tax rates tend to tumble. to enjoy following in Big Brother’s law establishing the process for gaining haven’t been turned over, or turned So the spread is now 85 cents. footsteps. access to public records when access is over until there’s a whole long period of Currituck County had one of But there were some excep- denied, to require the court to award time, knowing that the person request- the most interesting shifts statewide. tions out there. Out of 100 counties, attorneys fees to the requesting party if ing them doesn’t have the resources to Due to their revaluation, values five had tax DECREASES this year. the court determines that the govern- take on the government,” he said. “I’d had jumped by an average of 146 Don’t get used to it. It’s not popular mental body unlawfully refused. This like to see some guarantee that a gov- percent. The net result of this was these days to lower taxes. CJ section also would require the court to ernment entity can’t hold out and bleed that the tax rate fell from 62 cents to assess reasonable attorneys fees against the little guy who wants information. 32 cents. Even more fascinating is that the party who initiates an action in bad I have seen cases where it was almost the new rate included a 4-cent tax Adams is vice chairman of the Lee faith or frivolously. ridiculous when attorneys fees weren’t increase. The revenue-neutral rate County Board of Commissioners and “This is a sea change in the North awarded,” he said. would have been 28 cents. Again, director of the Center for Local Innova- Carolina Public Records Law to keep Rep. Joe Hackney, chairman of the proximity to coastal property tion. Visit www.LocalInnovation.com. government agencies from gaining an committee, said the committee would and/or resort areas nearly always unfair advantage. If there is no conse- defer a vote on the legislation and further quence of withholding public records, study the measure. CJ August 2005 CAROLINA 18 Local Government JOURNAL

Local Innovation Bulletin Board From Cherokee to Currituck Effects of Proposition 13 Chapel Hill-Carrboro Officials assed in 1978, Proposition people, and are attracting the best Alarmed Over Wal-Mart Plans 13 lowered the tax burden of jobs. The reality is quite the opposite, California homeowners by Kotkin said. By MICHAEL LOWREY home-improvement store. Things were Ppreventing large tax increases until In the 1990s, about five people Contributing Editor going according to plan until several their houses were resold. A paper moved out of a city for every three RALEIGH property owners near the mall unexpect- from the National Bureau of Economic people that moved in. Highly edu- hapel Hill and Carrboro officials edly asked for compensation for reduced Research finds that this delays people cated people may move to the city are concerned about the effects road access brought on by the project. from reselling their homes and may in their 20s, but they tend to return a possible new Wal-Mart store Linder, with the support of Councilman delay new home- to their home- Cmight have on their communities and Robbie Perkins, asked city officials in buyers from pur- towns or sub- are seeking a thorough review before May for incentive money to ensure the chasing their first From 1970 to 2000, urbs in their 30s; planning approval is granted. The store, project proceeded. homes. in fact, 16 of the however, would “Either the P r o p o s i - the average tenure of top 20 counties not be built in Or- city comes to the tion 13 requires with the high- ange County, where table or this deal that property as- California homeowners est percentage the two towns are Chapel Hill and Carrboro falls apart,” Per- sessments rise was 1.04 years longer of college-edu- situated, but rath- officials prohibit “big kins said June 2. by no more than cated people are er in neighboring Linder with- 2 percent per than that of homeown- suburbs. Chatham County. box” development. As drew his request year until the Cities are While noth- June 7 after it be- next sale. There- ers in other states. also not neces- ing has been estab- a result, many Orange came apparent fore, so long as sarily where the lished, Wal-Mart County residents go city council would property values great jobs are; officials have -con not give him the increase by more than 2 percent per since 2000, most of the growth in the tacted Chatham elsewhere to shop. money. year, homeowners’ taxes are lower business and financial services sectors County planning T h e d e a l than they would be on a new house has been in the suburbs, where firms officials about - ap didn’t fall apart, of the same value. Consequently, are attracted to open space, less crime propriately zoned though. The News there is a serious disincentive to sell and more-educated workers. Indeed, sites near the Orange County border. & Record of Greensboro found that less the property, which leads people more suburban areas are providing The mere suggestion that a Wal-Mart than three weeks later, Wal-Mart’s devel- to stay in their homes longer than performing arts centers, coffeehouses, store might be coming has Chapel Hill opment division bought the property. otherwise. and the like for the “hip” crowd so and Carrboro officials alarmed. At least one councilman wasn’t From 1970 to 2000, the average they have less need to live in city. Carrboro passed a resolution call- surprised by the turn of events. “They tenure of California homeowners If cities want an economic ing on Chatham County to examine the make their decision about what they was 1.04 years longer than that of edge, Kotkin said, they must gain the effects of the proposed store. Chapel Hill want to do and they see what they can homeowners in other states. During political will to focus on real urban went further, and requested a courtesy get from us,” Tom Phillips said to the the same time, the average tenure of problems: lost jobs, poor schools, and review of Wal-Mart’s permit applica- newspaper. California renters averaged 0.79 years crumbling infrastructure. tions, should they be submitted. The longer than comparable renters in town is particularly worried about traffic other states. These figures represent the store might generate. Charlotte cab age limits increases in average tenure of 10 and Congestion up nationally “This is the first I’ve heard about 19 percent, respectively. that,” Chatham County Commission Charlotte is likely to alter its age The effects varied by race, Traffic congestion has increased limits on taxicabs. The move comes in significantly over the past 20 years, Chairman Bunkey Morgan said to The origin, and location. Average tenure News & Observer of Raleigh about the response to taxicab operator concerns length was less than one year longer costing travelers time and wasted about the costs of the requirement. gas, according to a recent report by courtesy review. “I didn’t know they in inland California cities, but more did that type of stuff.” In 2000, the city adopted a com- than two years longer in the Los An- the Texas Transportation Institute at prehensive ordinance regulating cabs. Texas A&M University. Furthermore, The two Orange County towns’ geles area and three years longer in concerns are in part based upon local It included a seven-year age limit for the San Francisco Bay area. cities are not doing enough to manage cabs, which would take effect in July and prevent congestion. shopping patterns. Existing zoning regu- Black households’ ownership lations largely prohibit “big box” retail- 2006. With the new regulation soon to tenure was 1.3 years longer than According to coauthors Tim take effect, taxicab operators asked city Loma and David Schrank, the num- ers within Orange County. As a result, comparable white homeowners. The a high percentage of county residents council this spring to reconsider the tenure length of immigrant hom- ber of cities where commuters were limit. A council committee in June voted stuck in traffic jams for more than 20 go elsewhere to shop. A 2002 market eowners and renters is 1.5 years and research study by the N&O showed to increase the age limit to 10 years. 0.6 years longer, respectively, relative hours a year increased from five in “It gets the jalopies off the streets, 1983 to 51 in 2003. In 2003, conges- that 72 percent of Orange County adults to that of native-born homeowners had shopped in Durham County, and 27 assures customer satisfaction, and al- and renters. tion accounted for 3.7 billion hours in lows small businesses to continue to traffic delay and consumed 2.3 billion percent had shopped in Wake County in the previous 30 days. operate,” Mayor Pro Tem Patrick Can- gallons of gas. non said to The Charlotte Observer. “Hip”, but still unlivable Los Angeles tops the list of Even the higher age limit will metro areas with the worst traffic Wal-Mart yes, incentives no force the retirement of more than half of Cities are buying into the notion congestion, where commuters experi- the more than 500 cabs that operate in that building urban lofts, art centers, enced an average of 93 hours per year While Chapel Hill officials might Charlotte. Cab operators are expected to and arenas is the key to attracting in delays during peak travel times. object to Wal-Mart, Greensboro has no buy used vehicles as replacements and successful newcomers. But becoming Even more surprising is that the such qualms. In fact, a least one city run them for a few years until they hit “hip” does not solve the real problems 2003 data reflect a period of relatively councilman was pushing to use city the higher age limit. cities face, historian Joel Kotkin said slow economic growth and more un- tax dollars to make sure a Wal-Mart got As a tradeoff for the higher age in the Dallas Morning News. employment, which would normally built. Happily for the city, the project will limit, Charlotte would require more Furthermore, the media has be associated with less traffic conges- proceed without city incentives. frequent and stricter taxicab inspections. overestimated the rebirth of urban tion. But observers say that cities are Developer Don Linder was work- The city mandates an inspection once centers, claiming that they are gaining simply not doing enough to keep up ing to redevelop the abandoned Carolina a year; under the proposal inspections population, are home to successful with traffic congestion. CJ Circle Mall. At the core of the project would be required every six months. would be a Wal-Mart store and a large Inspections cost $40. CJ CAROLINA August 2005 JOURNAL Local Government 19 Higher Expense, Fund Raiding Slowing Road Projects

By MICHAEL LOWREY from U.S. 17 to I-40 and then on to U.S. Associate Editor 421, should be finished by 2007. The RALEIGH next phase, extending the road south he N.C. Department of Trans- to meet up with U.S. 17 again, is an portation has finalized its new environmentally challenging project. seven-year road-building plan. As in the 2004 TIP, work is to begin in TAnd for many communities, the plan 2009 though the estimated cost of the puts the brakes on anticipated new road project has increased by $90 million in projects. the last two years. Federal rules require state trans- • GREENVILLE: Another recent portation departments to regularly addition to the loop-approved project list compile master planning documents. is the 7.8-mile Greenville Southwest By- North Carolina’s master plan is called the pass. Though the road is currently being Transportation Improvement Program designed and land purchase is planned (TIP) and is updated every two years, for 2009, no money is available through with the N.C. Board of Transportation 2012 to build the bypass. The 2004 TIP approving the latest version in early had land purchases beginning in 2006 July. from non-trust fund sources. North Carolina law provides that •DURHAM: Local leaders reject- most road funds are allocated by fund- ed the idea of a outer belt per se, opting ing formulas to regions, with input instead to upgrade a number of existing from local official helping to determine streets while adding a limited amount which specific projects are built using the limited funds available. Notable of new roads built to below-interstate exceptions are urban loop funds, for standard. The project remains largely which designated highway projects from undefined, with no funds budgeted across the state directly compete against except for $20 million for land purchase each other for available funds. Construction vehicles on I-540, also called the Outer Loop (Photo courtesy of NCDOT) and mitigation for the 2.5-mile East End In 1989, the General Assembly Connector project. raised the gasoline taxes and various mile Northern Loop between Interstate ment of funds. The highway was gotten • GASTONIA: A 7.5-mile, $100.9 fees, with the extra revenue going 40 in western Forsyth County and U.S. substantially more expensive in the past million stretch of the Garden Parkway, to the newly created Highway Trust 311in the eastern part of the county. The two years, with $340 million of land between I-85 and U.S. 321 was included Fund. Exactly 25.05 percent of avail- 2004 TIP projected starting work on the acquisition and construction to occur in this year’s TIP. The project receives able Trust Fund revenue would go to western portion of the road, between I- after 2012. no funds, though, through 2012. An build interstate highway-quality outer 40 and U.S. 52 in 2006, and the eastern • RALEIGH: Another of the larger additional 21.5 miles of the parkway, loops, or portions there of, around seven portion, between U.S. 52 and U.S. 311, in projects, Raleigh’s outer loop is also though nominally eligible for urban- cities: Asheville, Charlotte, Durham, 2010. Work on the eastern portion will known as I-540. Thirty-one miles of the loop funding, would be built as a toll Greensboro, Raleigh, Wilmington, and still begin in 2010; the western portion, highway will be complete by 2007, with road without the use of loop money. Winston-Salem. In 2003 and 2004, the however, has been delayed indefinitely no additional road building planned un- The TIP construction schedules legislature expanded the list of projects with no money for construction bud- til 2012. The previous TIP had penciled presume that all needed funds and eligible for urban-loop funding, add- geted for at least the next seven years. in funds to begin work on a sector in permits can be obtained in a timely ing loops in Greenville, Fayetteville, The status of the other projects: western Wake County in 2008. manner, which has not always been the and Gastonia while also increasing the • ASHEVILLE: Though it was • WILMINGTON: The port city’s case in the past. scope of all of original projects except one of the original projects, the NCDOT “loop” was originally called the U.S. 17 To download a full copy of the 2006 for Asheville. has only spent $4.1 million so far on the Bypass and has since been designated TIP, go online to www.ncdot.org/plan- The 2006 iteration of the TIP is the design and planning of the 3.5-mile, I-140. The northern portion of the road, ning/development/TIP/TIP/. CJ first to reflect these additional urban loop $325 million project. The scope of the projects. Yet even before the new projects road, eight lanes, has proven to be were added, the NCDOT faced a daunt- controversial locally. The 2006 TIP would ing list of to-dos with limited resources. see land acquisition begin in 2008 and To make matters worse, some projects construction start in 2012, a four-year have become much more expensive delay versus the 2003 TIP. than when originally envisioned while • CHARLOTTE: The longest and the Trust Fund has been raided to help most expensive of the loops, the Char- close the state budget deficit. lotte Outer Belt (I-485) will be more than “We have $2 in projects for every 90 percent complete by late 2007 — and $1 we have coming in,” Calvin Leggett, still about eight years from completion. the NCDOT’s chief planner, said to The Work on the last five-mile stretch now Charlotte Observer. isn’t scheduled to begin until 2012, four And that means some communities years later than previously planned. The won’t see their road projects built as fast new TIP also includes funds to begin as they’d hoped — or as was promised widening a badly congested portion of even as recently as two years ago. I-485 in southern Mecklenburg County Greensboro provides a good ex- in 2012 — the road was originally built ample. Under the previous state master in the early 1990s with too few lanes — a plan, almost all of the 42-mile-long project that the Assembly approved for Greensboro outer loop would be com- urban-loop funding only last year. pleted or under construction by 2010. • FAYETTEVILLE: In 2003, the As- That’s not so under the new TIP; work sembly added the Fayetteville Western on the eastern third of the highway is not Outer Loop to the urban loop project slated to begin until after 2012. list. The move will increase road build- Winston-Salem fared little better ing in Fayetteville area in the long road, between 2004 and 2006. Urban loop as money for the expensive project will money is to be used to build the 27.4- not come out the area’s regular allot- August 2005 CAROLINA 20 The Learning Curve JOURNAL

From the Liberty Library Interesting book, despite condescensions

• The first Republican elected to the Senate from North Carolina Changes Lead to Globalization of Individuals since Reconstruction, Jesse Helms was both a bane and a boon to • Thomas L. Friedman: The World Is bribery, xenophobia,and oppression are Presidents for 30 years, champion- Flat; Farrar, Straus and Giroux; New quashing the hope of modernization ing such core conservative causes York; 2005 in many Muslim and African nations; as low taxes, anticommunism, and outsiders who want to do business will By HAL YOUNG school prayer, while working to find willing partners elsewhere. He is Contributing Editor become chairman of the crucial Sen- concerned that collaboration can occur RALEIGH between crime families and terrorists as ate Foreign Relations Committee, any of us have spoken with well as businesses and entrepreneurs, a post he attained in 1995. Now, in call-center operators in Ban- and “bin Ladinists” who decry the open- Here’s Where I Stand: A Memoir, he galore, India, and would be ness of Western nations are using their chronicles the inside story of his rise Monly slightly surprised that Wal-Mart infrastructure to plot their downfall. to power and all those who defended is China’s eighth largest trading part- Friedman praises India’s system or fought him, from Nixon and Rea- ner — larger than most nations. I was of technical education – “one of the few gan to Kennedy and Clinton. Learn surprised, though, to hear a Hispanic things India did right” under Nehru more at www. randomhouse.com. acquaintance worry over the impact that — and criticizes a corresponding slide globalization was having on his friends’ in American enthusiasm for engineer- • The Competition Solution: The businesses in Mexico. Thomas Friedman ing and science. He points the finger Bipartisan Secret Behind American says our NAFTA partner hears the “giant at ineffective preparation in our high Prosperity contrasts the vibrant, com- sucking sound” in stereo. schools, which is partly true; yet after petition-driven American economy Welcome to Thomas Friedman’s saying American education is faulty, his of the 1990s with the oligopolistic, new book, The World Is Flat. In it, he suggestion is to make two more years inflation-prone one of the 1970s. posits three historic periods of global of it mandatory or at least tax-funded. Economist Paul London, deputy development — the age of discovery Change is necessary, but more money under secretary of commerce for and colonization, followed by a period and longer duration are not adequate economics and statistics in the Clin- Friedman, “There is no real end to what of business consolidation and growth can be done by whom;” indeed, Ameri- solutions to problems in our academic ton administration, uses anecdotes across national boundaries, and now culture. and examples to show how both can CPAs now routinely farm out routine dawning on an age of information trans- U.S. tax returns to accountants in India, Friedman has three Pulitzer Prizes Republicans and Democrats helped fer and knowledge workers, spread out and now four best-sellers about global- bring down the oligopolies and MRIs are being read and interpreted by and settled in wherever an Internet con- “nighthawk” doctors in Australia, and ization’s impact. He brings together a monopolies by backing open trade, nection can be made. As the traditional terrific collection of interviews, some of supporting antitrust, and ending even the work of CEOs’ personal assis- model of vertically integrated, heavily tants is being handled by contractors in them almost profound, with everyone price fixing in key industries. He hierarchical corporations converts to a from CEOs to call-center operators. tells the story of how the courts and Asia. Even inside our country, the same horizontal and collaborative network of technology is showing up at McDonald’s Unfortunately, the book is marred by politicians helped competitors chal- contractors, partnerships, and offshore (drive-through orders in Missouri are a number of where-did-the-editor-go lenge the Big Three auto companies talent, Friedman says the world is flat- relayed through a Colorado call center), moments, like his observation at the and the United Auto Workers; Big tening, and barriers to trade, culture, and Wal-Mart (which has linked its suppli- Bangalore campus of Infosys: Steel and the steelworkers union; thought are coming down. Not everyone ers’ factory schedules with Wal-Mart’s ”Young Indian engineers, men airlines and their unions; AT&T likes it, though. checkout line). and women, walk briskly from build- and the Communications Workers Friedman describes 10 “flatten- If Friedman’s first wave was the ing to building, dangling ID badges. of America; the trucking companies ers,” recent developments in society globalization of nations and the second, One looked like he could do my taxes. and the Teamsters; the established and culture, business, and most of all, the globalization of companies, then the Another looked like she could take my eastern financial institutions; and technology, which are “leveling the present is the globalization of the indi- computer apart. And a third looked like even powerful local retailing inter- playing field” among portions of the vidual. One entrepreneur with a needed she designed it!” ests. America’s future prosperity, developing world and the business service and a good website can compete Such condescension is simply London argues, will require political giants of America, Japan, and Europe. against a multinational corporation; con- inexplicable, especially for an author leaders who are willing to take on These are the first link in a “triple con- versely, a worldwide company can now who obviously has great familiarity and these kinds of fights. See www. aei. vergence” of expanded infrastructure offer information and access tailored to appreciation for people of the develop- org/books for more details. (hardware, software, and network), each separate customer. It invites all par- ing, non-Western world. coupled with businesses adapting to ties to cross every boundary to find the Similarly, while stretching his • Using his exclusive access this change, and finally the emergence best services and suppliers regardless of theory to argue (jarringly) that it was pre- to previously classified documents, of thousands of engineers and scientists, the traditional business hierarchies and dicted by Karl Marx, Friedman intones Iranian defectors and officials, trained in China, India, or the former national borders. “In what is probably the key paragraph and high-level sources in the U.S. Soviet Union, who have the capability Friedman is excited about the pros- of The Communist Manifesto, Marx and government and intelligence com- of working from their homes instead of pects for developing nations and the rest Engels wrote … “ – and follows with munity, Kenneth Timmerman coming to America. of the world, too, but he points out that two paragraphs. His business-writer uncovers previously unreported “These new players are step- the time is past when anything could be neologisms are mostly benign, though I threats and America’s intelligence ping onto the playing field legacy free, done to deflect their competition: stumbled at “self-collaboration” – how failures in Countdown to Crisis: The meaning that many of them were so “It is too late for protectionism does one co-labor with oneself? Coming Nuclear Showdown with Iran. far behind they can leap right into the when it comes to China [for one exam- Still, that clumsy term encloses the To get the complete story on Iran’s new technologies without having to ple]. Its economy is totally interlinked key principles of Friedman’s “Globaliza- radical Islamic regime, Timmerman worry about all the sunken costs of old with those of the developed world, tion 3.0,” and it provides the center for crisscrosses the globe, revealing systems,” Friedman says. One interview and trying to delink it would cause reflection on his theory. It is a world details of secret terrorist gather- noted that once General Electric, IBM, economic and geopolitical chaos that where technology allows corporations ings in Tehran; tense meetings in and Texas Instruments realized that for- could devastate the global economy. to collaborate without boundaries, and the White House; debriefings at an mer colleague Vijay could do the same Americans and Europeans will have to paradoxically elevates the power of the obscure CIA outpost in Azerbaijan; work from Mumbai after his work visa develop new business models that will individual on a broad scale; where big diplomatic face-offs in the Kremlin; ran out here — and be not only happier enable them to get the best out of China businesses act small, small concerns and many other spots along the way. and more productive, but much cheaper and cushion themselves against some look big, and the leverage of the single More at www.randomhouse.com/ in India than the United States — it was of the worst.” contributor or customer is multiplied. crown. CJ only a matter of time. Many countries are not ready for If Friedman’s right, there are interesting One Indian entrepreneur told this. Choking layers of bureaucracy, times ahead. No, under way. CJ CAROLINA August 2005 JOURNAL The Learning Curve 21 ‘Patriot’s History’ an Antidote to Politically Correct Accounts

• Larry Schweikart and Michael achievements in American history.” Allen: A Patriot’s History of the United [The authors] conclude that the Progressive Move- (More than a few historians find U.S. States; Sentinel; 2004; 928 pages; foreign policy in the 1840s to have been $29.95 ment, the New Deal, and the Great Society were often needlessly bellicose.) Communism, to Schweikart and By BURTON FOLSOM harmful to most groups of Americans. Allen, is not “just another political Guest Contributor system.” The authors expose its inher- HILLSDALE, Mich. ent flaws, and praise Reagan for his sively explains the rise of America, and entrepreneurship, and economic de- . S. history textbooks are impor- Strategic Defense Initiative. They quote directly challenges the endemic political velopment. Therefore, they regard it as tant because they are a bench- approvingly Vladimir Lukhim, former correctness in texts today. important consequences of economic mark of what we as a nation Soviet ambassador to the United States, Schweikart and Allen start by freedom that Andrew Carnegie and John Uvalue in our past and what we envision who said, “It’s clear SDI accelerated our praising character, hard work, and politi- D. Rockefeller were able to outproduce catastrophe by at least five years.” for our future. cal savvy. They were the building blocks the world in steel and oil—which then Schweikart and Allen avoid the After thumbing through a recent of American success. Because Americans drew millions of hard-working Euro- tendentiousness and simple-minded- batch of U.S. history texts, David Mc- had a Christian culture, they took the pean immigrants to America’s shores. ness of most texts. People are compli- Cullough, winner of the Pulitzer Prize, right to life, liberty, and property very In writing on the 20th century, cated and the authors let us know that. concluded that “most of them, it appears seriously. The Founders, Schweikart and Schweikart and Allen are critical of the Coolidge encouraged limited govern- to me, have been published in order to Allen remind us, wanted limited gov- growth of government. Many U.S. his- ment, but at the same time supported kill any interest that anyone might have ernment, and that limited government, tory texts are 1,000 pages that can be high tariffs. Our Declaration of Inde- in history.” What’s more, he discovered born in the 1700s, gave free reign to the condensed into 10 words: Businessmen pendence enshrined natural rights, but that “they’re often hilariously politically triumph of entrepreneurs in the 1800s, created problems; government repeat- we denied them for a century or more correct and they are not doing any good.” which helped build the United States edly moved in to solve them. Schweikart to most black Americans. Not surprisingly, students hate them and into a superpower in the 1900s. and Allen, however, conclude that the In explaining the success of the refuse to read them; used-book stores Most history texts are very weak in Progressive Movement, the New Deal, American experiment, Schweikart often refuse to buy them, or even to put analyzing economics and economic de- and the Great Society were often harm- and Allen, unlike many others, point one on their shelves. velopment. Few historians understand ful to most groups of Americans, rich not to vast fertile land and abundant Larry Schweikart and Michael how capitalism works and how govern- and poor alike. raw materials, but to “more important Allen, authors of A Patriots History of the ment intervention often stifles growth The progressive income tax is de- qualities: initiative, inventiveness, hope, United States, observed this trend and and hinders, in an unintended way, the scribed as “irrational antipathy toward optimism, and, above all, faith.” Also, tried to do better in writing their own very groups targeted for benefits. wealthy Americans.” Antitrust laws ever since the arrival of the Puritans, text. The result is a magnificent achieve- Schweikart and Allen, by contrast, produced “a burden of regulations Americans have had the vision that they ment—a readable narrative that persua- have published widely on banking, [that] fell on unintended groups.” By were to be a “city on a hill,” or to a later contrast, the tax cuts under Presidents generation that broke from England, Calvin Coolidge, John F. Kennedy, and the “last best hope for mankind.” Such Ronald Reagan boosted economic devel- a vision, the authors argue, help make opment and sparked the creation of new America greater than the sum of its industries. This is all shockingly “out parts, its resources and its people—“a of the mainstream” for most American beacon of liberty.” historians and reading that government This book is an excellent anti- economic policies usually backfire will dote to the myths and misconceptions be a jolt to all but a few students. that litter the typical American history In foreign policy, Schweikart and www.NCSPIN.com text. CJ Allen are controversial, but always in- teresting. They call American actions in Burton Folsom, Jr. is Charles Kline North Carolina’s most-watched political talk show Mexico and Oregon in the 1840s “a pair professor of history and management at of the most spectacular foreign policy appears on television stations across the state Hillsdale College.

But what if you miss it?

Now NC SPIN — featuring Carolina Journal’s John Hood, host Tom Campbell, and commentators from across the political spectrum — is now rebroadcast weekly on many fine radio stations across North Carolina:

Asheville WZNN AM 1350 Sundays 9:30am Durham WDNC AM 620 Sundays 8am Gastonia/Charlotte WZRH AM 960 Saturdays 1pm Goldsboro WGBR AM 1150 Sundays 4pm Greenville WNCT AM 1070 Wednesdays 6:30pm Kings Mountain WKMT AM 1220 Saturdays 8:30am Laurinburg WLLC AM 1300 Sundays 10am Monroe/Charlotte WXNC AM 1060 Sunday 7:30am Outer Banks WYND FM 97.1 Sundays 8am Raleigh WDNZ AM 570 Sundays 7am, 9am Rocky Mount WEED AM 1390 Mondays 9:30am Salisbury WSTP AM 1490 Saturdays 11am Smithfield WMPM AM 1270 Sundays 5pm Wilmington WAAV AM 980 Saturdays 12:30 pm

More stations are joining the network soon. Visit www.NCSPIN.com for updates. August 2005 CAROLINA 22 The Learning Curve JOURNAL

Short Takes on Culture Myths fall by wayside ‘Ocean’s Twelve’ a sordid mess ‘1776’ Definitely Pulitzer-Worthy • “Ocean’s Twelve” Fathers for being “men who did what • David McCullough: 1776; Simon & Warner Home Video was considered wrong, in order to do Schuster; 2005; 371 pp; $32. Directed by Stephen Soderbergh what they knew was right.” “National Treasure’s” campy By CHARLES DAVENPORT JR. didn’t exactly choose to see crew of treasure-seekers — besides Guest Contributor “Ocean’s Twelve” — instead, Cage, a national archivist (Diane Kru- GREENSBORO I chose to be on Northwest ger) and an ubiquitous techno-geek f David McCullough’s books were IAirlines Flight 26, which led to the (Justin Bartha) — have a contagious required reading in high school and opportunity. enthusiasm for American history and college, late-night television would The film is a sequel to the 2001 Revolutionary trivia. Ibe deprived of one of its most amusing remake of “Ocean’s Eleven,” and Cheesy dialogue and predict- (and appalling) features: the dumb-man- reunites George Clooney as retired able plot-twists notwithstanding, on-the-street interview. While it may big-time thief Danny Ocean with a “National Treasure” is easily a worth- entertain us to see our fellow citizens large cast of associates in crime, facing while rental for family movie night. humiliate themselves by suggesting that two big problems: boredom with the — JENNA ASHLEY ROBINSON Abraham Lincoln was our first president, straight life, and a persuasive demand or that the Civil War took place in 1972, for restitution ($19 million each) from the frivolity is short-lived. In truth, the casino owner they ripped off in profound ignorance of our history is the the last movie. Gordon: a compelling liberal norm rather than the exception, and this To try and extend their now- is no laughing matter. shortened life expectancy, the gang • “News & Notes” McCullough’s latest offering, embarks on a series of daring burglar- Hosted by Ed Gordon 1776, is a nonfiction work of history ies. Their efforts are hampered by a National Public Radio that reads like a suspense novel. Even competing criminal genius (Vincent well-informed readers familiar with odds. During the lengthy stalemate at Cassel) on the one hand and a ro- No ideology has more impact on the story’s fairy-tale ending will find Boston in January 1776, he wrote the mantically-disappointed detective the national debate over policy and themselves engrossed in and enlight- following: “If I shall be able to rise (Catherine Zeta-Jones) on the other politics than the 1960s’ social justice ened by these pages. New information superior to these, and many other dif- — the former lover of one of the gang, movement. The beliefs central to that abounds, and several myths fall by the ficulties which might be enumerated, I played by Brad Pitt. thinking are served up weekdays wayside. (The Hessians at Trenton, for shall most religiously believe that the Unfortunately in this case the on NPR’s “News & Notes with Ed instance, were neither drunk nor hung- finger of Providence is in it, to blind the bad guys win, because that’s all there Gordon.” The program bills itself as over.) McCullough has been awarded eyes of our enemies; for surely if we get are. Theft is theft, and outsmarting dedicated to the interests and con- two Pulitzer Prizes for good reason: well through this month, it must be for another crook to steal the goods first cerns of African-Americans. His style is congenial to the reader, and want of their knowing the disadvantages is still larceny. The first few times I tuned in, his exhaustive research is immediately we suffer.” “Ocean’s Twelve” places the I fought the urge to switch stations apparent. The Revolution’s darkest hour was audience in the position of cheering after hearing the “more government It is difficult to imagine a challenge early December, 1776. The Continen- for the failure of law enforcement, help is the solution” mantra that runs more daunting than that faced by the tals had suffered multiple defeats — a rejoicing in the triumph of the smil- through many discussions. That’s Continental Army in 1776. George Wash- couple of them disastrous and directly ing felon, and searching for honor also why I continue to listen. By ington’s military force had virtually no attributable to Washington’s strategic among thieves. understanding what’s at the heart of money, a measly supply of gunpowder, blunders. Washington’s battle-ready It’s philosophically unsupport- the Left’s beliefs, conservatives can no uniforms, and no naval capac- force had dwindled to 6,000 men, and able, and ultimately devolves into effectively rebut the arguments. ity. His slovenly, undisciplined troops Americans in droves were signing a a sordid mess — even if the seat is Pacing makes or breaks a radio were ravaged by “camp fever,” and British proclamation that renewed reserved and the pretzels free. show, and “News & Notes” is brisk. even at the highest levels of command, the signer’s allegiance to the Crown. — HAL YOUNG Its most interesting segments fea- the Continentals were inexperienced. Writes McCullough, “Congress had fled ture guests debating an issue with Washington’s second-in-command, [Philadelphia]. Two former members of Gordon, a journalist whose resume Nathanael Greene, was an asthmatic Congress, Joseph Galloway and Andrew includes stops at BET, NBC and CBS. bookworm hobbled by a childhood ac- Allen, had gone over to the enemy. By Family friendly ‘Treasure’ Civil rights, racism, and economic cident. Everything he knew of warfare, all reasonable signs, the war was over disparities regularly weave their way he learned from reading. and the Americans had lost.” • “National Treasure” into the show. Usually sandwiched The British, on the other hand, were Washington, desperate to swing Walt Disney Home Video among the liberals is a conservative well-financed, disciplined profession- the momentum, conceived a “brilliant Directed by Jon Turteltaub whose opinions are challenged, and als. For these neatly uniformed troops, stroke” that culminated in the shocking sometimes dismissed. arms and gunpowder were in abundant American rout of Hessian forces at Tren- Conspiracy theories about the In a recent appearance author supply. The Redcoats were reinforced by ton. McCullough’s exquisitely detailed Founding Fathers and the Freema- and academic John McWhorter, a thousands of Hessian warriors, ruthless account of the Delaware crossing and sons might sound like documentary senior fellow at the Manhattan In- mercenaries renowned for their valor. the savagery of Trenton is a fine tribute fodder, but “National Treasure” deliv- stitute, confounded fellow guests by The British fleet was the most powerful to what is arguably the most important ers entertainment along with historic arguing that mainstream television naval force in the world. episode in American history. facts and fables in a fun movie suited no longer negatively stereotypes King George and his forces dis- McCullough has penned a lively, for the whole family. black Americans any more than it missed the Americans as “peasantry,” a suspenseful rendering of the Revolu- When so many movies are does other groups. The exchange “rabble in arms.” As noted by Redcoat tion — a volume that should generate unpatriotic or even blatantly anti- revealed the growing divide between Frederick Mackenzie, “Their odd figures another Pulitzer buzz for the author. American, it’s refreshing to watch one minorities entrenched in the group- frequently excited the laughter of our Perhaps the finger of Providence will in which American ideals are praised, think of the ‘60s, and those who reject soldiers.” The Redcoats’ low opinion of intervene once more, to ensure that 1776 America’s history is appreciated, victimhood. the rebels was perfectly rational. After falls into the hands of every American and her Founders extolled as heroes “News & Notes with Ed all, on paper, the Revolutionary War patriot. CJ — even if it is for guarding ancient Gordon” is compelling radio. It appeared to be one of the most glaring Masonic treasure. Nicolas Cage, in airs on NPR stations around North mismatches in military history. To wager Charles Davenport Jr. is an op-ed his role as pseudo-historian Benjamin Carolina. on the Americans, one would have to be columnist with the (Greensboro, NC) News Franklin Gates, toasts the Founding — DONNA MARTINEZ CJ a fool, a genius…or a fervent patriot. & Record. His e-mail address is daisha99@ Washington was aware of the long msn.com. CAROLINA August 2005 JOURNAL The Learning Curve 23 Lessons in Education From Danes, Dutch, and Aussies • David Salisbury and James Tooley, 80 percent to 85 of their tuition by Ludger Woessmann that presents his editors, What America Can Learn from percent of the tu- from tax dollars, statistical model of the effect of choice School Choice in Other Countries, Wash- ition with public while those in on student achievement. Using interna- ington, D.C.: The Cato Institute, 2005, dollars. Because wealthier areas tional test scores in math, science, and 236 pages. these dollars fol- may recover only reading, Woessmann found that stu- low students to a quarter of their dents scored about half-a-grade higher By JOHN HOOD their school of tuitions. for each standard deviation of increase Contributing Editor choice, thus giv- Salisbury in private-school enrollment. Also, he RALEIGH ing public schools and Tooley have found that if the share of government ardon me the somewhat-extrane- a strong incentive a s s e m b l e d a school spending going to private schools ous editorial comment, but I am to compete ef- wide assortment rose by a standard deviation, there was overflowing with good feelings fectively to retain of scholars in this an increase in math performance of Ptoward Denmark, the Netherlands, and them, Denmark’s book. For those 20 percentage points. Finally, using a Australia. For one thing, they have been choice program who worry that different school-specific measurement, stalwart supporters of the United States has resulted in vouchers will Woessmann concluded that it wasn’t on issues of national security and ter- a range of pub- endanger the in- so much how many students attended rorism, deploying troops and logistical lic and private dependence of private schools but how many did so support for the military coalition in Iraq. schools, and by private schools, with public subsidy that led to higher And for another, they offer American all accounts is there are authors test scores, which likely reflects the reformers important lessons in how to very popular in the book who extent to which choice programs give advance the cause of freedom in another with the public. support as well poorer students access to better schools context: education. There is an as dismiss this (wealthier students would seem more Defenders of the government- interesting contrast between the Dan- concern, citing international experience. likely to perform well regardless). school monopoly like to suggest that ish system and the choice program in Similarly, some of the authors favor a I can’t recommend this book too parental choice of schools is a wacky, the Netherlands, where private schools continued government role in funding highly for those interested in the school- untested idea. This is entirely false from play a much larger role in the education education (as I do) while others favor choice issue — pro or con. CJ an international and historical perspec- market — making up about two-thirds a complete separation of school and tive, as a new volume from the Cato of the country’s elementary and sec- state. What’s productive here is that Institute demonstrates. Editors David ondary enrollment. While in Denmark they disagree without being disagree- Hood is president of the John Locke Salisbury and James Tooley have come most parents, even given a subsidized able, giving plenty of food for thought Foundation and author of Selling the up with a set of invaluable essays, all of choice, seem satisfied with sending their on both sides. Dream: Why Advertising is Good Busi- which had their genesis in a conference children to government-owned schools, Perhaps my favorite essay is one ness, forthcoming from Praeger. that Cato conducted in Washington on most Dutch parents see better alterna- the subject about a year ago. tives in the private sector, either because What America Can Learn from of academics or because of other aspects School Choice in Other Countries is at its such as a religious environment, strong best when filling in the gaps that many discipline, or proximity. What creates proponents and opponents of parental benefits in both countries is the existence choice likely have in their understanding of that choice. of the empirical data on the issue. Australia’s choice system, which For example, Denmark has long al- also allows tax dollars to follow students Since 1991, Carolina Journal has provided thousands of readers each month lowed parents to choose public or private to secular or religious private schools, with in-depth reporting, informed analysis, and incisive commentary about the schools and still receive taxpayer funds has a unique element of redistribution. most pressing state and local issues in North Carolina. Now Carolina Journal to help defray much of the cost. Typi- Students attending private schools from has taken its trademark blend of news, analysis, and commentary to the air- cally, Danish students attending private poorer areas in the western part of the waves with Carolina Journal Radio. schools under the choice program cover country receive nearly full funding 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 program 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 11am Asheville WZNN AM 1350 Saturdays 1pm Boone/Lenoir/Hickory WXIT AM 1200 Sundays 12pm Burlington WBAG AM 1150 Saturdays 9 am Chapel Hill WCHL AM 1360 Saturdays 5pm Elizabeth City WGAI AM 560 Saturdays 6am Fayetteville WFNC AM 640 Saturdays 1pm Gastonia/Charlotte WZRH AM 960 Saturdays 1pm Goldsboro WGBR AM 1150 Saturdays 12pm Greenville/Washington WDLX AM 930 Saturdays 10am Hendersonville WHKP AM 1450 Sundays 5pm Jacksonville WJNC AM 1240 Sundays 7pm Lumberton WFNC FM 102.3 Saturdays 1pm Newport/New Bern WTKF FM 107.3 Sundays 7pm Salisbury WSTP AM 1490 Saturdays 11am Siler City WNCA AM 1570 Sundays 6 am Southern Pines WEEB AM 990 Wed. 8am Whiteville WTXY AM 1540 Tuesdays 10am Wilmington WAAV AM 980 Saturdays 1pm

For more information, visit www.CarolinaJournal.com/CJRadio August 2005 CAROLINA 24 Opinion JOURNAL

Commentary The Incentives Shell Game

he N.C. Commerce Depart- levy income taxes. In that case, any ment’s most-frequently used economic development offer made excuse for keeping informa- by the state would have been a Ttion about “economic incentive” sham. Despite that highly probable deals from the public and state development, North Carolina Gov. legislators — that the deals contain Mike Easley and the Commerce “trade secrets”— has been gutted. Department decided to offer the The bayonet wasn’t wielded by company incentives anyway. an opponent of the bribes — but The reformed legislation by the secretary of commerce of ostensibly would take care of part another Southeastern state. of that problem. It would require The secretary, who the Department of Rev- requested (for obvious enue to publish annual reasons) that he not be reports on the use of in- identified, said in a tele- centives. That would in- phone interview on July clude the total amount 22 that no corporate paid by the Commerce official, fearful of bring- Department for all ing on the destruction incentives the previous Editorial of his company, would year and an accounting share a trade secret with of the number of jobs Road Problems Start at theTop a government official, Richard companies created in Wagner or anyone else outside the state. Still missing, very two years, the N.C. Depart- projects get built in a timely manner. the organization. That however, is a foolproof ment of Transportation updates Too often that doesn’t happen under being the case, no company has method to determine how much its master list of projects. The North Carolina’s current funding alloca- ever divulged a trade secret to his income the company derived from Elatest iteration of the plan, commonly tion system, which allocates money by state, the official said. The veracity its North Carolina operations. An referred to as the TIP, was released in formula, not needs. of that information has long been innumerable variety of accounting July and highlights the problems in state The status quo simply lets some obvious to skeptics of economic gimmicks could foil any attempt by transportation policy. needs fall through the proverbial cracks. incentive deals that state officials state officials to do so. Simply put, the state is short- The NCDOT, for example, is widening offer to big companies. But con- There is a difference between changing its road-building programs, Interstate 85 to at least six lanes between firmation by a secretary of com- “trade secrets” and “confidential making bad decisions, and still having Kings Mountain and Durham. Except, merce that state officials are not information,” the anonymous too many politicos setting “priorities” perhaps, for the bridges over the Yadkin privy to trade secrets could have secretary said. Companies do ask that more resemble pork while legitimate River north of Salisbury. a significant impact on legislation that some sensitive information needs aren’t addressed. Big bridges are expensive and that currently is on hold in North be kept confidential temporarily. The overall outlook under the 2006 building wider spans over the Yadkin Carolina’s General Assembly. For example, that would include TIP for motorists isn’t encouraging. would use up the region’s road-building The legislation, Senate Bill negotiations on pending real estate Many of the state’s most critical road allotment for a considerable period of 393 sponsored by Democratic Sen. sales, the prices on which might projects are delayed in the new TIP, often time. So it’s a no can do, though it will David Hoyle of Gaston County and escalate if landowners knew where by several years. create a significant — and dangerous prompted by the North Carolina a company wanted to build a plant. The problems start at the top. — bottleneck. Press Association, would clarify But such confidential information State transportation money is a limited Further south, there’s the case of public records laws and require doesn’t qualify as a trade secret, he resource. Gov. Mike Easley is quick to I-485, the Charlotte Outer Belt. One of the state Department of Revenue said. proclaim how critical having a good the first sections built in the early 1990s to publish annual reports on the North Carolina’s headlong road network is to attracting businesses with only four lanes when more were use of economic development tax rush into the incentives racket un- to North Carolina. required; traffic now often goes at a incentives. The Senate approved der the Easley administration has Of course, this is the same Gov. blistering 25 mph during rush hour. the measure in June and sent it to already cost taxpayers hundreds Mike Easley who has raided the highway Widening 6.6 miles of interstate the House. The House Commerce of millions of dollars. And the total trust fund by hundreds of millions of for $38 million to fix the problem would Committee was to begin debate on continues to soar. dollars over the past two years to close seem to be a no-brainer; a relatively low the bill July 19, but Hoyle with- It’s time for the public, and the state’s budget deficit — which grew cost, easy-to-do improvement on a heav- drew it after Commerce officials state legislators, to be brought into worse because of unrestrained spending ily traveled highway. The project was complained that House legislators the deal-making process. As the on government boondoggles. finally included in the new TIP — with proposed stronger public-records public records law now stands, requirements. Hoyle did so to al- everyone except for a tight inner The fuzzy-headed decision-mak- work to begin in 2012. low Commerce officials more time circle in the Easley administra- ing isn’t limited to road building. The Its inclusion also set off a nasty to study the new requirements. tion is kept in the dark until the NCDOT has been considering starting political fight that reached the General Commerce officials, no doubt, are last minute. Then legislators are passenger rail service between Raleigh Assembly. Some politicians wanted the busy dreaming up new ways to pressured to approve these deals and Wilmington, which is a dubious road widened ASAP while others, espe- derail the legislation or to run out quickly, mostly on blind trust. proposition to begin with. cially those from northern Mecklenburg the clock on the legislative session. But now we know that the Faced with the key question of County, were concerned that widening The unidentified secretary of Department of Commerce and the how to route the trains, via Goldsboro the congested portion of the road would commerce also said that he decided governor know almost as little or Fayetteville, both of which had lob- delay the construction of the final por- against making a final offer to a about these deals as anyone else. bied hard for the route, the department tion of the interstate by a year in their corporation that North Carolina It’s a shell game that North Caro- decided not to make the call. Instead, it portion of the county. officials also were intensely court- lina can no longer afford to play. CJ decided that it will eventually run trains Until the state addresses the problems ing because he feared the com- over both routes between Raleigh and in how it selects and funds its transporta- pany would avoid paying taxes Wilmington. tion projects, there’s every reason to expect by transferring revenue made in Richard C. Wagner is the editor Just as important as not spending that future editions of the TIP will bring his state to other states that didn’t of Carolina Journal. money on bad, if often politically popu- equally disappointing news to the state’s lar projects, is assuring that necessary citizens. CJ CAROLINA August 2005 JOURNAL Opinion 25 Bad Sign for Tax Reform Commentary Don’t let anti-business attitudes scuttle rational tax proposals Property Rights are the Solution here’s a new debate in the North retailers have been receiving special tax n the aftermath of a controver- which hurts just about everyone in Carolina General Assembly that incentives in recent years, so now home sial U.S. Supreme Court deci- the long run. And the best solution demonstrates once again the builders deserve consideration. sion that upheld a government is, of course, to allow for individual Tperils facing any legitimate attempt at Those are some good arguments, Itaking of private property for the ownership of pastures so that one tax reform. assuming that you accept two prem- purposes of “economic develop- person’s overgrazing harms only For years, the statewide associa- ises: 1) inventories are not going to be ment,” there has been a lot of politi- himself, not other herders. tion for home builders has pushed for pulled back into the property-tax base, cal chatter about property rights. With resources such as air a measure to exempt just-developed but and 2) lawmakers are not going to stop Defenders of the court’s rul- and water, however, this approach unsold properties from being subject to subsidizing other businesses via special ing in the eminent domain is either problematic or local taxation. Currently, a new home is tax breaks. Just and uniform taxation case, Kelo v. New London, impossible. Plenty of assessed for property taxation regardless requires equal treatment for builders. argue that governments people own ponds or of whether it has been sold and occupied We’d add a third argument, derived from have to be able to over- lakes fully encircled by by residents. The same is true for other the benefit principle: since unoccupied ride the rights of property their land, in which case developer improvements, such as lay- houses by definition do not impose much owners in cases where the use of their water and ing streets in a new neighborhood. The in the way of service demands on local their intransigence might the critters within it can bill would end this practice, levying governments — no utilities, no kids in obstruct a project that remain pretty much their the full tax on developed property only public school or health clinics, only lim- will benefit the public by business. But for flowing after it is sold. ited need for police and fire response — it creating jobs or expanding or large bodies of wa- Paul Wilms, who lobbies for the makes sense that this class of property the tax base. Those excori- ter, you need a different association, said that a version of the should not be taxed at the same rate as ating the ruling reply that mechanism. One ap- bill has been introduced repeatedly occupied homes and buildings. eminent domain should proach — which is both since the early 1990s. The date is no On the con side, the best argument never be used to take land grounded in the tradi- accident. That was when inventories going is simply that local governments from one private party to tions of many sea-going were fully exempted from local property can’t afford the revenue hit. Others say give to another, and that cultures and in practice taxes. Previously, merchandise stored it’s a sop to wealthy developers who property rights serve as an impor- in many fisheries today — is to sell in warehouses prior to sale was subject don’t need it, regardless of any inherent tant obstacle to governments wield- tradable permits for the right to to taxation. fairness in the proposal. ing excessive power. fish. If catches for commercial sale It is a matter of fairness, according One can see a pattern developing This debate is important, are a better use of scarce fish stocks to bill sponsor Walter Dalton, a Demo- here. A tax bill is offered with a clear but I fear that it may leave too than attracting tourists through cratic senator from Rutherford County. policy rationale but because “business” many people with the impression recreational fishing, then the market “This is a builder’s inventory, and the benefits it is attacked as a “special that property rights are simply a for permits (or licenses, if you like) same logic should apply” as was the case break.” This doesn’t auger well for the blocking mechanism. Many policy will reflect that. If not, then the mix for manufacturers’ inventories, he said, prospects of serious tax reform in North dilemmas stem from a lack of clear, of users of the fishery will tend noting that manufacturing and even Carolina. CJ secure individual rights to use re- towards the recreational. sources. Property rights, or at least a What some North Carolinians semblance of them, are the solution, can’t seem to get past, however, is not the problem. the notion that they should have ‘Studies’ Aren’t Always Right Take fisheries. Confronted to pay anything in order to fish in with evidence of declining stocks lakes, streams, or the ocean. Don’t Science is a process that includes possibility of refutation of both freshwater and saltwater they have just as much right to do fish, North Carolina lawmakers so as their unlicensed parents and f there is one newspaper editorial Of the 45 cases studied, there were have responded with a series of grandparents did? you read this month, make it the 14 instances in which subsequent studies bills to require fishing licenses or Well, the need to come up July 15 piece in The Wall Street Journal contradicted rather than supported the make other changes. They’ve been with a rational policy today is just Ientitled “The More You Hear, The Less initial findings. For example, a study whipsawed by the spirited efforts of a reflection of scarcity. Perhaps it You Know.” found that hormone therapy reduced lobbyists representing commercial didn’t matter much who fished Essentially, it is a cautionary tale the incidence of coronary artery disease fishermen, recreational fishermen, where generations ago, when North about believing every news report you in women. But subsequent research and other interested groups. Carolina was sparsely populated. hear touting a “breakthrough new linked hormone therapy to an increased The dispute suffers from a But it does now. study” that “proves beyond a doubt” risk of coronary artery disease among lack of clarity about the source of As long as these systems something or other. The example here women. Somewhat less distressing was the problem: no one owns a private satisfy two key conditions — the is medical, but the same insight applies the example of Vitamin E, which initial property right in the fisheries. Thus right to fish must be tradable, and to many other fields of study, including research suggested might be useful as a the incentive is lacking for indi- the revenues generated must be public policy. heart protector but in subsequent studies vidual commercial or recreational dedicated to activities designed to The underlying paper, printed demonstrated little effect. interests to use the fisheries in a maintain the resource, not siphoned in the Journal of the American Medical The proper conclusion here is not way consistent with their long-term off to fund a general growth of Association, took a look at 49 widely that there are lots of incompetent sci- maintenance. government expenditure — they do touted studies reporting the results of entists out there fabricating results or The ecologist Garrett Hardin not constitute “over-regulation” or clinical trials. Of those 49, 45 purported publishing sloppy work. It is, instead, wrote a famous essay in Science “a tax increase,” as some opponents to provide evidence supporting the ef- that researchers, regulators, the media, magazine back in 1968 that be- have wrongly suggested. Instead, fectiveness of a medical intervention and the general public should look be- stowed a popular name on this in- they reflect the application of prop- — be it a pharmaceutical, a procedure, or fore they leap. sight: the tragedy of the commons. erty-rights thinking to a problem something else. The authors of the article The nature of science is to advance One of his examples was sheep- caused in large measure by its ab- considered whether follow-up studies propositions that may be disproved herding. If pastureland is held in sence. CJ had offered evidence supporting the through experiment but are not necessar- common — “owned” by a commu- original finding. That’s the way science ily proved by experiment, and certainly nity, in other words — then in fact is supposed to work: scientists form an not by a single experiment. no one owns it. Individual herders Hood is president of the John hypothesis based on existing evidence It is reasonable, therefore, to wait have a strong incentive to graze Locke Foundation, publisher of or inferences, then test the hypothesis for confirmation, to withhold judgment as many sheep as they can on the Carolina Journal.com, and host of the with a controlled experiment, then they and forego costly interventions and land, because otherwise someone statewide program “Carolina Journal or others attempt to replicate the findings alarmism until our knowledge base is else will. The result is overgrazing, Radio.” of the initial experiment. wider and deeper. CJ August 2005 CAROLINA 26 Opinion JOURNAL

Editorial Briefs

Women opt not to compete

uppose you could eliminate the factors often blamed for the shortage of women in high-paying jobs. Suppose that promotions Sand raises did not depend on pleasing sexist male bosses or putting in long nights and weekends away from home. Would women make as much as men? Economists recently tried to find out in an experiment by paying men and women to add up five numbers in their heads. At first they worked individually, doing as many sums as they could in five minutes and receiving 50 cents for each cor- rect answer. Then they competed in four-person tournaments, with the winner getting $2 per correct answer and the losers getting nothing. On average, the women made as much as the men under either system. But when they were offered a choice, most women declined to compete, even the ones who had done the best in the earlier rounds. Most men chose the tournament, even the ones who had done the worst. The men’s eagerness partly stemmed from overconfidence, because on average, men rated their ability more highly than the women rated theirs. But interviews and further experiments convinced the researchers, Muriel Niederle of Stanford and Lise Vesterlund of the University of On-The-Job Training Not Working For Frist Pittsburgh, that the gender gap wasn’t due mainly n the day before Christmas in 2002, U.S. used only under “extraordinary circumstances.” In to women’s insecurities about their abilities. It was Sen. Bill Frist was given an early present by other words, any judicial nominee that the president due to different appetites for competition. the White House and his fellow senators. brought forward had to pass muster with the “lib- “Even in tasks where they do well, women OHe was elected majority leader of the Senate on a eral” minority in the Senate. seem to shy away from competition, whereas conference call. It was the first time in the history of Now compounding Frist’s problems is the men seem to enjoy it too much,” Niederle said the Senate that a majority leader was elected over stalled and all-but-dead nomination of John Bolton to The New York Times. “The men who weren’t the telephone. for ambassador to the United Nations. good at this task lost a little money by choosing Frist, from Tennessee, replaced Sen. Three days after the “deal” on judicial to compete, and the really good women passed up Trent Lott as majority leader. Lott resigned nominations, and when the “feel-good a lot of money by not entering tournaments they after making remarks that the Left and the aura” of bipartisanship was supposedly would have won.” liberal elites deemed controversial at Sen. flowing through the Senate, Reid crushed Strom Thurmond’s 100th birthday party. the nomination of Bolton and refused to Lott was engulfed in a media frenzy and let the Senate confirm or reject him. in the view of many unfairly branded a Since then Frist has flip-flopped on States now pushing ‘Botaxes’ racist for the words he used to praise an the Bolton nomination, saying he planned aging colleague who had served his coun- no further votes to try and end the long- number of states are considering taxing Marc try with devotion. (Thurmond, by the way, Rotterman running Democratic filibuster. Then, after certain cosmetic surgery procedures, in- volunteered at age 38 for the paratroopers a chat with the president, he “reversed cluding face-lifts, tummy-tucks and Botox during World War II and was at D-Day). himself” by essentially saying that he Ainjections, reports The Wall Street Journal. Lott was hung out to dry, and Frist was the adminis- would keep trying to get the job done. New Jersey passed the first cosmetic surgery tration’s hand-picked successor. No later than the next day, Frist washed his tax law — dubbed “vanity taxes” or “Botaxes” by When it comes to carrying the mantle for the hands of Bolton, saying it is really between the some — last summer. Since then, lawmakers in White House’s agenda, Frist has a mixed record, at White House and senior Democratic Sens. Joe Texas, Illinois, Washington, Arkansas, Tennessee, best. On President Bush’s second-term signature is- Biden and Chris Dodd. Bolton, by the way, is just and New York have introduced bills or budget sue, the reform and restructuring of Social Security, the prescription that many conservatives believe is proposals to install similar taxes, although none he has been visibly absent, allowing the president’s the right tonic for a scandal-ridden United Nations. of those states has passed the taxes into law. bill to languish in the Senate Finance Committee. He is blunt and effective, and he is the president’s New Jersey’s law levies a 6 percent tax on a As early as Nov. 11, Frist made a speech sug- choice. litany of procedures, including hair transplants, gesting that Senate rules should be changed to ban Frist has made no secret that he has presiden- chemical peels, and liposuction. So a tummy tuck, filibusters of judicial nominees. That measure was tial ambitions. Another key test for him will be how which has an average national price tag of $4,505, commonly called the “nuclear” or “constitutional” he handles the fight for the President’s Supreme now costs an extra $270; a $376 Botox injection option. However, when the matter finally culmi- Court nominees. Conservatives can only hope that now costs nearly $23 more. New Jersey’s law and nated more than six months later, the “bipartisan Frist has learned to play hardball with the opposi- all of the other state proposals exempt medically gang of 14,” led by John McCain, drafted their own tion. necessary procedures or reconstructive work after accord that excluded Frist from the room and effec- Nothing is more important to conservatives disfiguring diseases, accidents, or birth defects. tively sacrificed several of Bush’s more conservative than the future direction of the Supreme Court. The New Jersey law already is spurring a judicial nominees. Should Frist fail to deliver on the president’s backlash. The tax hasn’t generated as much revenue Before the “McCain Mutiny,” victory was at nominees then the base of the Republican Party will as New Jersey originally hoped as patients either hand for the president, who had pledged to end surely disqualify him as a possible Republican stan- opt not to have the procedures done or go out of judicial activism. Frist had the 50 votes to pass the dard bearer for president. CJ state. When the tax was signed into law last June rule that would have permitted the majority to have it was expected to generate $24 million this fiscal an up-and-down vote on each judicial nominee. By year. State officials now think it will take in only not watching the store, he effectively allowed Senate Marc Rotterman is treasurer of The American $7 million. CJ Minority Leader Harry Reid and company to keep Conservative Union and a senior fellow at the John Locke the filibuster-veto with the promise that it would be Foundation. CAROLINA August 2005 JOURNAL Opinion 27 Dangerous Consequences of Politically Correct Math

By DR. KAREN PALASEK Beyond “innocent dumbing- on Western culture and accomplish- would not under any circumstances, RALEIGH down,” the new, new, new mathemat- ments, here are some of the items excepting destitute poverty and s the parent of a child about to ics is aggressively anti-West, anti-capi- Ravitch mentions: a text titled Re- welfare, place my child in a public enter college, and a college in- talist, and pro-multicultural socialist. thinking Mathematics: Teaching Social K-12 school at this point. I could not in structor myself, I am horrified Mathematics professors are promoting Justice By the Numbers, which includes good conscience sign my child’s mind Ato read the latest from Diane Ravitch, themselves as “critical theorists,” chapters called “Sweatshop Account- over to the state. There are a few won- education historian, on the advocating learning and ing,” “Chicanos Have Math in Their derful teachers out there, and many politicization of mathemat- using mathematics as “tra- Blood,” “Home Buying While Brown public schools fabulously equipped, ics. Granted, the humani- ditional ancestors” used it, or Black,” and others in this strait- but it’s not enough, not by a long ties have long been in the and recasting the curricu- jacket, antiwhite, antimarket mindset. stretch, in a system that is deliberately wasteland of the politically lum as tool for measuring These are in use, not wild pipe promoting mindlessness. correct and left-indoctri- social justice and injustice. dreams, and they will grow in use. As my own child, who achieved nating university faculties. The “critical theorists” Even a superficial look at the number a score of 5 on the Advanced Place- With the partial exception assert that students “will and breadth of social tasks with which ment test in Composition, and won of economics, the social learn math best if taught the schools have charged themselves one of three writing portfolio awards sciences are generally de- in ways that relate to their guarantees this. Teachers are already in a very tough writing curriculum, void of thinking, reasoning Karen ancestral culture.” using the “unit studies” — integrated noted after looking over the titles of faculties as well, leaving Palasek This approach would teaching of all subjects in a teaching course selections for college freshmen the hard sciences and math have us believe that we plan that revolves around a general in English, “I could never be an Eng- as the last bastions of logic and clarity are all imprinted pre-birth with some topic area — to try to cover the vast lish or a history major at this school.” in the university. No more. ancestral inclinations in the area of amount of social and cultural material She was audibly distraught, as In her Wall Street Journal “Ethno- math. If we want to be successful in they are charged with. this is one of the most prestigious mathematics,” Ravitch discusses how life (why should this be limited to just It’s but a small step to make the universities in North Carolina. I told mathematics is fast becoming a tool math?) we have to observe those incli- topic of that unit “Western Oppression her that I agreed, and that she’s lucky of the mind-twisting social program- nations in our teaching and methods of Other Cultures,” in spirit, if not in that she is planning a career in the sci- mers who want your kids not to think, with students. And I thought imprint- name. Now multicultural racists will ences. Now I’m not so confident. but to think the thoughts they put in ing was nature’s way of ensuring “prove” it, with numbers. (Ravitch Social and economic engineering their heads. Doing this with math, a that non-reasoning animals’ offspring calls this racism “particularism,” to — we’ve seen this before, with horify- discipline that almost everyone would don’t wander from the nest, lest they contrast it with the use of the populist ing results. CJ presume is pure and objective, is a come to believe that a U.S. Postal buzzword “pluralism.”) perfect and completely dishonest way truck is their mother. I myself have attended parochial to accomplish this, and it’s in your Should one doubt that the new schools as well as public school in the schools and playing with your child’s direction in math is turning toward a K-12 years. I’ve been a home-school Dr. Karen Palasek is assistant editor head now. divisive, ethnocentric feeding frenzy parent and a private-school parent. I of Carolina Journal. Adjusting Social Security: It’s All in the Indexing

By MICHAEL L. WALDEN years unless an adjustment is made, tions for change come in the second percent compared to a 27 percent in- RALEIGH and this adjustment is called indexing. way that indexing is used in Social crease for prices. So a shift from wage ave you heard about the ideas Indexing actually works in a Security. This comes in the way a indexing to price indexing would re- for changing the indexing of simple way. Some “index” is chosen person’s first Social Security payment duce a person’s initial Social Security Social Security? Does this that reflects how the value of dollars is calculated. payment, and since future payments Hsound like something only economists changes over time. This index is ap- Here’s the arithmetic on the first are based from that initial payment, and accountants could get excited plied to past dollars in order to make payment. The history of the person’s all future payments would also be about? Well, beware, because the pro- them comparable to today’s dollars. wage earnings is laid out. Since smaller. Some analysts estimate this posals to change the way So, for example, if the index past dollars have a higher purchas- one change would eliminate more Social Security payments value for some past year ing power than current dollars, past than two-thirds of Social Security’s are indexed could be the happened to be two, then dollars are indexed, meaning they projected financial shortfall. most significant element in this means a dollar in that are increased, in order to make them Also, there are proposals to in- the debate over the 70-year- past year really had the comparable to the purchasing power troduce the indexing on a sliding scale old retirement program; in- same purchasing power as of today’s dollars. Once a person’s with income. Lower-income house- deed, much more important two dollars today. past wage incomes are expressed in holds would still use wage index- than the clash over personal There are two places the purchasing power of today’s dol- ing, but the change to price indexing accounts. in Social Security where in- lars, an annual average is calculated, would gradually occur as income of First, what in the dexing is used. One is once and this average is used to determine the Social Security recipient rose. world is indexing? Indexing a person is already receiv- the individual’s initial Social Security Nevertheless, many Social addresses a common prob- ing Social Security. Here, payment. Security recipients would receive lem in economics — how to future payments received Stay with me! The index used to less under price indexing than with compare dollars in differ- by the person are indexed adjust those past dollars in the figur- wage indexing. But supporters of the ent years. The problem to account for price increas- ing of a person’s first Social Security change say this is not a cut if the al- arises because dollars usually decline es that have occurred. This means, payment is a wage index, not a price ternative is a bankrupt Social Security in their purchasing power over time. for instance, that a person receiv- index. The proposal floating around system. CJ Because of the trend of rising prices ing $1,000 a month this year would Washington is to drop the wage index from year to year — that is, inflation receive $1,030 monthly next year if the and use a price index for many retir- — a dollar this year buys less than a inflation rate for this year turns out to ees. dollar did 10 years ago, and it’s likely be 3 percent. The index used to make So, you might be thinking, what Michael L. Walden is a William a dollar 10 years in the future will this adjustment is the widely quoted difference does this make? It makes a Neal Reynolds distinguished professor purchase less than a dollar today. So Consumer Price Index. lot of difference because wages typi- in the Department of Agricultural and it is incorrect, financially speaking, to There are no proposals to change cally increase faster than prices. In the Resource Economics at North Carolina compare dollar amounts in different this indexing. Instead, the sugges- last 10 years, wage rates increased 39 State University. August 2005 C a r o l i n a 28 Parting Shot Journal Survey Sheds Light on UNC President Compensation (a CJ parody)

on parole. a minute. I remember that issue of By MITCH MONEYBAGS 4. John Hood. Quite a few conser- Playboy — Girls of the ACC. Make it RALEIGH vatives thought that John Locke Foun- $750,000.” ow that UNC President Molly dation President John Hood would be 8. Frank Ballance. Voters in his Broad has announced that she a good choice to head up UNC. When district who think that Ballance was will be leaving the position next asked about the prospect, Hood raised unfairly persecuted over picky little Nyear and a search for a successor is under an eyebrow and said, “I guess I’d do it things seem to have suggested his name way, the question has come up, “Just for $354,729, but only if I get to add a in large numbers. Ballance said that he’d how much do we need to pay to get a few courses to the curriculum, such as be happy to do the UNC president thing top-notch president?” Philosophical Conundrums of Star-Trek for the same amount as he used to get There has been talk of increasing and Comic Books as Genuine American paid to be a member of Congress, but the salary for the president from its Literature.” added that he wasn’t certain when he current level of $312,000 per year (plus 5. Phil Kirk. The esteemed chair- would be able to start. free house and car) to as much as half 1. Erskine Bowles. Bowles said man of North Carolina Citizens for Busi- 9. Jim Hunt. North Carolina’s a million. A big increase is supposedly he would take the job for a salary of $1 ness and Industry said, “I would take former governor was a popular choice. necessary so that UNC can compete for per year, as long as the position were the job for $500,000, but maybe as low When asked how much it would take to superstar college administrators. appointed. If it were ever made elective, as $200,000. Is it time for me to change lure him into the job of UNC president, But is it? The Raleigh-based Pope however, he’d need “more money than jobs again?” Hunt said, “Well, y’all know how much Center recently conducted a survey of Bill Gates has.” 6. Molly Broad. Quite a few North I like doing things that are for the chir- North Carolinians to come up with a list 2. Gov. Mike Easley. Easley said Carolinians apparently think Broad has run, and college kids are just sort of big of names of people whom foundation he would take the UNC presidency for done such an outstanding job that she chirrun, you know. Not sure I really want officers think should be considered for the same salary he’s paid as governor, ought to stay on as president. Asked the job, though. I might think about it at the job. From the list of more than 500 but he added two important conditions: about that, she said, “Well, if they’d $450,000.” names (after eliminating all fictional “The UNC President’s house has to be increase the salary to half a million, I 10. Mike Krzyzewski. Oddly characters and several household pets), relocated to Southport, and the car has might just consider it.” enough, Duke basketball coach Mike the foundation chose 10 well-known to be exchanged for a helicopter.” 7. Bill Clinton. The ex-president is Krzyzewski was suggested by a large individuals and contacted them to ask 3. Meg Scott Phipps. Phipps said very popular with many people in the number. Reached in his office at Cam- how much of a salary it would take to she was “tremendously flattered” that state who believe that the former Rhodes eron Indoor Stadium, Coach K laughed get them to consider the job of UNC she might be considered for the job of Scholar would be a good person to run hysterically for 10 minutes, then said, “I’d president. UNC president and that she would UNC. When asked about his interest, do it for ten million a year, provided that Here’s what the foundation gladly take the position at Molly Broad’s Clinton said, “Oh, I might think about I get to send Roy Williams back to Kan- learned: current salary as soon as Phipps is out it if they paid me a million a year. Wait sas.” CJ

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