INSIDE THIS ISSUE: DEPARTMENTS State may North Carolina 2 Local Government 10 end Yakdin CAROLINA Education 14 From Page 1 12 River dam Books & the Arts 17 fight with Interview 18 Alcoa /2 Opinion 20 JOURNALA MONTHLY JOURNAL OF NEWS, ANALYSIS, AND OPINION Parting Shot 24 FROM THE JOHN LOCKE FOUNDATION November 2015 Vol. 24 No. 11 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Amazon’s Wind Farm Links Nonexistent 2013, that mix was 41 percent nuclear, 37 percent coal, and 20 percent natural Energy still will come gas. Renewables including solar, wind, hydro, and biomass constituted the re- from local utilities maining 2 percent. “Amazon is one of many compa- using fossil fuels nies making misleading claims about how their facilities and operations are By Don Carrington powered,” said Travis Fisher, an econ- Executive Editor omist with the nonprofit Institute for RALEIGH Energy Research in Washington, D.C. hen Amazon Web Services, “These companies are connected to a division of online retailer the grid, which receives 86 percent of Amazon, announced in July its power from coal, natural gas, and Wits involvement in North Carolina’s nuclear. Wind and solar power are ex- first major wind farm, the company pensive and unreliable energy sources stated the power would be used for its and can’t be counted on to supply on- data centers in Northern Virginia, but demand electricity. That’s why these the centers will continue to purchase sources require costly mandates and electricity entirely from Dominion subsidies to prop them up. It’s for- Virginia Power, the public utility that These three buildings, totaling approximately 400,000 square feet, house computers tunate for Amazon’s customers that currently supplies the Amazon data and other equipment for Amazon Web Services. This complex is located near Dulles they’re connected to reliable sources centers. Airport in Ashburn, Va. (CJ photo by Don Carrington) of electricity and aren’t subject to wind energy’s fickle output.” While AWS has agreed to buy nal that Dominion is not involved in “This venture by Amazon does Amazon’s contention that the all the power from the 208-megawatt any arrangement giving AWS credit not involve us,” Genest told CJ. Ama- wind farm will make its data center wind farm being built and operated in on its power usage at its Virginia data zon is allowed to have “a wind farm operations “green” also may run afoul Pasquotank and Perquimans counties centers for electricity that is generated [built] for them that will provide en- of Federal Trade Commission guide- by Iberdrola Renewables, the power by the Amazon Wind Farm in North ergy directly onto the … grid system,” lines governing the use of such claims will be connected to the grid locally Carolina. Instead, the wind farm will he added. “Sorry I cannot be of more in corporate promotions. “It is decep- and cannot be plugged into the data be connected to a grid operated by help, but this is not our project.” tive to misrepresent, directly or by im- centers, which are 200 miles away. PJM Interconnection, a regional trans- The centers will continue to oper- Dominion Power spokesman mission organization, allowing AWS to ate with the same mix of fuel types that Dan Genest confirmed toCarolina Jour- resell the power. power other Dominion customers; in Continued as “Amazon,” Page 12 FTC: Green Misrepresentations a Problem PAID which has the authority to sue busi- RALEIGH, NC U.S. POSTAGE nesses that make fraudulent or decep- PERMIT NO. 1766 NONPROFIT ORG. Complaint filed tive advertising claims. Since 1992, the FTC has issued “Guides for the Use of about renewable Environmental Marketing Claims,” or Green Guides, as an attempt to moni- project in Vermont tor the truthfulness of advertising to By Don Carrington U.S. consumers interested in environ- Executive Editor mentally friendly or “green” products. RALEIGH The Green Guides “are not agen- mazon’s statement that its cy rules or regulations” but instead wind farm in northeastern “describe the types of environmen- North Carolina will provide tal claims the FTC may or may not electricityA for data centers located near find deceptive under Section 5 of the Washington Dulles International Air- FTC Act” and “are designed to help port, nearly 200 miles away, could be a marketers ensure that the claims they problem for the federal regulators that think their green claims mean and what make about the environmental attri- police corporate advertising and pro- consumers really understand are two butes of their products are truthful and motion. different things,” states a press release The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 “Sometimes what companies from the Federal Trade Commission, Continued as “FTC,” Page 13 PAGE 2 NOVEMBER 2015 | CAROLINA JOURNAL North Carolina C a r o l i n a State May End Yadkin River Dam Fight Against Alcoa DENR was prepared to issue the license in July 2013 until a last-minute intervention by the North Carolina Department Journal Water quality permit at dams of Administration caused a problem. DOA claimed that the riverbed belonged to the state rather than Alcoa. Rick Henderson Alcoa filed a complaint against DENR within the Of- Managing Editor could pave way to relicensing fice of Administrative Hearings. Administrative Law Judge By Rick Henderson Don Carrington Managing Editor Selina Brooks ruled in May 2015 that DENR was wrong to deny Alcoa’s water quality certificate based on the state’s Executive Editor RALEIGH new claim to ownership. She ordered DENR/DEQ to recon- nearly eight-year-long legal battle between the state sider the application. Mitch Kokai, Michael Lowrey of North Carolina and Alcoa Power Generating Inc. DEQ appealed the Brooks decision to the state Superi- Barry Smith, Kari Travis over four hydroelectric dams the company owns and or Court, where in September Judge Bryan Collins affirmed Dan Way operatesA on the Yadkin River may be coming to an end. her ruling and gave DEQ 30 days to process Alcoa’s applica- Associate Editors The state in late October issued a water quality per- tion for the license. mit to Alcoa, one of the final impediments preventing the “We’re pleased the court has reaffirmed what we’ve Kristen Blair, Roy Cordato company from receiving a known all along: the state Becki Gray, Sam A. Hieb new license from the Federal had no legal reason to deny Lindalyn Kakadelis, Troy Kickler Energy Regulatory Commis- our application. We urge the George Leef, Donna Martinez sion to continue operating Harry Painter, Jenna Ashley Robinson state to follow the judge’s the dams, known collective- order and quickly issue a Marc Rotterman, Jesse Saffron ly as the Yadkin Project. In Jay Schalin,Terry Stoops water quality certificate for recent weeks, the state had Andy Taylor, Michael Walden the Yadkin Project,” Barham Contributors lost rulings in state Superior told CJ after Collins’ ruling. Court and U.S. District Court DOA initiated a sepa- over the relicensing process. rate legal action in N.C. Su- Joseph Chesser, Zak Hasanin “We are pleased the perior Court in August 2013 Catherine Koniecsny, Charles Logan state of North Carolina has over ownership of the river- Austin Pruitt, Matt Shaeffer issued a water quality cer- bed. The following month, Interns tificate for the Yadkin Proj- Alcoa successfully had the ect and are in the process of case moved to federal court. reviewing it. The certificate Boyle ruled in May Published by clears the way to a FERC li- The John Locke Foundation that the state failed to prove 200 W. Morgan St., # 200 cense that will allow us to the Yadkin River was navi- Raleigh, N.C. 27601 implement enhanced water gable for commerce in 1789, (919) 828-3876 • Fax: 821-5117 quality technology and ad- The Falls Dam is one of four comprising Alcoa’s Yadkin River a claim the state believed www.JohnLocke.org ditional environmental and hydroelectric facilities. (CJ file photo) would help it gain owner- recreational benefits prom- ship of the “Relevant Seg- ised by the Relicensing Set- ment” of the riverbed. Jon Ham tlement Agreement. We have been good stewards of the On Sept. 28, Boyle ruled on the remaining issues in Vice President & Publisher watershed for nearly 100 years and remain committed to federal court. meeting North Carolina water quality standards,” said Ray “It is impossible not to notice the timing of this lawsuit. Kory Swanson Barham, Yadkin relicensing manager, in a statement. President The state did not file suit immediately upon learning that Alcoa has operated the dams since 1917, and its federal Alcoa claimed ownership of the property. Instead, it waited John Hood license expired in 2008. The company is operating the dams over seven years, until after Alcoa closed the Baden Works Chairman under a temporary license. It began the relicensing process aluminum smelting plant, to file suit. … The evidence, even in 2002, but in 2008 state officials began throwing obstacles viewed in the light most favorable to the state, overwhelm- in Alcoa’s way. Democratic Govs. Mike Easley and Bev Per- ingly demonstrates that Alcoa has title to the bed of the Rel- Charles S. Carter, Charles F. Fuller due and Republican Gov. Pat McCrory each had opposed evant Segment,” Boyle concluded. Bill Graham, John M. Hood the relicensing. They wanted the state to take over the dams Initially, the state suggested it would appeal Boyle’s Christine Mele, Baker A. Mitchell Jr. and operate the hydroelectric facilities. (See earlier Carolina ruling. “We are disappointed and disagree with the court’s Paul Slobodian, David Stover Journal news reports at http://bit.ly/1O1YQNU.) decision. We believe that these waters are vital to the state J.M Bryan Taylor After clearing several hurdles, in September 2012 Al- Board of Directors of North Carolina, and we are going to pursue all available coa submitted an application for a water quality certifica- remedies,” DOA spokesman Chris Mears told CJ at the time. Carolina Journal is tion to the North Carolina Department of Environment and Issuing the water quality permit, however, may indi- a monthly journal of news, Natural Resources, which recently was renamed the Depart- cate that the state’s pursuit of the Yadkin Project is over. CJ analysis, and commentary on ment of Environmental Quality. The certification is required state and local government under the Clean Water Act before the Federal Energy Regu- Executive Editor Don Carrington contributed additional and public policy issues in latory Commission can renew a license to operate the dams. reporting to this story. North Carolina. ©2015 by The John Locke Foundation Inc. All opinions expressed in bylined articles are those of the authors and do not necessarily Some Changes Coming to Carolina Journal reflect the views of the editors of CJ or the As Carolina Journal enters its before local newspapers offered their present our news, analysis, and com- staff and board of the John Locke Foundation. Material published herein may be reprinted as second quarter century, you’ll be see- content online, but readers can get mentary in a manner that is easier to long as appropriate credit is given. Submis- ing some changes — some subtle, that information much more quickly read, easier to share via email or so- sions and letters are welcome and should be others more significant — making our than we can provide it. cial media, and easier to search the directed to the editor. print and online materials more cur- We will maintain our commit- thousands of stories we have cov- To subscribe, call 919-828-3876. Readers rent and more relevant. ment to providing in-depth investi- ered over the past quarter century. also can request Carolina Journal Weekly The initial change is reflected gative reporting on state and local We hope you’ll continue to Report, delivered each weekend by e-mail, in this month’s print edition. We are government, but we also are commit- find Carolina Journal and Carolina- or visit CarolinaJournal.com for news, links, ending two features — Cherokee to ting more of our efforts to real-time Journal.com indispensible sources and exclusive content updated each weekday. Currituck and Town and County — coverage of breaking stories. Within of insights and information on North Those interested in education, economics, higher education, health care or local govern- that summarized materials from other the next few months, we will launch a Carolina politics and policy, and ment also can ask to receive weekly e-letters news sources. They were appropri- significantly improved CarolinaJour- look forward to the exciting changes covering these issues. ate to carry in a statewide publication nal.com website. This new site will ahead. — The editors NOVEMBER 2015 | CAROLINA JOURNAL PAGE 3 North Carolina Wind Farm Officials Differ on Need for Taxpayer Subsidies

By Dan Way did not have a support staff in Ra- Associate Editor leigh,” Griffin said. RALEIGH “When our staff would call [the espite earlier claims by Iber- Department of Environmental Qual- drola Renewables officials that ity] for help, nobody on staff could the $400 million Amazon Wind help,” Griffin said. County officials got FarmD that will cover 22 acres near Eliz- the same lack of assistance from other abeth City would be built totally from state agencies, he said. company funds, another Iberdrola of- “I think the policy has listened ficial says the project requires some tax to the industry instead of going out incentives to be viable economically into the communities to find out actual for the company. needs,” Griffin said. “There’s some- At a recent meeting of the North thing wrong with the system here.” Carolina Energy Policy Council, Eric DEQ Secretary Donald van der Thumma, Iberdrola Renewables di- Vaart said current law requires his rector of policy and regulatory affairs, agency to issue permits for wind proj- told members that wind power is be- ects, but this project predated the law and was grandfathered out of the pro- coming increasingly competitive with Craig Poff, a director of business development for Iberdrola Renewables, addresses cess. traditional electricity sources. a Sept. 16 meeting of the N.C. Energy Policy Council. (CJ photo by Dan Way) “We didn’t have any authority “If wind is so competitive today, vestment tax credit.” tank and Perquimans counties, and to provide input. We would be going do you still need the federal, state, and However, if the project, being that will make us the largest taxpayer forward with a new project,” van der local tax subsidies that you’re getting? built in Perquimans and Pasquotank in both of those counties by a pretty Vaart said. Would you build this project without counties, is operational by the end of good margin,” Poff said. Excavation has started for con- them?” asked council member John 2016, it could qualify for a 30 percent Tommy Harrell, a Perquimans struction on the 300-megawatt project, Brodman, an economist who is a re- federal tax credit. County farmer who opposes the wind Poff said. tired deputy assistant secretary at the Poff added that local tax abate- farm, asked Poff the amount of finan- “Late this year we’ll be focusing U.S. Energy Department. ment agreements “would be neces- cial benefits Iberdrola Renewables on road construction. Foundations will “This project clearly would not sary for any wind project in the state would receive from his county. begin in January of 2016” for substation happen without those support mecha- of North Carolina based on the way After refunds for investment and infrastructure in a 208 MW first phase, nisms. We’re not at a point yet where the business personal property taxes job creation, Iberdrola Renewables Poff said. Six to eight wind turbines we don’t need subsidies,” Thumma are assessed in North Carolina.” Poff would pay about $5,000 per turbine will arrive in late May, with construc- responded. said the state’s property tax structure per year, or about $250,000 in year one, tion commencing in late June. Their ro- That conflicts with a statement makes the state less competitive with Poff said. “We will be the largest tax- tor diameter is 374 feet, and at their tip Iberdrola Renewables spokesman Art other states in the region and nation- payer in Perquimans County by a fac- the turbines will be 492 feet tall. Sasse previously made to Carolina Jour- wide. tor of three.” “We will be commissioned and nal that “there are no incentives at any Poff argued that the financial In light of the tax rebates, Harrell fully operational by the end of 2016,” level” for project development. inducement was more of “a tax issue asked how much existing power ca- he said. Craig Poff, Iberdrola Renewables than a renewable energy or project- pacity production would be replaced The project involves about 60 director of business development for level issue.” by renewable energy from the wind landowners who will receive some the Mid-Atlantic and Southeastern Due to an economic development farm. Online retailer Amazon is pur- $600,000 in lease payments annually. U.S., was quick to add: “There is no incentive grant, Iberdrola Renewables’ chasing the power for its data center in Thumma said availability of state subsidy there. That project does property taxes “will be about $500,000 northern Virginia. long-term contracts with fixed prices and access to markets through long- not qualify for the state [renewable] in- per year, split between both Pasquo- “I don’t know that anyone on term contracts make wind energy at- Earth could respond to that accurate- tractive to consumers, though Western ly,” Poff said. states are more likely to provide such Pasquotank County Commis- long-term contracts. sioner Lloyd Griffin said at the current He said wind “is increasingly Keep Up With tax value, the property on which the competitive with other resources,” and wind farm will be located normally as a free fuel source it would not get would generate about $1,001,500 in tax more expensive, unlike natural gas or State Government revenues per year. But the tax rebate fossil fuels, with prices that rise and would reduce the county’s tax collec- fall unpredictably on the market. Be sure to visit tions from the site to about $209,000 Amazon “was driven by some of CarolinaJournal. annually over 30 years. its environmental goals as well as the com often for the latest on what’s go- Griffin said he’s also troubled that competitiveness of the price we are of- North Carolina and Pasquotank and fering” in agreeing to buy the power ing on in state government. CJ writ- Perquimans counties “get zero oppor- produced at the facility, Thumma said. tunity for any sales tax or use tax off of “But lastly, the main driver has ers are posting several news stories this” because the power that the wind been renewable energy requirements farm would generate will be placed on in states,” he said. daily. And for real-time coverage of the electric grid in the Northeast. Site Of Iberdrola Renewables’ 14 work companies and other contractors projects in the eastern United States, breaking events, be sure to follow us are coming from out of state, he said. Thumma said, 11 “are built primar- Griffin said the Energy Policy ily to serve renewable energy require- on Twitter (addresses below). Council should provide more assistance ments” such as North Carolina’s Re- and guidance to local governments for newable Energy Portfolio Standard CAROLINA JOURNAL: http://www.twitter.com/CarolinaJournal these large-scale renewable projects. mandating, among other things, that JOHN LOCKE FOUNDATION: http://www.twitter.com/JohnLockeNC “As we moved through the pro- electric utilities purchase set percent- cess, the county commissioners, I feel, ages of renewable electricity. CJ PAGE 4 NOVEMBER 2015 | CAROLINA JOURNAL North Carolina Experts: Government Slowing Innovation in Medical Technology

By Dan Way Associate Editor GRAND RAPIDS, Mich. edical technology that seemed relegated to science fiction is at hand, but fast- Mmoving innovations are threatened by established interests and government regulations, said a panel of medical and academic experts at the State Poli- cy Network’s recent annual meeting in Grand Rapids, Mich. Health care in America is the clas- sic case of the fortress and the frontier, said Robert Graboyes, senior research fellow with the Mercatus Center at George Mason University in Arling- ton, Va., who made the same case ear- lier this year during a presentation at the John Locke Foundation. The “fortress” is paternalism and protectionism, as those blocking re- form “imagine every terrible thing that could ever happen ... and focus all of [their] efforts on protection,” Graboyes said. The “frontier” mentality says, “If you want innovation, you’ve got to let people take risks,” and don’t protect insiders against revolutionary think- ers. “The question is: How do we get Medical technology and policy experts wonder what the iPhone equivalent is for health care, and when it will be developed. health care out of the fortress and into the frontier?” Graboyes asked. nology into hospitals and insurance spend more quality time with the pa- ing obstetrician/gynecologist, said it Doing so will require looking providers. These institutions stand as tient, Hwang said. In the United King- is imperative to innovate in medicine, beyond the system of third-party pay- hurdles to less expensive technologi- dom, doctors can see 300 patients’ or- and technology is expanding access, ment by health insurers, Grayboyes cal advances, he said, thwarting “the ders per hour. “We actually have aims lowering costs, and treating and cur- said. Replacing Obamacare with con- democratization of health care” seen in to see 1,000 patients an hour” at far less ing diseases. servative ideas about high-risk insur- consumer-driven products and servic- cost using that technology. As an example, she said, a do- ance pools and selling insurance across es — including Uber, TurboTax, con- Aaron Dallek, CEO and co- it-yourself finger stick is being devel- state lines “is about as useful a device sumer banking, online trip booking, founder of Opternative, created a oped that can run blood through a ma- as buying and selling haircuts across car sales, and real estate purchases. smart phone application that allows chine to analyze personal risk factors state lines,” he said. “The question is what is that consumers needing eyeglasses or con- for things such as diabetes and heart “We need to get away from the iPhone equivalent in health care,” tact lenses to perform eye examina- disease. debate about insurance, because for Hwang said. Sophisticated tools with tions at home using a computer and a Advances in science allow per- 70 years that’s all we’ve talked about,” diagnostic software can be built into phone. sonalized health care instead of gov- Graboyes said. Responding to insur- a cell phone to conduct an electrocar- “These systems won’t forget to ernment-regulated, one-size-fits-all, ers’ interests simply redistributes re- diogram or ultrasound. Qualcomm ask the right questions,” which are population health delivery models, sources and attention from one patient is offering a $10 million prize to the based on accumulated health science Bryan said. to another. first company that data, Dallek said. “There is a huge disjunction designs a device “I think that this One concept Graboyes finds where science is taking us and where that can diagnose can be replicat- promising is a compact of nine (and policy seems to be taking us,” she said. 12 different condi- ‘Frontier’ approach ed across health potentially 11) states that has asked the She said public policy should in- tions simultane- care.” federal government to release them clude a safe harbor against devastating ously, similar to a said better suited to Doctors will from some regulations of the Afford- legal repercussions for entrepreneurs able Care Act, Medicare, and Medicaid. tricorder that “Star continue to have a medical progress and innovators developing medical And yet all of those states, except Trek” fans would role in providing devices that wind up having problems Utah, have “absolutely terrible state re- be familiar with. health care “long than ‘fortress’ in use, so long as the developers per- strictions on the practice of medicine” Hwang com- into the future,” formed due diligence, followed pub- that limit consumer options, Graboyes pares the current approach he said, but inex- said. “ s y n c h r o n o u s ” pensive, home- lished standards and procedures, and These states limit personal choic- mode of telemedi- based technology were not negligent. es and individual liberty by denying cine of talking to a frees a doctor to While there are amazing advanc- competition in telemedicine and for- doctor on the computer screen to hav- provide higher-quality care by cutting es with bionic prostheses, biochips, bidding nurse practitioners and other ing to go through a bank teller to use down on paperwork. and bio-implants, Bryan cautioned nonphysicians to perform some func- an ATM. “The doctor shouldn’t be your about “pretty scary” movements to ex- tions that state law limits to doctors. His company developed the secretary,” Dallek said. pand definitions of disease to include They also have restrictive certificate- “asynchronous” LEMONAID app that “We know that we’re going to people who are unhappy with their of-need laws that impede the opening asks a health care consumer to answer have a fight on our hands” from legacy DNA or the body that they were born of new specialty hospitals or purchas- all of the questions a doctor would providers, Dallek said. with. Other concerns include a possible ing medical equipment. ask, and puts the answers into a soft- Consumers should “challenge resurgence of eugenics and the nonre- Dr. Jason Hwang, chief medi- ware program that guides the patient your legislatures to open up the frontier” productive manipulation of genes. cal officer of Icebreaker Health, a San through the interview process. by removing regulations and controls “Let’s not give up on the idea Francisco-based company, said the “The heavy lifting is done by the that protect incumbent interests, Dallek that human beings are worth some- current health care model continues computer program” with such self-di- said. “This is what health care needs.” thing regardless of their deficits and to pack all of the expertise and tech- rected care, and allows the physician to Dr. Darcy Nikol Bryan, a practic- flaws,” Bryan said. CJ NOVEMBER 2015 | CAROLINA JOURNAL PAGE 5 North Carolina Conservatives Push For Reforms In the Criminal Justice System them use it to take trips and so forth so they’re just very reluctant to give up an Age of adulthood, inch on this,” said Levin. Former Virginia attorney general civil asset forfeiture Ken Cuccinelli also spoke at the event, and his comments mirrored Levin’s on civil asset forfeiture. head their concerns “I hate civil asset forfeiture,” By Dan Way Associate Editor Cuccinelli said. “I’m a rabid property rights guy,” which puts him at odds GRAND RAPIDS, Mich. with law enforcement, with which he nationally recognized criminal enjoys a close relationship. justice reformer is confident “You talk about violations of the North Carolina eventually will principles of liberty. It’s hard to find overturnA a state law allowing 16- and too many in the criminal justice arena 17-year-olds to be charged as adults, that are so badly abusive of individu- but acknowledges political resistance als with so little basis as civil asset for- to the proposal remains. feiture,” he said. “We’re continuing to work on The best way to end the abuse is raising the age of juvenile jurisdic- to place civil asset forfeiture proceeds tion,” said Marc Levin, director of the in a state’s general fund instead of al- Center for Effective Justice and Right lowing law enforcement to use it. Po- on Crime, a project of the Texas Public lice “are going to lose enthusiasm very Policy Foundation, the American Con- quickly” for confiscating property un- servative Union Foundation, and the Marc Levin, director of the Center for Effective Justice and Right on Crime, a project der that scenario, he said. of the Texas Public Policy Foundation, the American Conservative Union Foundation, Prison Fellowship, at the State Policy Cuccinelli said “government is Network’s annual meeting in Grand and the Prison Fellowship, during a 2012 interview at the John Locke Foundation. out of control in many ways” and took Rapids, Mich, in September. (CJ file photo) aim at the rapid increase of federal “I would feel fairly safe in pre- justice system. They get a permanent mate can borrow money to post bail, or laws. dicting that it will pass in the next few record for stealing even a candy bar,” get released on his own recognizance, He said he was “particularly in- years, but we just haven’t quite gotten Levin said. Raising the age to 18 would and parents might never know their there yet,” he said. censed about” criminal offenses that not prevent minors who commit rape, child was arrested. Levin noted the “great support” are established by regulatory agencies. murder, and other serious crimes from “It’s beneficial for a parent to of lead House sponsor Rep. Marilyn “Literally, bureaucrats are turning us being charged as an adult. know their 16-year-old has been ar- into criminals without the accountabil- Avila, R-Wake, but added that Senate rested,” said Levin. leader Phil Berger, R-Rockingham, has Some prosecutors oppose raising ity of an elected official of any kind,” the age, but Levin said it would ben- North Carolinians are unaffected Cuccinelli said. been skeptical of proposals introduced by another concern featured by the ses- in recent sessions. efit sheriffs. The federal Prison Rape “I actually think it would be bet- Elimination Act requires county jails sion: civil asset forfeiture. ter not to allow agencies to establish Levin, who has written a report Civil asset forfeiture occurs when for the John Locke Foundation on juve- to provide separate quarters and pro- federal law. It is trampling individual grams for 16- and 17-year-old inmates a law enforcement agency seizes prop- liberties,” he said. nile justice reform, said North Carolina erty it claims is “ill-gotten gains” of because statistically they are far more He advocates a mens rea require- is one of only two states that treat 16- criminal activity even though the per- likely to be sexually molested by other ment in state statutes, providing those and 17-year-old offenders as adults in son whose property was taken has not inmates and staff. charged to use as a defense that they the criminal justice system. Eight states been charged with or convicted of a “So that’s very costly to have did not intend to commit a crime. Igno- allow 17-year-old minors to be charged crime. In many states, the property as adults. all these separate facilities and pro- never has to be returned. Criminal as- rance of the law is no defense, he not- “It produces terrible results to grams,” Levin said. set forfeiture occurs when a person has ed, but with the rise of so many laws put 16-year-olds in the adult criminal Currently, a 16- or 17-year-old in- been convicted and the property is on the books, in some cases, perhaps it considered part of the proceeds of the should be. crime. “It undermines the constitutional “The big problem is pretty much republic that we have here, because it in every state law enforcement can takes away accountability if unnamed, confiscate your property, your money, unseen elements of government can if you’re pulled over for speeding, turn you into a criminal, and that can’t if you’re going through an airport,” be allowed to happen in America, but Levin said. New Mexico banned civil it is happening,” Cuccinelli said. asset forfeiture this year, and lawmak- “There’s enormous swaths of Vir- ers in Oklahoma are considering a ban. ginia law that I will never know” after There ought to be protection two decades as a lawyer and serving against “the whole idea that police can as the attorney general, so the average seize your property not only before citizen would never know all the laws. you’re convicted, but then it’s the bur- While he believes public safety den of proof on you to get it back even “is the first priority of government, if you’re exonerated or you’re never whether it be national or state,” and charged,” Levin said. “we need prisons to protect our- In most states, half of the pro- selves,” he said criminal justice reform ceeds from asset forfeiture goes to is needed. the prosecutors, and half goes to the “Medicaid is the only part of police. North Carolina does not allow state budgets that has grown faster and civil asset forfeiture, and the proceeds more out of control than corrections,” collected from criminal fines go to the Cuccinelli said. public school district in the county “High recidivism means fail- where the case was prosecuted, reduc- ure. We are failing” to protect soci- ing the incentive for local police to be ety, budgets, “and individuals who overly aggressive. come into this system ... because “It’s a gravy train, and many of of their choices,” he said. CJ PAGE 6 NOVEMBER 2015 | CAROLINA JOURNAL North Carolina Lawmakers Consider Moves Easing Retiree Health Debt

insurance without a contract or with- out a competitive bidding process. Proposals include He said setting up a vendor ac- count to make automatic payroll de- consolidating ductions and to pay vendors costs about $1,080 per employee, with all those costs borne by taxpayers. Some insurance plans vendors have only one state employee By Barry Smith enrolled in their program. Associate Editor “This report is tremendously RALEIGH scary,” said Sen. Jeff Tarte, R-Mecklen- legislative oversight commit- burg. “This is embarrassing.” tee on Oct. 7 voted to consider Sen. Don Davis, D-Greene, asked measures aimed at reducing if there would be any cost associated Athe $25.5 billion unfunded liability in with moving the state to one supple- the state retiree health benefit fund, mental insurance committee. Grimes including shifting retirees to Medicare Sens. Jeff Tarte, R-Mecklenburg, at left, and Don Davis, D-Greene, discuss supple- responded that the state could make Advantage plans and increasing tax- mental insurance plans for state employees. (CJ photo by Barry Smith) the move with the staff that is already payer subsidies or employee contribu- in place. “The issue of whether retiree draft legislation with different options Rep. Nelson Dollar, R-Wake, tions to the fund. health benefits are entitled to the same to reduce the liability. The Legislative Program Evalua- legal protections as the [state Supreme The committee also took looked questioned the wisdom of moving to tion Oversight Committee learned that Court] has found for state pension ben- at supplemental insurance benefits, a central committee. “What do we lose moving to Medicare Advantage plans efits is the subject of a pending lawsuit such as dental, vision disability, can- when we centralize?” Dollar asked, could save up to $64 million a year. referred to as the Lake lawsuit,” Mc- cer, legal, and pet insurance. Employ- rhetorically. He said employees could Sen. Louis Pate, R-Wayne, noted, Gorty said. The state’s highest court ees pay for these supplemental plans lose benefits to match specific needs. at that pace, it would take many years has concluded that benefits promised through payroll deductions. Employees working in an office to cover the entire unfunded liability, to state employees when they are hired Jeff Grimes, senior program eval- may want different types of supple- which is the amount of money state are similar to entitlements and cannot uator for the division, recommended mental insurance than Department of taxpayers are obligated to pay in fu- be reduced so long as employees con- that the state scrap its current program Transportation workers on highway ture employee benefits that exceeds tinue working at the same jobs. of allowing various state agency in- crews, Dollar said. the cash on hand. Moving forward, McGorty said, surance committees to decide what Ardis Watkins, legislative affairs Retiring that liability would re- “these changes could be made for new supplemental plans are available for director for the State Employees As- quire “a lot of bake sales coming up,” hires without a threat of a lawsuit.” employees. sociation of North Carolina, also ques- Pate quipped. McGorty said the state accumu- Instead, he recommended that a tioned the move to a central commit- Kiernan McGorty, principal pro- lated this liability by adopting a “pay- single committee oversee all supple- tee. gram evaluator for the legislature’s as-you-go model,” paying for retiree mental insurance, providing a uniform “At the end of the day, we have Program Evaluation Division, told the health benefits in the year costs oc- system statewide. never been able to figure out how not committee that other options to reduce curred rather than building reserves. “The employee insurance com- having the employees choose the com- the liability include boosting annual In addition, she said the state has of- mittees are ineffective and have failed panies that have the products that tax payments to the fund, hiking pre- fered other perks, such as not requiring to manage the selection of supplemen- would uniquely suit their needs is the miums for active employees, or in- employees to pay premiums or copay- tal insurance products,” Grimes said. thing that makes sense,” Watkins said creasing the amount of money retirees ments for some benefit plans, along Grimes said more than half of after the meeting. She said the pro- pay for their insurance. with making benefits available to em- state agencies and universities do not posed alternative would allow bureau- McGorty cautioned that before ployees who retire before age 65 or ac- have employee insurance committees, crats in Raleigh to make supplemental lawmakers take any action, legal issues cept work outside state government. some committees did not meet last insurance decisions for correctional must be taken into account. The committee asked its staff to year, and many allow vendors to offer workers in Ashe County. CJ Locke, Jefferson and the Justices: Visit Foundations and Failures of the U.S. Government Carolina Journal Online By George M. Stephens

Preface by Newt Gingrich

“This book is about American politics and law; it is also about the roots of the Contract with America. A logical place to find the intent of the Founders is in Locke, [and] Stephens makes a contribution to highlighting this.” Newt Gingrich Former Speaker U.S. House of Representatives

http://carolinajournal.com Algora Publishing, New York (www.algora.com) NOVEMBER 2015 | CAROLINA JOURNAL PAGE 7 North Carolina Wake Newspaper Editor Finds State Payment System Hackable By Dan Way “this industrywide issue will be per- Associate Editor manently resolved” on Nov. 1, Vaught WAKE FOREST said. “The permanent solution has been Wake County small-business thoroughly tested, so there should be owner attempting to pay her no negative response as there was with employees’ withholding tax bill the earlier rollout.” Adiscovered that the state Department “The state absolutely has a re- of Revenue website was vulnerable to sponsibility to be aware … and should hackers. have been aware” that its system had A cybersecurity engineer said security weaknesses, said Bren Briggs, that vulnerability could have exposed a network and security engineer for the users of multiple state websites to a company in Florida and former Ra- identity and credit card theft. leigh resident who is familiar with the “Me as a taxpayer, I’m very con- situation at the DOR website. cerned about this,” Clellie Allen said “There [are] websites, forums, after identifying the agency’s inad- the U.S. Cyber Emergency Response equate security protocols. She is edi- Team does a pretty good job of pub- tor of The Wake Weekly in Wake Forest, lishing that sort of data,” as do LWN. which she and her husband run. net, the SANS Internet Storm Center She raised several alarms with watchdog organization, and any num- DOR in September after confirming ber of Twitter feeds, among other sites, through an online diagnostic tool that Briggs said. the agency’s website got an “F” rating The fact that Allen appears to be for security protection against a variety the first person to discover the problem of potential hack attacks. “means they weren’t really paying at- Among the potential attacks Al- Clellie Allen, editor of The Wake Weekly newspaper, checks the N.C. Department of tention, were they?” he said. len found were Logjam, which has Revenue payment site’s latest rating. (CJ photo by Dan Way) The state, he said, must be ex- tremely vigilant about watching for been identified since May, and Poodle, vulnerable, and the state had not post- Michelle Vaught, a state De- which was identified in 2014. vulnerabilities such as those Allen’s ed warnings to site users that their sen- partment of Information Technology research has exposed because the secu- “Why these things are not fixed sitive information could be imperiled. spokeswoman, disputed that the state rity protocol “is the front door to your is just unbelievable,” she said. “If this SSL Labs has a free online diag- websites are vulnerable, and said, “We house, and the Internet is a bad neigh- were a corporation ... you could expect nostic tool that flags vulnerabilities are not aware of any data being com- borhood. Would you leave your front [customers] to jump ship.” in a web address. SSL is an acronym promised.” door open in a bad neighborhood?” Even if none of the data has been for secure socket layer. That is the en- Although it is not publicized, A lot of state agencies might not breached, “it’s just irresponsible on the cryption protocol through which two Vaught said the state “partners rou- even be aware that it was an issue, he part of our state government” not to computers negotiate a secure connec- tinely with the FBI, [Department of] said. State governments “have a long upgrade protocols and warn custom- tion, making information unreadable Homeland Security, and the U.S. De- history of that problem.” ers they were at risk, Allen said. to others. partment of Defense, and is well aware What’s most at risk “is prob- She said the state Division of A secure connection is identified of security issues and vulnerabilities.” ably the individual user’s communica- Employment Security website also re- with “https” in the web address win- She said the state first became tion up to the server,” Briggs said. He ceives an “F” grade from SSL Labs for dow. Attacks against SSL still show the aware of the browser compatibility is- doubts widespread state government the level of protection it provides us- https security indicator. But they fool sue in June 2014, “at which time a plan data would be vulnerable via SSL at- ers. a server into thinking it is negotiating was put in place to remediate the vul- tack. In mid-October she demonstrat- the most secure setting, when the secu- nerabilities.” Hackers could watch an indi- ed for Carolina Journal that SSL Labs rity level actually is being downgraded However, Vaught said, there was vidual session “as though it was unen- still assessed both agency websites as to make it easier to infiltrate. “an extreme negative response” from crypted” and steal names, addresses, people who could no longer use cer- Social Security numbers, and credit The John Locke Foundation tain state applications because of their cards, Briggs said. outdated systems, such as the Inter- Encryption protocols or algo- presents net Explorer browser or Windows XP, rithms that are not changed frequently which many people continue to use. become weaker as advances in tech- Fred Barnes “This is why a revised plan was nology make it easier for hackers to discussing his co-authored new book developed by the state,” she said. break the codes. Jack Kemp: The Bleeding-Heart Conservative Who Changed America “Otherwise, people who still use these The SSL protocol, among the systems would not be able to pay taxes most widely used to manage private Join the John Locke Foundation for a look or use other tools on state websites.” data transmission, is one that has been at Kemp’s life and legacy with Fred Barnes The state conducted a risk assess- identified as vulnerable to attack, but of The Weekly Standard and Fox News ment, “and because the level of diffi- it is quick and easy to fix, Briggs said. Channel, co-author of the new book, Jack culty to exploit was extremely high, If the state system had been com- Kemp: The Bleeding-Heart Conservative promised, a user might not know until the vulnerability was deemed a lower Who Changed America. unapproved purchases started show- risk,” Vaught said. ing up on a credit card. “In fact, the National Vulner- Barnes will reflect on why Kemp had such And that might not happen im- an impact on economic conservatism, and ability Database [from the U.S. Depart- mediately. Identity theft is now “a why and how the economic theory that ment of Homeland Security] rated it commercial enterprise” for crime orga- helped restore America under Ronald Rea- as medium severity [not high] because nizations, especially in Eastern Europe gan was pioneered by a professional quar- a person would have to have special- and Russia, Briggs said. So a hacker terback turned congressman and cabinet ized knowledge and understanding might pull information on many credit secretary. in order to exploit the vulnerability,” cards from a site and sell them at some Vaught said. later date. Tuesday, Dec. 1, 2015, 12:00 p.m. In addition, the hack would have Since at least two North Caro- Doubletree by Hilton Raleigh – Brownstone to occur in an extremely narrow time lina agencies were identified as being 1707 Hillsborough Street, Raleigh Go to www.johnlocke.org/events to register frame, she said. prone to attack, it is conceivable oth- As part of the state’s action plan, ers were, too, Briggs said. CJ Hed here

PAGE 8 NOVEMBER 2015 | CAROLINA JOURNAL North Carolina JLF: REINS Act Could Help Restrain Regulation Costs costs in three categories: fees paid to have a ‘substantial’ economic impact,” er study authored by researchers from the state, spending in the state budget, he said. “Rather than go through the North Carolina State and Appalachian Separate report says and private-sector compliance costs. existing state rules review process, State universities suggests that the U.S. The $3.1 billion figure repre- those major rules would require a vote economy is about one-fourth the size rules could cost N.C. sented a “starting-point estimation,” from the General Assembly and the of its potential because of overly bur- according to BHI research. The analy- governor’s signature. Without that ap- densome regulations. $25 billion annually sis also found that compliance costs proval, the proposed rule would die.” “Costs imposed by regulation for the private sector were 44 percent Proposed rules that fall short of are especially burdensome on small By CJ Staff higher than fees and budget appro- the REINS threshold would continue businesses, which typically lack in- RALEIGH priations. to move through the existing state house legal and compliance staff to egulation costs already reach R e s e a r c h - rules review pro- help them navigate them all,” Sanders at least $3.1 billion annually ers urge cau- cess, Sanders said. said. “One study estimated that federal in North Carolina and might tion in using that That means legis- regulations cost large firms $7,755 per stretchR to as much as $25 billion. A new $3.1 billion total. lators would keep employee, while the same rules cost John Locke Foundation Policy Report They consider it their power to smaller firms $10,585 per employee.” focuses on a tool designed to “rein in” a “baseline” and kill smaller rules The John Locke Foundation’s state regulatory overreach. suggest that it is but would not be First In Freedom Index ranks North That tool is a state-level Regula- “likely extremely forced to address Carolina 36th among the 50 states, and tions from the Executive In Need of low,” largely be- every new rule No. 8 among 12 Southeastern states, Scrutiny, or REINS, Act. It’s an idea cause their analy- proposed for state in regulatory freedom. “Over the past approved in the U.S. House of Repre- sis includes no government. 15 years, the number of pages added sentatives for the federal government cost estimates for “It’s impor- to the North Carolina Register each fis- three times since 2011, including a vote several titles in tant to note that cal year averaged 2,405,” Sanders said. this summer. the administrative North Carolina’s “In the 1990s, the average was 2,282 “Like the federal proposal, a code. Nor was the Supreme Court pages.” REINS Act for North Carolina should BHI team able to warned back in Legislators have enacted a series estimate the “op- 1978 that the del- increase accountability for and trans- of regulatory reforms since 2011, in- portunity cost” of egation of legisla- parency in the regulatory process, re- cluding a valuable “sunset” provision complying with tive rule-making turn improperly delegated legislative in 2013 that subjects state rules to a authority, and bring about more care- regulations in- power to state periodic review, Sanders said. That re- fully crafted legislation and rules,” stead of devoting agencies should view determines whether rules should said report author Jon Sanders, JLF money to invest- be ‘closely moni- be maintained or repealed. director of regulatory studies. “Those ment, research tored,’” Sanders More work remains. The REINS outcomes should produce a less exu- and development, said. “Justices Act is one of a number of “sunrise” berant regulatory environment, which and production of wanted to ensure provisions that would limit overly the bulk of peer-reviewed economic good and services. that state agency literature suggests would encourage “Using one decisions were burdensome regulations before they’re a more exuberant rate of economic research method, North Carolina’s not arbitrary and unreasoned. They adopted, Sanders said. “Legislators growth.” state regulations cost the state econ- also wanted to ensure that state agen- also should consider such reforms as The regulatory cost estimates omy over $25 billion annually,” the cies were not asked to make important strong cost/benefit analysis, full con- come from the Beacon Hill Institute, BHI economists note. “For this rea- policy choices which might just as eas- sideration of alternatives to regulation, the research arm of the Department of son, we believe the actual total costs of ily be made by elected representatives and a rule requiring that two old rules Economics at Suffolk University in Bos- North Carolina’s state regulations run in the legislature.” should be retired for every new one en- ton. In an economic analysis released far higher than the figures presented Sanders’ report highlights mul- acted.” in conjunction with Sanders’ report, here.” tiple academic studies that point to the A state-level REINS Act should BHI researchers identified roughly Regardless of the actual figure, a negative economic impact of overly be the top priority. “The underly- 25,000 individual regulations in the 30 REINS Act would help North Carolina burdensome regulation. One study ing aim of REINS is a regulatory pro- Titles of North Carolina’s Administra- leaders avoid adding to them unneces- estimated that federal regulation cost cess that is more transparent, more tive Code. They narrowed their focus sarily, Sanders said. American consumers and businesses circumspect, and more account- to 10,000 rules applying to the private “REINS would offer extra scru- $1.88 trillion in 2014 in lost economic able to the people, who are the ulti- sector, then tried to gauge those rules’ tiny to proposed state rules that would productivity and higher prices. Anoth- mate authority,” Sanders said. CJ FIRST IN FREEDOM Transforming Ideas into Consequences for North Carolina In First in Freedom the John Locke Foundation’s president and research staff apply the timeless ideas of 20th-century con- servative thinkers to such 21st-century challenges as economic stagnation, tax and regulatory burdens, and educational medi- ocrity. To get your copy, go to JohnLockeStore.com. Cost: $10.

The John Locke Foundation, 200 W. Morgan St. Suite 200, Raleigh, NC, 27601 919-828-3876 • JohnLocke.org • CarolinaJournal.com • [email protected] NOVEMBER 2015 | CAROLINA JOURNAL PAGE 9 North Carolina Reformers Urge More Decentralized Immigration Model By Barry Smith glean [from] it that might be helpful,” sulting in lawlessness at the U.S.-Mex- federal government would retain im- Associate Editor Warren said. ican border, she said. portant roles in a decentralized system, GRAND RAPIDS, Mich. Shikha Dalmia, senior analyst While the United States has fo- such as doing background checks on he frustration with the failure at the libertarian Reason Foundation, cused on combating illegal immigra- people applying for visas and deciding of Congress to tackle immigra- said that comprehensive immigration tion, Canada instead has emphasized when applicants are eligible to become tion reform has prompted some reform at the federal level is dead for the methods used by its provinces citizens. He said legislation would be Tobservers to suggest that states look the foreseeable future. “Basically, the (analogous to U.S. states) to recruit the necessary at the federal level to autho- north for an example. reason is, no one immigrants with rize states to bring in foreign workers. At the recent annual meeting of trusts Washing- skills that they Originally, Bier suggested states the State Policy Network, experts from ton,” she said dur- want to recruit. could have a low cap, perhaps 5,000 Americans for Tax Reform, the Reason ing the meeting of Canadian system, “We have a year, with the number growing over Foundation, and the Niskanen Center SPN, an associa- started regard- time. Under a model he discussed, suggested that states push for adopt- tion of nonprofit which shifts ing immigrants states would have the option to ex- ing a Canadian model, which shifts au- think tanks and as enemies,” Dal- pand the number of visas they issue by thority for some immigration policies advocacy groups authority to mia said, noting 10 percent a year so long as they could to the state level. that work for pol- that federal and verify that at least 97 percent of the Under the program, the U.S. fed- icy changes at the state level, state governments workers who received permits com- eral government would still set some state level. The seen as model have instituted plied with all the legal requirements of basic immigration policy, such as run- John Locke Foun- or called for pro- their visas. ning background checks on applicants. dation is a member grams requiring Bier said he is attempting to re- But states would be given leeway in of SPN. electronic verifica- cruit a sponsor to introduce such a issuing visas and determining how “We’ve messed up for the last 15 tion of employee immigration status at program at the federal level, and is ap- many immigrants would qualify for years at the federal level on immigra- hiring, border fences, and other secu- proaching officials at the state level to work permits over certain time peri- tion,” said Alex Nowrasteh, immigra- rity measures. garner interest. ods. tion policy analyst at the Center for In Canada, provinces that don’t Warren said he did not think the N.C. Rep. Harry Warren, R-Row- Global Liberty and Prosperity at the want immigrants can turn them away, federal government is capable of get- an, who has sponsored a number of Cato Institute. Dalmia said. But doing so comes with ting a handle on the 11 million to 12 pieces of immigration-related bills in Dalmia said that currently the risks; companies may not wish to lo- million people in the United States il- the N.C. House, was unaware of the federal government isn’t issuing cate in provinces that restrict immigra- legally. proposal but intrigued by it. enough visas to meet the demand for tion, she said. Controlling the number “You’re going to have to break “I’d sure like to look into it a little workers from other countries, leaving of immigrants admitted at the province it down into bite-sized steps,” Warren further to see if there’s something I can a gap. The gap breeds shortages, re- level allows those units of government said. He said that governments would to guard against unexpected drains on have to get a handle on how many public services. unauthorized immigrants are in each Dalmia suggested that if the state, who those illegal immigrants are, Stay in the know with the JLF blogs United States adopted a similar policy, and where they live. Visit our family of weblogs for immediate analysis and commentary on issues great and small it would turn “states into laboratories Warren said the immigration de- of democracy.” States might tend to bate has become emotional, noting that offer similar immigration policies, but he’s faced opposition to attempts to al- making such a move would be vol- low such immigrants the opportunity untary, based on incentives. A shift in to get a restricted identity document policy toward a local direction would cards or limited work permits. The Locker Room is the blog on the main JLF Web site. All JLF employees and many friends of the put Uncle Sam in a limited but defined Warren added that he expects any foundation post on this site every day: http://www.johnlocke.org/lockerroom/ space, she said. new federal policies on immigration David Bier, immigration policy are likely to come with enforcement analyst with the Niskanen Center, an- and implementation requirements that other libertarian think tank, agreed the will fall to the states. CJ

The Meck Deck is the JLF’s blog in Charlotte. Jeff Taylor blogs on this site and has made it a must-read for anyone interested in issues in the Queen City: http://charlotte.johnlocke.org/blog/

Piedmont Publius is the JLF’s blog in the Triad. Greensboro blogger and writer Sam A. Hieb mans the controls to keeps citizens updated on issues in the Triad: http://triad.johnlocke.org/blog/

The Wild West is the JLF’s blog in Western North Carolina. Asheville’s Leslee Kulba blogs in this site, designed to keep track of issues in the mountains of N.C.: http://western.johnlocke.org/blog/

The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 10 NOVEMBER 2015 | CAROLINA JOURNAL Local Government After ‘A Lot of Nothingness,’ Raleigh May Address Airbnb Soon

By Kari Travis happened. Going to meetings. Nothing complaints are filed — is the most logi- Associate Editor happened.” cal solution to managing Airbnb use RALEIGH Though the process has been while the city works to put new rules fter months of discussion about slow, Council member Russ Stephen- in place. how to legalize and regulate son — who says he uses Airbnb often The proposed rules that were ap- Airbnb and similar services in when he travels — thinks it is neces- proved by the Planning Commission in- ARaleigh, the full city council soon may sary to take more time while making clude: distinctions between residential decide to move the short-term rental these new rules. home and nonresidential home rentals, service out of legal limbo, based on a “I don’t think anybody’s drag- occupancy limits, parking regulations, rule change passed Oct. 27 by the city’s ging their feet,” Stephenson said. “I use restrictions that ban special events Planning Commission. hope they’re not dragging their feet. … or business transactions from taking Short-term lodging services cur- I am a proponent of Airbnb. But there place in Airbnb rental spaces, and spe- rently are illegal under Raleigh’s bed- is no advantage to us in walking into cific permit requirements for what the and-breakfast zoning rules, a fact that a situation where we’ve not thought it city now terms “short-term residential has led to confusion because it hasn’t through.” lodgings,” rather than “short-term res- been reported correctly in some me- Tensions inside city govern- idential rentals.” dia outlets, said Eric Braun, chairman ment about how to deal with Airbnb Those wanting to rent two rooms of the Planning Commission’s Text have slowed progress in completing or fewer will have to fill out a zoning Change Committee. the rules. Not all council members application with the city. Those seek- Zoning loopholes were brought have been open to the idea of legal- ing to rent three or more rooms — or to the city’s attention last year follow- izing Airbnb. Council member Kay their entire homes — will have to get ing an anonymous complaint lodged Crowder voiced strong opposition to a special-use permit from the city’s against Raleigh homeowner and Airb- Airbnb’s presence in Raleigh during Board of Adjustment. nb host Gregg Stebben. Stebben and his the council’s first discussion about The pending legalization of Airb- wife joined the online rental network the issue. nb is a step that will make a strong just for fun and looked into the city’s “This would be an absolute statement about Raleigh’s vision for zoning regulations prior to listing their nightmare,” Crowder said at the Dec. the future, Stebben said. room on Airbnb’s website. 2 meeting. “I don’t know how else to “If they don’t pass this, if they Raleigh Airbnb host Gregg Stebben says “I called the city Planning De- the city’s lengthy deliberations over the put it. In District D, where such as it is keep Airbnb illegal, what message do partment,” Stebben said. “I spent a legality of Airbnb have been “a lot of I already have issues going on, it just you think that’s going to send compa- long time on the phone with them, and nothingness.” (CJ photo by Kari Travis) wouldn’t be a win for the district.” nies who come here?” Stebben said. what they said was, ‘We don’t know if Carolina Journal asked Crowder if “Especially tech companies? You’re it’s legal or not. Go ahead and do it, be- The issue initially was heard by she had changed her opinion of Airb- going to be a tech CEO. You’re going to cause we’re not going to pull people’s the city council Dec. 2, 2014, and the nb. She declined to comment or an- book your flight. And then you’re go- listings and find them. We would only Airbnb discussion cycled through swer questions. ing to get your Uber. And then you’re show up at your door if someone com- many revisions before reaching the Stephenson, who said on Dec. 2 going to go book your Airbnb, and plained.’” Planning Department. that Raleigh should legalize short-term there’s not going to be any Airbnb. The complaint filed against Steb- Stebben, who has been to every rentals like Airbnb, initially joined What message does that send? Not ben and his wife — which assistant meeting since the start of the discus- Council member John Odom in call- good for business.” planning administrator Eric Hodge sion, says the process is taking longer ing for swift enforcement of existing The ordinance was sched- and assistant zoning administrator than it should. city code while new regulations were uled to be considered at the Nov. Robert Pearce said is one of only three “It’s been a lot of nothingness,” formed. 2 city council meeting, after press Airbnb violations on record — trig- Stebben said of the majority of Law Stephenson now says that the time. If the council does not ap- gered what has now been almost a and Public Safety, Planning Commit- city attorney’s proposal to notify short- prove the ordinance, it will return to yearlong discussion among city offi- tee, and Text Change Committee meet- term lodging owners through media the Law and Public Safety Commit- cials. ings. “Going to meetings. Nothing — and enforce the code only when tee for further revisions. CJ Subscribe to JLF’s Research Department Newsletters Go to http://www.johnlocke.org/key_account/ to sign up

Vice President for Re- Director of Research and Director of Regulatory Director of Fiscal Policy Health Policy Analyst Legal Policy Analyst Jon search and Resident Education Studies Terry Studies Jon Sanders’ Studies Sarah Curry’s Katherine Restrepo’s Guze’s weekly newsletter, Scholar Roy Cordato’s Stoops’ weekly newslet- weekly newsletter, Rights weekly newsletter, Fiscal weekly newsletter, Health Legal Update, focuses weekly newsletter, Eco- ter, Education Update, & Regulation Update, Update, discusses issues Care Update, focuses on on legal, constitutional, nomics & Environment focuses on the latest local, discusses current issues concerning North Carolina state and national issues and public safety policy Update, focuses on state, national, and inter- concerning regulations, government’s revenues, concerning health and hu- issues affecting North environmental issues, national trends in pre-K-12 rights, and freedom in budgets, taxes, and fiscal man services, health care Carolinians. and highlights relevant education politics, policy, North Carolina. projections. policy, and reform toward analysis done by the John and practice. a consumer-driven health Locke Foundation and care market. other think tanks, as well as items in the news. NOVEMBER 2015 | CAROLINA JOURNAL PAGE 11 Local Government

Court OKs NCGA Transfer COMMENTARY Charlotte Hipsters Of Asheville Water System Make Their Demands By Michael Lowrey different conclusion. “[I]n the present Associate Editor case, we need not reach whether the t was a protest that absolutely a firestorm of criticism earlier this RALEIGH Transfer Provision constitutes a ‘local no one in Charlotte saw com- year. he city of Asheville and custom- law,’” wrote Dillon. ing. A dive bar in a hip neigh- “You won’t be able to tell it ers living outside the city who “Rather, we hold that it is not borhoodI was to be replaced with from any other neighborhood in rely on Asheville for their drink- plain and clear and beyond reasonable an apartment building with more Charlotte,” said resident Caroline Ting water long have had a contentious doubt that the Transfer Provision falls retail space. Such redevelopment Hall to WCNC-TV. “The only relationship. The issue was again be- within the ambit of either prohibited plans usually aren’t very contro- reason I come here on a daily basis fore the state’s second-highest court subject identified by the trial court.” in October, this time over whether a versial in Charlotte — but this one is because of the uniqueness of the (Empasis in decision.) turned out to be. And though the neighborhood.” law passed in 2013 taking control of Dillon noted that litigation over the water system away from Asheville redevelopment project went for- Complaining on Facebook Asheville’s water system had estab- ward, the protest suggests a new about something is easy. Translat- could pass muster under the state’s lished that “the mere implication of constitution. type of millennial issue activism ing that into action is more dif- water or a water system in a legislative Though Asheville currently oper- that could have far-reaching im- ficult, but that’s what’s happened enactment does not necessitate a con- ates a water system, it does not provide pacts in the state’s rapidly growing and continues to happen in this clusion that it re- sewer services. urban areas. case. People actually lates to health and That instead is the Charlotte, the did speak against the sanitation in viola- responsibility of state’s largest city, is add- proposal before the The North Carolina Courts tion of the Consti- the Metropolitan ing population rapidly Charlotte City Council. tution.” Sewerage Dis- — nearly 80,000 people A workshop held several Examining trict of Buncombe between 2010 and 2014 months after the council the new law’s stat- County. In 2013, alone. In response, the approved the rezoning on the General As- ed purpose and text, the appeals city has seen a wave of how to preserve locally sembly passed new apartment construc- owned businesses that a local bill shift- court found that tion. Most of the new rent space in old build- ing control of the the law appeared apartment buildings ings drew more than 50 water authority to prioritize con- MICHAEL from the city to cerns about gov- popping up in the Queen LOWREY people and generated the MSD. ernance and the quality of services City look very much like considerable press atten- The city sued to block the trans- rendered over health and sanitation is- condos, featuring high- tion. fer, and in June 2014, Superior Court sues. Nor did the law “fall within the end finishes like granite This is different Judge Howard Manning held that the ambit of the phrase ‘relating to non- countertops, and carrying high from the usual rezoning protest, in statute violated three provisions of the navigable streams.’” monthly rents. They aren’t being that it involves a commercial, not state constitution: The city also claimed that the sold as condos, though, because residential, property and most of • It is a “local law” relating to transfer violated the “law of the land” the financing for condos dried up the people objecting don’t actually “health,” “sanitation,” and “non-navi- clause of the N.C. Constitution, in that after the housing bust. So for now, own houses nearby. At the same gable streams,” in violation of Article there was no “rational basis” to treat at least, apartments they shall be. time, it is reminiscent of more II, Section 24. Asheville differently from other mu- Unsurprisingly, the city of traditional restrictions on growth, • It constitutes an unlawful tak- nicipalities that operate water systems Charlotte really likes the idea of involving a group that “got theirs,” ing of Asheville’s property without just and that there was no “rational basis” such infill redevelopment. The found its niche, and wants to block compensation in violation of Article I, to transfer the water system from the city can’t expand out any more, so any changes. Sections 19 and 35. city to the MSD. it must expand up if it wishes to At some level, it’s difficult to • It violates Asheville’s rights un- The Appeals Court disagreed. grow its tax base. And that means take Hall and others like her too se- der the “law of the land” clause found “Asheville contends, and the trial tearing down old buildings and riously. Essentially, this amounts to in Article I, Section 19. replacing them with newer, bigger, people who hang out in trendy ar- The state appealed Manning’s court agreed, that the General Assem- ruling, which a three-judge panel of bly had no ‘rational’ basis for singling more expensive structures. eas asserting that they are entitled the N.C. Court of Appeals overturned. out Asheville in the Transfer Provi- This building spree of high- to prevent actual property own- “We disagree and hold that the sion,” wrote Dillon. end apartments is especially ers from doing things differently. Transfer Provision does not violate “Assuming that the Transfer Pro- noticeable in trendy, eclectic neigh- That’s difficult to defend economi- these constitutional provisions,” wrote vision has this effect, we believe that borhoods such as Southend, NoDa, cally or philosophically. Judge Chris Dillon for a unanimous the fact that the General Assembly ir- and Plaza Midwood, which are lo- As Bismarck said, though, Appeals Court. rationally singles out one municipality cated near but not in the city’s cen- “politics is the art of the possible.” Under North Carolina law, locali- in legislation merely means that the tral business district. These struc- If millennials continue having dif- ties are creations of the state, and the legislation is a ‘local’ law; it does not tures are not occupying vacant lots. ficulty making the transition from General Assembly retains the author- render the legislation unconstitutional, Whatever goes up in these areas renters to homeowners, and can’t re- ity to regulate towns and counties ex- per se.” replaces an existing building that’s ally afford to have kids, either, then cept to the degree that it conflicts with The city also claimed that it was being torn down, a building which we could see the rise of a new sort of the state or federal constitutions. entitled to compensation from the state might contain some elements that urban politics, one catering to spe- Since 1917, the N.C. Constitution for the value of the water system. The have made the area popular. cific concerns such as this. And in has prohibited the General Assembly Court of Appeals again disagreed, not- This very dynamic is upset- such a world, for better — or likely from enacting so-called “local” laws ing that in the 1923 case Trenton v. New ting some people who frequent worse — addressing the strong aver- that touch on any of 14 subjects, in- Jersey, the U.S. Supreme Court held that these neighborhoods. A proposal to sion to change by those who don’t cluding laws “relating to health [or] compensation in such circumstances tear down an old two-story com- have skin in the game may become sanitation” and laws “relating to non- was not necessary. The Appeals Court mercial building best known for a political imperative. CJ navigable streams.” Asheville contend- also noted that cases from the Minne- housing Tommy’s Pub in Plaza ed that the transfer, because it was in a sota and Pennsylvania supreme courts Midwood, a venerable dive bar Michael Lowrey is an associate local bill and related to both those top- had reached the same conclusion. along a main thoroughfare, set off editor of Carolina Journal. ics, was invalid. The case is City of Asheville v State The Court of Appeals came to a of North Carolina, (14-1255). CJ PAGE 12 NOVEMBER 2015 | CAROLINA JOURNAL From Page 1 Amazon Not Linked At All to Its N.C. Wind Farm Output Continued from Page 1 plication, that a product or package is made with renewable energy or that a service uses renewable energy,” the FTC’s Green Guides state. (See related story.) Amazon not talking CJ attempted to discuss the wind farm project with Amazon’s Global Communications operations manager, Mary Camarata, who asked for writ- ten questions. Among the questions CJ submitted include: How much power is currently consumed at the Virginia data centers? How much would AWS be paying Iberdrola for power? And what is the net cost to AWS for the project? “We don’t disclose that level of detail. Sorry,” Camarata responded. The environmental organiza- tion Greenpeace called out Amazon in an April 2014 report about electric- ity consumption at large data centers. “Among the major cloud providers, only Amazon refuses to provide any details on the energy performance and environmental impact associated with its operations,” stated the report. In November 2014, seven months Construction workers prepare the site off Swamp Road near Hertford, N.C., for a substation to serve the Amazon Wind Farm. after the Greenpeace report, AWS an- (CJ photo by Don Carrington) nounced a “commitment to achieve multibillion-dollar enterprise, plans electricity from 100 percent renewable the wind farm is 208 megawatts, that 100 percent renewable energy usage to hit a target of 40 percent renewable sources. At best, this claim is mislead- amount of power will be available for the global AWS infrastructure foot- usage before 2017, a milestone toward ing and deceptive. We cannot find a only when the wind is blowing from print,” according to the company’s its goal of one day operating solely on single instance of a large company ac- between 9 mph and 23 mph, based on website. renewable power,” wrote the Daily Ad- tually going ‘100 percent renewable.’ technical data from the turbine manu- “As of April 2015, approximately vance of Elizabeth City. The reality is that as long as these facturer. Wind speeds outside those 25 percent of the power consumed by “The project is expected to open companies are connected to the elec- ranges cause the output to drop sig- our global infrastructure comes from in December 2016 when it will supply tric grid, they still get the vast majority nificantly. renewable energy sources. By the end power to Amazon Web Service data of their electricity from conventional Iberdrola estimates the annual of 2016, we intend to reach 40 percent,” centers,” wrote Bloomberg Business. sources such as coal, natural gas, and output of the wind farm to be 670,000 states the website. The AWS website Amazon’s project is part of a na- nuclear power, and are therefore not megawatt hours, which it says will also states that a wind farm in Indi- tional push to power data centers with 100 percent renewable,” wrote Fisher. power more than 61,000 homes for ana, a solar farm on Virginia’s Eastern renewable energy sources. The online (See the report at http://bit. one year (10,983 kilowatt-hours per Shore, and the North Carolina project news source Data Center Knowledge ly/1LZZdbg.) home). Since there are 8,760 hours in will be completed by the end of 2016. summed up the situation after the a year, a facility operating at 100 per- project was announced: “It has be- The project cent capacity would generate 1,822,080 Others repeat Amazon claim come common practice for operators MWh. Because the wind is variable, Iberdrola Renewables LLC is the After the N.C. project was an- of data centers at Amazon’s scale to the company thus expects the wind U.S. division of corporate parent Iber- nounced in July, Amazon’s statements invest in renewable energy projects on farm to operate at 37 percent of capac- drola, a multinational energy company about its “commitment” to renewables utility grids that supply their facilities. ity (1,822,080 divided by 670,000). headquartered in Spain. The first phase spread when other organizations re- Since environmentalists started draw- of the Amazon Wind Farm will com- peated the claim that the wind farm ing public attention to the fact that the PJM grid prise 104 turbines, each with a 2 MW will supply the data center or centers. ubiquitous ‘cloud’ is powered mostly PJM Interconnection is a regional “The power generated by the by coal, Facebook, Microsoft, Ap- capacity, nearly 500 feet tall including the blades. The company may add as transmission organization that coor- wind farm, enough to power more ple, and now also Amazon followed dinates the movement of wholesale many as 46 additional turbines later. than 61,000 U.S. homes, will be sup- Google’s lead in making huge invest- electricity in all or part of Delaware, The turbines will be spread over plied exclusively to an Amazon data ments in clean-energy supply.” Illinois, Indiana, Kentucky, Maryland, about 20,000 acres in Pasquotank and center,” stated a July press release from IER, which analyzes the global Michigan, New Jersey, North Carolina, Perquimans counties, west of Elizabeth Gamesa, the wind turbine manufac- energy market, also has studied re- Ohio, Pennsylvania, Tennessee, Vir- City in northeastern North Carolina. turer that will produce 104 turbines for newable energy claims. ginia, West Virginia, and the District the project. In March, IER’s Fisher published Iberdrola Renewables’ effort to of Columbia. The North Carolina area “The Amazon Wind Farm U.S. an analysis titled “Busting the ‘100 develop a wind farm at this location is limited to the northeastern portion East, to be built in Perquimans and Percent Renewable’ Myth.” Fisher, began in 2009. The project came to of the state and is served by Domin- Pasquotank counties, will power the a former intern with the John Locke a halt in late 2011 when three public ion Power, electrical cooperatives, and online retailer’s cloud-computing di- Foundation, spent seven years as an utilities — Duke Energy, Dominion municipal utilities in the region. vision, Amazon Web Services, as part economist with the Federal Energy Energy, and Progress Energy — said PJM’s members include more of a corporate goal of achieving energy Regulatory Commission before joining they would not purchase power from than 900 companies involved in the sustainability,” wrote The News & Ob- IER. the facility because the rates Iberdrola generation and transmission of elec- server of Raleigh. “Many companies such as Apple would charge would be too high. “Amazon Web Services, itself a and Google claim that they get their While the maximum output of Continued as “Amazon,” Page 13 NOVEMBER 2015 | CAROLINA JOURNAL PAGE 13 From Page 1 Amazon Not Linked At All to Its N.C. Wind Farm Output

Continued from Page 12 A m a z o n of the morato- County, east of Elizabeth City, not far received an “F” rium was to al- from the Amazon Wind Farm. tricity, serving 61 million people in grade in the 2012 low the planning The total generating capacity of those states, according to its website. report’s sections board to receive the solar project is 52 MW, and the total PJM, Iberdrola, and Dominion on energy trans- citizen comments annual output is expected to be 123,000 Power in July 2012 signed an intercon- parency, infra- and review the nection service agreement — required MWh, enough to power more than structure and siting, and renewables existing ordinance that governs wind 8,200 homes for one year (15,000 KWh by the Federal Energy Regulatory and advocacy. facilities. Apex Clean Energy, based in per home). Operating at a 100 percent Commission — outlining the details The 2014 report stated that “Am- Charlottesville, Va., is considering the of how electricity will be connected to azon’s adoption of a 100 percent re- construction of a 300 MW project to be capacity, the project would generate PJM through transmission lines owned newable energy goal, while potentially named Timbermill Wind that would 455,520 MWh. So Capital Partners ex- by Dominion. Federal law requires Do- significant, lacks basic transparency be located in Perquimans and Chowan pects the solar project to operate at full minion to cooperate with companies and, unlike similar commitments from counties. capacity 27 percent of capacity (455,520 that want to generate electricity and Apple, Facebook, or Google, does not divided by 123,000). sell it. yet appear to be guiding Amazon’s in- D.C. to get N.C. solar? Under the agreement, GWU Greenpeace report vestment decisions toward renewable In June 2014, George Washington will receive approximately 86,000 energy and away from coal.” University, American University, and MWh, AU will receive 30,000 MWh, Greenpeace’s mission statement In the more recent report, Ama- George Washington University Hos- and GWU Hospital will receive ap- says the organization “is openly op- zon received another “F” grade for en- pital announced a renewable energy proximately 6,300 MWh. That would posed to nuclear, coal, and natural gas ergy transparency, a “C” for renewable project named Capital Partners Solar be enough to provide half of GWU’s as sources for electricity generation.” energy commitment and siting, and a Project “that brings solar power from and AU’s electricity demand and more It released a report in April 2014 titled “D” for renewable energy deployment North Carolina to the D. C. institutions, than a third of the hospital’s needs. and advocacy. Meantime, Apple, Face- “Clicking Clean: How Companies are showing that large organizations in an But those claims may be decep- Creating the Green Internet.” The re- book, and Google, which have data urban setting can meet energy needs centers in North Carolina, received tive, as the institutions will continue to port noted the explosive growth in the while significantly reducing their car- receive power from their current sup- use of the Internet and the significant “A” or “B” grades in all those catego- bon footprints by directly tapping off- plier using a mix of conventional and amount of electricity required to run ries. site solar energy,” a press release from renewable sources. Because Washing- the data centers that support it. George Washington University stated. Perquimans moratorium ton, D.C., is a deregulated electricity “Clicking Clean” notes that a The solar project, comprising market, the institutions will get credit 2012 Greenpeace report — “How While half of the Amazon Wind three solar installations, is being con- Clean is Your Cloud?” — concluded Farm project will be in Perquimans structed and operated by Duke En- on their electric bills for megawatt- that many companies were continu- County, area residents have expressed ergy even though it is located outside hours generated in North Carolina and ing to rely on “dirty” energy to operate concerns about another wind farm proj- Duke’s North Carolina service area. actually added to the PJM grid. data centers. Greenpeace claims that ect. On Oct. 5, the Perquimans County One location is complete, and the other None of this will be done in publicity resulting from the report led Board of Commissioners approved a two are scheduled for completion by real time, and none of the institu- a number of companies to commit to temporary moratorium on large-scale the end of the year. Duke has an agree- tions could operate on a power use 100 percent renewable energy to wind energy facilities. County Man- ment to put the power on the PJM source that was at capacity rough- operate their data centers. ager Frank Heath told CJ the purpose grid. The three sites are in Pasquotank ly 27 percent of the time. CJ FTC Concerned About Companies Misrepresenting ‘Green’ Claims

Continued from Page 1 “green” questionable if not mislead- The petition stated that GMP was Renewable Energy to build a wind ing. in violation of the FTC’s Green Guide farm in Texas that it says will power nondeceptive.” FTC spokesman Mitchell Katz for Renewable Energy Claims. all of its North American plants that The guides were revised in 1996, said his agency could not comment on GMP responded that the compa- manufacture home care and fabric care 1998, and 2012. the Amazon Wind Farm at this time. ny was in compliance with Vermont’s products. Those facilities make some The guides include a separate energy and environmental laws, its of the company’s best-known house- section for the use of renewable energy Recent FTC complaint statements were not deceptive, and the hold items, including Tide, Febreze, claims. According to the guides, “It is Claiming that Green Mountain Green Guides do not apply to GMP and Mr. Clean,” wrote the Times. deceptive to misrepresent, directly or Power Company was using deceptive and other public utilities. The wind farm is estimated to by implication, that a product or pack- trade practices in the marketing of re- In February 2015 the FTC wrote produce 370,0000 MWh of electricity age is made with renewable energy or newable energy to Vermont consum- GMP and stated that the agency was annually. P&G’s North American fa- that a service uses renewable energy. A ers, the Environmental and Natural still concerned about how GMP com- cilities use about 300,000 megawatt- marketer should not make unqualified Resources Law Clinic at the Vermont municates to the public about its re- hours annually. renewable energy claims, directly or Law School filed a petition in Sep- newable energy generation facilities. On Oct. 21, the Institute for En- by implication, if fossil fuel, or electric- tember 2014 with the FTC, asking the “Although no findings have been ergy Research published “Clean- ity derived from fossil fuel, is used to agency to investigate the company. made that these claims violate the law, ing Up Procter & Gamble’s Dirty PR power any part of the advertised ser- “GMP is representing to its cus- we urge GMP in the future to prevent Campaign,” an analysis of the Times vice, unless the marketer has matched tomers and to the public, through its any confusion by clearly communicat- story. Author Travis Fisher stated the such nonrenewable energy use with promotional materials, public state- ing the implications of its REC sales for company’s claim that one group of renewable energy certificates.” ments, and other communications that Vermont customers and REC purchas- plants would be powered fully by re- As Carolina Journal reported in a it is providing its customers with elec- ers,” wrote Enforcement Division asso- newable energy was false for two rea- related story, even after the Amazon tricity from renewable sources such as ciate director James A. Kohm. sons: “First, the wind does not blow Wind Farm becomes fully operational, commercial wind and solar projects, Procter & Gamble all the time and cannot be counted on the Amazon data centers in Virginia thereby reducing the customer’s car- to power Procter & Gamble’s plants. will continue receiving their electricity bon footprint and protecting the en- Based on a press release from the Second, Procter & Gamble is buying from Dominion Power and the mix of vironment,” stated the complaint. It household products company Procter electricity from a wind facility in Texas fuels Dominion uses now — in 2013, further explained that GMP was sell- & Gamble, an Oct. 15 New York Times that is on a completely different inter- that was 41 percent nuclear, 37 percent ing the Renewable Energy Certificates report stated that P&G planned to connection than Procter & Gamble’s coal, 20 percent natural gas, and 2 per- generated by those sources to out of operate a group of its factories using plants. This means that the electricity cent renewable — making Amazon’s state utilities and essentially double wind power. “The global consumer almost certainly will not reach Procter inferences that the data centers will be counting the renewable energy. products giant is teaming up with EDF & Gamble’s plants.” CJ PAGE 14 NOVEMBER 2015 | CAROLINA JOURNAL Education COMMENTARY Report: Needless Burdens Money Can’t Buy Teachers’ Love On N.C. For-Profit Schools By Jesse Saffron Under such an approach, schools f you watch the evening news All told, the average salary Contributor that have good track records in other broadcasts or read the local and compensation package for a Raleigh states would be exempt from most of paper, you have been told that teacher on a 10-month contract will orth Carolina is one of sev- the current rules. As for new, unproven moreI educators than ever are leav- near $60,000 this year, nearly $5,000 ing North Carolina to teach else- higher than the year before. eral states called out in a new institutions, AEI authors Andrew Kel- where because the N.C. General Despite the facts about edu- American Enterprise Institute ly, Kevin James, and Rooney Colum- Assembly “slashed” public school cator salary and benefits in North Nreport for imposing a cumbersome, in- bus suggest that they post guaranty funding. Most of these stories, Carolina, news outlets continue to effective process on the approval of for- bonds, giving them “skin in the game.” however, omit key facts and re- claim that the state’s supposedly profit, vocational, and online schools. The authors also say that states should search findings that would other- meager compensation has trig- “Inputs, Outcomes, Quality As- provide a system for students to make wise undermine their ideologically gered a mass “teacher exodus.” surance: A Closer Look at State Over- formal complaints. (North Carolina al- motivated tales of woe. Unfortunately, the typical consumer sight of Higher Education” reveals that ready has both policies in place.) The state legislature recently of mainstream news and opinion state policymakers have adopted bur- Once a new program has been approved an $8.5 billion K-12 often hears only those unbalanced, densome rules that authorized, the au- education budget. Compared to uninformed, and largely anecdotal may be restricting thors say, “a variety the amount of state funds spent by claims. market entry, stifling of general outcomes public North Carolina While lawmakers innovation, and in- measures — reten- schools last year, the cur- should not disregard adequately protect- tion and graduation rent budget represents an concerns about compen- increase of nearly $470 sation, research suggests ing consumers. rates, placement and million. Public schools that retaining high-quality For instance, earnings data for will use those additional educators and curbing the University of program graduates, dollars to add personnel, turnover demands school North Carolina [and] loan default invest in instructional leaders to implement system’s Board of or repayment rates, materials and programs, policies and practices that Governors has the to name a few exam- and increase salaries, improve teacher working following rules for ples — could serve particularly for classroom conditions. schools seeking to as early warning teachers. TERRY In her 2009 UNC- establish a physical signs of an institu- For example, it has STOOPS Chapel Hill doctoral presence in the state: tion failing to serve been reported widely that dissertation, “A Study Space as- its students well.” the budget provides a of the Impact of Salary signed for library That sug- $750 compensation bonus Supplements on Teacher usage should con- gestion, however, to state agency personnel, em- Turnover in North Carolina School vey a pleasant ployees of the University of North Districts,” Lillie Cox found a sta- would be problem- Carolina and community college tistically significant relationship and inviting at- atic in North Caro- systems, public school staff, and between teacher turnover and sal- mosphere and give a feeling of spa- lina, where control of state authori- approximately 94,000 state-paid ary changes for schools in western ciousness and quietness conducive to zation by the UNC system presents a educators. Carolina but nowhere else in the study. A central and single location serious conflict-of-interest issue. There Fewer have acknowledged state. When she surveyed teachers is desirable. The library should have is already evidence of a tendency on that tens of thousands of teachers who left one North Carolina school good lighting, adequate ventilation, the part of UNC officials to be not only will receive the bonus and a per- district, only around 20 percent of and proper temperature and humid- skeptical of for-profit schools’ qual- manent pay increase this year. The them cited salary and benefits as ity control. ity (in some cases, for good reason), legislature’s Fiscal Research Divi- their motivation. The remaining 80 In addition, the BOG requires but also to be concerned about such sion estimates that 29,000 educators, percent identified other reasons, prospective for-profit colleges to pro- schools’ impact on state universities’ nearly a third of the state’s teacher including the need for advance- vide extensive documentation regard- enrollment. Giving the UNC system’s work force, are in this group. ment, poor relationships with their ing faculty, course requirements, fi- Board of Governors, all political ap- All early-career educators will supervisors and colleagues, the nances, boards of trustees, health care pointees with strong incentives to pro- enjoy a $2,000 annual salary boost. school’s distance from home, and Experienced educators who move various other factors. offerings, and student counseling pro- mote the state’s public universities, the from one salary tier to another will A 2015 Pardee RAND Gradu- grams. Institutions pay for such paper- authority to, for instance, determine receive a permanent salary increase ate School dissertation, “Hello, work and data analysis, as well as for whether a for-profit school’s gradua- of between $3,000 and $3,500 annu- Goodbye: Three Perspectives on site visits and other evaluations con- tion rates are high enough would be ally. None of these figures accounts Public School District Staff Turn- ducted by the Board of Governors and ill-advised. for higher pay supplements pro- over,” agreed. Susan Burkhauser a review team. At any rate, “Incomes, Outcomes, vided by school districts, such as concluded that North Carolina But the monetary costs may be less Quality Assurance: A Closer Look the imprudent one granted to Wake teachers are more likely to remain in onerous than the time it takes for a pro- at State Oversight of Higher Educa- County educators this year. school if the principal has “a proven gram to be approved; it takes between tion” offers several solid proposals State funds for employee track record of improvements in six and 12 months for an application to that would reduce for-profit schools’ benefits also are rising. Over the last teacher working conditions.” be reviewed, and up to 18 months for an regulatory burden and open the door five years, the state’s average Social Lawmakers would be wise to institution to receive the go-ahead. for new participants. When in doubt, Security contribution increased by stick to the facts, ignore the noise, The rules can impose substantial however, the guide for policymakers 4 percent per teacher, while health develop budgets that make incre- costs on colleges and universities that should be transparency over regula- insurance received an 11 percent mental improvements to compen- boost. Teachers’ retirement contri- sation, and advance policies that want to build satellite campuses or tion, and innovation over protection- butions surged by over 50 percent. ensure North Carolina classrooms offer distance education programs in ism. As the UNC rules about lighting Overall, teachers received a 24 are great places for public school the Tar Heel State. That’s why, accord- in libraries show, regulatory bodies percent increase in their compensa- teachers. CJ ing to the AEI report, North Carolina rarely know when to limit their own tion package during this period. should instead adopt a “risk-based ap- power. CJ The average teacher will receive Terry Stoops is director of re- proach” focusing on “cases that pose over $15,600 in benefits during the search and education studies at the John the most risk to consumers, specifically Jesse Saffron is senior writer at the current school year. Locke Foundation. new market entrants or existing [insti- John W. Pope Center for Higher Education tutions] that raise red flags.” Policy. NOVEMBER 2015 | CAROLINA JOURNAL PAGE 15 Education Spellings Says She’s Ready to Tackle UNC System Challenges

By Kari Travis Associate Editor CHAPEL HILL igher education is changing rapidly, and the University of North Carolina system must adaptH accordingly, said former U.S. Secretary of Education Margaret Spell- ings, who was elected Oct. 23 to be the sixth president of the consolidated UNC system. Spellings, who served in the George W. Bush administration, is known best for leading the educa- tion department’s implementation of the No Child Left Behind Act in K-12 schools. She has less experience in higher education — and doesn’t hold an advanced degree — but says she is well-equipped for the new job and UNC System President-elect Margaret Spellings speaks at a board meeting on Oct. 23 shortly after being elected to head the says she expects the faculty and staff 17-campus consolidated UNC system. (CJ photo by Kari Travis) of UNC to respond well to her back- cussions about reform, was an impor- Even so, Stoops said, Spell- someone who has thought a lot about ground. tant step for higher education in the ings could be a formidable champion how universities can position them- “I’m someone who understands U.S., said Frederick Hess, director of for advocating new directions at the selves going forward, and I would public policy,” Spellings said at an education studies at the American En- 17-campus system. think that would be pretty welcome Oct. 23 press conference immediately terprise Institute. “Spellings clearly understands leadership.” following her election. “I understand “Secretaries of education should the strengths and weaknesses of higher Last year, in a Wall Street Journal advocacy, I understand how to bring be leading that conversation [about education in the United States,” Stoops op-ed column, Spellings outlined some people together around a shared mis- cost reform and accreditation], but said. “The question is whether she can of her thoughts about the future of sion, and I have a track record of do- there is a difference between leading persuade faculty, administrators, and higher education. She emphasized the ing that in my career. So I think there’s that conversation and trying to get the legislature to embrace and advance role of data and technology in Ameri- plenty of work for everybody, and I people focused on it, and trying to her vision for the UNC system.” can schools, and pointed out that edu- look forward to working with the fac- write federal regulations,” Hess said. There have been several chal- cation can be tailored to individual stu- ulty and the state to move toward a “I thought Margaret was on the right lenges along the way to Spellings’ elec- dents better when those tools are used shared cause.” side of that line.” tion, led by an intense protest from properly. Spellings’ more than three de- In contrast, Terry Stoops, director board and faculty members who said “The only reason we will not cades of experience in the education of research and education studies at the they were excluded from the presiden- reach this better place is if the status field should provide the tools to help John Locke Foundation, believes Spell- tial selection process. Former Board quo prevails,” Spellings wrote. “But her navigate the complexities of the ings’ commission was largely unsuc- of Governors chairman John Fenne- the market-oriented forces that have UNC system, several analysts say. cessful — despite the values it touted. bresque, who stepped down on from changed so much of our world — com- During Spellings’ tenure as sec- “While billed as ‘a blueprint for a the board Oct. 26 following an uproar petition, customization, technology, retary of education, she led the presi- 21st-century higher education system,’ over his handling of the presidential modern management, and customer dent’s Commission on Higher Educa- the commission’s final report is a foot- search, worked diligently to ensure focus — are too powerful for even an tion, a bipartisan group that included note in a decades-long effort to make Spellings’ election. entrenched educational establishment former North Carolina Gov. Jim Hunt. higher education widely attainable Reporters at Spellings’ press con- to resist.” The commission, which opened dis- and relevant,” Stoops said. ference asked her if the controversy “These principles also will would put a damper on her introduc- change our education systems,” Spell- tion to UNC’s board, faculty, and staff. ings continued. “In turn, those systems Spellings responded that she didn’t will well serve America’s diverse stu- think the situation put her at a disad- dent body, preparing each student for Keep Up With the a world that will require them to think vantage. “I would ask [the faculty] to give creatively, reason through problems, me a chance,” Spellings said. “And as and respond to fast-changing circum- stances.” General Assembly I said, I’m thrilled to be working with That evolution of the education them. We have much more in common system is fast becoming reality for than we do things that separate us — Be sure to visit CarolinaJournal.com UNC, Spellings said at her introductory including serving every single student press conference. And given time, she often for the latest on what’s going on dur- and citizen in the state to the best of hopes that learning the needs of UNC’s our ability.” students, faculty, administrators, and ing the North Carolina General Assembly. The call to common ground and board will help determine the new di- collaboration is not uncommon for rection the university should take. CJ writers are posting several news sto- Spellings, said Hess, citing her bipar- “I suspect the biggest challenges tisan record in the education depart- to this state are like those we’re seeing ries daily. And for real-time coverage of ment. The former secretary also excels in other states — affordability, access, in developing shared goals and in and completion,” Spellings said. “Let’s breaking events, be sure to follow us on fighting the status quo, qualities that agree what our goals are. Let’s find were sought by UNC board members out how we’re going to keep track of Twitter: since the presidential search began. that progress. How are we going to use “It seems to me that the president data, how are we going to use people, or chancellor of the university is some- how are we going to use time? Stu- CAROLINA JOURNAL: http://www.twitter.com/CarolinaJournal body who generally leads internally dents want good value propositions JOHN LOCKE FOUNDATION: http://www.twitter.com/JohnLockeNC at the table, taking the university in a and want convenience. And we are go- new direction,” said Hess. “Spellings is ing to meet those challenges.” CJ PAGE 16 NOVEMBER 2015 | CAROLINA JOURNAL Education Opinion Defenders of the Humanities Make the Wrong Appeals at Conference

he opening message was Unfortu- cational promise. lum. UNC-Chapel Hill’s chancellor, cheered roundly — it was ex- nately, at the event, That criticism cor- Carol Folt, said that the liberal arts actly what the crowd of roughly sponsored by Issues responds to Ross’ curriculum should adapt according to 150T professors and alumni came to UNC-Chapel Hill’s and Tiemann’s ar- our “changing and evolving world.” hear on Oct. 10 at the “Public Univer- Program in the Hu- in guments about the Referencing issues such as campus sities, the Humanities, and Educa- manities and Hu- intangible benefits sexual assault, she said that students tion in North Carolina” event on the man Values of the Higher Education of the humanities are “facing a radically charged world” campus of the University of North College of Arts and and raises the issue and that a “liberal arts education that Carolina at Chapel Sciences, universi- of defining those is tailored to the way they think and Hill. ty leaders failed to subjects in a more act is more important now than ever In a more en- acknowledge those meaningful man- before.” lightened era, his- problems, much ner. For instance, Folt’s comments reveal a sub- tory professor and less take ownership of them. are liberal arts curricula to include stantial misunderstanding of what an event moderator There is some truth in the picture topics of minimal intellectual interest education should be. Education exists Lloyd Kramer said presented at the conference, however. or significance and, for instance, treat to pass on the wisdom, methods of in his introduc- Panelists spoke passionately and comic books as literature, or are they inquiry, and knowledge of the ages to tion, policymakers knowledgably about the ability of art to focus on the best and most impor- new generations. Her plea for a liberal were committed and literature to increase empathy and tant that has been written or said? arts education tailored to pop culture- to the liberal arts, human understanding and to improve Such concerns received scant devouring millennials, who read and as evidenced by JESSE students’ critical thinking and writing attention — and when they were study less than any previous college Congress’ creation SAFFRON skills. mentioned, the panelists came down generation and who frequently push of the National En- “From my experience, it is solidly on the side of current trends. for “trigger warnings” and “safe spac- dowments for the not possible to develop those skills Asked about how course≠work can es” to avoid hearing multiple views, Arts and Humani- without a liberal arts education,” said be changed to meet the needs of seems more like a call for educational ties in 1965. But today, he continued, UNC system presi- students, Claude devolution. higher education officials “must con- dent Thomas Ross. Clegg, an Afri- Chasing cultural “relevancy” to stantly defend the arts, creativity, [and Michael Tiemann, can-American cater to students would further erode the] humanities” against powerful vice president of and diaspora academic quality. The curriculum outside forces who conflate university open source affairs Chasing cultural studies professor needs to be reined in, not expanded. education with vocational training. at the software ‘relevancy’ at UNC-Chapel The failure of the event par- While such remarks may receive company Red Hat Hill, said, “The ticipants — Kramer, Ross, Tiemann, ringing endorsements when preach- and vice chair of will further curriculum of the Clegg, Folt, English professor Mari- ing to the academic “choir,” they the UNC School of future is one that anne Gingher, and finance professor do not do justice to the opposition’s the Arts Board of erode academic builds on the syn- Bill Moore — to go beyond the narrow argument. Heightened skepticism Trustees, said that ergies that can be establishment view of the humani- regarding the value of the humanities the convergence quality amassed in a sin- ties was disappointing. The audience and liberal arts is not just the result of art and science gle place to take — indeed, the entire state of North of external factors that are outside of “creates possibili- on [issues] facing Carolina — needed to hear the hard higher education’s control, such as ties in a somewhat humanity,” such truths about the current state of the economic malaise or policymakers’ organic and magical way that leads to as climate change. In other words, humanities, not idealized accounts of focus on work force training. Internal discoveries of things entirely un- education should be used to advance it. CJ problems related to debased curricula known.” a progressive political agenda. and hyperpoliticization, for instance, But, as suggested above, there Other panelists were less overtly Jesse Saffron is senior writer at the may be more harmful to the future of is serious criticism that is not based ideological but nevertheless expressed John W. Pope Center for Higher Educa- the humanities. solely on the humanities’ lack of vo- an unrestrained vision of the curricu- tion Policy. NOVEMBER 2015 | CAROLINA JOURNAL PAGE 17 North Carolina Rev. Wright, Obama’s Former Pastor, Maintains Fiery Rhetoric

By Dan Way ness flight, he said. Associate Editor But “that’s where the conversa- CHAPEL HILL tion breaks down most of the time he Rev. Jeremiah Wright told at- starting with … the African-American tendees of a Sept. 19 event at a president. Half African. He don’t talk progressive church in Chapel about reparations,” said Wright. Un- HillT that he is “giddily happy” with der the media glare and political liabil- the rise of the Black Lives Matter ity created by Wright’s inflammatory movement, blamed U.S. foreign policy rhetoric, after Obama was elected, he for the rise of ISIS, and took swipes at distanced himself from his pastor. President Obama for failing to push ra- Wright contended racism in cial reparations and at Donald Trump America is rooted in the nation’s for his stance on illegal immigration. founding, and its founding documents. Richard Edens, pastor of United The first Africans disembarked in Wil- Church of Chapel Hill, said Wright, liamsburg, Va., in 1619, he said. By the pastor emeritus of Trinity United 1630s, colonies were dealing with how Church of Christ in Chicago, where to classify and restrict babies born to Obama attended regularly for two de- interracial couples. cades, was invited to deliver “a trans- “The laws of the colonies of Eng- formative response to the latest call to land were not based on legal prec- be an anti-racism church, racial justice The Rev. Jeremiah Wright greets 94-year-old Hillsborough resident Marie Clarke edents, were not based on English church.” Torian at a Sept. 19 event at United Church of Chapel Hill. (CJ photo by Dan Way) Common Law, were not based on any related jurisprudence,” Wright said. Wright sang, played the piano, Israel,” but in the “Palestinian territory. “I am giddily happy” with the Racism was inserted into “the legal danced, drew peals of laughter with … What kind of God have you got that rise of the Black Lives [Matter] move- structure of all 13 colonies.” a series of humorous remarks, called would promise your ass my land?” He ment,” Wright said of the activist orga- As a result, he said, “The Consti- Israel an “illegal” nation, and mocked neglected to point out that Israel won nization. tution of the United States of America devotion to UNC basketball. the land where Bethlehem is located in The movement has been linked has sewn into it legally the fabric of Asked by an audience member the 1967 Six-Day War and gave it back to violent unrest and widespread van- racism.” for his views on immigration, Wright to the Palestinian Authority in 1995, as dalism in Ferguson, Mo., disrupting The 14th Amendment granted ridiculed Trump, the Republican presi- part of the Oslo peace accord. several Democratic presidential cam- citizenship to blacks, and the 15th dential front-runner. Wright also addressed “the geo- paign speeches, and anti-police march- Amendment “gave them the right to “I’ve heard Donald Trump say- political problems of this whole Syr- ers chanting “Pigs in a blanket, fry ’em vote that North Carolina has undone,” ing if you’re here illegally you need to ian problem that [the United States] like bacon” at the Minnesota State Fair. Wright said, an apparent reference to go back. Let’s start at the 1400s. We’re started, had it not been for what we Some critics have blamed the 2013 election law changes that have all immigrants,” Wright said. “Georgia did in attacking Iraq, which had noth- movement for inciting urban violence been challenged in federal court. was founded as a colony for criminals, ing to do with 9/11. We created ISIS. and assassinations against police offi- “I submit another world is pos- so let’s talk about immigration holis- We created the whole Syrian refugee cers. sible” than the one viewed through tically,” and “stop the B.S. about His- problem, the Sudanese refugee prob- “A lot of us forget … that the civil “the distorted lenses we are handed” panics.” lem,” similar to problems created in rights movement was young people through education and value systems Native Americans “have the this country, he said. just like these young people, and if of the dominant culture that cause same kind of theological questions,” “Hard, honest dialogue” is need- you think their language is harsh, y’all people to see differences in others as Wright said, as one of his Palestinian ed to bring about racial justice, he ought to hear” the rhetoric of the Stu- deficiencies, Wright said. Christian friends who is pastor of a said. “Let’s talk about white-on-white dent Nonviolent Coordinating Com- “We need to learn the cultures of church in Bethlehem. Wright said that crime” instead of focusing on black- mittee of the 1960s, which was led by those we walk beside. We need to learn Bethlehem is “not in the illegal state of on-black crime. current Georgia Democratic U.S. Rep. the faith traditions of others,” he said, John Lewis, Wright said. citing a 2002 controversy at UNC-Cha- “Let’s go back to what started pel Hill in the wake of the 9/11 terror- that movement,” he said of SNCC. ist attacks, when incoming freshmen “Young people saying, ‘Hell, no.’” So were required to read the book Ap- while the older generation scoffs at proaching the Qur’an: The Early Revela- Black Lives Matter, Wright said, “They tions by author Michael Sells. know exactly what they’re doing. You Then-UNC-Chapel Hill Chancel- [middle-age and older Americans] lor James Moeser wanted to address don’t know what you’re doing.” the situation that “most Christians in Wilma Liverpool of Durham North Carolina had not a clue about Is- asked Wright about his view on finan- lam, and the Christians had a stroke,” cial reparations for slavery. She said Wright said. that “300-plus years of free labor” cre- “The [chancellor] after one year ated “forced poverty,” and “until that was proud to report that there was not can be eradicated, I don’t see us being one conversion to Islam,” Wright said, one.” “and the primary faith at UNC was “Without reparations there can still basketball.” be no reconciliation,” Wright said. Marie Clarke Torian of Hillsbor- America won’t confess to the sins ough was representative of audience of slavery because “confession means reaction. repentance, but if you repent you’ve “I thought it was great,” the got to repay,” Wright said. 94-year-old said. Financial reparations should “I see what he was talking about come not as a check to individuals, but in building another world,” Torian in “structural things for generations to said. “I’m puzzled at how it’s going to come” such as eradicating slums cre- happen … but I think we’re approach- ated by restrictive covenants and busi- ing it.” CJ PAGE 18 NOVEMBER 2015 | CAROLINA JOURNAL Books & the Arts North Carolina Has Long History of Being a ‘Battleground’ State

uring the past several presi- patriots forget that the Founders dis- the most populous states, letting them economic concerns that affected the dential elections, North agreed on many issues at the conven- dominate American politics. The “New balance of power and the preservation Carolina has been described as tion and worked assiduously and Jersey” plan proposed a unicameral of liberty. Williamson reportedly had Da “purple” or battleground state. As sometimes cunningly for compromise. legislature and equal representation for criticized the plan, but eventually he more people move They were not of one political mind, all states. To no one’s surprise, “Virgin- was persuaded to alter his opinion. to The Old North agreeing with all the proposed pas- ia Plan” proponents had problems with Regarding the representation State for work or sages in the Constitution. Some even a governmental structure so closely and population, North Carolina’s retirement, pundits chose not to attend. Patrick Henry, for resembling the Articles of Confedera- delegates had been divided: Wil- often are unsure if example, a staunch federalist, believed tion favoring small states. liamson, William Blount, and Richard the state will lean he “smelled a rat.” The convention seemed to be at Dobbs Spaight voted for propor- to the left or to the Convention delegates were an impasse, but the Connecticut Com- tional representation while Alexander right in an upcom- divided concerning such things as promise proposed an overall structure Martin and William Davie opposed it. ing election. the length of terms, the frequency of that still exists today: a bicameral Initially, North Carolina was a “large state.” Blount soon left to serve briefly However, elections, and where power should legislature, with representation in one in Congress, and, meanwhile, John as Ecclesiastes be placed. Heated debates continued house based on population and the Rutledge of South Carolina discussed 1:9 states, “There TROY after the Philadelphia Convention, as other with each state having equal the compromise with Williamson, is nothing new KICKLER evidenced by the ratification process representation. among others, in informal meetings under the sun.” that prompted Founders, using pseud- The Connecticut Compromise re- and dinners. North Carolina many times has been a onyms, to argue publicly whether the quired political acumen and planning Eventually, Williamson, Mar- battleground state and a determining United States should adopt the Con- and what historian Forrest McDonald tin, and Davie voted for states to get factor in national debates. A study of stitution. At one point, disagreements calls “backstage maneuvering” that equal representation in the Senate. the Philadelphia Constitutional Con- concerning government structure recruited the North Carolina delega- Historian William Powell said, “North vention, and in particular what has and the representation issue almost tion — in particular, Hugh William- Carolina’s vote contributed toward become known as the “Connecticut disbanded the convention. son’s support. The representation keeping the convention in session, as Compromise,” provides an example To make a detailed and long issue involved much more, including the small states’ delegates might have of how North Carolina politics was history short, let me explain it as fol- approval of treaties, the budget, the left if their cause had been lost.” As divided during the debate over ratify- lows: the “Connecticut Compromise” origination of taxation legislation, evidenced by Williamson’s role, North ing the Constitution and how North evolved from the “Virginia Plan” and the western land issue, slavery, and Carolina was a battleground state dur- Carolinians provided key votes in the the “New Jersey Plan.” The former exports. In other words, Found- ing the nation’s founding years. CJ budding new union. based representation in the legislative ers disagreed over which powers The Connecticut Compromise branch on population and called for a should belong in which chamber and Troy Kickler is director of the North was a result of much deliberation and bicameral (two-chamber) legislature. other lingering questions. The issues Carolina History Project (northcarolina- political maneuvering. Modern-day Many opponents argued that it favored reflected regional, demographic, and history.org). BOOKS BY JOHN LOCKE FOUNDATION AUTHORS

If you don’t know about Edenton, North Carolina, your knowledge of U.S. history is incomplete and your knowledge of North Carolina insufficient. Organized women’s political activity in America was born in Eden- ton. The concept of judicial review—that courts can declare legislative acts unconstitutional—was champi- oned here. Ideas for a national navy and defense were implemented here. Many passages of the N.C. Con- stitution (1776) and the U.S. Constitution originated here. Leading proponents of the U.S. Constitution (a.k.a. Federalists) lived in this small place, and so did nationally known jurists and politicians. Dr. Troy Kickler, founding director of the North Carolina History Project, brings Edenton, its people, and its actions into proper and full focus in his book, The King’s Trouble Makers. Go to northcarolinahistory.org for more information. PAGE 19 NOVEMBER 2015 | CAROLINA JOURNAL Interview Tucker: Conservative Founders’ Concepts Just as Valid Today

By CJ Staff RALEIGH “Conservatives would say that sk a conservative to list his po- litical heroes, and you are likely the basis on which any society to hear names such as Ronald Reagan,A Barry Goldwater, and Wil- or country rests are really in- liam F. Buckley. Those looking further back in time might list Thomas Jeffer- dividual or private virtues, and son and James Madison. Fewer people those private virtues in case of the are likely to mention Nathaniel Ma- con or Josiah Bailey, unless they have American Republic are very much read the latest book from Raleigh au- thor Garland Tucker. Tucker, chairman [based] on Judeo-Christian tradi- and chief executive officer of Triangle Capital Corporation, profiles impor- tions.” tant figures from American history in the book Conservative Heroes: Fourteen Garland Tucker Leaders Who Shaped America, From Jef- Author ferson to Reagan. Tucker discussed the CEO of Triangle Capital Corporation book with Mitch Kokai for Carolina Journal Radio. (Head to http://www. carolinajournal.com/cjradio/ to find a station near you or to learn about the weekly CJ Radio podcast.)

Kokai: You have written another I don’t think we’re going to hit all 14 ticularly well-known, especially out- nickname. book that was spotlighted on this show a in the time that we have. So because of side of the Tar Heel State or even out- Kokai: few years back, The High Tide of American that, let’s focus on a couple of the less- side Raleigh, and that’s Josiah Bailey. Your book starts with ba- Conservatism, but this time, spotlighting er-known people, who may be of inter- Who was he? sically the start of the American Repub- some conservative heroes. Why? est to a North Carolina audience. One lic, with Jefferson and Madison. You of the names we mentioned at the top Tucker: Josiah Bailey was the go up through Ronald Reagan, and, of Tucker: Well, I think the book is of the interview — Nathaniel Macon. Democratic senator from North Caro- course, it’s been more than a quarter really written for conservatives about Who was he, and why is he a conserva- lina in the 1930s and ’40s, and he was century now since Reagan left office. Is conservatism, and it’s my hope that tive leader? a leader in the conservative movement this a bad sign, that we don’t yet have it will help conservatives sharpen up within the Democratic Party and with- someone else to add to this list? Tucker: their thinking a little bit on what the To get a little overall in Congress that began to push back Tucker: basic principles of conservatism really context, as I developed the book, the against [Franklin] Roosevelt and the The last chapter deals are. And in looking at the lives of these 14 leaders, it goes chronologically New Deal, beginning — well, primar- with William F. Buckley, Barry Gold- 14 leaders, we’ll get a feel for what it’s through American history over 200 ily, in 1937. water, and Reagan, which covers a like to live out those principles, in a years, and starts with Jefferson and He led the successful fight to good bit of the last half of the 20th historical context. Madison at the very beginning of the block Roosevelt’s court-packing century. But I would certainly want to Republic. But the second chapter is scheme, and then shortly after that, he make it clear that I don’t, in any way, Kokai: We’re going to get into devoted to Nathaniel Macon and John led an effort that was not successful, view this as the final chapter of conser- some of the leaders in just a bit, but Randolph. These were two very early but it was the development of some- vatism. first, you mentioned conservative prin- Jeffersonians, and Nathaniel Macon thing that he called the Conservative I think there will be, hopefully, ciples, and your opening chapter really was from North Carolina. Manifesto, which was the first attempt many additional chapters, and hope- sets out a handful of principles that all He was speaker of the House of to create a bipartisan coalition of con- fully some soon. One of the premises these leaders relied upon. What are Representatives under Jefferson and servative members of Congress. on which the book is written is that some of those principles? one of Jefferson’s closest political asso- And this was also in 1937. Bailey conservatism is as old as the Republic ciates, particularly leading up to Jeffer- was regarded as one of the best speak- itself, and it’s based on truths that have Tucker: I lay out five that I sug- son’s election in 1800. And it’s, I think, ers in the Senate, a very intelligent been around since before the Repub- gest are very basic. The first one is a pretty well-known — at least among individual, and someone that North lic. So I think it’s just as current today basic conservative view of human na- historians — that once Jefferson and Carolina, I think, can be very proud of. as it was when Reagan was president ture. Liberals would hold that human Madison were elected president in or Coolidge or Cleveland, or some of beings are getting better and better. their own right, they became a little bit Kokai: This is the second time these other leaders. Conservatives aren’t that optimistic more expansive in their views of lim- that you’ve written a book that high- but think that a government can prop- ited government. lights someone who doesn’t get a lot of Kokai: In the brief time that we erly set some limits within which hu- But Nathaniel Macon and John attention, and that is a fellow named have left, do you think that a leader man beings can flourish. Randolph never did. They held very John W. Davis. Why is he one of your who espoused and actually followed Another key concept is the im- firmly to those original Jeffersonian conservative heroes? those five principles that you set out portance of private property. Limited concepts and were an important link in would be leading us in the direction government is another very important Jefferson’s limited government views, Tucker: Davis was the Demo- we need to go? concept. The conservatives would ar- between 1800 and the Civil War. cratic nominee for president in 1924, gue that there are really only two basic and was arguably, I think, the last con- Tucker: Absolutely. That’s what I roles for government: to establish or- Kokai: And for those who think servative that the Democrats nominat- hope will be apparent to anyone read- der and then to preserve liberty. that Jesse Helms was “Senator No,” ed. He’s included in this book because ing the book, is once you’ve read the And finally, conservatives would Macon had a reputation for voting no of his contribution in the 1930s, ’40s, introductory material on the five con- say that the basis on which any society quite a bit, didn’t he? and even into the 1950s, of successfully cepts behind conservatism, I think you or country rests are really individual or challenging New Deal and Fair Deal can see those concepts were lived out private virtues, and those private vir- Tucker: Yeah, that’s right. There’s legislation before the court, primarily by these 14 leaders, and, admittedly, tues in case of the American Republic evidence that Jesse Helms was very en- the Supreme Court. they had to address different issues are very much [based] on Judeo-Chris- vious of Nathaniel Macon’s record of He was very successful in secur- in their different eras, and there will tian traditions. no votes. ing the overturning of a lot of legisla- be different issues in the future, but I tion. In fact, he earned Roosevelt’s think the five concepts will be just as Kokai: We’re going to have a Kokai: There’s another North nickname as Public Enemy No. 1, applicable in the future as they have chance to get into some of the leaders. Carolina figure who might not be par- which Davis very much cherished that been in the past. CJ PAGE 20 NOVEMBER 2015 | CAROLINA JOURNAL Opinion

COMMENTARY More Renewable Subsidies Need to Go

or decades, energy costs have conservation measures. The man- been manipulated by state date was phased in. It’s at 6 percent government subsidies. Just until 2018, when it is scheduled to Flike other subsidies, whether for the increase to 10 percent, and finally film industry, automobile manufac- reaching the full 12.5 percent level turers, or even specific companies, in 2021. North Carolina is the only special treatments transfer the tax state in the South that imposes a burden from the recipients of the mandate for energy consumption subsidies to others, creating unfair on its citizens. Electricity prices advantages, interference in free are 38 percent higher in states with markets, and barriers to prosper- mandates requiring consumers to ity. There is some good news from purchase these more expensive recent legislative action, but still forms of energy. much work to be done. The special treat- After 38 years, North ments don’t end with the EDITORIAL Carolina will stop one RPS. North Carolina has solar industry subsidy 111 different financial by ending a 35 percent incentives and policies A BRAC tax credit for construc- that favor renewables. tion costs. Decades Renewable projects get an ago, renewable energy 80 percent property tax For UNC? advocates swore a tem- abatement, accelerated porary “boost” was all depreciation allowance, s the University of North if the university were subjected to a they needed to get their and a selling advantage Carolina system prepares to similar independent review. Ten of the industry started, but the BECKI called net metering, which GRAY welcome Margaret Spellings as 16 UNC campuses were founded in industry has not ended its allows renewables to itsA sixth president, the former U.S. ed- the 18th or 19th centuries, and many significant dependence on avoid the costs of using ucation secretary will lead a 17-cam- are operating under the same form of taxpayers and ratepayers. the power grid. All of these special pus system (including 16 traditional governance that was set in place when Subsidizing renewables has treatments subsidize renewables four-year colleges) that, according to the system was consolidated in 1971. driven up energy costs for North even more at the expense of energy UNC’s website, “houses two medi- Distance learning and other Carolina citizens: $224 million in tax consumers, aka taxpayers. cal schools and one teaching hospital, innovations are making those 1970s giveaways and special treatment, Environmental concerns 10 nursing programs, two schools of institutions into white elephants. 3,600 jobs lost because of higher also arise when spent solar pan- dentistry, and a school of pharmacy, President-elect Spellings, with the energy costs, and $556 million in els must be decommissioned. The as well as two law schools, 15 schools approval of the state’s political and increased energy costs and money panels contain dangerous toxins of education, [and] three schools of educational leaders, may be the right taken out of the economy this year. and pollutants. There are potential engineering.” person to lead a realignment of one of High energy costs deter business sedimentation and erosion control Are all these necessary, es- our state’s most important and most startups and expansions, particu- issues associated with solar fa- pecially considering the growth of popular public institutions. larly manufacturing industries that cilities. And as solar farms expand distance learning and the state con- Much like military bases, inde- long have been the backbone of onto native scrubland and former stitution’s mandate for “the benefits pendent education schools and nursing the state’s economy. Higher energy farmland, we lose natural ecosys- of the University of North Carolina departments on university campuses costs affect all energy consumers. tems and open space. and other public institutions of higher develop powerful local advocates. Once education, as far as practicable, [to] be established, these entities become nearly Low-income families are hit hard- Legislation repealing or phas- extended to the people of the state free impossible to shrink or eliminate, even if est. ing out the state mandate has been of expense”? they don’t serve the best interests of the Although the solar industry introduced in 2011, 2013, and again We think not, and as Spellings public at large. and its beneficiaries fought tooth this year. House Bill 760, freez- begins her tenure, she would do well Spellings, who led a presidential and nail to keep the credit, spend- ing the RPS at its current rate of 6 to consider a concept that could move Commission on the Future of Higher ing millions on high-powered lob- percent, passed the House 77-32 but the UNC system into the 21st century Education which had as a member byists, the General Assembly and never made it through the Senate. It while honoring its historic mission: a former Gov. Jim Hunt, has expressed the governor agreed it was time to is eligible for consideration during realignment commission for UNC’s concerns about bloat and redundancy allow the 35 percent state tax credit the short session. campuses. on university campuses. for renewable, to sunset at the end So we have large giveaway Five rounds of military base con- “We have to get beyond this idea of 2015. programs to lure new businesses to solidations under the Base Realign- that we’re going to have a veterinary But the special treatment North Carolina while we mandate ment and Closure process slimmed school or an education school or a won’t end when the tax credit sun- higher energy costs for existing down the U.S. military as the Cold medical school or a law school or sets. A mandate forcing North Caro- businesses. Isn’t it time to eliminate War ended. Under BRAC, an inde- a Spanish program on every street linians to buy renewable energy the special treatments and instead pendent commission appointed by corner in America,” she said during remains in place. “Renewables” lower costs for everyone? After the president heard testimony from a 2010 debate at the National Press include solar, wind, hydropower, all, that’s what free markets are all interested parties and visited bases Club. “We can’t do it like that any- geothermal, and biomass — but in about, and they work pretty well. that were considered to be redun- more. We’ve got to use technology reality, the beneficiaries are wind Let’s give it a shot. Repeal the RPS dant or candidates for consolidation. and be economically sensible about and particularly solar. The state and other special treatment for The commission submitted a list to how we offer coursework.” renewable portfolio standard, en- renewables. CJ Congress, which then voted to accept President-elect Spellings, Gov. acted in 2007, requires 12.5 percent or reject the entire list. More than 350 Pat McCrory, and legislative leaders installations have been closed or con- should consider UNC consolidation as a of our energy by 2021 to come from Becki Gray is vice president for solidated since 1988. responsible approach to bolster the repu- a mix of renewable sources and outreach at the John Locke Foundation. The UNC system — and all tation and accountability of this essential North Carolinians — would benefit $9 billion public institution. CJ NOVEMBER 2015 | CAROLINA JOURNAL PAGE 21 Opinion

EDITORIALS COMMENTARY A Win For Freedom Conservative Gains Accomplishments not reflected in the media Undermined by Distrust uch of the traditional media for medical expenses are unlimited. coverage of the recent legis- Overall, taxpayers will keep more mong conservatives around cap on charter schools and creating lative session was presented than $2 billion of their own money the country, North Carolina Opportunity Scholarships for dis- Mto leave a clear impression that elected over the next five years. has become a superstar — a advantaged and disabled children officials toiled for months on end with • Highway Fund shell game placeA where innovative ideas, sus- whose needs might be met best in little to show when they adjourned. ended. No longer will the state di- tained investment, diligence, and private schools. Conservatives have Fact is, North Carolina’s Free- vert $216 million each year from the political acumen have combined won victories on a host of other dom Movement won the session. Here Highway Fund to the General Fund. to produce an impressive string of fronts as well, including transporta- are several tangible ways the prin- Coupled with a long overdue update hard-won victories. tion, energy, property rights, elec- ciples of freedom and limited govern- to Division of Motor Vehicles fees, Within the state, however, tion reform, and abortion. ment advanced in 2015: the state will have a reliable, steady some conservatives don’t see things Even in cases where broader • Spending growth restrained. stream of funding to pave roads, shore that way. It’s interesting to consider free-market reforms have yet to take The $21.7 billion General Fund budget up bridges, and relieve congestion why that may be. root, conservatives have made real for fiscal year 2015-16 increases spend- based on data and need, not political The facts are clear. Over the progress. During this year’s legisla- ing by just 3.1 percent — less than favors. past five years, conservative lead- tive session, for example, efforts the rate of inflation and population • More opportunities to exit ers in the General Assembly have to abolish or cap North Carolina’s growth. Despite a failing schools. enacted a series of tax cuts mandate on electric utili- $450 million surplus Low-income families and tax reforms that will ties to purchase high-cost in revenue, legisla- in North Carolina foster entrepreneurship renewable energy fell tors and the gover- have more educa- and job creation, reduce short. But lawmakers did nor resisted power- tional freedom and the double-taxation allow a longstanding, ful groups urging opportunity, thanks of savings and invest- ridiculously generous them to spend more. to expansion of the ment, and save taxpay- tax credit for renewable Instead they exer- Opportunity Schol- ers hundreds of millions energy projects to expire. cised fiscal discipline arship Program. of dollars a year. North So why are some that respects the Through a voucher Carolina is one of the few North Carolina conserva- hard work of taxpay- of up to $4,200 per states ever to have junked tives grumbling about ers. year, income-quali- an outmoded, Keynesian- JOHN their “liberal” legislators • Solar sub- fied parents of kids era tax system in favor HOOD lately? I think one reason sidy ended. Nearly whose education of a modern, pro-growth is unrealistic expectations. four decades of needs aren’t being Flat Tax. Having argued against taxpayer-subsidized met by a traditional On spending, lawmakers and abusive government subsidies and special treatment classroom can attend Gov. Pat McCrory have resisted regulations in Raleigh for a quarter for Big Solar ends the private school of calls by special-interest groups to century, I am well aware of just how Dec. 31. From 2010 their choice. Funding “invest” more in ineffective state entrenched many of them are — to 2014, these credits is available for 4,400 programs and bureaucracies. In- and how far their beneficiaries will amounted to $224 low-income students stead, they have maintained fiscal go to protect them. I see incremental million. Dozens of lobbyists and advo- next year. cates applied tremendous pressure to • School spending focused on discipline — spending significantly steps as strides toward the ultimate save big business’ sweet deal. But fair- classroom. K-12 education spend- more on high priorities such as goal. Others see them as stumbles ness won the day, and the 35 percent ing is up by $410 million in the new upgrading public infrastructure and or sidesteps. state tax credit will not be extended. budget, with funding to be used for recruiting new teachers, to be sure, Still, I think North Carolina’s • Saving a priority. It’s vital to digital instructional materials, read- but keeping overall budget growth leaders have themselves to blame put money aside for a rainy day. And ing camps, access to broadband, and at or below the combined rates of for much of the disconnect. Process that sound principle is part of the new more. Those entering the teaching pro- inflation and population growth. matters. Even good ideas sprung on budget. More than $600 million is be- fession will make at least $35,000 per Fiscal discipline involves citizens at the last minute, or stuffed ing deposited into savings accounts, year, a $2,000 increase in first-year pay. preparing for the future, not just into unrelated bills, can look precip- building toward reserves of $1.6 All other teachers received a “step” indulging the political demands of itous or suspicious. Moreover, some billion to deal with natural disasters, increase in salary and a $750 bonus. the present. Instead of blowing this of the tools lawmakers have chosen a downturn in the economy, or other • Medicaid oriented toward year’s $400 million revenue surplus to advance their goals — such as expenses that couldn’t be foreseen. better care, lower costs. Medicaid, on new programs, state leaders put “paying for” income tax cuts with • Spending easier to find. No the health insurance provider for every penny of it, and then some, selective expansions of the sales longer will citizens be forced into a 1.9 million North Carolinians, long into savings. They are determined tax base to services — look very maze of websites and documents to has been plagued by massive cost not to enter a future recession with different to average North Carolin- find out what state agencies, local overruns and concerns about poor inadequate budget reserves, like ians than they do on paper. There’s governments, and local education health outcomes. Moving to a hybrid their predecessors did. Recessionary a better, broader way for the state to agencies are spending. A new Internet of provider-led and managed-care budget deficits always put tremen- move to a consumption-based tax portal will function as one-stop infor- systems encourages quality care with dous political pressure on gover- system, as I have long maintained. mation shopping, featuring monthly more predictable costs and less risk to nors and legislators to raise taxes. North Carolina truly deserves updates on budgets and expenditures. taxpayers. Conservative achievements in its national reputation as a leader • More money staying with • Neverending pursuit of North Carolina extend beyond fiscal of conservative reform. Within the taxpayers. Building on transforma- liberty. Every lawmaker and state of- policy. In each of the past five years, state, however, there’s work to be tional tax reforms from 2011 and 2013, ficial offers an opportunity to advance lawmakers have enacted regulatory done on renewing relationships and the third round of tax fairness reduces freedom and opportunity, and curtail reform bills to eliminate counter- rebuilding trust. CJ the personal income tax rate from 5.75 the smothering forces of too much productive rules and streamline the percent to 5.499 percent, and reduces government. All of the victories fea- process. They have dramatically the corporate income tax rate to 4 per- tured here can be traced to the ideas, expanded parental choice and com- John Hood is chairman of the cent. In addition, the standard deduc- recommendations, and hard work of petition in education by ending the John Locke Foundation. tion increases by $500, and deductions the John Locke Foundation. CJ PAGE 22 NOVEMBER 2015 | CAROLINA JOURNAL Opinion MEDIA MANGLE The Media Have No Independent Standards used to have the naive idea that journalists based their editorial decisions on independent standards that obtained no matter who was involvedI in a news story. If corruption was occurring, I, in my callow youth, thought, journalists would condemn it whether it was Democrats, Republicans, Social- ists, or Communists who were involved. I don’t believe that anymore, and haven’t for some time. A big turning point for me was the Clinton-Lewinsky affair. At first, the media said, “If he had sex with an intern, he’s toast.” But, as it became clear that he did have sex with an intern, the media be- gan saying, “If he committed JON perjury, then he’s toast.” HAM When it became clear he had lied to a grand jury, the media decided, “It’s just sex. What’s the big deal? Why Recession Worries Are Growing Let’s move on.” I knew then that the mainstream media had sold its soul. uch of the recent economic news has been trended lower. Gold is cheaper today than it was a The same thing is happening today with, worrisome. There have been wild swings year ago. irony of ironies, Bill Clinton’s wife. Her travails in the stock market, with point losses in the The deep recession in the early 1980s was with Benghazi and her emails have gone through tripleM digits on some days. The Chinese economy induced by the Federal Reserve’s effort to reduce a similar goalpost-lowering process. She and the may be in freefall, while Europe is dealing with the double-digit inflation rate prevailing at the president at first claimed that four Americans thousands of refugees from the war-torn Middle time. The Federal Reserve raised interest rates and died in a “protest” caused by an anti-Muslim East. Canada is officially in a recession. The broad- restricted credit growth. As a result, private-sector video. United Nations ambassador Susan Rice est measure of the jobless rate is still above 10 spending slowed and a recession resulted. The was sent out to five Sunday talk shows to claim percent. inflation rate did plunge, but at the cost of higher the video was to blame. Does this mean the nation is headed into an- unemployment and lower incomes. Hillary Clinton herself told the parents of other recession? Again, the situation is entirely different today. the dead Americans that the video was to blame Some say the last recession, All the gauges of inflation — from government and that she and the president would punish which officially began in late and private sources alike — show the average of 2007, never ended. I understand who was responsible. They quickly engineered prices rising at modest rates. The Federal Reserve that attitude, especially for those the jailing of the video’s producer, who is still may raise the interest rates they control, but mainly whose incomes have dropped or afraid to speak publicly for fear of being jailed because they are now effectively zero. Furthermore, again. are still unemployed. But we measure changes the increase in interest rates should be modest — When it became evident that Clinton had a maybe one-quarter of a percent. separate, personal Web server, and that she used in the economy by the sum of economic activity for all people This leaves the development of an investment a personal email account, requests were made for and companies. More than 12.5 “bubble” as the last potential cause of a new reces- those emails. Soon we learned that 30,000 of her million jobs nationally and sion, and this is actually the factor that may now emails had been erased and the server destroyed. MICHAEL 418,000 jobs in North Carolina WALDEN have the greatest risk of happening. The attention is When she testified under oath late in Oc- have been added since early on two possible bubbles — in the bond market and tober in front of the House Select Committee on 2010. The broadest measure of in the stock market. Benghazi, all of what had been only suspected the unemployment rate is down 40 percent during The value of long-term bonds is related to was confirmed. Shehad lied about the video, to the past five years. Consumer sentiment about the changes in interest rates. Increases in rates lower the nation and to the parents of the dead. She had economy has been improving steadily. the value of existing long-term bonds because new destroyed emails. She had jeopardized top-secret So yes, the economy has been improving — bonds then pay more than existing bonds. Thus information by passing it to political operatives albeit slowly compared to previous recoveries from there’s a concern the value of existing bonds is too via unsecured channels. She had ignored dozens recessions. But just because the economy has been high (they’re in an “investment bubble”) because and dozens of pleas from Ambassador Chris gaining for the last six years doesn’t mean it will interest rates are so low. So when rates rise, some Stevens to beef up security in Benghazi. continue to do so. analysts say to watch for a possible crash in the The media, however, had moved the goal- Recessions can be caused by a number of fac- multitrillion-dollar bond market. posts so far for Hillary that all of these damag- tors or events. Among them are a buildup of private A similar argument is made for stocks. Low in- ing, incriminating facts became irrelevant to debt, the spike in the price of a key commodity terest rates make investments like CDs (certificates them. What was important was not the lies about in the economy, a move by the Federal Reserve to of deposit) and money market funds much less the video, the callous disregard for Stevens’ reduce high inflation, or the emergence of an invest- attractive than stocks. But some say stock values are concerns, the jailing of an innocent American to ment “bubble.” artificially high (a “bubble”) today because — again protect the meme that global terrorism was on Let’s look at the current situation for each of — interest rates are artificially low. So — just like the run, or the lies to the parents of the dead. No, these factors. Private debt today is low, not high. bonds — the worry is what happens when rates are the story the next day was how wonderfully the The debt load of households — measured by the raised. aging Clinton had done by enduring her 11 hours percentage of households’ after-tax income devoted Right now, I worry most about an investment of testimony before the mean Republicans. to loan payments — is at a three-decade low. Busi- bubble, yet I still don’t see a recession as imminent. Imagine if those standards had been in play ness debt is also low. Even government debt — rela- But guess who has some of the worst records of in covering the Watergate scandal. CJ tive to the size of the economy — has stabilized. predicting recessions? Economists! CJ Recessions in the 1970s were triggered by big Jon Ham is a vice president of the John Locke jumps in oil prices. Today, oil prices have gone in Michael Walden is Reynolds Distinguished Profes- Foundation and publisher of Carolina Journal. the opposite direction: down. Prices of most other sor at N.C. State University. He does not speak for the commodities — like metals and crops — also have university. NOVEMBER 2015 | CAROLINA JOURNAL PAGE 23 Opinion Buckley’s Response to Vidal Understandable he recent movie “Best of En- annoyed with himself as with Vidal. watching that night clearly under- The “Nazi” epithet often demon- emies” revisits 1968, one of the Its recent embrace in certain stood what Nazism was. Hitler’s co- strates a tremendous ignorance of the most dramatic years in modern gay circles notwithstanding, the term conspirator in the division of Poland, origins of the modern center-right in AmericanT history. Morgan Neville and “queer” grates our contemporary totalitarianism, and extermination of America. Robert Gordon have produced a docu- sensibilities. It is undoubtedly a slur, political opponents, Josef Stalin, had Probably more grating to Buck- mentary surrounding the 10 televised and much of the media coverage of been dead only 15 years. It was outra- ley personally was Vidal’s simplistic debates between the conservative the movie has focused on its utterance geous to put Buckley in a camp such assertion — often made today — that intellectual and founder of National and what it revealed about Buckley’s as that. any critic of modern liberalism and Review, William politics and temperament. Buckley was a conservative. He socialism must be some kind of Nazi. F. Buckley Jr., and That Buckley’s outburst was understood the idea of obligation, had Many of Buckley’s writers and edi- Gore Vidal, the provoked by Vidal calling him a a deep understanding of history, and tors during the early years of National radical postmod- “crypto-Nazi” (Vidal later claimed he respected institutions like the military Review had themselves been leftists ern essayist and meant to say “crypto-fascist”) has not and organized religion as essential to who opposed fascism and the extreme right in pre-War Europe. But they had political commen- been given nearly as much attention. social cohesion and national great- come to realize that the Soviet Union tator. Perhaps the oversight is unsurprising ness. But like most conservatives then and rising communist and socialist The debates since many people on the Left today and now, he also embraced classically movements elsewhere were designed were watched toss around the term loosely and liberal ideas based on a belief that to strangle individual liberty in mon- by millions and frequently label their conservative op- individual liberty should constitute strous bureaucracy that bred confor- took place against ANDY ponents as quite conspicuous Nazis, the central organizing principle of mity, suffocated initiative, smashed the immediate TAYLOR not worrying to suggest the trait is societies. He had his differences with opposition, and generally squeezed backdrop of that hidden in some way. people like Friedrich Hayek and Mil- the hope out of people. Nazis, fascists, year’s national Conservatives also use it to ton Friedman — the latter vigorously and communists were all the same party conventions, gatherings colored describe their critics — as illustrated debated him on optional but incentiv- side of the coin. Indeed, just before his greatly by the ongoing war in Viet- by Rush Limbaugh’s “Feminazis.” I’ve ized national civic or philanthropic outburst Buckley had compared the nam, the civil rights movement, and been called a Nazi before, and in fairly service — but Buckley was cut from Viet Cong and its allies to Nazis. broader cultural upheaval, as well as polite conversation, too. The accusa- similar cloth. The Buckley-Vidal feud contin- the Martin Luther King Jr. and Robert tion did not hurt, since it was simply The connection helps explain ued after the televised debates and be- Kennedy assassinations. untrue and, besides, the epithet has Buckley’s explosion. The architects came quite toxic. In a back-and-forth The movie makes the debates’ lost most of its meaning through such of the classical liberal revival that on the pages of national magazines most dramatic moment a central frequent misuse. followed World War II — Fried- during 1969 and 1970, neither draped focus. During a heated exchange, It hurt Buckley, though. It is easy man, Hayek, Henry Hazlitt, Walter himself in glory. On that famous night Buckley responds to Vidal: “Now to forget that today we are as close to Lippmann, Albert Jay Nock, Karl Buckley certainly contributed to the listen, you queer, I’ll sock you in Bill Clinton’s first election as presi- Popper, Ludwig von Mises, among spitefulness that was to come, but Vi- the goddamned face and you’ll stay dent as 1968 was to the end of World others — were influenced profoundly dal, we should not forget, played his plastered.” Even though Vidal was War II. At the time Buckley and Vidal by their devastating personal experi- part just as venomously. CJ sneering and antagonistic — he was clashed, the long dark shadow of Na- ences with totalitarianism in the 1930s notoriously nasty to friends and foes tional Socialism and Hitler’s destruc- and 1940s. Many were Jews who came Andy Taylor is a Professor of Politi- alike — he didn’t deserve the insult. tion of Europe and efforts to eliminate to the United States and Britain with a cal Science in the School of International Buckley had lost his cool and after a the Jews still fell across the Western deep suspicion of the state and desire and Public Affairs at N.C. State Univer- few moments stormed off, clearly as world. Nearly everyone who was to be free. sity. He does not speak for the university. The GOP Revolution’s Third Wave? ll I can say is that it was worth had passed. He was in mourning — in-waiting. If McCarthy considered to their constituents back home. They the price of admission to be in not for a relative — but for the access the Benghazi investigation to be a are tired of show votes and legisla- the nation’s capital in October he had just lost. He had bet big on partisan weapon, then in the media’s tion that never reaches Obama’s desk. whenA House Majority Leader Kevin McCarthy for speaker, and his horse eyes, the Republican caucus must And they want to reform the way the McCarthy, R-Calif., didn’t finish the race. think so, too. House does business. withdrew his The media reported that Repub- Outgoing Speaker John Boehner The Freedom Caucus has a re- name from consid- licans in the House were in chaos and of Ohio endorsed McCarthy, and to form agenda. The top-down manage- eration to become the “hardliners” were responsible for reform-minded conservatives of the ment style of Boehner and his various the next speaker of the mess. The fact is that McCarthy legislative Freedom Caucus, that rep- committee chairmen was — and is — the House. committed a huge unforced error, one resented business as usual. a centralized process with little room for dissent. The Freedom Caucus Two blocks that brought about his own down- Led by Rep. Jim Jordan of Ohio wants to decentralize the way Con- from the Capitol, ward trajectory — and that was when and North Carolina’s own Mark gress works, not to promote chaos, but the scene at the Re- he stated that the Benghazi committee Meadows, the Freedom Caucus was to advance a conservative agenda. publican Club was was primarily a political tool of the concerned less about who the next In my lifetime in politics, I have a sight to behold. MARC GOP. speaker should be and more about lived through two major waves or Lobbyists were on ROTTERMAN The legitimate inquiry by Rep. what he or she should do. disruptions in the Republican Party: their cell phones, Trey Gowdy’s committee to reveal Many Freedom Caucus members “The Reagan Revolution” of the 1980s frantically updat- the truth behind the Obama team’s had been elected in the class of 2010 and “The Gingrich Revolution” of the ing their respective response to the terrorist attack in and were committed to repealing and 1990s. clients, and trying to sound as if they Libya — where four Americans were replacing Obamacare and also revers- Both strengthened the Republi- knew what just had transpired. murdered — was undermined by ing President Obama’s executive can Party and — by the way — were Others were just downright McCarthy’s statement on cable news actions on amnesty. They are intent on good for the country. The Freedom apoplectic. I ran into one lobbyist blatantly politicizing the investigation. reducing the size and scope of govern- Caucus could represent the Third who was heavily “invested” in Mc- Maybe worst of all for McCar- ment and ending crony capitalism. Wave. CJ Carthy’s rise, and his demeanor and thy’s fate was that he was his boss’s They also abhor what is transpir- pallor were that of a man who had hand-picked successor, and was ing at Planned Parenthood and are Marc Rotterman is a senior fellow just received the news that a loved one viewed by the media as the speaker- committed to keeping their promises at the John Locke Foundation. PAGE 24 NOVEMBER 2015 | CAROLINA JOURNAL Parting Shot ‘Nothing Compares’ Branding Faced Stiff Competition (a CJ parody) By Donald Draper involvement from North Carolinians, Marketing Correspondent “including a creative expression sub- RALEIGH mission where participants can express he competition selecting “Noth- what North Carolina means to them ing Compares” as a branding with art forms like photography, danc- logo for North Carolina com- ing, poetry and sculpting,” according Tmerce was much more heated than the to The Daily Tar Heel. McCrory administration let on, based In the second contest, student on documents obtained by Carolina teams competed in a business case Journal. competition for the state’s new brand. The phrase, using the initials for To select the winner, state officials North Carolina as a promotional tool used the IMPLAN software package for economic developers and state and database, a proprietary modeling Commerce Department officials, was program that estimates the regional announced by Gov. Pat McCrory in economic impact of specific projects in early September. terms of jobs created and economic ac- “In an increasingly competitive tivity generated from the new activity, environment, it’s crucial for North such as the impact of offering taxpayer Carolina to articulate at a glance all subsidies and other corporate welfare we have to offer,” McCrory said at the The N.C. Commerce Department will distribute postcards urging people from all over to businesses. time. “The new look and messaging the country to come vacation in Nothing Compares. (CJ spoof graphic) Genardo said the use of IMPLAN are reflective of the people and the as- for the branding project “may signal an sets that make this state such an inspir- tested and failed to make the cut were: “Of the other phrases we tested, • Not California only ‘NAS CAR’ delivered a positive innovative way we can justify creating ing place to live, work, and play. North even more phony-baloney economic Carolina has great momentum and • Naughty Colleges job-creation number, with $4.5 million • Nice Coast in economic impact and 325 jobs cre- impact statements that make the gov- will be even stronger with support of a ernor look good.” brand that pulls everything together.” • Never Complacent ated,” Genardo said. “But when we With the new branding logo in But a number of other phrases us- • Neo-Conservative focus-tested the phrase in areas north place, the administration anticipates ing “N.C.” also were considered by the • Nightly Constellations of Charlotte, among residents who will an economic boom in 2016, when Mc- Commerce Department, which spon- • NAS CAR drive the tolled lanes of Interstate 77, Crory will run for a second term. sored a contest soliciting phrases and • Notable ‘Cue the numbers completely tanked.” “A well-defined brand will help tested them in focus groups statewide. • Nonpartisan Corruption “The N.C. Department of Com- us consistently tell our story and high- Results of the focus group sur- Based on the IMPLAN model, us- merce is partnering with UNC’s Ke- veys were run through the IMPLAN ing “Nothing Compares” on marketing nan Institute of Private Enterprise in light North Carolina’s economic vitality economic modeling program to learn literature for Commerce is expected to the Brand N.C. Project,” The Daily Tar and variety of opportunity,” said Com- which phrase would generate the most generate $57.6 million annually in eco- Heel newspaper at UNC-Chapel Hill merce Secretary John Skvarla. “This ini- revenue and create the greatest num- nomic impact and lead to the creation reported. tiative will draw attention to the quali- ber of jobs for the state. of 3,600 jobs, Commerce Department The Commerce Department ties we know already attract people Among the phrases that were spokeswoman Kim Genardo told CJ. sponsored “two contests” to attract and investment to North Carolina.” CJ E.A. MORRIS FELLOWSHIP FOR EMERGING LEADERS The E.A. Morris Fellowship is seeking principled, energetic applicants for the 2016 Fellowship class. Applications available online or at the John Locke Foundation. Application deadline is December 8, 2015. Please visit the E.A. Morris Fellowship Web site (www.EAMorrisFellows.org) for more information, including eligibility, program overview and application materials. Eligibility • Must be between the ages of 25 and 40, must be a resident of North Carolina and a U.S. citizen • Must be willing to complete a special project requiring leadership and innovative thinking on a local level • Must be willing to attend all program events associated with the fel- lowship • Must not be the spouse of a current or past Fellow. Important Dates to Remember Applications Open September 15, 2015 Applications Due December 8, 2015

www.EAMorrisFellows.org Contact: [email protected] | [email protected] 200 W. Morgan St., Ste 200 Raleigh, NC 27601 | 919-828-3876 | 1-866-553-4636