INSIDE THIS ISSUE: DEPARTMENTS Classroom North Carolina 2 C A R O L I N A Education 7 space at Local Government 10 From Page 1 14 universities Higher Education 17 vastly under- Books & the Arts 20 Opinion 24 utilized/18 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION December 2012 Vol. 21 No. 12 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Group Home Staff Helped Patients Vote are legal, but there appears to be some confusion involving state laws that Legal guardians govern voting rights. Cecil Pearson’s concerns reveal additional ambiguities were not consulted in the legal boundaries between pa- tients, guardians, and public officials before ballots cast regarding voting rights of the men- By Don Carrington tally and developmentally disabled in Executive Editor group homes and other private facili- RALEIGH ties. ecil Pearson’s daughter Darlene Cecil and his wife, Judy, live in told him she voted for Barack Roanoke Rapids and run a small busi- ness there. Easter Seals of North Caro- Obama for president. President lina and Virginia operates Darlene’s Cof what? Cecil says Darlene couldn’t group home. Darlene and the others tell you. Darlene, 40, is developmental- were taken in a van to an early vot- ly disabled and functions cognitively ing site in Roanoke Rapids and voted at about the level of a 7-year old. She curbside with assistance of a Halifax lives in a group home with five other County election board employee. Ce- adult women in Roanoke Rapids. cil Pearson contends that the only way “I was shocked when I learned she could have made a choice on a bal- she had voted,” Pearson told Carolina lot would be if someone made it for Journal. “She has never voted. My wife Cecil and Judy Pearson of Roanoke Rapids were shocked when they learned that her. and I became her legal guardians in their developmentally disabled daughter was taken to vote without their consent. Halifax County elections board 1996 to prevent exploitation like this. (CJ photo by Don Carrington) chairwoman Marilyn Harris told CJ We were not consulted. She is not ca- group home took her to get a photo day and she told him. that she was aware of Mr. Pearson’s pable of making an informed choice, identification card. North Carolina A series of CJ reports has un- concerns. “We had a registered voter and as her guardians we would not Board of Elections records confirm that earthed organized efforts to register who presented herself to vote. She have approved it.” she registered in 1995, but the first vote patients in state facilities for the men- asked for assistance, and she was al- Pearson said his daughter reg- she cast was Nov. 2 of this year. Cecil tally ill and developmentally disabled, lowed to vote,” Harris said. istered to vote at a Division of Motor said he learned Darlene voted when he and to assist them in voting. Advocates Vehicles office in 1995 when staff at her picked her up for a visit later the same for the disabled contend these efforts Continued as “Halifax,” Page 14 GOP Sweeps Executive Mansion, Legislature

PAID matic gains made by Republicans. The RALEIGH, NC U.S. POSTAGE GOP can credit much of its success to PERMIT NO. 1766 NONPROFIT ORG. McCrory only third redrawn congressional and legislative districts that made a number of dis- Republican governor tricts more friendly demographically. They also enjoyed a campaign finance since Reconstruction advantage, a plus that they are not By Barry Smith used to having. Associate Editor Republicans picked up three con- RALEIGH gressional seats in the state, the 8th, ormer Charlotte Mayor Pat Mc- 11th, and 13th Districts, with Republi- Crory became North Carolina’s Libertarian Barbara Howe collecting cans Richard Hudson, Mark Meadows, third Republican governor since slightly more than 2 percent of the vote. and George Holding winning those FReconstruction and the first since the McCrory joins Jim Holshouser and Jim seats, respectively. Incumbent Demo- 19th century to work with a General Martin as the only Republicans to win cratic Rep. Mike McIntyre barely held Assembly controlled by his own party, the governor’s office since Reconstruc- on to the 7th Congressional District, as the GOP built on its electoral mo- tion. winning by less than 700 votes over mentum from 2010. A postelection briefing by the state Sen. David Rouzer, R-Johnston. McCrory defeated Lt. Gov. Walter N.C. FreeEnterprise Foundation The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 Dalton, 55 percent to 43 percent, with spelled out the magnitude of the dra- Continued as “GOP,” Page 15 PAGE 2 DECEMBER 2012 | CAROLINA JOURNAL North Carolina C a r o l i n a McCrory Mum on Obamacare State Exchanges By Dan Way “Congress authorized no funds for the federal fallback Journal Associate Editor exchanges that the feds are supposed to create if states don’t RALEIGH create their own,” Cannon said. “That’s because Congress Rick Henderson mid growing sentiment among conservatives that didn’t think that states were going to reject [them]. They Managing Editor states can derail Obamacare by refusing to create thought that once Obamacare reached the states, they’d be Don Carrington health care exchanges, Gov.-elect Pat McCrory has greeted as liberators.” Executive Editor notA decided whether to join other Republican governors in Cannon notes that health insurance premiums are in- following that path. creasing as insurers anticipate higher costs as the law takes Mitch Kokai, Michael Lowrey “He’s going to work with the General Assembly in effect. Moreover, he said, “The federal government will be Barry Smith, Dan E. Way determining the best course for North Carolina going for- able to drive [health insurance] carriers out of business by Associate Editors ward,” said Chris Walker, communications director for the picking winners and granting these guys special breaks.” McCrory transition team. States that refuse to establish exchanges could exempt Chad Adams, Kristy Bailey As it stands, Walker said, “there is a lack of clar- many people from the individual mandate that requires David N. Bass, Lloyd Billingsley ity from Washington” on specifics of implementing the ex- them to purchase health insurance, he said. Kristen Blair, Sara Burrows changes under the Patient Protection and Affordable Care Employers from those states could be exempted from Roy Cordato, Becki Gray Act, Obamacare’s official title. providing coverage as well. Sam A. Hieb, Lindalyn Kakadelis The intent of the health care re- A federal exchange is barred un- Troy Kickler, George Leef Karen McMahan, Donna Martinez, form was for states to set up the ex- der the law from offering tax credits Karen Palasek, Marc Rotterman changes, which are online clearing- to subsidize premiums, Cannon said. Michael Sanera, John Staddon houses through which tax-subsidized Under a state exchange, the IRS pays George Stephens, Terry Stoops health care plans would be offered to the refundable credits directly to insur- Andy Taylor, Michael Walden uninsured individuals and small busi- ers to cover eligible individuals and Karen Welsh, Hal Young nesses. States would absorb the costs of families who buy their health plans on John Calvin Young creating and operating the exchanges. the exchange. The size of the subsidy is Contributors If states don’t create their own based on income, and insured partici- health care exchanges, the federal gov- pants pay the difference between the ernment would offer its own. subsidy and premium costs. Joseph Chesser, Garrett Hunter, Outgoing Gov. Bev Perdue com- Under the Obamacare employer Hubert Papes, Daniel Simpson mitted North Carolina to a federal- mandate, most U.S. companies with at Interns state health care exchange partnership least 50 employees would be required in the waning weeks of her tenure. to provide federally approved health Published by McCrory is not sold on that model insurance or pay a $2,000 tax per un- The John Locke Foundation and could choose another option after insured worker, with exclusions for the 200 W. Morgan St., # 200 he is sworn in. In addition, State Senate first 30 employees. Raleigh, N.C. 27601 leader Phil Berger, R-Rockingham, has said the General As- Because the federal exchanges aren’t authorized to is- (919) 828-3876 • Fax: 821-5117 sembly must have a voice in how the state approaches the sue the credits, employers could not be assessed the $2,000 www.JohnLocke.org exchanges. tax to fund them, Cannon said. “What [McCrory] won’t do is have a federally run States that opt out of state and federal exchanges could Jon Ham state program” that leaves decisions to the feds and pushes lure companies to relocate from states with the exchanges, Vice President & Publisher costs to the state, Walker said. and the lower tax environment would be more conducive to “There’s a lot of unanswered questions,” Walker said. John Hood job growth at existing firms, Cannon said. Chairman & President “The federal government isn’t even prepared for implemen- Despite clear language in the law preventing federal tation at this point.” exchanges from distributing tax credits, the IRS wrote a rule Bruce Babcock, Herb Berkowitz Some national policy experts say crucial details cover- allowing it. Oklahoma, which has refused to set up a state Charlie Carter, Jim Fulghum ing myriad and complicated organizational and operational exchange, has filed a legal challenge to the rule. Chuck Fuller, Bill Graham matters are missing. They’re advocating that states force- “The Oklahoma lawsuit is, I think, the most important Robert Luddy, Assad Meymandi fully reject creating their own exchanges. thing happening right now in the Obamacare repeal/rebel- Baker A. Mitchell Jr., Carl Mumpower, Wes Goodman, director of conservative coalitions and lion movement,” Cannon said. J. Arthur Pope, Thomas A. Roberg, state outreach for the Republican Study Committee, a cau- David Stover, J.M Bryan Taylor, Even if Oklahoma loses its suit, states that did not cre- cus of conservative U.S. House members, said Obamacare ate their own exchanges would have a “nuclear option” of Andy Wells is “bad policy, it’s bad politics, and it’s not going to work.” Board of Directors delicensing health plans that sell through the federal ex- With some 16 states declaring they will not set up state change and collect the federal subsidies or tax revenue, he Carolina Journal is exchanges, and GOP governors controlling 30 states, the said. That would, effectively, block a federal exchange from a monthly journal of news, Obama administration is desperate for collaboration, Good- operating. analysis, and commentary on man said. “The fact that the Obama administration is breaking “They’re trying to get conservatives, they’re trying state and local government the law to spend money and impose taxes that Congress and public policy issues in to get Republicans to put their fingerprints on the murder never authorized gives you the hook,” Cannon said. North Carolina. weapon here,” Goodman said. He said the time to get con- “We all agree that the health care system needed re- ©2012 by The John Locke Foundation servatives to buy in to the law was in 2009 and 2010, be- form, but it didn’t get reformed the right way under this Inc. All opinions expressed in bylined articles fore it passed. Instead, Congress enacted the law without a are those of the authors and do not necessarily single Republican vote. health care law,” said Nina Owcharenko, a Charlotte native reflect the views of the editors of CJ or the Goodman and other critics say a host of issues sur- who is director of the Center for Health Policy Studies at the staff and board of the John Locke Foundation. rounding the law remain unresolved. They say implementa- Heritage Foundation. Material published herein may be reprinted as “So we’re trying to wedge our policy issues back on long as appropriate credit is given. Submis- tion is the next battleground, and states have considerable leverage if they are willing to use it. the table. We need leadership in the Congress to take those sions and letters are welcome and should be ideas and run with them. Thus far we really haven’t had directed to the editor. “The subsidies that flow through the health -insur CJ readers wanting more information ance exchanges are not authorized unless the state creates a lot of strong efforts in Congress to take up the alterna- between monthly issues can call 919-828- its own exchange,” said Michael Cannon, director of health tive ideas and articulate them in this capacity,” Owcharenko 3876 and ask for Carolina Journal Weekly policy studies at the Cato Institute. said. Report, delivered each weekend by e-mail, “This is why it’s so important to stop states from cre- Conservatives in the new Congress immediately need or visit CarolinaJournal.com for news, links, ating their own exchanges and expanding Medicaid,” Can- to break down the law and explain why it’s bad policy, “be- and exclusive content updated each weekday. non said. “States are under no obligation to create an ex- cause I do disagree that this law is here to stay,” Owcha- Those interested in education, higher educa- change. It is not a mandate.” renko said. tion, or local government should also ask to He said exchanges would cost between $10 million “We need to talk about things like freedom and lib- receive weekly e-letters covering these issues. and $100 million per year to operate, and states would have erty and what do we really want out of this system that to pay for them. we have today,” she said. CJ DECEMBER 2012 | CAROLINA JOURNAL PAGE 3 North Carolina N.C. Voters Embrace Status Quo in Council of State Races By Barry Smith Debra Goldman by 54 percent to 46 Associate Editor percent. RALEIGH Democratic Attorney General ometimes change isn’t in order. Roy Cooper was unopposed and re- That was the case Nov. 6 when elected. North Carolina voters re-elected Greene noted that Republican Sall eight down-ballot Council of State Gov.-elect Pat McCrory’s double-digit officials. And while most of the races win over Democrat Walter Dalton did weren’t cakewalks, they weren’t cliff- Dan Forest June Atkinson Elaine Marshall Janet Cowell not have a coattail effect in the Council hangers either. of State races. In six of the eight races, the win- Guillory agreed. ning candidate received either 53 per- “I think what it does say is nei- cent or 54 percent of the votes cast. It ther [GOP presidential candidate Mitt] didn’t matter whether the incumbent Romney nor McCrory had coattails,” was a Democrat or a Republican. All Guillory said. “So the Council of State were elected to spend another four officers can feel that they were elected years in office. on their own.” The eight statewide elected de- McCrory’s coattails did help Re- partment heads plus the governor and Cherie Berry Steve Troxler Beth Wood Wayne Goodwin publican Dan Forest capture the lieu- lieutenant governor make up North tenant governor’s race, Greene said. Carolina’s Council of State. sor of political science at N.C. State Tedesco, a member of the Wake Coun- “People not wanting to split their bal- Pre-election conventional wis- University, agreed that having North ty Board of Education, earlier won a lot between a governor and a lieuten- dom suggested that if North Carolina Carolina as a presidential battleground crowded GOP primary. However, At- ant governor might have helped For- elected Republican Pat McCrory as state helped Democratic candidates. kinson won her third term as superin- est,” Greene said. governor and fellow Republican Dan “The Democratic turnout gained tendent. Forest won by the narrowest Forest as lieutenant governor, at least more from this being a presidential Longtime Secretary of State margin of all the statewide executive a couple of incumbent Democratic battleground this year,” Greene said. Elaine Marshall, who was the Demo- branch officials, besting Democrat Lin- Council of State members would fall. The closest down-ballot Council cratic nominee for U.S. Senate in 2010, da Coleman by a fraction of a percent- But all were able to survive GOP chal- of State race was for insurance com- held on to her office by defeating Re- age point. lenges. missioner, where incumbent Democrat publican Ed Goodwin, 54 percent to 46 Guillory notes that North Caro- Political observers credit the Wayne Goodwin defeated his Repub- percent. lina has a long ballot for executive name recognition that comes along lican challenger, Mike Causey, by 52 Incumbent Democratic Treasurer officials. “It gets to the diffuse nature with incumbency and the strong politi- percent to 48 percent. Janet Cowell defeated GOP challenger of North Carolina state government,” cal organization of President Obama Increased homeowners insurance Steve Royal by a similar 54 percent to with helping Democratic candidates rates in coastal counties coupled with 46 percent vote. Guillory said. “We not only have the down ballot. a proposal by the N.C. Rate Bureau to Incumbent GOP Labor Commis- conventional checks and balances of “It’s not new news that there’s increase homeowners insurance rates sioner Cherie Berry, whose name and three branches of government, but power in incumbency,” said Ferrel statewide made the campaign a chal- photo are in every elevator in North even within the branches we have sep- Guillory, a lecturer in the UNC-Chapel lenge for Goodwin. The proposed rate Carolina, defeated Democrat John arations.” Hill School of Journalism and Mass increase occurred during the fall cam- Brooks, 53 percent to 47 percent. Berry While the Republican Council of Communication and an adjunct pro- paign season. will begin her fourth term in January. State members certainly hope that Mc- fessor of public policy at the university. Another race that Raleigh insid- Republican Steve Troxler, the in- Crory’s tenure as governor is success- “The Obama grass-roots organi- ers thought the Republicans had a cumbent commissioner of agriculture, ful, they were elected independently zation certainly maximized the turn- chance of capturing was the superin- defeated Democrat Walter Smith by a and are not automatically a part of his out of Democratic voters,” Guillory tendent of public instruction contest. similar 53 percent to 47 percent vote. administration, Guillory said. said. “It clearly helped the Democratic In that race, incumbent Democrat June First-term state Auditor Beth “They have their agendas and Council of State incumbents.” Atkinson fended off GOP challenger Wood, a Democrat, was re-elected to a their work habits set,” Guillory said. Steven Greene, associate profes- John Tedesco, 54 percent to 46 percent. second term by defeating Republican “And they won on their own.” CJ Subscribe to JLF’s Research Department Newsletters Go to http://www.johnlocke.org/key_account/ to sign up

Vice President for Research Director of Research Director of Fiscal Policy Director of Regulatory and Resident Scholar Roy and Education Studies Studies Fergus Hodg- Studies Jon Sanders’ Cordato’s weekly newslet- Terry Stoops’ weekly son’s weekly newsletter, weekly newsletter, ter, Environment Update, newsletter, Education Ferg’s Fiscal Insight, Rights & Regulation focuses on environmental Update, focuses on the offers pro-liberty per- Update, discusses cur- issues, and highlights rel- latest local, state, na- spectives on the latest rent issues concern- evant analysis done by the tional, and international research and news in ing regulations, rights, John Locke Foundation and trends in pre-K-12 edu- taxation and govern- and freedom in North other think tanks, as well as cation politics, policy, ment spending. Carolina. items in the news. and practice. PAGE 4 DECEMBER 2012 | CAROLINA JOURNAL North Carolina State Briefs Medicaid Issues Face McCrory Administration Auditor: End tip-offs By Dan Way “There are elements of the Florida model in a number North Carolina’s top audi- Associate Editor of states currently,” including Louisiana, Kansas, and Texas, tor says the country’s third-larg- RALEIGH Herrera said. “We are talking to lawmakers in other states, est community college system ov.-elect Pat McCrory is contemplating numerous including in North Carolina, and we’re hoping that some should stop tipping off campus cost-saving Medicaid reforms, aides say. Those in- other states pick it up this year.” administrators weeks before a clude possible adoption of a Florida pilot program The pilot is a “fiscally sustainable model that also im- record check is coming, The As- that,G projections indicate, could save North Carolina $2.7 proves care,” she said. It provides an “off-ramp” from Med- sociated Press reports. A Nov. billion a year. icaid to the private market plans of participants’ choice. 21 report by State Auditor Beth Among other Medicaid issues awaiting the Charlotte Florida received a three-year extension of the pilot Wood’s office found records at Republican after he’s sworn in Jan. 5 is a decision about project, and the Obama administration is now negotiating a Durham Technical Community whether to expand Medicaid enrollment under the federal waiver to expand the program statewide. College were altered or forged health reform law beginning in 2014 by 500,000 North Caro- Herrera said first-year savings under a statewide plan ahead of a double-check into how linians. would be $1 billion, and Florida’s Medicaid officials are many students were enrolled. The “He will not expand Medicaid so long as we don’t “optimistic” for approval to expand to all 67 counties. head count determines how much know those long-term costs,” said Ricky Diaz, a spokesman If approval is granted, she said, “it means reform can teaching funds community colleg- for the McCrory transition team. happen in a bipartisan way regardless of who’s in the White es get. The Durham school got $17 But he and his teams of policy experts are “going to be House.” million in instructional funds in looking at fraud and waste and abuse Whether to implement struc- the year that ended in June. State in the [Medicaid] system,” Diaz said. tural changes in the state’s Medicaid auditors blamed two former Dur- North Carolina has been deal- plan is just one weighty issue facing ham Tech employees for fudg- ing for years with major cost over- McCrory. ing the records. The community runs in Medicaid. The government Under the Patient Protection system’s own auditors have long health plan for the poor was in the and Affordable Care Act, Obam- complained of “colleges altering red by some $200 million three years acare’s formal title, some 30 million course file documentation prior ago, $600 million two years ago, and Americans could be added to the to submitting the files to auditors $375 million in the fiscal year that Medicaid rolls or to private insurance for review,” Wood’s office said. ended June 30. The state spent $14.2 by 2022, according to the Congressio- Durham Tech President William billion on Medicaid in that fiscal year. nal Budget Office. That includes the Ingram says the college’s senior “We’re looking at all options for estimated half-million in North Caro- leadership didn’t know it was Medicaid [reform],” Diaz said. “In lina. happening. State auditors say the terms of the Florida model, we’re ob- States and the federal govern- community college system’s cen- viously aware of it.” ment would split the estimated cost tral office should quit giving cam- According to calculations by of $1.03 trillion from 2013-22. puses a two-week notice of which the Naples, Fla.-based Foundation “It would be irresponsible” at courses get headcounts. for Government Accountability, if the this point to expand the state’s Med- Florida pilot project were implement- icaid population, Diaz said. ed in North Carolina, the state would That is because there are many EPA denies waiver save $1.4 billion annually in the Med- unresolved policy and implementa- The U.S. Environmental Pro- icaid-eligible population and $1.3 bil- tion questions surrounding Obam- tection Agency denied requests lion in the disabled population. acare at the federal level, combined from Gov. Bev Perdue and other “We’ll look at all models around Florida’s Medicaid reform efforts have gar- with North Carolina’s high unem- the country, including Florida, to de- nered national acclaim, including in this ployment and stalled economy, Diaz governors to waive production report from The Heritage Foundation. requirements for corn-based etha- termine what’s best for North Caro- said. nol, the AP reports. A renewable lina,” Diaz said. “There are some real long-term fuels law requires that 13.2 billion That stance is in line with the Republican Governors implications to costs if the government can pull the rug out gallons of ethanol be produced by Association. McCrory attended RGA’s annual meeting in from under the state in the future,” Diaz said. “No governor this year and 15 billion gallons be November in Las Vegas. The organization represents the na- has all the information to make an informed decision.” produced by 2015. That’s good tion’s 30 GOP governors and has been studying the Florida Nina Owcharenko, a Charlotte native who is director for corn farmers, but it’s angered pilot project for years. of the Center for Health Policy Studies at the Heritage Foun- poultry, hog, and cattle farmers. “The RGA recognizes there is not a one-size-fits-all dation, said states should oppose Medicaid expansion. They say they’ve seen big jumps solution to Medicaid, and many states are pursuing inno- “I think that we need to be articulating that the idea in corn-based feed costs as corn is vative reforms,” said Mike Schrimpf, RGA communications for expanding health care coverage is not to expand depen- diverted to make ethanol vehicle director. dence on the government,” Owcharenko said. fuel. States requesting the waiver “The RGA wants the federal government to give states Last year’s House budget plan crafted by U.S. Rep. say reduced corn production due the flexibility needed to manage their programs for their Paul Ryan, R-Wis., included premium support for Medicare. to this year’s drought has made unique populations,” Schrimpf said. “Consequently, we do She said it resonated with seniors by giving them the option the problem even worse. Gov- not champion any state’s specific model.” of choosing their own health plans. ernors from Arkansas, North The Florida pilot was launched seven years ago in five “[L]et’s think about the idea of giving premium sup- Carolina, New Mexico, Georgia, counties. Last year it saved the state $118 million. port to Medicaid. Give those families in the Medicaid Texas, Virginia, Maryland, Dela- The pilot model is a managed care plan. Under that program the option of taking their dollars and buying the ware, Utah, and Wyoming asked system, medical plan providers pay for budget overruns. In health insurance plan they want, not what the government for the waiver, along with mem- North Carolina’s system, managed by the nonprofit Com- negotiates or not a public option,” Owcharenko said. bers of Congress and a coalition munity Care of North Carolina network, taxpayers pick up “Why can’t we say in Medicaid we want to allow par- of farm groups and other indus- the overages. ents to get their kids out of a failing health care program” tries that have opposed increased The Florida pilot provides cash incentives for healthy and into the private health insurance market, she asked. ethanol production. Gov. Mike behaviors and has customized benefits. It lets enrollees “And then think about how can we restructure and do bet- Beebe, D-Ark., said in a letter to choose among 11 plans, including Medicaid managed care ter governance in a smaller Medicaid program.” the EPA in August that ethanol plans, private insurance companies, and physician-owned States considering expanding Medicaid rolls need to production was taking a “terrible private networks. understand that the people making up much of the unin- toll” on animal agriculture in his Christie Herrera, vice president for policy at the Foun- sured population “are not the healthy people,” she said. state and that consumers would dation for Government Accountability, said she has received “They are in and out of prison, they have lots of sub- pay more for food as a result. CJ no feedback from the RGA, although it has been studying stance and mental health issues,” Owcharenko said. “This the Florida pilot since its inception in 2006. is going to be a costly population” to cover. CJ DECEMBER 2012 | CAROLINA JOURNAL PAGE 5 Washington Hoyle Assures Lawmakers TIMS Will Improve Tax Collections

By Sam A. Hieb impacts to the project and a deficit du- employees will be engaged in training pays. So while the money’s going out, Contributor ration lasting 20 months.” and implementing the new system. it sometimes takes several years for it RALEIGH In order to meet this challenge, “We’re going to have to take to come back in. ou know the old saying you the department worked with its ven- somebody from every department to With that in mind, Hoyle recalled have to spend money to make dor to devise what it described as “an help us get that training done,” Hoyle the challenges the N.C. Division of Mo- money. aggressive, yet innovative approach.” said. “That means taking auditors off tor Vehicles faced when it converted to YThat’s the message N.C. Depart- Compliance and collection efforts the road,” which in turn could lead to the STARS system in the mid-1990s. ment of Revenue Secretary David were moved to the front of the project. a short-term dip in revenue. Hoyle recalled receiving calls Hoyle wants to send as the department Two big payoffs were an automated But the long-term benefits of the from constituents — he was serving puts the finishing touches on its new attachment process that streamlined new system will pay off in the end, in the state Senate at the time — com- Tax Information Management System. the collection Hoyle main- plaining they couldn’t get titles and And while Hoyle is confident the of garnished tains. Basi- registrations. new system will not only pay for itself wages and cally, it will “For about a month or two, we but also generate more revenue for the an automated make it easier went through some problems. But now state, there have been — and most like- return mail for the state it is working great,” Hoyle said of the ly will be — some bumps in the road. system that to collect tax- DMV’s system. “I want to put you on notice and could update es. Similar problems occurred when say there might be some challenges efficiently ad- H o y l e the state centralized its child support during the changeover,” Hoyle recent- dresses of de- said collect- collection system. Again, Hoyle re- ly told the General Assembly’s Rev- linquent tax- ing payroll ceived phone calls from constituents enue Laws Study Committee. payers when taxes from wondering where their checks were. Hoyle said the new system was c o l l e c t i o n b u s i n e s s e s “I thought if this goes on much necessary because the department’s notices were can be prob- current system was 25 years old, which returned via lematic. The longer, Lord, I don’t know what’s go- is comparable to a “90-year-old man mail. new system ing to happen,” Hoyle said. trying to play in the NFL.” T h o s e will be able to But those problems were worked According to a 2011 report issued two initia- conduct au- out, and Hoyle is confident any prob- by NCDOR, the overall projected cost tives are part dits in a more lems with his department’s system of implementing the TIMS system was of $191 mil- timely fash- will be worked out as well. set at $86 million. lion in gross ion. “It is, in my opinion, one of the But the General Assembly ap- b e n e f i t s , H o y l e greatest successes in government,” propriated only $45 million, meaning which have e x p l a i n e d Hoyle said. the department would have to devise enabled the department to collect $45 that sometimes it can take three or four A member of the legislative com- a plan using a portion of the benefits million toward its vendor fund. years to conduct audits on businesses, mittee, Sen. Fletcher Hartsell, R-Cabar- derived from the new system to pay its Hoyle recently told the commit- after which time the businesses could rus, said that while he hasn’t “gotten vendor the remaining $41 million. tee the new system will be in place ful- be hundreds of thousands of dollars in into the weeds” of the project, he be- In the meantime, the economy ly by August 2013. But even then there arrears. lieves it is indeed a necessary upgrade. collapsed, leaving the state with a will still be challenges. Delays conducting audits can “State government has so many huge budget deficit. One major challenge, Hoyle said, lead to what Hoyle described as a antiquated systems,” Hartsell said. “Unfortunately, no one antici- will be training employees on the new “double-whammy.” Businesses with- “This appears to have real function- pated the depth or length of the re- system while keeping the department hold taxes from employees’ paychecks, ality and will get done what we have cession,” the report stated. “Budget — which takes in approximately $105 but do not remit those taxes to the state. been trying to do for some time. From projections showed vendor invoices million in revenue per day — running In the meantime employees — what I gather, I do think it will be would come ahead of generated rev- at full speed. “it’s not their fault,” he added — file of real assistance in integrating the enue, which would result in negative Between 130 and 150 department a return with the state, which the state functions of tax collections.” CJ

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Finished reading all the great articles in this month’s Carolina Jour- nal? Don’t just throw it in the recycling bin, pass it along to a friend or neighbor, and ask them to do the same. Thanks. PAGE 6 DECEMBER 2012 | CAROLINA JOURNAL Washington Critic Says Public-Sector Unions Big Election Winners Nationally By Dan E. Way “The unions almost singlehand- not their business,” Factor said. Their mostly from the forced-dues states.” Associate Editor edly won the election for President goal is to procure the sweetest deals for “The teachers unions spend mil- AMELIA ISLAND, Fla. Obama, and there’s a real danger with their members. lions of dollars to quash school choice overnment employee unions this imbalance that the unions now 4) Obama has given government initiatives” and homeschooling be- largely were responsible for the have the political infrastructure to se- employee unions more access to the cause education reform threatens their re-election of President Obama, cure a permanent majority” for the White House and “more kickbacks” control of students, Factor said. andG will seek payback through weaker Democratic Party, Factor said. than any other president in history, 7) “Government unions are bank- right-to-work laws and approval of Ever-growing government em- Factor said. He’s unionized hundreds rupting our states,” Factor said. States collective bargaining rights for 21 mil- ployee unions and the “shadow boss- of thousands of government workers with the largest and strongest unions lion health care workers under Obam- es” who pull the strings in the back- and reduced scrutiny of their finances. also are those with the worst budgets, acare, union critic Mallory Factor says. ground drive “He is truly and unions perhaps are the major con- Although North Carolina is a big government our first union tributing factor to state and local bud- right-to-work state where collective spending, over- label president,” get deficits, he said. bargaining with government employ- regulation, and Factor said. “They’re crowding out other ees is illegal, Factor, author of the book statism, Factor 5) “Govern- spending in state and local budgets,” ShadowBosses and one of the nation’s said. He gave 10 ment unions get Factor said. Of the 10 states with the most outspoken critics of public work- reasons union ex- huge subsidies highest per capita spending, all are er unions, said vigilance is essential. pansion among from taxpayers,” unionized, and none are right-to-work “The unions have representatives government em- including time states. in every congressional district” in the ployees is ill-ad- not spent doing 8) Government unions were great country working to undermine exist- vised: their jobs, Factor supporters of the Occupy Wall Street ing laws, Factor said at a November 1) Union said. movement, Factor said. journalism conference of the Franklin costs threaten to “It’s called “But it’s the union bosses who Center for Government & Public Integ- bankrupt federal, official time,” are the true 1 percent,” he said. Union rity. “North Carolina is still one of the state, and local totals 23 million bosses make on average more than 10 free states, and nobody likes that in the economies, and man-hours, and times the average union worker’s sal- union movement.” corrupt the politi- costs taxpayers ary. Unions can’t attack collective cal process in di- more than $1 bil- 9) The Service Employees Inter- bargaining prohibitions at the state rectly challenging lion yearly, Factor national Union worked with the 2008 government level in North Carolina our system of free said, citing the Obama transition team on a legislative “because it’s too obvious. They’re elections, Factor federal Office of working on the local elections, the said. Personnel Man- agenda that eventually would union- school boards. You can’t believe all the Unions col- agement. ize health care workers if Obamacare stuff they’re trying to get done, and lect more than “No one became law, Factor said. Today, fewer they’re doing it,” Factor said. $14 billion a year knows for sure” than 10 percent of health care workers are unionized. “You have to be vigilant, or you in dues that can Mallory Factory, a critic of public-sector what official time will have problems,” especially in edu- be documented, unions, has written a book about their includes, Fac- “When Obamacare fully kicks cation, he said. Factor said, and effects on taxpayers and government. tor said, because in, there will be 21 million health care Steven Greenhut, vice president billions more that Obama reduced workers” flowing into unions, Factor of journalism for the Franklin Cen- cannot. Unions claim only about 20 to federal reporting requirements. It can said. ter and author of Plunder! How Public 30 percent of dues go to member rep- include political lobbying. 10) To continue expanding, Employee Unions are Raiding Treasuries, resentation. 6) Teachers unions are holding unions curry political favors to Controlling Our Lives and Bankrupting A lot of the balance goes to lobby back K-12 education, “and they’re get state governments to catego- the Nation, agreed with Factor’s assess- for unending benefits from govern- making our students less competitive,” rize some self-employed workers as ment, especially about education. ment, Factor said. according to Factor. Dues from teach- government employees, who then Although North Carolina teach- “If elected officials cross the ers are $2 billion per year, “and this is can be unionized. CJ er associations do not have collective unions, the unions will throw them bargaining rights, they already serve right out of office. Unions reward their much like unions, Greenhut said. And, friends and punish their enemies very according to state Treasurer Janet Cow- effectively,” Factor said. Visit ell, North Carolina’s unfunded pen- 2) Unions place exorbitant de- sion liability for government workers, mands on government, and high-cost Carolina Journal Online even without unionization, is about government contracts make life more $30 billion. burdensome for taxpayers, he said. Nationally, government workers Government employees make are five times more likely than private- more money, work fewer hours, and sector workers to be in a union, Factor have greater retirement and job securi- said. And they are doubling down on ty than private-sector employees, Fac- spending, activism, and electioneer- tor said. Nearly 500,000 federal gov- ing to build a “monumental effort” in ernment employees make more than support of their aims of building larger $100,000 yearly, excluding benefits, bases in government representation. and receive 10 weeks of vacation. Factor, also a columnist for 3) Government unions are pri- Forbes, said in 2011 less than 7 per- vate organizations, yet they get special cent of private-sector workers but 41 benefits and treatment from govern- percent of government workers were ment. unionized. The Postal Service alone “Government employee unions has 477,000 unionized workers, 2.5 get their business directly from the times the 219,000 union members in government,” Factor said. The more the entire U.S. auto industry. employees they represent, the more Government unions represent al- dues they get. most every type of government worker “Government unions don’t work today, Factor said. for the public good and never have. It’s http://carolinajournal.com DECEMBER 2012 | CAROLINA JOURNAL PAGE 7 Education Education Policy Could Face COMMENTARY Major Change Under McCrory Education Cuts:

By Barry Smith by the General Assembly on the ap- Facts Trump Fiction Associate Editor pointees. They serve eight-year, over- ast year, North Carolina pub- On the other hand, Graham, RALEIGH lapping terms. lic schools operated under the Halifax, Anson, Durham, and Tyr- ith the election of a Repub- The lieutenant governor and first budget passed by the Re- rell public schools were the big lican governor and super- state treasurer round out the members Lpublican legislative majority elected winners. These districts enjoyed majorities in both chambers of the board. in 2010. Doomsday prophets — the per student increases ranging from Wof the General Assembly, observers The terms of three current mem- media, state education officials, and $398 in Graham County to a mind- expect to see changes in the state’s ap- bers — board Chairman Bill Harrison, public school advocacy groups — boggling $1,324 in Tyrrell County. proach toward education. Jean Woolard of Plymouth, and Robert declared that the budget would do All five districts had per-student GOP wins in November could Thomas Speed of Boone — have end- have an immediate effect on PreK-12 ed. The terms of three more — Shirley nothing less than destroy the state’s expenditures that were significantly public schools. While Democratic in- Harris of Troy, Chris Greene of High public education system. In one no- higher than the state average. cumbent June Atkinson retained her Point, and Melissa Bartlett of Raleigh table instance of hyperbolic hilarity, Despite a slight uptick in position as super- — expire March 31. Gov. Bev Perdue proclaimed that education funding, state data indi- intendent of public Stoops said that the budget would “result in genera- cate that the number of classroom instruction, Republi- in recent history, the tional damage” of North Carolina’s teachers dropped by 230 — or an cans are set to have a board chairman has public schools. average of two teachers per school majority of members driven the agenda. It is a year later, and district. According to the on the State Board of “While I would our public schools are still N.C. State Report Cards Education by spring. welcome changes here. So if the Republi- website, North Carolina R e p u b l i c a n to the way that the cans in the General As- employed 99,290 teachers Gov.-elect Pat McCro- state board conducts sembly did not dismantle during the 2010-11 school ry will have the op- its business, I sus- North Carolina’s educa- year. A year later, the num- portunity to appoint pect it will remain a tion system, what exactly ber of classroom teachers six new members by chairman-led group, did they do? According fell to 99,060. March 31 to the board where the board to data recently released For those concerned that governs the looks to the chairman by the N.C. Department about class sizes, they state’s public school for its direction,” of Public Instruction, the TERRY increased in one grade system. Republican Stoops said. answer is clear. In their STOOPS only. The average first- Gov.-elect Pat McCrory, shown first year at the helm, grade classroom added an Dan Forest, who was here at a post-election press Stoops said it elected lieutenant conference in November, has the would be refreshing Republican legislators additional student in 2012 governor, also sits opportunity to appoint six new to see a board that increased education to reach 20 students. Kin- on the board, giving members to the State Board of would be open to air- spending, made slight reductions in dergarten and second-grade class- Republicans and Re- Education by March 31. (CJ photo ing different views. the number of teaching positions, rooms each had one fewer student, publican appointees by Don Carrington) Stoops also and maintained class sizes in most on average, compared to the prior seven of the 13 seats. credits Atkinson with grades. year. Average class sizes in grades “The tone is going to be set by being adaptable and said that there Between the 2010-11 and three through eight, as well as high whoever McCrory appoints as chair- will be points of agreement between 2011-12 school years, total educa- school English, math, and science man of the state board,” said Terry her and the General Assembly. tion spending rose by $95 million, courses, did not change. Stoops, director of research and educa- “June Atkinson has always been or a modest $22 per student. State While it is satisfying to set the tion studies at the John Locke Founda- a proponent of vocational education,” funding, which accounts for two- record straight, I contend that fund- tion. “If he appoints a reformer, there’s Stoops said. “That will be one of the thirds of public school spending in ing, staffing levels, and class size a likelihood of disagreement among priorities of the legislature going into North Carolina, increased by $322 inputs mean little in assessing the the board members. If he appoints the next session.” million, or an average of $200 per quality of education in North Caro- someone who is more moderate, then Atkinson said she has worked student. In per-student terms, only lina. Rather than asking whether the expect incremental changes, but noth- with three different board chairmen, 13 of the state’s 115 school districts state allocates “enough” resources ing dramatic.” with each having different modes of had fewer state dollars than the to provide a quality education, we So far, McCrory hasn’t floated operation. year before. During the same year, should be asking “how” public any candidates as potential selections “And I plan to adjust to the role federal funding dropped by $234.5 schools spend their money. Maxi- to the board, let alone suggesting who that the next state board chairman million — an average decrease of mizing the return on our annual $12 would lead it. wants to play,” Atkinson said. $173 per student. Finally, localities billion investment in public schools “Right now, no decisions have Atkinson said she expects to increased the local appropriation by is one of the most important rea- been made,” said Ricky Diaz, a spokes- avoid a repeat of problems that oc- $7.4 million. Nevertheless, local ap- sons to rethink the way we measure man for McCrory’s transition team. “I curred when there was friction be- propriations did not keep up with educational quality. don’t really have any names for you tween former state Superintendent statewide enrollment growth and Unfortunately, many dismiss because no promises have been made Bob Etheridge and the board appoint- thus reduced spending by an aver- the “how” because it requires them to anyone.” ed by the last Republican governor, Jim age of $5 per student. to concede that increasing student As for the superintendent, Atkin- Martin. Of course, every year there performance takes much more than son said she is ready to adapt to chang- She said that some of the conten- are education budget winners and reaching some arbitrary amount es on the board. tion back then was the result of the losers. The five districts with the of spending, number of teachers, “I am optimistic that the gover- state board wanting to appoint a staff largest cuts in total per-pupil spend- or students in a classroom. It takes nor-elect will appoint qualified people member to serve its own needs. ing — Washington, Hyde, Mitchell, strategic investments in exceptional to serve as members of the State Board Atkinson said that a recent state Asheboro, and Lexington — had educators and proven instructional of Education,” Atkinson said. “I be- superior court case has defined the decreases of between $668 and $827 practices. CJ lieve I will be able to work with the roles of the state board and the state per student. Despite these budget people he appoints.” superintendent. reductions, per-student expendi- Dr. Terry Stoops is director of The N.C. Constitution gives the “It’s my intention to value the tures in all five districts remained research and education studies at the governor the authority to appoint 11 of role of the state board,” Atkinson said. higher than the state average. John Locke Foundation. the 13 members of the board. The gov- “It’s anticipated that I will get that ernor is required to get confirmation mutual respect as far as our roles.” CJ PAGE 8 DECEMBER 2012 | CAROLINA JOURNAL Education Education Savings Accounts May Enter N.C. School Choice Lexicon By Dan Way dents adopted out of the state’s foster care system, posal. In the upcoming session, the tax reform issue Associate Editor and students in failing schools to participate in the may require a rethinking on the scholarship initia- RALEIGH 2013-14 school year. tive, Stam said. s the school choice movement continues to The expansion grants eligibility to up to 200,000 “If the Senate does its tax reform the way the grow in North Carolina, analysts here and in students, or 20 percent of statewide enrollment. Senate wants to do it, there wouldn’t be much of a other states are examining with heightened Terry Stoops, director of research and edu- tax to take the credit against,” he said. interestA an education savings account program that cation studies at JLF, has “Whether it’s a is quickly growing in Arizona. been monitoring the Ari- tax credit or some other “I do think that education savings accounts zona education savings mechanism, that’s a tacti- are the future. They are school choice 2.0,” Jonathan account formula. cal decision that needs to Butcher, education director at the Goldwater Insti- “North Carolina be made” about how to tute in Phoenix, Ariz., said during the recent 20th an- should consider the edu- deliver education dollars nual meeting of the State Policy Network in Amelia cation savings account to low-income students Island, Fla. model. It gives families for school choice, Stam “Think of health savings accounts ... and take nearly complete control said. that and put it in the world of education,” Butcher over education dollars “The last time I talk- said in explaining how the program works. “The par- and, thus, nearly complete ed to [Senate leader] Phil ents essentially become private contractors for the control over the education Berger about it, he was all state, for education.” of their children,” he said. in favor of it,” Stam said The state takes 90 percent of the money a school “Arizona has long of the concept of allow- district would receive to educate a child and puts been a leader in provid- ing education dollars to it into a limited-use debit account operated by the ing educational options to follow students to private family. The money can be used for private schools, families, and we should schools. “With him it’s licensed therapists, tutors, textbooks, and other ma- monitor the implementa- just a mechanism ques- terials. Unspent money can be placed in college sav- tion of their ESA program tion.” ings accounts. closely. If the program Meanwhile, accord- North Carolina House Majority Leader Paul lives up to the promise, ing to the 2012 Phi Delta “Skip” Stam, R-Wake, said he is exploring potential then North Carolina should not hesitate to replicate Kappa/Gallup poll taken in May and June, the legislation for education savings accounts as a re- it here,” Stoops said. public is becoming more receptive to issues such as form in North Carolina’s school “I am certain that the Re- school vouchers for private schools. Phi Delta Kappa choice movement. publicans will introduce a hand- is a global professional education organization. Stam successfully spon- ful of tax credit scholarship bills “[T]he public is split in its support of school sored legislation last year giving Education in the upcoming legislative ses- tax relief to parents of students sion,” Stoops said. “Legislative vouchers, with nearly half (44 percent) believing that with special needs who educate savings accounts leaders will build on the success we should allow students and parents to choose a their children privately. He also of the special-needs tax credit private school to attend at public expense, up 10 per- introduced a measure establish- give families passed in 2011.” centage points from last year,” Phi Delta Kappa said ing tax credits for donors who ‘almost complete Stoops said Stam is one of in a written statement following the survey. fund scholarships for low-in- the most knowledgeable and en- As school choice gains momentum, Neal Mc- come K-12 students. control over thusiastic proponents of school Cluskey, associate director of the Cato Institute’s The second proposal did choice in the General Assembly. Center for Educational Freedom, said reformers not pass, but Stam said he’s not education “Many legislators look should be aware of research that shows up to one- done. “Yes, I’m definitely going to his leadership in the area,” third of private school students transferring to char- to try to get a substantial credit dollars’ Stoops said. “In 2013, I believe ter schools are using vouchers. for parents whose kids are going that North Carolina will join Other research shows that tax credits end up to private schools,” he said. Arizona, Florida, Indiana, and being less regulated than vouchers, he said. CJ “It could be education savings accounts, schol- Louisiana as leaders in arship grant deductions, there’s many different the school reform move- methods” under consideration, Stam said. ment.” “Financial accountability and academic ac- “I’ve been looking countability are two very important things, but at all the surveys people they’ve got to be crafted in a precise way,” for this have been sending in to program to work as it expands, Butcher said. various groups … to sort “We don’t want to make it something that is of figure out where we unusable by parents, and it’s critical that it’s some- are” in terms of support thing that parents are required to report to the state,” for shifting education he said. dollars to school choice “This is a program that leaves behind us de- initiatives, Stam said. “I bates about what is a good school, what defines a think there’s substantial good school, and how do we get kids in just a good interest in it.” school,” said Butcher, who also spoke at a Nov. 19 Last year, Stam John Locke Foundation function. pushed legislation for a “We need to talk about effective programs, scholarship tax credit for effective tutors, effective online courses, effective which donors would re- private schools,” Butcher said. “And we need to be ceive a dollar-for-dollar thinking about how do we give a child a great experi- deduction when estab- ence in K-12 and beyond, and that’s what education lishing a scholarship for savings accounts do. They allow us to craft such a low-income students to program.” attend private schools. The Arizona program initially targeted 125,000 But the short leg- special-needs students. Of those, 400 students were islative session ended enrolled. before both houses and Last spring, Gov. Jan Brewer signed a bill to Gov. Bev Perdue were allow children of active-duty military families, stu- able to consider the pro- DECEMBER 2012 | CAROLINA JOURNAL PAGE 9 Education N.C. Charter Enrollment Growth Follows National Trend By Dan E. Way educational options,” Darrell Allison, movement, Neal McCluskey, associate charter schools. In North Carolina, Associate Editor president of Parents for Educational director of the Cato Institute’s Center there are more than 30,000 families on RALEIGH Freedom in North Carolina, said in a for Educational Freedom, said polling charter school waiting lists. he number of students attending written statement. shows people have an emotional at- Indeed, the South is demonstrat- public charter schools contin- There will be 132 charter schools tachment to public schools and believe ing rapid expansion of charter school ues to rise, and Durham Public in North Carolina in 2013. they are “what keeps us from becom- enrollment. SchoolsT is ranked 22nd nationally, the “The fact that these schools can ing Balkanized.” “School districts with high con- only district in North Carolina with 10 individualize their curriculum to a But McCluskey cites a body of centrations of students enrolled in percent or more of its students in char- student’s par- anecdotal evi- charter schools are more likely to be lo- ter schools. ticular needs dence suggest- cated in the Midwest and Northeast re- In a November report, “A Grow- while produc- ing that the gions of the country,” the report stated. ing Movement: America’s Largest ing results opposite may “In contrast, a large portion of Charter School Communities,” charter is why the be true. districts with high growth in the num- ber of charter school students are lo- schools are labeled “the fastest-grow- demand for O n e - cated in the South and West regions. ing sector of America’s public educa- public char- size-fits-all, School districts with large numbers of tion system.” ters is growing t r a d i t i o n a l students enrolled in charter schools are There are more than 2 million across North g o v e r n m e n t spread out across the nation,” the re- students — nearly 5 percent of the na- Carolina,” Al- school mod- port said. tional school population — enrolled lison said. He els attempt to Los Angeles Unified School Dis- in charter schools in 41 states and the hopes to see instill shared trict had the highest charter school en- District of Columbia, said the annual the number values, cul- rollment for any school system in the report, issued by the National Alliance grow, particu- ture, and tra- country, with nearly 100,000 students. for Public Charter Schools. larly in rural ditions. That That number of students would “Today, a record number of areas. creates conflict place LAUSD’s charter school enroll- school districts — seven — have at “ T h e because stu- ment alone in the top 30 of school dis- least 30 percent of their public school growing mar- dents maintain tricts nationwide, according to the re- students enrolled in public charter ket share of deeply held port. Charter school enrollment in Los schools,” the report said. charter schools beliefs, values, Angeles jumped 24 percent from 2010- Charter schools in New Orleans in North Caro- racial and cul- 11 to 2011-12. enroll 76 percent of public school stu- lina is a testa- tural practices According to the 2012 Phi Delta dents. A total of 25 school districts ment to the and behaviors, Kappa/Gallup poll taken in May and June, a significant majority of Ameri- have 20 percent or more of their pub- p o p u l a r i t y political pref- cans support charter school options. lic school students enrolled in charter and success of erences, and However, they are divided more no- schools, 18 more than when the first these public religious affili- schools of choice,” said Terry Stoops, ticeably along political party lines for report was published seven years ago. ations they may not be willing to com- the first time, “with Republicans more director of research and education More than 100 districts now have promise, McCluskey said. supportive (80 percent) than Demo- studies at the John Locke Foundation. at least 10 percent of public school “What they think is binding us crats (54 percent).” students in charter schools, includ- Legislators relaxed the charter is tending to rip us apart,” McCluskey The overall public approval of ing Durham Public Schools, which enrollment restrictions and lifted the said of the traditional public school charter schools was 66 percent. That is enrolls 3,450 students in its nine char- 100-school cap on charters in 2011, “so model. “It’s dividing us, and it’s giving down from a record 70 percent in 2011 ter schools and 32,654 in noncharter I expect that the market share of char- us terrible academic outcomes.” after a decade of rising support, poll schools. ter schools, particularly in urban and According to the National Alli- results showed. But the approval rat- The report “is a reminder of what suburban counties, will grow expo- ance for Public Charter Schools report, ing remains above the 51 and 64 per- is happening in North Carolina — that nentially,” Stoops said. there are more than 610,000 students cent approval ratings of 2008 and 2009, families are demanding high-quality In supporting the school choice nationwide on waiting lists to attend respectively. CJ Locke, Jefferson and the Justices: Foundations and Failures of the U.S. Government Visit our Wilmington regional page

http://wilmington.johnlocke.org By George M. Stephens Preface by Newt Gingrich The John Locke Foundation has five regional Web sites span- “This book is about American ning the state from the mountains politics and law; it is also about to the sea. the roots of the Contract with America. A logical place to find The Wilmington regional page the intent of the Founders is in includes news, policy reports Locke, [and] Stephens makes and research of interest to a contribution to highlighting people in the coastal area. this.” Newt Gingrich It also features the blog Squall Former Speaker Lines, featuring commentary U.S. House on issues confronting coastal of Representatives N.C. residents.

The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 Algora Publishing, New York (www.algora.com) PAGE 10 DECEMBER 2012 | CAROLINA JOURNAL Local Government Town and County GOP Makes Historic Gains on County Level Durham transit tax By Sam A. Hieb Durham County commis- Contributor sioners voted Nov. 26 to begin in GREENSBORO April collecting a half-cent per dol- or the first time since re- lar sales tax on purchases, WRAL. cords have been kept by com reports. The tax, approved by the North Carolina Asso- voters in 2011, is dedicated to fund ciationF of County Commission- transit projects. ers — and possibly for the first Durham postponed collect- time since the 19th century — ing the tax until voters in Orange Republicans hold a majority of and Wake counties considered seats on county commissions in similar tax measures. Even though the Tar Heel State. Orange County voters backed that Pending results from two county’s half-cent sales tax Nov. 6 recounts in the western part of by a 59-41 margin, Wake County the state, Republicans elected Republicans now dominate the boards of county commissioners in 53 of North Carolina’s 304 commissioners, Democrats 100 counties, with Buncombe still undecided at press time. In two counties, Perquimans commissioners have not placed and Jackson, neither party has a majority of the county boards. (CJ graphic) the sales tax measure on the ballot. 270. Six commissioners are un- Durham went ahead with affiliated. In an interview with Carolina Journal, Henning says plans to begin collecting the tax Again, pending recounts, Republicans will hold the constituents saw a county saddled with debt and riddled at the same time Orange County’s majority on either 53 or 54 county boards, with Democrats with internal problems. tax will take effect. holding 44 or 45. Two boards have no partisan majority. “One of the things I heard frequently was they would Transit planners envisioned These results continue a steady but dramatic turn- just like us to get down to business. There are a lot of people the tax underwriting part of the around of the fates of the GOP in local races over the past out there unemployed, on fixed incomes, and we keep talk- costs of light rail, expanded bus few decades. In 2010 there were 295 Democrat commission- ing about raising property taxes, sales taxes, and any other service, and other regional trans- ers and 277 Republicans; Democrats controlled 50 boards, tax you can think of,” Henning said. “We have a p.r. prob- portation projects. The Republi- Republicans 49. lem here in the county, whether it’s fair or not. There’s a can majority on the Wake County Indeed, Republicans had been gaining gradually since perception that there hasn’t been a lot of transparency or commission remains opposed to the party hit its low point in 1976, when Republicans held accountability.” fixed rail, making it unclear if the just 46 of 484 county commission seats, and Democrats con- Indeed, Guilford recently has faced two major pub- board will place the sales tax be- trolled 89 of the state’s 100 county commissions. lic relations nightmares. In June, County Manager David County commissions often serve as the initial elected fore voters. Grantham confirmed to local media outlets that the FBI post for candidates who go on to serve and the IRS had interviewed him about in the General Assembly, Congress, questionable land deals involving for- Panthers stadium upgrade or in administrative agencies. A party mer County Manager Brenda Jones whose ranks are growing is perceived Republicans have Fox and former Commissioner Steve The Carolina Panthers are to have a strong bench of candidates for been gaining Arnold, although there was no formal developing plans to upgrade higher public office. investigation. 16-year-old Bank of America Sta- One of the recounts, scheduled gradually since In 2010, Fox also came under fire dium in Charlotte, where the Na- to take place as this issue was going when it was reported the county was tional Football League team plays to press, could switch the partisan bal- the party’s low creating a new position for Arnold after its home games. While the team ance in Buncombe County, currently he declared bankruptcy while still serv- has not announced the scope and controlled by Democrats. Republicans point in 1976 ing on the board. cost of improvements to the pri- Mike Fryar and Christina Merrill — Along with those controversies, vately owned facility, local offi- whose campaigns focused on fiscal con- commissioners didn’t come off well cials show a willingness to cover servatism — appeared set to win their when they attempted to rezone the county prison farm after part of the costs. districts and establish a 4-3 Republican majority. economic developers informed them a manufacturer was There are 32 teams in the Unofficial election results put Merrill ahead by87 interested in the 600-plus-acre property. No concrete plan NFL, and with no team playing in votes, but a mandated review by the county Board of Elec- had been in place to run adequate water and sewer to the Los Angeles, some Charlotte-area tions put Democrat Ellen Frost ahead by 13 votes. property. The company later pulled out, and the project civic and political leaders fear the In Guilford County, however, there was no doubt by died. team could move to Southern Cal- the time votes were tallied on Nov. 6. Republicans took con- The county’s Board of Education has not been immune ifornia unless local and/or state trol of the county commission for the first time in 14 years, to p.r. issues, either. albeit by a slim 5-4 majority. governments pick up some of the One of the projects in a $457 million bond that passed While Republican Hank Henning defeated fellow remodeling costs. in 2008, comprising a major chunk of the county’s $1 billion newcomer Linda Kellerman by a solid majority, the big- Charlotte Chamber presi- debt, was a high school near Piedmont Triad International ger surprise was fellow Republicans Jeff Phillips and Alan dent Bob Morgan told the Char- Airport. Branson unseating Democratic incumbents Paul Gibson lotte Business Journal, “That real- The high school, which originally included an at- and Kirk Perkins, respectively. ity scares the hell out of me. It’s tached wing that would serve autistic students, was slated While all three Republican candidates ran on a plat- sobering.” to cost at least $70 million. Charlotte City Council has form of fiscal conservatism, the victories by Phillips and Branson were surprising because their opponents — both But the school system could not find land for the proj- voted to begin negotiations to help ect — a request to rezone a section in Kernersville was re- pay for upgrades. longtime commissioners — were considered moderate Democrats, far cries from Chairman Skip Alston, an outspo- jected soundly — and now plans for the new school appar- State House Speaker Thom ently have been abandoned. Tillis, R-Mecklenburg, indicated to ken liberal. The outcome was so surprising that the Greensboro With these issues in mind, Henning says county gov- the newspaper that state aid was a ernment needs to reassure taxpayers that there is “a process possibility. News & Record — which was critical of the General Assem- bly’s redistricting that many believe helped Republicans at where it looks like we’re being deliberative. It always seems “Clearly, the economic im- like it’s rushed.” pact of the Carolina Panthers is all levels of government — felt compelled to send a message to the new commissioners. Henning cited Commissioner Bruce Davis’ statement very well-documented,” Tillis at a recent board meeting — later reported by the Rhino- said. “To get to a point where you In an editorial headlined “Not so Fast, Guys,” the N&R wrote that fiscal restraint “won’t be a bad thing as ceros Times — that it was “urgent” that the county grant the could attract a Super Bowl and en- long as the commissioners realize their obligation to invest High Point Arts Council $200,000 because “if we don’t ap- sure [the future of the franchise], in the county’s future, especially education. The new board prove it tonight, the new board will never approve it.” we’re open to discussing that.” CJ shouldn’t lose sight of the bigger picture in its quest for “People have grown cynical,” Henning said. “It smaller government.” seems like there’s always this rush to spend money.” CJ DECEMBER 2012 | CAROLINA JOURNAL PAGE 11 Local Government

Streamside Communities Clash COMMENTARY Over Jordan Lake Pollution Rules A New Day By Michael Lowrey ect than the $1 billion bridge that ev- Associate Editor erybody has in mind.” For N.C. Lobbyists RALEIGH Back on the table is the possibil- ollution rules for the Jordan Lake ity of adding additional capacity to or orth Carolina, unlike much extra-territorial jurisdiction laws in watershed remain controver- near the existing Cape Fear Memorial of the country, handed the place. Such laws allow cities to con- sial, with the General Assembly Bridge in downtown Wilmington. This GOP increased power at all trol planning and zoning in areas againP expected to address the issue in would be cheaper than building the levelsN of state government and in outside their corporate limits. This 2013. The N.C. League of Municipali- Cape Fear Skyway. its delegation to Congress. Voters amounts to controlling land uses ties is asking its members in the basin Wilmington officials aren’t neces- handed Republicans a solid major- over areas where the citizens have for their input. Durham officials like sarily sold on that option, fearing that ity of congressional seats, created no right to vote for those doing the the existing rules, though they want it will dump too much traffic into a a new supermajority in the N.C. controlling. implementation delayed, reports the small area. House, solidified the supermajority NCACC tends to take a more Durham Herald-Sun. Then there’s the question of eco- in the state Senate, and elected the relaxed tone with the General As- “Jordan Lake is a future water nomic development. first GOP governor since 1988. sembly. The League may have a lot supply, as a matter of fact an emer- Leland Mayor Brenda Bozeman Certainly, the State Employees more firepower, but the association gency water supply for the city,” said prefers the existing Cape Fear Memo- Association of North Carolina and continues to support issues that John Cox, stormwater quality manager rial Bridge location but acknowledges the N.C. Association of won’t be high priorities for the city’s pub- other possible Educators were less than for legislators this session. lic works depart- uses for the land. thrilled with the outcome Counties, like cities, ment, during a “ [ W ] i l l of the election. From a tend to clamor for more presentation to Cherokee this be a tug of union perspective, both options to raise taxes. city council. war with those groups will lose member- Simply put, counties be- “That’s a who want to ship and power over the lieve that any measure consideration for to use Wilming- next four years. But in any county has been us, in terms of ton’s waterfront local government, two able to use — a hotel tax, making sure the for other than a more groups will have to sales tax, land transfer lake does not get Currituck bridge access?” consider seriously what fee, or a even a tourism worse in terms of she asks. “It’s they hope to accomplish. CHAD tax — should be allowed water quality.” d e v e l o p e r s ’ On the surface, you ADAMS as an option for all coun- Cox would like Durham and oth- prized real estate.” would think that the ties. Rather than needing er communities on the upper end of North Carolina League of the General Assembly’s the lake to secure a delay on imposing Mecklenburg tax revaluation Municipalities approval to let stricter limits on emissions of nitrogen Mecklenburg County likely will and the North a county ask and phosphorus that enter the wa- redo its 2011 property revaluation or Carolina Asso- voters for a new ter supply. The rules for that area are conduct a new valuation. This comes ciation of Coun- North Carolina tax or fee, coun- scheduled to take effect in 2014, while after a study prompted by public out- ty Commission- ties want access it will be 2017 before new regulations cry found significant problems with ers would be voters sent a to everything go in force for the rest of the lake. the recently determined property val- delighted. After cafeteria-style. Cox notes that a lot of work must ues, reports The Charlotte Observer. all, Gov.-elect strong message The result of be done to figure out how much credit A $254,000 review by Pearson’s Pat McCrory of opposition to that would be to give localities for existing programs. Appraisal Service of the 2011 revalu- served several a plethora of Those determinations depend on re- ation found that the property values terms as mayor larger government new fees and vieing research on a similar effort in calculated often were wrong. The com- in the most wasteful spend- the Chesapeake Bay area. pany found that problems were com- populous city in ing, leaving the Greensboro Mayor Ronnie Per- mon in neighborhoods that had seen North Carolina, public unaware kins is pushing for the General Assem- the largest property value growth. Of and Speaker of the House Thom Til- of how much local government bly to revisit the regulations, passed in the 52 subdivisions with the greatest lis is a former councilman from Cor- actually costs. 2009, which he contends place Guilford growth, Pearson’s found 20 had major nelius. In fact, dozens of legislators Counties also are aware that and Alamance counties at an economic problems and 18 had minor problems. from across the state started in local privatization of alcohol sales might disadvantage to the Triangle. The problems aren’t confined to government, offering more reasons come up, and they want to protect Cape Fear Skyway these desirable neighborhoods. The both groups should be hopeful. local control of ABC revenue. Coun- company also looked at 151 randomly In fact, though, both the ties and cities even want to become Wilmington-area officials are re- selected neighborhoods and found League and the NCACC have as- Internet service providers and com- considering their options for a future problems with the valuations in 49 of sumed very aggressive postures pete with the private sector. bridge over the Cape Fear River. The them. In 15 cases, the problems were with clear political objectives, These are only some of the move is a response to mounting ques- major. primarily to increase government legislative goals of the League and tions that the preferred option, a toll “This level of error rate indicates power — and both organizations the NCACC. Many of their goals bridge called the Cape Fear Skyway, there is a flaw in how the thing was are supported with your tax dollars. express legitimate concerns, such never may be built, reports the Wilm- conducted,” said County Commission- Recently, the League drew the as preventing collective bargaining ington Star-News. er Bill James. “Having someone come ire of many legislators by continu- or stopping costly mandates from “The name Cape Fear Skyway in to do it over from scratch makes a ing to support forced annexation Raleigh. Both groups have their gives the stigma of a $1 billion bridge, lot of sense. Ultimately, there’s a lack and even backed lawsuits against challenges, and they are more likely and what we’re trying to do is de- of confidence in the process and num- the General Assembly for daring to to succeed if they realize it’s a new velop the best transportation solution bers.” allow citizens a say in how annexa- day in Raleigh. CJ that improves the mobility and safety Redoing the 2011 valuation tion was done. The battle between throughout the region,” said Mike Ko- would require legislative approval. the legislature and the cities will zlosky, executive director of the Wilm- Sen.-elect Jeff Tarte, R-Mecklenburg, not be forgotten, and involuntary Chad Adams is the host of ington Metropolitan Planning Organi- has stated that the county’s legisla- annexation may well be history as it “Mornings with Chad Adams” on the zation. tive delegation would support such is in the rest of the country. Big Talker FM, a former vice president “The end project — if it’s a new a move. Another option would be for The League probably will con- of the John Locke Foundation, and a location facility — may not be a cable- the county to conduct another valua- sider backing off its desire to keep former Lee County commissioner. stay bridge, or it might be a lesser proj- tion from scratch. CJ PAGE 12 DECEMBER 2012 | CAROLINA JOURNAL Local Government Appeals Court Rejects Damage Award in Campaign Ad Dispute

By Mitch Kokai defendants intentionally violated” the Queen “no longer than several hours purpose of the ‘Stand by Your Ad’ Associate Editor law. — once only 11 minutes” before head- law.” RALEIGH At issue is the 1999 state law de- ing to the company responsible for “We hold that payment of pro- tate Rep.-elect Joe Sam Queen, D- signed to help voters know who’s re- buying media air time. duction costs for the ‘message,’ here Haywood, cannot collect damag- sponsible for the content of campaign Both Queen and Hise listed them- the videos, constitutes part of the es worth three times the amount messages they see, read, and hear in selves or their campaign committees as sponsorship of an ‘advertisement,’” Sof money his 2010 state Senate oppo- the media. Dubbed “Stand By Your the ad “sponsor” in the required on-air under the law, the judge added. “Thus, nent spent on television ads in their Ad,” the law al- disclosure state- for the ‘sponsors’ to be properly identi- campaign. That’s the unanimous deci- lows a candidate ments. Neither fied, all of the purchasers of both parts sion of a three-judge panel of the N.C. for office to recov- The North Carolina Courts candidate listed of the advertisement [production and Court of Appeals. er damages of up his political party air time] must be identified in the dis- Appellate judges ruled that nei- to three times the as an ad sponsor. claimer.” ther Queen nor Sen. Ralph Hise, R- amount of money Stroud la- Since Queen did not identify the Mitchell, “fully complied” with the spent on “im- bels as “ambigu- Democratic Party as a sponsor or co- state’s 1999 Stand By Your Ad law. Be- proper” advertis- ous” the provision sponsor of his ad, he did not qualify to cause Queen could not show that he ing that does not in the law regard- seek damages in the case. The appel- complied with the law while Hise vio- identify the ad’s ing proper identi- late judges did not address whether lated it, Queen is entitled to no money sponsor correctly. fication of the ad’s Hise and the Republicans followed the in the case. “The en- sponsor. It’s not law in the method they used to pay for “As both plaintiff and defendants forcement mech- clear whether the the media air time. failed to provide proper disclosures of anism chosen by our legislature is General Assembly meant to include Since the appellate panel’s rul- the joint sponsorship of television ad- unique in the world of election law,” the entity that paid to produce the ad, ing was unanimous, the N.C. Supreme vertisements by both the candidate Stroud notes in her opinion. “[I]t ap- the entity that bought the media air Court is not required to take the case. committee and the political party, pears North Carolina has the only time, or both, Stroud wrote. The state’s highest court could choose plaintiff’s claim is barred by the statu- statute that provides candidates with The appellate judges sided with to take the case if Queen appeals. tory tu quoque defense,” according to a private cause of action against their the last option. “Air time without a While Hise’s 2010 victory Judge Donna Stroud’s opinion. The opponents for advertising disclosure message is white noise; the message is knocked Queen out of the state Senate, tu quoque or “you too” defense essen- violations, rather than enforcement the only portion of an ‘advertisement’ both men will serve in the new General tially says that the plaintiff in the case through government-enforced crimi- with any substantive content,” Stroud Assembly that convenes in Raleigh in engaged in the same conduct as the de- nal or civil penalties.” wrote. “Failure to identify the entity January. Hise won re-election to Sen- fendant. A candidate can collect money which paid for the message’s produc- ate District 47, while Queen won an Queen was the incumbent and from his opponent only if the plaintiff tion would be contrary to the primary open race for House District 119. CJ Hise the chal- in a lawsuit can lenger in the 2010 prove that he vio- campaign for the lated none of the Stay in the know with the JLF blogs N.C. Senate Dis- Court rules that law’s disclosure Visit our family of weblogs for immediate analysis and commentary on issues great and small trict 47 seat. Hise requirements and beat Queen with since both that the defendant 56 percent of the candidates failed did commit viola- 57,055 votes cast in tions. The Locker Room is the blog on the main JLF Web site. All JLF employees and many friends of the the western North to provide proper The 2010 race foundation post on this site every day: http://www.johnlocke.org/lockerroom/ Carolina race. between Queen Q u e e n ’ s disclosures, and Hise featured election com- “several hundred mittee filed suit the plaintiff’s thousand dollars” in January 2011 of television ads. Right Angles is the JLF’s blog in the Triangle. Several JLF staffers blog on this site to keep folks in Dur- claim was rejected ham, Raleigh, and Chapel Hill up to date on the latest info: http://triangle.johnlocke.org/blog/ against Hise’s The Democratic committee and and Republican against the N.C. parties paid to Republican Execu- produce the ads tive Committee. The suit contended for their respective candidates. In both that Hise and the GOP violated state cases, the parties paid the bulk of the The Meck Deck is the JLF’s blog in Charlotte. Michael Lowrey blogs on this site and has made it a must- law by failing to disclose properly that bill for the TV ad campaigns. Demo- read for anyone interested in issues in the Queen City: http://charlotte.johnlocke.org/blog/ the Republican group had paid for TV cratic Party contributions covered 91 ads identified as being sponsored by percent of Queen’s advertising, while Hise’s campaign committee. Republican Party contributions paid A Haywood County trial court for 84 percent of Hise’s advertising, ac- ruled in the Republicans’ favor in De- cording to the court opinion. cember 2011. The three-judge appellate “Substantively, the only differ- Squall Lines is the JLF’s blog in Wilmington. Chad Adams and a few coastal friends keep folks on the coast updated on issues facing that region of the state: http://wilmington.johnlocke.org/blog/ panel heard Queen’s appeal Oct. 10. ence in the actions of the plaintiff and Stroud’s opinion noted some of the defendants is that the Democratic the difficulties she and fellow appellate Party ran the contributed funds briefly Judges Cheri Beasley and Rick Elmore through the candidate’s campaign ac- faced in deciding the case. No prior count before they were used for a me- case has interpreted the relevant Stand dia buy, while the Republican Party Piedmont Publius is the JLF’s blog in the Triad. Greensboro blogger and writer Sam A. Hieb mans the By Your Ad law provisions, “and given sent the funds directly to the media controls to keeps citizens updated on issues in the Triad: http://triad.johnlocke.org/blog/ the ambiguity inherent in the statute,” company to be held ‘in escrow’ for the Stroud wrote, “it is not surprising that candidate to be disbursed for a media plaintiff and defendants would come buy only at the candidate’s discretion,” to slightly different understandings of Stroud wrote. the requirements of the statute.” Judges noted that funds Demo- The Wild West is the JLF’s blog in Western North Carolina. Asheville’s Leslee Kulba blogs in this site, The appellate judges “do not crats transferred to Queen’s campaign designed to keep track of issues in the mountains of N.C.: http://western.johnlocke.org/blog/ mean to imply that either plaintiff or account normally remained with The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 DECEMBER 2012 | CAROLINA JOURNAL PAGE 13 Local Government Voters Embrace Bond Referendums, Taxes Not So Much By Barry Smith In Alamance County, voters ap- native to a property tax increase. • Voters in the Union County Associate Editor proved a $15 million bond referendum In addition to Alamance County, town of Indian Trail approved $8.5 mil- RALEIGH for Alamance Community College for the following counties turned down lion in bonds to construct two parks. ov. 6 turned out to be a good an applied technology center. And yet sales tax increase referendums: • Knightdale voters, by a 79 per- day — mostly — for support- they soundly rejected a quarter-cent • Harnett County, where 65 per- cent to 21 percent vote, approved a $3 ers of local bond referendums sales tax increase, part of which would cent said no; 35 percent said yes. million parks and recreation bond ref- Nthroughout North Carolina. Support- pay for the new college structure. Com- • Lenoir County, where 62 per- erendum. ers of local sales tax increases across missioners had adopted a resolution cent said no. • Morrisville voters overwhelm- the state met with less success. saying that the com- • Pasquotank ingly approved two bond referen- Voters in Wilmington decided not munity college bonds County, where 64 per- dums. One was for parks and recre- to put themselves on the hook to build would not be issued un- cent said no. ation bonds, and the other was for a $37 million riverfront minor league less a source other than • Scotland Coun- baseball stadium, one that would have property tax increases ty, where 64 percent street improvement bonds. been used by the Atlanta Braves Class could be found to pay said no. In other ballot measures: A team. That bond referendum, which off the bonds. • Swain County, • Voters in Asheville turned would have increased city property tax Sales tax increases where 74 percent said down a proposal providing for the sale rates by 2.5 cents per $100, went down passed in Edgecombe, no. or lease of its water system to the Met- to defeat by a 70 percent to 30 percent Greene, and Orange Other bond issues ropolitan Sewerage District. vote. counties. generally fared well in • Clay County voters, by a 62 Other bond issues fared much In Orange County, November: percent to 38 percent vote, approved a better. Voters in Alamance and Wake the half-cent per dollar increase is ear- • The town of Cary overwhelm- referendum increasing the number of counties approved giving their county marked for public transit. It passed by ingly approved three bond measures, members of its board of commission- commissioners borrowing power to a 59 percent to 41 percent margin. totaling $80 million. Those bonds will ers from three to five. pay for additions to local community In Edgecombe County, voters provide money to build and equip • Greene County residents, by colleges. approved a quarter-cent per dollar in- fire station facilities, build a new park a 3-1 margin, approved a referendum Wake County voters approved crease by a slim 51 percent to 49 per- while expanding others, and provide changing the residency requirement $200 million in bonds for Wake Techni- cent vote. Local officials plan to use the nearly $58 million in transportation for county commissioners. cal Community College, with the mon- money for a technology center at the funds. ey to be used for three new instruc- Rocky Mount campus of Edgecombe • The Mecklenburg County town • Wrightsville Beach residents tion buildings on the Northern Wake Community College and a work force of Huntersville approved by nearly 2-1 approved, by a 65 percent to 35 percent Campus. Some of the money also is training and development center on votes three bond referendums totaling vote, a referendum banning smoking earmarked for expanding the Public the campus in Tarboro. $30 million. One provides money for on town property along the beach. Safety Education Campus, providing In Greene County, the quarter- street construction and improvements, • Swain County citizens, by a 60 renovations and repairs to the main cent tax increase passed by a 57 percent one for public facilities improvements, percent to 40 percent vote, approved campus, and starting construction of a to 43 percent margin. The sales tax was and one for recreation and parks facili- a new method of electing their com- new RTP Campus in Morrisville. touted as a fairer revenue-raising alter- ties. missioners. CJ PAGE 14 DECEMBER 2012 | CAROLINA JOURNAL From Page 1 Halifax Group Home Staff Helped Mentally Disabled Patient Vote Continued from Page 1 Letter to home operator Pearson sent an email Nov. 6 to Easter Seals President & CEO Connie Cochran expressing his frustration with the voting incident. It contained the following: I know who my daughter voted for and I also know that when I asked who else she replied that she did not know. She did not even know what the president was president of! Also of interest to me is the fact that she CANNOT read other than ‘a dog, cat and such simple words’ and does not even know her COMPLETE address or has not a clue what the phone number of the home is. HOW, if you can justifiably convince me that this is the action (or whatever) of a competent person then you sirs have [my] Full apology. Halifax County elections board chairwoman Marilyn Harris told Carolina Journal that she understood that Darlene Pearson To put it in short, blunt form so you asked for assistance in voting at an early-voting location in Halifax County. (CJ photo by Don Carrington) can understand it is this. My daugh- Darlene’s legal guardians. After Cecil But the exact language of that ally wants to vote. Folks should be able ter can be talked into, convinced to Pearson learned of the voting incident, statute may allow for another interpre- to let you know that they want to vote. do anything at any time if condi- he consulted with the Halifax County tation. It states: We also need to get clarification on tions are right! However, it is my Clerk of Court about his daughter’s “Except as otherwise provided in the process. … Let’s look at absentee contention that if you wrote Barack right to vote. this chapter, each adult client of a facil- voting this year. Thanks,” the memo Obama’s name and Mitt Romney’s The clerk told him that in North ity keeps the same right as any other stated. name on a piece of paper today, right Carolina, a ruling of incompetence citizen of North Carolina to exercise now, she could NOT tell you which does not take away a person’s right all civil rights, including the right to ‘More complex than thought’ was which. … to vote, get married, or enter into con- dispose of property, register and vote, “It looks like our voter issues are When I placed my daughter in tracts, unless those rights are specifi- bring civil actions, and marry and get your home it was not to exploit her more complex than we thought,” re- cally spelled out and included in the a divorce, unless the exercise of a civil sponded Doug Irvin, one of the recipi- in any way concerning politics or competency proceedings, Pearson said. right has been precluded by an unre- any other related activity. It is your ents of the Travis email. The clerk added voked adjudica- J. Luckey Welsh, director of the duty and your job to provide a safe that he could seek tion of incompe- and enjoyable atmosphere for her. Division of State Operated Healthcare to have the order tency.” Facilities, approved an updated policy Cochran told CJ that his organi- amended to state Confusion about The non- zation operates 35 licensed homes in directive Oct. 1 for Murdoch and the that Darlene has profit advocacy other facilities under his supervision. North Carolina. “For voting policy,” who could vote lost those specific organization Dis- “In accordance with the National Voter he said, “we operate under the North rights, but that ability Rights Registration Act of 1973, patients/resi- Carolina Voter’s Bill of Rights,” a com- was evident in each exclusion re- North Carolina dents receiving services of the facilities pilation of state laws addressing vot- quires a separate state-run facilities interprets the law operated by the Division of State Op- ing-rights issues. amendment and a to mean a person erated Healthcare Facilities are to be When asked of the precautions prior to election separate fee. gets to vote unless provided the opportunity to register to that are taken to prevent staff from in- Pearson con- the right specifi- vote or change voter registration infor- fluencing how residents vote, Cochran tacted the State cally has been dis- mation during their admission to the said, ”We don’t influence the votes in Board of Elections for a second opin- allowed. Cecil Pearson never believed facility,” stated the directive. supporting one candidate or another.” ion. “The North Carolina Constitu- his daughter had the right to vote. He The directive says the policy ap- Pearson believes group home tion has no restrictions on the rights also pointed out that, based on Disabil- plies to all patients who are U.S. citi- staff should stay out of the election of incompetents, mentally retarded, or ity Rights’ interpretation, she could zens and are 18 or older prior to an process. “Prior to an election, the mentally impaired to register and vote. marry and sign contracts. election. It includes patients who have homes could send reminder notices to North Carolina is one of a handful of The confusion over voting issues been adjudicated incompetent unless the legal guardian or family contact,” states that does not constitutionally in state-run facilities for the develop- there is a specific court order stat- Pearson said. “If the guardian or fam- restrict the incompetent from voting. mentally disabled and mentality ill ing that an individual’s voting rights ily contact believes it is appropriate for [General Statute] 122C-58 allows an was evident in September and October, have been revoked. Facilities are not the resident to vote, [he] can pick up order of incompetency to exclude the as facility administrators were trying required “to actively offer voter regis- the resident and take him to vote at an right of the incompetent to register and to determine which patients wanted to tration to patients or residents who are early voting site,” he said. “This pro- vote if it is included in the order. There vote. able to safely participate in the process cess would reduce the potential influ- are some constitutional concerns over A Sept. 14 memo to select staff until such time as the patient or resi- ence from the group home staff.” this statute,” wrote the election board’s from Betty Travis, director of program- dent is able to safely complete the pro- Cochran disapproves of Pear- general counsel, Don Wright. ming at the Murdoch Center in Butner, cess.” son’s suggestion. “We don’t support Rep. Marilyn Avila, R-Wake, told Legislative attention addressed incompetent voters housed the guardian, but we support the indi- at the facility for the developmentally CJ that she is concerned about several vidual,” he said. “There is a possibility that this is- disabled. “Effective immediately we voting issues, including the rights and Rights in North Carolina sue of voting rights of the mentally im- need to change our procedures for as- procedures for voting among persons paired may be getting some legislative sessing our individuals regarding vot- who have been declared mentally in- In 1995 Cecil and Judy Pearson attention next year. You may want to ing. NO ASSESSMENTS! I would like competent. “I expect the General As- asked a court to rule that Darlene was discuss this matter with your legisla- you all to meet on Monday and deter- sembly will look into that issue next incompetent and establish them as tors,” Wright added. mine the process for deciding who re- year,” she said. CJ DECEMBER 2012 | CAROLINA JOURNAL PAGE 15 From Page 1 GOP Engineers Sweep of Executive Mansion and General Assembly

Continued from Page 1 Rouzer demanded a recount. The gains for the Republicans mean that they will enjoy a 9-4 advan- tage in the state’s congressional del- egation. Currently, Democrats hold a 7-6 advantage. Republicans also padded their majorities in the General Assembly. When lawmakers convene in Raleigh in January, Republicans will have a 33- 17 advantage in the Senate (currently it’s 31-19) and a 77-43 majority in the House (currently it’s 68-52). Effect of redistricting The effect of redistricting on rep- resentation in Congress and the legis- lature was dramatic. Republicans won just over 49 percent of the congressio- nal vote and slightly more than half the vote in legislative races, and yet took 69 percent of the state’s congressional seats, 66 percent of the state Senate, and 64 percent of the state House. The Executive Mansion will be inhabited by a Republican for the first Having control of redistricting for the first time in a century paid off for Republicans, who won 49 percent of the vote statewide time in 20 years as McCrory hand- but took 69 percent of the state’s congressional seats. (CJ photo by Don Carrington) ily defeated Dalton. Dalton started the race at a disadvantage after cur- for president, said Jonathan Kappler, 77-43 advantage. Incumbent Repub- majority on the state Supreme Court, rent Democratic Gov. Bev Perdue an- research director for the N.C. FreeEn- lican G.L. Pridgen lost his bid for re- as incumbent Justice Paul Newby nounced in January that she would terprise Foundation. election to Ken Waddell in District turned back a challenge from state Ap- not seek re-election. Dalton also had to 46, but incumbent Democrats Marian General Assembly peals Court Judge Jimmy Ervin, 52-48. survive a tough Democratic primary, McLawhorn (District 9), Martha Alex- The Supreme Court almost certainly ander (District 88), and Ray Rapp (Dis- defeating former U.S. Rep. Bob Ether- will rule on the redistricting plan put Republicans picked up two trict 118) were defeated. idge of Harnett County and state Rep. seats in the state Senate, expanding into effect by the 2011-12 session of the Bill Faison of Orange County before In legislative races, Republicans their lead to 33-17. In District 1, a re- found themselves General Assembly. facing McCrory. count found incumbent Democrat Stan in unfamiliar ter- I n c u m b e n t McCrory had a whopping money White trailing Republican challenger ritory when it Appeals Court advantage, spending $7.7 million on Bill Cook by 21 votes out of more than comes to cam- Judge Cressie the race compared to Dalton’s $1.9 mil- Republicans 85,000 cast. Republican Chad Barefoot paign financing. Thigpen lost to lion, according to third-quarter spend- of Wake County picked up the District According to a Chris Dillon, 53- ing reports. outspent 18 seat held by Democrat Doug Berger. N.C. FreeEnter- 47. The other in- “Pat McCrory got more votes In the state House, the GOP net- prise Foundation Democrats cumbent appel- than Mitt Romney,” the GOP candidate ted nine seats, giving Republicans a analysis, Repub- late judges up for licans outspent in House and Democrats 3.5-1 re-election, Linda in the Senate and Senate races McGee and Wanda about 2-1 in the Bryant, retained House. their seats. The foundation also found a few other nuggets during its postelection Wake school board moves briefing: Three Republicans on the Wake • The new Senate will have 14 freshman members, five Democrats County school board sought higher and nine Republicans. office. Only one succeeded. Debra • Thirty of the 50 senators next Goldman lost to Beth Wood in the year will be serving in either their first state auditor’s race, and John Tedesco or second terms. fell to June Atkinson in the contest for • Half of the members of the superintendent of public instruction. Democratic Senate caucus — nine of 18 Goldman and Tedesco will return to — will be African-American. the school board, as their terms expire • There will be 43 freshman in 2013. members of the House next year — 12 The lone victor, Chris Malo- Democrats and 31 Republicans. • Sixty-nine of the 120 represen- ne, defeated former Wake school tatives will be serving in either their board member Lori Millberg for first or second terms. House District 35. The Democratic • Twenty-two of the 43 House majority on the school board will Democratic caucus members will be pick Malone’s successor. CJ African-American. CJ Managing Editor Rick Hender- Judicial races son provided additional reporting for this Conservatives will maintain a 4-3 story. PAGE 16 DECEMBER 2012 | CAROLINA JOURNAL Interview Douthat Makes Both a Material and Moral Case For Capitalism

By CJ Staff RALEIGH he Great Recession offered new “I think what we saw in certain ways ammunition to those attack- in the 2010 midterm is what we saw ing the American system of free Tenterprise, while defenders of that in certain ways with sort of the best system have spent recent years refin- ing their arguments. One of those de- side of the Tea Party: a kind of reas- fenders is Ross Douthat, conservative author, blogger, and New York Times sertion of that case for capitalism. In columnist. Douthat shared his insights about democratic capitalism during the face of sort of the more, you could a visit this fall to Chapel Hill. He dis- say, statist push that the Democratic cussed similar themes during an in- terview with Mitch Kokai for Carolina administration and the Democratic Journal Radio. (Head to http://www. carolinajournal.com/cjradio/ to find a Congress embarked on.” station near you or to learn about the weekly CJ Radio podcast.) Ross Douthat Columnist Kokai: Why is it so important to The New York Times make the moral argument in favor of capitalism?

Douthat: I think it needs to be made because, I mean, for two reasons. … It happens to be true. I mean, there sons between capitalist regimes and moments when, inevitably, the system a number of other writers and think- is clearly a case for the moral superi- collectivist regimes in the 20th century, as a whole is up for a challenge, right? ers who’ve done a good job. I think the ority of what I like to call democratic if you even look at comparisons be- You saw this tragically in Western challenge is, again, to sort of take that capitalism. I think that’s the best term tween, you know, a free market society Europe, in the period between World moral case and link it into a vision of to use for the American system. Its su- like the United States and a somewhat War I, the hyperinflation of the 1920s, broadly shared prosperity, to sort of periority lies not just in the amount of less free market but still market-based and then the Great Depression. Those close the circle between the moral and wealth that the system piles up, but societies in Europe, in each case, it’s are the moments when both fascist the material. So I think, compared to also in the kind of lives it enables its clear that over a long time horizon, the and communist alternatives to capital- 2008, the case for free markets is in a citizens to lead. market system delivers higher rates ism seemed most powerful. And the vastly better philosophical position And at the same time, it also of return — higher rates of wealth, answer to those alternatives is, again, than it was when Lehman Brothers needs to be made because … a success- growth, and so on. on the one hand, sustained moral and was going belly up and so on, but the ful capitalist system, ultimately, also But, it’s also the case that capi- philosophical argument, but also, you sale has not been closed. depends on forces outside itself. Capi- talism as a system produces moments ultimately — and this is, I think, an im- Kokai: talism is not purely self-sustaining. A like the one we’ve been living through portant lesson for political defenders Many of the listeners of purely capitalist culture can’t sustain right now. Periods of recession, periods of the free market — you also have to this program agree, without question, that free markets and capitalism are itself indefinitely. You need deeper of stagnation, and so on. And there is, deliver the goods. great. But I suspect many of your read- sources. You need sources of commu- actually, I think, real value in remind- Clearly, a big difference between ers, especially when you’re wearing nity, family, and so on. ing people of that bigger picture right Ronald Reagan in the 1980s and Barack your New York Times columnist hat, are The point that I’m going to try now. Obama in the last four years is that a bit more skeptical about that idea. So and emphasize is this kind of virtuous Because I think there are a lot of Reagan’s policies were more successful what types of arguments do you have cycle, this kind of symbiosis between Americans, right, who actually listen at delivering the goods, in a sense. And to make to convince these folks? sort of the material and the moral — to the moral case for capitalism and so, again, you don’t want to sort of go the practical case for capitalism and the say, “Well, of course I believe in that. too easy on that sort of more basic case, Douthat: … It’s not really a de- moral case for capitalism — because I But why don’t I have a job? Why aren’t because we are living in a moment of bate about — I mean, we have a con- think it’s very important to make the my wages going up?” And so, again, great sort of material uncertainty for a sensus in this country, on the left and moral case, but it’s also important, es- you can’t separate the two. You can’t great many people. say to a man who doesn’t have a job the right alike, that, in some form, free pecially at a time when the economy markets are the best way. There aren’t or who isn’t as upwardly mobile as Kokai: Are people now more isn’t performing that well, I think in any real communists in American life. he expected to be and so on, you can’t attuned to the arguments in favor of certain ways the material case for capi- And so the question is how much free just say, “Well, this system is morally capitalism? Is there an argument to be talism shouldn’t be slighted. enterprise do we want? How big a wel- superior, even if it isn’t delivering the made that hasn’t yet been made? So, in a sort of odd way, I’m go- fare state do we want? goods.” You have to say, “No, over the ing to try and talk about both — both And so a lot of the arguments I long term it will deliver the goods, and Douthat: the case that capitalism delivers moral I think what we saw end up having just are very practical opportunities for people that other there’s a link between that material in certain ways in the 2010 midterm arguments about the outcomes of the systems don’t but also, I think, an em- case and the moral case, as well.” is what we saw in certain ways with slightly larger welfare states in West- phasis on the link between the material sort of the best side of the Tea Party: ern Europe versus the outcomes we and the moral that can sometimes get Kokai: 2008 seemed to represent a kind of reassertion of that case for have in the United States today, you lost these days. a modern low point for capitalism in capitalism. In the face of sort of the know, sort of growth trajectories over the United States. more, you could say, statist push that the last 30 years. And this is probably Kokai: Let’s delve further into the Democratic administration and the part of why I’m so concerned with the some of these issues. First, the ma- Douthat: Right. Well, it was an Democratic Congress embarked on. I practical dimension. Because I think in terial case for capitalism. Now, this is election held amid a massive financial think you saw a very healthy, in certain my engagement with readers and so the case that’s been made ad nauseam. panic. And if you look back at the his- ways, response on the right — a sort on, I’ll have a lot of readers say, “Well, tory of American capitalism, you know, of return to first principles — [which] sure, you know, I buy in to Adam Douthat: It’s the case that has this was a panic — probably the most said, “OK, well, what is this system Smith. I buy that. But I also think that, been made ad nauseam, but I think that severe panic since the Great Depres- about? Why are we defending it?” you know, we can sort of have our cake it’s right. And in certain ways, it’s the sion, but if you go back into the 19th So I think, in certain ways, that and eat it, too. We can have the benefits easiest case to make. If you look at the century, you had periodic panics like moral groundwork, it has been pretty of competition, but we can also have record over the last 500 years of West- this, you know, every 10, 20, 30 years, well laid by figures like Arthur Brooks more effective government investment ern civilization, if you draw compari- and so on. And those are the kind of at the American Enterprise Institute — in the economy.” CJ DECEMBER 2012 | CAROLINA JOURNAL PAGE 17 Higher Education Fayetteville State To Teach COMMENTARY Signs of Hope Teachers of Entrepreneurs But Not Much Change By Jane S. Shaw research. For example, one reading Contributor was a response by John Mackey, CEO he winds of change may be schools. Several speakers at board RALEIGH of Whole Foods, to economist Milton blowing at University of and committee meetings have ntrepreneurs make things hap- Friedman’s claim that the social re- North Carolina campuses promoted the need to increase the pen by filling a niche in the mar- sponsibility of business is to make a soon.T Some members of the Board number of graduates dramatically ketplace. Edward Stringham profit. Mackey says that his company of Governors are asserting them- to meet the needs of the future Ewants to fill a niche by creating more serves employees and the communi- selves — and important issues and economy. entrepreneurs. ty, not just shareholders; on the other alternate opinions that have long Eshelman, however, made Stringham, a professor at Fay- hand, he doesn’t differ clearly from been ignored are coming to light. the case that projections of future etteville State University, noticed an Friedman because those efforts have In recent years, the board al- demand for graduates should be absence of professors trained in the contributed heartily to Whole Foods’ most exclusively followed the lead viewed “with a jaundiced eye.” principles of entrepreneurship. There profits. of the UNC system’s administra- He emphasized that trying to be appears to be just one other program Two of the readings discussed tion. As the governors appoint the “clairvoyant” about future employ- in the University of North Carolina the market for professors of entrepre- system’s president, it is only natu- ment markets and establishing system with a terminal degree in entre- neurship. In 2003, ral that the board and administra- “overreaching” goals is likely to be preneurship, and a task force of the tion would favor similar policies. counterproductive. it is a narrow one. Academy of Man- With the system’s faculty He also indicated UNC-Chapel Hill agement cited generally on board, there that North Carolina offers a Ph.D. in “growing demand has been little major dis- already may have con- business admin- for faculty in en- sent for many years. siderable “underemploy- istration with a trepreneurship,“ But that has ment” among its college concentration in and a 2012 survey changed. Voting mem- graduates, as roughly strategy and en- by Gonzaga Uni- bers of the BOG are 26 percent of the state’s trepreneurship. It versity professor chosen by the legislature, work force has bachelor’s seems to empha- Todd Finkle found and the 2010 election degrees or above, while size management that demand for brought about a new only 19 percent of the strategy courses them remains Republican majority on JAY jobs require such degrees. the board. They have be- Raleigh business- rather than provide a broad consider- high. He reported that the number of SCHALIN gun expressing opinions man and advisory com- ation of the environment that spawns positions advertised for entrepreneur- contrary to the system’s mittee member Art Pope, entrepreneurs. ship faculty around the world in the longstanding consensus. a board member of the While college entrepreneurship academic year 2010-11 was 283, while Board member Fred Es- John Locke Foundation, added programs are proliferating rapidly, there were only 213 candidates — that helman is leading the charge. that planning for specific quotas there isn’t a big pipeline of professors is, fewer applicants than jobs. In con- Eshelman, founder of medical re- of graduates is the kind of “central to teach them. To train Ph.D. students trast, history departments often have search firm PPD and a large donor planning” proven to fail every- to teach such courses, Stringham is more than 80 job applicants for each proposing a doctoral program at Fay- to UNC schools, is the chairman of where it’s been tried. available position. a committee convened by the BOG Of course, this new openness etteville State. Stringham is a profes- Based on these documents, one sor in the university’s business school, to revise the long-range blueprint might not translate into improved participant urged Stringham to move which would house the program. for the university system, the policies immediately. Some im- forward with the program, saying, “If To get the ball rolling, Stringham UNC Strategic Directions Working portant things remain “business you don’t do it, someone else will.” Us- held a two-day seminar this month Group. (It also convened the UNC as usual.” Despite the strong case ing business-savvy lingo, another said, at Fayetteville State on how to create Advisory Committee on Strategic made for having no quota, or at “If you’re not growing, you’re going.” an “ideal” Ph.D. program in entre- Directions, which includes people least a low quota that bears some The odds of establishing a suc- preneurship. Seventeen people from from outside the system.) connection to the actual labor cessful program in the UNC system around the country, many with long At an Oct. 24 meeting of the market, it was made clear at the careers in academia and business, at- are uncertain. On the one hand, ad- advisory committee, Eshelman Nov. 7 BOG meeting that the board tended. Among the participants were ministrators worry that a new doctoral raised an alarming statistic from likely would adopt an aggressive Dwight Lee, economist at Southern program in entrepreneurship would the best-selling book Academically goal of ensuring that 31 percent to Methodist University known for his overlap too much with existing busi- Adrift. The authors stated that, us- 32 percent of state residents have essays defending markets; Theodore ness programs, or that it wouldn’t at- ing the Collegiate Learning Assess- four-year degrees. The logical Malloch of Yale University, co-author tract enough students. ment test, “we observe no statisti- “disconnect” between the argu- of Renewing American Culture: The Pur- On the other, the dean of the Fay- cally significant gains [after two ment against such a quota and the suit of Happiness (the basis of a PBS etteville State business school, Assad years] in critical thinking, complex board’s intentions was jarring; that documentary); and Arthur Langer, Tavakoli, believes substantial sources reasoning, and writing skills for at it went unnoticed by board mem- academic director of an executive mas- of income, ranging from gifts to for- least 45 percent of the students in bers must have been deliberate. ter’s program at Columbia University; eign-student tuition, could be tapped our study.” Still, after four decades of to mention a few. to support this program. Successful While the Academically Adrift one-sided governance, BOG mem- They grappled with such ques- entrepreneurs often have given money study surveyed the nation, it is bers are showing a welcome ten- tions as whether the entrepreneurial to entrepreneurship programs, and fair to assume that a similar lack of dency to reassess old assumptions, mind-set can be taught at all (or is it this one would emphasize the environ- progress occurs at UNC schools. fix current problems, and avoid something you are born with?) and the ment in which dynamic competition Another example of the future errors, rather than blindly extent to which a Ph.D. program in en- can operate. changing relationship between the pushing for growth. They should trepreneurship should include larger Whatever its chances of success, BOG and the general administra- be applauded. CJ issues, such as the morality of capital- the process of developing a Ph.D. pro- tion revolves around UNC Presi- ism and the kind of environment that gram at Fayetteville State has begun. CJ dent Tom Ross’s highest priority fosters entrepreneurship. for the new strategic plan: set- Jay Schalin is director of state The discussions kicked off with a Jane S. Shaw is president of the John ting an actual numerical goal for policy analysis for the John W. Pope series of readings ranging from popu- W. Pope Center for Higher Education Pol- increasing graduates from UNC Center for Higher Education Policy. lar media articles to in-depth academic icy. PAGE 18 DECEMBER 2012 | CAROLINA JOURNAL Higher Education Campus Briefs University Classroom Space Vastly Underutilized he Christmas spirit is alive on North Carolina campuses. By Duke Cheston departments more to use classrooms at At UNC-Chapel Hill, Contributor peak use hours, colleges can discour- TPlayMakers performed “It’s a RALEIGH age bottlenecking and produce a more Wonderful Life” at the Center for f you have ever been on a college even distribution of classes throughout Dramatic Arts. Faculty and staff campus for an entire school day, the day. participated in the yearly Jingle you may have noticed something Space charge programs can be Bell Jog to provide canned goods odd:I The school never seems full. found on campuses in Australia, New for needy families. And the Jazz There are empty classrooms, even at Zealand, and England, but the space Repertory Orchestra performed the busiest times. charge idea has been slow to catch on “Jazz for the Holidays.” It’s not just your imagination. in the United States. At N.C. State University, Colleges really do leave many class- At the few American universities university extension offices think rooms unused throughout the day. where space charge programs have about Christmas year-round. Pro- During an average hour of the school been implemented, including Johns viding research on the growing, day at UNC-Chapel Hill, for example, Hopkins University, the University of shaping, and selling of Christmas less than two-fifths of the school’s Michigan, and Stanford University, the trees is an important part of N.C. classrooms — only 37 percent in fall idea has had limited success. At Stan- State’s agricultural outreach across 2011, the latest figures available — ford, space utilization improved 4.5 the state. One extension office are being used. Even at times of peak percent overall, and one department even offered “A Crafty Christmas” classroom use, more than a quarter of improved utilization by 15 percent workshop — where participants usable classrooms sit empty. (according to a May 2011 report by learned how to decorate the trees UNC-Chapel Hill is hardly alone. Some observers have suggest- University of California-Los Angeles and create other home decorations. According to Tom Shaver, CEO of Ad ed, based on the pattern of classroom administrators exploring space-saving Biologists at East Carolina Univer- Astra Information Systems, a higher use throughout the day, that colleges techniques). sity, meanwhile, are trying to create education consulting group that spe- simply give in to the desires of stu- Another suggestion for improved the “perfect” Christmas tree. cializes in facilities management, the dents and professors to sleep late and space use on campus is changing the traditional two-semester-per-year sys- “The Nutcracker” was per- industry average for the percentage of go home early. At Appalachian State formed at UNC-Chapel Hill, UNC tem. By abandoning the old agrarian- classrooms occupied throughout the University, for example, 80 percent of School of the Arts, and Western era schedule with several months off in school week (Monday through Friday, classrooms were used during the 11 Carolina. the summer, colleges could make bet- 8 a.m. to 10 p.m.) is 49 percent. a.m. hour, but only 31 percent were in UNC-Wilmington hosted two ter use of their buildings. In an article That puts UNC-Chapel Hill’s use at 8 a.m., and the evening hours Christmas concerts: a performance for the Pope Center earlier this year, classroom use efficiency below aver- had much lower usage rates. of Victorian Christmas carols and a Jane S. Shaw praised Brigham Young age, but not by much. There may be some truth to that, Tuba Christmas concert. University-Idaho for making such a The 17 schools in the University but other factors, such as limited avail- UNC-Charlotte screened “A change, but noted that BYU-Idaho was ability of large classrooms or techno- Very Harold and Kumar Christ- of North Carolina system had an aver- one of the few schools doing so. mas” at the Student Union. And age classroom occupancy of 44 percent logically sophisticated classrooms, also Making better use of space isn’t the University Chorale and Cham- in 2009, according to a 2010 study by make efficient space use difficult. very popular. It might force students ber Orchestra performed J.S. Bach’s the system. According to a different A number of schools have tried or faculty to wake up early or stay late “Magnificat” — the lyrics of which study by the UNC administration, its using market forces to improve space on campus and it might even force stu- are taken from the Gospel of Luke. Facilities Inventory and Utilization utilization through what’s called a dents to give up their summer vaca- Fayetteville State University Study 2011, North Carolina’s com- “space charge” program. Basically, in- tions. But if college costs keep rising, hosts a website providing links to munity colleges do even worse: the stead of paying for facility construction it may become necessary. CJ “Christmas-themed lesson plans average classroom was used only 18.4 and maintenance from a central fund, and activities designed to keep hours per week, or 26 percent of the each academic department receives Duke Cheston is a writer for the students focused, entertained, and standard school week. (Four private an allocation of money to pay for the John W. Pope Center for Higher Education yes, learning!” colleges in the state — Campbell, Mars classroom space it uses. By charging Policy. UNC-Pembroke hosted an Hill, Barton, and Pfeiffer —also were “Alumni Holiday Drop-In,” a mu- part of the study, and they averaged 23 sic extravaganza, a holiday social, percent classroom usage in 2011). and holiday concerts featuring sax- This suggests that costs are high- ophone and tuba music. er than necessary. The average Ameri- UNC-Greensboro, UNC- can university spends $2,073 per stu- Asheville, and Appalachian State dent per year on building maintenance University hosted holiday choral costs, according to the American Phys- concerts. ical Plant Association. The savings that Elizabeth City State hosted could be realized from more efficient Christmas concerts by the ECSU classroom use are substantial. Western Concert Choir, the orchestra, and Kentucky University, for instance, was the concert band. Western Carolina able to save more than $345,000 during University hosted choral, band, the summer months alone by making and orchestral Christmas perfor- some improvements in classroom use, mances throughout December. including temporarily closing energy- N.C. Central University host- inefficient buildings. ed its annual Christmas concert, In some ways, universities’ ap- featuring the University Choir, parent poor use of space is the oppo- the Operatorio Ensemble, music site of what one would expect. Colleg- department faculty, and NCCU es have the ability to schedule classes students. CJ throughout the day and evening, and prestigious universities like UNC- Jenna Ashley Robinson is direc- Chapel Hill have no difficulty finding tor of outreach for the John W. Pope enough students willing to fill classes. Center for Higher Education Policy. Why then do colleges leave so many rooms empty? DECEMBER 2012 | CAROLINA JOURNAL PAGE 19 Higher Education Opinion A Solid Defense for Free Speech Should Be Required on Campus n September 2011, Roger Clegg, speech issues. “On such thinking, that easily offended people would president of the Center for Equal college campuses but students now simply stay away. Opportunity, was in Madison, today,” Lukianoff Issues find themselves Not so. In fact, the university’s Wis.,I to reveal the findings of his writes, “students facing a minefield administration actually organized a organization’s study of racial prefer- are punished for in when they speak protest against it, holding a training ences in admissions at the University everything from Higher Education or write. They session on disrupting the produc- of Wisconsin. He was speaking at a mild satire, to encounter speech tion and even buying tickets for the hotel close to campus when a mob of writing politically codes that vaguely students who wanted to be offended. students burst into the room, shouting incorrect short sto- admonish them When the time came, the irate stu- him down and harassing him as he ries, to having the not to speak in a dents managed to stop the play and left the building. ‘wrong’ opinion on way that might be threatened the performers, including The mob had virtually every hot button issue, and, “hurtful” to others and “harassment” Lee. been organized increasingly, simply for criticizing the policies that easily are turned from Subsequently, the president of by two campus college administration. … ” shields against objectively harmful Washington State, Lane Rawlins, said administrators Lukianoff describes himself as a conduct into swords that can be used that the students in the disruptive who wanted to let liberal Democrat, but he accepts the to smite them for having spoken in a mob had “exercised their free speech Clegg know how Jeffersonian idea that we must defend way someone feels is offensive. rights in a responsible manner by let- much the univer- free speech even if we don’t agree Unlearning Liberty is chock full ting the writer know exactly how they sity disapproved with its content. Most, but not all, of of cases demonstrating how hostile felt.” of his investiga- the incidents Lukianoff writes about colleges can be toward dissent from When the president of a major tion into and involve attacks on the freedom of orthodoxy. Some of them are almost university congratulates students for criticism of UW’s GEORGE conservatives and unbelievable. letting their hurt feelings lead to mob “diversity” policy. LEEF Christians. He de- Consider the action against a comedy, we are in Instead of con- fends their rights case of Chris Lee, serious trouble. fronting ideas with not because he Washington State’s a black student at other ideas, those agrees with them, Washington State Lukianoff is right on target when administrators and their compliant but because he president praised University who he says that colleges should be part of students chose physical retaliation. understands that in 2005 decided to the solution to that problem by teach- That is shocking to many Americans, free speech will students for put on a musical ing students good intellectual habits. who still believe that colleges and survive only if it that, in the tradi- FIRE regularly battles the symptoms universities should be dedicated to gets an unwaver- mob action that tion of “South of the disease highlighted here, but the rational pursuit of truth and never ing, principled Park,” would a cure would require higher educa- should sanction atavistic, anti-intellec- defense. disrupted an event offend many tion leaders who are committed to tual ways of responding to those with Throuhgout people in the com- free speech and will take swift action whom you disagree. much of our K-12 munity. He came against all those “power trippers” on The mob action at UW is just one system, Lukianoff shows, students are up with a production he called “The campus who want to silence ideas of many appalling cases discussed in taught that it’s more important not to Passion of the Musical,” a parody of they don’t like. When governing Greg Lukianoff’s new book Unlearning offend anyone than it is to argue your Mel Gibson’s movie “The Passion of boards are looking for leaders, an un- Liberty: Campus Censorship and the End opinions. Furthermore, students no the Christ.” Lee thought he’d produce qualified commitment to free speech of American Debate. Lukianoff is the longer learn much about the protec- some laughs by so obviously going should be a litmus test. CJ president of the Foundation for Indi- tion our institutions historically have overboard in political incorrectness. vidual Rights in Education, and in his given to free speech, and many enter Chris got official permission to years of working for that organization college without any idea of the impor- put on his musical and clearly warned George Leef is director of research he has seen a huge number of campus tant role free speech plays in progress. that it was “offensive or inflammatory for the John W. Pope Center for Higher cases revolving around freedom-of- College used to counteract to all audiences.” So you might think Education Policy. PAGE 20 DECEMBER 2012 | CAROLINA JOURNAL Books & the Arts

From the Liberty Library Book review

• Why is the boom-and- bust cycle so persistent? Why No Easy Day: Different Perspective From WH Ball-Spiking did economists fail to predict the economic meltdown that began • Mark Owen with Kevin Maurer, No Easy Day: The Auto- professional coolness; it’s like a postmodern version of the in 2007 — or to pull us out of the biography of a Navy SEAL, Dutton, 2012, 316 pages, $26.95. sardonic wiseacres in World War II morale films. crisis more quickly? And how On the other hand, that’s probably reality. The SEAL can we prevent future calamities? By Hal Young teams train together at an unbelievable level of intensity to Contributor Mainstream economics has no become impervious to normal fatigue, but also to grow as adequate answers for these press- RALEIGH predictable and reliable to one another as long-term spous- ing questions. To understand how inston Churchill observed that “We sleep soundly es. It’s not an environment which tolerates much individ- we got here, and how we can en- in our beds because rough men stand ready in the ualism or eccentricity. I’m reminded, too, that stereotypes sure prosperity, we must turn to night to visit violence on those who would do us take root in many cases because they do, after all, have some an alternative to the dominant Wharm.” Former Navy SEAL Mark Owen doesn’t quote this, basis in fact. approach: the Austrian school of but illustrates it clearly in No Easy Day, his controversial Owen was part of the team that engaged the terror- economics. In It Didn’t Have To Be first-person account of the raid that killed Osama bin Laden. ist leader on the upper floor of his Abbattobad compound. This Way, Harry Veryser presents The roughness, readiness, and nocturnal violence are hall- Owen says that from his position following the point man the Austrian school’s perspective, marks of the Naval Special Warfare Development Group, he saw Osama in a doorway only briefly before the fatal revealing why the boom-and-bust DEVGRU, still known by its former shots struck him in the head, though cycle is unnatural and unneces- name as SEAL Team Six. he did fire some of the rounds that sary. Learn more at www.isi.org. Owen is the pseudonym of a hit bin Laden in the chest. Owen de- veteran SEAL, now a civilian, who scribes the aftermath in calm, grisly spent his entire Navy career in spe- detail; he was the SEAL who cleaned • cial operations and was one of 28 the blood from Osama’s face before Who are the recruits for the next team members assigned to the raid. taking the famous (and still-classi- wave of Islamic terrorism? They He shows great pride of his role in fied) pictures of the body. live next door. A radicalized DEVGRU and embraces the need for Owen was disgusted to find army major guns down 45, kill- secrecy about even routine matters that, with automatic weapons liter- ing 12 soldiers and one civilian; connected with its sensitive opera- ally inches from the doorway where a legal immigrant tries to blow tional world. he was killed, and with all the warn- up Times Square while another “However,” he writes, “it is ing of a helicopter crash and gun- fanatic hopes to kill hundreds time to set the record straight about fire in the courtyard, Osama didn’t at a Christmas tree–lighting cer- one of the most important missions bother to put a bullet in the maga- emony ... and a radical Muslim in U.S. military history. Lost in the zines. born in New Mexico has a legion media coverage of the bin Laden “He hadn’t even prepared of fanatics in his web. In The Next raid is why and how the mission a defense. He had no intention of Wave, Catherine Herridge reveals was successful. This book will finally fighting,” he writes. “In all of my the shocking story of how that give credit to those who earned it.” deployments, we routinely saw this blood-crazed American, Anwar Obviously the critical market- phenomenon. The higher up the al-Awlaki — now hiding in Ye- ing point for the book is the inside food chain the targeted individual men — was treated to Pentagon scoop on the end of “UBL,” as the was, the bigger a [profanity] he was. pomp as a “moderate Muslim,” SEALs tagged him. Apart from the The leaders were less willing to and how our Justice Department foreshadowing prologue, the hunt fight. It was always the young and hid his movements from the 9/11 doesn’t draw near its quarry until impressionable who strap on the ex- Commission ... even though al- 154 pages into the book. Owen nar- plosives and blow themselves up.” Awlaki aided the 9/11 hijackers. rates his decision to join the special “There is no honor in send- More information at www.ran- forces and describes phases of his ing people to die for something you domhouse.com. training (including the secret North Carolina base since won’t even fight for yourself,” he concludes. identified as Harvey Point in Perquimans County), along Osama was the highest-value target in the war on ter- with numerous deployments to Iraq and Afghanistan. ror, and it was a matter of professional pride to the SEALs • America’s founding fa- For all their legendary aquatic combat skills, this group to be in on the kill or the capture. Even so, they were un- thers saw freedom as a part of our nature to be protected — not to be of SEALs spent most of their time in air and land opera- prepared for the avalanche of attention rolling their way as usurped by the federal govern- tions, fast-roping down from helicopters to rooftops, where soon as the raid was complete. For most of their missions, ment. But a little over a hundred they formed the hammer to complement Army and Marine what they did in the dark stayed in the dark. This time, the years after America’s founding, units’ anvil, capturing Islamist fighters in the middle floors spotlights were searching, and having their names associ- those God-given rights were laid of urban buildings. ated with the operation would be a death warrant for them- siege by two presidents caring The initial training to become a SEAL and then to join selves and anyone close to them. more about the advancement the elite DEVGRU is incredibly punishing, and the gruel- “We watched it with amusement at first, but that of progressive, redistribution- ing lifestyle continues long after achieving the qualification. quickly turned to dread as more and more information ist ideology than the principles Owen’s 10-year career was an endless cycle of training and leaked,” Owen writes. It took less than four hours for the on which America was founded. deployment. Family separation with no notice, exhaustion media to report that SEALs had carried out the mission, and Theodore and Woodrow is Judge as a normal state, and a vampire-like existence of night op- soon after, to point to DEVGRU in Virginia Beach. Andrew Napolitano’s shocking erations and tranquilizer-assisted sleep made normal rela- The book is not political, but the SEALs were realistic historical account of how a Re- tionships difficult or impossible to maintain. Loyalty and about the likely consequences of the raid. publican and a Democratic presi- friendship center on the team, and commitment is focused “None of us were huge fans of Obama,” he says. “‘We dent oversaw the greatest shift in on the mission. just got this guy re-elected,’ [said one of the team members, power in American history, from There is an inescapable made-for-TV feel to the narra- during the news conference]. ‘Well, would you rather not a land built on the belief that au- tive. Owen is involved personally in key incidents; the all- have done this?’ I said. We all knew the deal.” thority should be left to individu- male camaraderie is interrupted by the arrival of the CIA “[The] more I saw coverage of the raid, the more I als and the states to a bloated, analyst, an elegant, high-heeled civilian named Jenn, who wanted to set the record straight,” Owen writes in the final far-reaching federal bureaucracy, tracked Osama for five years and deploys with the SEALs to chapter. “If my commander in chief is willing to talk, then continuing to grow and consume their forward base near the Pakistani border; there is a uni- I feel comfortable doing the same.” Those who were non- power each day. For more infor- formity of language and something like an ensemble cast, plussed by the president’s campaign swagger, congratulat- mation, visit www.thomasnel- with the unit joker, the Ninja-like sharpshooter, and other ing himself for giving the go-ahead on a mission 10 years son.com. CJ types represented. Everyone is competent and studied in in development, will welcome Owen’s perspective. CJ DECEMBER 2012 | CAROLINA JOURNAL PAGE 21 Books & the Arts Frederick Douglass Rightfully Re-Emerging As An American Icon uring the past 30 to 40 years, icon. He said much on various sub- • “I am certain that there is noth- and they learned to ask it early of the historians have revived for jects, including the Declaration of In- ing good, great, or desirable which abolitionists: ‘What shall we do with Americans the legacy of Fred- dependence, the Constitution, temper- man can possess in this world, that the Negro?’ I have but one answer Derick Douglass (1818–95). Before then, ance, government, race relations, does not come by some kind of from the beginning. Do nothing with his accomplishments largely had been and freedom. Recently, I’ve labor, physical or mental, us! Your doing with us has already swept up, dropped into the dustbin been reading In The Words moral or spiritual. A man played the mischief with us. Do noth- of history, and of Frederick Douglass: may, at times, get some- ing with us! ... And if the Negro can- left out of view. Quotations From thing for nothing, but not stand on his own legs, let him fall (It reminds me of Liberty’s Champion it will, in his hands, also. All I ask is, give him a chance to the saying: “Out (2012) and decided amount to nothing. stand on his own legs! Let him alone! of sight, out of to select some What is true in the If you see him on his way to school, mind.”) Douglass, quotes for Carolina world of matter is let him alone — don’t disturb him! If however, was a Journal readers. equally true in the you see him going to the dinner table genuine “big deal” • “One world of mind. at a hotel, let him alone! If you see him in his day. generation can- Without culture going to the ballot box, let him alone! The Mary- not safely rest on there can be no — don’t disturb him! If you see him land native was TROY the achievements growth; without going into a workshop, just let him an escaped slave of another, and exertion, no ac- alone — your interference is doing who penned Nar- KICKLER ought not so to quisition; without him positive injury.” rative of the Life of rest.” friction, no polish; • “My politics in regard to the Frederick Douglass (1845) and became • “The life of without labor, no Negro is simply this: Give him fair a leading abolitionist and reformer. a nation is secure knowledge; without play and let him alone, but be sure Four other personal accomplishments only while the nation action, no progress; you give him fair play.” include editing and owning newspa- is honest, truthful, and and without conflict, no • “If the American government pers; serving as a U.S. ambassador virtuous; for upon these victory. The man who lies has been mean, sordid, mischievous, — the first African-American to do so; conditions depends the life of down a fool at night, hop- devilish, it is no proof whatever that working as president of The Freed- its life.” ing that he will waken wise in the the constitution of government has men’s Bank; and emerging as a well- • “Any man can be brave when morning, will rise up in the morning been the same.” CJ known 19th-century orator, delivering there is no danger.” as he laid down in the evening.” speeches in the United States and • “A man is never lost while he • “The American people have al- Europe. still earnestly thinks himself worth ways been anxious to know what they Dr. Troy Kickler is director of the In recent days, Douglass’ legacy saving; and as with a man, so with a shall do with us [African-Americans]. North Carolina History Project (northcar- is emerging as one of an American nation.” ... Everybody has asked the question, olinahistory.org).

More research at your fingertips at the redesigned JohnLocke Foundation home page You can now search for research by John Locke Foundation policy analysts much easier than before. Our new web page design allows you to search more efficiently by topic, author, issue, and keyword. Pick an issue and give it a try. Or choose one of our policy analysts and browse through all of their research. Ei- ther way, we think you’ll find the infor- mation presented helpful and enlight- ening. http://www.johnlocke.org PAGE 22 DECEMBER 2012 | CAROLINA JOURNAL Books & the Arts Book reviews Who’s The Fairest Provides Look at What’s Coming for U.S. Economy • Stephen Moore, Who’s The Fairest Of Moore uses a variety of sources to sup- black females were 78.6 percent over and a lot of middle class workers were Them All? The Truth About Opportunity, port his arguments, including the U.S. this period. the big losers,” he states. This is one Taxes, and Wealth in America, Encounter government’s own revenue records. Another surprising fact is that in- of the classic examples Moore uses to Books, 2012, 119 pages, $24.99. Americans often hear that low- come categories are fluid. Moore notes show how attempting to raise revenue ering tax rates increases revenue, but that people move in and out of all of by raising taxes always backfires. By Melissa Mitchell Moore reaches back 50 years to the the categories. The poor and middle- In the last chapter of the book, Contributor Kennedy era when tax rates were low- income earners become richer, but the Moore presents a compelling and con- RALEIGH ered, offering evidence largest movement occurs vincing argument for a flat tax in the uring the recent election, one that every time rates are within the top 2 percent U.S. Hong Kong — one of the world’s of President Obama’s main reduced the rich actually of earners, who often wealthiest economies — has had a 15 themes was that we have to tax pay more, revenues in- become poorer. Moore percent flat tax in place for 50 years. Dthe rich more. He repeatedly noted that crease, and the economy shows how this fluid- “When Hong Kong was given back to the rich need to pay their fair share and expands. ity will impede Obama’s China, there was worry that the flat tax can afford to pay a little more. Three Moore shows that plan to increase revenue would be swallowed up by the Chi- days after the election, Obama held a the rich not only pay their and lower the deficit by nese tax system. Just the opposite has news conference reiterating his belief fair share, but also in taxing the rich more. occurred,” Moore says. He also notes that raising taxes on the rich will help fact pay a disproportion- Moore exposes the that the mainland has moved toward reduce the deficit — even though most ate majority of the taxes myth that payroll taxes the Hong Kong system. economists contend that taxing the collected in the United are regressive, thanks to Who’s The Fairest Of Them All? is rich will slow the economy and possi- States. the Earned Income Tax a small book that is packed with facts bly put the United States into a double- Moore debunks Credit, which refunds and figures. Unfortunately, the Octo- dip recession. Obama’s claims that any taxes paid by lower- ber 2012 publication date gave little In his book Who’s the Fairest Of women, minorities, and income workers. time for voters to digest the informa- Them All?, Stephen Moore, senior eco- the poor have not advanced in the last Another example Moore cites is tion within the book, nor has the book nomics writer for The Wall Street Jour- 30 years and that the 1970s were better the 1993 luxury tax that President Clin- received the attention it deserves. Al- nal, provides an in-depth look at the for the poor. Readers may be surprised ton and the Democrats imposed on though the presidential election is U.S. tax structure, who really pays to learn that from 1980-2007, income yacht builders to get more taxes from over, the book is still worth reading be- the most taxes, and the economic im- gains by white males amounted to the rich. “The tax did not raise money, cause it provides a look at what is com- pact when taxes are raised or lowered. only 10.1 percent, while wage gains for it put yacht builders out of business, ing for the U.S. economy. CJ Allison Shows That Damage To Financial System Worse Than We Know • Allison, John, The Financial Crisis and example, that more Americans need to government-sponsored enterprises SEC gave three rating agencies mo- the Free Market Cure: Why Pure Capital- go to college and own houses and elec- Fannie Mae and Freddie Mac. Together nopoly power: “only debt instruments ism Is the World Economy’s Only Hope, tric cars — as opposed to the myriad with the Federal Housing Administra- rated by S&P, Moody’s, or Fitch qual- McGraw-Hill, 2012, 289 pages, $28. other things they could do with their tion, the Federal Reserve, the Federal ify for positive consideration under time and money. Deposit Insurance Corporation, and … rules designed to protect pension By John Staddon • The government-mandated, the Securities and Exchange Commis- accounts.” Second, “Under govern- Contributor politically driven bank accounting sion, they were responsible, argues ment-mandated ‘issuer pays’ rules, RALEIGH system has become so complex that it Allison, for the huge misallocation of the rating firms were motivated to inston-Salem-based BB&T is conceals more than it reveals. “Even resources that led to the financial crisis lower their standards, fearing that is- one of the most successful with 40 years’ experience in banking, of 2007. suers who were displeased with their banks in the nation. Its for- I cannot fully under- Allison’s per- ratings would yank their business and Wmer chairman and CEO, John Allison, stand the financial sonal experience move it to a competitor rating firm.” In took BB&T from $4.5 billion to $152 bil- statements of Bank of tells him that the other words, the government induced lion in assets during his 20-year tenure. America,” writes Al- government-spon- a conflict of interest. Even as mort- Now head of the libertarian Cato Insti- lison. He doesn’t think sored enterprises gage lenders were selling dodgier and tute in Washington, D.C., insider Alli- anyone else can either. inhibit private bank- dodgier “product” to less- and less- son has put together what he learned • Regulation is ing because they can creditworthy customers, product rat- about government and financial regu- necessary, but exist- offer cheaper loans, ings remained high. lation in a fascinating new book, The ing regulations inhibit as they benefit from Allison’s insider experience has Financial Crisis and the Free Market Cure. creativity, provide a fa- an implicit govern- provided him with many crony-cap- His conclusions are these: çade of responsibility, ment guarantee. italist horror stories, but the most Or- • Owning a home is consump- and very often encour- That’s not so bad, wellian is this one. BB&T was forced to tion, not investment. This should be age, rather than dis- you might think. Af- decline a loan to a trusted customer be- obvious to anyone, even politicians. courage, bad behavior ter all, they pass sav- cause of new FDIC rules. But the bank Yet rather than educate the public, they by financial players. ings on to the con- could not tell the customer the reason deliberately mislead. • R e g u l a t o r s sumer, right? Well, he was refused: “The borrower is angry • Government policy is the pri- have power without no. The estimates at BB&T because we cannot tell him mary cause of the financial crisis. Acts responsibility. When I have seen show that the regulators caused this to hap- like Sarbanes-Oxley, the Patriot Act times are good, regu- that they pass on pen. The FDIC prohibits banks from and Dodd-Frank have, or will, make lators have a “light no more than two- using changes in regulatory rules as a things worse, not better. touch.” But when a thirds of the advan- reason to change the terms of a loan. • Government actions, which crash happens, they discover rules tage they enjoy as government-backed …” Why should a government agency often have good results in the short they neglected to enforce during hap- entities. be allowed to protect itself from scru- term, almost always have bad results pier days. The rating agencies were one of tiny in this way? in the long term. Allison’s banking background the main causes of the subprime crisis, Read this book. The damage that • Government all too often gives him particular insight into those and their role largely was scripted by has been done to our financial system thinks it “knows best.” It knows, for shadowy behemoths of finance, the government, Allison argues. First, the is worse than you know. CJ DECEMBER 2012 | CAROLINA JOURNAL PAGE 23 Books & the Arts Book review Schwarzenegger’s Look Back Conveniently Omits Important Facts • Arnold Schwarzenegger, with Peter bitt, denied Arnold permission to ride posed with a broom, and promised to Robert Klein II, a prominent Democrat. Petre, Total Recall: My Unbelievably True a horse through the reflecting pool clean house. He wanted to “blow up The measure promised to take $3 bil- Life Story, Simon and Schuster, 2012, at the Washington Monument, even the boxes,” the maze of boards and lion in bond money and conduct em- $35. though it had been done before. And commissions, soft landing spots for bryonic stem cell research that would Clinton’s Health and Human Services washed-up politicians. But the “gov- turn California into a vast Lourdes, By Lloyd Billingsley boss, Donna Shalala, asked Arnold to ernator” couldn’t take the bad reviews overflowing with miraculous cures for Contributor resign as fitness czar. from union bosses and the liberal press. deadly diseases. RALEIGH But there was more to his Holly- He retreated from reform and became Total Recall did not mention that n his new memoir Total Recall Ar- wood career than partisan wrangling. a strategic ally of left-wing Democrats, the California Institute for Regenera- nold Schwarzenegger bulked up Arnold trained his true handlers, just tive Medicine created by Prop 71 has on the bodybuilding and movie with Harold Sakata, like the posing and failed to produce a single cure or ther- Isections. That led some reviewers to Oddjob in “Goldfin- acting coaches. apy. And not a word from a self-de- skip those parts and miss some good ger.” Eric Morris, Jack He worked with scribed fiscal conservative that CIRM stuff, besides the well-known story of Nicholson’s acting them on the Califor- is off-limits to state oversight and rife the Austrian immigrant who becomes coach, told Arnold nia Global Warming with conflicts of interest. governor of California. don’t act, only be real. Solutions Act, which State Assembly Speaker Fabian He was “born into a year of fam- On the Conan set, the former governor Nunez, said Arnold, was “one of my ine,” and that is no exaggeration, as In Arnold heard Wilt called “our boldest closest allies among the Democrats.” the Ruins of the Reich by Douglas Botting Chamberlain and policy leap,” promot- In 2008, Nunez’s son Esteban was in- confirms. Arnold is working class all Grace Jones argue fu- ing it as good for busi- volved in the fatal stabbing of college the way. He shoveled sawdust, drove riously about who is ness. It’s not and has student Luis Santos and sentenced tanks, and sold ice cream. In America really black. And Ar- helped perpetuate the to 16 years in prison. On Jan. 2, 2011, he laid bricks and taught weight train- nold had a fling with recession in the Gold- during his final hours as governor, ing in prisons. He also earned a degree Brigitte Nielsen while en State, which he left Schwarzenegger commuted Esteban and learned how to flip houses before making “Red Sonja.” a mess. But check out Nunez’s sentence to seven years, a flipping was cool. His true essence, His future wife, Arnold’s review of his “distasteful and repugnant” act, ac- however, emerged in bodybuilding. Maria Shriver, knew own governorship. cording to a prominent judge. Total This sport is a matter of posing about Arnold from “We made a hell Recall omits this episode entirely, and and one photo shows a ballet instruc- the muscle maga- of a lot of progress, therein lies a lesson. tor giving Arnold instructions. Movie zines Secret Service and we made a lot Arnold Schwarzenegger is in acting is similar. You stand where they agents used to read. It took a while be- of history,” he wrote, “workers comp love with his own “narrative,” the sto- tell you to stand and say what they tell fore they tied the knot, and once into reforms, parole reforms, pension re- ry of immigrant who, against all odds, you to say. Arnold got the coaching he politics he got little help from the Ken- forms, education reforms, welfare re- becomes a winner in business, movies, needed, and that served him well in nedy clan. In those circles, it’s party forms, and budget reforms ... we made and politics. When anything fails to fit the movie business. Movies, in turn, over family all the way. And when he our state an international leader in cli- the narrative, he applies whitewash proved instructive in other ways, in- became governor of California, Ar- mate change and renewable energy; a or simply leaves it out, the pattern of cluding politics. nold’s Hollywood experience did not national leader in health care reform many in politics and show business. Arnold learned that the Hol- exactly serve him well. and the fight against obesity. ... And In those fields poseurs rule, and lywood ethos classifies “action” pic- “I wasn’t familiar with the cast we accomplished all this while deal- that calls for vigilance. Poseurs should tures starring himself as Republican of characters in Sacramento,” he ad- ing with the greatest economic disaster be judged not by their own reviews and “meaningful” pictures starring mitted. That is, he did not understand since the Great Depression.” but by their actions. As with Bill Clin- Tom Hanks as Democrat. That’s why, that government employee unions run Arnold’s recall was far from to- ton’s final-day pardons, Schwarzeneg- while filming “True Lies,” President state government. tal. Arnold backed Proposition 71, the ger’s unbelievable truth had a way of Clinton’s Interior Secretary, Bruce Bab- He called for a “year of reform,” 2004 initiative of real estate tycoon emerging at the exit door. CJ Books authored By JLF staFFers Free Choice for Workers: Selling the Dream A History of the Right to Work Movement Why Advertising is Good Business

By John Hood President of the John Locke Foundation By George C. Leef Vice President for Research at the John William Pope Center for Higher “[Selling the Dream] provides a Education Policy fascinating look into the world of advertising and beyond ... “He writes like a buccaneer... Highly recommended.” recording episodes of bravery, Choice treachery, commitment and April 2006 vacillation.” Robert Huberty www.praeger.com (Call Jameson Books, 1-800-426-1357, to order) Capital Research Center PAGE 24 DECEMBER 2012 | CAROLINA JOURNAL Opinion

COMMENTARY Ideas Matter, and So Do Candidates ou might conclude that ment of some federal regulations North Carolina voters are within North Carolina’s borders, an odd lot. Republican Pat and expressing support for a state- YMcCrory won election for governor based currency. The GOP’s nominee in a 12-point blowout. Yet every for state treasurer, Steve Royal, Council of State incumbent seek- spoke of a “regional” currency ing re-election won, and every backed by North Carolina and contested race involving an incum- neighboring states. bent — the five won by Democrats These ideas were not high pri- and the two by Republicans — was orities for voters looking for effec- decided by about the same margin, tive representation in Raleigh from roughly 53.5 percent to 46.5 per- Bradley or competent investment cent. And Republican Dan Forest management from Royal. Bradley barely squeaked past ran for a Senate seat and Linda Coleman to win finished a distant third EDITORIAL the contest for lieutenant in a three-way primary. governor. Royal lost to incumbent Why was McCrory Treasurer Janet Cowell. Losing Elections so much more success- At the federal level, ful than anyone else on Republicans in recent the statewide ballot? To years have lost several And Dignity be sure, McCrory never winnable Senate races really stopped running for when they fielded flawed emocrats and liberals in North ing by the N.C. Judicial Coalition, governor after his narrow RICK candidates. Think Chris- Carolina have suffered some an independent group led by former 2008 loss to Bev Perdue. HENDERSON tine O’Donnell, Sharron major setbacks over the past state GOP Chairman Tom Fetzer and And Perdue did her fel- Angle, and Linda McMa- Dtwo election cycles, losing control of underwritten largely by Republican low Democrats no favor hon … twice. the General Assembly in 2010 and the donors. The plaintiffs’ motion states by deciding not to seek a In Missouri, GOP Executive Mansion in November. that polls in June and August showed second term in late January, much U.S. Rep. Todd Akin looked like And they’ve shown few signs of Ervin leading Newby — though at too late for viable successors to raise an easy winner until he made an accepting defeat with dignity. Consid- the time 70 percent and 67 percent of er the lawsuit filed by the state chapter money and introduce themselves incomprehensible remark about voters, respectively, were undecided of the NAACP and other liberal groups fully to voters statewide. pregnancy and rape. Indiana U.S. in the contest. trying to force Supreme Court Justice There’s no guarantee McCrory Senate candidate Richard Mourdock It’s just as plausible that Ervin Paul Newby to recuse himself from led early in the campaign because vot- will be a successful governor. But he made a similar mistake and lost. a likely challenge to the redistricting ers linked him to his legendary grand- was a successful candidate, and po- Republicans should have picked up plan enacted last year by the legisla- father, the late U.S. Sen. Sam Ervin. tential politicians could learn a lot both red-state seats but won neither. ture. Once voters learned that Jimmy Ervin from the race he ran, and contrast Liberals might say these The plaintiffs — including the was not “Senator Sam,” they may it with a handful of unsuccessful unsuccessful candidates shared one left-wing Democracy NC and the have given Newby a look. Or perhaps contests in the Tar Heel State and characteristic: They were backed ostensibly nonpartisan League of once they learned that Newby had around the nation. by the Tea Party and the conserva- Women Voters — argue that deep- served on the Supreme Court for eight The former Charlotte mayor tive grass roots. True enough. But pocketed political donors who sup- years and was backed by conserva- had plenty of campaign funds and so were several rising stars in the ported the re-election of Newby have tives, right-leaning voters warmed to as much time as he wanted to build GOP who’ve won Senate seats over hijacked the state’s judiciary. That’s the incumbent. nonsense, unless you’re shallow an organization during this election the past two cycles, including Rand Eddie Speas, an attorney for the enough to believe that every politician cycle. Those were necessary condi- Paul of Kentucky, Marco Rubio of plaintiffs, concedes there’s no prec- mindlessly parrots marching orders edent allowing the other justices to tions for the victory. Florida, Mike Lee of Utah, Ted Cruz from his supporters. vote Newby off the case, nor any rules McCrory also offered voters of Texas, and Jeff Flake of Arizona. If the plaintiffs prevail, they stating when a justice should decide an appealing résumé combining These candidates were Tea Party would enhance the role of money in to recuse himself. public service and business expe- darlings who also advocated effec- judicial races, though not in the way But consider what would hap- rience, along with an optimistic tively for liberty and opportunity. their lawsuit imagines. The lawsuit pen if the plaintiffs prevailed. Ideo- vision for the state. He was an They were ready for prime time in would allow ideologically motivated logical activists could force any judge donors to remove judges they oppose attractive candidate with ideas that ways their defeated colleagues were they oppose to remove himself from met the times, showing that it takes not. from ruling on high-profile cases. Perversely, the plaintiffs would enable contentious cases — simply by setting more than money or campaign Many conservatives may be up an independent expenditure group staff to win an election. You need a dispirited about the federal election wealthy interests to “buy” the judi- ciary — which is the opposite of the and donating to that judge’s cam- sensible, relevant message and an results. But amid the losses there’s liberal activists’ stated goal. paign. Liberals could silence conserva- effective messenger. a path to victory: You can advance North Carolina’s judicial elec- tive judges, and conservatives could Sometimes, a candidate high- the principles of freedom and self- tions are nonpartisan by definition, do the same to liberal jurists. lights issues that aren’t relevant to government by recruiting the right though candidates make their ideolog- There are plenty of things the office he’s seeking. Outgoing candidates and giving them the ical preferences known. In November, wrong with the way North Carolin- state Rep. Glen Bradley, R-Franklin, proper support. CJ Newby, a conservative and registered ians choose judges — making the tried to bring the Ron Paul agenda Republican, defeated liberal state races nonpartisan tops the list. Letting to the General Assembly, support- Rick Henderson is managing edi- Appeals Court Judge Jimmy Ervin by individuals use their own money to ing bills that would ban the enforce- tor of Carolina Journal. a 52-48 margin. The lawsuit suggests support the candidates they prefer, that Newby would not have won however, is not a flaw of our political without roughly $2 million in spend- system. It’s a strength. CJ DECEMBER 2012 | CAROLINA JOURNAL PAGE 25 Opinion

EDITORIALS COMMENTARY History’s Lesson North Carolina Even the bitterly divided can come to terms

he 2012 election results under- mans fought for control of the new Votes for Change scored a basic political fact: We Cabarrus government. Finally, they or all the time, energy, and just as in 2010, plus a solid turnout live in a closely divided country. worked out a compromise in 1796 money spent on federal for the top of the Democratic ticket TIs there a chance for President and created a new county seat located campaigns over the past two in states such as Wisconsin. Obama and Congress to take a major between their two communities. They Fyears, American voters decided not In the Tar Heel State, the senti- step toward fiscal sanity in 2013? Is named it, appropriately enough, to make any significant changes. ment is rather different. Republi- there is a chance for Gov. Pat Mc- Concord. They re-elected President Obama, cans delivered North Carolina to Crory and a Republican legislature to Several decades later, the resi- albeit with many fewer votes than Romney. They are poised to imple- craft policies that attract support from dents of southeastern Mecklenburg in 2008. They kept Democrats ment conservative reforms on taxes, North Carolina independents and and western Anson demanded their in control of the U.S. Senate and education, and other issues. The moderate Democrats? own county. Some were loyal Demo- Republicans in control of the U.S. GOP may have broken the 50-50 tie The answer to these questions is crats who strongly supported Andrew House. in control of county commissions — yes. Here are a couple of interesting Jackson and his protégés. Others were Essentially, after Republicans took the ma- examples from North Carolina history. strong Whigs who strongly supported watching the fractious jority in Guilford County, When Mecklenburg County was Jackson’s longtime foe, Henry Clay. political debate about the state’s third-most created out of Anson County in 1762, At the 1842 convention to name debt, taxes, health care, populous after Mecklen- there were two population centers, the new county, partisan differences and economic policy over burg (with a Democratic one to the west that included present- flared. Democrats insisted that it be the past two years, voters commission) and Wake day Charlotte and one to the east named Jackson County. Whigs insist- pushed the replay button. (with a Republican one). that included Scotch-Irish settlers on ed that it be named Clay County. After Whether they will like the While most of the Rocky River and German settlers on a lengthy argument, a member named national show better the media attention in the Dutch Buffalo Creek. Aaron Little rose to speak. “Breth- Thomas Polk led the western ren,” he said, “let’s be united and call second time is unclear. Newby-Jimmy Ervin race faction. Martin Phifer led the eastern it Union.” The other commissioners But here in North JOHN focused on the potential faction. Both wanted control of the agreed. Union County was born. Carolina, the electoral HOOD effects on state redistrict- new county. After years of machina- Aaron Little knew that while outcome is completely ing litigation, the policy tions, Polk prevailed and co-founded you never should compromise your different. The state’s implications of the Su- the new county seat, originally called fundamental principles, making deals Republican Party delivered its best preme Court race were far broader Charlotte Town. But after the Revolu- is part of politics. If it’s a good deal, performance in modern history. than that. If Republican lawmakers tionary War, the easterners convinced you get something you want in the For the first time since 1988, voters enact more school-choice options the legislature to give them their own short run while building relationships elected a Republican governor (Pat for parents, further reforms of county. It was named after the speaker and momentum for larger gains in the McCrory) and lieutenant governor the state’s regulatory system, or a of the house, Stephen Cabarrus. long run. New leaders, please take (Dan Forest). McCrory’s share of photo-ID requirement to vote, liber- Next, the Scotch-Irish and Ger- note. CJ the vote fell only slightly below als will litigate these changes. With the record for a GOP gubernatorial justices of conservative leanings still candidate, Jim Martin’s 55.1 percent constituting a majority on the state’s re-election victory in 1988. highest court, the plaintiffs are un- After winning majorities in likely to get the judicial intervention The Need for Reform both houses of the General Assem- they desire. bly in 2010 for the first time since While the nation ratified the Change imperative in taxes and education Reconstruction, the Republicans status quo, North Carolina opted didn’t just retain control this year. for change. I’m not surprised. Our wo of the top issues facing $9,000 per pupil — one of the highest They expanded their numbers, to unemployment rate has been Gov.-elect Pat McCrory and the levels in the world. 33-17 in the state Senate and 77-43 among the highest in the nation for General Assembly in 2013 are Other countries routinely pro- in the state House, thanks to favor- years. A combination of economic taxT reform and education reform. For duce higher academic performance able redistricting, better candidate woes and poor management has the performance of North Carolina’s despite spending hundreds or thou- recruitment and fundraising, and produced short-term budget deficits economy to improve significantly in sands of dollars less per student than the statewide turnout effort for and long-term fiscal liabilities. Our the short run, we need a more com- North Carolina does — and offer par- Mitt Romney and McCrory. The education system, while showing petitive tax system. For the perfor- ents significant educational choices. same factors also delivered a solid signs of improvement, is not yet mance of North Carolina’s economy to School choice and competition 9-4 Republican majority in the competitive with the best systems excel in the long run, we need a more can take several forms, including a congressional delegation, up from in America and the developed competitive education system. mix of entrepreneurial public charter a 6-7 deficit right now. And in an world. Our transportation system is Some on the Left contend that schools, targeted scholarships for officially nonpartisan race that is in plagued by maintenance problems education reform is impossible with- disadvantaged or disabled students fact very partisan, Republican Paul and clogged by some of the most whose needs might be served better out dramatically higher spending on Newby retained his post on the congested interstates in the country. in private settings, and tax breaks for public schools. On the Right, some N.C. Supreme Court, maintaining Pat McCrory and GOP law- families who spend their own money argue that key tools in the school GOP control of that critical institu- makers asked North Carolina voters on their children’s education. reformers’ toolkit, such as tuition tax tion. for the job of taking on these daunt- An education tax credit is a kind relief, clash with the goal of eliminat- Across most of the nation, ing challenges. of IRA — because the return on the Republicans and conservatives are The voters said yes. Now ing biases in the tax code. investment (higher income when the despondent. They waged a massive Gov.-elect McCrory and a greatly Both arguments are flawed. children grow up) is taxable, the prin- effort to turn the president out. It expanded Republican majority will Tight budgets over the past four years cipal (education investment) shouldn’t fell far short. The GOP also fumbled have to deliver. CJ have not stopped North Carolina be taxed. its opportunity to win control of from pouring large amounts of tax Such a credit would promote the U.S. Senate — thanks to another John Hood is president of the John money into public schools. In federal, economic growth and educational Locke Foundation. state, and local dollars for operating freedom — important goals, and inter- round of poor candidate choices, and capital expenses, we spend about related. CJ PAGE 26 DECEMBER 2012 | CAROLINA JOURNAL Opinion EDITORIAL BRIEFS Wind Energy Subsidies

ind energy is the most subsidized form of U.S. energy production. The help comes from a variety of direct and in- Wdirect federal and state measures, writes Robert Bryce of the Manhattan Institute. The best-known subsidy for wind en- ergy is a production tax credit of 2.2 cents per kilowatt-hour of electricity produced. This and other direct subsidies amount to 12 times the equivalent per barrel of what the oil and gas sectors receive and 6.5 times the level of subsi- dies the nuclear sector gets. The wind energy industry gets indirect subsidies as well. The U.S. Fish and Wildlife Service estimates that wind turbines kill 440,000 birds yearly. Most of those birds are protected by the Migratory Bird Treaty Act and/or the Eagle Protection Act. The Obama administra- tion, like the Bush administration before it, has refused to apply the law to the wind energy sector, sparing the industry from heavy federal fines. Moreover, 29 states, including North ‘Tax Expenditures’ and the Budget Carolina, have renewable energy mandates, which impose a significant cost on ratepayers. an something called “tax expenditures” be ditures for buying a home, providing health insur- “The wind industry has had 20 years of the silver bullet to avoid a “fiscal cliff” and ance, and purchasing energy-efficient vehicles also subsidies,” says Bryce. put the federal government on a better finan- argue their products benefit society at large. “If it cannot manage to stay in business Ccial footing? Maybe so! Some think tax expenditures Which brings us to today. The reason tax without subsidies, it doesn’t deserve to be in are the key to any budget deal in Washington. expenditures potentially are part of a budget deal is business.” The term “tax expenditures” is somewhat because they are very costly to federal coffers. If all misleading because logic suggests it indicates types tax expenditures were eliminated, current estimates of spending that are taxed. Instead, it means the op- indicate annual federal government revenues would Cronyism and public trust posite. Tax expenditures are certain kinds of spend- increase by near $1 trillion. That’s enough to elimi- ing made by households and businesses that are not nate the annual budget deficit. And this revenue Americans trust government less than subject to the federal income tax. could be raised without increasing tax rates — they once did. Economist John Garen argues So tax expenditures reduce the which is a sticking point for many elected officials. in a paper for the Mercatus Center at George amount of tax revenue available It’s very unlikely all tax expenditures would Mason University that this increase in mistrust to the federal government. be axed. Indeed, one idea floating around — it came has resulted from the growth in government Tax expenditures can affect up during the presidential campaign — would leave and the increased opportunities for cronyism the tax owed in two ways. First, in place all tax expenditures, but taxpayers would that it brings. tax expenditures can reduce face a limit on the total dollar amount they could Trust in government long has been in a taxpayer’s taxable income, claim. Other ideas would be to keep some tax ex- decline. According to survey data, it peaked in meaning a household or busi- penditures but reduce or eliminate others, or reduce 1966, when 76.6 percent of Americans said they trusted government “most of the time” or “just ness pays tax on a smaller the tax expenditures available to certain taxpayers about always.” By 2010, that number had fallen amount of income. These kinds MICHAEL — such as higher-income households. to 21.5 percent. of tax expenditures are called WALDEN Regardless of what kind of plan is put forward Garen argues that this decline corre- tax deductions. Second, certain to revise tax expenditures, it will be debated hotly sponds with an expansion of federal spending kinds of tax expenditures can for two fundamental reasons. First, current users and regulatory actions; mistrust grows notice- reduce directly the amount of tax owed after the of tax expenditures will see their tax bill rise if tax ably during periods of slow economic growth. initial calculation of that tax bill is made. That kind expenditures are curtailed. He describes much of the increased federal of tax expenditure is termed a tax credit. Second, groups that benefit from tax expendi- activity as forms of cronyism, such as transfer The tax code is loaded with tax expenditures, tures — including charities, the residential housing programs and spending aimed at particular but a few of the more prominent are the mortgage industry, child care centers, and alternative energy interest groups. interest deduction, the deduction for health insur- providers — likely will be hurt if their tax expendi- “Indications of increased rent-seeking ance provided by businesses to their employees, tures are curtailed. and cronyism in the U.S. government thus deductions for donations to charities, a tax credit for To see how this could happen, consider Sally raise a grave concern: cronyism spends a great low-income workers, and a tax credit for child care Smith making a $1,000 contribution to her favorite deal of the public’s money, but it squanders payments. charity. With a tax deduction for that contribution, the public trust, undermines government’s Why do tax expenditures exist? There are two and using a 25 percent tax rate, Sally’s donation re- effectiveness, and fosters economic and social competing explanations. One says they are the re- duces her tax bill by $250 ($1,000 x 0.25) — meaning stagnation,” Garen says. sult of “special interest” lobbying to help a particu- her $1,000 gift effectively costs her $750. Charities If there is less trust in government, Garen lar part of the economy. Let’s say you manufacture worry that people like Sally won’t donate quite as contends, then government becomes less effec- widgets. If you can get a provision placed in the tax much without the tax deduction because the cost of tive in everything it does. code which says people buying widgets get either donating would be higher. Other groups benefiting “While big government is often viewed a tax deduction or tax credit for the amount they from tax expenditures have the same worry. as a solution to numerous problems, a smaller, spend on widgets, then you’ll likely see your widget So keep your eye on the coming arguments narrowly focused government that presents sales increase. over tax expenditures. They may be the key to avoid few opportunities for cronyism may be the best The alternative explanation says govern- falling off the fiscal cliff. CJ prospect for regaining the public’s trust and en- ment uses tax expenditures to encourage spending suring the effectiveness of government,” Garen on products and services that benefit the “public says. CJ good.” The tax deduction for charitable contribu- Michael Walden is a Reynolds Distinguished Pro- tions is a good example. Supporters of tax expen- fessor at N.C. State University. DECEMBER 2012 | CAROLINA JOURNAL PAGE 27 Opinion Change and Principles

n the immediate aftermath of the tion taken by David Brooks of The New enforcement. It is mainly Democrats anecdotal more persuasive than the presidential election, a great deal York Times and Bret Stephens of The who talk about the issue in such broad scientific. They have lost the capacity of ink has been spilled about the Wall Street Journal. Brooks argues that terms now. to debate the opposition intelligently. futureI of the Republican Party. Since I most Americans do not necessarily The final proposition comes They no longer convey the impression care deeply about this issue, however, want a smaller government, just one from Bush speechwriter and CNN that Republicans have a governing it simply is too important to ignore. that will provide them with opportu- pundit David Frum. This is as much mentality. There seem to be three schools nities to succeed — one that will, for about leadership and style as it is The time has come for Republi- of thought about what to do. I’ll at- example, make a college education substantive policy. Frum believes the cans to contemplate three things. First, tribute each to columnists who have affordable and incentivize socially Republican Party now is controlled by conservatism is not dead, but many expressed them valuable work. a “conservative entertainment com- of its advocates misunderstand it and publicly, although I agree with Brooks that some plex.” Romney, John Boehner, Mitch do it a disservice. Second, this coun- many Republican ideological flexibility — a little mod- McConnell, and Reince Priebus don’t try remains a center-right nation, and leaders and activ- eration — is in order. But the real run the national Republican Party; Republicans, at the presidential level ists espouse them problem here is not economic policy. Sean Hannity, Glenn Beck, and Rush at least, need to be more sensitive to as well. The first It is, Stephens notes, on cultural issues Limbaugh do. the center part of the descriptor. Third, originated from that the party should change. Ameri- There does seem to be some- the United States is both changing The Washington cans are religious and conservative thing to this argument. I watch Fox and staying the same. It is becoming Post’s Charles in the sense that they desire social and listen to conservative talk radio. more Hispanic, Asian, and liberal on Krauthammer and change to be incremental rather than But Limbaugh and his like are in the cultural issues. It is staying the same The Weekly Stan- revolutionary. But, as survey after business of increasing their share of a because it is repeatedly in flux. dard’s Fred Barnes. ANDY survey demonstrates, commitments to market, not the number of people who A dynamic society such as ours The argument is TAYLOR zero-tolerance stances on issues like vote Republican. In fact, they prob- nuanced, but the same-sex marriage and abortion are ably enjoy having the party in opposi- will turn its back on a rigid party with principal takeaway losing propositions. They generated tion because it allows them to stoke its head turned toward yesterday, not is that there is little need for dramatic the jarringly out-of-touch and politi- indignation in their audience. Tuning tomorrow. But its people will continue overhaul. The presidential race was cally costly statements on abortion into these shows does not make you to embrace the core values that have extremely close, and Republicans con- and rape made during the campaign smarter, either. Since the programs are made them successful — individual tinue to control the House of Repre- by Senate candidates Todd Akin and fueled by outrage, the focus is on the freedom, personal responsibility, sentatives and a majority of governor- Richard Mourdock — both of whom atypical, the appeal to emotions rather adaptability, and confidence in the fu- ships. This is still a 50-50 country. Mitt lost their races in red states. than intellect. There’s little real analy- ture. The Republican Party should roll Romney lost because of some personal As Mona Charen writes, im- sis. Listening to Beck does not make out the welcome mat for all Americans failings and poorly conceived strategy. migration is another issue that Re- you an expert on the Magna Carta or who treasure such principles. CJ It’s fair to say this position largely is publicans must reassess. Only eight the Progressive Era. correct. There is no need to go back to years ago, George W. Bush secured 44 Republican leaders have had square one. America needs a conser- percent of the Hispanic vote. In that these ideas echoed back to them by a Andy Taylor is a professor of vative party. election, the Republican candidate raucous rank and file. Many Repub- political science at the School of Public There remains room for doctrinal pushed for comprehensive immigra- licans do not know how to respond and International Affairs at N.C. State flexibility, however. This is the posi- tion reform — including tougher other than by imitating, finding the University. Attacks on Religion Un-American eligious freedom is under new them to violate their beliefs about No one practices religion solely as a or reject any religious beliefs. Reli- and sustained pressure. A marriage and family. solitary act. gious freedom means the freedom to recent Pew Forum report found The president of Chick-fil-A pub- Faith is an individual mat- believe as well as the freedom not to Rthat between mid-2009 and mid-2010, licly defended traditional marriage, ter, but to practice it, you must join believe. In a 1994 U.S. Supreme Court religious restrictions increased in which set off a nationwide boycott at- a community. In Sunday schools, case, Justice David Souter wrote, every major region of the world. In tempt led by some big-city politicians congregations, churches, mosques, “government should not prefer one the Pew study’s measures of religious and college campus student groups. and synagogues, gatherings of like- religion to another, or religion to ir- freedom — government restrictions Defense of marriage amendments minded faithful people meet regularly. religion.” and social hostilities — the United to state constitutions are being chal- These religious communities provide Some state legislatures are form- States is viewed lenged in courts across the country. an environment for social conscience, ing bipartisan religious freedom cau- as having moder- But the greatest threat to reli- learning, understanding, charitable cuses dedicated to crafting legislation ate government gious freedom in our nation is in the outreach, and morality. The vitality of that will protect religious freedoms. restrictions and is implementation of Obamacare and its faith comes in its communal character. Arizona, Colorado, Florida, Idaho, at the high end of mandate requiring all insurance plans The freedom to meet, organize, teach, Kansas, Missouri, New Hampshire, moderate hostility to cover birth control, regardless of re- witness, and undertake cultural efforts Oklahoma, and Tennessee now have toward religion. ligious objections. At last count there is the core of religious freedom. working groups of lawmakers focused On college were 28 separate lawsuits involving Faith communities are as natural on stopping attacks on religious lib- campuses, tradi- the mandate with 80 separate plain- and as organic as families and are as erty. North Carolina should join them tional Christian tiffs including Catholics, and evangeli- strong as the individuals who make student groups cal Protestant institutions, along with up that family. Faith families form in 2013. BECKI Religious freedom defines who are being kicked GRAY Jewish, Mormon, and Muslim leaders. the civil society this country was out because they Why all this fuss about the right founded on. Our government was we are as individuals and is the foun- advocate against to exercise our religious freedom? created to protect freedoms and limit dation of our country. It is impera- sexual promiscuity. Pharmacists in It goes to the very heart of indi- its infringement on rights. Religious tive that elected officials — from the Washington and Illinois are being vidual freedom. We can’t separate our freedom is protected expressly and White House to Jones Street to Main forced against their beliefs to dispense faith from our religion — how or if we specifically in the First Amendment Street — be reminded that America’s morning-after pills. In New Mexico, a practice it from who we are and how to the U.S. Constitution, and the 14th remarkable religious freedoms must Christian wedding photographer was we live our lives. During the recent Amendment prevents the states from be protected if any freedom at all is to fined because she refused to accept elections, the presidential and guber- infringing on those protections. survive. CJ a same-sex couple as clients. Several natorial candidates were asked: How Government has no jurisdiction Christian charities have been forced to important is faith to you, and how over belief because it has no right to stop providing foster care and adop- does it affect decisions you make? But come between its citizens and God, Becki Gray is vice president for out- tion services because new laws require it doesn’t stop with us as individuals. just as no one can be forced to adopt reach at the John Locke Foundation. PAGE 28 DECEMBER 2012 | CAROLINA JOURNAL Parting Shot Perdue Legacy Tied to New Fiscal Cliff State Park (a CJ Parody) people who don’t seem to do much to earn their keep,” she added. “If the Fis- Tourism staffer cal Cliff State Park turns out to be a hit, I could be set for another four years. It says it’s a natural for beats going out into the private sector and getting a real job.” the N.C. mountains Travel and tourism staff mem- bers have been scrambling in recent By Parks N. Wreck days to find a suitable location for the Tourism Correspondent newly designated park, Minges said. RALEIGH “Initially, I thought the Dix property orth Carolina travel and tour- might be a good candidate,” she said. ism officials hope to turn a “I mean — it’s on Dix Hill. Surely, we national conversation about could convince people that a hill has Ngovernment spending and taxes into a a cliff. But the governor vetoed that money generator for the Tar Heel State. idea. She wants the Dix property to be The plan: a newly designated Fiscal named Beverly Perdue park.” Cliff State Park. Instead, state officials are consid- “This idea cropped up recently ering changing the name of an exist- when I overheard Gov. Bev Perdue ask ing state park, such as Chimney Rock, during a meeting, ‘What the heck is the Cliffs of the Neuse, Crowders Moun- fiscal cliff, y’all?’” said Lynn Minges, tain, or Hanging Rock. “The only real assistant secretary for tourism, market- qualification is that the park needs to ing, and global branding in the N.C. have a cliff,” Minges said. “Any cliff Department of Commerce. “It appears State officials are considering changing the name of a current state park to The Fis- could be the fiscal cliff. Heck, even that former Gov. Jim Hunt had called cal Cliff State Park. (CJ spoof photo) Falls Lake might work.” and ordered Bev to get on board the Once the site is finalized, travel state campaign to do something about for an actual cliff.” said. On her way out the door after a and tourism staff will come up with the fiscal cliff. She thought it must be “Since North Carolina is blessed single term as governor, Perdue al- ways to exploit the new name. “Imag- some new business she needed to re- with many mountains, we know that ready is trying to push through a deal ine a bungee-jumping setup called cruit with targeted tax breaks.” it’s blessed with many physical cliffs to convert the old Dorothea Dix hospi- ‘Take a Leap Off the Fiscal Cliff,’” Min- “Someone started to explain that — as opposed to fiscal cliffs,” Minges tal property near downtown Raleigh ges said. ‘fiscal cliff’ is a piece of Washington added. “But with all the chatter these into a park. Renaming an existing state Without a site, and with no other jargon dealing with taxes and spend- days about the ‘fiscal cliff,’ why not park after the Fiscal Cliff seemed to details ironed out, the state still esti- ing — mainly a way for Democrats to try to drum up some tourism business make just as much sense, Minges said. mates an annual positive economic im- push Republicans into accepting new from people like the governor who “Besides, Gov.-elect Pat McCrory pact of $37.8 million. “It’s all about ma- tax increases,” Minges added. “But I don’t know what all the fuss is about.” might be looking to clean house in the nipulating the multiplier effect to get thought it sounded like a good name The timing seemed good, Minges Commerce Department and get rid of the number you want,” Minges said. CJ E.A. MORRIS FELLOWSHIP FOR EMERGING LEADERS The E.A. Morris Fellowship is seeking principled, energetic applicants for the 2013 Fellowship class. Applications available online or at the John Locke Foundation. Application deadline is November 30, 2012. 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. Timeline September 15, 2012: Application period opens March 15-17, 2013: Retreat 1 — Pinhurst, NC November 30, 2012: Applications due June 14-16, 2013: Retreat 2 — Blowing Rock, NC January 3, 2013: Finalist notifiction & invitations to Selection eekendW October 18-20, 2013: Retreat 3 — Coastal NC February 2-3, 2013: Hello/Goodbye Gala & Selections Weekend February 1, 2014: 2013-14 Fellowship ends/Hello Goodbye Gala

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