INSIDE THIS ISSUE: DEPARTMENTS Raleigh North Carolina 2 C A R O L I N A Education 6 regulations Local Government 10 Interview 16 kick food Higher Education 17 trucks to the Books & the Arts 20 Opinion 24 curb/10 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION October 2010 Vol. 19 No. 10 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Why Didn’t Perdue Use Cheaper State Plane? Campaign could have State Elections Board saved money by hasn’t interviewed renting state aircraft donors about flights By Don Carrington By Don Carrington Executive Editor Executive Editor RALEIGH RALEIGH n Dec. 8, 2007, Lt. Gov. Bev hile reports from the State Perdue flew from Horace Wil- Board of Elections and in liams Airport in Chapel Hill to the news media indicate O Manteo, where she The Perdue campaign says it spent $4,243 to use this private Beechcraft King Air to Wthat more than 30 individuals were in- attended a midday go to an event in Manteo in December 2007. (CJ photos by Don Carrington) volved in providing campaign event in- dozens of illegal or volving state Senate the flight, chartered by Morganton available for use by top government improperly reported President Pro Tem businessman Charles “Mike” Fulen- officials, could have been used by the flights for Gov. Bev Marc Basnight. The wider, was paid for by two other Mor- Perdue campaign for $1,500, roughly Perdue and her pre- chartered flight, on a ganton residents — James Fleming and one third the cost of the Hickory-to- decessor, Mike Eas- Beechcraft King Air Ola Caldwell — Manteo flight. ley, only one — Ra- aircraft, originated and was recorded The Dec. 8, leigh businessman Gov. Beverly in Hickory, touched Dec. 10 as an in- 2007, flight was McQueen Campbell down in Chapel Hill, kind contribution not the only occa- — has been ques- Perdue Peter Reichard flew to Manteo, and of $4,243. sion the campaign tioned under oath then retraced its original path. If true, for used a convo- by the State Board of Perdue, who was running for this trip the Per- luted and costly Elections. governor at the time, was on the air- due campaign method to trans- Elections Board Chairman Lar- craft for only 340 of its 640 miles aloft. chose to spend an port Perdue by air ry Leake acknowledged to Carolina Perdue’s campaign committee report- extra $2,700 for a to political events. Journal that the board has questioned ed to the State Board of Elections that flight that, in ad- Indeed, reports only one flight provider under oath dition to being presented to the at a public hearing, and, further, that more costly, was The Morganton barber shop owned by elections board in it has not taken sworn testimony from also more incon- James Fleming, who, according to the June and August any campaign workers about the ques- venient and less Perdue campaign, paid the bulk of the cost indicated several tionable flights. Leake, a Mars Hill at- for the December 2007 flight to Manteo. efficient. dozen flights that torney, has served on the board for 18 For, while were arranged by years, the past 14 as chairman. PAID Perdue was using the private plane to donors — many of whom do not reg- He did not explain the board’s RALEIGH, NC U.S. POSTAGE get her to Manteo that day, an identical ularly provide air charter services — apparent lack of interest to date in the PERMIT NO. 1766 NONPROFIT ORG. Beechcraft King Air, managed by the when under a more efficient and trans- individuals who provided the ques- state Department of Commerce, and parent system, the campaign would tionable flights and the campaign staff kept at Raleigh-Durham International members who arranged them. Airport, sat unused. The state plane, Continued as “Why,“ Page 14 In October 2009, the board fined the Easley campaign $60,000 for the free flights from Campbell and an ad- ditional $40,000 for the cost of the pub- lic hearings. Other providers of free flights identified in a News & Observer story were issued subpoenas, but were not called to testify. Among those subpoenaed but not questioned under oath are: • Rusty Carter, a Wilmington businessman who was fined $100,000 by the board Sept. 29 for paying em- A sign in Morganton promotes businesses owned by Michael Fulenwider, who ar- The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 ranged the Dec. 8, 2007, flight for then-Lt. Gov. Beverly Perdue. Continued as “Many,“ Page 15 PAGE 2 OCTOBER 2010 | CAROLINA JOURNAL North Carolina C a r o l i n a Perdue’s Budget Commission Largely Invisible By Karen McMahan scant information is available on the section of the gover- Journal Contributor nor’s website devoted to the commission. A year and a half Rick Henderson RALEIGH since the commission was formed, the website fails to pro- Managing Editor wo days after taking office in January 2009, Gov. Bev vide reports of its activities or even a list of members, but it Perdue signed Executive Order No. 5, establishing the does link to the executive order establishing the group and Don Carrington North Carolina Budget Reform and Accountability a list of meeting dates with an agenda attached for each. Executive Editor Commission,T charged with making state government more At press time, the site listed the “next meeting” date as efficient and effective. The commission’s goal is to consoli- Wednesday, May 10 (which already has passed), but Caro- David N. Bass, Sara Burrows date and streamline state services and programs to reduce lina Journal has learned that another meeting is expected to Anthony Greco, Mitch Kokai costs and ensure established public goals are being met take place in October. Michael Lowrey without sacrificing core services. The site also includes an online form for individuals to Associate Editors To date, the commission submit ideas for review. has made several recommenda- After several unsuccess- Jana Benscoter, Kristen Blair tions adopted by the General As- ful attempts to reach BRAC’s Roy Cordato, Becki Gray Paige Holland Hamp, Sam A. Hieb sembly that should save millions co-chairs, Tolson and Pinnix- Lindalyn Kakadelis George Leef of tax dollars over time. But it’s Raglund, CJ contacted Mark Karen McMahan, Donna Martinez been difficult for the public to Johnson, a spokesman for Per- Karen Palasek, Lee Raynor learn much about the commis- due. “BRAC’s reports and rec- Marc Rotterman, Michael Sanera sion’s work. And with the state ommendations have resulted Jim Stegall, George Stephens facing multibillion-dollar defi- in significant legislation,” said Jeff Taylor, Michael Walden cits for years to come, critics say Johnson, citing as examples the Karen Welsh, Hal Young BRAC must get much more ag- state’s reform of the Alcoholic John Calvin Young gressive if it is to live up to the Beverage Control system, its sale Contributors goals Perdue articulated initially. of underused state aircraft, the A budget reform commis- elimination of the special project Olivia Coward, Ian Davis, sion is not a new idea. The state Gov. Bev Perdue with BRAC co-chairs Norris Tolson required for high school seniors Adrienne Dunn, Alex Gill has had several dating back to to graduate, and changes in state Steven Holden, Beth Kinkaid, and Hilda Pinnix-Ragland at an August 2009 meeting 1973. Former Gov. Mike Easley procurement and contract rules Cameron Lambe, Sara Riggins of the commission. (Governor’s Office photo) Will Schultz, Kellie Slappey formed a similar group in 2002. to promote greater transparency Amanda Vuke Yet despite budget reforms, state government employment and competition. Editorial Interns in North Carolina from 2003-08 rose at a non-seasonally ad- Gerlach shed light on BRAC’s recommendations for justed rate of 13.2 percent, and the state’s debt more than reforms in North Carolina’s Department of Health and Hu- Published by doubled during Easley’s eight years as governor. man Services. Gerlach said BRAC recommended the state The John Locke Foundation invest in new technologies to detect fraud and abuse in 200 W. Morgan St., # 200 Fees used as a backstop Medicaid, which has long been one of the fastest growing Raleigh, N.C. 27601 Since Perdue became governor, rather than making parts of the state budget, and estimated savings of $37 mil- (919) 828-3876 • Fax: 821-5117 lion in the first year. Although House Bill 190, the legislation structural cuts to the budget, the General Asembly has used www.JohnLocke.org incorporating these recommendations, died in committee, more than $1 billion in federal stimulus funds; hiked sales, the fraud and abuse software provisions were adopted by corporate, and income taxes by $1 billion; and introduced a Jon Ham the General Assembly in the 2009-10 budget and are expect- host of new fees and raised existing fees to close its 2009-10 Vice President & Publisher ed to generate recurring cost savings. budget shortfall. Gerlach said the General Assembly also adopted John Hood With lawmakers saying the state faces a $3 billion bud- BRAC’s recommendation to cut overall Medicaid expen- Chairman & President get shortfall next year, North Carolinians may feel justified ditures by expanding care management services to include if they’re experiencing a sense of déjà vu. Bruce Babcock, Herb Berkowitz palliative care, which reduces the severity of symptoms of With the exception of the state budget director and chronic diseases and avoids costlier emergency care. Charlie Carter, Jim Fulghum governor’s policy director, who serve as non-voting ex-of- Chuck Fuller, Bill Graham Three other recommendations from BRAC were con- ficio members, Perdue appoints BRAC’s members from the sidered key issues for the short session of the General As- Robert Luddy, Assad Meymandi business community, government, and academia. The State Baker A. Mitchell Jr., Carl Mumpower, sembly by the North Carolina Center for Public Policy Budget and Management Office and the Governor’s Policy J. Arthur Pope, Thomas A. Roberg, Research: deploying new computer software to uncover David Stover, J.M Bryan Taylor, Office provide professional, administrative, and staff sup- Medicaid fraud; consolidating the state’s IT operations; and Andy Wells port services to BRAC. privatizing custodial services in prisons. Board of Directors In March 2009, Perdue announced initial appoint- Perdue vowed to cut the state’s nearly 400 boards and ments to the commission, including co-chair Norris Tolson, commissions. Earlier this year, she submitted to the General Carolina Journal is a monthly journal the president and CEO of the North Carolina Biotechnology Assembly a list of 48 for possible elimination or consolida- of news, analysis, and commentary on state Center, former secretary of the North Carolina departments tion, but Johnson said the legislature took no action. The and local government and public policy issues of Revenue, Transportation, and Commerce, and a retired legislature’s decision to reform the ABC boards rather than in North Carolina. DuPont executive. The other co-chair is Hilda Pinnix-Rag- privatizing them led some critics to say lawmakers have no ©2010 by The John Locke Foundation land, vice president of corporate public affairs with Progress interest in significant government reforms. Inc. All opinions expressed in bylined articles Energy, chair of the State Board of Community Colleges, are those of the authors and do not necessarily and past auditor with Arthur Andersen & Co. Possible redundancy reflect the views of the editors of CJ or the staff and board of the John Locke Foundation. Other members include Dan Gerlach, president of In 2007, the General Assembly created the Program Material published herein may be reprinted as Golden LEAF and former senior budget adviser to Easley; Evaluation Division, a separate unit in the legislature long as appropriate credit is given. Submis- Norma Houston, former chief of staff and general counsel charged with examining whether government services are sions and letters are welcome and should be to State Senate President Pro Tempore Marc Basnight and being delivered effectively and lawfully. directed to the editor. lecturer in public law and government at the School of Gov- State Rep. James Crawford, D-Granville, one of the CJ readers wanting more information ernment at the University of North Carolina at Chapel Hill; co-chairs of the legislative committee that oversees the divi- between monthly issues can call 919-828- Charles Sanders, retired CEO and chair of Glaxo Inc.; Cur- sion, told CJ this group conducts in-depth examinations of 3876 and ask for Carolina Journal Weekly tis Clark, global director for regional and local government eight to 10 state programs each year, whereas BRAC is sup- Report, delivered each weekend by e-mail, with IBM and former deputy state controller for informa- posed to review all of state government. or visit CarolinaJournal.com for news, links, tion resource management; and Ron Penny, chair of North Crawford said more work is needed because lawmak- and exclusive content updated each weekday. Carolina Central University’s department of public admin- ers will have to cut a minimum of 12 percent to 15 percent Those interested in education, higher educa- istration and former director of the North Carolina Office of tion, or local government should also ask to in the next fiscal year before the state can balance its bud- receive weekly e-letters covering these issues. State Personnel. get, and no lawmakers want to talk about raising taxes Apart from some media reports of BRAC’s activities, when they’re running for re-election. CJ OCTOBER 2010 | CAROLINA JOURNAL PAGE 3 North Carolina Instant Runoff for State Court of Appeals Race: How Will it Work? By Sara Burrows unconstitutional.” Associate Editor The prevailing system of first- RALEIGH past-the-post prevents third parties orth Carolina will be the first from participating, he said. U.S. state to test instant runoff voting in a statewide general The costs and benefits Nelection this November. Counties will have to hire ex- The method is being used to fill a tra poll workers to sort the ballots by state Court of Appeals seat that opened hand, but instant runoff voting still is up too late for the state to schedule a “much cheaper” than traditional run- primary. The instant runoff method off elections, said State Board of Elec- would help the state avoid holding a tions Executive Director Gary Bartlett. traditional runoff election should none “I’m guessing it would be 25 per- of the 13 candidates get more than 50 cent of what it would cost to hold a percent of the vote. runoff election,” he said. If all goes smoothly, the General Voter participation is another Assembly might consider expanding concern. Some worry the instant run- the use of instant runoff voting to par- off section of the ballot will appear too tisan races, which could be good news complicated and that voters will just for third parties. skip over it. Supporters of the system say that But Bartlett expects the “drop- deciding the winner in a single race is off” for the Court of Appeals race will much less costly than holding a sec- Above is an example of an instant runoff ballot provided in the voter guide produced be the same. He said special voter ond election if no candidate receives a by the State Board of Elections for the Court of Appeals election. (Source: http:// guides have been mailed out, and poll majority in the first tally. Letting vot- www.sboe.state.nc.us/content.aspx?id=29) workers will offer to explain instant ers choose and rank several candidates runoff voting to anyone who has ques- also lessens the chances that large off. a former Libertarian gubernatorial • Officials will hand sort re- nominee, thinks instant runoff voting tions. numbers of voters would be denied the There’s also the question of opportunity of selecting a candidate maining ballots. Any selecting one of is “great” for several reasons. the two runoff candidates as the vot- It gives people an alternative to whether voters who don’t select either they agree with, they say. of the two runoff candidates as their Here’s how the instant runoff er’s second choice will be tallied. voting for the lesser of two evils, he • Remaining ballots again will said. first-, second-, or third-place choice election — which will be part of the would be disen- regular general election process — will be sorted by hand. Any indicating one “The cur- of the runoff candidates as the third rent system forces franchised. Under work: a traditional run- • Voters will mark their first-, choice will be counted. people to vote Extra poll workers • Ballots indicating neither of for someone they off, voters could second-, and third-choice candidates select from the top on the ballot. the runoff candidates as the voter’s don’t like to keep will have to first, second, or third choices will be the person they two finalists, so • First-choice votes will be be hired to their preference counted at the polls on election night. thrown out. hate out of office,” • Second- and third-place votes Munger said. would be known Any candidate getting more than 50 sort ballots by in the second percent will win. will be added to first-place votes. The “We’re always runoff candidate with the highest total voting our fears.” round of voting. • If no one gets more than 50 hand, but But turnout percent in the initial tally, a second will win. Instant run- off voting, he said, supporters say for runoff prima- round of counting will take place. Good for third parties? ry elections has Ballots selecting either of the top two gives people the chance to “vote this is will be been between 2.5 vote-getters will be placed aside; those Michael Munger, political sci- percent and 8 per- candidates will enter the instant run- ence professor at Duke University and their dreams.” When Mung- cheaper than cent over the last er ran for governor 20 years, Bartlett in 2008, he said he holding a runoff said. Turnout for heard a lot of peo- this election is ex- Visit the new-look ple say, “‘Oh, I’d pected to be be- sure like to vote for you, but I’m afraid tween 45 percent Carolina Journal Online Perdue will win, or I’m afraid McCrory and 50 percent. will win.’” “It gives a larger percent of peo- ple a chance to participate in the run- With instant runoff, voters could off,” he said. have selected Munger as their first Munger said traditional runoffs choice, and McCrory as their backup are distorted because they represent choice, without “throwing away” their only a small percentage of the most ex- vote. treme and partisan voters. Is it fair that an instant runoff Will November’s Court of Ap- election would allow one voter’s sec- peals race be the only appearance in ond choice to count just as much as an- North Carolina of instant runoff vot- other voter’s first choice? ing? “Voters should be able to vote for “It all comes down to whether the party of their choice without caus- the voters like it or they don’t like it,” ing their least preferred alternative Bartlett said. to win,” Munger said. “That’s what’s “If the voters like it and the can- fair.” didates think it’s fair, then the General The U.S. Constitution, Munger Assembly needs to look at expanding said, “guarantees freedom of asso- it and getting us automated software ciation and the right to petition for re- for it.” dress of grievances. Those two things Purchasing and installing the With links to the new CJTV and CJ Radio Web sites are what parties do. Anything that pre- software, Bartlett added, would cost http://carolinajournal.com vents third parties from participating less than the $5 million it takes to run fully and fairly is not just unfair, it’s one statewide election. CJ PAGE 4 OCTOBER 2010 | CAROLINA JOURNAL North Carolina N.C. Briefs Kerner-Hoeg Leaves Citizen-Soldier Post Mandates hurting rebound By David N. Bass The mileage reimbursement for that to happen.” Business owners trying to Associate Editor the use of her personal car for both Last fall, the program shed three navigate the maze of new gov- RALEIGH trips was about $500 at 50 cents per employees but kept its highest earners ernment mandates and restric- state worker criticized for incur- mile. The combined cost of the rental — Goodale ($130,000 per year), Kern- tions are not racing to add new ring tens of thousands of dollars cars for use once she arrived was about er-Hoeg, and deputy director William jobs in North Carolina. The John in taxpayer-funded travel left $619.39. Abb ($120,000 per year) — on staff. Locke Foundation’s top budget Aher job at the end of June, but records Asked why her personal vehicle That means until recently, half of its expert offers that assessment of the show that she continued incurring cu- wasn’t available for local use, Goodale six full-time employees took home six- state’s latest unemployment data. rious travel expenses in the waning said the information couldn’t be re- figure salaries. The N.C. Employment Secu- days of her employment. leased under public records laws. Peter Leousis, deputy director rity Commission’s newest report As Carolina Journal reported in “We can’t [disclose it], and that’s for the Odum Institute, was CSSP’s lists the state’s unemployment rate 2009, Susan Kerner-Hoeg, director just what it is,” he said. “I can’t com- director for two years before Goodale at 9.7 percent for August, down of military relations for the Citizen- ment further than that.” replaced him. Leousis still serves as one-tenth of a percentage point Soldier Support Program, racked up In an e-mail, Goodale said that principal investigator for the program from July’s rate of 9.8 percent. $76,558 in travel reimbursements over he had deemed the arrangement “the and earns almost six figures. “From ObamaCare to financial the last three years. Until departing most cost-effective way for our office High salaries were one of a laun- regulation reform to the various June 30, she was CSSP’s second-high- to support her university business ac- dry list of criticisms in the UNC-Cha- stimulus bills oozing out of Wash- est-paid employee at $129,600 annu- tivities for both trips.” pel Hill review. In one case, “a staff ington, D.C., Congress has created ally. The reason why Kerner-Hoeg’s member was paid approximately twice new sets of rules and regulations that The program, personal vehicle wasn’t available is what other UNC employees would will have a major impact on busi- housed under the a personnel record not subject to dis- typically receive for similar work,” nesses’ bottom line,” said Joseph Odum Institute for closure, officials say. Only specific em- and there were “several other cases in Coletti, JLF director of health and Research in Social ployee information — such as salary which salaries were substantially high- fiscal policy studies. “And that’s not Science at the Uni- and age — can be made public. er than those for comparable employ- all. These new laws allow bureau- versity of North “All other information specific to ees on campus,” officials wrote. crats to write even more rules and Carolina at Cha- an employee is part of his or her per- The review also questioned regulations — hundreds of them.” pel Hill, is meant sonnel file and is confidential with few pricey payments to contractors. CJ re- “Like a driver who pulls to assist combat exceptions,” said Regina Stabile, an at- vealed that CSSP paid $150 an hour to onto a highway and isn’t sure of veterans return- torney with UNC-Chapel Hill. Kansas-based consultant Kent Peter- the speed limit, most business ing from Iraq and Records show that Kerner-Hoeg son “for strategic thinking and action” Susan Kerner- Afghanistan. The traveled far less in 2010 compared to that included “developing and dis- owners will proceed with some Hoeg (UNC photo) extra caution until they get a good initiative is funded past years, getting reimbursed for al- seminating” the program’s bimonthly sense of the rules of the road,” Co- by a $10 million most $3,000 in mileage, lodging, and newsletter. Payments amounted to letti added. “That means bad news federal defense appropriation, half of meals. On one occasion, the U.S. Army hundreds of thousands of dollars. for efforts to boost the number which U.S. Rep. David Price, D-4th picked up her tab for lodging and air- During that time, Peterson was of new jobs in North Carolina.” District, obtained with an earmark. fare for a trip to Phoenix, Ariz. considered director of community rela-

An internal university review re- CSSP had $2.2 million on hand tions. Officials called his management leased last year, however, condemned at the end of March. It received a no- role “not appropriate” given his out- the program for having an “ambitious cost program extension through the of-state status. Transit trouble and ill-defined” mission, misappropri- end of the current calendar year, and Until recently, CSSP rented of- ating funds to irrelevant activities, and Goodale said he’ll request another for fices on the second floor of a minimall Public transit costs much potentially overpaying its employees. 2011. Meanwhile, he’s looking for new in downtown Carrboro. Goodale said more money than driving, and That led to cutbacks and layoffs. sources of public and private funding. the program now has moved to the North Carolina transit systems Kerner-Hoeg’s role was part “We are really working to get Odum Institute’s location at Manning require huge subsidies to attract of the overhaul. Previously, she had other funding,” Goodale said, “and I Hall on the UNC-Chapel Hill campus any riders at all. A leading na- worked from her home near Washing- think the prospects are very good for and isn’t paying rent. CJ tional transportation expert reaches ton, D.C., and commuted to Chapel those conclusions in a recent John Hill several times a month, submitting Locke Foundation Spotlight report. reimbursements for airfare, car rentals, “Public transit costs an aver- and hotels. Her travel was curtailed age of $1.15 per passenger mile in beginning late last year. North Carolina, and nearly $1 of that Kerner-Hoeg’s departure will total is subsidized,” said report au- help CSSP shore up its budget, said thor Randal O’Toole, senior fellow CSSP’s executive director Bob Goo- The John Locke Foundation presents at the Cato Institute. “That’s more dale. They won’t seek a replacement, expensive than the national aver- he said. A Citizen’s Constitutional Workshop age cost of 90 cents per passenger “She’s been a real asset,” said What the Founders and the State Ratification Conventions mile, with a subsidy of more than Goodale, who also served in the Hunt Can Teach Us Today 70 cents from nontransit users.” administration. “I’ll miss her in terms Breaking down the numbers of connecting with resources up [in Featuring even further, N.C. bus transit re- Washington].” Dr. Troy Kickler, founding Director of the NC History Project, and quires subsidies averaging 85 cents Travel records show that CSSP Dr. Michael Sanera, Director of Research & Local Government Studies. per passenger mile, while subsidies kept reimbursing Kerner-Hoeg for travel in 2010, although less frequently. to Charlotte’s light rail system are Saturday, October 2, 2010 Once in January and again in “several times greater,” O’Toole 8:30 am- 1:30 pm March, Kerner-Hoeg drove from her said. “Overall, North Carolina The John Locke Foundation, 200 W Morgan St., Raleigh, NC 27601 home in Annandale, Va., to Chapel transit riders pay an average of 72 Price: $10.00- includes lunch. Hill and got reimbursed for mileage. cents every time they board a bus, Due to high demand, this is a repeat offering of the August 7, 2010 On both trips, however, she rented while taxpayers pay an average of workshop. a car upon her arrival in the Triangle more than $3 to support that trip.” and expensed it rather than use her Space is limited for this event, pre-registration is required. Those numbers dwarf the personal vehicle to attend meetings in For more detailed information, or to register, please visit cost of driving in North Car- the area, apparently leaving her own www.johnlocke.org/events or call 1-866-JLF-INFO. olina, O’Toole said. CJ car unused. OCTOBER 2010 | CAROLINA JOURNAL PAGE 5 North Carolina Federal Food Safety Legislation Hits Snag over Unfunded Costs

By Karen McMahan increase to $20,000 in the first year Contributor if the farm needed to hire an outside RALEIGH consultant. n the wake of the recent egg sal- monella scare, the U.S. Senate ap- Compliance costs peared ready to vote on S. 510, the In April, PlanetGreen.com cited a IFDA Food Safety Modernization Act, study from the University of California despite widespread opposition from at Davis showing compliance costs for groups representing small farms and small farms could be as high as $100 an small food-processing facilities. They acre. The new rules mean not only in- say the proposed regulations are un- creased recordkeeping and inspections necessary, redundant, ineffective, and but also different standards for differ- threaten small farm viability. ent foods. Sen. Richard Burr, R-N.C., is an Debbie Hamrick, director of spe- original co-sponsor of the bill. Both he cialty crops with the N.C. Farm Bureau and Sen. Kay Hagan, D-N.C., serve on Federation, said her organization has the Senate Health, Education, Labor, More than 300 million eggs were recalled in the most recent salmonella outbreak. not taken a position on the bill, but and Pensions Committee, which held (CJ file photo) added that the amended version of the hearings on the proposed bill. Several Senate bill is better than the tougher groups that do not support the bill stead, Coburn has cited “inconsistent provisions are unlikely to make the oversight, ineffective coordination, food supply safer and may instead House version (H.R. 2749) passed in told Carolina Journal that both Burr and March. Hagan have worked to make it less and inefficient use of resources” for give the public a false sense of security. gaps in enforcement. Three new grant programs would Hamrick said her group and onerous. others are concerned because they’ve The latest snag to the bill’s pas- FDA Commissioner Dr. Marga- increase spending by $335 million from ret Hamburg admitted that had rules 2011-15. These grant programs, along heard the FDA has had a broad group sage came Sept. 15 and remained at of stakeholders working on food safe- press time. Sen. Tom Coburn, R-Okla., proposed 10 years ago been finalized with the establishment of “Centers of and implemented, the problems on the Excellence” at selected state health de- ty regulations for more than a year. and Senate Majority Leader Harry It seemed a foregone conclusion that farm where the salmonella outbreak partments, would likely mean more Reid, D-Nev., have sparred, among sweeping regulations were coming, originated likely would have been government hiring at the state and lo- other things, over the bill’s cost, esti- so it’s really a matter of working very identified before it occurred. cal levels. Once the grants expired and mated at $1.6 billion over five years be- hard with lawmakers to make the bill Still, the bill authorizes no fewer federal funds were exhausted, state cause it’s not funded. Coburn outlined “more palatable,” Hamrick stated. than 5,000 new federal employees by and local taxpayers would have to foot his concerns about the bill on his Sen- Both Hamrick and McReynolds ate website. fiscal year 2014 to implement the pro- the bill to keep the personnel. The school-based allergy and said farmers worry because the pro- visions, plus another 150 field staff in duce safety standards will authorize ‘More money solves nothing’ food defense by fiscal year 2011. anaphylaxis management grant pro- gram, for example, establishes federal the FDA for the first time to enforce “More money and more regula- Proposed regulations standards for how local schools should rules on how to grow fruits and veg- tions solve nothing when Congress deal with food allergies. And yet the etables at every farm, regardless of the lacks the discipline to hold agencies The proposed regulations grant Centers for Disease Control and Pre- farm’s size or the potential risks asso- accountable,” said Coburn. With 15 broad authority to the FDA regarding vention already have published stan- ciated with growing, shipping, or con- agencies, including the Food and Drug performance standards, product trace- dards for schools, making the stan- suming the produce. Administration, U.S. Department of ability, and produce safety standards. dards redundant in the view of critics. Sue Johnson-Langdon, executive Agriculture, and even the Environ- The bill also would grant mandatory director of the North Carolina Sweet mental Protection Agency now regu- recall authority and lower the thresh- Effects on North Carolina Potato Commission, told CJ that the lating food safety, Coburn said a lack old for detaining food deemed adulter- Tar Heel State is the biggest exporter of regulations isn’t the problem. In- ated or misbranded. Critics say these Roland McReynolds, executive of sweet potatoes into the U.K. and the director of Pittsboro-based Carolina European Union. Those entities have Farm Stewardship Association, told CJ even tougher certification standards ooks authored By staFFers that “the bill creates the potential for than the U.S., and every Tar Heel ship- B JLF applying large-scale industrial stan- per complies with those standards. dards and recordkeeping requirements Sen. Jon Tester, D-Mont., an Efficiency and Externalities to small farms, making it harder for ex- organic farmer, has sponsored two isting farms to survive and discourag- amendments that would provide in an Open-Ended Universe ing agricultural entrepreneurship.” some limits on the traceability and A report McReynolds prepared recordkeeping requirements for facili- for policymakers shows direct-to-con- ties based on average annual adjusted sumer sales of FDA-regulated crops gross income and whether the farm totaled $1.1 billion in 2007, and Tar sells directly to consumers. Hagan re- Heel farmers sold over $52 million of cently announced her support of the organic produce in 2008. The number Tester amendment, saying she wants of fruit and vegetable farms in the state to protect small farms. increased 11 percent from 2002 to 2007. By Roy Cordato Burr’s support for the food safe- Vice President for Research North Carolina has 45,000 small ty bill seems out of character with his John Locke Foundation farms, but 91 percent gross under opposition to other costly legislation, $50,000 annually and have fewer than including the president’s health re- “Cordato’s book is a solid 20 employees, McReynolds said. form law. In a written statement to performance, demonstrating The increased cost for a typical CJ, Burr spokesman David Ward said, impressive mastery of both small farm doing on-farm processing “Senator Burr recognizes that a one- the Austrian and neoclassical to create and comply with the expand- size-fits-all approach does not work literature.” ed Hazard Analysis and Risk-Based when it comes to our nation’s farms Israel Kirzner Preventive Controls in the bill would and small businesses, and he has been Cato Journal be $9,500 annually, according to Chris working tirelessly to shape a bill that does not result in an FDA takeover www.mises.org Hardin, operator of Rivendell Farm in Mecklenburg County. That cost would of the farm.” CJ PAGE 6 OCTOBER 2010 | CAROLINA JOURNAL Education COMMENTARY JLF Analyst Criticizes Perdue Teacher Effectiveness Choice To Oversee ‘Race to Top’ And Transparency By Karen Welsh Harrison retired from DPI in August. Contributor Perdue spokeswoman Christine s it possible to measure teacher move to a more effective compensa- RALEIGH Mackey said Harrison was hired be- effectiveness? For decades, tion system that uses transparent, ov. Bev Perdue’s decision nam- cause he was instrumental in formulat- public school principals have outcome-based measures, includ- ing State Board of Education ing and presenting the Race to the Top subjectedI teachers to a battery of ob- ing test scores and value-added Chairman Bill Harrison to grant application. She called Harrison servations and evaluations purport- measures, to reward the efforts of overseeG the state’s $400 million Race a very skilled, experienced education edly designed to assess the quality individual teachers and administra- to the Top education funds has raised leader who has played an integral role of classroom instruction. Rather tors. For the last four years, the N.C. eyebrows among some advocates of in the governor’s Ready, Set, Go! initia- than yield appreciable information, Department of Public Instruction however, these kinds of teacher as- has maintained a sophisticated edu- education reform. tive, for which the federal funds will be sessments merely served as one of cational value-added assessment The recent appointment allows used. the few formal requirements needed system (called EVAAS), so this kind Harrison to receive a $90,000 salary “Dr. Harrison will provide the to attain lifetime job security, also of performance pay arrangement to administer the federal dollars to highest level of transparency and ac- known as tenure. would come at no additional cost to school districts throughout the state. It countability to the handling of the Race On the other hand, the “value- taxpayers. also allows him to hire an undisclosed to the Top Funds,“ she said. “He will added” method of teacher evalua- So why do education leaders number of staff lead the over- tion continues to show promise as in North Carolina refuse to expand at currently arching strat- an objective and reliable assessment the use of EVAAS? Since the start of unknown ad- egy while Dr. of teacher quality. Value-added North Carolina’s testing program in ditional costs. Atkinson and analysis uses standardized 1996, it has been common The state the Depart- tests to estimate teacher practice for the state’s learned that ment of Pub- effectiveness. This pow- public school systems to it had been lic Instruction erful evaluation method gauge school and teacher awarded Race will oversee employs advanced statisti- quality by simply compar- to the Top the day-to-day cal techniques to project ing schoolwide test score funding in implementa- the future performance of results to statewide aver- September. tion of ‘Ready, individual students based ages or trends. By design, “Here we Set, Go’.” on their past performance. the schoolwide approach go again,“ said State Board Chairman Gov. Beverly O t h e r s The difference between offers little information Bill Harrison Perdue the projected and actual about the performance Terry Stoops, are question- performance of students TERRY of individual teachers director of education studies at the ing if Harrison’s position was created determines the value STOOPS within the school, thereby John Locke Foundation. “This is dumb. because DPI lacks the ability to man- added or subtracted by allowing inept teachers This is outrageous giving the chairman age the funds. the teacher. to lie low in an otherwise of the Board of Education a superior “It’s not a confidence issue,” she Value-added analy- good school. Of course, position to the superintendent of the said. “Dr. Harrison has been bridging sis has upended the conventional such cover is often a double-edged North Carolina Department of Public the gap between DPI and the State wisdom on teacher quality. For sword for the teachers themselves Instruction. Board of Education for some time years, public school advocacy because it also obscures the achieve- “Do we need another layer of now.” groups complained that the most ments of good teachers in poorly oversight?” Stoops asked. “I don’t Stoops said the position created talented teachers snub minority and performing schools. see why Harrison has to do it. DPI for Harrison is an example of what is low-income schools by migrating to Making matters worse, state is already in charge. Superintendent wrong with the current state govern- less challenging and higher-paying education officials and school June Atkinson is already overseeing ment. schools in culturally and economi- superintendents have worked the day-to-day operations. NCDPI is He feels it is payback for Har- cally homogenous suburbs. together to restrict access to the the place where this money should be rison, who is a close ally of Perdue. Nevertheless, according to state’s value-added information. monitored. It is a duplication of func- “Gov. Perdue was not going to open a recent analysis of value-added In a recent interview with National tions.” this up to someone else,” he said. “She scores for teachers in the Los An- Public Radio, Donald Martin, super- geles Unified School District, the intendent of the Winston-Salem/ NCDPI Chief Financial Officer already had him in mind from the be- district’s best elementary school Forsyth County School District, Philip Price said this isn’t true. “The ginning. It follows the exact same pat- teachers shared few common traits. praised the State Board of Educa- work is not duplicative between the tern and the same line as former Gov. The top teachers had none of the tion for maintaining a policy that areas,” he said. “The Race to the Top Mike Easley. Bev is running the Mike common metrics used to determine keeps value-added assessment of work involves many different parts of Easley playbook. Every person she has teacher quality (e.g., teacher race, teacher performance under wraps. state government. The DPI focus will chosen in education is from the North age, years of experience, educa- Their shared goal is to protect teach- be on administering the activities that Carolina Association of Educators. She tion level, instructional method, or ers from public scrutiny. involve public schools and checking in is rewarding her friends and punishing student demographics) in common. Public school districts should with the other agencies to assure that her enemies, which are essentially any- What they did have in common was make value-added information we are all headed in the direction out- one who opposes the N.C. Association the ability to raise student achieve- readily available to parents, regard- lined in the grant application.” of Educators.” ment far above expectations. less of how much the informa- Questions also have arisen over Stoops also wonders if the ap- These facts raise serious tion would upset the status quo. whether Perdue hired Harrison as an pointment of Harrison is meant to questions about the continued use It would encourage parents to indirect rebuke of the 2009 lawsuit keep some of the Race to the Top funds of state salary schedules, which demand that schools place their challenging the constitutionality of from being used in charter schools. reward teachers based on years children in the classes taught by Perdue’s decision naming Harrison “Gov. Perdue is not receptive to of experience, advanced degrees, the most effective teachers. And the CEO of DPI. Perdue attempted to give truly innovative schools, and she will credentials, or additional duties. only way to achieve these demands Harrison the ability to overrule the not allow innovative models to exist Value-added analysis suggests that would be to grant parents the in- elected superintendent of public in- outside the traditional public school,” the current system does not select formation and educational choices and reward talented teachers or they deserve. CJ struction. In July, a Superior Court he said. “She is overlooking some preclude ineffectual teachers from judge ruled against Perdue, saying the amazing charter schools in the pro- remaining in the classroom. Dr. Terry Stoops is director of state constitution placed the super- cess. Both Gov. Perdue and Harrison Public school systems in education studies at the John Locke intendent in charge. Between his DPI will continue to ignore that we already North Carolina and beyond should Foundation. and state school board jobs, Harrison have innovation in our charter schools would have earned $265,000 annually. that can easily be replicated.” CJ OCTOBER 2010 | CAROLINA JOURNAL PAGE 7 Education Did Education Officials Cry Wolf on Teacher Layoffs? “Lack of funding isn’t what plagues public education,” she said. Many dismissals “There’s just more and more admin- istrators added to school systems and premature and less and less classroom teachers. It‘s re- ally jarring when you think of it that way. There is room to stop education later rescinded spending that would stop the bleed- ing and not jeopardize teachers or the prior to stimulus classroom. They need to stop the con- tinual hiring of nonteaching positions. By Karen Welsh It’s a festering, unsustainable plan.” Contributor Hans Plotseneder, a business and RALEIGH German teacher at West Mecklenburg ast spring, thousands of teach- High School in Charlotte-Mecklenburg ers throughout North Carolina Schools, said he decided to run for the found pink slips in their boxes, school board in 2011 because of the Linforming them of impending job waste he has witnessed in his decade losses in the 2010-11 school year. Pro- of teaching in the school system. test marches occurred, and a media “There are 9,000 nonclassroom blitz ensued, with newspapers across personnel in the CMS district,” he said. the state deeming the action of school The notion of upcoming massive teacher layoffs had its start at the highest levels. “Out of this, there are more than 1,700 boards as “catastrophic” and “disas- Secretary of Education Arne Duncan predicted in February 2010 that extensive layoffs administrators in the downtown office. trous.” were coming. (Image of Reuters web news story) If you compare this to any other com- As the hoopla subsided, how- Lindsey Burke, education policy ana- for North Carolina, state Sen. Rich- pany of the same size across the Unit- ever, most school boards quietly final- lyst for the Heritage Foundation in ard Stevens, R-Wake, co-chairman of ed States, [it] would have 150 people ized their operating budgets and hired Washington, D.C. “School districts the Senate Education/Higher Educa- in corporate headquarters. It is a total many of those same teachers back into send out all of these pink slips before tion Committee, said the state shifted waste of money.” the classrooms. their budgets are final, then they re- $120 million from lottery funds to pay Plotseneder said he was appalled This year, most school districts scind them. They are creating a crisis.” teacher salaries. when 600 teachers were given notice across North Carolina recalled a ma- Guilford County Schools is one Burke said such cost shifting is last spring that they would have to jority of their pink-slipped teachers, example. It was reported that 160 an insufficient fix, putting a Band Aid vacate their positions. Meantime, ad- minimizing classroom losses before teachers were going to lose their jobs on what could become a fatal fiscal ministrative positions remained vir- Speaker of the House Nancy Pelosi for the 2010-11 school year. However, wound. tually untouched. He said CMS could called lawmakers back from their sum- Laurie Hogan, program administrator “The bailout just exacerbates the streamline its administration instead mer vacations in August to approve an for communications in the district, said problem,” she said. “It stops school of laying off teachers. emergency $10 billion spending pack- the layoffs never transpired. boards from creating reform and eas- Plotseneder also noted that the age on public education. “We waited until the budget un- ing the taxpayers school district used tax dollars to hire a consulting com- The additional funds from Con- folded, and most of the teachers were ‘burden by better pany that con- gress were on top of the $100 billion rehired,” she said. “The rest left the targeting resourc- cluded cutting the U.S. Department of Education re- school system through normal attri- es and reducing In Guilford County, administrative ceived through the recent stimulus bill, tion, retirement, and the population in spending.” overhead person- and billions of dollars in “Race to the schools changing.” S t e v e n s for example, nel was not an Top” education funding. In addition to the large infusion agreed. “It happens all the time,” said 160 layoffs were option. of federal money, totaling $380 million “It’s a half- A l t h o u g h billion dollars,” predicted, but CMS ended up he said. “It was hiring back 140 important for us not one occurred teachers before to give the monies the state and fed- this year, but it put eral governments off for another year offered bailout how the state is going to pay for the funds, he said they failed to bring back positions next year. It’s a temporary more teachers after deferring up to 80 Join the Carolina Journal Publishers Council solution. We don’t know what’s going percent of the federal and state fund- to happen in 2011. There’s going to be ing until the 2011-12 school year. Carolina Journal is North Carolina’s real alternative media tough choices.” “Only 20 percent of the monies source, giving you in-depth reports of statewide news, ag- Burke said drastic cuts are need- given for this year have been used,” gressively uncovering corruption and holding elected officials ed, as the growing number of adminis- Plotseneder said. “They are holding accountable and honest. trators are creating top-heavy staffing back a big portion. They got the mon- in school districts. If administrative ey, but they didn’t fund the positions We have the stories exposing millions of dollars in govern- staffs were reduced, she said, there or the classrooms that they were sup- ment waste, numerous cases of political cronyism, sweetheart would be enough funding in place to posed to. Keeping the funds untouched real estate deals for politicians, and secret political slush funds. keep teachers in the classrooms, in- is their plan to keep the administration stead of announcing layoffs that may intact. It doesn‘t add up.” If you believe government without scrutiny is a dangerous or may not be rescinded. Burke said every school district thing, count on Carolina Journal to be your watchdog. Get the Even though K-12 student en- in North Carolina and across the na- inside lowdown on statewide news. rollment hasn’t increased nationwide tion could minimize teacher layoffs since the 1970s, Burke said, nonteach- by providing school choice to parents ing staff positions have surged by 83 Producing the best journalism in North Carolina is expensive. and guardians of students. “It saves a percent over that time. The percent- Keep the presses rolling. Join the Carolina Journal Publish- lot of money for taxpayers,” she said. age of instructional staff at schools has “Graduation rates and performance ers Council today at http://www.carolinajournal.com/sup- shrunk in recent years, from 70 percent are a lot higher. It’s a win-win situation port/. to 51 percent. all around.” CJ PAGE 8 OCTOBER 2010 | CAROLINA JOURNAL Education Bonded indebtedness Costly School Construction Fuels Drive for Guilford Tax By Sam A. Hieb sion vice chair, could not be reached funding ran out even before the project Costs have been trimmed, how- Contributor for comment. But he parts ways with used to sell the bond to voters — a new ever, although GCS still must buy land GREENSBORO his chairman on the sales tax, stating Jamestown Middle School — could be in an area surrounding the airport that orgive the baseball analogy — the during public debate on the issue that started. But none of this stopped com- has been targeted for economic devel- World Series is just around the he believes “government is too big, missioners from placing the bond that opment. corner, after all — but the Guil- and taxes are too high.” again included the new Jamestown The new high school now is es- Fford County Board of Commissioners Commissioners have not in- school on the ’08 ballot. timated to cost $72 million, not much is at the plate, down two strikes with creased property taxes the last two A separate $45 million bond for a cheaper than the new Watauga Coun- the bases loaded. They’re swinging for years. Under the leadership of Alston new Eastern Guilford High School also ty High School, which cost $79 mil- the fences, but they’d better be pre- and Arnold, the board cut several appeared on the ballot after the school lion and is the state’s most expensive pared for a changeup from voters. county jobs in was destroyed school. For the third time in two years, an effort to re- by fire in No- A recent John Locke Founda- commissioners have placed a quarter- duce the coun- vember 2006. tion policy report made the case that cent sales tax increase on the ballot, ty budget. S c h o o l Watauga County pushed for a quarter- this time for the November midterm A l s t o n officials decid- cent sales tax hike at least in part to pay elections. says there’s ed to push for for the new high school. Back in August, commissioners still more fat the bond when Although Watauga commission- voted 9-1 to put the tax increase on to be cut from they discov- ers stated the $1.9 million in revenue the ballot, with Commissioner Steve the budget, ered insurance that would be generated through the Arnold casting the only “no” vote. but it seemed would not sales tax hike would go toward “recre- (Commissioner Kay Cashion was ab- inevitable that cover the cost ational facilities,” the study notes that sent but had expressed support for the commission- of rebuilding the revenue could go toward any “le- increased sales tax.) ers would have the school. Voters have rejected the sales tax to take more GCS also gal purpose,” including debt service twice. It was on the ballot for both the drastic action has had other on the new school. May 2008 primary and the November given the debt issues with In the Aug. 31 special election, 2008 general election. load, which school con- Watauga voters overwhelmingly Those results are not without included a struction costs. turned down the sales tax hike. Propo- irony, however. In 2008 voters also $115 million The so-called nents hoped the special election would approved more than $500 million in bond for a new “green” North- enhance the pro-tax turnout the same bonds, adding to a county debt load county jail and ern Guilford way it did in Randolph County, where that will reach $1 billion in 2011-12. $457 million in Middle School voters approved a quarter-cent sales Thus the need for a sales tax in- school bonds. not only ran tax hike in a special March election. crease, says commission chairman A l s t o n over budget, In contrast, Guilford commission- Skip Alston. added that he’s meeting Guilford but also, according to published news ers believe that placing the sales tax on Citizens “were told that if they County Schools Superintendent Mo reports, is not using energy as efficient- the ballot during regularly scheduled approved the bonds for the schools Green and school board chairman Alan ly as school officials claimed it would. elections — when voter turnout is ex- and the jails, it would result in a tax Duncan about managing debt over the In addition, a proposed school pected to be higher — will increase the increase,” Alston said in a phone in- coming years. Commissioners have in the western part of the county near chances of the tax hike passing. terview. “It was publicized very well. sparred with Guilford County Schools Piedmont Triad International Airport With that in mind, Alston will They voted for the bonds, but they over the years about spending on new originally was estimated to cost $88 form a committee to campaign for the voted down the funding stream to help school construction. million — which would have made it sales tax. Alston added the campaign pay for those bonds.” A $300 million bond passed by the most expensive high school ever will “include yard signs, billboards, Arnold, who serves as commis- voters in 2003 was badly managed, and built in the state. ads — the whole works.” CJ

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With links to the new CJTV and CJ Radio Web sites http://carolinajournal.com OCTOBER 2010 | CAROLINA JOURNAL PAGE 9 Education Homeschooler Group Discusses Parental Rights, Independence

By Hal Young schools and potentially to parental in- Contributor volvement in the public school system. RALEIGH “If you love the concept of liberty for he most recent report from the families, and don’t want to become a N.C. Division of Nonpublic Edu- slave to the government, you need to cation found some 81,509 stu- come to their defense,” he concluded. dents,T almost one in 20 N.C. children, While law school professors are being taught at home. This gives North training the next generation of judges, Carolina one of the highest rates of other challenges to homeschooling are homeschooling in the country. There closer at hand. The United States is a are more than 200 local associations in signatory to the U.N. Convention on North Carolina, some with hundreds of the Rights of the Child. families, providing fellowship, activi- Until ratified by the U.S. Senate, the treaty would have no impact on ties, and support. Homeschool gradu- American parents. If it passed, though, ates here have been awarded the most and its provisions became part of U.S. prestigious college scholarships in the law, its effect could be swift and de- state, gained appointment to service structive, Smith said. A child who dis- academies, and even run for Congress. agreed with a parent’s guidance on The sunny social and legal cli- not only schooling but also discipline, mate largely is confined to the Tar Heel Spencer Mason, president of North Carolinians for Home Education, speaks with friendships, or activities, would be giv- State, however. According to federal en direct access to family judges who and academic studies, the national rate another participant at a recent homeschoolers conference in Chicago. (Photo by Hal Young) would rule on the wishes of the child of home education is 41 percent lower with no determination of whether a North Carolinians for Home Educa- This year’s edition drew 380 attendees than North Carolina’s, and many advo- wrong even had been suffered. tion, the state’s largest homeschool as- from 34 states and five countries. The cates of parent-directed education see “Anybody with kids is impacted sociation, recently visited Chicago for networking allows state homeschool trouble on the horizon — from trends by the Convention on the Rights of the a leadership conference sponsored by organizations to share experiences and in academia, law, and even a United Child,” Smith said. “If it becomes the the Home School Legal Defense Asso- insight into the legal and social chal- Nations treaty which could endanger law of the land in the United States, if ciation. The annual event is organized lenges facing the movement. seriously families’ right to choose an a child dislikes a parent’s educational to “encourage, equip, [and] challenge” Often the conference addresses independent, private education for choice, all she needs to do is complain state leaders, according to HSLDA’s subjects with ramifications far beyond their children. to Social Services. That will go straight president, attorney J. Michael Smith. the family schoolroom. A regular pre- Several board members from to a judge who will consider the wish- senter at the conference is Brian Ray es of the child with no consideration of the National Home Education Re- whether a harm has even occurred.” search Institute. Ray noted that in 25 In Germany, Christian par- years of studying the movement, he ents have been jailed for taking their has seen the number of homeschoolers young children out of explicit sex-ed rise nationwide from “about 12,000 to a programs, and other cases have been little over 2 million.” Public acceptance filed against parents and educators in has grown tremendously, he said, and England, Sweden, and Canada in the while a parent’s choice to teach chil- name of the convention. HSLDA attor- dren at home is not “mainstream” yet, neys have warned for several years of The Carolina Freedom Club Presents “it has become a considered choice for the growing influence of international the mainstream.” Looking Under Government’s Hood: Transparency Tools and Tactics law on American judges, even when But while old cavils about par- connected with unratified treaties and Featuring ents’ ability to teach or their home- rooted in legal traditions unlike the schooled students’ ability to interact in U.S. Constitution. society have been answered satisfacto- To head off some of these con- and rily, academic journals continue to of- cerns, HSLDA is promoting a Paren- fer radical criticisms of this freedom. tal Rights Amendment (H.J. Res. 42), Ray pointed to a paper by Northwest- opening with the assertion that “The ern University’s Kimberly Yuracko for Joseph Coletti Becki Gray liberty of parents to direct the upbring- the California Law Review, where she ing and education of their children is a Director of Health & Fiscal Vice President proposed that homeschooling be tight- fundamental right.” Policy Studies of Outreach ly regulated against the possibility that Five members of North Caroli- parents might “shield their children na’s U.S. House delegation, Reps. Wal- from liberal values of sex equality, gen- ter Jones, R-3rd, Howard Coble, R-6th, der role fluidity, and critical rational- Mike McIntyre, D-7th, Sue Myrick, R- ity.” 9th, and Patrick McHenry, R-10th, are Attorney Michael Farris, HSL- co-sponsors of the measure. Repub- DA founder and chancellor of Patrick lican Sen. Richard Burr has pledged Henry College, raised similar concerns his support, along with several House from other law journals. Farris warned candidates (from all parties) currently that academics are arguing that the seeking election. parents’ control of the child’s educa- North Carolinians for Home tion is granted by the state and is not Education supports the amendment. inherent. Spencer Mason, president of NCHE, This is important for more than attended the Chicago event and said just homeschoolers, Smith said. he agrees with HSLDA’s concerns. “Any time any group depending “We have contacted our member- on constitutional rights faces a chal- ship to remind them we need to get lenge, it’s a liberty issue that could con- this amendment passed,” he said, “and For more detailed information, or to register, please visit cern all of us,” he said. Restrictions on how important it is to protect parents’ ww.johnlocke.org/events or call 1-866-JLF-INFO. the content and structure of home edu- rights to direct the rearing and educa- cation also would be applied to private tion of our children.” CJ PAGE 10 OCTOBER 2010 | CAROLINA JOURNAL Local Government

Town and County Wilmington annexations Raleigh Kicks Food Trucks to the Curb

Annexation remains a cen- By Sara Burrows When asked why the city restricts the number and lo- tral local government issue in New Associate Editor cation of mobile food units, Raleigh City Councilmember Hanover County. In addition to RALEIGH Mary-Ann Baldwin said it was necessary to protect estab- Wilmington’s controversial annex- s times get tougher for brick-and-mortar restau- lished restaurants from competition and to keep the streets ation of the Monkey Junction com- rants, mobile food vendors are taking center stage looking neat and tidy. munity, the city is looking to take in several large cities around the country. “You want to balance what’s good for the entrepre- in additional areas in the coming AFood carts and food trucks have pushed through the neur with what’s good for your restaurant owners,” Bald- years. Two communities also are recession in Portland and San Francisco, and this summer win said. “You don’t want to hurt them and put them out of considering incorporating, in part they were making their way south — to Nashville, Atlanta, business. They’ve made a huge investment.” to avoid being absorbed by Wilm- and Miami — as entrepreneurs struggle to create their own Instead of the rule that keeps pushcarts from locating ington in the future, reports the jobs. near restaurants selling the same food, Baldwin said she’d Wilmington Star-News. In North Carolina, Durham has a vibrant food truck like to see a rule that keeps them away from all restaurants, Wilmington officials have scene, which re- no matter what developed a comprehensive an- cently gained at- nexation plan for 10 areas with a kind of food they current combined population of tention from the sell. 27,000 that the city may annex in Food Network The way the the coming years. City council ap- cable channel. Its ordinance is writ- proval is needed to begin the an- series “The Great ten now, Baldwin nexation process for each area. Food Truck Race,” said, “people can The communities of Castle featuring mobile go into a sports Hayne and The Cape, meanwhile, chefs from around bar, drink a cou- are considering incorporating. the country, re- ple of beers, go Wilmington’s intentions have fac- cently completed outside and get a tored in each community’s think- its first season. hot dog and then ing. The Cape is within five miles In Septem- come back in, in- of Wilmington, which under state ber, viewers voted stead of buying law requires consent from the on the network’s bar food.” city before incorporation can oc- website to choose “You can cur. The proposed boundaries one truck to com- imagine if you for Castle Hayne are designed to pete in the second were a restau- avoid placing it within five miles season. Durham’s rant owner who of Wilmington. Only Burger — a was paying a lot mobile hamburg- more in taxes, and Cumberland backs hotel er stand — led for you have a hot much of the com- dog vendor out- The Cumberland County petition, but in the side your door, Commission approved $10.5 mil- end did not finish you’re not going lion in financing for a hotel and first. to be happy about restaurant in Spring Lake. The ap- But the that,” she said. proval comes despite the develop- “street food” The second er having little of his own money at scene hasn’t ar- reason for limit- risk, notes the Fayetteville Observer. rived in a big way ing the number of The developer of the 108- in Raleigh, where Carol Passley, who owns a hot dog stand that she operates on the Fayetteville Street mobile vendors Mall in Raleigh, prepares a hot dog for a customer. (CJ photo by Sara Burrows) room Candlewood Suites hotel city council mem- in downtown Ra- and an adjoining IHOP restau- bers fear it would leigh is purely aes- rant is Bragg Hospitality LLC. The hurt local restaurants and just wouldn’t “look right.” thetic, said Baldwin. company will invest $600,000 of its Other than a couple of snow cone carts and coolers full “We want things to look good,” she said. “We don’t own money into the project. About of prepackaged ice cream, only a handful of hot dog stands want people driving out on — as [Councilman] Thomas $9 million in financing will come dot the sparsely populated streets of downtown Raleigh. Crowder put it in our meeting — beat-up golf carts selling from federal stimulus bonds. Behind the streetscape is a series of rules and regula- T-shirts.” “Is it standard policy that 6 tions. Crowder is one of two architects on the council who percent of equity is acceptable on a Baldwin said “take a lot of interest in design and aesthetics.” project like this?” asked Commis- State laws and city ordinances sioner Jimmy Keefe. Removing the cap on pushcarts would allow them to County Attorney Rick A Department of Environment and Natural Resources pile “on top of each other,” Baldwin said. Moorefield responded that there rule adopted in 1980 dictates, “Only hot dogs shall be pre- “It could limit connectivity,” she said, making it dif- was no standard for such projects. pared, handled, or served from a pushcart.” ficult for people to walk or ride their bikes. Keefe voted in favor of the financ- Aside from hot dogs, only prepackaged food from ap- Michael Sanera, director of research and local govern- ing. proved restaurants may be sold. ment studies at the John Locke Foundation, has a different Bob Stafford, who formed State law allows a greater variety of food to be pre- vision for downtown Raleigh. Bragg Hospitality with a local non- pared and sold from food trucks, but trucks are more expen- He pointed to an iconic 100-year-old photograph of profit, justified the use of govern- sive and more heavily regulated than food carts. farmers, merchants, and grocers selling their wares from ment financing to build the hotel Even if a business owner could afford the extra cost of shoddy carts and wagons in the streets of Manhattan. and restaurant. a truck, he wouldn’t be welcome in Raleigh. “It’s the most beautiful picture I’ve ever seen,” Sanera “I’m pretty much a conven- While some cities allow food trucks to park in metered said. “It shows hundreds of people making a living with tional guy,” he stated. “You go to spaces or designate a downtown lot for them, food trucks in very little capital investment and satisfying customers who the bank, you borrow the money, Raleigh can operate only on commercially zoned land, with are willingly buying their products.” get the job done, and pay the mon- a permit, for up to 20 days. “In my humble opinion, that’s the way Fayetteville ey back. It’s a pretty simple story. A limited number — two per block — of nonmotor- Street should look like,” he said. But the financing out there in to- ized pushcarts are permitted to set up on city sidewalks, but He said if Raleigh wants to promote business in a day’s market is not there, as it has they cannot locate near a restaurant selling similar food, and down economy, it must leave entrepreneurs alone, no mat- been in the past.” CJ they must be of a certain dimension, weight, and material. ter how ugly or crowded their carts. CJ OCTOBER 2010 | CAROLINA JOURNAL PAGE 11 Local Government

N.C. High Court Says Time Credit COMMENTARY Doesn’t Count For Some Lifers Tax Subsidies By Michael Lowrey U.S. Supreme Court held that if prison- Associate Editor ers are awarded good time by the state, For Stock Cars RALEIGH they have a constitutionally protected n an Aug. 27 ruling, the N.C. Su- “liberty interest” in the credits which t seemed like a good idea at lotte’s problem, not NASCAR’s. preme Court held that convicts sen- cannot be “arbitrarily abrogated.” In the time. In 2006, NASCAR That’s exactly what is hap- tenced to “life” terms from 1974 to Jones’ case, the N.C. Supreme Court wanted to create a hall of fame pening. Tax receipts were not suf- 1978I — when state law defined a life found such interests of little impor- Ito commemorate its greats. What ficient to issue bonds to cover all sentence as 80 years — cannot count tance. place would be more natural than the building costs, so the Charlotte good-time credits toward their release. Chief Justice Sarah Parker and Charlotte, which hosts two regular Regional Visitors Authority, which The decision is expected to keep scores Justice Mark Martin joined in Ed- NASCAR races plus an all-star manages the hall, had to borrow of offenders behind bars, at least for munds’ opinion. Justice Paul Newby race every year, and where most from banks and the city directly. wrote a concurring opinion in which now. NASCAR teams are headquar- The loans are supposed to be Critics of the majority’s ruling — Justice Edward Brady joined, making tered? And how could hosting repaid by money generated from including the two dissenting justices much the same arguments. — say the decision overrides the clear Justices Robin Hudson and Pa- such a facility be anything but a NASCAR Hall of Fame sponsor- intent of the General Assembly in set- tricia Timmons-Goodson strongly dis- giant economic checkered flag for ships — after NASCAR gets its cut, ting sentencing policy and may well sented from the majority holding. Charlotte? of course. But sponsor- violate the due process rights of pris- “The rule of law, consistency, and To be sure, the city ship support also has oners. fundamental fair- put together a proposal to lagged. Alford Jones ness are not ad- lure the NASCAR Hall of While the slow was convicted of The North Carolina Courts vanced by today’s Fame, beating out Atlan- economy has hurt tour- first-degree mur- decision allowing ta, Kansas City, Mo., and ism in general, NASCAR der in 1975. Af- the Department of Correction to Daytona Beach, Fla., for is not as popular as it ter his original the attraction. Unfortu- was just a few years ago, death sentence withhold inmate nately for the Queen City, especially among young- was overturned, Alford Jones’s ac- he was sentenced cumulated sen- however, the NASCAR er audiences. Television to life in prison. tence reduction Hall of Fame isn’t devel- MICHAEL viewership is down, and From April 8, credits,” wrote oping the horsepower LOWREY there are empty seats 1974, to June 30, Timmons-Good- that had been envisioned. at most races. Fewer 1978, the General son. City officials had fans translate into fewer Assembly defined a life sentence in “This decision violates the DOC’s projected that 800,000 potential visitors to the own regulations and policies, Jones’s North Carolina as a prison term of 80 people would visit the museum sport’s hall of fame. years. constitutional rights, and the doctrine of separation of powers.” between its May 2010 opening and So much of what passes for In November 2009, Jones filed a June 30, 2011. The facility’s budget “economic development” these petition for a writ of habeas corpus, In Timmons-Goodson’s view, wasn’t quite that optimistic — it days is based on a simple belief contending that he should be released the General Assembly, by defining a for prison immediately as his sen- life term as 80 years, clearly intended presumed the facility would attract that if a community builds attrac- tence had been served in full. Through for prisoners like Jones to earn credits. a mere 575,000 visitors in its first tions, tourists will come and spend Wolff, meanwhile, requires a process Nov. 30, 2009, Jones had been credited year of operation and $4 million a their hard-earned dollars. for revoking the credits, and the DOC with a total of 17,932 days — over 49 year after that. The NASCAR Hall of Fame had provided none. years — of good-time, gain-time, and Actual attendance through highlights several problems with “DOC regulations involving sen- merit-time credits. In his habeas cor- the hall’s first 90 days of operation this approach. Building and operat- tence reduction credits are not minor,” pus petition, Jones argued that these she wrote. “Whether an inmate has ful- was much lower — 102,731. That ing a tourist attraction involves credits should be applied to reduce ly served his sentence and is entitled to would amount to roughly 410,000 entrepreneurship, something gov- the amount of time he should serve in release from imprisonment is a ques- over the first year if attendance ernment is remarkably bad at. The prison. tion deeply implicating fundamental were stable year-round. Sports hall exists to promote a for-profit After a Superior Court judge constitutional rights. The majority as- halls of fame typical draw best business, leaving the municipality ruled in favor of Jones, the state asked serts that Jones’s liberty interest in his over the summer, so it’s likely that that builds and runs the facility the N.C. Supreme Court to consider sentence reduction credits is ‘de mini- the NASCAR Hall of Fame’s actual reduced to the role of a backseat the matter. mis’ and that the State may ‘control the Before the high court, the state ar- attendance will be less than 400,000 passenger, unable to influence the contours of the liberty interest it cre- its first year, or a third lower than image of the brand it’s promoting. gued that Jones’ good-time, gain-time, ates.’ The majority cites no authority projections. The attendance projections and merit-time credits should not be for this pronouncement.” counted toward his release date. John Locke Foundation legal an- From the city’s perspective, for the hall are unrealistic in this “We conclude that the limitations alyst Daren Bakst sees the decision as the structure of the deal is prob- economy and may very well imposed by [the Department of Cor- an example of the court doing what is lematic. Essentially, Charlotte is a have been optimistic in any case. rection] on those credits are statuto- popular rather than following the law. franchisee, paying NASCAR royal- The visitors authority may have rily and constitutionally permissible,” “I believe in the election of judg- ties for the use of its brand. As a re- enough reserves to cover the hall’s wrote Justice Robert Edmunds for the es, but this case gives those who be- sult, the city rather than the racing potential shortfall for a while. But majority. lieve in judicial appointments a strong organization bears all the financial the hall’s overall economic per- The DOC argued that, in the argument,” said Bakst. risk for the museum’s success. formance has disappointed. That event the governor commuted Jones’ “While prisoners do have less Charlotte built and operates the is especially problematic, as the sentence to something other than life, constitutional protections than other museum, with construction costs to higher hotel/motel taxes that fund Jones could use the credits he had ac- citizens, this doesn’t mean the state cumulated. can constitutionally extend prison sen- be paid with a 2 percentage-point the hall tend to discourage tourists But if his sentence were not com- tences after the fact,” he added. “Be- increase in Mecklenburg County’s from visiting Charlotte in the first muted, the credits should not be ap- cause the state realizes its mistake now hotel/motel tax. place. CJ plied. doesn’t justify violating the due pro- If construction costs went There are, however, limits on the cess rights of these prisoners.” over budget, or attendance lagged Michael Lowrey is an associate DOC’s leeway in applying credits. In The case is Jones v. Keller, behind projections, that was Char- editor of Carolina Journal. the 1974 case Wolff v. McDonnell, the (518PA09-1). CJ PAGE 12 OCTOBER 2010 | CAROLINA JOURNAL Local Government Local Innovation Bulletin Board Raleigh Grapples With Rail Plan

By Michael Lowrey In August, the U.S. Army Corps Traumatic Injuries Associate Editor of Engineers approved the project. The RALEIGH partners hope to have the sewage treat- new study shows a dramatic pays the entire cost of health insur- he Raleigh City Council has ment plant operating by 2013. difference in the survival ance, which includes coverage for an asked the N.C. Department of “The Corps had a three-year ex- rates for those severely in- officer’s family. Transportation to look at de- haustive study on all the issues that juredA in automobile accidents and Indeed, Oakland’s police re- Tveloping additional alternatives for were relevant,” said Apex Mayor Keith other traumatic events. From this, it cruiting website states its benefits higher-speed rail service into Raleigh Weatherly, chairman of the Western reasons that emergency health care are the best of any of California’s 10 from Richmond. The move comes, the Wake Partners Policy Advisory Com- could be better in at least some com- largest cities. If Oakland were only Raleigh News & Observer reports, after mittee. “The concerns of the good munities. as generous as San Francisco, where intense opposition from residents who people of New Hill were taken into ac- The paper “Severe Traumatic total police department compensa- live along the count during the public comment ses- Injury: Regional Variation in Inci- tion averages “only” $145,000, it route favored by sions, and I think dence and Outcome,” which was could afford to add cops, not elimi- city staff. the Corps made published in the July 2010 edition of nate them. At issue Cherokee the right deci- Annals of Surgery, looks at the out- Reducing compensation in is how to route sion.” comes of severely injured patients Oakland would require the approv- the trains along The South- in nine cities in the U.S. and Canada al of its police officer’s union. The Capital Boule- to ern Coalition for from April 1, 2006, to March 31, 2007. union was willing to accept having vard. A Norfolk Social Justice, The areas surveyed had a combined members be responsible for some Southern rail meanwhile, has population of 20.5 million. contributions for their pensions but yard is on the filed a protest of All told, 7,080 individuals suf- only in exchange for a three-year no- Currituck west side of the the state’s issu- fered severe traumatic injuries in layoff promise. The city was willing road, while a ance of environ- the survey area over the period. The only to accept a one-year guarantee, CSX rail yard is on the east side. City mental permits for the sewage treat- median age of those injured was 36, thus no deal was reached, and the ment plant. and two-thirds were male. Just un- layoffs occurred. staff had favored routing the passenger trains through the Norfolk Southern “We have been willing to host der 1,000 patients were pronounced “What’s going on in Oakland is the Partners’ sewage treatment plant dead at the scene; 5,857 patients an example of a phenomenon being yard, but city council did not back that so long as it was not in the middle of were transported to hospitals. Of seen across the country: states and option after residents in the adjacent our community, but the Partners won’t them, 4,477 — 63.2 percent — were cities choosing between providing Five Points neighborhood expressed meet us halfway,” said the Rev. James discharged alive. Survival rates services to the public or maintaining their concerns about train noise and E. Clanton, pastor of First Baptist ranged widely between communi- luxury compensation for public em- vibrations. Church in New Hill and a community ties, from a high of 80.8 percent in ployees,” says Barro. The city now is asking DOT to ex- leader. Toronto to a low of 39.8 percent in “More often than not, public amine whether the passenger rail line Vancouver. Large local variations in employee unions have been winning could run on bridges parallel to Capi- Mecklenburg oversight survival rates also existed across dif- this fight, forcing service cutbacks.” tal Boulevard or cross over the road via ferent traumatic injury types. a bridge. City council also voted to ask A federal agency has recom- “It’s alarming to see these dif- Norfolk Southern to move its rail yard mended that Mecklenburg County im- ferences,” said Dr. Roger Hartl, an Teams gone, taxpayers owe out of the city if the passenger trains mediately suspend a contract with a expert in brain injuries at Weill Cor- The National Football League’s ultimately use its tracks. nonprofit agency. The move comes af- nell Medical College in New York New York Giants and New York Jets “We’re not going anywhere,” said ter the county had failed to oversee ad- City, to Reuters. recently moved into a new privately Durwood Laughinghouse, Norfolk equately $1.7 million in federal funds “I’m sure part of this may be financed stadium in East Ruther- Southern’s vice president for govern- that went to the nonprofit, reports the due to inadequate treatment, but it ford, N.J. The two teams’ former ment relations in North Carolina. “We Charlotte Observer. is hard to say anything else at this home, publicly owned Giants Sta- just cannot locate outside this area, and Over the past two years, Meck- point.” dium, was torn down, with the site that’s been our position all along. lenburg County has obtained federal Hartl, who was not involved in now serving as a parking lot for the “It looks like they were trying funds for its Shelter Plus Care pro- the study, noted that standardization new arena. Though the stadium is to satisfy everybody with everything, gram, which helps pay for housing and of treatment for cases of brain injury gone, New Jersey taxpayers are still instead of taking a real position on the other assistance for over 200 homeless had halved the death rate from that on the hook for $110 million in debt future.” individuals who have HIV/AIDS, suf- injury. for the facility, reports The New York fer mental illnesses, or are addicts. The Times. New Hill sewage plant county hired Mecklenburg Open Door Oakland police officer pay Giants Stadium is far from In 2004, four Wake County towns to administer the program. A federal the only instance in which taxpay- formed a consortium to build a new audit found that the nonprofit had In July, Oakland, Calif., laid off ers remain on the hook for debt af- sewage treatment plant. Now plans for failed to document properly the work 80 police officers, or about 10 - per ter teams have moved, though it is the $327 million facility are being chal- it had performed, something the coun- cent of its police force. City officials the most egregious example. King lenged by a civil rights group, which ty officials overseeing the nonprofit claimed they could no longer afford County, Wash., which includes Se- contends the location of the facility in had failed to notice or correct. to pay the officers. That’s correct, attle, still owes $80 million on the the unincorporated New Hill commu- Auditors from the Department of writes Josh Barro of the Manhattan Kingdome, which was torn down a nity would have a disproportionate Housing and Urban Development now Institute, but only because of the as- decade ago. Indianapolis and Phila- impact on low-income and African- plan to spend several weeks poring toundingly generous pay that Oak- delphia also owe for sports facilities American residents, reports the Ra- over the program’s books. The county land police officers receive. that no longer exist, while residents leigh News & Observer. could face fines of up to $500,000. One The average Oakland Police of Kansas City, Mo., Memphis, Pitts- The Western Wake Partners are county employee has been fired and Department employee’s total com- burgh, and Houston are still paying another reprimanded since the lack of pensation package is $162,000 per off debt on arenas and stadiums they Cary, Apex, Morrisville, and Holly year. The generosity begins with built for teams that have departed. Springs. They agreed to build a new oversight was discovered. The county police recruits, who earn $64,656 a “Stadiums are sold as enor- sewage treatment plant to satisfy a is also in the process of severing all ties year plus benefits, or $20,000 a year mous draws for events, but the state mandate regarding the return of to Mecklenburg Open Door. more than police cadets in New York economics are clear that they aren’t treated wastewater to the Cape Fear “The county’s inability to manage City. And pay in Oakland only goes helping,” said Andrew Moylan of River Basin. The proposed facility also this is related to the fact that we don’t up from there. In addition, the city the National Taxpayers Union. CJ would allow for additional growth in know the [housing] business,” said the towns. County Commissioner Bill James. CJ OCTOBER 2010 | CAROLINA JOURNAL PAGE 13 Local Government Yard Parking Ordinance Would Replace Grass With Concrete Landlords say plan would increase rent to student tenants By Sara Burrows Associate Editor RALEIGH he Raleigh City Council is con- sidering an ordinance that would amend current zoning regula- tionsT so that residents could no longer park on grass, dirt, or loose gravel in their own front yards. Property-rights lawyers say the proposal could be an unconstitutional taking of private property. Landown- ers with rental properties that cater to college students say the ordinance would force them to pay for costly ren- ovations, making rent too expensive for current tenants. Meantime, home- Raleigh’s effort to prohibit yard parking, such as shown at this house on Kent Road, has resulted in a classic standoff among owners living near Raleigh’s campuses city planners, landlords, student tenants, and property-rights advocates. (Photo provided by Jerome Goldberg) say the ordinance would clean up clut- • Parking pads must be sur- Crowder, who lives near N.C. State tution; it prohibits uncompensated tered properties in mature neighbor- rounded with vegetative screening. University, wrote the ordinance more takings of private property for public hoods. “Homeowners who cannot afford than a year ago to appease constituents uses. It’s a scuffle over property rights, to retrofit driveways or parking- ar who complained the front-yard park- “If they pass a zoning law that aesthetics, and the appropriate role eas to the new construction standards ing was trashy and brought down the prohibits you from using your proper- of land-use regulation that has led to would be restricted to single-file park- value of their homes. ty in a way that you’ve always been us- tense moments at public hearings in ing in front of the residence’s driveway Jerome Goldberg owns five rental ing your property, that can be a taking the capital city. curb cut,” the city’s website states. homes near the N.C. State campus. It’s of property that the government owes The ordinance would give all But single-file street parking not uncommon for three or four stu- you just compensation for,” he said. owners of single-family homes one would not be an option for homeown- dents to rent a single-family house in To avoid taking property, Sande- year to construct driveways meeting ers who live on thoroughfares that ban the neighborhood, or for one or more fur said, cities usually “grandfather in” the following standards: of them to park on the lawn. pre-existing uses when they change • Driveways must be made of it — such as Creedmoor and Leesville roads. And some neighborhoods re- The wooded front yards of Gold- land-use rules. nonerodible surfaces of concrete or berg’s properties have only partial When it comes to new develop- crushed stone, four inches deep, with quire residents to obtain permits to park on the street; the city issues per- driveways leading to hard-packed ment, however, “there are very few defined permanent borders. dirt parking areas. He complained at restrictions on zoning powers,” Sand- • They must be 12 feet wide and mits only for vehicles registered to ho- meowners, meaning tenants can’t get a Comprehensive Planning Commit- efur added. “Zoning intrudes heavily include a parking pad covering 425 tee meeting Sept. 15 that it would cost on private property rights,” he said. permits. square feet or 40 percent of the front $4,000 per property to build driveways “It’s about time we rethought the en- City Councilman Thomas yard, whichever is greater. that would meet the city’s standards. tire idea.” “It would take years to make that Homeowners associations pro- money back,” Goldberg said. “I’d have vide a private alternative, he said. They to raise the rent significantly.” give homebuyers the opportunity to Help us keep our presses rolling Higher rent would force his ten- enter voluntarily into covenant com- ants — students and minorities — to munities, where they have a voice in Publishing a newspaper is an ex- move, he said. what the neighborhood will look like. pensive proposition. Just ask the many He asked the committee to con- Zoning, on the other hand, can impose daily newspapers that are having trouble sider the elderly, some of whom had the will of a minority on the majority, making ends meet these days. been annexed to the city and had lived he said. It takes a large team of editors, re- for decades without driveways. “It responds to the noisiest con- porters, photographers and copy editors “People can’t afford this,” Gold- stituency,” he said. “People who like to bring you the aggressive investigative berg said. “We’re in a depression.” to tell their neighbors what to do with reporting you have become accustomed City Planning Director Mitch Sil- their property just go down to city to seeing in Carolina Journal each ver noted the ordinance would give council and get them to pass a zon- month. homeowners a year to save up and pay ing ordinance. Meanwhile, those of Putting their work on newsprint and for renovations. He also said people us who have lives are going about our then delivering it to more than 100,000 who couldn’t afford hiring a contrac- daily business.” readers each month puts a sizeable dent tor to pave their driveways could “do Committee members are now in the John Locke Foundation’s budget. it themselves.” studying the economic impact of a That’s why we’re asking you to help But the burden of compliance similar ordinance Greensboro passed defray those costs with a donation. Just shouldn’t fall on homeowners, said in 2008 before the issue goes to the full send a check to: Carolina Journal Fund, Tim Sandefur, a property-rights law- council for a vote. John Locke Foundation, 200 W. Morgan yer with Pacific Legal Institute in San “I don’t know if I could support St., Suite 200, Raleigh, NC 27601. Francisco. it at this point,” Councilman Bonner We thank you for your support. Sandefur says any backward- Gaylord said at the Sept. 15 commit- looking ordinance could violate the tee meeting. “There are too many un- John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 Fifth Amendment to the U.S. Consti- answered questions.” CJ PAGE 14 OCTOBER 2010 | CAROLINA JOURNAL From Page 1 Why Didn’t Perdue Campaign Use Cheaper State Plane? Continued from Page 1 make a contribution, but it was not to pay for air travel. He said he didn’t have contracted with and paid profes- know the amount of Fleming’s contri- sional charter services operating in ei- bution, didn’t handle Fleming’s check, ther the Raleigh-Durham area or New and assumed Fleming mailed it to the Bern, where Perdue and her husband Perdue committee. own homes. The Perdue campaign also re- Of nearly 100 flights in 2007 and ported that Ola Caldwell, Robert 2008 reported by the Perdue campaign Caldwell’s wife, made an in-kind con- committee, an investigation by Caro- tribution in the amount of $1,194.50 lina Journal concluded that roughly 80 for travel on Dec. 8. A spreadsheet re- were arranged in a similarly convolut- leased by the Perdue campaign ties the ed manner. in-kind donations reported from Flem- The Perdue campaign’s flight re- ing and Caldwell to the same flight. cords show that 20 she took in October Although it is not stated specifically, and November 2008 were paid for on the payment reported from Caldwell Dec. 16, 2008 — weeks or even months may be a separate payment to cover after they took place. State elections the costs of hiring a pilot and co-pilot law requires for the day. contributions Tate Johnson, the Perdue cam- and donations The state’s Beechcraft King Air, above, is identical to the private one chartered by paign staff member who signed Flem- be reported ing’s name to an in-kind donation within seven the Perdue gubernatorial campaign for $2,700 more than it would have cost to use the state’s King Air. (CJ photo by Don Carrington) form, is now director of Perdue’s East- days of their oc- produced confusing or vague answers. to a political committee for at least 20 ern Governor’s Office in New Bern. currence. The He told CJ he didn’t remember any flights were re- years, state elections records show. The barber’s flight This donation caught the atten- interaction with Fleming and didn’t ported several know who actually paid for the flight. weeks after CJ The Saturday, Dec. 8, 2007, flight tion of elections board investigators. Sheryll Harris interviewed Fleming in Johnson, currently a candidate for published its was arranged by Fulenwider Enter- the Lenoir County Board of Commis- Tate Johnson first news story prises, a business owned by Mike August, and he told her he could pro- duce a canceled check proving that he sioners, said he might have gotten the about illegal Fulenwider that operates several fast- information for the form from Fulen- campaign flights by then-Gov. Mike food franchises and other concerns. paid for the flight, but it has not yet been produced. wider. Easley. Fulenwider char- During a phone interview, Fulen- A report presented June 25 to the tered the flight During two phone interviews wider confirmed he had arranged the State Board of Elections by investigator from Profile Avia- flight, but, since he had already given Kim Strach mentioned an arrangement tion in Hickory. Fulenwider and in September, Fleming told CJ he the maximum contribution to the Per- led by campaign finance director Peter Fulenwid- his family gave due campaign, he couldn’t donate Reichard and longtime Perdue friend er and his fam- hadn’t located a copy of his check any more. He said he asked a friend Trawick “Buzzy” Stubbs to secure “air- ily gave a total $24,000 to the [Caldwell] to find someone to pay for craft providers” for the campaign. The of $24,000 to the but would look for it. On the third the flight. Fulenwider denied paying system raises questions about why the Perdue 2008 cam- 2008 Perdue for the flight in someone else’s name. phone interview, Perdue committee wasted campaign paign. He also is “It was billed to me, but I couldn’t campaign Fleming told CJ, “I resources, particularly when her cam- associated with pay for the thing because I was over am not going to get paign team had more traditional and q u e s t i o n a b l e $4,000. I had to find someone else to the check.” When less costly alternatives available. flights worth al- pay for it, or they would have to pay asked if he wrote a check to the Per- A supplemental report Strach pre- most $10,000. for it out of campaign funds,” he said. due campaign, he said, “Yes, I told you sented to the board Aug. 20 suggests James Fleming, a barber from Ola Caldwell told CJ she paid that.” that some in-kind donations for flights Morganton who was 65 years old at the something toward the flight, but If Fleming had written a check reported by the Perdue campaign are time, paid $3,048.50 to Profile Aviation couldn’t explain the details. “You to the Perdue campaign, his donation not accurate. Giving a donation in the for the use of the aircraft, according to need to talk with my husband,” she would not be an in-kind contribution. name of another is against the law. CJ the campaign. This was the only cam- said. When Robert Caldwell was first For Perdue campaign records to be ac- interviews with those involved also paign contribution Fleming had given reached by phone, he said, “I want you curate, Fleming would have had to pay all to quit calling me,” and then hung Profile Aviation for the flight, not the up. campaign. Both Fulenwider and Caldwell When asked who suggested he are Perdue appointees, Fulenwider pay for the flight, Fleming said, “Well to the state Economic Development she [Perdue] was up here one Wednes- Board, and Caldwell to the community day campaigning. She was in Morgan- college’s board of trustees. ton.” He would not provide any more The Department of Commerce details. charged different rates for the state Strach’s report indicates that King Air, depending on its use. For Fleming was involved in the transac- official business, the lieutenant gover- tion through Robert Caldwell, chair- nor’s office would pay $560 per hour, a man of the Board of Trustees of West- rate that included fuel and pilots. The ern Piedmont Community College in plane also could have been used for Morganton. The report says Fleming political purposes at a rate of $825 per believed he wrote a check from his hour, but Perdue’s campaign commit- business account, and that he had been tee would have been responsible for asked Caldwell to make a contribu- the bill. tion. Fleming said he gave his check to On Oct. 3-5, 2008, Easley used The State Elections Board, shown here in the recent session on Perdue’s campaign Caldwell. the plane to travel to the Vance-Aycock flights, did not question why the campaign used convoluted and more-expensive When interviewed by Harris, flights when the state plane was available for less. (CJ photo by Don Carrington) Caldwell said he asked Fleming to Continued as ‘Why,’ on Page 15 OCTOBER 2010 | CAROLINA JOURNAL PAGE 15 From Page 1 Many Flight Donors Not Questioned by Elections Board Continued from Page 1 Carolina’s elections and is required to investigate anything with the appear- ployees to make donations to political ance of fraud and irregularity. The campaigns; board selects an executive director who • Cameron McRae, a Bojangles oversees a staff of about 60 people. franchisee and aircraft owner from The members are selected by Kinston; the governor from a list of five nomi- • Dell Murphy, a Duplin county nees submitted by the Republican and hog farmer and aircraft owner. Democratic state party chairmen. The Over the past two years, the governor cannot select more than three Perdue campaign paid nearly $60,000 members from the same political party. directly to individuals who provided The board chooses one of its members 42 free flights. At its Aug. 23 meeting, as chairman and another as secretary. the board fined the Perdue committee Members of the board wishing to $30,000 for not reporting the flights interview additional witnesses regard- in a timely manner. The board also ing campaign flights would not need concluded that it found “no intent of majority support to move forward. wrongdoing” by the Perdue campaign. While the chairman is empow- The board also has not taken ered to “administer oaths, issues sub- sworn testimony from a number of McQueen Campbell testifies before last year’s State Board of Elections hearing on poenas, summon witnesses, and com- providers or arrangers of flights for the former Gov. Mike Easley’s use of aircraft. (CJ file photo) Perdue campaign, including: pel the production of papers, books, • Mike Fulenwider, a business- New Bern, a law partner of Perdue’s Leake said he was familiar with the records, and other evidence,” the law man from Morganton; late first husband; situation “only to the extent of hav- also allows two or more members to • James Fleming, a barber in • Peter Reichard, a Greensboro ing read about it two days prior to the request that the chairman issue sub- Morganton; businessman and finance director of meeting.” Asked if the board would poenas for designated witnesses and • Robert Caldwell, chairman of the Perdue and Easley campaigns; take up the issue in the future, Leake documents. If the chairman fails to act, the Board of Trustees of Western Pied- • Terence McEnally III, a Raleigh said, “The board is always continuing two or more members may issue the mont Community College in Morgan- attorney; and to inquire.” subpoenas and request the documents. Leake told CJ that he was aware ton; • McQueen Campbell. Subpoena powers • Ola Caldwell and Robert Noyes As for the Dec. 8, 2007, campaign of the provision, but said it had nev- III of Morganton; flight arranged by Fulenwider and The five-member elections board er been used during his time on the • Trawick “Buzzy” Stubbs of paid for by Fleming and Ola Caldwell, has general supervision over North board. CJ Why Didn’t Perdue Rent State’s Cheaper Aircraft? Continued from Page 14 the flight occurred, the Perdue cam- Buzzy Stubbs to obtain aircraft provid- providers might have been out of com- paign recorded it as a $3,542 in-kind ers for the Perdue Committee flights,” pliance with FAA rules for operating dinner, a Democratic Party political contribution from Robert Noyes III of the footnote said. Gardner Payne, a an air charter service without certifica- event in Asheville. His campaign paid Morganton, who was an employee of Raleigh attorney, was a fundraising tion. for the travel at the rate of $825 per Fulenwider Enterprises at the time. volunteer for the Perdue campaign. Companies or individuals run- hour. Like Fleming the barber, this was the That report also stated that Reich- ning air charter services are subject to The round-trip flight time from only political contribution public re- ard advised Stubbs on how to account stricter guidelines than those operat- RDU to Manteo is approximately 1.8 cords show Noyes had made. for nearly $30,000 in flights that Stubbs ing airplanes not for hire. Charter ser- hours, placing the cost of that trip at In a recent phone interview, Noy- paid for through his law firm prior to vices are required to obtain an Air Car- $1,485 rather than the $4,243 Perdue’s es told CJ that he paid for the flight. November 2008. rier Certificate from the FAA. Records flight cost. When asked why the payment was Perdue later appointed Reichard show that since 2003, Marvin Shearin Other Fulenwider support reported 39 days after the flight took to the state Economic Development of Rocky Mount provided flights to place, he said, “I have no idea.” When Board. At a recent board meeting, CJ Perdue at least seven times. He told CJ On Nov. 15, 2006, Fulenwider or asked who was holding the invoice, asked Reichard who was in charge of that he did not have an air carrier cer- his company paid $1,993 for a flight al- he said, “I am not sure.” When asked arranging flights for Perdue. “Every- tificate. lowing Perdue to travel from Chapel whom he paid, he was silent and then body and nobody was in charge,” he Raleigh attorney Terrance McE- Hill to Asheville, but records indicated hung up the phone. said. nally provided at least five flights to Reichard said he thought Perdue CJ the plane started and ended its trip in Assembling aircraft providers Perdue. When asked if he had an Hickory. That flight was one of the 42 was not allowed to use state aircraft air carrier certificate, he refused to an- flights the Perdue campaign didn’t dis- A footnote in the June 25 elec- for campaign functions. He said he swer and said, “I don’t want to be in- close to the elections board until this tions board report stated that Greens- thought all the flights now have been volved in this.” Responding to the re- year. The campaign didn’t reimburse boro businessman Reichard and New properly reported. “We went through porter’s comment that he was already Fulenwider for that flight until Janu- Bern attorney Stubbs assembled Per- an exhaustive process,” he said. Reich- involved, he said, “Watch me become ary 2010. due’s team of aircraft providers. Reich- ard acknowledged he knew Fulenwid- uninvolved,” and hung up the phone. Documents from the Perdue cam- ard served as finance director for the er, but had no information about the McQueen Campbell, who admit- paign show that Fulenwider also was Perdue campaign and also was finance flight involving Fleming. ted to providing numerous free flights associated with another convoluted director for Easley’s 2000 campaign for Other problems to the Easley campaign, also provided flight Oct. 11, 2007. That flight, which governor. Stubbs, a seasoned political four flights to the Perdue campaign in listed Fulenwider Enterprises as the donor who has reported 255 campaign CJ has identified 30 individuals 2008 through his companies Raleigh aircraft provider, was also in a char- contributions over the past two de- involved in illegal flights, suspicious Helicopter and Raleighwood Aviation. tered Beechcraft King Air. It originated cades, was a law partner with Perdue’s payment arrangements like Fleming’s, Records show he was paid for those in Hickory and then traveled to Chapel now deceased former husband. or significantly delayed payments to flights. A spokesman for the FAA told Hill, Concord, New Bern, and back to “According to [Gardner] Payne, the Perdue or Easley campaigns. CJ that neither of Campbell’s compa- Hickory. Governor Perdue advised him in 2006 Federal Aviation Administration nies had an air carrier certificate for On Nov. 19, 2007, 39 days after that Peter Reichard was working with officials also told CJ that some flight the aircraft he used to fly Perdue. CJ PAGE 16 OCTOBER 2010 | CAROLINA JOURNAL Interview Key State and Federal Races to Watch on November 2010 Ballot By David N. Bass KEY STATE RACES an angry encounter between Etheridge Associate Editor and two young men on a Washington, RALEIGH SENATE D.C., Ellmers lags badly in fundrais- ith national polls pointing to ing. She had just $41,955 on hand at the a tsunami of anti-incumbent District 8: David Redwine (D) vs. Bill Rabon (R) end of June, compared to $1.2 million sentiment, the disruption District 9: Jim Leutze (D) vs. Thom Goolsby (R) Etheridge had in his campaign kitty. alsoW can be felt at the state level as the District 10: Dewey Hudson (D) vs. Brent Jackson (R) District 19: Margaret Dickson (D) vs. Wesley Meredith (R) State contests general election season goes into the District 24: (Incumbent) Tony Foriest (D) vs. Rick Gunn (R) and Barry Coe (L) home stretch in the Tar Heel State. District 25: (Incumbent) Bill Purcell (D) vs. Jason Phibbs (R) To shrug off the mantle of perma- For months, pundits have com- District 43: Jim Long (D) vs. Kathy Harrington (R) nent minority, Republicans need a net pared this year’s midterm elections to District 45: (Incumbent) Steve Goss (D) vs. Dan Soucek (R) gain of nine seats in the state House 1994, when Republicans retook Con- District 47: (Incumbent) Joe Sam Queen (D) vs. Ralph Hise (R) District 50: (Incumbent) John Snow (D) vs. Jim Davis (R) and six in the state Senate. Aside from a gress and captured the North Carolina brief stint in the 1990s, the GOP hasn’t House for the first time in a century. In HOUSE controlled either chamber during the recent weeks, political prognosticators 20th or 21st centuries. have firmed up their predictions that District 3: (Incumbent) Alice Underhill (D) vs. Norman Sanderson (R) and Herb So- Political experts say that could an equivalent surge is in the mix for bel (L) change in November. It’ll be a good Nov. 2. District 4: Mott Blair (D) vs. Jimmy Dixon (R) year for Republicans at the state level Republicans need a net gain of 39 District 6: (Incumbent) Arthur Williams (D) vs. Bill Cook (R) since voters’ anger with federal elected seats in the U.S. House and 10 seats in District 9: (Incumbent) Marian McLawhorn (D) vs. Stan Larson (R) officials will filter down, Taylor said. District 10: (Incumbent) Van Braxton (D) vs. Stephen LaRoque (R) the U.S. Senate to take control. In mid- “It could well be the case that September, the Cook Political Report District 22: (Incumbent) William Brisson (D) vs. John Szoka (R) District 25: (Incumbent) Randy Stewart (D) vs. Jeff Collins (R) one or both chambers go Republican projected at least a 40-seat pickup for District 34: (Incumbent) Grier Martin (D) vs. Steve Henion (R) again,” he said. the GOP in the House, and seven to District 41: Chris Heagarty (D) vs. Tom Murry (R) Raleigh-based political consul- nine seats in the Senate. District 45: (Incumbent) Rick Glazier (D) vs. Jackie Warner (R) tant John Davis, the former director of In 1994, there was a pickup of District 49: (Incumbent) John May (D) vs. Glen Bradley (R) a pro-business nonprofit, says that eco- District 51: (Incumbent) Jimmy Love (D) vs. Mike Stone (R) 52 seats [for Republicans],” said N.C. nomic concerns are front and center for State University political science pro- District 77: (Incumbent) Lorene Coates (D) vs. Harry Warren (R) District 81: (Incumbent) Hugh Holliman (D) vs. Rayne Brown (R) voters this year. fessor Andy Taylor. “Democrats picked District 88: David Mundy (D) vs. Mark Hollo (R) “There is a tremendous amount up 31 in 2006. So, 40 for a wave election District 93: (Incumbent) Cullie Tarleton (D) vs. Jonathan Jordan (R) of money being spent [by the govern- in the modern era is doable. The pros- District 112: Jim Proctor (D) vs. Mike Hager (R) ment] and a tremendous amount of pects are certainly very possible for the District 116: (Incumbent) Jane Whilden (D) vs. Tim Moffitt (R) debt, and voters frankly do not see a Republicans at this point.” District 118: (Incumbent) Ray Rapp (D) vs. Sam Edwards (R) District 119: (Incumbent) Phil Haire (D) vs. Dodie Allen (R) change in their personal sense of peace The Democratic-aligned firm about their job stability,” Davis said. Public Policy Polling gives the GOP “Most people have jobs, but most peo- a 45-42 percent edge in a generic con- Johnson received national at- Pantano, a former Marine. Pantano ple are concerned about the long-term gressional ballot. The conservative tention Sept. 16 when he was named has a 46-45 percent lead in that race, stability.” Civitas Institute puts Republicans’ ad- one of 18 additions (and one of three according to a Civitas poll in late Sep- Unlike past elections, Democrats vantage on a generic legislative ballot Tar Heels) to the National Republican tember. haven’t outraised Republicans signifi- at 44-33 percent, the largest lead in the Congressional Committee’s “Young In the 2nd, seven-time incumbent cantly in campaign cash. In addition, group’s history of polling. Indepen- Guns” program. Democrat Bob Etheridge is facing a retirements in key districts long held dent and unaffiliated voters fuel that The Democratic Congressional surprise challenge from Sara Palin-en- by Democrats, mixed with good re- advantage. Campaign Committee reportedly is dorsed Republican Renee Ellmers. cruitment strategies by Republicans, Races tighten funneling $1.3 million into advertis- But although the race gained na- raise the chances that the majorities ing on Kissell’s behalf in the district. tional attention after video surfaced of will change hands. CJ The results of two U.S. House Johnson had raised just under a half- races in North Carolina — the 8th and million dollars by June 30 compared to 11th Congressional Districts — could Kissell’s $704,119, according to federal contribute to a Republican takeover. elections filings. The first race pits freshman in- In the 11th District, Democratic cumbent Democrat Larry Kissell two-termer Heath Shuler is facing off against former sports broadcaster Har- against political newcomer Jeff Miller, old Johnson. A Libertarian Party candi- who also is one of the GOP’s “Young date, Thomas Hill, is running as well. Guns.” A Civitas poll released in early A recent poll commissioned by August put the race at a dead heat. the Democratic Congressional Cam- Gibbs Knotts, a political science paign Committee gave Kissell a 48-34 professor at Western Carolina Univer- percent edge, but another internal sur- sity, said that Shuler has done a good vey from Johnson’s campaign put the job retaining support from the large advantage at just 39-34 percent. number of conservative Democrats in Poor unemployment numbers the district. in the district have dogged Kissell, “The sense is that Shuler has done although he’s managed to maintain an effective job since Obama has been a lead despite a host of controversial in office of distancing himself from a votes over the last 18 months that good number of Obama’s policies, and could have fueled even more trouble certainly the Democratic controlled with voters. House and Senate,” Knotts said. “I think Kissell has done a very Two other congressional races good job of constituent outreach and also are on pundits’ radar — the 7th availability to the citizens he serves,” and 2nd congressional districts. In the said Democratic strategist Brad Crone. first race, Democratic incumbent Mike “The politics are going to be heated, McIntyre is locked in a showdown and it’s going to be a dynamic race.” with Republican “Young Gun” Ilario OCTOBER 2010 | CAROLINA JOURNAL PAGE 17 Higher Education UNC System Administrators COMMENTARY Not Much Fret Over For-Profit Schools Of a Tuition Cap By Jane S. Shaw were the focus of the complaints. While Contributor they have expanded the market for our years ago, the UNC sys- does so by tying tuition increases RALEIGH higher education to underserved pop- tem established a 6.5 percent to changes in state appropriations: t may come as a surprise, but the ulations, especially working adults, cap on tuition increases. At The less money the legislature University of North Carolina sys- they have draw a lot of fire nationally, theF Board of Governors meeting provides the universities, the more tem is not just a group of educa- especially from officials at more estab- Aug.12, university system officials money the universities can raise tionalI institutions, it is also a licensing lished schools. hailed that cap as an outstanding through higher tuition. agency. It determines whether non- Some critics think that the very public schools, including for-profit fact that a school seeks profit taints success and introduced a proposal The committee established a schools, may operate in the state. it. But more specific criticisms have to update it. But there is a problem threshold by adding the historical Last month, several officials emerged. Congress’ Government Ac- with that self-congratulatory analy- averages of tuition increases and complained that UNC is licensing col- countability Office found unethical sis: This year’s tuition increases for appropriations. Between 1971 — leges that compete directly with UNC recruitment tactics and misrepresen- resident undergraduates averaged the final year before all the public schools. At a committee meeting of tation at 16 for-profit schools—and 23.1 percent throughout the UNC colleges in North Carolina were the UNC Board of U.S. Sen. Thomas system. And most of the increase consolidated into one system — Governors, a tech- Harkin, D-Iowa, — at N.C. State University it was and 2005, the system averaged a nical report about harangued the in- $750 out of a total of $900 — was 6.0 percent annual increase in ap- the process ignited UNC system dustry in highly an emotional dis- publicized hear- imposed only six weeks before the propriations and an annual tuition cussion. schools worry ings. Other crit- start of school, forcing increase of 6.5 percent. James An- ics point to the many students to scram- Therefore, the threshold derson, chancel- that for-profit schools’ heavy re- ble for extra money. is 12.5 percent. lor of Fayetteville schools with liance on federal With such big in- In this new scheme, State University, funds. creases fresh on people’s the annual tuition cap said that his uni- greater marketing Given the minds, they should have increase will be calcu- versity is “getting prevailing atti- been an important fea- lated by subtracting the killed” by com- budgets are luring tudes about for- ture of the tuition policy increase in appropriations petition from for- profits, the animus discussion at the meet- from the 12.5 percent profits. Charles students away against them at Nelms, chancellor the UNC Board of ing. Yet UNC officials JAY threshold. In other words, of North Carolina Governors com- glossed over them. Jeff SCHALIN in a historically aver- Central Univer- mittee meeting Davies, the UNC sys- age year, the 6 percent sity, said that there is “no way we can is not surprising. Fayetteville State’s tem’s chief of staff, said increase in appropria- compete” with their marketing power. Anderson said his school is losing po- that “since 2006, we set tions will be subtracted A member of the committee expressed tential students to for-profits, which tuition in accordance with the plan. from 12.5 percent, resulting in a chagrin that the state has allowed a advertise constantly on the airwaves … Students had predictability and tuition cap of 6.5 percent. However, private, for-profit law school (Char- — while Fayetteville State has had to affordability.” tuition increases will be limited to lotte Law School) to be established, cut its marketing budget. But if the intent was to make 10 percent or less, even if the state’s and another said that if the for-profits He explained that for-profit can’t get their graduation rates up, the schools are recruiting the same non- things predictable and affordable appropriations increase is less than state should “jerk their license.” traditional students who attend his- so that students and their families 2.5 percent. Thus, the discussion had two ma- torically black colleges and universi- could plan and prepare, jerking This proposal almost guaran- jor themes: One was that the for-profits ties and UNC-Pembroke. He also said up tuition 20 percent or more at tees substantial annual increases in are taking away business from UNC that many of these potential students the last minute does not sound revenues to the system. It essen- schools; the other, that some of them are “not sophisticated enough to look like a resounding success. Drastic tially eliminates the possibility of are not providing a quality education. at programs and compare.” They may increases at the last minute hurt occasional budget reductions that The Board of Governors formed a com- end up paying “three times the cost” of the students least able to deal with can force the system to discover mittee to review the state’s licensure of public university tuition. And the for- such changes — the ones who are and reduce waste. those institutions. profits’ graduation rates for students North Carolina has been licens- of color are “miserable.” neither wealthy nor eligible for So what does this portend for ing post-secondary schools since 1923, The discussion, while heated, large amounts of financial aid. the near future? For one thing, with presumably to make sure that they was brief. Two possible directions In fact, when it comes to the economy still in the doldrums are providing a quality education. In emerged. One would be the imposition predictability, no tuition cap is and the November elections likely 1972, when the university system was of tough restrictions on these schools. preferable to an administration to produce a more frugal legis- consolidated, the system was given But there is already some evidence that that arbitrarily ignores the cap in lature, state appropriations will the licensing responsibility, and it has UNC’s scrutiny has been strict: North place. At least when there is no continue to be low, and students been licensing private post-secondary Carolina’s 26 licensed postsecondary cap, students and their families should be prepared to fork over schools ever since. Currently, 26 non- schools compare with an average of can expect a surprise. Now that significant tuition increases in the 8 public schools are licensed in the state. 64 among seven other southeastern Fourteen are for-profit colleges; 12 are states. (Florida has 133; South Carolina the system is exploring a second percent to 10 percent range for the nonprofit. has 26, the same as North Carolina.) version of the policy, the first step foreseeable future. UNC does not license all “non- The other idea is that the schools should be to ask what is the point Unless, of course, the system public” schools — Duke or Wake For- in the UNC system should compete of announcing a cap if officials will again ignores the tuition cap because est, for example, are not licensed. All more vigorously. Which direction the cast it aside whenever the economy it’s not satisfied with what it gets colleges operating in North Carolina Board of Governors takes will be de- makes it expedient to do so. from the legislature. CJ in 1972 were “grandfathered in” when termined in the months ahead. CJ The new policy proposal, UNC took over the job. In addition, created by a committee of campus strictly religious schools are exempt administrators, serves the purpose Jay Schalin is senior writer for from licensure, as are schools that op- Jane S. Shaw is president of the John of administrators by smoothing the John W. Pope Center for Higher erate solely on military property. W. Pope Center for Higher Education Pol- At the meeting, for-profit schools icy (popecenter.org). out their revenue expectations. It Education Policy (popecenter.org). PAGE 18 OCTOBER 2010 | CAROLINA JOURNAL Higher Education Campus Briefs Ethics Issues Surround UNC-TV’s Alcoa Stories olin Beavan, better known as “No Impact Man,” de- By Rick Henderson livered the Synergy Com- Managing Editor monC Reading Keynote Address to RALEIGH a sold-out audience at the Univer- t may be a coincidence, but an unusual interpretation sity of North Carolina at Wilm- of the state’s ethics law may have saved Raleigh attor- ington Sept. 20. Beavan earned ney and lobbyist Bruce Thompson from potential ethical his moniker when, in 2006, he peril.I It’s the latest twist involving UNC-TV — an agency of launched a yearlong experiment state government — and the network’s compromised cover- in which he, his wife, his 2-year- age of what became known as “The Alcoa Story.” old daughter, and his dog went Ethics watchdogs say UNC-TV’s conflicting roles as “off the grid” and attempted to both a journalistic enterprise and an arm of state govern- live in New York City with as lit- ment led to an ethical muddle for Thompson. One of his lob- tle environmental impact as pos- bying clients is Stanly County, which spearheaded efforts by sible. the state to take over Alcoa property via legislation, but he Stanly County lobbyist and former UNC-TV board member Bruce At the end of his experi- also was a member of UNC-TV’s board, which oversees the Thomspon, making a presentation on water quality at Badin ment, he wrote No Impact Man: network’s programming and fundraising. Lake before the Senate Judiciary II Committee’s hearing on the The Adventures of a Guilty Liberal Further, he corresponded by e-mail roughly two doz- Alcoa takeover bill Aug. 5, 2009. (CJ photo by Don Carrington) Who Attempts to Save the Planet, en times with UNC-TV legislative reporter Eszter Vajda be- and the Discoveries He Makes About tween August 2009 and April 2010, when she was covering network’s independence as a news-gathering organization Himself and Our Way of Life in the the Alcoa controversy. Thompson resigned from the board by caving to the wishes of the General Assembly. Process, which was chosen by Sept. 7. First Amendment attorney John Bussian, who repre- UNCW as this year’s freshman sents the North Carolina Press Association, said UNC-TV reading. UNC-TV not covered by ethics law should have claimed an exemption from the General As- sembly’s demand for materials under the state’s press shield According to university Normally this might present conflict-of-interest issues spokeswoman Dana Fischetti, law. By capitulating to the legislature’s orders, he said, the under the state’s ethics law, but UNC-TV is not covered by station left itself vulnerable to future document raids by the the university chose the book the law. In December 2009, Gov. Bev Perdue issued an ex- because it would “get students government. ecutive order adding 15 state advisory boards, including the During the dustup over UNC-TV’s Alcoa coverage, talking about issues and spark North Carolina Film Council and the Economic Develop- passionate discussions of an in- “everyone assumed this is a public agency, but its board ment Board, to the group of public agencies and policymak- isn’t covered by the ethics law,” Bussian said. “That isn’t terdisciplinary nature.” The pro- ing entities covered by the ethics law. gram directors also had received right.” UNC-TV’s board was not on that list. The state ethics law is designed “to ensure that elected several requests for books about If the ethics law covered the UNC-TV board, Thomp- the environment and sustain- and appointed state agency officials exercise their authority son, along with the other board members, would have been honestly and fairly, free from impropriety, threats, favorit- ability. Moreover, she said, the required to file a Statement of Economic Interest spelling committee liked the fact that stu- ism, and undue influence.” The law covers elected officials, out his assets, property, sources of income, and lobbying members of policymaking boards, and some state advisory dents “could take action and get contracts, among other things. The state Ethics Commission involved with the issues” in this boards — including boards added through executive orders reviews the statements, flags any actual or potential con- by the governor. book rather than simply reading flicts of interest, and notifies the board chairman of those about them. In an e-mail, Thompson said he had “a duty” to re- conflicts. spond to questions from Vajda. “It was not a conflict of in- UNCW isn’t the only school The “covered person” is supposed to “refrain from any using Beavan’s work. The No terest for me to discuss facts about the Alcoa matter with undue participation in the particular matter” during board Ms. Vajda,” he said. Thompson considered UNC-TV no Impact Project (inspired by the meetings. And the ethics law discourages anyone covered book) offers an environmental different than any other news source. “Media outlets often by it from using his authority to place undue pressure on cover issues in which board members are involved,” he education curriculum for K-12 state employees, and Vajda was one at the time. teachers. Other colleges, includ- added. Thompson also said station management and staff Even though the UNC-TV board is not covered by the were aware that he represents Stanly County. ing Ohio State University, also state ethics law, “The general idea of conflict of interest and chose No Impact Man for this On Aug. 5, 2009 — three days after Vajda e-mailed recusal applies to all boards/commissions that are stewards Thompson (subject line: “Alcoa”) — he testified before Sen. summer’s freshman reading. of state and private resources [including UNC-TV], whether And Beavan will speak at cam- Fletcher Hartsell’s Senate JII Committee on the Alcoa legis- covered by the Ethics Act or not,” Frank Perry, director of lation, in part making a presentation about PCBs in fish in puses around the country: Illinois investigations and communications at the nonprofit Foun- Wesleyan University, the Uni- Badin Lake. dation for Ethics in Public Service, wrote in an e-mail to Then, in a series of e-mails between April 23-27, 2010, versity of Texas at Austin, Texas Carolina Journal. State University, Cleveland State Vajda asked Thompson to find someone who could test the “[C]ommon sense parameters of such stewardship waters of Badin Lake. (The subject line read “Need names of University, Ohio State University would make it clear that Thompson’s ‘conflict of roles/in- at Mansfield, and several others. people to conduct fish test ASAP!”) Thompson wrote to CJ terest’ require recusal or disclosure, and certainly not after that Vajda had tried to contact Clemson University forestry In an interview on the No the fact,” he wrote. Impact blog, Beavan explains his professor John Rodgers, who conducted a fish tissue study philosophy: “We’re out of balance Legislative committee demands materials at Badin Lake. Rodgers was involved in litigation, Thomp- and out of touch. This has led to son said, so he suggested Vajda contact Gregory Cope, a a system that is destroying our Before the network aired news stories on the dispute toxicology professor at N.C. State University. planet. Perhaps the sadder part over a state water-quality certificate, a federal license letting ‘Conflict of roles’ is that it is destroying our souls, Alcoa continue operating four hydroelectric dams in central too.” North Carolina, and legislation enabling a state takeover of There’s a murky area surrounding “conflicts of roles” Beavan’s speech was its assets, a legislative committee demanded that UNC-TV and potential conflicts of interest making ethics watchdogs co-presented by the UNCW surrender thousands of pages of e-mails and other journal- uneasy about Thompson’s activities. Thompson was serving Leadership Lecture Series and istic materials. on the board of UNC-TV, a public agency. The station was University College. Beavan’s con- Those materials showed that state Senate President reporting on a policy dispute involving one of his clients — tractual speaking fee is $10,000. Pro Tem Marc Basnight, D-Dare, phoned UNC-TV General Stanly County, another public entity. He did not disclose a UNCW also paid for his travel Manager Tom Howe, alleging “some collusion with some potential conflict of interest in writing to the UNC-TV board and lodging. CJ of the Alcoa lobbyists” and station management. Vajda until July, months after the Alcoa-related communications “should not be punished by anyone in your operation” for with Vajda began. Jenna Robinson is campus her Alcoa reporting, Basnight said. Thompson may have been under no legal obligation outreach coordinator for the John W. Vajda was fired in August after public documents to disclose either potential conflict, Perry said. But when a Pope Center for Higher Education from the network revealed that she had developed close ties public official’s personal interest, such as a financial incen- Policy (popecenter.org). with lobbyists and public officials who were pushing the tive, may run counter to his ability to provide objective judg- takeover. In the view of many, UNC-TV compromised the ment to others, a potential conflict of interest exists. CJ OCTOBER 2010 | CAROLINA JOURNAL PAGE 19 Higher Education Opinion In Higher Education?, the Left Takes Aim at Ivory Tower Faults ever judge a book by its jacket ing jobs they will roads of America entirely content with club sports run blurbs. face. Nonsense, as from Ivy League on a small budget, they maintain. Higher Education? — respond Hacker Issues classrooms. Another target is administrative byN professors Andrew Hacker and and Dreifus. Col- Having a college overload. Most colleges and universi- Claudia Dreifus — sports praise from leges are the wrong in degree is neither ties employ regiments of well-paid ad- Jonathan Kozol, Barbara Ehrenreich, place for vocational necessary nor suf- ministrators who, they write, “become and Joseph Stiglitz, all individuals training. There is Higher Education ficient for being a adept at weaving webs of words, with whom I have no need for future leader. sentences, and paragraphs to justify deep philosophi- resort managers, Having their presence.” cal disagreements. furniture design- brushed away Tenure also takes a barrage. So my pre-reading ers, or landscape scornfully those Hacker and Dreifus would do away hunch was that I architects to study the basics of those and other poor reasons for college, the with it, arguing that it does little or would despise the occupations in college. Besides, people authors give us their vision. College nothing to protect academic freedom book on the theory can be good at jobs for which they education should be about “getting but imposes large costs. Well-written that a friend of haven’t had any training in college. young people to use their minds as contracts for faculty would do as my enemy is my • If we don’t produce more col- they never had before, thinking about much to protect against wrongful enemy. lege graduates, we’ll fall behind Chi- hard realities and issues that strain termination without creating the prob- Wrong. na, India, and other countries. That’s a their mental powers.” That’s a good lem of faculty “deadwood.” Hacker and GEORGE silly notion, they say. If we really need formulation, but unfortunately a large Finally, the authors attack faculty Dreifus have writ- LEEF more scientists and percentage of research. The trouble is that most ten a devastatingly engineers, students American high research is of scant intellectual value honest, forthright will be drawn into school graduates and has none at all for the students. book on the waste those fields. Authors say don’t want any Wasting resources and under- and folly that’s rampant in American • College such experience. educating our young people is bad higher education. In a nutshell, they’re education makes education costs The most whether you’re a liberal, a conser- saying that our colleges and universi- people more controversial vative, a libertarian, a Marxist, or ties cost much more than they need to, thoughtful and more than it parts of the book anything else. while delivering much less education civically engaged. are the authors’ Because our higher education than they should. The authors retort, should and delivers stances against system is dominated by people of the That’s a message that isn’t “We haven’t found less than it should activities and left, those people often treat criticism anchored at any spot on our wide that ballots cast diversions that from nonleftists as mere ideological political spectrum. For many years, by college gradu- drive up costs griping. free-market proponent Thomas Sowell ates express more and work at The subtext of Higher Education? has been arguing that the trouble with cogent thinking than the votes of cross-purposes with the goal of giving may be that it is all right for liberals to our education system is that it is run other citizens. Even now, as a nation, undergraduates a worthwhile educa- join the higher ed reform movement for the benefit of those who produce are we more thoughtful than Illinois tion. — that they shouldn’t feel like traitors education (faculty and administrators) farmers as they stood for three hours The mania for intercollegiate ath- for agreeing with the likes of Sowell rather than those who consume it (stu- as they pondered the Lincoln-Douglas letic glory dominates at most colleges that our higher education system has dents). Hacker and Dreifus strengthen debates?” and universities, ranging from ob- become a prodigiously expensive his point with their book. • We train our future lead- scure liberal arts colleges to behemoth special-interest program. CJ The authors subject the conven- ers through higher education. Stop state universities. The vast majority tional wisdom about higher education your pompous strutting, Hacker and of sports programs lose lots of money to withering scrutiny. Dreifus say (not their exact words, but that should be spent on academic pro- George Leef is director of research • Higher education must that’s their sentiment) — leaders are grams and they undermine academic for the John W. Pope Center for Higher prepare workers for the demand- just as likely to come from the back integrity. Most students would be Education Policy (popecenter.org). PAGE 20 OCTOBER 2010 | CAROLINA JOURNAL Books & the Arts

From the Liberty Library Movie review

• America’s biggest national security threat just might be Presi- ‘Inception’: Mind-Blowing Thriller With Subtle Payload dent Obama. Sounds unbelievable, but unfortunately, it’s true, as best- • Inception, Directed by Christopher Nolan, Warner Bros. dream three layers deep can allow a man to live a lifetime in selling author and military analyst Pictures, Released July 16, 148 minutes. the course of a night. Under sedation, mistakes can happen Buzz Patterson reveals in his new — if you are killed in the dream, you will go insane in the book, Conduct Unbecoming. By John Calvin Young ages before you wake. And dreams are dangerous places. Exposing how Obama’s na- Contributor The team must layer dream within intricate dream to catch tional security policies are weaken- RALEIGH Fischer, to plant the little seed, the subliminal, counterfac- ing our military and endangering “What is the most resilient parasite? Bacteria? A virus? tual, illogical idea that will change his life — and the world America’s safety, Patterson shows An intestinal worm? An idea. Resilient … highly contagious. — for years to come. how Obama never stands up for Once an idea has taken hold of the brain it’s almost impossible to Cobb is better at his craft than anyone on his team, but America and consistently appeases eradicate. An idea that is fully formed — fully understood — that he carries a fatal weakness. The dreamer builds the world, our enemies. sticks.” but the subject’s mind inhabits it — literal figments of the “History is repeating itself,” om Cobb (Leonardo DiCaprio) opens Christopher subconscious imagination become real. As they drill into says Patterson. “When I worked for Nolan’s “Inception” with a surprisingly deep dis- Fischer’s psyche, more and more of Cobb’s subconscious President Clinton as his senior mili- course on the power of ideas. Yet this action thriller comes out to play. The spectre of Cobb’s dead wife, Mal, tary aide, I saw the same shocking Dwill not disappoint, with pulse-raising suspense and ef- haunts his dreams, thwarting his plans, endangering all behavior towards our military, allies, fects-driven thrills to delight the most jaded of theatergo- with him as guilt and sorrow for her death wrack Cobb’s and enemies. But Barack Obama’s ers. Its complex plot, futuristic soul. Ariadne must be willing misconduct and dereliction of duty premise, and incredible visuals to go to the brink, and beyond, surpasses that of Clinton.” will please many looking for cheating death and insanity, if Shocking and controversial, the cheap thrills of a summer she is to unravel Cobb’s obses- Conduct Unbecoming reveals how blockbuster. But its rich tap- sions and give them any hope Obama’s disregard for our military estry of subtexts and hidden of survival. and a strong foreign policy is ex- meanings will keep viewers Given the science-fiction posing us to unprecedented risks busy for days figuring out the premise of dreamers with ac- in the 21st century. More at www. myriad twists and turns of its cess to eternal, addicting ages regnery.com. compelling plot. of time where only the experi- In a world where dreams ence is real (everyone knows can be constructed, manipu- that when you die, you wake lated, and shared through up), “Inception” is surpris- • In The Ruling Class, Angelo drugs and neural links, a per- ingly clean. But when reality Codevilla introduces readers to the son’s subconscious can be a itself becomes unreliable, and group of bipartisan political elites rich field for the data miner. Or a lifetime of emotions and ex- who run America. This ruling class, data thief, rather. Dom Cobb perience can come to be no educated at prestigious universities is an extractor — a white-col- more than an afternoon in a and convinced of its own superior- lar corporate spy. He and his dream, morality takes a simi- ity, has everything to gain by raising team enter a mark’s dreams, lar turn. There is no smut in taxes and expanding the reach of sometimes entering building “Inception,” but that doesn’t government. This class maintains dreams within fragile dreams mean it’s suitable for children that it knows what is best and con- to find the strongbox deep — and parents should think tinually increases its power over within a man’s subconscious, twice before introducing it to every facet of American life. holding the secrets he keeps their teens. The problem lies The majority of Americans feel even from himself. in the structure of the fantasy that the ruling class is demeaning us, Cobb is the best of the — when death is a release, and impoverishing us, and demoralizing best, an expert in his field. He only pain is real, morality gets us. They want to be rid of it. Learn once designed dream worlds twisted, fast. more at www.beaufortbooks.com. for others, but makes it impos- Deep in the dream, Fisch- sible for him to continue, he er eventually is trapped with a goes into the field as an extrac- “Mr. Charles,” where the mark tor. is convinced that the extractors • In his important new book, A heist goes bad, and are here to defend him from a Reforming Our Universities, best- Cobb is offered amnesty on his record and the opportunity psychological attack and is enlisted to help break into his selling author David Horowitz to go home if he can complete an impossible assignment — own mind. “Inception” tells us we’re on the side of the an- tells the dramatic story of his on- rather than extract information from a subject, plant an idea, gels but takes us on a rollercoaster ride not unlike Fischer’s. going campaign for an Academic instead, in his mind, an idea whose genesis the mark will The movie feeds us one mind-bending change in real- Bill of Rights to protect students never suspect, and will accept as his own a small, but insidi- ity after another, subjecting us to worlds where even gravity who want to think for themselves. ous idea, sufficient to make him change his course of action. is called into question. More dangerous is life and death in He also reveals his latest effort: To pull off this feat, Cobb must assemble his team — the dream world — pain is to be avoided, suicide the best the Adopt a Dissenting Book Cam- innocent Ariadne (Ellen Page), reliable Arthur (Joseph Gor- way out, and superstition the only way to hold on to reality. paign. Tackling syllabi and reading don-Levitt), colorful Eames (Tom Hardy), and mercenary Even more insidious, the film leaves the viewer with deep- lists that don’t present both liberal Yusuf (Dileep Rao) — willing to go not just into one dream seated questions (and unsettling doubts) about the nature of and conservative points of view, the or two, but three or more layers deep into a man’s mind to dreams and of reality in general. Adopt a Dissenting Book Campaign perform the most audacious heist in history. Christopher Nolan has invited us into his dream, will assist students in petitioning The challenge: Stop a massive corporation’s takeover into a vast world where dreams can nest into dreams and their professors to incorporate a of half the world’s energy supplies. Robert Fischer (Cillian subconscious thoughts become physical realities. Dom dissenting text into the curricula. Murphy) is the sole heir to the corporation and the only man Cobb warns of us of the danger: Dreams plant small Insightful and compelling, the who can destroy his father’s empire. To convince Fischer to ideas, which can grow to define or destroy a man. We fol- book exposes the underbelly of the break up his inheritance, Cobb’s team must destroy his trust low our guides down level after level as they plant just academic world and just might be in his advisers, plant documents and memories, and rebuild such an idea to change the course of a man’s life. “Incep- Horowitz’s most important book yet. Fischer’s conflicted relationship with his father — all within tion” is a mind-blowing experience, no doubt about it. More at www.regnery.com. CJ a dream, 10 hours in a plane, 30,000 feet over the Pacific. But when someone else’s dream takes us on a ride like The danger: limbo. As time speeds up in dreams, a this one, we would do well to consider the payload. CJ OCTOBER 2010 | CAROLINA JOURNAL PAGE 21 Books & the Arts The Tea Parties Have Nothing on Wilmington’s Sons of Liberty glance at recent newspaper American, and reactionary is simply Crown’s offer to be North Carolina’s the Superior Court. headlines reveals that many a revival of an American tradition. As stamp distributor — a position he The following year, British Americans are concerned with I’ve stated numerous times — and it’s probably regretted accepting. When officials worked to subdue Wilming- Athe possibility of perpetual tax in- worth repeating — Americans have the medical doctor arrived in the port tonian radicalism. In the Cape Fear creases. questioned government growth and city in November 1765, angry Wilm- River, they started seizing American Tea Party protests over the pros- increased taxation since the 1600s, for ingtonians met the newly appointed vessels without stamped clearance pects of higher tax- the two can’t exist without each other. bureaucrat and persuaded him to papers. es have led some During colonial times, the Sons resign. That month, the same North When the Sons of Liberty critics to claim that of Liberty did more than question Carolinians, more than likely, forced learned that the captains were to ap- the Tea Party is the Stamp Act of 1765 — a tax by the North Carolina Gazette editor to pear in admiralty court, approximate- turning America the Crown on all printed materials. start issuing unstamped editions. ly 1,000 men assembled in Wilmington into, in the words Although the tax was not exorbitant, More protests followed. Walk- in February 1766 and forced the tax of British colum- its frequency reminded Americans ing through the streets of Wilmington collector to release the captured ves- nist Clive Crook, a that the government interfered with with a coffin, North Carolinians held sels and open the port. “dysfunctional de- almost all economic and legal trans- mock funeral processions (a common Three days later, every court and mocracy.” actions — newspapers, deeds, legal means of protest during the 1600s and customs official swore to ignore the Similar TROY judgments, advertisements, almanacs, mid-1700s). Inside the coffin was not Stamp Act. With their mission ac- views are being KICKLER and certificates of compliance with King George III, a stamp distributor, complished, association members left expressed in the customs regulations. Any public busi- or a tax collector, but Liberty — to Wilmington and went back to their United States. ness was taxed. portray the death of freedom. Colo- stores and their farms, as they had The movement has been labeled by The Sons of Liberty in Massa- nists wished not to overthrow the a limited purpose: to open the Cape self-styled elites as being concerned chusetts have received much historical king, but to urge him to perform his Fear River to navigation and trade. only with “nonsense.” Its followers’ attention; however, North Carolina duty and be a good ruler. After that February, British of- concerns have been dismissed by such also had a particularly active group in Maurice Moore was a pallbearer ficials had (no doubt) a vivid recol- notables as Colin Powell, former sec- Wilmington. While colonial assembly- in one such procession on All Hallows lection of the association’s action and retary of state under George W. Bush, men argued in their respective legis- Eve 1765. That same year he wrote The were hesitant to disregard their agree- and New York City Mayor Michael latures that only their representative Justice and Policy of Taxing American ment with one of the most active Sons Bloomberg. body could levy taxes on colonists, Colonies in Great Britain. In it, he spe- of Liberty groups in the colonies. CJ Many of the critics seem to the Sons of Liberty in Wilmington cifically condemned taxation without praise democracy until populist pledged to resist the Stamp Act with representation. As punishment, the Dr. Troy Kickler is director of the tendencies work against them. What “their lives and their fortunes.” royal Gov. William Tryon stripped North Carolina History Project (www. some consider dysfunctional, un- William Houston accepted the Moore of his judicial appointment on northcarolinahistory.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 OCTOBER 2010 | CAROLINA JOURNAL Books & the Arts

Short Takes on Culture Book review Wit, Wisdom, and Sowell Armey Writes ‘Tea Party’ Primer •Dismantling America this fall is warranted. • Dick Armey and Matt Kibbe, Give Their stories are inspiring. From Mary By Thomas Sowell The stadium is named after one Us Liberty: A Tea Party Manifesto, New Rakovick, a Florida resident who was Basic Books of Alabama’s and Duke’s most suc- York: Harper Collins, 2010, 266 pages, disillusioned with the ballooning defi- cessful coaches. Wallace Wade won $19.99. cits under President Bush and felt the hrough the haze of political Alabama’s first three national cham- bank bailout was wrong, to Keli Caren- rhetoric and obfuscation, one pionships and then later took on the By Melissa Mitchell dar in Seattle, Wash., who organized a occasionally encounters simple Duke football program, where he won Contributor “Porkulus Protest” in downtown Seat- truth:T “Whoever called politics the six conference titles. The stadium, RALEIGH tle, the book shows how small protests, ‘art of the possible’ must have had built in 1929, normally seats almost ike millions of average Ameri- with help from FreedomWorks advis- a strange idea of what is possible 34,000 people, but 39,042 fans showed cans, I have attended a Tea Party. ers, spread across the country and led or a strange idea of politics, where up for the Alabama-Duke game, the Have you ever wondered how, to more than 1 million people flocking the impossible is one of the biggest largest turnout in 16 years. inL the 21st century, so many Americans to a rally in Washington, D.C., Sept. 12, vote-getters.” The stadium has a unique claim, have associated with groups named 2009. That’s just one of the astute in that it is the only facility outside after the original Boston Tea Party of Critics also want to designate a observations that crop up regularly Pasadena, Calif., to host the Rose 1773? Have you wondered where this leader, so they can follow Saul Alin- in Thomas Sowell’s columns. If you Bowl, which it did during World War movement originated? Who leads sky’s admonition — “Pick the target, occasionally miss his regular servings II as a precaution against a Japanese it? What are the values and concerns freeze it, personalize it, and polarize of wit and wisdom — or if you want air raid. The horseshoe-shaped stadi- of the Tea Party at- it.” It’s impossible be- a second helping — you’ll enjoy this um with a colossal video scoreboard at tendees? When did cause you cannot de- new collection of recent columns. one end is only 32 rows high, ensuring the name “Tea Party” monize more than a Perhaps “enjoy” is the wrong there is not a bad seat in the house. become synonymous million average Amer- word, since Sowell focuses on the — KELLIE SLAPPEY with these protesters? icans. cultural, legal, political, and economic Dick Armey, Ironically, the developments that threaten to “dis- chairman of Freedom- authors strongly urge mantle” America. Consider his as- Works’ board of direc- everyone to read Alin- sessment of progressive intellectuals: • “Despicable Me” tors, and Freedom- sky’s book Rules for “How have intellectuals managed to Directed by Pierre Coffin Works president Matt Radicals and under- be so wrong, so often? By thinking that Universal Pictures Kibbe answer these stand how the left is because they are knowledgeable — or questions in Give Us working to control the even expert — within some narrow When a rival super villain Liberty: A Tea Party political scene. band out of the vast spectrum of hu- pulls off an impossible heist — Armey and Kib- man concerns, that makes them wise Manifesto. stealing the Great Pyramid — ne’er- The Tea Party be — outspoken crit- guides to the masses and to the rulers do-well Gru, desperate to retain ics of Bush’s bailout of of the nation. But the ignorance of idea originated with his position as the world’s greatest a Feb. 19, 2009, on-air Wall Street — criticize Ph.D.s is still ignorance.” criminal mastermind, devises an conservative think Sowell’s verbal machete hacks rant by CNBC reporter audacious plan to pull off the great- Rick Santelli. Infuriat- tanks and politicians away the underbrush at the frontier of est kidnapping in history — shrink that supported it. Although many ignorance — whether he’s question- ed by media coverage suggesting that and steal the moon! the housing bailout would force people backers of the bailout now believe they ing the Obama administration’s cod- Even when the plan calls for were mistaken, Armey is baffled and dling of terrorists, deploring judges’ who could pay their mortgages to sub- adopting three cute sisters from sidize their neighbors who couldn’t, annoyed that they did not realize the ignorance of constitutional restraints, an orphanage, he doesn’t hesitate. consequences of their actions at the or exposing the fissures in the infa- Santelli said, “It is time for another To him, they’re merely cogs in the Tea Party, and I’m organizing it.” The time. mous Duke lacrosse “rape” case. machine. Yet Agnes, Edith, and The book promotes how The American soul could use a authors provide unique parallels be- Margo aren’t about to give up their FreedomWorks and its local training lot more Sowell. tween today’s Tea Party members and dream of an ideal dad that fast, just those original Tea Party protesters. workshops are expanding grass-roots — MITCH KOKAI because he turned out to be a thief. From a small town in North Da- activism, but none of this would be And we all know little girls can happening if large numbers of Ameri- kota, Armey eventually became the be persistent when they put their cans were not disgusted with govern- chairman of the economics department minds to it. ment. • Wallace Wade Stadium at North Texas State University, a U.S. While Gru and his army of “The Contract with America Duke University congressman, and, finally, House ma- elfin yellow minions battle their was a top-down movement, which www.goduke.com jority leader. He’s an American success nemesis for control of the moon, started in Washington, but the Tea story. little questions begin to seep in at Party movement is a bottom-up move- I attended the Alabama vs. Armey’s values also fuel the Tea ment,” Armey says. The book presents Duke football game Sept. 18. It was last. Will Gru send the girls away Party movement: low taxes, less gov- a 10-point manifesto called the “Con- my first time seeing the Blue Devils to retain what he sees as his core ernment, and anger at government tract From America,” laying out the play and my first visit to Wallace identity? Or has something deep spending. These values drove Armey values Americans expect elected offi- Wade Stadium. within Gru escaped notice all this time? Can a super villain change to run for Congress in 1984 and led cials to hold. In the past, Duke has beaten him to leave Congress in 2003. He ex- three reigning national champions, his colors? Armey sees the movement as a It may be a kid’s film with pressed his disgust with the Republi- political watchdog rather than a third but they were no match this time can leadership in a note he wrote dur- against the current national champi- a preposterous premise, but that political party. Unlike political party doesn’t mean Despicable Me doesn’t ing a meeting in 2002: “Every week we activists, who “take up their yard ons. Alabama easily won the game, come to town and do things we ought 62-13. pack an emotional punch. In be- signs and go home after the election,” not do in order to keep the majority so Some would argue in Duke’s tween the hilarious slapstick antics he says, Tea Partiers will continue to we can do the things we ought to do defense that this is basketball country of Gru’s minions and a double dose monitor elected officials. but never get around to doing.” and Duke is the presiding national of cuteness from three adorable Finally, the appendix — a champion in that arena. However true little girls, we consider the harder But where did the Tea Party “FreedomWorks Grassroots Activism this may be, Duke’s football program questions of selfishness, love, be- movement start, and who is its leader? Toolkit” — is an excellent resource for should not be overlooked, and at least trayal, forgiveness, and adoption. The book introduces average citizens individuals who want to stage a pro- one visit to Wallace Wade Stadium — JOHN CALVIN YOUNG CJ who were fed up with some aspect of test or just be involved in changing the government and took to the streets. climate of Washington. CJ OCTOBER 2010 | CAROLINA JOURNAL PAGE 23 Books & the Arts Seven Events Makes Connections Most of Us Haven’t Thought About • Larry Schweikart, Seven Events That about. Schweikart’s style is entertain- fering. in the north realized they would have Made America America (And Proved That ing, sardonic, and lively; the profes- In a massive flood of Dayton, to compete against slave-labor planta- the Founding Fathers Were Right All sorial grasp of facts and currents is Ohio, in 1913, the head of National tions in the new territories, midwest- Along), New York: Sentinel, 2010, 258 always at the surface, but it’s never Cash Register Company, John Patter- ern migration dropped. Overextended pages, $25.95. sedate, and it never deadens the nar- son, turned his headquarters staff into railroad speculators found traffic dry- rative. emergency management teams. His ing up and their bond markets collaps- By Hal Young Because of the premise, too, Sev- employees built 276 boats to rescue ing. The reasons behind the failures Contributor en Events always connects to the pres- survivors in the first three days of the were misunderstood at the time, and RALEIGH ent. These events created the country flood, while others served 2,700 meals “[that] flawed analysis of the causes of arry Schweikart, co-author of we inhabit today, and many of us are a day from the company commissary. the Panic of 1857 was piled on top of A Patriot’s History of the United trying to fix the problems created or While government does its prescribed the other disastrous fruits of Dred Scott States, writes, “The most impor- exacerbated by the his- duties like defense to push the nation to war.” By over- Ltant — and interesting — parts of his- tory he recounts. This and diplomacy quite stepping its authority, the Supreme well, Schweikart tory to understand are those that spark is not just a chronicle Court may have made secession inevi- writes, its efforts at deep and significant changes but are of people and dates, table. expanded roles gen- not necessarily obvious.” but a map recording Although the book’s subtitle erally fall short. This can be as simple as looking both the pathway from references the Founders, Schweikart More to the spends most of his time on later events. beneath the whitecaps of Yorktown, the past and a possible philosophical side, Pearl Harbor, and 9/11 to seek the course to a brighter fu- Like any list maker, he chooses his fa- Schweikart takes an- vorite subjects and omits others. The ocean currents underneath; any decent ture, if we care to back- other look at the Dred high school history teacher will do it. track a little. professor admits he played in a rock Scott decision. While band once, and was delighted to count Schweikart goes far deeper in Seven The best chapters we’ve all heard that the sham revolutionary movement of Events That Made America America, but may involve the nature Dred Scott failed to American rock as one of the “events.” in the process tells us something about of life and the govern- uphold the dignity He barely touches on the expansion of the historian as well as the history. ment’s responsibility and personhood of railroads, the rise of Progressivism un- Implicit in the title is Schwei- for fostering and pro- African-Americans, it der the two Roosevelts, or the cultural kart’s definition of “America.” This tecting it. The section also resulted in wide- shift from a largely Protestant Chris- historian’s view of the U.S. is affec- on federal disaster spread bank failures tian milieu to an officially agnostic, tionate but disappointed. It’s a land and the Panic of 1857. relief compares the af- or at best deistic, relativism. He does of overgrown bureaucracy, a nanny How so? Schweikart termath of Hurricane make a nice package by starting the state which imposes wrongheaded Katrina in 2005 with points out that as long as slaves were protected as property, book with the frank, flaming partisan- remedies on a culture increasingly ac- the cleanup of the Johnstown Flood in ship of newspapers in the 1830s and customed to its meddling. Its leaders 1889 and several disasters in between. many plantation owners held more wealth invested in the form of human closing with the election coverage of bring deep-seated philosophical errors While Katrina displayed the feckless- 2008. Truly there is nothing new under to the diplomatic table and junk sci- ness of government leaders at every lives than they did in land and houses. That wealth was safe under Dred Scott. the sun or in the Times. ence to the dinner table. Even its revo- level, with thousands displaced and Schweikart has given us a pow- lutionaries are bogus, posing as faux homeless while waiting for tax-funded The uncertainty the decision produced in the Midwestern free soil/slave state erful reminder, though, that there are radicals in order to peddle records and assistance, Johnstown was saved by controversies wrecked Eastern finan- many things both known and unsus- “image.” This is reported dutifully by private initiative. Residents who had cial markets. pected which bring us to the present a hypocritical news media pretending barely dried off from the torrent orga- “[There] is a smoking gun tying day. “I think it is clear,” he says, “that to report facts while promoting their nized themselves to rescue the strand- the Dred Scott Supreme Court decision it is not always the declaration of war, own partisan agendas. ed, bury the dead, and shelter and feed to the ongoing events in Kansas and a inspirational speech, famous piece of And that’s just the highlight reel. their neighbors. Pennsylvania militia further expectation about that kind of legislation, or other well-known event Even so, Seven Events is an inter- helped with law enforcement, but pri- civil war and lawlessness spreading we learned about in history class that esting collection of connections and vate businesses and individuals rallied throughout the territories,” he writes. has had the most long-lasting impact trends many of us haven’t thought to rebuild the town and relieve the suf- When immigrants and small farmers on our lives.” CJ Books authored By JLF staFFers Selling the Dream Why Advertising is Good Business

By John Hood President of the John Locke Foundation

“[Selling the Dream] provides a fascinating look into the world of advertising and beyond ... Highly recommended.” Choice April 2006

www.praeger.com PAGE 24 OCTOBER 2010 | CAROLINA JOURNAL Opinion

COMMENTARY Exercise Your Rights ast month I highlighted five color they can paint their houses. reasons the upcoming election Think you’re not affected? As long is important: more than 120 as the government can violate one Lyears of one-party rule; wasteful person’s property rights, no one in federal stimulus spending; corpo- North Carolina is safe. rate welfare; corruption; and nanny- • State budget: Bigger gov- state government. If you aren’t ernment costs more money and motivated to vote in this election, infringes on more rights and free- let me offer five more reasons this doms. Government has expanded election may be the most important during good times, doing more stuff of our lifetimes. for more people and raising taxes • Jobs: The economy is in to pay for the growth during slow the tank; businesses are closing or times. Once programs are in place, laying off workers, doing whatever politicians take more of our money they can to hang on. Recovery is to sustain them. The decades-long tenuous, the impact of ObamaCare spend-and-tax cycle is unsustain- EDITORIAL even worse than anticipated, and able. We’re broke and looking at the impact of repeated a $3 billion shortfall (or government interference more) in next year’s bud- in the marketplace has get. Talk of budget reform Reuben Young’s left so much uncertainty should not be looking for that businesses with more money but focusing money are afraid to spend on how to cut spending. Sgt. Schultz Routine it. • Debt: The fiscal • Redistricting: This freefall is not limited to euben Young, former Gov. Mike referral to state prosecutors, suggest- once-a-decade exercise in spending. It also includes Easley’s chief legal counsel, ing that Easley had broken the law guaranteeing one man, massive debt. The state swore he knew nothing — while in office. Federal investigators one vote will determine BECKI is over $6 billion in debt, nothing!R — about either the gover- reportedly are looking into these mat- how maps for North most of it not approved nor’s private e-mail account or an ters as well. Carolina’s 13 congressio- GRAY by voters. The pension order for staff to delete e-mails sent to To be sure, Young might not nal seats, 50 state Senate fund continues to decline, and from that address. Nor did Young have known about Easley’s private seats, and 120 state House seats are and the State Health Plan is grossly pay attention to who was sending and account, because — as an earlier drawn. The party in charge will underfunded, needing $4 billion to receiving e-mails when he reviewed deposition from Easley Press Secretary draw the maps with some direc- become solvent. The state’s sav- their messages as part of open-records Renee Hoffman revealed — Commu- tion from the ings accounts requests. nications Director Sherri Johnson had federal and state all have been “I looked at the documents, ordered other press officers to delete courts. In the drained. The one, to determine whether they were any e-mails from the governor’s per- past, we’ve seen The Constitution state treasurer responsive to the request, and number sonal e-mail address. gerrymander- says we can’t two, whether they were a public docu- Those messages could have been ing, preferential gives us the borrow any ment,” he said. “I did not look at them destroyed before Young had a chance treatment for right to vote; more — the to determine where they came from.” to see them. Deleting those documents favored legisla- tills are empty. Young — who’s now Gov. Bev — or ordering their deletion — would tors, and horse we need We’re broke. Perdue’s secretary of Crime Con- have violated the state’s open-records trading to ben- The trol and Public Safety — made this law. efit the major- to use it party’s over. It’s remarkable admission in sworn But it’s ridiculous to assume that ity party and time for fiscal testimony. He was being deposed for Young looked only “at the body of minority party responsibility, a public-records lawsuit filed by the the [e-mail] document to see if it was incumbents. A fair map would common sense, restraint, and lead- John Locke Foundation and several responsive to the request,” as he testi- allow voters to pick their elected of- ers with a backbone. Fundamental state media organizations. fied. How could Young, who said he ficials, not the other way abound. reform in state government begins His spotty memory and parsi- had reviewed public records requests • Property rights: Government with a comprehensive review of monious review procedures are, at from the beginning of Easley’s first infringes on our natural right to every program, streamlining core a minimum, suspicious. The e-mails term as governor, not be curious about enjoy the fruits of our labor. High functions, and getting rid of every- sought from Easley and his staffers who was sending and receiving the taxes take more of our income. thing else. would have concerned a host of issues messages? Without verifying who North Carolina is one of a handful How do we get there? It’s sim- that an in-house attorney would want was involved, Young would have had of states allowing municipalities ple. The answer is in our Constitu- to know about. Among them: flights no way of determining whether he to annex property owners against tion. It’s the right to vote. That right and other travel the former governor was reading private correspondence their will and without a vote. Pro- also is a responsibility if we hope to got for free or at discounted rates — which is not subject to an open tection against government land preserve our freedoms. Early voting from campaign donors; the $137,000 records request — or public business, grabs under eminent domain is not kicks off Oct. 14 with Election Day cash discount Easley received on a which is. guaranteed by our state constitu- Nov. 2. If you are concerned about lot at the coastal Cannonsgate resort Young’s memory failed him on tion. The past two governors have the direction of government in on Bogue Sound; and the do-nothing more than 30 occasions during the led an effort to deny Alcoa’s license North Carolina, exercise your right job at a six-figure salary Easley’s wife nearly two-hour deposition. On sec- to operate hydroelectric plants they to rebel: Vote. CJ Mary secured at N.C. State University. ond thought, perhaps Young wasn’t built and own. Slope ordinances in The State Board of Elections was channeling the hapless, fictional Sgt. the west mandate how landowners Becki Gray is vice president for plenty interested in Easley’s flights. Schultz after all. Instead, his role can use their property, down to the outreach at the John Locke Foundation. The board fined his campaign com- model may have been today’s U.S. mittee $100,000 and issued a criminal military: Don’t ask, don’t tell. CJ OCTOBER 2010 | CAROLINA JOURNAL PAGE 25 Opinion EDITORIALS COMMENTARY Lobbyists & Bailouts Bad News on Perdue and Democrats cater to lobbies The Jobless Front hen politicians make prom- sustain levels of state spending that ises that would give you all current state taxes can’t sustain, Per- am, by nature, an optimistic unemployed has dropped by about sorts of valuable goodies due and legislative leaders have set the fellow. 70,000, but so has the number of andW make someone else pay for those stage for future tax increases. Despite North Carolina’s people in the work force. goodies, disbelieve them. By protecting billions of dollars summerI dry spell, for example, I Other states have posted in- Especially disbelieve them if they in waste, fraud, and ineffective pro- haven’t given up on my lawn. I still creases in their unemployment rates try to claim that North Carolinians grams, they strengthened the special- get out the mower each weekend, over the summer. In many cases, won’t have to pay for the goodies be- interest constituency that benefits from check the gas and oil, crank up an that’s because some previously dis- cause the “federal government” will. these programs. audiobook, and spend exactly five couraged workers have re-entered The federal government has no Those lobbies will be back in 2011 minutes trimming the patch of the labor market to look for jobs. money that it does not first tax from us, and beyond to protect their programs crabgrass that is the only green and It sounds paradoxical, but it’s either directly through tax levies or by from cuts. History suggests that, more growing part of my front yard. true: We’ll know that a recovery is inflating the money supply. often than not, these spending lobbies And as a kid, I truly picking up steam When Gov. Beverly Perdue and will succeed. rooted for the Cincin- in North Carolina when the Democratic leaders of the General Some argue that, in theory, Wash- nati Bengals, usually to no some of our discouraged Assembly took credit for plugging bil- ington can help smooth out the effects avail. workers restart their job lions of dollars in state budget deficits of economic cycles by borrowing to So I don’t approach search, driving up the job- with “federal dollars,” what they re- support government expenditures the subject of North less rate in the short term. ally were celebrating was their clever during recessions and then paying off Carolina’s economic woes At the beginning of evasion of the North Carolina Consti- the debts and reducing the expendi- with apathy or pessi- 2008, there were about tution. tures during economic booms. Our state constitution requires mism. I want my home 4.3 million workers em- Even if this policy were justified, state to prosper. I want to ployed in North Carolina, that our budget be balanced every year. it relies on an unrealistic assumption It forbids the use of borrowed money see signs that our busi- JOHN out of a labor force of — that after the recession is over, poli- to pay for operating expenses. Because ness climate is improving nearly 4.6 million. Our ticians will adjust government debts HOOD the U.S. Constitution has no such pro- markedly, and that our jobless rate was just under and budgets accordingly. vision, the federal government has run policymakers have set the 5 percent. In reality, government programs deficits in most of the past 70 years. stage for a strong recovery from the Then the recession hit. North Recently, the deficits have exceeded $1 persist as long as their political constit- worst recession in decades. Carolina got hit earlier than most trillion a year. uencies retain power. But so far, the data don’t bear states, and the consequences were In effect, all of the federal money That’s precisely what public-sec- out such optimism. worse than average here. Since the used to plug North Carolina’s budget tor unions, vendors, activist groups, You might have read some- beginning of 2008, employment hole was borrowed. That’s unwise and other spending lobbies wanted. thing different when the latest has dropped by about 275,000. The and, at best, extraconstitutional. But They are big fans of federal bailouts. unemployment numbers came out. labor force has shrunk, too. It will the story gets even worse. That’s a good reason why the For the month of August, North likely take years for North Carolina By using borrowed money to rest of us shouldn’t be. CJ Carolina posted a 9.7 percent jobless to erase these losses. rate — well below the 11 percent Even so, I remain hopeful level we saw earlier this year. The that North Carolina can restore its state’s jobless rate is now close to economic competitiveness. No surprise the national average, after having We won’t get there through compared unfavorably to the rest of happy talk and wishful thinking, ObamaCare increases health care costs the nation for two years. however. There is hard work to do Is the recent decline in North and difficult decisions to make. dvocates of expanding govern- A new study in the Journal of Carolina’s rate a sign that we’re North Carolina’s assets include a ment health insurance — as the American Medical Association, by a finally closing the gap? Unfortu- strong work ethic, a pleasant qual- ObamaCare has done — have researcher at the University of Cali- nately, no. ity of life, recent improvements in arguedA that a major source of health fornia at San Francisco, underlines There has been some hiring in our physical-capital stock, and a care inflation was an increasing num- a fact even more inconvenient for some months, though most of it has right-to-work law that keeps labor ber of uninsured Americans going to ObamaCare supporters. Not only are been in government jobs. What’s unions from forcing wages above emergency rooms rather than get- insured patients the majority in emer- really going on, however, is that an the productivity of labor. ting medical services from lower-cost gency rooms, but patients insured un- increasing number of North Caro- Our liabilities include me- providers. der Medicaid also are twice as likely linians are dropping out of the labor diocre educational attainment and If Medicaid or some other to use ERs as the uninsured are. force. higher marginal tax rates and regu- government program were expanded In North Carolina, 24 percent The unemployment rate is the latory burdens than most of our to insure these Americans, advocates of ER patients are on Medicaid, far result of dividing the number of competitors. said, costs would go down because higher than the 14 percent of North jobless people actively looking for To get back into the game, they’d receive less-expensive care in Carolinians who are enrolled in the work by the number of people in North Carolina policymakers will doctors’ offices rather than at the ER. program, according to the study. the civilian labor force. Two differ- need to refocus government on its The claim may have sounded The main way ObamaCare was ent trends will drive that rate down core responsibilities and reduce its plausible. But it never was consistent expected to reduce the ranks of the — more people finding jobs and cost. I remain optimistic that the job with reality. uninsured was by enrolling them in CJ In the first place, uncompen- Medicaid. As a result, hundreds of more people ending their search for can be done, if they have the will. sated care in hospitals — not just in thousands of North Carolinians will jobs. ERs but across all hospital services join the Medicaid rolls in the coming In reality, there has been no — has never accounted for a signifi- years. net job growth in North Caro- John Hood is president of the cant percentage of U.S. spending on Far from reducing ER use, lina since March. The number of John Locke Foundation and publisher of health care. In most years, the share is ObamaCare likely will increase it, North Carolinians classified as CarolinaJournal.com. between 3 percent and 4 percent. driving medical costs even higher. CJ PAGE 26 OCTOBER 2010 | CAROLINA JOURNAL Opinion EDITORIAL BRIEFS The Parent Model

arlier this year, German and American officials clashed over how much eco- nomic stimulus was appropriate to help Erevive their economies. The Germans preferred limited additional spending, while U.S. officials pushed for heavy amounts of stimulus. This created a natural experiment about the effec- tiveness of stimulus programs, notes New York Times columnist David Brooks. The very early results indicate that the Germans got it right, as their economy is grow- ing at a 9 percent annual rate, while the U.S. economy remains stuck in neutral. “But the results do underline one essential truth: Stimulus size is not the key factor in de- termining how quickly a country emerges from recession,” says Brooks. “The U.S. tried big, but is emerging slow- ly. The Germans tried small, and are recovering nicely.” Managing economies isn’t like playing the piano, where pressing a certain fiscal key automatically produces a job creation note. In- Efficiency vs. Equity stead, argues Brooks, economic policy is more ’m going to venture into a thicket of controversy Okun argued the economic pie was best made big- like parenting, in which it’s critical to instill the in this column. The size of government, and ger by private individuals and private companies proper values and create the proper environ- its impact on the economy and on our broader pursuing their own self-interests. This leads to ment, and things will usually turn out all right society,I is a red-hot topic, and it’s easy to under- resources being used most efficiently, meaning the in the end. stand why. Government — especially the federal economy gets its biggest “bang for the buck” spent. “The crucial issue is getting the funda- government — has increased its involvement in the This is the essence of the free-market system. mentals right. The Germans are doing better economy significantly in recent years. But everyone may not like how the economic because during the past decade, they took First came the trillions of dollars — much of pie is divided by this system, and the pie may have care of their fundamentals and the Americans it borrowed — spent by the government in fighting some rough edges. Hence, we may want another didn’t.” the recession. This has increased both the annual force — government — to change some of the slices The U.S. system has certain advantages, budget deficit and long-term and to smooth off some of the edges. Government such as naturally fostering innovation, but also debt. does this by redistributing some income and by tends toward overconsumption and short-term Second came two large establishing some regulations over what individuals thinking, he added. Too many of the “solu- pieces of legislation — one and businesses can do. tions” to Americans problems in recent years focusing on health care and the In Okun’s words, therefore, there are two goals have simply made the problem worse, by rely- other on financial services — for the economy — efficiency, meaning growing the ing heavily on short-term fixes, such as encour- which will result in the federal economic pie so living standards can rise — and aging more borrowing and higher consump- government taking much larger equity, relating to some “fair” distribution of the tion. roles in two major sectors of the slices of the pie. Every society debates how much economy. attention to give to each goal. Yet with the economy still MICHAEL Okun, however, saw a problem in pursuing Wind energy struggling and unemployment WALDEN both objectives. To get more equity, the economy In recent years 30 states, including North uncomfortably high, there’s a would have to sacrifice some efficiency. In other rising chorus of voices saying words, to slice the pie more equally, the pie won’t be Carolina, issued mandates requiring a certain the growing size of government, rather than helping as big. This is Okun’s “big trade-off.” percentage of energy to come from renewable the economy, may have become a hindrance. There’s empirical evidence backing Okun’s sources. Such requirements won’t lead to major So there’s a new debate about the size of gov- claim. A just published book exhaustively analyzed reductions in carbon emissions, writes Robert ernment and its role in the economy. On one side scores of studies relating the size of government to Bryce in The Wall Street Journal. are those who say only the actions of government economic growth. The conclusion: Countries with Wind energy is the only renewable source saved us from a depression that may have exceeded larger governments do grow more slowly. Numeri- that readily can be scaled up in response to the downturn of the 1930s. This viewpoint also says cally, the relationship is approximately a decline these mandates. It isn’t a viable solution, how- a more active government is needed today to ad- of 0.5 to 1 percentage point in the rate of economic ever, for two reasons. dress both the inequities and the complexities of the growth for every 10 percent increase in the relative “First, wind blows only intermittently and modern economy. size of government. variably,” says Bryce. The opposing side says bigger government So the argument can be made that if the “Second, wind-generated electricity holds the economy back in two ways. First, it government had refrained from intervening in the largely displaces power produced by natural spends money ineffectively, using funds that could economy during the recession, the necessary adjust- gas-fired generators, rather than that from have been allocated more productively by the pri- ments to production and prices would have oc- plants burning more carbon-intensive coal.” vate sector. Second, by increasing taxes to support curred faster and the economy would now be grow- Because the wind does not blow at a a larger government, private spending and private ing at a more rapid pace. Likewise, it can be argued consistent, steady rate, utilities need to have investments — which boost the economy — are that the health care and financial services legislation backup capacity available. Conventional gas- deterred. may slow future economic growth. or coal-fired plants frequently would have to Rather than jumping into one camp or the If accurate, the larger question still remains — ramp up and down their energy production. other, let me try to bring some economic logic to this is the loss in economic growth worth it? This is the This is inefficient, just as being stuck in stop- controversy. “big question” of the “big trade-off.” CJ and-go traffic results in lower fuel economy for The debate about government and its impact automobiles. CJ on the economy revolves around a “big trade-off,” Michael Walden is a William Neal Reynolds Dis- a term coined by the late economist Arthur Okun. tinguished Professor at North Carolina State University. OCTOBER 2010 | CAROLINA JOURNAL PAGE 27 Opinion Untangling the Strings of the Puppet Masters recently came across two very doesn’t seem to be the case. Obama to political causes hardly provide a selves conservative. Nor do their con- similar articles. The Aug. 30 New did very well among those with a lucrative return for these individuals tributions disrupt the “natural order” Yorker published an interesting postgraduate education in 2008, personally. of politics. The $100 million the Kochs Ipiece by Jane Mayer on the Koch but his greatest support came from To be sure, the groups they fund are estimated to have invested over brothers, Charles those who did not have a high school push for policy outcomes consistent the past 30 years pales in compari- and David. A few education, with his lowest support by with their economic interests. But, if son to the $3.5 billion spent from all days later, having Americans with a college degree. If successful, the Kochs and Pope are sources on the 2008 election. Roughly missed it original- there are uneducated sheep among the paying for millions of other people’s the same amount was spent on federal ly, I picked out of populace, they can be found on the tax cuts or subsidies. At least they’re lobbying in 2009 alone. the recycling Steve left, not the right. employing people and contribut- Indeed, the Kochs and Popes of Ford’s opinion What’s more, the movement’s ing to public life. The real villains by the world are participating in a politi- piece about Art heterogeneity defies control. Ameri- this logic are the rich who free-ride cal process where competing interests Pope in The News cans who consider themselves conser- on these efforts. All in all, if I were have entrenched and advantageous & Observer. vative spend as much time arguing one of the Kochs’ financial advis- positions. Much of this country’s The subjects with each other as they do taking on ers, I wouldn’t recommend giving to political class, particularly in the of the two essays ANDY liberals. There are social conserva- groups like Americans for Prosperity. media and academia, has left-of-center were different, but TAYLOR tives, libertarians, and traditional You won’t see that money again. views. the message was conservatives — those who believe The current Wake County Journalists and professors, who the same: Today’s politics should resemble the word’s schools imbroglio provides a nice il- are unelected, are situated uniquely conservative politics are directed tight- dictionary definition. Conservatives lustration of this point. White, middle- to exert considerable influence on ly, from a position of obscurity, by indi- have conflicting views on issues like class, inside-the-Beltline residents public debate and ultimately policy viduals like the Kochs and Pope. What immigration and trade — free markets who take the pro-diversity position outcomes. I found it interesting that we see is their “puppet show.” for labor and goods versus the need to are cast as altruistic, even though their Ford laments Pope’s disproportion- This is an argument popular on protect American culture. kids currently have fewer poor and ate influence as he pontificates from a On others, their views vary from black colleagues in their classrooms perch as the editorial page editor of a the left. No rational person could have intense to insouciant — many who than they would under the proposed newspaper with a circulation of about right-of-center political ideas without fret about the size of government care neighborhood schools approach. The 180,000. being paid to acquire them. Conserva- little whether same-sex marriage is campaign contributions to the new But why should you listen to tives are manipulated to deliver policy legalized, for instance. If this is orga- board majority by Bob Luddy, the me? I know Art Pope and co-direct a outcomes from which their masters nized political action, whoever’s in founder of the private Thales Acade- program at N.C. State University that will profit personally. Many are “wing charge should be fired. my, are considered self-interested even is funded by the Pope Foundation. I nuts,” individuals naturally missing Second, that the puppeteers are though polling shows a much greater do not know the Kochs, but I’m cur- a few brain cells who are shepherded focused on their personal economic proportion of residents who have kids rently applying for a small grant from into following a political message. self-interest is flimsy reasoning. The in Wake County public schools oppose their foundation. Liberals, on the other hand, draw their Kochs have given hundreds of mil- the diversity policy than those who do I can’t think independently. I’m views independently from real-world lions of dollars to the arts and for not. If Luddy wanted to drive public just a puppet on a string. CJ experiences and observations. medical research. The John W. Pope schools out of business, he should This is, of course, all quite un- Foundation, of which Pope is presi- donate to the pro-diversity cause. true. First, for the Kochs and Popes dent, gives hundreds of thousands of It is not as though the ideas Andy Taylor is Professor and Chair of this country to be choreographing dollars each year to local charities and funded by the Kochs and Pope are out of the Department of Political Science in matters, there needs to be a conserva- educational institutions. of the mainstream, either. About one- the School of Public and International Af- tive movement willing to be led. This What’s more, their contributions third of Americans consider them- fairs at N.C. State University. No to the Ground Zero Mosque uch debate and controversy religion, and we welcome all faiths it 600 feet from ”ground zero.” has on its hands of innocent non- have ensued around the pro- and creeds. Sometimes lost in the tolerance Muslims. You may remember that the posed mosque near the site But in my view, this isn’t a ques- debate are the families of the victims U.S.-led sanctions against Iraq led to Mof ground zero. tion about religious tolerance. of 9/11. the death of over half a million Iraqi Passions, No one questions the consti- Many of those families were un- children. This has been documented tempers, and pro- tutional right of the imam and his derstandably stunned as they consider by the United Nations.” tests have flared followers to build the mosque at that ground zero sacred ground. I believe most Americans would up, and the usual particular site. Imagine the outrage of Ameri- take an exception to the aforemen- suspects and talk- But let’s be clear: Simply because cans if the Japanese government had tioned statements by Rauf. ing heads all have you have the right to do something tried to put a shrine dedicated to the As I previously mentioned, this pontificated and doesn’t mean it is the right thing to emperor in Pearl Harbor next to the is not about religious tolerance. It’s given the public do. USS Arizona. It never would have about doing the right thing and being their views on the Thus, I think the campaign to been allowed. respectful to families who lost loved issue. build the mosque is more about being It is also worth exploring the ones on that tragic day of Sept. 11. Also weigh- MARC provocative. It’s also about symbol- thoughts, intentions, and past state- The radical Islamists understand ing in have been ROTTERMAN ism. ments of Imam Feisal Abdul Rauf — symbolism. This mosque sends the President Barack Let us not forget that on Sept. the driving force behind the mosque wrong message to terrorists. And, Obama, New 11, 2001, our nation was attacked at ground zero. therefore, this mosque should not be York City Mayor viciously by radical Islamic extremists, Immediately after 9/11, Rauf built. CJ Michael Bloomberg, New York Gov. and almost 3,000 innocent people lost condemned the United States for David Paterson, Donald Trump, and their lives. being an “accessory” to the attacks. Marc Rotterman worked on the na- many other national figures. Now, fast-forward to the present More recently, he would not condemn tional campaign of Reagan for President Before moving forward, I think it — nine years after that attack — the Hamas as terrorist organization. in 1980, served on the presidential transi- needs to be said that the United States worst terrorist attack on American soil Imam Rauf also has been tion team in 1980, worked in the Reagan is the most religiously tolerant nation in our history. quoted as saying; administration from 1981-84, is a senior on earth. Not many rational souls A radical imam wants to con- “We tend to forget, in the West, fellow at the John Locke Foundation, and would argue with that. struct this 13-story, $100 million super that the United States has more Mus- is a former member of the board of the America cherishes freedom of mosque and Islamic center and build lim blood on its hands than al-Qaida American Conservative Union. PAGE 28 SEPTEMBER 2010 | CAROLINA JOURNAL Parting Shot Plan Puts ‘Server Farm’ Products in Farmers Market (a CJ parody)

By Hank Kimball harvest tobacco or pick cotton. These Agriculture Correspondent days, a few people with the right skills RALEIGH and a well-trained eye can do the work he Perdue administration un- of hundreds.” veiled a program linking the Crisco also announced a partner- state’s farmers markets with ship between the state, the computer itsT server farms. Under the initiative, makers, and Cree Inc. Cree, a manufac- computer servers produced at the fa- turer of LED lighting that has received cilities operated by Apple Computer millions of dollars in state incentives, in Caldwell County and Google in Catawba County would ship servers said it would produce special LED directly to farmers markets, allowing grow lights for the server farms to ex- members of the public to purchase tend the growing season at the facili- them directly rather than from brick- ties. and-mortar merchants. Silicon Valley-based technology The program was launched at the reporter Eustace Haney told Carolina state-owned Raleigh Farmers Market Journal he was baffled by the farmers by Secretary of Commerce Keith Crisco market promotion and the deal with and Agriculture Commissioner Steve Cree. Troxler. A basket of servers from North Carolina server farms entices shoppers at the N.C. “Server farms are data centers — “North Carolina has invested Farmers Market (CJ spoof photo) they link a large number of individual millions of dollars in tax incentives processing units to perform massive to make sure that we have the best with [the program], they shouldn’t Apple could qualify for $300 million have called it a farm,” he said. in tax savings; Google could receive a calculations or back up a company’s climate for server production in the data off site,” Haney said. “They’re not Southeast,” Crisco said. “And there’s Troxler also suggested that if $260 million break. supposed to build servers for the pub- no reason the people of North Carolina sales at the farmers markets are suc- Even with such large write-offs, lic. They’re more like mainframe com- should not benefit directly from our cessful, the Department of Agriculture the farms would employ few North fresh, farm-raised servers.” would consider opening a booth at the Carolinians. Apple predicts it will hire puters. And you don’t grow any kind Troxler said he had not actually North Carolina State Fair. 250 people; Google projects roughly of vegetable material there.” been to the facilities, but that the De- The magnitude of the tax incen- 210 workers. When contacted by CJ for com- partment of Agriculture was delighted tives offered to the server farms has Crisco says the critics do not un- ment about the farmers market pro- to provide an outlet for the servers at generated criticism. If the facilities derstand 21st-century agriculture. “It’s gram, Eric Schmidt, Google’s chairman state farmers markets. operate for 30 years, each company mechanized,” he said. “Decades ago, and chief executive officer, said, “You’re “If they didn’t want me involved stands to get significant tax breaks: you needed dozens of farmhands to kidding, right?” CJ E.A. MORRIS FELLOWSHIP FOR EMERGING LEADERS The E.A. Morris Fellowship is seeking principled, energetic applicants for the 2011 Fellowship class. Applications available online or at the John Locke Foundation. Application deadline is December 31, 2010. 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 lead- ership and innovative thinking on a local level. • Must be willing to attend all program events associated with the fellowship. • Must not be the spouse of a current or past Fellow. Fellowship Dates Application Timeline March 18-20, 2011: Retreat 1- Pinehurst, NC August 16, 2010: Applications available June 10-12, 2011: Retreat 2- Blowing Rock, NC December 31, 2010: Applications due October 14-16, 2011: Retreat 3- Coastal NC January 10, 2011: Notify finalists February 5-6, 2011: Selection weekend December 24, 2011: Final project due www.EAMorrisFellows.org Contact Ashley E. Sherrill | [email protected]

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