INSIDE THIS ISSUE: DEPARTMENTS Lawmaker North Carolina 2 C A R O L I N A Education 10 seeks end Higher Education 13 to N.C.’s off- Local Government 16 Books & the Arts 20 shore drilling Opinion 24 Parting Shot 28 ban/5 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION JOURNALFROM THE JOHN LOCKE FOUNDATION February 2010 Vol. 19 No. 2 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org SBI brought in Inquiries Take Toll on Easley Team to investigate By Don Carrington Executive Editor RALEIGH Duplin schools’ hen a federal grand jury in- dicted former Gov. Mike Ea- sley’s legal counsel Ruffin money matters PooleW on Jan. 21, it was just the latest By Lee Raynor setback for an Easley associate since Contributor the state’s media began investigating KENANSVILLE the former governor’s activities. elocation expenses paid to a Du- Poole’s indictment came nearly plin County Schools employee four years after Carolina Journal first re- who then failed to move are be- ported that Easley bought a waterfront lievedR to have triggered an impending lot for a bargain price in the Cannon- State Bureau of Investigation probe of sgate community on Bogue Sound in the school district. Carteret County. County commissioners earlier The former gubernatorial legal had requested an audit of the school counsel was charged with 51 counts of system based on resident complaints corruption related to his involvement of financial mismanagement. with the politically connected coastal While the bureau declines to com- developers behind Cannonsgate. ment publicly on whether an investi- In addition to Poole, several oth- gation is in progress, long-time Dup- er key Easley associates have had set- lin County District Attorney Dewey backs as a result of CJ stories, as well Former Gov. Mike Easley (right) and his former general counsel, Ruffin Poole, leave Hudson said he has asked the agency as those appearing in The Charlotte Ob- a North Carolina Chamber event in March where Easley received a distinguished to look into the matter “preliminarily.” server and The News & Observer of Ra- service award from the organization. (CJ photo by Don Carrington) Three county commissioners and three citizens signed a letter to Hudson leigh: from her $170,000-a-year job. worth $600 for Poole’s wedding. on Sept. 14, 2009, asking for the investi- • In May 2009, McQueen Camp- • Also in May, ABC Chairman • In late October, the State Board gation. The letter questioned the legali- bell resigned from the N.C. State board Doug Fox resigned from his commis- of Elections convened a hearing to in- ty of paying employee moving expens- over his role in the initial hiring of sion after he sent a racist e-mail refer- vestigate alleged campaign finance vi- Mary Easley by the university in 2005. encing President Obama. According to Soon after that, Mary Easley was fired the indictment, Fox provided liquor Continued as “Inquiries,” Page 2 Continued as “SBI,” Page 3 State Raises New Charter School Barriers PAID the Dec. 3 meeting, also may doom the vation and efforts to reach disadvan- RALEIGH, NC U.S. POSTAGE PERMIT NO. 1766 NONPROFIT ORG. state’s chances to win more than $400 taged children. Changes may doom million in federal Race to the Top edu- The new policy directs the SBE to cation reform dollars. revoke the charter of any charter school state’s chances An ad hoc task force that began that fails both to make adequate yearly studying charter school issues in Au- progress in student test scores in any for Race to Top funds gust recommended the policy changes. two of three consecutive years and has According to information presented at fewer than 60 percent of its students By Jim Stegall the Dec. 3 meeting, the new policies scoring at or above grade level. Regu- Contributor are intended “to improve the academic lar public schools have similar targets RALEIGH accountability of charter schools and for student growth and achievement, he State Board of Education just to clarify existing procedures for char- but those schools are not closed down made it a lot harder for educa- ter applicants to follow.” when they fail to meet their targets. According to one analysis, six tion reformers to create innova- But critics say the new policies charter schools would have had their tiveT new charter schools, and much are in direct conflict with the charter charters revoked had this policy been easier for the board to close struggling school law, violate the contracts the in place over the last three years. But ones. state has with existing charters, and The changes to the SBE’s charter undermine one of the main purposes The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 school policy, adopted unanimously at of charter schools by penalizing inno- Continued as “State,” Page 4 PAGE 2 FEBRUARY 2010 | CAROLINA JOURNAL

C a r o l i n a Inquiries into Deals Taking Toll on Easley Team Continued from Page 1 Journal olations by Easley’s campaign commit- tee. At that hearing, developer Gary Rick Henderson Allen and businessman Lanny Wilson Managing Editor acknowledged writing checks to the N. C. Democratic Party under the as- Don Carrington sumption the money was earmarked Executive Editor for Easley, a violation of the law. • Campbell, a pilot and aircraft David N. Bass, Sara Burrows owner, testified at the hearing that he Anthony Greco, Mitch Kokai had flown Easley to numerous cam- Michael Lowrey paign events but never billed Easley’s Associate Editors campaign for the flights. He also tes- Jana Benscoter, Kristen Blair tified that on two Roy Cordato, Becki Gray occasions he billed Paige Holland Hamp, David Hartgen the Easley cam- Sam A. Hieb, Lindalyn Kakadelis paign for flying George Leef, Karen McMahan services that in fact Donna Martinez, Sarah Okeson reimbursed Camp- Karen Palasek, Lee Raynor bell for repairs to Marc Rotterman, Jim Stegall Easley’s Raleigh George Stephens, Jeff Taylor home that Camp- Michael Walden, Karen Welsh bell had paid for. Hal Young, John Calvin Young McQueen Campbell • At the con- Contributors clusion of the hear- The Cannonsgate development, showing the single home, the clubhouse and the Jacob Burgdorf ing, the elections board concluded that marina. Former Gov. Mike Easley’s lot is the first one on the left as you enter the Adrienne Dunn laws were broken and made a crimi- channel to the marina. (CJ photo by Don Carrington) Kamen Nikolaev nal referral to the Wake County dis- Editorial Interns trict attorney. Since Wake County DA by some as the “little governor.” acquainted with the governor’s po- Colon Willoughby considered Easley Easley’s attorney, Joe Cheshire of litical supporters, he also began assist- a personal friend, Raleigh, has asserted that Easley knew ing them in obtaining state board and Published by Willoughby asked nothing of Poole’s alleged illegal ac- commission appointments for them- The John Locke Foundation the Rowan County tivities. selves and their friends and family,” 200 W. Morgan St., # 200 district attorney to News stories by CJ and other the indictment states. Raleigh, N.C. 27601 Poole also developed a close so- take over the case. state media likely triggered the current (919) 828-3876 • Fax: 821-5117 cial relationship with Campbell, Wil- • In Decem- federal investigation of Easley’s real- www.JohnLocke.org son, and Wilmington attorney Fox. ber, Poole resigned estate transactions, Easley appointed Campbell to the from his job at the his acceptance of Jon Ham N.C. State University Board of Trustees Vice President & Publisher M c G u i r e Wo o d s free cars, his use of in 2001 and again in 2005. Campbell law firm in Raleigh free airplanes for Lanny Wilson was chairman at the time he resigned John Hood and his position on campaign activi- in 2009. Easley appointed Wilson to the Chairman & President the board of the grantmaking Golden ties, and a lucra- N. C. Real Estate Commission and the LEAF Foundation. tive job for his wife N. C. Board of Transportation in 2001. Bruce Babcock, Herb Berkowitz • On Jan. 4, a lawyer for Allen Mary at N.C. State Charlie Carter, Jim Fulghum Easley appointed Fox chairman of the and his development associates told University. Chuck Fuller, Bill Graham state Alcoholic Beverage Control Com- Pamlico County officials that his cli- The develop- Robert Luddy, Assad Meymandi mission in 2004. ent was abandoning the 680-acre Cut- Gary Allen ers identified in the Baker A. Mitchell Jr., Carl Mumpower, The indictment also alleges that ter Bay development. Allen sought a Poole indictment J. Arthur Pope, Thomas A. Roberg, Wilson provided Poole with several David Stover, J.M Bryan Taylor, refund of $2.96 million in impact fees include brothers Randy Allen and Gary Allen of Matthews, Campbell of free vacations to Costa Rica, a bachelor Andy Wells he had paid to the party in New Orleans, and an engage- Board of Directors Raleigh, and Wilson of Wilmington, all county for water. ment party in Wilmington. County commis- of whom were involved in Cannons- Carolina Journal is a monthly journal gate. The developers relied on Poole to In 2005, Wilson also allowed sioners voted Poole to invest $100,000 in Cannon- of news, analysis, and commentary on state help them secure environmental per- unanimously not sgate, netting Poole a $30,000 return and local government and public policy issues mits for Cannonsgate, Oyster Harbour to return the mon- in less than four months, according to in North Carolina. in Brunswick County, Summerhouse ey. the indictment. And in 2006, Wilson al- ©2010 by The John Locke Foundation in Onslow County, and Cutter Bay in Inc. All opinions expressed in bylined articles • The same lowed Poole to invest $100,000 in the Pamlico County, the indictment states. are those of the authors and do not necessarily day Poole was in- Summerhouse development, clearing In his role with the governor’s of- reflect the views of the editors of CJ or the Mary Easley dicted, Wilson re- $25,000 the next year, it alleges. fice, Poole became familiar with politi- staff and board of the John Locke Foundation. signed from the Poole failed to report his gifts cal supporters who needed assistance Material published herein may be reprinted as N.C. Department of Transportation and financial gains on his annual State- long as appropriate credit is given. Submis- board and a few days later resigned with regulatory matters pending with ment of Economic Interest, as required sions and letters are welcome and should be from the N. C. Turnpike Authority various state agencies. by law. directed to the editor. board. The 64-page indictment specifi- CJ readers wanting more information In 2004, Gary Allen made a Poole’s alleged criminal activi- cally claims Poole, 38, derived signifi- $50,000 donation and Wilson made a between monthly issues can call 919-828- ties began in January 2001 and contin- cant personal benefits by using his offi- 3876 and ask for Carolina Journal Weekly $10,000 donation to the N. C. Demo- cial position to expedite environmental Report, delivered each weekend by e-mail, ued throughout Easley’s eight years as cratic Party after they already had or visit CarolinaJournal.com for news, links, governor, according to the indictment. permits for coastal developers from contributed the maximum allowed by and exclusive content updated each weekday. During his tenure with Easley, Poole the Department of Environment and law to the Mike Easley campaign. Wil- Those interested in education, higher educa- became the person Easley’s political Natural Resources. (Go to carolina- son said he understood his donation tion, or local government should also ask to supporters needed to go through to ob- journal.com to read the entire 64-page would be earmarked for the benefit of receive weekly e-letters covering these issues. tain assistance from the governor. His indictment.) power was such that he was referred to “As Poole became personally Continued as “Inquiries,” on Page 4 FEBRUARY 2010 | CAROLINA JOURNAL PAGE 3 SBI Brought In to Investigate Duplin County Schools’ Money Matters Continued from Page 1 es for a move that did not occur, the alleged misuse of federal funds, and violations of the open bidding law in connection with the schools’ purchase of a $600,000 “camera project.” “The SBI is very busy,” Hudson said. “It takes a while for them to get going on something.” Hudson, who recently an- nounced he would run to fill the 10th Senatorial District seat of retiring Dem- state for its large immigrant popula- hand-picked four principals for me to his decision to leave the district. ocratic state Sen. Charlie Albertson, tion, most of whom are renters. interview. That hasn’t happened to me Outlaw, who is nearing the end would not discuss the reason for the “We could not afford to give in over 100 audits.” of his first term on the school board, investigation. “We don’t want to say them this money,” Commissioner Cary By contrast, Ricio also conducted opposed the lawsuit filed against the what our evidence is,” Hudson said. Turner said. “The state categorizes us an audit of Duplin County. “They were county and is not satisfied with the fi- Nathan Currie, director of Dup- as a low-income county and gave us very open and honest,” she said. “The nancial information he receives from lin County Schools’ special programs, $4.8 million.” county manager insisted on that.” the administration. received $6,500 in relocation expenses The district sued the county, and The school district should have “I haven’t been able to feel com- near the end of the 2007 school year. the jury awarded the schools $2.6 mil- been more transparent in its contact fortable that I know where all the mon- He began work with the district in lion. The county is appealing the deci- with Ricio, said Board of Education ey is going or how it’s spent,” he said. May 2007 and had been promised sion. School district officials objected member Jennings Outlaw. “It doesn’t surprise me that there are administrative supplement pay. The to the audit and threw roadblocks into “We didn’t give her access to peo- funds there that I’m not familiar with.” school board froze the supplements on the path of Linda Ricio, who conduct- ple freely enough,” he said. “The board Residents worry that an unusu- the day Currie began work. ed the audit in 2008. Her final report is was pretty well aware of the limita- ally high turnover rate among teachers He complained, and in a closed dated Feb. 16, 2009. Ricio is president tions put on her, but they did nothing. and other staff, as well as the SBI inves- session, the board agreed to pay him of Florida-based Evergreen Solutions. They set the time limits on the people tigation and alleged financial shenani- an equal amount as moving expenses. “I was blocked from interviewing she talked to. Sometimes it was at the gans, are continuing to move the dis- Currie lived with his mother in nearby many of the people I wanted to talk to, recommendation of the superinten- trict’s focus away from education. The Columbus County and apparently still and [school administrators] limited the dent or the finance manager. They said most recent final No Child Left Behind does. After what original minutes of the time of my interviews,” Ricio said. they didn’t want people to be away Annual Yearly Progress Report is for meeting describe as “considerable dis- A 20-year veteran of performance from their jobs too much.” 2007-08 and details dismal results for cussion,” the board agreed to disguise audits, Ricio has worked for districts A preliminary report on the local students. Only one of 16 schools the supplemental pay as relocation ex- as large as the Los Angeles Unified school audit showed hidden reserves met AYP goals. penses. Minutes later were altered to School District and others as small as, of $709,462, some of which involved “The implementation of higher remove evidence of the change. or smaller, than Duplin. She commonly federal funds. “[Duplin County Public proficiency standards for the 2007-08 The Duplin County Board of spends about 400 hours in a district the Schools] could not provide adequate year has brought many new challenges Commissioners requested the school size of Duplin County’s, but she was documentation to demonstrate man- to school systems across the state with audit after the school district asked for allowed only 100 hours to accomplish agement control over federal financial a solid [sic]. Duplin County Schools will $78 million in operating and construc- her goals here. assistance,” the report stated. continue to strive to meet these chal- tion funds. The district had overspent “I was not allowed to visit School finance officer Carolyn lenges and provide our students educa- its budget the previous year by $3.7 schools, and that’s an important part of Olivarez left Duplin County about tional foundation. Our focus will remain million. the audit,” she said. “I visit the schools six months ago. Dr. Wiley Doby, dis- on preparing our students for success in The county’s population is about and ask questions of school-level em- trict superintendent, has asked the higher education institutes and the 21st 53,000 residents, but only 13,000 are ployees. I usually spend at least an board not to renew his contract when century workplace,” reads the statement property owners who foot the vast ma- hour interviewing principals, but I it expires June 30. Doby did not return released by the district when the AYP re- jority of the bill. Duplin is second in the was allowed only 30 minutes and they phone calls seeking an explanation for sults were announced. CJ

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With links to the new CJTV and CJ Radio Web sites http://carolinajournal.com PAGE 4 FEBRUARY 2010 | CAROLINA JOURNAL State Raises New Charter School Barriers, Imperils Some Funds

Continued from Page 1 clear whether that means charter ap- plicants may not have nonlocals serv- 170 regular public schools that failed ing on their boards, or what type and the identical criteria would have been degree of diversity is required. allowed to continue operation, albeit The state board also has been re- with varying levels of state interven- luctant to answer questions about its tion and supervision. new charter school policies. A request What’s more, charter schools al- by Carolina Journal made to the Depart- ready have academic targets written ment of Public Instruction’s Commu- into their charters before they can begin nications and Information Division for operations, and the new policy would input on this story was acknowledged invalidate some of those targets. Crit- promptly, but two weeks elapsed be- ics question whether the board has the fore the division issued a statement. legal authority unilaterally to impose The statement, in its entirety, stricter academic standards than those read: “In looking at your materials, we it previously agreed to when granting President Obama and Education Secretary Arne Duncan, left, announce the federal do not feel that the State Board of Ed- the charter. Race to the Top program at a press conference in 2009. (U.S. Dept. of Education photo) ucation is out of compliance with the The tougher academic standards on expanded learning experiences for school law, it’s profoundly unfair. The charter school law. It is important to make it extremely risky for any group students who are identified as at-risk state has no business crafting poli- note that the State Board of Education to start a charter school aimed at serv- of academic failure or academically cies that in effect exclude some of its has to operate within the 100 school ing children in poorer areas. As one gifted.” neediest citizens from a chance at a cap that also is a part of state law.” critic with experience in the charter “At-risk of academic failure” is a better education.” Noting that areas in The stakes for individual charter school arena put it, “With the new term which refers generally to students which at-risk children are geographi- schools could not be greater. When the policy in place, I would not dare risk from poor families, or areas with a high cally concentrated also have some of SBE revokes a school’s charter, its stu- my time and treasure starting a charter concentration of ethnic minorities, or the poorest-performing public schools, dents can return to the district schools for any group of at-risk kids — rural, who are otherwise academically dis- Norcross said. “No other group of stu- to which they would have been as- inner-city, low-income, or whatever. I advantaged. But these are precisely the dents has a greater need of the charter signed, but all employees at the school would only seek out higher-income ar- students who would be left out in the alternative.” — teachers, administrators, and others eas where I could be assured of making cold by the board’s new academic stan- Only 48 percent of low-income — are left without jobs. the 60-percent threshold. And those dards policy. students in North Carolina’s regular The new policies also could ham- kids would do OK without a charter.” Paul Norcross, who chairs the public schools currently score at or per the state’s ability to compete for a That’s exactly the opposite of newly formed North Carolina Alli- above grade level as measured by the share of the Obama administration’s what the state’s charter school law ance for Public Charter Schools, thinks state’s own testing program. To meet Race to the Top education reform dol- calls for. The law’s stated purpose is that’s just plain wrong. “It’s not just the legal mandate of expanding op- lars. to “increase learning opportunities a violation of the spirit of the charter portunities for low-income students, One of the major criteria by which for all students with special emphasis any charter school that is not confi- states will be judged is the extent state dent it can beat the state average by 12 laws and policies facilitate the forma- percentage points (to make the now- tion and function of innovative charter required 60 percent) might as well not schools. Inquiries Take Toll on Easley Team try. North Carolina’s charter school For those willing to take the risk, law, with its cap of 100 schools, was Continued from Page 2 special treatment. the new policies raise other obstacles. ranked only 32nd out of 40 states that ”The governor paid the listed the Easley campaign — if true, a viola- The SBE now will consider an appli- have charter laws by the National Al- asking price for the lot. The price was cant’s commitment to “a large, diverse, liance for Public Charter Schools. And tion of campaign finance laws. Wilson set and non-negotiable,” she said at the testified at an October State Board of and locally based board” when decid- that was before the new policies went time. ing whether to grant a charter. It’s not into effect. CJ Elections hearing that Poole was in- She also said he bought the land volved in soliciting both donations. as an investment. In that story, the Cannonsgate at center newspaper also introduced McQueen Campbell as the person who brokered In April 2006, CJ reported that Ea- the deal for Easley. sley appeared to have received a bar- One year after Easley’s purchase, Share your CJ gain price on one of the choicest lots in the Carteret County tax office assigned Cannonsgate, a 525-lot, 287-acre gated a value of $1,198,245 to the lot, mak- subdivision located on the mainland ing it the second-most valuable prop- across from Emerald Isle Beach. His lot erty in the development. The develop- Finished reading all borders the Intracoastal Waterway and ment’s roads and other infrastructure the entrance to a new marina. are complete, but only one house has the great articles in this The Allen brothers developed been built. the project, and Wilson provided $12.5 In September 2009, The News & month’s Carolina Jour- million in short-term financing. Observer added considerably more in- Carteret County land records formation about Easley’s Cannonsgate nal? Don’t just throw it show that Dec. 16, 2005, Mike and purchase. Mary Easley paid $549,880 for the 0.36- The paper obtained Easley’s clos- in the recycling bin, pass acre lot. ing documents showing Easley was Records indicate that they paid given an additional 25 percent dis- it along to a friend or 10 percent down and financed the re- count — or $137,000 — at the closing mainder through a $494,000 mortgage in December 2005. neighbor, and ask them loan from Branch Banking & Trust. The real-estate market has The Charlotte Observer then pub- changed considerably, and several lished a similar story concluding that Cannonsgate lots have gone through to do the same. Easley got a favorable deal. Easley foreclosure, most likely making Eas- spokeswoman Cari Boyce told the ley’s lot worth much less than the most Thanks. newspaper that Easley did not receive recent tax value. CJ FEBRUARY 2010 | CAROLINA JOURNAL PAGE 5 Lawmaker Calls for Offshore Drilling, End to Global Warming Panel

By Donna Martinez Contributor RALEIGH Davie County Republican is urging fellow state lawmakers to stop wasting time and mon- Aey on the state’s climate change com- mission and support energy policy he says will have a tangible impact on the state. Sen. Andrew Brock says the leg- islature should move to tap the mas- sive natural gas reserve experts believe is sitting off the North Carolina coast. “This whole thing was based on a false set of principles and false data,” says Brock, referencing e-mails leaked last year from the University of East Anglia Climatic Research Unit. Climate change alarmists have relied on East Anglia data to justify mas- sive government intervention, includ- ing caps on greenhouse gas emissions and limits on fossil fuel consumption. “There’s no credible evidence that sup- ports that all the production by man- kind is affecting the global climate,” Brock said. The four-term conservative is a longtime critic of the N.C. Legisla- tive Commission on Global Climate Offshore drill rigs, sea life, sport fishing, and tourism have coexisted in Mobile Bay for more than 30 years. (CJ photo by Jon Ham) Change, created in 2005. He’s also a of a red herring.” Brock says boosting the natural That’s why the mills moved to North longtime supporter of offshore drill- Harrison says the commission gas supply especially would be help- Carolina,” he says. ing. Last month, as North Carolin- has considered the view of skeptics. ful to low-income North Carolinians. Eastern North Carolina is on ians endured a record-breaking deep She points to presentations by former He’s reminded of the need for low-cost Harrison’s mind as well. Potential sea freeze, Brock sent legislators an e-mail University of Virginia professor of alternatives when he sees constituents level rise is her concern. She says a calling for “the immediate dismissal” environmental sciences Pat Michaels, filling kerosene tanks. He says people presentation from Stan Riggs, profes- of the global warming commission. and a Beacon Hill Institute report de- would be surprised by how many sor of geology at East Carolina Univer- “He’s made similar remarks be- tailing the negative economic impact families rely on kerosene as their main sity, showed a lot of the Outer Banks fore, so it wasn’t entirely unexpected,” of renewable energy mandates. The heating source. could be under water in the next 30 says commission co-chair Rep. Pricey Beacon Hill report was produced for Two groups are studying the years. “That could do something to the Harrison, D-Guilford. She says she’s the John Locke Foundation. drilling issue — the General Assem- economy of eastern North Carolina,” comfortable with the accuracy of the “There’s been more from the side bly’s Advisory Subcommittee on Off- she said. science despite the East Anglia disclo- that we needed to act because that’s shore Energy Exploration and Gov. The Senate’s changing political sures. “We need to be concerned [about the predominant perspective being Perdue’s Scientific Advisory Panel on dynamic is likely to affect whether climate change], and I think the skepti- represented in the scientific commu- Offshore Energy. Brock’s recommendations gain trac- cism around the scientists is a little bit nity,” she says. Brock predicts General Assem- tion when the General Assembly con- bly leadership will thwart drilling venes in May. He says the election of even though a 2009 Civitas Institute Sen. Martin Nesbitt, D-Buncombe, as Books authored By JLF staFFers poll found seven of 10 North Carolin- Senate majority leader is a key change. ians support energy exploration some- Brock says moderate, business-friend- Efficiency and Externalities where off the coast. ly Democrats have been replaced by He’s also skeptical of claims that more liberal members, naming Speaker in an Open-Ended Universe offshore drill rigs and other infrastruc- Joe Hackney and Rep. Deborah Ross, ture would create coastal blight and D-Wake, in the House, and Nesbitt in hurt tourism. “You don’t see [drilling the Senate. “It really shows there’s a equipment] when you’re at the Gulf huge shift in the Democrat philosophy [of Mexico], you don’t see it in other in power in North Carolina,” he says. places,” he says. “And even [when] “I don’t know what will happen, but you do, it’s no different than seeing a I’ll say that more of the legislation will telephone pole outside your house.” be more left-leaning.” Harrison is on the fence about Election-year politics may pro- By Roy Cordato drilling. “I’m mixed about the need vide a check. Brock predicts Democrats Vice President for Research for offshore natural gas exploration will co-opt Republican ideas to show John Locke Foundation because I think there are plenty of sup- voters they’re listening to concerns “Cordato’s book is a solid plies on the mainland and I don’t think about taxes and spending. performance, demonstrating that it’s the answer. It’s the interim Last year, Civitas Action named impressive mastery of both step, and it’s not the answer,” she says. Brock the most conservative member the Austrian and neoclassical Brock also wants to look into of the N.C. Senate, giving him a rat- building a refinery in eastern North ing of 79 out of 100. His inspiration is literature.” Carolina to jump-start economic de- his grandfather, Burr Brock Sr., who Israel Kirzner velopment in distressed counties. He served 11 terms in the General Assem- Cato Journal would support incentives for energy bly. “He would put his voting record www.mises.org exploration and expansion. “Economic … in a piece of paper and that was development follows energy. Period. his campaign information.” CJ PAGE 6 FEBRUARY 2010 | CAROLINA JOURNAL

N.C. Briefs Bail Agents Spar with Government System Dems vow to fight on Two of North Carolina’s taxpayers $2 billion a year — funds that would otherwise leading Democratic congressmen Advocates face off over pay for prison and court costs associated with pretrial re- have vowed to continue fighting lease — and the commercial bail system benefits students for health care reform backed by since bond forfeitures go to the public school system, Car- their party in the U.S. House even public vs. private pretrial tret said. though a special election in Mas- “It’s a major asset to our criminal justice system,” he sachusetts has dimmed the chances said in a telephone interview. release options But not everyone shares that view. “I don’t think mon- a compromise can be reached. ey has a place, period, whether it’s private surety or whether On Jan. 19, voters in the Com- By David N. Bass Associate Editor it’s money that is returned to you,” said Tim Murray, execu- monwealth elected Scott Brown, a RALEIGH tive director of the Pretrial Justice Institute. “I don’t think three-term Republican state senator, money does anything but separate those who have money to fill the U.S. Senate seat held by n a scuffle pitting tax dollars versus private funding and the public sector against the free market, the bail bonds from those who do not.” the late Ted Kennedy since 1962. industry in North Carolina says that government-funded Only about half of defendants make bail when it’s set, Brown’s win means that pretrialI release programs seek to run them out of business. Murray said. Defendants sit in jail not because they are a Senate Democrats won’t have the Advocates of the public pretrial release programs say danger or a flight risk, but because they “don’t have the 60-vote supermajority necessary to the commercial bail industry discriminates against the poor stinkin’ money,” he said. invoke cloture and block further de- and skews the system because it’s for a for-profit enterprise. Supporters of bail agents disagree, saying that bail is bate so that a final vote can be taken. The conflict came to a head in September when the effective and safe. They point to statistics from the U.S. De- But two top members of North National Association of Pre- partment of Justice showing that after one year, 3 percent Carolina’s congressional delegation trial Services Agencies held of defendants released on a say the results won’t stop their ef- its annual conference in surety bond failed to appear forts to pass a health care overhaul. Charlotte. in court, compared with 10 “I plan to pay close attention Supporters of the bail percent of those released on to what the people I represent think, system claim that members unsecured bonds. but I don’t plan to oppose health of the association spread lies PJI published a re- care reform just because Scott Brown about the effectiveness of sponse arguing that the did,” said Rep. Brad Miller, D-13th. bail agents and advocated Justice Department’s study Rep. David Price, D-4th, doing away with the indus- wasn’t designed to gauge the who joined Miller in voting for the try altogether. effectiveness of bonds ver- House version of the health care “They are using their sus taxpayer-funded pretrial bill, admitted that the special elec- conference to discredit the release programs because it tion in Massachusetts “creates ad- use of private bail and the didn’t control for all factors ditional challenges, but we always benefits this system provides involved. knew reform would be tough.” communities and the state,” Still, supporters of He added that President wrote Mark Cartret and Larry Mackins, two advocates of commercial bail say the study shows that bonds help ensure defendants are processed through the system properly. Obama and majorities in Congress commercial bail bonding, in a letter to the editor published As to the question of eliminating private bail altogeth- “are committed to enacting fis- Sept. 16 in The Charlotte Observer. er, pushers of the government-funded pretrial release op- cally responsible health reform Since colonial times, judges have used commercial bail tion wouldn’t tell CJ whether that was their goal. Instead, that provides greater health care bonds as a way to release prisoners awaiting trial. Courts they said that bonds are appropriate in some situations. affordability, accessibility, and began resorting to the state-sponsored pretrial release meth- od in the 1960s. “There may come a time when somebody might have accountability to Americans.” Traditionally, courts assess a defendant’s flight risk to have bail, but it should be bail that they can afford — and set a corresponding bail amount. If the defendant is un- bail that would ensure their return, but money that’s re- able to pay, he or she can secure the services of an agent turned upon disposition of the case to them,” said Peter N.C. ranks low on charters who will post bail in exchange for a service fee. The agent is Kiers, president of NAPSA. CJ then responsible for ensuring that the North Carolina ranks 32nd out defendant shows up at the appointed of 40 states in a new analysis of charter court date. school laws created by the National Taxpayer-funded pretrial release Alliance for Public Charter Schools. programs, in contrast, remove profit The study assesses the strengths from the equation by turning over the Visit our Triad regional page bail agent’s role to the government. of each state’s charter school law http://triad.johnlocke.org against the 20 essential components Court officials interview defendants of a strong law contained in the new awaiting a bail hearing, assess their model public charter school law risk of flight or harming others, and The John Locke Foundation released by the alliance in June 2009. recommend limitations on their re- has five regional Web sites span- “These new rankings not only lease aimed at curbing those risks. ning the state from the mountains show which state laws are mak- The bail bonds system has been to the sea. ing the grade, but also show how around since biblical times, but today they do it: by paying attention to only the United States and the Philip- pines have it as the dominant industry, The Triad regional page includes specific issues that are crucial to according to The New York Times. Four news, policy reports and re- school and student success,” said states — Illinois, Kentucky, Oregon, president and CEO Nelson Smith. search of interest to people in and Wisconsin — have banned private North Carolina made the list the Greensboro, Winston-Slem, bail altogether. High Point area. of 13 states the alliance says have In North Carolina, the industry is failed to meet a key test of the Race alive and flourishing. More than 1,300 to the Top guidelines because they licensed agents operate in the state, ac- It also features the blog Pied- cap the number of charter schools cording to Cartret, who is president of mont Publius, featuring com- allowed under law in order to inhibit the N.C. Bail Agents Association. The mentary on issues confronting growth. The state has a 100-school industry is regulated by the Depart- Triad residents. cap and allows a maximum of ment of Insurance. CJ five schools per district. Bail agents save North Carolina The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 FEBRUARY 2010 | CAROLINA JOURNAL PAGE 7 Stimulus Money Sent to Phantom ZIP Codes in North Carolina

By Sara Burrows Recovery i n s t a n c e , the contracts created no new jobs. Associate Editor Act Jim the Small The actual recipient of the RALEIGH Gilio said B u s i n e s s $367,000 sent reportedly to 27600, an- he federal government sent 2.5 the illegiti- Adminis- other bogus ZIP code, is Blue Ridge million stimulus dollars to North mate ZIP t r a t i o n ) , Opportunity Commission in Sparta Carolina ZIP codes that don’t ex- codes were said the (actual ZIP 28675). The commission is Tist. p ro b a b l y $ 6 3 , 0 0 0 a social-service agency that weather- The information came from the i n n o c e n t was a loan izes homes for low-income families. It government’s own Web site — Recov- mistakes. to Uplift also assists with families’ food, cloth- ery.gov — which was set up to track He said C o s m e t i c ing, and fuel bills. That grant created the distribution of the $787 billion the list was Surgery, a no jobs. made available by the American Re- compiled Charlotte Ed Pound, communications di- covery and Reinvestment Act. based on information reported by re- surgical center. rector of the Recovery Accountability “This is the first time the federal cipients of the funding, and that they Dr. Geoffrey Stiller, who owns and Tranparency Board, which oper- government has attempted to provide most likely made data entry errors. Uplift, said he never received a gov- ates Recovery.gov, said that the money such expansive accountability and “There’s really no story here,” he ernment loan — he’s never asked for had all been accounted for. “There is transparency,” states a tutorial on Re- said in a telephone interview. “Every one, and no one’s ever offered him one. no missing money,” he said. “It didn’t covery.gov. “Any American citizen project was real. There’s never been a “What is the Recovery Act?” he disappear, and it wasn’t stolen.” should be able to find what they’re question about whether a real recipient asked. Pound pointed out that only 450 looking for on this site. The data is pre- received the money.” Stiller never had heard of Recov- of the 131,000 ZIP codes listed on the sented in easy-to-find, easy-to-sort and Gilio suggested using the Web ery.gov and was shocked to find that site are inaccurate. Although it may easy-to-use ways.” site to search by dollar amount rather his business was listed on the site as a seem like a relatively small portion of The site lists 479 North Carolina than by ZIP code. While the “funds recipient of stimulus money. the $787 billion Recovery Act, those ZIP codes as the recipients of $4.2 bil- by ZIP code” page lists data provided “The last thing I want is to be 450 ZIP codes still represent hundreds lion in grants, contracts, and loans. by recipients of stimulus funding, the paying taxes on money I didn’t re- of millions of dollars in spending. Four of those ZIP codes, however — “funds by amount” option delivers ceive,” he said. Pound also said the Web site is 24858, 28389, 23854, and 27600 — are data from the agencies providing the The street address Recovery.gov undergoing improvements. In the fu- nowhere to be found on U.S. Postal money. provides for the surgical center does ture, the system will reject data from Service maps. In all four ZIP codes Also, using the “Text View of not exist. Stiller said it is strange it recipients who attempt to enter non- combined, the Web site reports, the Map Data” page, entering “North Car- would list an address at all, as his old existent ZIP codes. There are no plans, $2.5 million created 0.5 jobs. olina,” and the bogus ZIP codes, deliv- office closed and he’s in the process of however, to correct retroactively the in- All North Carolina ZIP codes ers the destination of this hard-to-find searching for a new location. correct ZIP codes now on the site. start with 27 or 28, so projects listed tax money. He recently did take out a small- The stimulus bill initially allocat- in 24858 and 23854 ZIP codes would For instance, the $34,096 figure, business loan to help open his new ed $84 million for the recovery board not be based in North Carolina, even if corresponding with the phony 24858 practice, but said it was from a private to set up the Web site, which is directed such ZIP codes existed. ZIP, could be found on the agency- bank. “to simply and regularly communicate The Philadelphia-based Franklin reported data page along with the cor- Entering the unreal ZIP 23854, detailed information on how govern- Center for Government & Public Integ- rect ZIP code, 27834, and the correct where $2.1 million reportedly went, ment agencies are planning to use the rity reported in January that the feder- recipient, East Carolina University. leads to contracts to construct a build- money, how the stimulus money is ac- al government’s Web site had assigned Where the $63,000 assigned to ing at Camp Lejeune. (The Web site er- tually being used, and how many jobs $375 million in stimulus spending phony ZIP code 28389 went is still un- roneously states that the Marine Corps have been created or saved.” In July, nationally to at least 170 nonexistent clear. base, the largest on the East Coast, is in ABC News reported the board spent ZIP codes. In December, the Franklin According to recipient-reported Virginia.) The contractors are located in an additional $18 million upgrading Center found that nearly $6.4 billion in data, the money was spent on a con- New Bern, Wilson, Greenville, Greens- the site. stimulus spending had been attributed tract with Wayne Futrell Construction boro, Jacksonville, and Lumberton — The site was last updated in Octo- to 440 phony congressional districts. and Tile Co. in Warsaw. But the page none with ZIP codes similar to 23854. ber 2009. To date, the faulty ZIP codes Deputy Press Secretary for the reporting data from agencies (in this By the government’s own estimates, have not been corrected. CJ Free Choice for Workers: A History of the Right to Work Movement

By George C. Leef Vice President for Research at the John William Pope Center for Higher Education Policy

“He writes like a buccaneer... recording episodes of bravery, treachery, commitment and vacillation.” Robert Huberty (Call Jameson Books, 1-800-426-1357, to order) Capital Research Center PAGE 8 FEBRUARY 2010 | CAROLINA JOURNAL Forbes: Government Causes Crises, Free Markets Get Blamed

By CJ Staff RALEIGH “I think the American people realize that Wash- apitalism has faced heavy criti- cism during the past couple ington’s program of binge spending, raising tax- of years. Some pundits have es, trying to take over health care, is not the way blamedC free markets and other ele- ments of the capitalist system for the we’re going to get our country on a good growth nation’s economic slump. Steve Forbes, chairman, CEO, and editor-in-chief of path in the future.” Forbes Media, rebuts those pundits in the book How Capitalism Will Save Us: Steve Forbes Why Free People and Free Markets Are Editor-in-Chief the Best Answer in Today’s Economy. Forbes Media Forbes discussed the book with Mitch Kokai for Carolina Journal Radio. (Go to http://www.carolinajournal.com/ cjradio/ to find a station near you or to learn about the weekly CJ Radio pod- years ago, whoever heard of Bill Gates? does not mean you’re going to be rich phone? It was big as a shoe box, very cast.) He was just a middle-class kid. Steve tomorrow. You see people move up expensive, clunky. Now it’s something Jobs, abandoned by his biological par- and down all the time, which in a dy- that’s sleek, cheap, everyone has them Kokai: You say capitalism will ents. Larry Ellison of Oracle was an namic economy is the way it should be. — 4 billion around the world. It does save us. Why are you right? orphan, and so these people do spring Unless you’re doing something posi- things we would have put in science up, even during the terrible 1970s. You tive, you’re not going to stay on top. fiction 20 years ago. The only thing it Forbes: Well, when you look at had FedEx rise up, Southwest Airlines, doesn’t do for you now is dress you in the great crises, this one and previous Oracle, Apple, Microsoft. These things Kokai: I have one more rap for the morning, but it seems to be doing ones like the Great Depression or the are incubating. New ones are incubat- you. This is one we hear quite a bit. everything else. great inflation of the 1970s, we found ing now, and that’s how you surge Taxes are an investment in the public that it was government policy that ahead. good, so the flip side is that tax cuts Kokai: I suspect much of our brought about the crisis, and in each must hurt the common good. What’s audience will agree with what you’ve case, the private sector — free markets Kokai: I’d like to tackle some your response? said, but some people out there are go- — get the blame. In the most recent di- of the items mentioned on the book’s ing to say, “Wait a minute, here’s a rich saster, the Federal Reserve printed too jacket. You mentioned several aspects Forbes: The reality in taxes is guy, the head of Forbes, telling us to much money. You wouldn’t have had a of the rap against capitalism, and then when you lower tax rates, and there- support a capitalist system that helps housing bubble if they hadn’t printed contrast that rap with the reality. First, fore don’t provide disincentives to rich people. Why should we listen to so much money. Fuel wouldn’t have capitalism is blamed as an amoral sys- people, people will do more. They will him?” been there for it. Two government cre- tem based on the survival of the fittest. work more productively. They will ations, Fannie Mae and Freddie Mac, What’s the reality? take more risks. They’ll do more posi- Forbes: Well, just look at those underwrote $1.5 trillion of junk mort- tive things, and, therefore, the govern- who’ve made it in capitalism, whether gages. If the government hadn’t done Forbes: The reality of capitalism ment comes out ahead when you have it’s my grandfather, who was an im- those things, we wouldn’t have had is that it is a moral system because it a prosperous economy. migrant to this country, one of 10 chil- this disaster. Yet it’s free enterprise that meets the needs in a free enterprise dren, grade-school education, or the gets the blame, not those who made it system, meets the needs and wants of Kokai: So if all of these things people who are making positive things possible — the federal government. you’ve mentioned are the reality, why other people. You don’t succeed un- happen today. I mentioned Michael does capitalism in general get such a less you provide a service or a product Dell. What was Michael Dell? He was Kokai: The title of your book bad rap? that people want. So it’s a mutually a college kid who had a love of com- could have been How Capitalism Could advantageous transaction. You go to a puters, and look how he revolution- Save Us, or How Capitalism Should Save Forbes: Capitalism has a bad rap restaurant. You want the food; the res- ized the personal computer business. Us. You wrote How Capitalism Will Save because a lot of people, especially in taurant wants your money. You get the Those are the people who make things Us. Why? the culture, don’t understand it. You food; they get the money. You both get happen, and those who relax and try to something out of it. see Hollywood — who’s the villain? Forbes:: I think the American It’s always some big corporate execu- enjoy their wealth, soon lose it. people realize that Washington’s pro- Kokai: Here’s another rap: Capi- tive. Entrepreneurs of the past are mis- gram of binge spending, raising taxes, Kokai: A lot of people seem pes- talism favors big players with too cast as villains of the piece; capitalism trying to take over health care, is not is about crushing the poor, and about simistic these days about the course of much power who are able to crush the the way we’re going to get our country greed, and all that sort of thing. We our country, but the title of your book, little guy. What’s the reality? on a good growth path in the future. I hope the book, which is written in a How Capitalism Will Save Us, sounds think people are going to be recogniz- very conversational tone — Q&A for- pretty optimistic. Why are you so op- Forbes:: The reality is in a true ing again the virtues of a free people, mat — enables people to get a better timistic about the future? free market it is the entrepreneur who free markets, where entrepreneurs can understanding of a system that, if al- create new businesses, create new jobs, often comes in with very little and up- lowed to work, benefits all of us. If it’s Forbes: Well, I think the Ameri- and the government’s task is to create ends existing structures. You look at not perverted by government, and you can people instinctively understand an environment where risktakers can the personal computer 30 years ago. have proper rules and regulations, we what Washington is doing is pro- go out and try to do their thing. You Who are the major players in that? all move ahead. foundly wrong, that it’s laying a foun- need sensible rules of the road, but Companies like Apple, companies like dation for a devastating future, so I that’s very different from the govern- Dell that didn’t exist a few years be- Kokai: You’ve written a book to think things are going to be turning ment trying to do everything for us. fore. battle misperceptions about capital- around. A key among them [is] stabi- ism. What other things need to be done lizing the American dollar, not treat- Kokai: People will have to read Kokai: How about this one? The to challenge this bad rap? ing it like trash, reducing the tax bur- the book to get the details, but what’s rap is that under capitalism the rich den on people instead of increasing your general outline of how capitalism prosper at everyone else’s expense. Forbes: I think just doing more to it, giving patients more control over will save us? What’s the reality? understand it, and to just look around health care instead of government bu- us. What makes possible the delivery reaucrats and insurance companies. Forbes: The general outline is: Forbes: You only get rich in a free of all the goods and services we take So just as in the 1970s, which you let entrepreneurs, or risktakers, market if you’re providing those prod- for granted? The movement of electric- was a terrible decade, economi- go out and start new businesses, or ucts and services that other people ity, delivery of food, PCs, cell phones. cally, followed by reforms of Ronald expand existing ones. For example, 30 want, and because you’re rich today I mean, 20 years ago, what was a cell Reagan, we had a 25-year boom. CJ FEBRUARY 2010 | CAROLINA JOURNAL PAGE 9 Taxing Online Travel Services Next Revenue Grab?

By Sara Burrows enact a new tax that would apply spe- Associate Editor cifically to the service fee. RALEIGH Creating a new tax would not crambling to find new sources of generate as much money as applying revenue, the state is looking into an old one, since the state could not taxing services provided by on- collect the new tax retroactively, as cit- Sline travel agencies, such as Expedia, ies that have extended hotel taxes to Travelocity, and Priceline. online travel agencies have attempted Among the alternatives be- to do. ing considered by the Revenue Laws Weinstein said that while enact- Study Committee — which is looking ing a stand-alone service tax would at a host of tax reform proposals — is be more honest than applying the oc- the notion of taxing the service fee on- cupancy tax, the endeavor would still line travel companies charge for book- backfire. ing hotel rooms. Doing so, legislative “A tax that hit the tourism in- researchers said at a January meeting, dustry would have a counterproduc- could raise between $6 million and $8 tive impact,” he said. While cities and million a year in new revenues. states might “collect more money tem- The state now applies the sales porarily, they’d lose revenue in the tax rate to hotel rentals, with 5.75 per- long run by discouraging tourism.” cent going to the General Assembly Weinstein also noted the com- and the remaining 2 percent to 2.25 State legislators say taxing online travel service fees could bring in between $6 mil- plexity online travel agents would face percent directed to local governments. lion and $8 million to state coffers. if they were forced to collect separate Many cities and counties also charge covery charge. The hotel gets the room amount the customer pays is a service taxes charged at the state and local lev- separate hotel occupancy taxes, with rate, the OTC collects the service fee, fee, he said, not a markup on the price el. There are 7,000 taxing authorities rates ranging from 3 percent to 8 per- and the taxes are forwarded to the gov- of the room. around the country. If every city and cent. ernment. The fee, ranging from 5 percent county had different policies, he said, Trina Griffin, a member of the The tax is based on the discount- to 30 percent of the room rate, is a ser- it would become impossible for travel General Assembly’s research divi- ed room rate, which she refers to as vice charge for providing a Web site for companies to keep track of how much sion, suggested that current state and the “wholesale rate,” and not on the consumers and facilitating the reserva- tax should be collected for each reser- local sales taxes applied to hotel rent- amount the customer actually pays, tion, Weinstein said. vation. Double or even triple taxation als could be extended to online travel which she calls the “retail” or “mark- “It’s a creative interpretation of also might occur if cities, counties, and agents’ service fees by considering the up” rate. Some state officials think tax- the law to twist service charges into states imposed separate taxes. fees a “markup” on the price of hotel es should be assessed on the full price part of the cost of the hotel room,” he “The possibilities become stag- rooms. of the room rather than the discounted said. “The occupancy tax was intend- geringly complicated,” Weinstein said. “Online travel companies (OTCs) rate the hotels collect. ed to be interpreted narrowly to apply “To have that many taxing authorities contract with hotels for the right to Andrew Weinstein, a spokesper- only to the cost of the room.” would drive online travel agencies out broker or facilitate room reservations son for the Interactive Travel Services Room service and parking servic- of business.” at a discounted rate,” stated a slide in Association, a trade group, says on- es, for example, are not covered by the He also said it would be unfair Griffin’s PowerPoint presentation to line travel agents should not be taxed occupancy tax, he said. to tax Internet-based travel agencies the committee. The OTC then sells the as hotel operators because they do not Weinstein suggested any propos- for their services without also taxing room to a customer at a slightly higher operate hotels. al at the state or local level to tax online brick-and-mortar travel agencies. price, which reflects the discounted Moreover, the difference between travel agents separately would have Roy Cordato, vice president for room rate, a service fee, and a tax re- the amount the hotel receives and the tough sledding in court. Although research at the John Locke Foundation, several cities and counties across the agrees with Weinstein. country have sued online travel com- Tax laws should not discriminate panies to collect the tax, most have lost against Internet companies, Cordato their cases. And when local govern- said. Nor should they treat certain ments have won, the decisions have goods or services differently than oth- Visit our Triad regional page been appealed. ers. Six of the seven federal courts North Carolina now taxes only http://triad.johnlocke.org that have ruled on the issue have sided a handful of services, including tele- with travel companies — including communications, video programming, The John Locke Foundation the 4th U.S. Circuit Court of Appeals, electricity, and laundry and dry clean- has five regional Web sites span- which last year overturned Pitt Coun- ing services. ning the state from the mountains ty’s attempt to impose its local occu- Lawmakers are looking into tax- to the sea. pancy tax on online travel agents. ing more services, including haircuts “The facts are on our side, the and lawn mowing. law is on our side, and, most impor- Cordato said this is not fair. If The Triad regional page includes you’re going to tax some services, tax news, policy reports and re- tantly, common sense is on our side,” Weinstein said. “If you’re not a hotel, all of them, he argued. search of interest to people in you shouldn’t pay hotel taxes.” As they stand, he said, “all ser- the Greensboro, Winston-Slem, Griffin said the state most likely vice taxes are discriminatory.” Govern- High Point area. will wait for pending court cases to be ment picks and chooses services to tax decided before acting. If federal appel- “based on where the money is” easiest It also features the blog Pied- late courts cannot agree on the legal- to collect, not necessarily where the mont Publius, featuring com- ity of the tax, the issue could reach the most revenue can be found. mentary on issues confronting U.S. Supreme Court, she said. “This is nothing more than a money grab,” Cordato concluded. Triad residents. North Carolina would have an- other option if the occupancy tax can- “They’re doing this because they don’t not be applied to online travel agen- want to make hard choices with re- The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 cies, Griffin said. Lawmakers could spect to spending.” CJ PAGE 10 FEBRUARY 2010 | CAROLINA JOURNAL

COMMENTARY Wake Schools Release Checking Slither to The Top Account Numbers of Resident By David N. Bass Federal Trade Commission includes hroughout his campaign and innovation worth expanding in Associate Editor both account and routing numbers on during most of his first year North Carolina. RALEIGH its complaint and affidavit form for in office, Barack Obama de- On the same day, the chair- potential loophole in North victims of identity theft. claredT that charter schools would be man of the Standing Committee on Carolina’s open records law The open records law doesn’t ad- an important component of his edu- Education for the National Confer- has come to light after the Wake dress the issue of account and routing cation agenda. It was a commitment ence of State Legislatures, N.C. state ACounty Public School System in mid- numbers specifically, said N.C. Press that his reform-minded Secretary Rep. Larry Bell, also sent a letter January released a copy of a resident’s Association lawyer Mike Tadych. But of Education Arne Duncan shared. to Duncan strongly criticizing the personal check that included her signa- an individual can request ahead of time ture and account and routing numbers. that such details be redacted before a When the time came for the Obama Obama administration’s support The general statutes governing document is released to the public. The administration to introduce its plan, for increasing the number of charter public records bar the government government agency would then be it was no surprise that Obama and schools nationwide. Ironically, Bell from releasing information that reveals “safe” in withholding the information. Duncan made charter schools one of introduced a bill during the 2009 an electronic account number, but they Tadych said he doubts a judge the centerpieces. legislative session that would have don’t address written checks. Legal ex- would side with a plaintiff who ar- Obama’s first major education raised the cap on charter schools, perts say that ambiguity could result in gued that the government violated the initiative is a $4.5 billion program albeit the legislation would have taxpayers’ personal account informa- open records law by redacting account called Race to the Top. Race to raised the cap only from 100 to 106. tion being spread to third parties. and routing numbers from a personal the Top is a competitive Upon publication “Based on the reasoning of the check. Nobody would need the ac- grant program initially of the final Race to the school system for disclosing one per- count number for purposes of govern- designed to reward states Top guidelines, Center son’s check to ment trans- that embraced promising for Education Reform a third party parency, he educational innovations president Jeanne Allen ob- as public in- said. and reforms like charter served, “Specifically, the f o r m a t i o n T h e schools. Unfortunately, ‘Race to the Top’ — which under the state’s gen- the Obama administra- had been touted as a boon statute, they eral statutes would be prohibit the tion has retreated from a for charter schools — now hard-pressed release of in- purported commitment de-emphasizes charters, to withhold f o r m a t i o n to charter schools — and TERRY even allowing states with- a public re- that reveals education leaders and out charter school laws to STOOPS cords request Check with routing numbers, address and signa- “an account elected officials from qualify for federal fund- for a batch of ture obscured by CJ. number for North Carolina partly ing.” Perdue was ecstatic, checks that e l e c t r o n i c were to blame. telling The New York Times, someone wanted to post on the Inter- payment,” such as for a “charge card, Through the first half of 2009, “Secretary Duncan listened to us, net or publish in a newsletter,” said credit card, debit card, or by electronic Duncan warned state education and that’s phenomenal. I’m really Jason Kay, a senior attorney with the funds transfer.” officials that artificial caps on the pleased.” N.C. Institute for Constitutional Law. “I’m not sure why the laws don’t growth of public charter schools The prospect of receiving The rift surfaced after Kristen make the information confidential would put them at a competitive more federal dollars — without Stocking, a founding member of the when it comes to the personal account disadvantage for Race to the Top the bother of lifting the cap on conservative parent group Wake Com- numbers, home address, or signature funds. charter schools — stirred North munity Schools Alliance, wrote a $300 image present on a personal check,” With Duncan’s warning and Carolina’s education establishment check to the school system to cover Kay said. “I think most folks would hundreds of millions of dollars on into unprecedented action. Perdue partial costs of a reception Dec. 1 for be surprised that this information has the school board’s new members. been deemed ‘public.’” the line, the Democratic majority in assembled a team of 150 to prepare The school system’s public in- A vocal parent group that has the General Assembly (ever obedi- an application for Race to the Top formation office didn’t redact account spent years advocating school reform, ent to the will of public school ad- grants. In the end, Perdue requested details on the check before making a WCSA endorsed four conservative vocacy groups) refused to pass bi- $470 million in federal funds, a copy available in response to a public candidates in last fall’s election. Those partisan legislation that would have portion of which would fund her records request from the Wake Educa- candidates won in October and No- raised or ended the 100-school cap mediocre “Ready, Set, Go!” educa- tion Partnership, a left-leaning group vember, solidifying a reform majority on charter schools. North Carolina’s tion initiative. opposed to many of WCSA’s positions. on the school board for the first time cap has existed since 1997, and it Of course, changes in rules “I would be hard-pressed to look in decades. remains one of the most restrictive and regulations tell only part of a lawyer in the face and say we redact- Stocking said it “never even in the nation. the story. The U.S. Department of ed the info when it wasn’t mandated crossed” her mind that someone would Two weeks before the legisla- Education will award the first Race by state law,” said Michael Evans, chief request her check be made public. ture adjourned, Gov. Bev Perdue, to the Top grants in April. Will they communications officer for the school “It’s just common sense. You State Superintendent June Atkinson, provide funds to states that have district, in a telephone interview. don’t put out people’s personal State Board of Education chair Bill charter school caps or no charter Evans said he couldn’t find any checks,” she said. Harrison, and representatives from schools at all? Rewarding states that reference in the state’s general statutes Stocking is also upset because North Carolina’s largest public restrict or prohibit charter schools protecting the type of financial infor- she says the school system originally mation on the check once it’s in pos- quoted WCSA a rate of $300 for the re- school advocacy organizations sent would be an implicit endorsement session of the government. ception, but the superintendent’s office a letter to Duncan complaining that of the kind of anti-charter sentiment “If I would go to a meeting and ended up billing the group $693.83. charter school caps should not pre- that pervades states like North take possession of a document, even Joe Ciulla, Sarah Redpath, and clude a state from receiving Race to Carolina. CJ though it’s a private meeting, it be- Stocking — all three WCSA leaders — the Top funds. The letter suggested comes a public document. And like- initially said they would pay for the re- that virtual schools, early college wise with this check,” he said. ception themselves, but backed down schools, and other novelty schools Terry Stoops is education policy Bank account and routing num- in protest over the heftier bill. Taxpay- were the only forms of educational analyst at the John Locke Foundation. bers can be used to commit electronic ers likely will underwrite the remain- identity theft or to forge checks. The ing portion. CJ FEBRUARY 2010 | CAROLINA JOURNAL PAGE 11 ‘Mystery Meat’ Could Become Reality in N.C. School Districts

In response to the food-safety revelations, U.S. Secretary of Agricul- No state, local checks ture Tom Vilsack and members of Con- gress have pledged to step up efforts on school-lunch food ensuring the quality of school lunch foods. Action on the issue could come donated by feds this year as lawmakers are set to revise the Child Nutrition Act, the federal law By David N. Bass that governs school meal subsidies. Associate Editor An analysis released in August RALEIGH by the U.S. Government Accountabil- t arrives by the truckload: frozen ity Office found that the federal gov- meat that ends up on the plates ernment didn’t always properly notify of thousands of students in North states about potentially tainted prod- ICarolina schools every day. One-fifth ucts provided through the commodi- comes courtesy of the federal govern- ties program. ment; school districts purchase the rest The GAO recommended that through private distributors. government agencies involved in the But a recent article in USA Today school-lunch process improve commu- — which found that safety standards Lax inspection of federal surplus meat that finds its way into school lunches has nication during recalls. for beef, chicken, and other meat do- some officials worried. (CJ file photo) New York U.S. Sen. Kirsten Gil- nated by the U.S. Department of Ag- three years “that wouldn’t meet the school lunches. librand, a Democrat, has sponsored a riculture are frequently less stringent quality or safety standards of many North Carolina ordered 4.8 mil- bill that would improve the USDA’s than for fast-food restaurants — has fast-food restaurants.” lion pounds of chicken, 1.8 million ability to halt the distribution of “sus- advocates concerned. McDonald’s, Burger King, and pounds of turkey, and 3.4 million pect commodities and products” and State and local nutrition officials Costco, for example, check the patho- pounds of beef from the USDA for the streamline the food recall process. The don’t check whether commodities gen content of beef five to 10 times current school year, according to docu- bill was assigned to a committee in donated by the federal government, more frequently during a typical pro- mentation provided by Gay. September but hasn’t come up for con- amounting to 12.5 million pounds in duction day than the USDA does for A general rule of thumb is that sideration. North Carolina for the 2009-10 school its meat. The USDA supplied schools 20 percent of school lunch food comes Both liberal and conservative year, are high quality, or even whether with “thousands of tons of meat from from the USDA, Gay said. School dis- critics have objected to the quality of they’re safe for kids to eat. old [chickens] that might otherwise go tricts purchase the rest from private school lunches and their impact on For some observers, that’s bring- to compost or pet food,” the newspa- distributors such as U.S. Foods, Sysco, childhood obesity and diabetes rates. ing a whole new meaning to the pro- per reported. and Institution Food House. The potential for waste, abuse, and verbial “mystery meat” served in In North Carolina, frozen meat Gay said that if he were a par- fraud in the program also has caught school cafeterias. from the USDA arrives by the truck- ent reading the USA Today article, “it the attention of conservative reform- “I wouldn’t go near it. It looked load and is then distributed to school would alarm me, raise some concerns, ers. horrible,” said Larry Sand, a school- districts. There are no state-level qual- and make me ask some questions.” He Sand said he was “amazed” at reform advocate and retired Title I ity checks unless the meat is obviously added, though, that school officials tell how few students actually ate all of coordinator at a Los Angeles middle tainted, such as being thawed out. him that commodities from the USDA their school lunches at his middle school, when describing the usual fare “We follow the same plans the are better than food from private dis- school in Los Angeles. offered by school cafeterias. feds do. We store it just like the feds tributors. “When I was in a café, kids would The question is relevant since tell us to,” said Gary Gay, an official “We love commodities,” he said. have two bites of the food and then USA Today found evidence that the with the N.C. Department of Agricul- “We never really have any bad com- throw it out,” he said. “The amount of government served meat over the last ture who oversees food distribution for plaints.” food wasted is mind-boggling.” CJ PAGE 12 FEBRUARY 2010 | CAROLINA JOURNAL

Race to the Top Could California School Reforms Eventually Reach N.C.? By Karen McMahan to the Top,” Stoops said, pointing to Contributor recent reports that some states are try- RALEIGH ing actively to prevent North Carolina n Jan. 7, California Gov. Arnold from getting these funds, in part be- Schwarzenegger signed sweep- cause of the state’s longstanding defi- ing school reform legislation ance on lifting the charter school cap. thatO many observers are heralding as Atkinson discounted the need historic and bold, providing parents for reforms like those in California, a greater voice not only in choosing a crediting North Carolina’s existing in- school that best serves their children novative schools legislation as provid- but also in petitioning school boards to ing students and parents with choice fix persistently failing schools. and arguing that North Carolina al- This legislation lets Califor- ready has a “statewide teacher evalu- nia compete for up to $700 million of ation system that does include student the $4.3 billion in competitive grants growth and achievement as a part of a available to states through the Obama teacher’s evaluation.” administration’s Race to the Top pro- Kakadelis disgreed, saying North gram. That state’s leaders filed their Carolina has some choices at the high application in time for the Jan. 19 dead- school level but very few at the el- line. ementary school level. Elementary The Race to the Top initiative, school families who do not get onto a authorized by Congress in the Ameri- charter school waiting list and cannot can Recovery and Reinvestment Act, afford to pay for private school have is intended to provide states with in- no choice. centives for future education improve- ments and to reward those that have System vs. the child demonstrated a history of improving M.C. Escher: Relativity student academic performance. The education establishment has options allow school boards to remove Carolina continue to struggle with the proven year after year, Kakadelis said, North Carolina applies principals or even shut down schools. same issues as they did 15 years ago,” that the “system is more important The passage of such landmark Kakadelis said, citing busing and the than the child, and it does not want North Carolina also filed its Race education reform in California, a state charter school cap as just two exam- parents to have options outside of its to the Top application on time, but Tar where teacher unions have consider- ples. control.” Heel State educators made minimal able legislative influence and lobbied North Carolina’s ABCs program changes in advance of the deadline. The dumb approach strongly against these measures, has has a critical flaw because the program (See “North Carolina Stands Pat in Ef- some North Carolinians speculating fort to Win ‘Race to the Top’ Grant,” CJ, In a phone interview, Terry rewards schools rather than teachers whether these types of reforms might Stoops, education policy analyst for the for performance, said Kakadelis. The January.) happen here. In a written statement, Super- John Locke Foundation, agreed with highest-performing teacher in a school intendent of Public Instruction June ‘Real reform’ Kakadelis, saying he doesn’t see any receives the same bonus as the weakest Atkinson said the state law capping lawmakers in North Carolina work- or worst teacher in that same school. charter schools at 100 should not pre- “This is real reform,” said Lyn- ing on reforms like those just passed in This system “drives weak and strong vent North Carolina from receiving dalyn Kakadelis, director of the North California. teachers to schools where the teach- $400 million in funding from Washing- Carolina Education Alliance, in a “California is taking the smart ers know parents will supplement and ton. States receive more credit for past phone interview and written statement approach, while North Carolina is tak- make sure the student is learning dur- success in improving education and for CJ, “and I will be interested in how ing the dumb approach on the Race ing school hours,” she said. CJ teacher effectiveness, she said, rather it is implemented. Time will tell, but than enhancing school choice. this is a great start.” Golden State lawmakers acted Unlike the No Child Left Behind with a greater sense of urgency. “We legislation, which, for all its good in- have answered President Obama’s tentions, came from the federal level, Visit our Wilmington regional page call to make transformative and bold California’s reform comes from the changes to turn around low-perform- state level, said Kakadelis, and “ac- http://wilmington.johnlocke.org ing schools and shown that we can lead cording to the Constitution, education the way for the nation,” said state Sen. is to be left to the state.” The John Locke Foundation Gloria Romero, D-Los Angeles, head of As for North Carolina’s Race to has five regional Web sites span- the Senate Education Committee and a the Top, Kakadelis and other advocates leading architect of the legislation, in a of school reform and parental choice ning the state from the mountains press release. seem far less hopeful that North Caro- to the sea. Romero lauded the new legisla- lina lawmakers and education leaders tion for providing parents “a true voice are prepared to alter the status quo, The Wilmington regional page in making choices for their children.” despite the state’s poor high-school includes news, policy reports The California Teachers Associa- graduation rates and declining student and research of interest to academic achievement. tion opposed the legislation because people in the coastal area. of its open enrollment mandate — al- “Lawmakers across the country lowing students in a low-performing are experiencing ‘education reform fa- school to enroll in a public school any- tigue’ because millions of dollars have It also features the blog Squall where in the state without regard to been poured into state reforms that Lines, featuring commentary their parents’ place of residence — and aren’t working. California, New York, on issues confronting coastal the parent trigger mandate, empower- and Florida are bellwether states, so N.C. residents. ing parents of students in a persistent- this legislation could foreshadow what ly low-achieving school to petition the may be coming to other states,” said school board to implement one of four Kakadelis. The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 specified turnaround strategies. Other “School boards across North FEBRUARY 2010 | CAROLINA JOURNAL PAGE 13

Seven Years, Six Scandals in UNC System Campus Briefs On Jan. 27, blogger and col- By Jane S. Shaw dation was diverted to administrators’ about $500,000 were made from a pro- umnist Mary Katharine Ham Contributor discretionary accounts; excessive over- gram funded by the federal Office of spoke to a crowd of 50 students RALEIGH time pay was made; and rules of the Naval Research. Some were payments and Raleigh citizens at Meredith he selection of a new chancellor employee loan program were violated. for excessive travel expenses for family College. Ham’s speech was the for N.C. State, William Randolph members of the program manager. inaugural event of an unconven- Woodson of Purdue University, Fayetteville State University • An administrative assistant tional new group that recently has started chapters at Meredith, Tends the latest chapter of financial mis- In November 2007, the state audi- in the Natural Resources and Envi- NCSU, and UNC-Chapel Hill: the behavior in the University of North tor’s office revealed financial deficien- ronment Design Department made Network of Enlightened Women Carolina system. But it would be a cies during the year ending June 30, $101,000 in unauthorized payments. (NeW). mistake to assume complacently that 2006. Specifically: That person pled guilty to misusing all troubles are over. Consider these six funds. All three chapters co-hosted • Accounting was the event. NeW’s mission is to fos- examples of high-level financial mal- chaotic. Cash was un- • The former vice feasance discovered in the UNC sys- chancellor for information ter the education and leadership derstated by $831,825, skills of conservative university tem over the past seven years: accounts payable by technology and telecom- munications misappro- women and to expand intellectual East Carolina University $657,926, and student tu- diversity on college campuses. ition and fees revenue priated $87,000 in funds from rebates on computer Jessica Custer, state chair- In 2003, internal audits turned by $2,224,826. Too many woman for NeW, explained why up two financial problems. One was people had access to the purchases. He also direct- ed a contract to his execu- Ham was a natural choice to kick mismanagement of a $4.6 million fed- purchasing and payment off NeW in North Carolina. “Mary tive assistant’s mother. eral grant from the National Library of process. Katharine Ham’s speech chal- • Revenues of Medicine. The second was embezzle- • The university lenged college women to reclaim $380,000 from a beverage ment by an associate vice chancellor had overpaid financial the feminism of their grandmoth- who also headed student housing. The aid refunds to students vending contract were er’s generation and be proactive associate vice chancellor was convicted by $163,577. Six out of 81 transferred to the chancel- in supporting real women and of the crime, returned $84,000 to the students sampled did not lor’s discretionary fund not government programs that university, and received a suspended meet the academic stan- and used for purposes hurt women in the long run. Her sentence. dards for financial aid. The university such as artwork, travel for the former speech proved an exciting kick- had credited 100 students’ accounts chancellor’s wife, and foundation or off for NeW’s expansion in North UNC School of the Arts with a total of $180,255 under a debt alumni events. Carolina.” A special investigative review is- forgiveness program that lacked eligi- Ham’s speech was titled N.C. Central University “New Wave Feminism: Girl Power sued in October 2004 found that: bility criteria. without Government.” In her talk, • The vice chancellor for finance Outside the financial sphere, the N.C. Central operated an unau- Ham encouraged women to find and administration had violated UNC bachelor of nursing program was in thorized satellite campus at a church in trouble. In 2007, 24 out of 31 students Lithonia, Ga., for four years. empowerment without govern- policies in receiving more than $90,000 ment intervention. in consulting and expense payments failed to graduate because they failed The school, which started in 2004, a standardized exam, and the Board of had enrolled 126 students. It was au- She started by explaining the over 13 years. The controller of the difference between conservative school’s foundation had misled audi- Nursing put the school on probation thorized by Chancellor James Ammons for violations. and the chief operating officer of the and liberal feminists. “When lib- tors about these payments. erals hear about a company doing • The vice chancellor made un- New Birth Missionary Baptist Church, N.C. A&T State University which was headed by a trustee of N.C. something sexist, they want gov- authorized transfers of land held by ernment to intervene. I just want the foundation to a nonprofit corpora- In June 2007, the state auditor Central. Neither UNC system President individuals in the free market to tion he controlled. reported severe financial mismanage- respond — with ridicule or with Erskine Bowles nor the Board of Gov- • He and the dean of the film- ment at N.C. A & T, following an in- their buying power. That’s the dif- ernors knew about the school, although making school received payments ternal audit that had identified $2 mil- ference.” university policy requires approval from a nonprofit corporation in viola- lion in mismanaged funds. Among the She said the best thing gov- tion of UNC regulations. problems: of any off-campus program. Further- ernment could do for women en- • Money from the school’s foun- • Questionable payments of more, the school was not accredited. trepreneurs would be to get out of Although schools without accredita- the way, citing instances of over- tion cannot accept federal financial aid, regulation in traditionally female- New Birth had received over $500,000 dominated fields — like cosmetol- in Pell grants and $2.5 million in fed- ogy and African hair braiding. eral grants and loans. Meredith’s NeW president, N.C. State University Anna Beavon Gravely, liked the fact that Ham’s speech encouraged In 2005, using intermediaries, women to think critically about North Carolina Gov. Mike Easley pres- feminism. “The idea that a woman sured the university to hire his wife, is no less of a woman when she Mary Easley. On July 1, 2008, Mary embraces her femininity instead of Easley received an 88 percent increase trying to close the gender gap is so in pay. A subsequent investigation re- outside the box,” she said. vealed an on-campus culture of privi- Ham, who grew up in Dur- lege among faculty and administra- ham, is a staff writer for The Weekly tors. In the end, the provost, the chair Standard and is a Fox News con- of the board of trustees, and the chan- tributor, appearing regularly on cellor resigned, and Mary Easley’s job Fox News’ “The O’Reilly Factor” was terminated. and “Red Eye.” Ham’s speech was sponsored by the John W. Pope These scandals were sizable and Center for Higher Education Pol- significant and should remind the pub- icy. CJ lic to be vigilant watchdogs of the uni- versity system. CJ Compiled by Jenna Ashley Rob- inson, campus outreach coordinator for the John W. Pope Center for High- Jane S. Shaw is president of the John er Education Policy. W. Pope Center for Higher Education Pol- icy (popecenter.org). PAGE 14 FEBRUARY 2010 | CAROLINA JOURNAL

COMMENTARY In Refreshing Change, NCSU Do What I Say, Showcases Faculty, Students

By Jenna Ashley Robinson talk drew more than 100 students and Not What I Do Contributor faculty members — a sizable crowd for RALEIGH a specialized topic. recently read a provocative ar- their access to public funds have ike other universities, N.C. State Robbins’ talk illustrated a mul- ticle by William Patrick Leonard, created a cushy lifestyle for tenured features highly politicized lec- tidisciplinary approach to learning, a college administrator who also professors, whose workloads have turers. Longtime radical Angela as he combined his formal training in Iteaches economics. He describes declined as their compensation has LDavis spoke last September, and Tuck- architecture with a love of history to a war within himself — a war gone up. er Max, author of I Hope There’s Beer in present N.C. State’s evolution from between what he says in the class- And in his book Tuition Ris- Hell, gave a predictably vulgar rant in “State College” in 1887 to the univer- room and how he acts. ing, Cornell University economist August. sity that exists today. Writing in Econ Journal Watch Ronald Ehrenberg offers a humor- But there are other speeches, too He revealed details of the school’s (an online journal about econom- ous illustration of the difference — and two new lecture series are worth history and traditions, including the ics), Leonard says, “unconsciously, between good economics and the emulating by other colleges. They are mystery of the moving (and missing) I have compartmentalized my administrative way of life. As an the “Fabulous Faculty” series and the fountains. administrative and my classroom academic vice president he tried, “Student All-Star” series, both spon- The Fabulous Faculty Series priorities.” unsuccessfully, to make allocation sored by the N. C. showcases inter- Now an acting dean at an of space for faculty and administra- State libraries (and esting and rel- international school in Korea, Leon- tive offices more efficient. the Friends of the evant works in ard confesses that in his roles as Office space is highly sought Libraries). The aim of the progress by N.C. dean, vice president, and after on college campuses, The two se- State teachers and president of various insti- and the costs of operation, ries aim “to give two series is to researchers. Spon- tutions, he has relied on maintenance, and con- everybody in sored by a grant two tried-and-true tech- struction of office space the community highlight ideas from the Tom Rus- niques as an administrator can be very high. The a chance to hear sell Foundation — increasing enrollment usual practice is to give and see some of and thought it started in 2008. and raising tuition. They space away on the basis the best ideas that at NCSU Past speakers have don’t cause controversy of a faculty member’s are being thought included Joseph the way cutting costs does. position (a full profes- and said at N.C. DeSimone, pro- As an economist, sor gets a certain-sized State,” says David fessor of chemical he knows this policy is JANE office, and an associate Hiscoe, director of community strategy and biomolecular engineering, speak- flawed. Schools need to SHAW professor gets something and external relations for the libraries. ing about his Lemelson-MIT Prize for assess their activities and a little smaller, while an Speakers are expected to “leave the invention and innovation; John Kes- eliminate those that are adjunct is lucky to get a jargon and specialty languages at the sel, professor of English, on his book costly. Otherwise, there made-over coat closet). As door and talk about important subjects The Baum Plan for Financial Indepen- will be no room for innovation. an administrator, Ehrenberg spent in a way that nonspecialists can fol- dence and Other Stories; and Ann Ross, But it’s easier to increase two years trying to get the univer- low.” professor of sociology and anthropol- enrollment and tuition. Adding stu- sity to measure the costs of space “Since the time of Benjamin ogy, on CSI and Human Rights. dents makes everyone on campus and then use those costs to allocate Franklin, libraries have been social and Mike Walden, professor of agri- happy because it conveys “a sense offices, perhaps billing academic de- intellectual centers of the community,” cultural and resource economics, who of positive momentum,” explains partments for the space they used. Hiscoe explained at the inaugural lec- spoke last February about his new Leonard. As for tuition, increases Ultimately, he gave up. ture of the Student All-Star series on book North Carolina in the Connected are typically accepted as unavoid- When Ehrenberg went back to Dec. 8. These lectures restore that role Age, found the interaction with the able. When complaints arise, he and being a faculty member, however, to the library. “The lectures allow stu- university community to be a “valu- his colleagues bring out such tired he worked out a special arrange- dents, faculty, and other members of able experience,” as many attendees old chestnuts as “quality must be ment with his dean so that he could the university community to step out participated with thoughtful questions maintained if not enhanced,” and have an extra office (he had to store of their own circle of daily work and to and comments. tuition is “an investment and not a his books and papers so he could see and hear some of the best thinking, Hiscoe has high hopes for the fu- cost.” write his book on college costs). writing, and multimedia being done ture of both series: “We’re just gearing “The pitch is perhaps no slea- With some chagrin, he observes, “If by members of the university commu- up the Student All-Stars series, but our zier than those of other industries,” the person at the university who nity.” goal for both is the same: to highlight he remarks. best understood the need to try to The Student All-Star Lecture Se- the work of some the N.C. State’s most In contrast, cutting costs is ration space (namely me) behaved ries highlights the work of some of interesting teachers and student schol- tough, primarily because faculty in this manner once he returned to N.C. State’s most promising student ars.” have a lot of power. To avoid un- the faculty, is there any hope that scholars, who are selected by students. Too often, scholars become lost in pleasant confrontations with faculty, the university will be able to limit The lectures will be held two to three their own disciplines. In constant pur- administrators seek more money future construction of new space?” times a semester in the D. H. Hill Li- suit of the next scientific breakthrough for their institutions, even though In his Econ Journal Watch brary. All lectures in both series are free — or the next opportunity to land a big controlling costs would be better for essay, William Leonard has a mes- and open to the public. grant — professors leave little time to students. sage. If universities do not reduce Matt Robbins, a graduate stu- explore other corners of learning. Stu- Leonard’s analysis echoes costs, the federal government is dent in the College of Design, was the dents are doing the same thing when points raised by Richard Vedder, likely to increase its intervention. first “All-Star.” Robbins initiated the they complain of course distribution the author of Going Broke by Degree. Rather than let this happen, colleges current campaign to put bells in the requirements that prevent them from An economist at Ohio University, should cut costs — but who will school’s Bell Tower, which never was diving into their own disciplines ex- Vedder is a prominent figure in begin? CJ finished due to financial constraints clusively. CJ higher education and an irreverent that began in the Great Depression. speaker who likes to tell audiences, Robbins has become an authority on “I’ve been ripping off the taxpayers Jane S. Shaw is president of the largely forgotten changes to the archi- Jenna Ashley Robinson is campus for years.” Vedder says that uni- John W. Pope Center for Higher Educa- tecture on campus. He spoke on “State outreach coordinator for the John W. Pope versities’ lack of a bottom line plus tion Policy (popecenter.org). College Then and Now: Saving the Center for Higher Education Policy (pope- History of Our Buildings.” Robbins’ center.org). FEBRUARY 2010 | CAROLINA JOURNAL PAGE 15

Opinion UNC Can Improve Grad Rates Without Hand-Holding Programs t the January Board of Gover- college work. This cuses not only on grams aimed at increasing retention, nors meeting, the UNC system latter approach to remedial English including “summer bridge programs,” seemed to be in conflict with improving gradu- Issues and mathematics, “service learning,” and “social and itself.A ation rates would but on social skills cultural support.” System President Erskine Bowles encourage aca- in as well. Students Such programs conflict with the acknowledged that the system is not demically weaker Higher Education also receive special true needs of the system: lowering serving middle-class students well students to start guidance as long as costs, improving graduation rates, and when it comes to providing access. at the lower-cost they attend Fay- avoiding severe cuts in necessary aca- He said that the system’s demograph- community college etteville State, ac- demic programs. Yet these programs ics are changing, with more students level, not at the cording to provost seem to grow exponentially at univer- coming from the top of the income pricier four-year Jon Young. sities, and they can be difficult to kill ladder and more universities. The CHEER program spent when they prove to be inefficient or from the bottom, The other approach — special $477,000 in UNC system funding outlive their usefulness. while those in the programs that feature intensive train- (and a smaller, unspecified amount of In difficult economic times, it middle are getting ing and mentoring — would increase university funding) in 2008, adding is folly to expand any programs that “squeezed.” education costs while addressing a cost of roughly $4,300 per student place a greater burden on the middle Yet some the needs of only a few students at a for the 111 students who started the class unless they address specifically of the proposals time the university system is scrap- program that year. This is a hefty price the most basic needs of the poor — raised during the ing for every dollar. (The universities tag, considering that the expenditures food, clothing, shelter, etc. These meeting will put are already holding off on spending 5 per full-time student at FSU for the bridge programs do not qualify as more of a burden percent of their state appropriations 2007 school year were already $16,699, “basic needs,” but the higher taxes on those same for this fiscal year because of antici- the Department of Education reports. and tuition needed to pay for them middle-class stu- JAY pated shortfalls in state tax revenues, Tuition and fees covered only $3,245, does qualify as a burden on the dents — in order SCHALIN and some reports suggest that this and that’s not taking financial aid into middle class. to ease the burden year’s revenues will be lower than account, at a school where an over- There is a place in North Caro- on low-income anticipated.) whelming number of students receive lina’s higher education system for students. For example, 25 percent of One such special program aid. everybody who wishes to attend. The all tuition increases will be dedicated discussed at the Board of Governors This “boot camp” approach best place for remedial students is at to expanding special programs to meeting was Fayetteville State Uni- would make more sense if implement- community colleges. The UNC system increase retention and graduation versity’s CHEER program: Creating ed at the community colleges instead. should not be sidetracked by pres- rates for students with weak academic Higher Expectations for Educational Universities are not the place to re- sure from special interests to expand backgrounds. Readiness. It takes a “boot camp” ap- teach high school subjects and provide special programs. The focus on such special pro- proach to preparing students whose instruction in basic social skills. They Rather, the state’s higher educa- grams complicates dealing with the academic qualifications are weaker exist to impart higher knowledge and tion system should seek to provide a problem of low graduation rates — a than those of other incoming fresh- to create new knowledge through more effective and equitable system in high priority for the UNC system. In- men. (Average math and reading SATs research. which both the universities and com- deed, just as UNC officials are propos- for CHEER students are 748, roughly Plans are afoot to expand munity colleges perform their proper ing more programs for students with 100 points below the rest of FSU’s CHEER to UNC-Pembroke and Eliza- roles. CJ weak academic preparation, they are freshmen.) These students are ac- beth City State University this year. also exploring an approach that would cepted on a conditional basis — they And CHEER is far from the only such improve graduation rates by limiting must complete the six-week summer program in the state. UNC senior vice Jay Schalin is a senior writer for the enrollment, thus allowing entry only CHEER program to attend FSU in president for academic affairs Alan John W. Pope Center for Higher Educa- from students relatively prepared for the fall semester. The program fo- Mabe’s listed 16 different types of pro- tion Policy in Raleigh (popecenter.org). PAGE 16 FEBRUARY 2010 | CAROLINA JOURNAL

Town and County Thousands overpay car tax E-mails Outline Roles in Yadkin Jail Issue Forysth County is mailing re- By Sarah Okeson man Services has been citing the jail for deficiencies ranging funds to 7,000 residents who paid Contributor from inoperable toilets to fire safety problems. The agency property tax bills on their vehicles YADKINVILLE shut down most of the jail last August because of plumbing that were too high. The overbill- -mails between Yadkin County officials and a judge problems, with many cells lacking hot water. ing came as a result of a computer who was prodding them to build a new jail show that Craig scheduled a hearing last month about the coun- system error, reports the Winston- county officials had repeatedly asked the judge to in- ty’s failure to build a jail, telling commissioners he could Salem Journal. terveneE and help quell opposition to the jail’s location. fine them, remove them from office, or jail them until they In late November, the county In November 2007, then-County Manager Eric Wil- agree “to properly carry out the duties of their office and get mailed 23,000 property tax bills liams wrote Superior Court Judge John Craig III and Judge the jail project underway without further delay.” for motor vehicles, with a Dec. 1 Ed Gregory, the senior resident Superior Court judge for the His comments alarmed Wooten and Kevin Austin, the due date. The amount due is de- judicial district that includes Yadkin county commissioners who had op- termined in part by multiplying County. posed the jail site. They hired attorneys the tax rate by the vehicle’s value. County commissioners voted 3-2 to represent them at county expense. Automobiles depreciate over time, in November 2006 to build a new jail, Craig canceled the hearing after com- though, and the county used 2008 but one commissioner, Brady Wooten, missioners agreed to move forward valuations to determine the 2009 has continually opposed plans to build with plans to build the jail. tax due, resulting in an overbilling. the $8.2 million, 150-bed facility about “If it hurt their feelings I’m sor- “We have billed over 4 mil- four miles from the courthouse. ry, but they just needed to know how lion motor vehicles and have nev- “Is there anything either one of much inherent authority the superior er had something like this come you could offer (or be willing to en- court had,” Craig said. up,” said Pete Rodda, the county tertain doing), which you think could Austin said the e-mails show bias tax assessor. reconfirm the judicial mandate that we by Craig. Austin’s family company, The county’s chief informa- proceed along the steady and thought- The Austin Company, is across the tion officer blamed the error on a ful course we are working so hard to travel?” Williams street from the jail site and was one of the plaintiffs in a law- new computer system. asked in an e-mail. “Is it possible the entire Board, Sheriff suit with the county over the jail. The county became aware of Cain, County Attorney Jim Graham and I could be sum- “I think they show clear intent of Judge Craig to fur- the problem when two residents moned before one, or both of you even, to explain why these ther the jail process including intervention in any way, called to complain. It sent correct- obstructionist efforts continue?” shape or form that he could possible do,” Austin said. ed bills by Dec. 4, but at least 7,000 Craig, who summoned commissioners before him in Craig said he didn’t orchestrate anything with county residents had already paid. The December 2006 over the need for an adequate jail, told Wil- officials. average amount of the overcharge liams there wasn’t a legal or judicial reason to hold another “I’m not trying to be some sort of cowboy or activist was about $14. The county spent hearing. judge,” Craig said. “I don’t go around looking for fights $8,000 on mailing the revised bills “A court hearing with the aim of with people like Brady Wooten. But if plus an additional amount send- chastising Mr. Wooten for his obstruc- I feel like an injustice is being done, I’m ing the refunds. tionist tactics would be inappropriate,” going to address it.” Craig wrote. “On the other hand, let me County officials Phillips said she was embarrassed know if he attempts to lie down in front Craig needed to be involved in helping House design standards of a bulldozer at the construction site.” oppose building the country try to get a jail built. Craig said Williams tended to be “It’s terrible that these guys delay The city of Charlotte is con- chatty in his e-mails, which Carolina a new jail this and find any excuse and say that sidering changing its design stan- Journal obtained in a public records re- there’s a conspiracy,” Phillips said. dards for single-family houses. quest. away from Yadkin County resident Larry While the regulations won’t be fi- “Eric would get mad about things Long said in December that he filed a nalized for a few months, a docu- commissioners would do and call me the courthouse complaint with the state Judicial Stan- ment outlining possible new stan- and get me to do something,” Craig dards Commission about Craig. Long dards has been released for public said. “A lot of times it wasn’t appropri- said recently that the commission told comment. ate for me to do anything.” him it found no wrongdoing by Craig. The commission The Queen City’s interest in Williams, now the city manager in Smithfield, didn’t wouldn’t confirm this. changing its design standards is in respond to a phone call or e-mail seeking comment for this Narley Cashwell, the attorney of counsel for the North part driven by teardowns, the pro- story. Carolina Institute for Constitutional Law, said judges clearly cess of replacing smaller homes Kim Clark Phillips, a former commissioner, wrote Wil- have the authority to direct officials to provide adequate jail in desirable older neighborhoods liams in November 2006 about Wooten wanting to meet facilities if a grand jury has found problems. But it may be with larger structures. with her. out of line for a judge to give specific instructions to county Among the specific rules be- “I may agree to meet under very, very clear and strin- officials. He would not comment on whether Craig’s actions ing considered is a requirement gent requirements,” Phillips wrote. “If he fails to go along were appropriate. that would limit the length of with those, I suppose I’ll have no choice but to discuss that “The issue of whether a new jail has to be built or “blank” walls facing the public with judge Craig. No more roadblocks from anybody on our the jail remodeled may well be the discretionary call of the right-of-way. The proposal be- progress toward a new jail. Period.” county commissioners,” said Cashwell, a former Superior ing considered would limit to 10 Craig mentioned Wooten in a December 2007 e-mail Court judge for Wake County. linear feet the distance between to Phillips. In 1989, an Alamance County judge ordered the coun- doors, windows, porches, mate- “I must admit privately that I despise demagoguery ty to provide an adequate courthouse with specific instruc- rial variations, and/or wall plane and attempts at political tyranny,” Craig wrote. “I was in- tions about the number of courtrooms and square footage. variations. spired to take action because the former chairman ‘threw The state Supreme Court, threw the order out, holding that Other proposals include in- down the gauntlet.’” “it intruded on the discretion that properly belonged to the creasing the minimum size of side Yadkin County still hasn’t built a jail because of politi- commissioners.” yards to five feet, mandating even cal opposition and delays from lawsuits by opponents who Opponents to building a jail outside Yadkinville have larger side yards for houses over would like to build a smaller, cheaper jail in the county seat also questioned why Craig heard a lawsuit challenging the 40 feet in height, limiting the width of Yadkinville or remodel the existing jail. rezoning of the jail. Craig, who found the rezoning was of garages if they are the frontmost State Rep. Darrell McCormick, a Republican from Yad- proper, said it was just a coincidence he heard the case. feature of a house, allowing set- kin County, said the majority of the county opposes build- He said that if a jail is built he probably won’t be there back averaging, and limit imper- ing the jail away from the courthouse. for the opening. “I’m sorry that I’ve made the people of Yad- vious areas on lots under 20,000 “It was a bad idea, and they were going to force it kin County mad,” Craig said. “If they ever get the jail built, square feet. CJ down the throats of the county,” McCormick said. I probably won’t go to the groundbreaking for fear someone For years, the state Department of Health and Hu- would take me out with a deer rifle.” CJ FEBRUARY 2010 | CAROLINA JOURNAL PAGE 17

Ruling Gives Exclusive Vid COMMENTARY An Appeals Court Poker Rights to Cherokees Gift to Homeowners By Michael Lowrey As the appeals court’s three judg- Associate Editor es saw it, the case rested on the inter- n December, the N.C. Court of APFO to obtain indirectly the pay- RALEIGH pretation of a single provision of the Appeals ruled in a case that ment of what amounts to an impact n a Dec. 22 decision, the N.C. Court IGRA, which provides that “Class III was very closely watched by fee given that defendant lacks the of Appeals held that the state’s gaming activities shall be lawful on In- Ilocal government officials across authority to impose school impact general ban on video poker is legal. dian lands only if such activities are . . . the state. fees directly,” wrote Judge Barbara IIn doing so, North Carolina’s second (B) located in a State that permits such The issue was whether Union Jackson for the appeals court. highest court ruled that federal law al- gaming for any purpose by any per- County could make use of an ad- The appeals court did not lows the state to grant the Eastern Band son, organization, or entity… .” Video equate public facilities ordinance address a number of other chal- of Cherokee Indians the exclusive right poker is classified as a Class III gaming (APFO) as a means of funding lenges that had been raised against to operate video poker within the state. activity. school construction. The appeals APFOs. And certainly there are State gambling regulations are The appeals court saw two sep- court struck down the ordinance, other issues with them. complex because the federal Indian arate issues. The first question was finding it a school construction im- My John Locke Foundation Gaming Regulatory Act (IGRA) grants whether North Carolina “permits such pact fee by another name. colleagues Michael Sanera and Indian tribes the right to operate gam- [video poker] gaming.” McCraken and The appeals court was cor- Haley Wynn showed in a Septem- ing operations on their land. Whether Amick argued that a state that pro- rect, as APFOs are indeed essential- ber 2007 Spotlight research paper the state can outlaw video poker ex- hibits video poker generally, with ex- ly impact fees. Even if they could that the calculations behind the cept on tribal land depends on the in- ception of tribal gaming, has a public be imposed legally in this mitigation fees charged terplay between policy that does state, they are a bad idea. are highly questionable. federal law, state not “permit such Localities in North These impact fees by law, and agree- The North Carolina Courts gaming.” Carolina have only as another name simply ments between The appeals much authority as is measure school construc- the state and In- court was not im- granted to them by the tion costs. They don’t dian tribes cover- pressed by this General Assembly. And bother to consider the ing their gaming argument. “Here, the legislature most cer- revenue stream to the operations. the General As- tainly has not given the county that new houses In 1994, sembly has ex- vast majority of counties generate from higher tax North Carolina pressed the public the authority to impose MICHAEL receipts. signed a compact policy of the State impact fees to cover the LOWREY “Nowhere in the with the Eastern through N.C. Gen. costs of school construc- APFO studies, or in any Band of Cherokee Indians allowing the Stat. § 71A-8, which explicitly autho- tion. Durham County of the county school AP- tribe to operate certain types of gam- rizes Indian gaming in accordance decided to test its luck FOs, are the positive im- ing, including video poker, on its land. with IGRA, and N.C. Gen. Stat. § 14- a few years back on this point by pacts of community growth even The tribe operates Harrah’s Cherokee 306.1A, which criminalizes Class III imposing a school impact fee on acknowledged.,” wrote Sanera and Casino, which attracts over 3.5 million gaming in North Carolina except for its own authority; the Court of Ap- Wynn. visitors a year. the Tribe’s enterprises,” wrote Judge peals found it to be illegal. “Such one-sided analysis The state also had allowed video Robert C. Hunter for the appeals court. At least six counties — Curri- treats new residents as a burden to poker in the rest of the state with a Also at issue was the meaning of tuck, Franklin, Camden, Cabarrus, be borne, rather than as contribu- variety of restrictions. That changed the phrase “any person, organization, Stanley, and Union — had adopted tors to a community.” in 2006, when the General Assembly or entity.” APFOs as an attempt to get around And taking that a step banned video poker in the state effec- state argued that because tribal their lack of authority to impose further, impact fees and APFOs en- tive July 1, 2007. The law outlawing gaming enterprises were not specifical- impact fees. The idea is that coun- courage gentrification. The dollar video poker did not affect the legality ly excluded from the phrase, the state ties will approve a proposed new amount payable to a county is the of the Cherokees’ gaming operating. can grant the tribe exclusive gaming development only if adequate same for a $100,000 starter house or McCraken and Amick, Inc. sells, rights. public facilities, typically seats in a $1 million McMansion. Tacking leases, operates, and maintains a vari- “Under the State’s reading … schools, exist. on $15,000 to a 4,000 square-foot ety of amusement devices, including ‘any’ means ‘one’ — the State may If there isn’t enough school estate doesn’t have a lot of impact; juke boxes, pool tables, and pinball grant the Tribe exclusive Class III gam- capacity, a developer has a num- adding $15,000 to the cost of build- machines. Its business also includes ing rights under IGRA if state law per- ber of choices: make a “voluntary ing a starter house reduces the video poker terminals. In November mits Class III gaming for at least one mitigation payment” to get ap- number of families who can qualify 2008, the company sued the state, con- purpose for at least one person, orga- proval for the project; provide for a mortgage. Existing housing is tending that under the IGRA, the state nization, or entity, including the Tribe land for a school or otherwise help a good substitute for new construc- cannot grant the tribe a gaming mo- itself,” wrote Hunter. school construction; or wait until tion, so APFOs drive up the price nopoly. The appeals court found this ar- adequate school capacity becomes of older home sales as well. APFOs On Feb. 19, 2009, Superior Court gument to be reasonable. available. also apply to new apartments, Judge Howard Manning ruled in fa- The court noted that special rules In four of the six counties tending to price low-income rent- vor of McCraken and Amick. Manning apply when dealing with Indian law. with APFOs, the mitigation pay- ers out of the community. found that the “IGRA does not permit The U.S. Supreme Court held in a 1985 ments were at least $8,000 per Thanks to the Court of Ap- a state to ban the possession and op- case Montana v. Blackfeet Tribe that fed- single-family lot. Union County’s peals, that’s a problem working eration of video gaming machines else- eral laws passed to benefit Indian tribes mitigation payments were the class families will no longer have where in the state while allowing their are to be liberally construed, with am- highest, at $14,953 per lot. to face. CJ possession and operation on tribal biguities being resolved in favor of the The Court of Appeals was not lands.” tribes. impressed. Michael Lowrey is an associate The state challenged Manning’s The case is McCraken and Amick, “Defendant may not use the editor of Carolina Journal. ruling before the Court of Appeals. Inc. v. Perdue (09-431). CJ PAGE 18 FEBRUARY 2010 | CAROLINA JOURNAL

Local Innovation Bulletin Board Durham To Begin Using Staff Housing Affordability Again to Monitor Construction By Michael Lowrey “It’s not just a (one) city trend. ... he U.S. Department of Hous- on their menus. Associate Editor ing and Urban Development The city’s goal is to reduce It’s happened in so many places, and defines housing as “afford- the amount of salt in packaged and RALEIGH that leads you to think that it’s got to able”T if it costs less than 30 percent restaurant food by an average of he city of Durham is rethinking be social,” said Barry Krisberg, a crimi- of a family’s income. A significant 25 percent over the next five years. how it approaches contracting nologist at the University of California number of Americans spend a sig- Because those same packaged prod- for some projects. It has relied on at Berkeley, to the Charlotte Observer. nificantly higher portion of their ucts are sold across the country, aT commercial construction manager to “It’s obviously much more com- incomes on shelter, including 12 New York City’s proposal could af- coordinate the city’s construction and prehensive than just the police force,” million renters and households that fect packaged foods nationally. The repair projects in recent years, but is said Charlotte Mayor Anthony Foxx. spend more than half of their in- city’s guidelines are necessarily again bidding out some work because “But that’s where our presence is felt, comes on housing. A major reason: complex, as salt is used for a variety that costs much less, reports the Dur- and that’s where we’ve tried to make a local government policies restrict the of purposes in differing amount in ham Herald-Sun. huge impact, particularly over the last supply of housing and/or drive up different foods. The city has set salt- Durham started using construc- couple of years.” building costs, writes James Franko reduction targets, which range from tion managers There were of the National Center for Policy 10 percent to 40 percent, for 61 class- after voters in a 15 murders in Analysis. es of packaged foods and 25 classes 2005 bond refer- Cherokee Raleigh in 2009, a Local governments reduce of restaurant foods. endum approved sharp drop from housing affordability through an ar- So far, few companies have projects totaling the record-high ray of regulations, fees, and incen- signed on to the city’s proposal. This $95 million. The to 32 murders the tive programs. Minimum lot sizes raises the question of what the city city manager at city experienced and limits on multifamily housing will do next if its guidelines are not the time, and the the year before. are examples of common regulations commonly accepted. The city’s trans then-head of the Currituck Raleigh had 23 that reduce affordability. Even more fat initiative started out as voluntary, city’s General homicides in problematic are impact fees, many but the city later the adopted a ban. Services division, 2007. of which are higher than the cost of City officials say that’s more which oversees construction and reno- Winston-Salem, meanwhile, saw providing services, and inclusion- difficult to do with salt. vation projects, didn’t feel that city staff 16 murders in 2009, down from 20 in ary zoning, an attempt to mandate “There’s not an easy regula- could oversee the quantity of work fast 2008. In 2007, 25 people were killed in developers to set aside a portion of tory fix,” said Geoffrey Cowley, an enough to prevent significant cost in- the city. their developments for low-income associate health commissioner. “You creases from occurring. In 2006, labor Durham experienced fewer mur- housing. In practice though, stud- would have to micromanage so and materials prices increased by 10.6 ders in 2009 as well. The Bull City saw ies show that inclusionary zoning many targets for so many different percent, and the city feared the stan- 21 murders in 2009, down from 24 in results in higher housing prices, as products.” dard bidding timetable would slow 2008, and 30 in 2007. projects, making them too costly. developers seek to recover the costs G’boro hotel regulations? of the low-revenue units. To make sure that projects got Franko identifies a number Big bucks for small airports built in a timely manner, the city start- The city of Greensboro is study- ed using Skanska USA Building Inc. as of ways that communities can in- Federal grant guidelines make ing whether to adopt new regulations crease housing affordability, includ- its construction manager. Since 2006, for hotels in the city. The proposed it easy for small, little-used airports the city has added personnel with ing allowing manufactured hous- to obtain millions of dollars to ex- rules would be modeled on regula- ing and single resident occupancy project management experience. The tions in Chula Vista, Calif, reports the pand. Where these grants are a good slow economy has also help reduce dwellings. Manufactured housing use of taxpayer dollars is question- Greensboro News & Record. costs less than half per square foot construction prices by more than 10 Chula Vista’s hotel ordinance, able, reports USA Today. percent in the past year. what site-built homes cost. Allow- Since the early 1980s, a portion which took effect in 2008, requires ho- ing SROs — more commonly called When Skanska wanted $2.4 mil- tels to obtain a permit and meet cer- of the ticket taxes that airline passen- lion to handle repairs to three city rec- boarding houses — would substan- gers pay has funded infrastructure tain standards, including a limit on the tially in¬crease the supply of afford- reation centers, Joel Reitzer, the current number of calls to the police. The city projects at small airports that air- General Services director, sought bids able hous¬ing for low-income single lines don’t serve. In 2009, $1.2 billion can revoke a hotel’s operating permit if adults. from contractors, with the city acting too many calls are made asking police went to such small, general aviation as its own project manager. Reitzer’s “Removing regulatory barriers airports. to come to a hotel. to affordable housing solu¬tions like hunch proved to be correct; the bids The ordinance is based on the That’s up from $1 billion in for the repairs came in at $1.2 million. manufactured housing and SROs 2007 and $470 million in 1999. The assumption that hotel operators can would increase the supply of hous- increase is not justifiable by an in- Murders down reduce crime at their properties, even ing for individuals and families cur- crease in general aviation traffic; if they charge low rates or are in high- rently priced out of local markets,” private flying fell by 19 percent from Police officials in several of the crime neighborhoods. says Franko. 1999 to 2007. state’s largest cities reported large “Ultimately, what makes a differ- Indeed, an analysis of the gen- drops in the numbers of murders in ence is how the property is run,” said their jurisdictions. The reductions mir- Karin Schmerler, a senior public safety NYC’s war on salt eral aviation airports in seven states found that almost half operate at ror national trends and come despite analyst for the Chula Vista Police. New York City has begun an- less than 10 percent of their capacity; the weak economy, which had been “It’s not a complex issue,” said other effort to change what its citi- nearly 90 percent operate at less than thought to potentially drive up crime community activist Ben Holder, who zens, and by extension Americans in one-third of capacity. rates. called Chula Vista’ ordinance to city general, eat. This time the target is Small airports like the federal Perhaps the most startling re- council attention. salt, reports The New York Times. grant program, because it pays 95 duction in murders came in Char- “Greensboro doesn’t have a set of The move is the city’s third, percent of the cost of infrastructure lotte, which recorded 56 homicides in standards. It needs to hold these peo- and most ambitious attempt at influ- projects. 2009, down nearly a third compared ple accountable.” encing people’s diet. New York City “It’s free money,” says Steve to 2008 and the lowest number in 21 In the past, Greensboro has ad- has previously banned trans fats. Ellis of Taxpayers for Common years. The homicide rate per 100,000 dressed public safety issues at hotels It has also required that restaurant Sense. “It encourages pie-in-the-sky residents was at its lowest level since through a variety of means, including chains include calorie information projects.” CJ police started tracking the statistic in nuisance abatement laws, fire code 1977. Murders in Charlotte peaked in regulations, and even buying the prop- 1993 at 122. erty and tearing the hotel down. CJ FEBRUARY 2010 | CAROLINA JOURNAL PAGE 19 Tax-Funded Redevelopment Alive and Kicking in Greensboro

By Sam A. Hieb hoteliers, Mike Weaver and Den- Contributor nis Quaintance, notified the city they GREENSBORO would file a lawsuit in order to obtain couple of months after Greens- all information related to the down- boro voters elected Mayor Bill town hotel project. Knight and a new City Council The involvement of two public toA restore fiscal accountability in city officials raises more questions about government, the council has found the project. itself embroiled in two complicated Guilford County Commissioner and controversial projects that involve Skip Alston brokered the deal to move some form of taxpayer financing. the hotel to the Davie Street site, which The first was the city’s new is across the street from the recently aquatic center, which is now under opened International Civil Rights construction next to the Greensboro Museum. Alston chairs the museum’s Coliseum. When construction costs Artist’s rendering of the 74,000-square-foot Greensboro Aquatic Center (Image cour- tesy of the Greensboro Coliseum Complex) board. exceeded voter-approved bond fund- Guilford County school board ing, the council, in a tight 5-4 vote, center.” also would be investing in the project. member Deena Hayes also serves on approved the use of hotel occupancy Another partner in the deal was The Elm Street Center’s involve- the museum’s board and has advocat- taxes to close the deficit, even though Greensboro’s Ole Asheboro Neighbor- ment in the project appeared to give it ed publicly for the Ole Asheboro Street the city already was supplementing hood Association, which represents a much-needed legitimacy. But confu- Neighborhood Association to benefit shortfalls in the hotel tax. redeveloped area on the edge of down- sion suddenly arose over the city’s role financially from the hotel. Guilford County commission- town. But it’s never been clear exactly in the project. Knight and Thompson But questions arose over Hayes’ what role the neighborhood associa- discovered that approving participa- ers also had to sign off on the aquatic role in the project when it was revealed tion would play in developing or oper- tion in the federal bond program meant center funding, and they did so unani- that she shares a residence with one of ating the hotel. approving all projects that would be mously without debate or a public the prospective construction managers hearing at a Jan. 14 meeting. The Elm-Lee Street site was still in funded with the bonds. Young and on the project. The other controversial project play when city staff brought before the Scott confirmed the misunderstanding At the Jan. 19 City Council meet- is a proposed downtown luxury hotel council a request to apply for the fed- during a council briefing session, ad- ing, Elm Street Center’s Kaplan intro- that would be built with the help of eral bond program at its Dec. 15 meet- vising the council that it could rescind duced John Greene of JFG & Associ- federal recovery zone bonds. The bond ing. City Manager Rashad Young told the vote approving the bonds if it so ates as the project’s local construction program is part of the federal stimulus the council that the deadline for apply- chose. manager. program and provides private devel- ing for the program was midnight, so The council has taken no action Hayes’ school board contact in- opers with favorable financing terms it was crucial that the council make a so far, and for the moment, it appears such as interest reimbursement and decision, although members had not as though the city’s role in the project formation lists her address as a post of- tax-exempt status. learned details of all the projects that will be limited to funding a parking fice box, but when Greene introduced The hotel originally was planned would be eligible for the bonds. deck near the site. himself to the council, he gave the for a site on the corner of Lee and Sensing the controversy the hotel Randall Kaplan, managing part- same street address as the one listed on South Elm streets, a blighted corner project would generate, council mem- ner of Elm Street Center, again told the Hayes’ voter registration info. of Greensboro that the city has sought ber Zack Matheny grilled city staff, council at a January meeting that only Carolina Journal asked Hayes to redevelop for years. The project seeking a guarantee that approving the the private investors would be on the several questions about her role in the was pitched by Urban Hotel Group, application “in no way shows absolute hook for the bonds. project. “I simply have no comment at a company headed by former Shelby support for an individual project.” “If this doesn’t work, the inves- this time,” she replied. CJ County (Tenn.) Commissioner Bridget After receiving that assurance, tors have millions to lose,” Kaplan told Chisholm, who was instrumental in le- the council unanimously approved the the council. “Government has no risk Editor’s note: A photo of the Greens- veraging $12 million in private-public application. In late December, owners in this project.” boro City Council that ran in last funding to develop the Towne Center of the Elm Street Center, a downtown The controversy took another month’s issue was not the current at Soulsville, a Memphis-area “lifestyle development group, announced they turn when two respected Greensboro council. CJ regrets the error. Help us keep our presses rolling Visit our Western regional page Publishing a newspaper is an ex- pensive proposition. Just ask the many http://western.johnlocke.org daily newspapers that are having trouble making ends meet these days. The John Locke Foundation It takes a large team of editors, re- porters, photographers and copy editors has five regional Web sites span- to bring you the aggressive investigative ning the state from the mountains reporting you have become accustomed to the sea. to seeing in Carolina Journal each month. The Western regional page in- Putting their work on newsprint and cludes news, policy reports and then delivering it to more than 100,000 research of interest to people in readers each month puts a sizeable dent the N.C. mountains. in the John Locke Foundation’s budget. That’s why we’re asking you to help defray those costs with a donation. Just It also features the blog The send a check to: Carolina Journal Fund, Wild West, featuring com- John Locke Foundation, 200 W. Morgan mentary on issues confronting St., Suite 200, Raleigh, NC 27601. Western N.C. residents. We thank you for your support.

John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 20 FEBRUARY 2010 | CAROLINA JOURNAL

From the Liberty Library Movie review

• The Real Global Warming Disaster considers one of the most ‘Holmes’ Movie Not Worthy of Conan Doyle Canon extraordinary scientific and political stories of our time: how in the 1980s a • “Sherlock Holmes,” Directed by Guy Ritchie, Warner the gritty tone of the production as a whole. Hans Zimmer handful of scientists came to believe Brothers Pictures, Released Dec. 25, 2009, 128 minutes contributes a tense, discordant action score based on Hun- that mankind faced catastrophe from garian dulcimers and other unusual instruments — while runaway global warming, and how By John Calvin Young its manic energy suits the film, it isn’t one I’ll be revisiting. today this has persuaded politicians Contributor Surprisingly, given the gritty staging, the filmmak- to land us with what promises to be RALEIGH ers still showed some restraint. Holmes’ relationship with the biggest bill in history. asting American actor Robert Downey Jr. (Iron Man, Adler is somewhat risqué, hinting at more than is said or Author Christopher Booker Tropic Thunder) as Sherlock Holmes was the first shown directly, but still less than I expected after watching interweaves the science of global clue that Guy Ritchie was not following in the steps the trailer. Drinking and smoking is quite prevalent, but the warming with that of its growing Cof Holmesian cinematic tradition. Shot on location in Liv- cocaine use mentioned in the books has been sidelined. The political consequences, showing erpool and London, Ritchie’s lavish cinematic reimagining film is extremely violent, however, depicting in somewhat how just when the politicians are of Sir Arthur Conan Doyle’s classic characters will please gory detail numerous fistfights, including a bare-knuckle threatening to change our Western many, but readers of the original books will find more at boxing match, and leaving lingering images of gruesome way of life beyond recognition, the stake than Sherlock’s use of the King’s English. killings — a man burned to death, another hanged, a third scientific evidence behind the global The film opens with one of Holmes’ daring escapades, drowned. Several occult rituals, including one reconstruct- warming theory is being challenged infiltrating an underground crypt and interrupting an occult ed by Sherlock Holmes himself, are depicted in hair-raising like never before. blood ceremony. Tearing off the perpetrator’s hood, Holmes detail, although in classic Conan Doyle fashion, most super- The book exposes the myth that and Watson (Jude Law) reveal none other than Lord Black- natural events have very physical explanations. Families the global warming theory is sup- wood (Mark Strong), a prominent member of Parliament. would do well to exercise caution before allowing children ported by a consensus of the world’s Inspector Lestrade (Eddie Marsan) turns up in due course or younger teens to see this film. top climate scientists. It also shows to collar both the criminal and The plot definitely delves how the United Nations’ Intergov- the credit for the capture. into the realm of the strange ernmental Panel on Climate Change Blackwood is duly and absurd. The occult cer- is run by a small group of global hanged (and his death certified emonies, megalomaniacal warming zealots, who have repeat- by none other than our own Dr. villains, and the macabre dis- edly rigged evidence to support their Watson.) Yet his tomb is mys- coveries as Holmes closes in — theory. Visit www.continuumbooks. teriously broken open, and the while farfetched and occasion- dead man seen walking, appar- ally absurd — are all details com to learn more. ently unharmed. true to the original books, as It is quickly revealed that are the strained relations be- the hanged Blackwood was a tween Holmes and Watson on • After her dazzling conven- member of a mystical order a number of occasions. Even tion speech in August 2008, Sarah dedicated to using their black such eccentricities as Holmes’s Palin was on track to win John Mc- arts to manipulate the course bare-knuckle prowess and his Cain the presidency of the United of history. As mysterious kill- encyclopedic knowledge of States. Never before had a vice ings crop up around London, London soils are taken straight presidential candidate gotten such a Holmes and company must sift from the original. Though each strong response. Then Katie Couric through a myriad of clues to is accurate, these details do not and Tina Fey came along. find Blackwood and expose his make up the full picture. In The Persecution of Sarah nefarious plot before it chang- The romantic entangle- Palin: How the Elite Media Tried to es Britain forever. On the way, ment with Irene Adler, while Bring Down a Rising Star, Matthew Holmes and Watson will spend a favorite theory of Sherlock Continetti argues that Palin was a a night in jail, ransack illicit lab- Holmes fans, is not in the strong and popular conservative oratories, and survive a rigged books and is indeed contrary with traditional values — work, powder explosion before bring- to Holmes’s stated character — family, and religion — and Wash- ing the case to a successful con- the precise, sometimes cold lo- ington Democrats and their allies clusion. It sounds clichéd, be- gician is gone, and in his place in the so-called mainstream media cause it is. merely an eccentric. decided she had to be destroyed. The film is set at the end The physical action even More at www.penguingroup.com. of Watson’s time living with devolves into slapstick humor Holmes at 221B Baker Street. when Holmes is confronted Holmes refuses to admit it, but with a pugnacious giant of a he is afraid of missing Watson henchman seven feet tall. The • In his breakthrough new and tries repeatedly to draw him back into the chase and classic Victorian reserve demonstrated even in the midst of book, The War on Success, Tommy distract him from his fiancé Mary Morrison (Kelly Reilly). precipitous action by previous cinematic Holmeses — such Newberry exposes how the Obama Watson sees this as betrayal, and the repartee between the as Jeremy Brett — is absent, and both Holmes and Watson administration has used the cloak of two drives many scenes through the film. Deviating from feel much more direct (“American,” perhaps?). The action “fairness” and “compassion” to ush- the books, Holmes has a romantic interest of his own — in the film is so frenetic that when Holmes finally does sit er in a new era of Big Government, Irene Adler (Rachel McAdams), object of Holmes’ profes- down and put his logical mind to work, it feels more like an wealth redistribution, and a fatal de- sional admiration from A Scandal in Bohemia. She makes a aberration than his true nature. pendence on government assistance. splashy entrance back into Holmes’ life, unafraid of using Ritchie has produced a rollicking action film that just Make no mistake — President her feminine wiles to manipulate him for goals of her own. happens to be set in Holmes’ London. It is a watchable and Obama and his cronies in Congress The film is set in Victorian London, and the overall feel even enjoyable film for fans of Doyle’s characters, but with have declared war, only it’s not on the is predictably grimy, especially in the underworld that Hol- the original Holmes concentrated, enhanced, and caffeinat- terrorists who plot to blow up planes mes frequents. Ritchie has gone for more of an action vibe in ed for the American market, any trace of intellect or nuance or attack our embassies. It’s war this film than previous Holmes iterations, with shaky hand- is gone in favor of beautifully choreographed fight scenes against hard-working Americans. held camera work more reminiscent of The Bourne Ultima- and big-budget spectacle. But all is not lost, says Newber- tum than Amazing Grace or other period dramas. Holmes While large box office receipts and plentiful hooks ry; The War on Success can be defeat- and Watson walk, run, and fight their way through a richly for a Moriarty-centered sequel all but guarantee a suc- ed. More at www.regnery.com. CJ detailed world, but the flat lighting in many computer- cessor, this blockbuster reboot of the series adds noth- enhanced scenes gives it a feel of unreality in conflict with ing worthwhile to the canon. CJ FEBRUARY 2010 | CAROLINA JOURNAL PAGE 21 N.C. Farm Boy Malcolm P. McLean Revolutionized Shipping farm boy turned trucker from He transformed McLean Truck- were detachable and standardized to dustries grew exponentially while in- Robeson County, Malcolm P. ing from a one-truck, shoestring fit onto trucks, railroad cars, or ships. creasing global trade because McLean McLean, revolutionized global operation in 1934 into the largest Eventually, containerization became insisted on standardized containers shippingA and proved that big ideas trucking firm in the Southeast and the global standard. and a standardized shipping process. can originate in small places. fifth-largest in the United States. Like Government regulations once For $160 million, R.J. Reynolds “The Father of containeriza- some other Depression businesses, again forced McLean to adapt. purchased SeaLand Industries in tion,” McLean including North Carolina Mutual Life, McLean sold his trucking company 1969. When the Interstate Commerce revolutionized the McLean Trucking grew during lean because seven railroads accused him Commission’s regulatory power was shipping industry financial times by cutting costs and of violating the Interstate Commerce scaled back in the 1980s, containeriza- during the 1950s embracing innovation. By the 1950s, Act; he needed the ICC’s approval to tion became more popular in the Unit- and 1960s and McLean Trucking operated approxi- own two or more carriers with a com- ed States and more and more goods his innovations mately 1,800 trucks shipping products mon interest. After failing to acquire were transported to the country. increased trade be- to 37 terminals. the government’s approval, McLean Few had imagined containeriza- tween the United Government regulation prompt- did what many would never do: he tion’s widespread influence. Business States and China. ed McLean to seize on the idea of sold his 75-percent interest in McLean leaders had predicted correctly that His big idea: an container shipping. Different states Trucking to embark on a risky eco- McLean’s containerization would independent box had different weight regulations, and nomic venture. He changed Pan-At- replace older transportation methods. container (trailer) TROY truckers were fined frequently for car- lantic’s name to SeaLand Industries. They failed to envision how the North placed in a truck KICKLER rying overweight shipments. Under McLean’s helm, SeaLand Carolinian’s innovation ultimately in- bed on wheels. So McLean purchased Pan- Industries grew to be the world’s creased goods production and global These standard- Atlantic Steamship Co., letting trucks, largest cargo-shipping business. The trade. ized containers were removable with his newly designed, stackable maiden voyage of the S.S. Ideal X, a According to Anthony J. Mayo from trucks and stackable on barges, trailers (containers), transport goods converted World War II oil tanker, and Nitin Nohria in In Their Time: The allowing more goods to be shipped at to ports. There, the containers could proved that containers could trans- Greatest Business Leaders of the Twenti- cheaper prices. In doing so, McLean be hauled by barges to other ports, port goods safely. Clients were readily eth Century (2005), McLean had revo- adapted to and overcame government and then removed and placed on available. lutionized an industry, and by the end regulations. truck trailer beds and driven to ware- With McLean’s encouragement of the 1900s, “container shipping was While growing up in Maxton, houses. and persuasion, ports started building transporting approximately 90 percent McLean assumed extra work to Although containers had been facilities compatible with container of the world’s trade cargo.” CJ supplement the family income. After used to ship products for centuries, ships, which could adapt to changes graduating high school, McLean en- the U.S. method — McLean’s method in the shipping industry; Oakland, for Dr. Troy Kickler is director of the tered the workforce in the midst of the — was new: the containers were never one, attracted Asian trade by building North Carolina History Project (www. Great Depression. opened in transit and the containers a container-ship facility. SeaLand In- northcarolinahistory.org). Stay in the know with the JLF blogs Visit our family of weblogs for immediate analysis and commentary on issues great and small www.JohnLocke.org YOUR HOME ON THE WEB FOR The Locker Room is the blog on the main JLF Web site. All JLF employees and many friends of the foundation post on this site every day: http://www.johnlocke.org/lockerroom/ NORTH CAROLINA PUBLIC POLICY Creating your own personal Key Account at www.JohnLocke.org is a great starting place for tracking the critical public policy issues facing North Carolina.

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The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 22 FEBRUARY 2010 | CAROLINA JOURNAL

Short Takes on Culture Book review ‘Avatar’ a 3D Eden Griswold: Trade Not Job-Loss Culprit •”Avatar” litical choices, and even his decision- • Daniel Griswold, Mad About Trade: been in recession about 12 percent of Why Main Street America Should Em- Directed by James Cameron making ability. the time. Like a superior investment, brace Globalization, Washington: Cato our more globalized economy has de- 20th Century Fox The book certainly rebuts the no- Institute, 2009, 208 pages, $21.95 livered growth rates at least as good tion that Washington was apolitical. as past protectionist eras but with less ames Cameron’s “Avatar” is It’s clear that he employed numer- By Joseph Coletti volatility.” everything you have heard. It is ous rent-seeking schemes to benefit Contributor And yet America still is not as ham handedly anti-American, his personal land holdings, and it’s RALEIGH open to trade as it could be, ranking anti-market,J and anti-military with an hard to ignore Ferling’s evidence that rade is great for consumers and behind 26 other countries. The trade overt parallel to the Pocahontas story. Washington mastered the strategy of producers. It gives us more barriers that remain have hurt poor Cameron’s created Eywa re- finding scapegoats to take the blame choices, lower prices, and better and middle class Americans, who face ligion is a barely veiled Gaia cult, for his military failures. Tquality goods than we would other- higher prices for food, basic clothing, though with some Christian elements. Still, this reader gets the sense wise have. It helps the country weath- shoes, and other low-price essentials. It provides a reminder of the Left’s that Ferling takes his case too far. er economic storms, improves foreign Someone earning $15,000 a year propensity to venerate any religion The author has an annoying habit of markets for our pays a week’s worth that isn’t explicitly Christianity or playing mind reader and armchair goods, makes of salary for tariffs, Judaism. psychologist. (Washington “must the world safer, while someone earn- As if that weren’t enough, there have known” this; he “had to have does more for ing $100,000 pays just are the Bush-era references to “shock felt” that.) the poor than two or three hours’ and awe” and “daisy cutters.” The Regardless of its faults, this book foreign aid, re- worth of salary. Tariffs natives don’t want the proffered has enough good points to make it a duces illegal im- impose the equivalent roads, schools, or medicines because worthwhile read for those who enjoy migration, has of a $155 food tax on they have a literal connection to all books about the Founders. For differ- little net effect Americans, according of nature. ent perspectives on Washington, you on employment, to international statis- The entire planet is a networked might also try alternative titles from and gets a bad tics. system. Nobody listens to the scien- Richard Brookhiser and Paul Johnson. rap for other America is losing tists who have all the answers and — MITCH KOKAI problems that it some jobs, Griswold manage not to scoff at the religious na- does not cause. writes, but trade is not tives because the biology of the planet Protectionism, the culprit. Job losses is evidence of the higher intelligence. • “2012” by contrast, is result from emerg- The former soldiers and marines Directed by Roland Emmerich a swindle and ing technologies, new turned mercenaries are the ones who Columbia Pictures “a conspiracy companies, and a do not recognize the divinity of the against the pub- changing economy. planet. Cameron’s humans are a Anybody with an active imag- lic.” Also, those jobs being diverse crew, but the white men and ination shouldn’t see “2012.” From Such are lost often offer lower Sigourney Weaver are the leaders. beginning to end, the movie is more the conclusions wages than the new Despite their connections with the like an interactive video game than Daniel Gris- jobs being created in planet, the blue natives seem to have a yarn of Earth’s crumbling demise. wold, director service sectors. no trade or other regular ties with It’s easy to figure out that of the Center for Trade Policies at the Between 1991 and 2008, America each other except to fight the outsid- storyline clichés are going to be Cato Institute, reaches as he makes the lost 3,613 manufacturing jobs with an case for free trade. He marshals an im- average hourly wage in 2008 of $17.72. ers. The biology of the natives also abundant, the impossible is going pressive amount of data in a relatively Over the same period, it gained 18,895 makes no sense. to happen — at times with ease — short space. The data are, if anything, jobs in service sectors with an aver- The film is a stunning visual and the “what would you do?” fac- more surprising than the conclusions. age wage of $20.52 and another 9,681 and technical achievement. In spite tor will plague almost every scene. The U.S. middle class is indeed jobs in service sectors with an average of everything, it is a joy to spend And depending on your belief shrinking, but so is the percentage of wage of $14.54. two and a half hours in Cameron’s system, the movie ignites a spiritual Americans with low incomes. Even Griswold adds, “America’s share bioluminescent 3D Eden. tone that cannot be avoided. so, the proportion of American house- of the world’s manufacturing value — JOSEPH COLETTI The screenplay never divulges holds earning $75,000 or more, adjust- added has remained steady at about 21 to whom people from all nations ed for inflation, grew from 25.6 percent percent since the early 1990s.” are praying, while the world erupts in 1990 to 32.1 percent in 2007. House- Griswold finds that employment in earthquakes, volcanic activity, hold incomes have grown despite the in the U.S. grows when American com- • The Ascent of George Washington: The and tectonic shifts. Rather than de- increasing share of compensation that panies employ more people abroad, Hidden Political Genius of an American fine God, “2012” uses an abundance has gone to non-monetary benefits, overseas investments have generated Icon of unfulfilled Biblical prophecy ele- NAFTA, and China’s entry into the more overseas sales, and the trade def- John Ferling ments. It also presents a few other World Trade Organization. icit grows when unemployment falls. Bloomsbury Press spiritual viewpoints to engage its Looking back further, America’s Foreign investments in government audience. growth in the late 1800s came in spite bonds have reduced interest rates by Even if you’ve long realized that Keep in mind this movie is of trade barriers, not because of them. 0.9 percentage points, allowing Ameri- the famous “cherry tree” story was science fiction, not prophesy. It is Immigration and population growth cans to borrow for less, despite govern- a myth, your impression of our first like most doomsday-type movies drove the American economy. ment deficits. president is likely based on a standard with its own unique twists and “From 1854 to 1944, the U.S. Griswold’s final recommenda- historical narrative that paints George turns. If you’ve ever wondered economy suffered 21 recessions aver- tion: National leaders should extol the Washington as an almost mythic, god- what it would look like to watch aging 21 months in length,” Griswold benefits of competition from imports. like character. California fall off the map, this is writes. “During that era, despite tre- Free trade is a matter of good econom- John Ferling tries to separate the movie to go see. mendous growth, the U.S. economy ics, justice, fairness, and social equity, the fact from the myth in his recent As fragile as the world system was contracting 41 percent of the time. he concludes. After reading his book book The Ascent of George Washing- is today, the movie depicts a com- … According to the National Bureau and examining the data, you may find ton: The Hidden Political Genius of an pelling story of irrelevant power of Economic Research, our nation suf- it harder to disagree. CJ American Icon. Despite his use of the grabs when facing catastrophic fered through nine recessions totaling word “genius” in the subtitle, Ferling conditions. 96 months in length between 1945 and frequently pans Washington, his po- — JANA BENSCOTER CJ 1985, representing 20 percent of the Joseph Coletti is the fiscal policy ana- time. Since then … our economy has lyst for the John Locke Foundation. FEBRUARY 2010 | CAROLINA JOURNAL PAGE 23 Paul Johnson’s Churchill Concise, Enjoyable, and a Joy to Read • Paul Johnson, Churchill, New York: notes, for ex- his eyes always and a bounder.” His political allegianc- Viking, 2009, 181 pages, $24.95. ample), it often on the next op- es were often quixotic and rooted in a flows like an portunity to es- romantic vision of the Empire; he near- By Hal Young epic story told tablish himself ly scuttled his career over self-rule for Contributor after dinner. in the eye of the India (which he opposed) and support RALEIGH The book public and the for the abdicating Edward VII (whom n Jan. 2, 1900, newspapers re- opens without next level of in- he tried to prop up). ported the escape of Lt. Win- i n t ro d u c t i o n , fluence. Cuba Amidst the narrative Johnson ston Churchill from a military and I was snared was a stepping drops in some sharp analysis. When prisonO in the Second Boer War. It was by the first para- stone to future Churchill was handed the premier- the first of many footprints Churchill graph: glories. ship over a demoralized Britain in would stamp on the new century. Of all the Much of 1940, for example, Johnson delineates The man who would be Britain’s towering figures Churchill’s life 10 distinct strengths Churchill brought first lord of the admiralty in World War of the 20th cen- was conducted to the position. As Johnson describes I and prime minister in World War II tury, both good with an eye to- it, Churchill was as much a dictator held an officer’s commission in both and evil, Win- ward vindicat- as Hitler and Stalin, but on the side of conflicts and commanded troops in the ston Churchill ing the memory the angels. The epilogue draws five trenches personally. He modernized was the most of his father, examples from the completed life of the Royal Navy, invented the tank, valuable to hu- Lord Randolph Churchill, including the value of hard championed the Royal Air Force when manity, and Churchill, a ris- work, resilience in the face of defeat, others would not, and warned Eng- also the most ing member and refusal to waste energy on petti- land of the threat of Nazism for years likeable. It is a of Parliament ness. while all others declared both him and joy to write his whose career Johnson also throws sudden Hitler crackpots. The same year he life, and to read flamed out in lights on our current situation. Most of slipped away from the Afrikaners he about it. None erratic behavior the world’s problems in the 20th and was elected to Parliament, at the age of holds more lessons, especially for that developed into insanity and an 21st centuries can be traced back to the 26, where he served for five and a half youth: How to use a difficult childhood. early death. Johnson discreetly omits First World War, he says. decades. As a journalist, author, and How to seize eagerly on all opportuni- the reason — Randolph Churchill’s Britain, in Churchill’s time at the statesman, he may have put as many ties, physical, moral, and intellectual. mind failed due to advanced syphi- Colonial Office, redrew the map of as 10 million words in print. How to dare greatly, to reinforce suc- lis, which he contracted as the result the Middle East to empower moder- So the reader may be forgiven cess, and to put the inevitable failures of a cruel prank by his friends in early ate Hashemite princes, but American for approaching Paul Johnson’s thin, behind you. And how, while pursuing adulthood. In fact, Johnson steers clear petroleum interests secured the Saudi 181-page biography (compactly titled, vaulting ambition with energy and rel- of any mention of impropriety in the Wahhabist factions who give us such Churchill) with skepticism. How can a ish, to cultivate also friendship, gener- Churchills, though other biographers trouble today. Johnson notes that Brit- biographer do justice to such a tow- osity, compassion, and decency. record that there were lapses of fidelity ain had been fighting Muslim funda- ering historical figure in such a short Like Theodore Roosevelt, Win- on both sides of their otherwise solid mentalists since the early 1800s, and compass? ston Churchill’s life was so active and marriage. hints that we might have done better Surprisingly, Johnson succeeds. multifaceted it staggers the imagina- Johnson doesn’t hesitate to to follow their lead in that region. It’s The book unfolds Churchill’s life with tion. Johnson records, by the way, that point out Winston’s many other faults, food for thought. the affection — and frankness — of a the two future statesmen met during though. “He was accused” — with There are many books about long friendship. Johnson inserts him- the war in Cuba; Roosevelt took a dis- good reason — “of abusing his posi- Churchill, not the least those he wrote self into the book on several occasions, like to the young Englishman, com- tion as a British officer and his civilian about himself. There are larger single- including his brief encounter with the plaining, “That young man Churchill is status as a journalist, and of breaking volume biographies of the man. How- elderly Churchill and his personal im- not a gentleman. He does not rise to his his word of honor as a war prisoner,” ever, it will be hard to find a more con- pressions of some Churchill associates feet when a lady enters the room.” Like Johnson writes. As a young man he cise and enjoyable Churchill than Paul the author met. While the book reads the older Roosevelt, though, Churchill had a reputation as “brash, arrogant, Johnson’s. As he promised, it is a joy like the popular history it is (no foot- was an enthusiastic self-promoter, with presumptuous, disobedient, boastful, to read. 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 FEBRUARY 2010 | CAROLINA JOURNAL

COMMENTARY If This is Oppression, It’s Fine By Me f you’re looking for a job these told Goldstein. days, there’s a good chance While Dowd spends time on you’ve interviewed with a com- this silliness, many women have Ipany run by a woman. Nearly one been concentrating on much more in four chief executives is a woman, important things. reports the U.S. Department of Since the 1980s, women Labor, based on 2008 figures. In fact, have dominated higher education, so many women are now in charge earning the majority of bachelor’s that DOL will likely soon remove and master’s degrees. In 2005-06, chief executive from its list of non- women earned 57.5 percent of all traditional occupations for women. bachelor’s degrees and half of the A job is classified by the feds bachelor’s degrees in business. Dur- as nontraditional only if women ing the same period, women earned comprise 25 percent or less of the 60 percent of master’s degrees and work force. Doctors, lawyers, and nearly half of doctoral degrees in all chemists already have fallen off disciplines. At Harvard, Princeton, EDITORIAL the list. If trends continue, criminal Penn, and Brown, women run the investigators, detectives, show. and software engineers Educational achieve- What Next will follow, since women ment has paid off in the account for one in five marketplace, despite femi- workers in these fields. nist criticism of the “wage For Easley? You’d never know gap.” The Bureau of Labor about these achievements Statistics survey shows by listening to feminist women earn 80 cents for ike Easley is in trouble. If you And since Easley put in place many rhetoric about the state of every dollar earned by a were not convinced when of the ethical guidelines he allegedly women in society. That’s man. Problem is, the gap the State Board of Elections violated, he would have a hard time Mmade a criminal referral to state pros- claiming ignorance as an excuse. a shame. Many outspoken DONNA reflects only the difference feminists helped spur, or between the median wage ecutors in October, then take a few For starters, Easley would never MARTINEZ minutes reading the 51-count federal have provided full detail of the sweet- have witnessed, the rise of of a female full-time work- criminal indictment of the former heart real estate deal he secured at the women in America. They er and a male full-time governor’s right-hand man, attorney Cannonsgate development in Cart- should be proud. Instead, worker. It ignores differ- Ruffin Poole. eret County, first reported in 2006 by they remain married to the same ences in experience, education, and The indictment alleges that Carolina Journal. Public records stated old complaint: Women are victims hours worked — factors we choose Poole, referred to as both the “go to Easley paid $549,000 for a lot that of a patriarchal, oppressive society based on personal priorities that, guy in the governor’s office” and the certainly would have sold for more that fails to many times, “little governor,” accepted free trips on the open market; the private clos- both recognize have nothing and other gifts from major donors to ing statement, obtained last year by their worth and Listening to to do with the Easley’s campaigns who were seeking The News & Observer, reported that provide the workplace. development permits from the state. he also got a 25-percent discount at opportunities feminists, For Poole leaned on regulators to approve closing. The deal had to be concluded it doles out to women inter- the permits and then profited person- in secret or it never would have been men. you’d never ested in politics, ally by investing in those projects. consummated. Every achievement is For obvious reasons, none of Several major donors appear now and then, know there’d also the lesson these transactions was reported on in the Cannonsgate saga. Gary and a well-known been any of recent history. ethics disclosure forms. The indict- Randy Allen, Easley appointees to the feminist treats The careers of ment also suggests that Poole laun- state Wildlife Commission, owned the us to a new achievements Nancy Pelosi, dered his ill-gotten gains through a development. twist on the Big Condoleezza business owned by his family, making An investor was Lanny Wil- Bad Men fable. Rice, Hillary it harder for journalists and other pub- son, another Easley donor who had New York Times Clinton, Sarah lic watchdogs to follow the money. If been appointed to the Department columnist Maureen Dowd recently Palin, Sonia Sotomayor, and Mi- true, it’s little wonder Poole may face of Transportation board. And the targeted President Obama’s golf- chelle Bachmann certainly haven’t years in prison and fines reaching six governor’s real estate agent was ing buddies as proof that even the been hurt because they’re women. figures. McQueen Campbell, who testified president who, as she told the L.A. In 2009, 90 women served in the That said, Poole is not the pri- to providing the governor dozens of Times’ Patrick Goldstein, “loves U.S. Congress — 17 in the Senate mary target of federal investigators. flights that should have been charged smart women,” can’t be counted on and 73 in the House. Six states have It’s Mike Easley. While the Easley to the campaign but were not — and to change male-dominated Wash- a woman in the governor’s man- team insists that the former governor who, at age 30, was picked by Easley ington. “I mean, Obama still goes sion, including our own. had no knowledge of what his most to the Board of Trustees at N.C. State off golfing with the guys for four If all this achievement is due trusted adviser was doing, Easley is University, where he helped create hours at a time. I give him credit to an oppressive society dominated (or should be) sweating. a high-salaried, makework job for for appointing a lot of women to by men, then count me among those Much like Poole, the former gov- Mike’s wife Mary. important posts, but I would never who hope things never change. CJ ernor appears to have not disclosed At its core, the Easley scandal have predicted that the first black fully benefits he received from people is about the abuse of public service president would have a lot of the who had business before the state. for personal gain. Poole’s indictment same man-cave tendencies as the Donna Martinez is an associate These were top campaign donors, is the most recent indication that the guys who came before him,” she editor of Carolina Journal. many of the same characters in the individuals responsible for this sordid Poole indictment, some of whom Eas- behavior may finally be held account- ley gave plum political appointments. able. CJ FEBRUARY 2010 | CAROLINA JOURNAL PAGE 25

EDITORIALS COMMENTARY Wake School Blunder A Farce Wake is lagging behind, not leading a trend Playing in Garner he North Carolina chapter of County students eligible for free or the NAACP is pursuing legal reduced-priced lunch scored at grade orth Carolina’s state and nies after major industrial acci- action under the federal Civil level on their reading and math tests. local politicians have of- dents are hard to find. While the TRights Act to force the school system The comparable share of Wake County ficially exhausted my abil- ConAgra accident may, at least on in Wayne County to end student-as- students was 44 percent. The passing ityN to understand what the heck paper, end up costing the compa- signment practices that, according to rate for black students was about the they think they’re doing. ny a little over $100,000 in fines, it the NAACP, are infringing on the civil same in each county, 45.5 percent in The setting for this achieve- has already cost the company mil- right of poor, black students to obtain Wayne and 45.2 percent in Wake. ment is ConAgra Foods’ Slim Jim lions of dollars in property dam- an education. • Among high-school students, plant in Garner, the setting of one age, lost production and sales, Rev. William Barber, president of the average passing rate on end-of- of the state’s most tragic industri- and higher workmen’s compensa- the NAACP chapter, has made it clear course tests among disadvantaged al accidents in years. Last June, a tion premiums. If the prospect of that Wake County may be the next students in Wayne was 60.4 percent, contractor at the plant was trying losing millions of dollars isn’t suf- target of litigation. By any fair reading vs. 58.5 percent for Wake. Black stu- to light a water heater in ficient to motivate other of the evidence, however, he should dents in Wake did do slightly better a room into which gas companies to learn from have sued Wake County first, years than Wayne on those tests, however. had been vented, due ConAgra’s mistakes and ago. Its disadvantaged students have As with previous warnings to a mistake by another seek to reduce the likeli- lower scores than Wayne’s. about the dire consequences of Wake contractor. hood of future accidents, The NAACP is under the im- County following the lead of Char- The resulting fire then adding a $100,000 pression that sorting and assigning lotte-Mecklenburg by junking forced killed four, injured about fine is pointless. students by race and class is the only busing, the NAACP and its support- 70 more, and did mil- As I wrote years way to provide them educational ers among politicians, activists, and lions of dollars in dam- ago for Policy Review opportunity. Wake is the only urban editorial writers appear not to have age to the plant. magazine, there is little school system in the state, and one of done their homework on the Wayne One state agency, evidence that the advent the few left in the nation, that engages vs. Wake comparison. the N.C. Department of JOHN of stringent federal and in widespread forced busing. That’s Charlotte-Meck’s supposedly Labor, went into regu- HOOD state regulation has had the policy the NAACP is trying to regressive school system also posts latory mode. After an a significant effect on maintain and expand, despite its higher test scores among disadvan- investigation and nego- workplace safety. Acci- manifest failure and broad unpopular- taged students than the Wake system tiation with ConAgra, officials dent and death rates fell at about ity. does. announced an agreement in which the same rate after the creation By virtually every measure, Just about every other urban the company would admit to 26 of the Occupational Safety and Wayne County matches or outper- school system has abandoned these health and safety violations, pay Health Administration as they did forms Wake County when it comes policies because they are costly, un- a $106,440 fine to the state, and before its creation, because com- to student achievement among the popular, and ineffective, not because agree to various safety improve- petitive markets already punish disadvantaged. According to the most of a secret longing for racial segrega- ments. industrial accidents severely. recent state test scores: tion. Wake is lagging behind, not lead- Meanwhile, other state and On any given day in Amer- • About 49 percent of Wayne ing a trend. CJ local government agencies went ica, thousands of local, state, and into economic-development national safety regulators are mode. The Slim Jim plant had inspecting businesses, studying employed 750 residents at the test data, issuing regulations, and Road Progress kind of manufacturing work that adjudicating violations. isn’t available elsewhere. Because But on that same day, mil- of the damage to the plant, 300 lions of American workers, man- But we can learn a lot from our neighbors workers have been laid off. agers, designers, and engineers In an effort to save the re- are working to make their work- orth Carolina has a weak cost-effectiveness. It doesn’t mean that maining jobs, public officials are places safer, to maximize sales economy, a corrupt political North Carolina’s highway system is hammering out a subsidy package and revenues, minimize losses, class, and a host of other chal- 20th in quality or adequacy. Unfortu- reportedly to include $450,000 and maintain good, long-term lenges.N But not all the recent news is nately, there are still many transporta- from the Perdue administration, a relationships with productive bad: according to an annual study of tion problems to address: similar amount from the town of employees. highway performance, North Carolina • North Carolina is worse than Garner, a grant from Wake Coun- The magnitude of private- has been getting better at managing its the national average in highway fatal- ty, and other perks still under sector safety efforts, both in time systems of roads and bridges. ity rates, narrow lanes, and bridges consideration. and money spent, far exceeds that Dr. David Hartgen, a profes- that are either deficient or obsolete. So North Carolina govern- of even today’s bloated regulatory sor emeritus at UNC-Charlotte, has • Only four states have more ment will accept a check from bureaucracy. produced the study for 18 years, using congested miles of urban interstate ConAgra and then send an even The ConAgra fine is best a combination of funding and per- than North Carolina does. bigger check to ConAgra. At the thought of as political theater, not formance data to evaluate the cost- • Only seven states have more very least, one might advise the as a deterrent to protect worker effectiveness of state highway systems rural interstate miles in poor condi- relevant clerks to save on the safety. And now that public of- nationwide. The John Locke Founda- tion. postage and handling by allowing ficials are preparing to give the tion was the publisher of the study for Looking at the national findings, the company to submit a single company an incentive package awhile, until it found its natural home it’s clear that North Carolina can still invoice for the net amount. worth several times the fine, what at the California-based Reason Foun- learn a lot about managing highway These policies aren’t just was supposed to be a tragic theat- dation, which has a national purview. systems from neighboring states with contradictory. They are nonsensi- rical performance is turning into a In the most recent report, Hart- better rankings, such as South Caro- cal. farce. CJ gen and his colleagues ranked North lina (4th), Georgia (9th), and Virginia I know it always makes Carolina 20th. That’s a significant (12th). the political class feel better to improvement from the state’s 31st Anyone who drives the roads “stick it” to private firms, but the John Hood is president of the ranking two years ago. Keep in mind, across these borders extensively can practical benefits of fining compa- John Locke Foundation. however, that this is a measurement of see and feel the difference. CJ PAGE 26 FEBRUARY 2010 | CAROLINA JOURNAL

EDITORIAL BRIEFS World Less Free in 2009

ccording to Freedom House’s annual report on political and civil report, Free- dom in the World 2010, 2009 was not Aa good year from freedom around the world. For the fourth year in a row, global declines in freedom outweighed gains. This represents the longest continuous period of global declines in freedom in the report’s 40-year history. Freedom House classifies countries each year as “Free”, “Partly Free,” or “Not Free.” In 2009, 89 counties, accounting for 46 percent of the world’s population, qualified as Free. Another 58 countries, comprising 20 percent of the world’s population, were Partly Free. The remaining 47 countries, comprising a third of the world’s population — some 2.3 billion people — were Not Free. Among the Not Free countries, Burma, Equatorial Guinea, Eritrea, Libya, North Korea, Somalia, Sudan, Tibet, Turkmenistan, and Uzbekistan were the worst of the worst, receiv- ing the lowest rating possible for both political Innovation is the Key to Prosperity rights and civil liberties. The number of democracies was at its make about 80 presentations each year all But the third reason for being optimistic may lowest level since 1995. around the state where I talk about the economy be the most important — indeed, it may be the “ace “The decline is global, affects countries and forecasts for the future. Many of the ques- in the hole” for the U.S. economy. In a word, the with military and economic power, affects Itions I get from attendees are about jobs. Questions reason is “innovation.” Economies never stand still. countries that had previously shown signs of like, “Where will the new jobs be?”, and, “How can There is an on-going process of some products and reform potential, and is accompanied by en- we ever hope to compete against countries where companies being destroyed while new companies hanced persecution of political dissidents and wages are so much lower?” and products are developed. The 20th century econ- independent journalists,” wrote Arch Pudding- These are important questions, and their omist Joseph Schumpeter coined the term “creative ton, Freedom House director of research. urgency has increased with the recession and the destructionism” to describe this transition. growth of global competition. And, as is frequently If creative destructionism is inevitable — in the case with economic issues, other words, if a better mousetrap is always going More FCC regulation ahead there are different answers to to be made — then countries that are best able to the questions. create new things — to innovate — will be the ones The Federal Communications Commis- One answer is pessimistic. that prosper over time. sion is close to implementing the most com- Some think the outlook for U.S. And here’s the good news. By many stan- prehensive government oversight of broadcast workers is quite gloomy. They dards, the U.S. has an economy that is most invit- programming in many years. Whether such think manufacturing jobs will ing to innovation. We have a flexible economy that regulation will pass constitutional muster is a continue to be lost to foreign allows businesses to shift resources and workers different matter, writes First Amendment ex- countries where worker sala- with little restriction. For the most part, failing pert Robert Corn-Revere in a new Cato Institute ries are much lower and where companies are not propped up and protected by policy analysis paper. products can be made at a frac- MICHAEL the government — although certainly some of the Many conservative pundits had feared tion of the cost. They also think WALDEN “bailouts” occurring in the past year went against a return of the “Fairness Doctrine”, which better-paying service jobs — this principle — and new companies aren’t barred required that the broadcast media present “bal- particularly professional posi- from competing. We also have an open and flexible anced views”, under the Obama Administra- tions — will increasingly follow the same pattern. education system that facilitates worker retraining tion. That hasn’t happened. Instead, the FCC This pessimistic outlook sees increasing num- and the development of new areas of study. is moving, with bipartisan support, to impose bers of U.S. workers limited to lower-paying service However, innovation is messy. It requires the regulations that broadcast outlets file extremely jobs in retailing, health care, and the restaurant old and outdated to be closed to make way for the detailed reports describing exact what they industry. new and modern. Losses will occur as new prof- But there is an alternative answer that is more its are made. Innovation is also hard to predict. aired. upbeat about the future of the U.S. workplace for Because the concept deals with the future and the Linked to the documentation require- three reasons. First, it argues that foreign countries unknown, much trial and error goes into the devel- ments are proposals to assure that broadcasters may not maintain their wage advantage with the opment of a new product or idea before it is com- address local needs, with advisory boards of United States. Countries with sharply rising stan- mercially viable. Hence, innovation best thrives in “local officials and other community leaders dards of living usually experience corresponding an unregulated, unrestricted economy with minimal to periodically advise them of local needs and increases in wages and salaries. rules and requirements. issues.” So while foreign workers may continue to be Where will the next innovations be made? It’s “The change in FCC procedures reinforces cheaper than their U.S. counterparts, the pay gap impossible for me — a mere economist — to say. the government’s ability to supervise content between the two may actually narrow – thereby But I do know they will occur, and both the U.S. and more intensively,” says Corn-Revere. making it less lucrative to move U.S. jobs to foreign North Carolina are in great positions to foster them. FCC regulation of broadcast media tradi- lands. Yet keeping our innovative edge requires that tionally has been based on spectrum scarcity, Second, the optimistic viewpoint says there both sides of the process — the destructive as well the contention that a finite amount of radio and continues to be advantages for companies locating as the creative — be allowed to progress unimpeded television signals can be broadcast, justifying near their customers. Foreign production may be by government to the greatest extent possible. This government regulation of content in the public fine for standardized, mass-produced products and requirement may be our biggest challenge! CJ interest. services, but customized products require feedback In the Internet age, this argument fails. CJ and interaction with buyers. So, as the marketplace becomes more specialized and customized, the Walden is a William Neal Reynolds Distinguished value of having a U.S. based location may increase. Professor at North Carolina State University. FEBRUARY 2010 | CAROLINA JOURNAL PAGE 27 Most Important Republican Since Reagan

ike many of you, I was in the Democratic majority for what it was— former or current Sens. Jim DeMint of point of early 2010, populism, not audience at the John Locke tired, wasteful, and corrupt. South Carolina, John Thune of South experience, is very much in style. Suc- Foundation’s 20th anniversary Gingrich tirelessly chased down Dakota and Rick Santorum of Penn- cessful candidates will need to rage Ldinner in January. I had come to pay the facts of the House post office and sylvania; and House members Eric against big banks, big government, tribute to the Foundation’s work and bank scandals. He brought trans- Cantor of Virginia and Mike Pence of and political elites. They will have to to chat with friends. I also had come parency to a system of perks and Indiana. exhibit strong anti-Washington bona to hear arguably the most important privileges that threw money away on Gingrich cannot win on star fides. Republican politi- things like daily ice deliveries to mem- power alone, even without Palin in Even though Gingrich inhabited cian since Ronald bers’ offices. He went toe-to-toe with the field. He maintains a high profile a national politics of the distant past Reagan — and yes, Democratic speakers Tip O’Neill and with several recent books, a Web site — a pre-9/11 one with Bill Clinton I haven’t forgot- Tom Foley. He understood the value — Newt.org — and by leading a think and budget surpluses — he is part of ten about the two of C-SPAN and a rousing floor speech. tank called American Solutions for the Republican establishment. He also George Bushes. In short, Newt was a hero. Winning the Future. But Romney and made what proved to be a strategic Newt Gin- At the Cary Embassy Suites last Huckabee are as recognizable as the mistake by backing Dede Scozzafava grich became the month, Gingrich was back to his old Speaker these days. Both are eagerly in a New York Republican primary first Republican self. Visibly older and more mea- sought after by the cable news stations late last year. Under pressure for her Speaker of the sured, to be sure, but still combative and the Sunday morning talk shows. activities as a state legislator, Scoz- U.S. House of and sharp. He went aggressively If the field is going to be that zafava promptly dropped out of the Representatives in ANDY after President Obama and the mas- crowded, moreover, it is hard to see race and endorsed the Democrat. 40 years when he TAYLOR sive expansion of government power how Gingrich can generate a unique Gingrich’s personal approval ratings, was sworn in on and commitment of public resources message. As a former Speaker and while not as low as the party’s, reflect January 3, 1995. Although he was in that have occurred during his young party leader, he has a reputation his image as an insider at a time when the position for just two Congresses, administration. Gingrich accused as a generalist. He will not be able it’s not particularly good to be one. he did much to push public policy in a Obama of neglecting national secu- to claim solitary specialization in a Still, don’t count Newt out. He conservative direction. Without Gin- rity at a time of great vulnerability. particular policy. It will also be hard is nothing if not persistent — it took grich there would have been no wel- Conversations before and after the for Gingrich to claim ideological him three tries to win his House seat fare reform and no balanced budget. speech inevitably revolved around a distinctiveness. His conservatism is as and he had his eye on the Speakership As Speaker, but more impor- possible 2012 presidential run. Would broad as it is deep. He also has no real the day he entered Congress in 1979. tantly before, Gingrich had trained an Gingrich do it? And if he did, could “base” in the party. Whereas Romney But winning the Republican presiden- entire generation of young Republican he win? can look to business and Palin to- tial nomination will be a tremendous candidates in the science of modern If he does jump in, Gingrich wards social conservatives, Gingrich challenge. I think both the party and campaigns. He taught them how to would first have to win the nomi- has no real home — even though he’s country will benefit if he decides to understand their districts, utilize new nation. That will be no mean feat. generally welcome everywhere. take it on. CJ technologies, and construct compel- Among his probable opponents are Gingrich may also be disadvan- ling narratives. He mobilized many former or current governors Tim taged by the tenor of the times. None House Republicans with his Con- Pawlenty of Minnesota, Mitt Romney of the other names I have mentioned Andy Taylor is Professor and Chair servative Opportunity Society and of Massachusetts, Mike Huckabee of can boast the kind of training ap- of Political Science in the School of Public instructed them in the art of parlia- Arkansas, Bobby Jindal of Louisiana, propriate for a future president that and International Affairs at N.C. State mentary opposition. He exposed the and, perhaps, Sarah Palin of Alaska; he can. But, at least from the vantage University. Can GOP Capitalize on ‘Mass. Miracle’?

he chattering political class in in his election and what took place Cook says retirements are creating a Gingrich, who helped organize Washington has been working in 2010 in the bastion of American “vicious circle” for Democratic politi- the Contract with America in 1994 overtime analyzing and dissect- liberalism is a complete disconnect, cians. For the first time Cook in this that helped the GOP take control of Ting the upset victory that Scott Brown and utter folly. election cycle, Cook sees a significant both the House and Senate, outlined engineered over Martha Coakley for Brown’s campaign platform risk that those Democrats could lose 10 suggested areas for GOP leaders the Senate seat consisted of being the 41st vote in the the House this year. to focus on ahead of a potential new previously held for U.S. Senate to both defeat Obamacare Cook also predicts that come No- contract for America. nearly 50 years by and deny Miranda rights for terrorists. vember there is a 50-50 chance Demo- 1. Jobs, jobs, jobs the late liberal icon Brown also understood that it was the crats will end up with fewer than 55 2. Balance the budget Teddy Kennedy. “economy, stupid” — he stressed tax Senate seats in the next Congress. 3. An American energy plan Finger-point- cuts and private sector job creation, The question is, Can Republicans 4. Congressional appropriations ing among the not the massive expansion of the fed- capitalize on the rejection of Obama’s reform left and the White eral government advocated by Presi- misguided programs and policies and 5. Litigation reform House began dent Obama, House Speaker Nancy offer commonsense solutions that 6. Real health reform before Democratic Pelosi, and Senate Majority Leader resonate with independents and the 7. Every child gets ahead nominee Coakley Harry Reid. middle class? 8. Protect religious liberty lost. It continues MARC What happened in the Massa- Former House Speaker Newt 9. Protect the rights of Ameri- both privately and ROTTERMAN chusetts Senate race was the complete Gingrich argues in the affirmative. cans, not terrorists publicly among rejection of Obama’s agenda and his In recent speeches and in ar- 10. Make defending America a confused and stewardship of America’s national ticles, Gingrich has outlined his vision “job one” for government dispirited Demo- security and domestic policy. for a “new” Contract with America Gingrich has outlined a well- cratic Party. To be blunt, Scott Brown’s elec- centering on the economy and budget, thought-out policy blueprint for GOP Some on the left argue that that tion has transformed the political government reform, ethics, and home- success in November 2010. Republi- President Obama has not tacked hard landscape in this country. What were land security. cans would be well advised to consid- enough to the left, while the White once guaranteed Democrat victories Speaker Gingrich believes there er Gingrich’s counsel. CJ House blames the defeat on the same for the U.S. Senate and House have would be a lot of advantages in Oc- “anger” that propelled Obama to vic- dissipated into competitive races with tober to having a contract-centered Marc Rotterman, a senior fellow at tory in 2008. the retirement or withdrawal of key campaign. He suggests that releasing the John Locke Foundation, worked on the The view by the president and Democratic congressman and senators a new contract in September would national campaign of Reagan for Presi- his political advisers that there is a and some top-flight recruits. serve as a “powerful unifier” ahead of dent in 1980 and worked in the Reagan correlation between what transpired Veteran political analyst Charlie this fall’s midterm elections. Administration from 1981-1984. PAGE 28 FEBRUARY 2010 | CAROLINA JOURNAL Parting Shot Financier Seeks to Compete With Pedro’s I-95 Empire (a CJ parody) By Mark Sanford receive funding from the following Southern Travel Writer sources: Golden LEAF Foundation, SOUTH OF THE BORDER, S.C. $80 million; federal stimulus financing, rmed with an estimated $125 $20 million; One North Carolina fund, million in government sub- $10 million, Rural Economic Develop- sidies, Wilmington financier ment Center, $20 million; Lanny Wil- ALanny Wilson is launching a head-to- son Tourism Venture Fund, $5 million head competition with the South of the Wilson credits Ruffin Poole, -for Border tourist resort. merly of the McGuire-Woods law firm, Located in South Carolina on for negotiating the incentives package Interstate 95, just across the North with the North Carolina Department Carolina state line, South of the Bor- of Commerce. “The ‘Little Governor’ der opened in 1949 and is best known no longer works for the law firm, but I for its souvenir shops, miniature golf, think we can find a position for him at Mexican cuisine, and a mascot named North of the Border,” Wilson said. Pedro. “Tourism is the state’s largest in- Business dropped off consid- dustry, and North of the Border will erably after South Carolina banned Lanny Wilson’s “North of the Border” tourist development will erect a large “Gringo” help the state remain competitive,” video poker 10 years ago. At one time mascot to compete with SOB’s Pedro for I-95 tourists. (CJ tourism photo) Commerce Secretary Keith Crisco told more than 700 persons worked at the continue. This will truly be a war be- new venture or spend more time with CJ. “Lanny Wilson has an excellent tourist center, but employment has tween the states,” he said. his family. reputation, and our studies show that dropped below 250. But South of the Wilson’s resort, to be named “I like my family, but I got to be the project will create 1,300 jobs and Border owners expect a turnaround, North of the Border, will be located just making deals or I will go nuts. With produce an annual economic impact of announcing in December 2009 invest- north of the South Carolina line, a few my bold vision, and subsidies from $249 million.” ments in major renovations that will be hundred yards from its rival. Wilson the state of North Carolina, I believe At press time, Gov. Bev Perdue completed this year. plans to offer many more attractions we can put that cheesy South Carolina had not responded to requests to dis- News accounts of the South of the than his competition — including a tourist trap out of business,” he said. cuss the project. Spokeswoman Chris- Border renovations caught Wilson’s at- 2,500-foot concrete observation tower And for a mascot? “I’m develop- sy Pearson told CJ Perdue was out of tention. He told Carolina Journal that he he purchased from Titan Cement Co. ing a character named ‘Gringo,’ and the country at an undisclosed warm lo- just had to do something. “North Caro- Wilson recently resigned from certainly hope that would not offend cation, and “trusts her commerce sec- lina has lost out on 60 years of tourism the state Department of Transportation anyone,” he said. retary to make sound judgments that dollars and we cannot allow this to board, and said he had to either start a The $130-million project would create jobs, jobs, and more jobs,” CJ

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