INSIDE THIS ISSUE: DEPARTMENTS Conflicts North Carolina 2 C A R O L I N A Education 10 arise in SECU Higher Education 13 Family House Local Government 16 Books & the Arts 20 fundraising Opinion 24 Parting Shot 28 effort /6 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION JOURNALFROM THE JOHN LOCKE FOUNDATION October 2009 Vol. 18. No. 10 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Justice Department overrules Kinston Biotech Incentives Bill Called Wasteful voters on elections Measure also raises By Lee Raynor Contributor concerns about KINSTON ity leaders appear unwilling to constitutionality challenge a U.S. Department of By David N. Bass Justice ruling that overturned a Associate Editor Ccitizen vote changing municipal elec- tions from RALEIGH partisan to n economic incentives bill eli- nonpartisan. gible for consideration in the The DOJ General Assembly’s short ses- vetoed the Asion next year would waste taxpayer change, say- dollars on risky investments and run afoul of the state constitution, lawmak- Under the proposed legislation, the president of the N.C. Biotechnology Center, Nor- ing its effect ris Tolson, would serve as chair of the board of directors for a nonprofit responsible would be ers and constitu- for administering the incentives. (CJ photo by David N. Bass) “strictly ra- tional experts say. cial.” Even some proceeds of the state’s tobacco settle- public-private partnership is nothing Acting legislators who ment, would bankroll the project ini- but a giveaway to venture capitalists Assistant Attorney General Loretta normally support tially. … and taxpayers are going to get stuck King wrote in a letter to Kinston offi- economic incen- To fund the loans, the company with the bill,” said Rep. George Cleve- cials that, “Removing the partisan cue tives to businesses would sell equity certificates (similar land, an Onslow County Republican, in municipal elections will, in all like- are leery of the proposal. to shares of ownership) to investors. during debate Aug. 10 on the House lihood, eliminate the single factor that The measure, known as the Life The goal: spur economic growth and floor. allows black candidates to be elected Sciences Development Act, would es- create jobs in a down economy. “The bottom line is we’d be bet- to office.” She is the same DOJ official tablish a private company to make But critics say the bill gives tax- ter off spending that money on other who recommended that the federal taxpayer-funded loans of up to $30 payers the short end of the stick by us- things, such as reducing taxes for busi- government “drop voter intimidation million apiece to biotechnology and ing public money to offer wealthy ven- nesses and individuals as opposed to charges against members of the mili- pharmacy startups in North Carolina. ture capitalists a risk-free outlay with a giving breaks to various sundry indus- The Golden LEAF Foundation, a non- hefty upside. Continued as “Justice,” Page 3 profit created in 1999 to distribute the “I really think that this so-called Continued as “Biotech,“ Page 2 AARP Losing Members Over Health Care Debate

PAID By Karen McMahan When asked what reasons seniors Contributor are giving for leaving AARP, Garner RALEIGH, NC U.S. POSTAGE PERMIT NO. 1766

NONPROFIT ORG. RALEIGH said he personally reads and answers he debate over health care re- the e-mails and that “the only issue is form has had an unexpected con- health care.” sequence for the nation’s largest Garner summarized the respons- Tmembership lobbying organization for es as ranging “from polite to obscene. seniors, AARP. People are quitting, be- Most of the drops are coming more from the very conservative side, the ul- lieving the group has embraced a par- the president’s health care reform pro- traconservative membership. They are tisan, left-wing agenda. Officials with posals. racist. It seems to me they are mostly the organization deny AARP has taken “I don’t have any specific num- sides. But those officials appear uncon- the ones who are sore that the election bers for North Carolina,” Garner said, didn’t turn out their way.” cerned about the defections. “but with 40 million members in the In a recent phone interview with “A lot of these people [drop- organization, the number of people ping out] just aren’t very sophisticated Carolina Journal, Bill Garner, commu- leaving isn’t that many. I don’t mean about what they understand,” Garner nications director for the North Caro- to downplay it because we don’t want added. “They just sound like what lina office of AARP, confirmed recent to lose anyone, but I can tell you that they hear on talk radio.” reports that 60,000 to 70,000 seniors the number of renewals is outpacing nationally had canceled their member- people leaving by 40-to-1, and new The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 ship since July 1 over concerns about memberships are 8-to-1.” Continued as “AARP,” Page 4 PAGE 2 OCTOBER 2009 | CAROLINA JOURNAL

C a r o l i n a Biotech Incentives Bill Called Wasteful, Risky Continued from Page 1 Journal tries,” said Sen. Neal Hunt, R-Wake, in a telephone interview. Hunt was one of Rick Henderson only six lawmakers to vote against the Managing Editor measure in the Senate. The provision that has stoked the Don Carrington ire of opponents would give private Executive Editor investors a taxpayer-funded credit if their investment in a biotech startup David N. Bass, Mitch Kokai didn’t perform as well as expected. Michael Lowrey Foes of the proposal say the credits Associate Editors would have taxpayers assume at least part of the venture capitalists’ risk. Jana Benscoter, Kristen Blair “We’re pretending to be the cred- Roy Cordato, Becki Gray it default swap agency, and it’s bad Paige Holland Hamp, David Hartgen Sam A. Hieb, Lindalyn Kakadelis business,” said House Minority Leader George Leef, Karen McMahan Paul Stam, a Wake County Republican. Donna Martinez, Sarah Okeson He compared the legislation to federal Karen Palasek, Lee Raynor bailouts of the auto industry. The N.C. Biotechnology Center (above), headquartered in Durham, has received $200 Marc Rotterman, Jim Stegall Supporters, however, say biotech million from taxpayers since 1984. (CJ photo by David N. Bass) George Stephens, Jeff Taylor incentives are a good way to stimulate Michael Walden, Karen Welsh North Carolina’s economy, create new requested by a bipartisan group of leg- Biotech performance Hal Young, John Calvin Young islators. employment, and expand the tax base During debate, several legislators Contributors — and that the bill would do all three. “It says explicitly in the consti- tution that the power of taxation will touted the track record of biotech in- “This bill is exactly what we need centives, pointing to the N.C. Biotech- Laura Barringer, Jacob Burgdorf to be doing in this time when we so never be contracted away, but they’ve Adrienne Dunn, Marissa Farell nology Center, which is headquartered badly need jobs across this state,” said empowered this company to issue tax Ben Goldhaber, Hans Kist in Durham but has offices across the House Majority Leader Hugh Holli- credits in a way that’s binding on the Caitlin McLean, Alex Pitsinos, state, as evidence of state funding pay- man, a Davidson County Democrat. state,” Kay told CJ. Sara Riggins, Andrew Schreiber ing off. Sponsors saw any chance of pass- Kay also said the constitution Editorial Interns “I think the track record of our ing the bill this year evaporate in the “flatly prohibits” lawmakers from Biotechnology Center is one that we Published by waning hours of the General Assem- granting legislative power to a private The John Locke Foundation bly’s session. The House passed an entity, and that it requires a vote of the should be proud of,” Holliman said. 200 W. Morgan St., # 200 earlier version of the measure in April people if the General Assembly tries to The Biotechnology Center, creat- Raleigh, N.C. 27601 overwhelmingly; the Senate altered the grant its credit to private entities. ed in 1984, is a nonprofit organization (919) 828-3876 • Fax: 821-5117 bill and followed suit in early August. Sponsors tried to bypass that that’s received more than $200 million www.JohnLocke.org But lawmakers, washed out from snag by inserting a provision specify- from taxpayers to fund biotech projects six weeks of tough budget negotiations ing that neither the private company in the state. Jon Ham nor a qualifying biotech startup “has The center claims to have created Vice President & Publisher and tense negotiations with Gov. Bev- erly Perdue over spending priorities, any power to pledge the credit or tax- 55,000 jobs at 500 companies, but Tri- ing power” of the state. But that addi- angle Business Journal reported in 2005 John Hood couldn’t reach a compromise on the Chairman & President House and Senate versions, and opted tion is meaningless since it contradicts that the center’s biotech investment to put off a vote until next year. “the whole purpose of the bill,” which portfolio had lost 41 percent of its val- Bruce Babcock, Herb Berkowitz A recurring theme during a half- is to lend the credit of the state, Kay ue over the previous two years. The Charlie Carter, Jim Fulghum hour of debate in the House Aug. 10 said. value of its investments had fallen by Chuck Fuller, Bill Graham was whether the bill infringed on the Transparency is another problem $11.23 million since 2002, the newspa- Robert Luddy, Assad Meymandi state constitution. That question has for critics. The private company au- per reported. Baker A. Mitchell Jr., Carl Mumpower, drawn scrutiny from legal experts. thorized by the legislature would have In 2007, the Journal also reported J. Arthur Pope, Thomas A. Roberg, “The problem with the bill from disclosure requirements not “quite as that a $10 million investment by the David Stover, J.M Bryan Taylor, a constitutional perspective is the very robust or expansive as the disclosure Biotechnology Center in a venture cap- Andy Wells requirements would be if it were gov- Board of Directors point of the bill,” said Jason Kay, a se- ital fund was worth only $1.3 million nior staff attorney with the N.C. Insti- ernment,” Kay said. when the fund closed down. Attempts to reach supporters of Carolina Journal is a monthly journal tute for Constitutional Law, in a tele- Regardless of the center’s track of news, analysis, and commentary on state phone interview. “It’s not like they’ve the measure for comment were unsuc- record, though, some see incentives as and local government and public policy issues chosen to do something constitutional cessful, but several lawmakers defend- a distortion of the marketplace. ed the bill during debate on the House in North Carolina. in an unconstitutional way. What they “The government should not be floor. ©2009 by The John Locke Foundation are trying to do is itself unconstitution- engaged in the business of financing or “This is indeed new territory for Inc. All opinions expressed in bylined articles al.” operating entrepreneurial endeavors,” are those of the authors and do not necessarily North Carolina … but it’s time for us to The bill goes too far even for said Bob Luddy, a Raleigh business- reflect the views of the editors of CJ or the do some bold, innovative things,” said some long-time supporters of eco- staff and board of the John Locke Foundation. Rep. Pryor Gibson, an Anson County man. nomic incentives. Rep. Rick Glazier, D- Material published herein may be reprinted as Democrat. Even some legislators who have Cumberland, told Carolina Journal that long as appropriate credit is given. Submis- Rep. Earl Jones, D-Guilford, said traditionally supported incentives, he had “real concerns” with the mea- sions and letters are welcome and should be the bill would increase North Caro- such as Glazier, don’t see them as a directed to the editor. sure’s constitutionality, particularly lina’s competitiveness and help move long-term solution. CJ readers wanting more information “the lack of oversight” and the delega- the state into the 21st century, while “In the short term, for economi- between monthly issues can call 919-828-3876 tion of authority for issuing tax credits Holliman argued that supporting the cally hard-hit regions and until we’re and ask for Carolina Journal Weekly Re- to a private entity. port, delivered each weekend by e-mail, or visit incentives would be beneficial over able to do a more comprehensive re- CarolinaJournal.com for news, links, and ex- Constitutional hurdles time. covery in this state, I have been in fa- clusive content updated each weekday. Those “Yes, it’s a new idea. Yes, it does vor of targeted incentives,” the Fay- interested in education, higher education, or The system authorized by the require a public-private partnership,” etteville Democrat said, “but I think local government should also ask to receive legislation would pose “glaring prob- he said. “But the life sciences industry it’s time to seriously examine whether weekly e-letters covering these issues. lems” and violate several provisions of is a big industry in this state — it re- they are producing what we said they the constitution, Kay wrote in a memo quires some out-of-the-box thinking.” would.” CJ OCTOBER 2009 | CAROLINA JOURNAL PAGE 3 Justice Department Overrules Kinston Nonpartisan-Election Vote Continued from Page 1 term council member Jimmy Cousins tant New Black Panthers” in Phila- said. “Does the government have more delphia during the 2008 presidential authority than the voter? How much election, according to The Washington power does the Department of Jus- Times. tice have? How much power is there Sixty-four percent of Kinston vot- in a vote? Is voting not any good any ers said “yes” to a November ballot ini- more?” tiative that would have switched city Cousins believes certain people elections from partisan to nonpartisan. pressured the department when they The measure passed by a 4,977 to 2,819 realized the possible results from non- margin, with seven of nine precincts partisan voting. approving the change. The DOJ deci- “To be sure, they had to get some- sion leaves the city as one of five mu- thing from somebody, or they wouldn’t nicipalities in North Carolina to hold have changed the ruling of the voters,” partisan elections, and the only one he said. east of Charlotte. Democrats have held a lock on King, in her letter, said the city power in Kinston for more than a cen- did not meet its burden of proof that tury. Neither a Republican nor an unaf- the change “has neither a discrimina- filiated candidate has won a city office tory purpose nor a discriminatory ef- since Reconstruction. fect.” King’s letter went on to declare, The city is on a DOJ “watch list” “In Kinston elections, voters base their following the Voting Rights Act of choice more on the race of a candidate 1965. The legislation was designed to than his or her political affiliation, and The citizens of Kinston (downtown shown above) voted to switch to nonpartisan overcome actions in some states that without either the appeal to party loy- elections, but the U.S. Department of Justice decided the effects of the change would were deemed to practice voter dis- alty or the ability to vote a straight tick- be “racial” and overturned the vote. (Photo courtesy of the City of Kinston) crimination. The act has been renewed et, the limited support from white vot- King recommended dropping a civil the need for party primaries. The city in various forms since its passage. The ers for a black Democratic candidate case against two of three Philadelphia would have saved about $20,000 if a latest renewal, in 2006, extends the will diminish even more. And given suspects and that her boss, Associ- primary had not been necessary in provisions to 2031. Some voting juris- that the city’s electorate is overwhelm- ate Attorney General Thomas Perrelli, September. dictions have been removed from the ingly Democratic, while the motivating went along. The Justice Department Edward Blum, director of the original list, but Kinston and portions factor for this change may be partisan, opened an internal inquiry of the agen- Washington-based Project on Fair Rep- of North Carolina and other states re- the effect will be strictly racial.” cy’s dismissal of the case in September. resentation, said the DOJ’s decision main on the list, and must have DOJ The letter cited voter statistics as Kinston has a five-person city is “very unusual,” but not without approval to change election proce- of Oct. 31, 2008: “… 14,799 registered council. Two of the five members are precedent. Blum dures. voters, of whom 9,996 (64.6%) are Afri- black. The city’s mayor, “Buddy” could recall only The partisan can-American.” Ritch, a white male, defeated a two- one or two simi- system requires President Obama appointed lar rulings in the The city has candidates with- King, a career lawyer in the depart- term black mayor, Johnnie Mosley. Mosley won his first term by a margin last five years. One decided not out a party af- ment, to her post in January. involved a Florida filiation to collect In the Philadelphia incident, sev- of fewer than a dozen votes in a race decision. about 600 signa- eral New Black Panther Party members against a white Republican. A black to appeal the Project on tures, or 4 percent in paramilitary clothing were filmed at mayoral candidate was defeated in the Fair Representa- Justice Department of registered vot- a polling place wielding nightsticks September Democratic primary, leav- tion describes it- ers, to get their and taunting white voters with racial ing only white mayoral candidates. decision self on its Web site names on the bal- epithets. The Times reported in July that Nonpartisan elections eliminate as a “not-for-profit lot. It was just legal defense fund such an incident designed to sup- two years ago Visit the new-look port litigation that challenges racial that prompted former state Rep. Ste- and ethnic classifications and prefer- phen LaRoque to initiate the fight for Carolina Journal Online ences in state and federal courts.” change. Several legal scholars have told Hilary Greene, a black teacher, Blum that only the city would have ran for Kinston City Council as an un- standing to appeal the decision in fed- affiliated candidate two years ago. She eral court, he said. Neither individuals lost the race. nor groups could appeal it. “If every “[She] was the impetus for the ac- person in Kinston were to sign on [to the appeal], they still could not sue,” tion,” LaRoque said. “I thought it was Blum said. “We’re always anxious to ridiculous to have to get nearly 600 help individuals and jurisdictions in signatures to run on the ballot. It was legal matters in which we feel the law something I’d thought about for years has been misapplied. I’m not positive and discussed with others.” we would make a firm offer [to Kin- LaRoque and other volunteers ston], but we would entertain one, if collected 1,430 signatures, or 10 per- asked.” cent of registered voters. The City The work would be pro bono or Council refused to place the initiative at a greatly reduced charge. on the ballot, but the signed petitions Council members, in their first overrode the council’s decision. The meeting after the decision, tabled a signatures were from whites, blacks, motion to pursue the DOJ ruling. old, young, men, and women, as was With links to the new CJTV and CJ Radio Web sites “I would like to be able to explain demonstrated when the county Board http://carolinajournal.com to voters who talk to me why, when of Elections verified the petitions, La- we voted for it, we didn’t get it,” two- Roque said. CJ PAGE 4 OCTOBER 2009 | CAROLINA JOURNAL AARP Support for Obama’s Health Care Plan Costing Members Continued from Page 1 you take, you’ll lose members.” to other governments and organiza- Alternative group for seniors Similarly on the AARP Web site, tions in 2008 and $21.6 million to the Videos from health care forums CEO Barry Rand wrote that “AARP AARP Foundation. Seniors seeking a conservative aired on Fox News, YouTube, and has not endorsed any comprehensive For example, AARP gave $10,000 alternative to AARP are finding one other sources show seniors ripping health care reform bill.” to the Center for American Progress in the American Seniors Association. up their AARP cards in angry protest But financial and lobbying re- Action, a Washington-based progres- The organization’s Web site reports over President Obama’s proposals. Se- ports paint a different picture. In 2008, sive think tank headed by John Podes- more than 10,000 new members have niors have said that the reported end- AARP spent nearly $30 million on lob- ta, former chief of staff to former Presi- joined since Aug. 1. Many of these new of-life counseling provisions originally bying activities, of which $6.87 million dent Clinton. The center has lobbied members, wrote President Stuart Bar- in H.R. 3200 — the main House health was spent in the fourth quarter alone, for universal health care as well as the ton, were “disgusted former members care legislation — might emerge in a according to lobbying disclosure re- Employee Free Choice Act and grant- of the American Association of Retired final bill. They’re also concerned that ports obtained from the U.S. House of ing amnesty to illegal immigrants. Persons (AARP).” cuts in Medicare touted by Obama and Representatives and the Senate. The Washington, D.C.-based In- “At one recent AARP meeting, Democratic leaders might limit access AARP lobbied members of Con- dependent Sector received $15,000. the moderator shut off the microphone to physicians or services. gress on a wide range of issues, from This group supports the proposed to stifle Obamacare questions and con- Asked why seniors join AARP, fair pay, housing, and transportation to health care “compromise” bill from cerns,” Barton said. “That speaks vol- Garner said “most join to get member health care and climate change legisla- Sen. Max Baucus, D-Mont. One provi- umes. It underscores why the AARP is discounts, services, and other benefits tion. sion would grant nonprofit employees losing so many members, why ASA is like our high-quality publications. AARP lobbied in favor of S. equitable treatment by providing them getting so many torn-up AARP cards Many aren’t really interested in is- 3408, the Comparative Effectiveness the same health care benefits, options, in our mail, and why our new group’s sues,” he said. Research Act, legislation that would and prices as federal employees re- membership is growing every day.” Member comments on AARP’s create an independent, nonprofit in- ceive. Phil Kent, a spokesperson for Web site tell a much different tale, stitute to review The Republican Main Street Part- ASA, said in a phone interview that showing many medical research his group has seen a big spike in mem- members are op- nership, a coalition of mostly moder- and determine the bership, especially in the Southeast, posed to the presi- ate Republicans, received $25,000. Its cost-effectiveness dent’s health care The loss of elected members include Sens. Susan though he didn’t have specific num- of medical treat- objectives. Collins and Olympia Snowe (Me.), and bers for North Carolina. “ASA offers membership in ments, proce- A message John McCain (Ariz.), along with Reps. the same benefits as the AARP. Seniors dures, tests, and from AARP Presi- Mary Bono Mack (Calif.) and Jim Ger- can go to our Web site (www.ameri- AARP seems drugs. dent Jennie Chin lach (Pa.) and California Gov. Arnold canseniors.org) and compare what we The institute Hansen saying directly tied Schwarznegger. offer versus the AARP.” CJ proposed in S. the group will not 3408 would be the support any re- to the group’s American equiva- form that would support for lent of Britain’s deny seniors free- National Institute dom of choice and President Obama’s for Health and claiming AARP’s Clinical Excellence policy agenda health care plan, (NICE) that ad- is driven by its vises the govern- Presents members sparked though AARP outrage. leadership claims ment-run National “So you Health System, ac- act shocked and not to have cording to a July editorial in The cal d u m b f o u n d e d when a majority endorsed Wall Street Journal. of your members the plan “What NICE believe AARP has has become in thomas become a mouth- practice is a ration- piece for the So- ing board,” the cialist Left?” responded one member, Journal said. In its effort to reduce bur- adding that “the only reason so many geoning health care costs, NICE limits have left AARP is because AARP has the treatments that Britain’s 61 million left its members.” One member even citizens are allowed to receive. quoted passages from H.R. 3200 that Seniors and patients with life- At a Headliner Luncheon Event, Noon, counter Hansen’s claims. threatening illness are the ones most ct In a phone interview, Bonnie, an at risk under this system because the O . 8, 2009 AARP member in Pinehurst, said she board uses a mathematical formula joined a couple of years ago but will to determine a “quality-adjusted life Benton Convention Center, Winston- not be renewing her membership. “I year.” The board has determined that Salem, N.C. do not want Obamacare or socialized “Britain cannot afford to spend more than about $22,000 to extend a life by medicine. The AARP talks out of both al homas whose twice weekly column sides of their mouth. They say they six months,” the Journal stated. As a re- C T , - don’t support it, but Obama says they sult, survival rates for cancer patients appears in more than 500 newspapers, has au- do support his plan. They support oth- are much lower in Britain than in the er policies that have nothing to do with U.S. thored 10 books, including his latest, Com- seniors, and I don’t want my money Critics say AARP receives mil- supporting causes I don’t agree with.” lions of dollars each year in grants mon Ground: How to Stop the Partisan War Still, Garner rejected the notion from the federal government, which that is estroying merica that AARP was picking sides in the it gives to other organizations, includ- D A . ing the AARP Foundation, to lobby for debate. “We’re nonpartisan,” replied Tickets $35 (includes lunch) Garner, “and there is no Obama health left-leaning issues. care plan. That’s left up to Congress. According to its IRS Form 990, Phone 919-828-3876 for ticket information Any position you take, or people think AARP awarded $28.6 million in grants OCTOBER 2009 | CAROLINA JOURNAL PAGE 5 New Term Limits Group Hopes to Get Pols to Take the Pledge By Karen Welsh likely voters backing term limits. Real “It’s a very sad situation,” Skvar- experience.” Contributor Clear Politics’ most recent polling av- la said. “They will do or say anything Philip Blumel, president of U.S. RALEIGH erage shows only 28 percent of Ameri- to stay in power — to stay there for- Term Limits, disagreed. ow to make a politician’s cans holding a favorable view of Con- ever. It’s just bad. Absolute power is “Incumbency is one of the prob- word his bond: Force candi- gress (with 63.5 percent disapproving). corrupting absolutely. They are out lems we have in Washington, D.C.,” dates to have a financial stake The concept came to Skvarla, he of touch with reality, and they really he said. “Being a senator is a nice job. inH the process. That’s the idea behind said, when he was seeking a bond for believe they are gods. I say to them, Why would someone want to give it the North Carolina-based Alliance for his own wetlands-restoration business. ‘It’s OK. Go to Washington, D.C., and up?” Bonded Term Limits (bondedtermlim- “I just had this ‘eureka’ moment,” do that for six years, but then go back Blumel and his organization say its.org), the brainchild of Pinehurst he said. “I said to myself, ‘There’s the and live in the real world that you cre- the best way to limit the damage done resident John Skvarla. solution. Just com- ated for everyone by career politicians is through a con- His new organization, which bine term limits else.’” gressional resolution to limit terms to a is filing for status as a tax-exempt, with performance S t e v e fixed number of years. But he does not 501(c)3 nonprofit, is designed to make bonds. This puts Group feels Greene, associate dismiss Skvarla’s alternative. those seeking office in the U.S. Senate some skin in the professor of politi- “Any effort by citizens to bring and House of Representatives put their game.’ The bond politicians have cal science at N.C. term limits about is great by me,” Blu- money where their mouths are when it not only shows become too State University, mel said. “If you have someone bond- comes to tenure in office. the world they said he person- ed on a term limit, the voters would To get the endorsement of the are serious, but enamored ally thinks bonded believe them. It certainly wouldn’t nonpartisan group, a candidate would it assures their term limits are an hurt. Term limits do sell to voters be- make a commitment to retire from of- constituency that of themselves “ingenious” idea. cause they love term limits. It would fice after a specified, limited number [politicians are] From an academic be a way for politicians to distinguish of terms. The pledge would be backed willing to take perspective, how- themselves, to make a commitment by a bond dedicating a portion of the their personal assets and put [them] ever, he said the plan simply wouldn’t and live up to it.” candidate’s assets. If the candidate is aside in a trust. That way, if they break work. That’s exactly what Skvarla said elected and does not retire at the end their promise, they are going to have “It’s hard to get people to know he is trying to achieve. of the set period, the assets would be to pay. Their bond is a verification of about [the pledge of a bond] or care “We need accountability,” he donated to charity. their intent.” about it,” Greene said. “The possibility said. “Voters are getting tired of dou- Skvarla thinks his is an idea Skvarla says the political class for it to truly be effective is truly lim- blespeak. What [politicians] say and whose time has come. A Public Opin- has become enamored of its grandiose ited.” what they do are two different things. ion Strategies poll conducted in Octo- surroundings and positions of author- He also said bonded term limits It’s mind-boggling. It’s just wrong, and ber 2008 showed a record 83 percent of ity. aren’t needed because he disagrees we need to clean up the cesspool,” he with the goals of the term-limits move- added. ment. Skvarla is hoping the movement Greene says reducing the period toward bonded term limits will gain of time elected officials serve would enough muscle to make a difference in shift the balance of power from elect- the next major election. ed representatives to special-interest “It’s like starting an Olympic groups. sprint from a dead standstill,” he said. “The consensus is that term lim- “This can gain speed. It can catch fire. its are not a good idea,” he said. “Re- This is a tea party. We could change search shows legislators get better at it the face of the 2010 election if we can Join us to explore public edu- over time. Term limits allow lobbyists get traction on this. The tipping point and unelected staff to run the show. has been reached. If we don’t do this, cation’s broken promises with It’s difficult now to get good legisla- the political class will stay in power Terry Stoops, JLF education tion through. We need politicians with forever.” CJ policy analyst.

Sandhills Freedom Club Oct. 12, 2009 Visit our Triangle regional page 6:30-7:30 p.m. Holiday Inn Bordeaux http://triangle.johnlocke.org 1707 Owen Drive, Fayetteville The John Locke Foundation Down East Freedom Club Oct. 13, 2009 has five regional Web sites span- 6:30-7:30 p.m. ning the state from the mountains New Bern-Craven County Public Library to the sea. 400 Johnson St., New Bern The Triangle regional page in- Western NC Freedom Club Oct. 19, 2009 cludes news, policy reports and 6:30-7:30 p.m. research of interest to people in Asheville Renaissance Hotel the Research Triangle area. One Thomas Wolfe Plaza, Asheville It also features the blog Right Piedmont Freedom Club Angles, featuring commentary Oct. 20, 2009 6:30-7:30 p.m. on issues confronting Triangle Monroe Hampton Inn residents. 2368 Roland Drive, Monroe

Phone 919-828-3876 for ticket information The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 6 OCTOBER 2009 | CAROLINA JOURNAL Fundraising Conflicts Surround Ousted Treasury Official By Sarah Okeson other diseases. The suggested dona- Contributor tion is $35 a night, but financial help is RALEIGH available. eeks after the state’s chief Edwin Poston, a general partner investment officer was fired at TrueBridge Capital Partners in Dur- from her $340,000 job, ques- ham, said the company donated $2,000 Wtions remain over potential conflicts to Family House after he and partner involving charitable donations she so- Mel Williams and their wives attended licited. a fundraiser for Family House at Ger- Patricia Gerrick, who was the rick’s invitation. deputy state treasurer before her Sep- “She invited us,” Poston said. “I tember termination, served on the didn’t know of the charity before Pat board of directors and a fundraising introduced us to it. This is something committee for the State Employees that’s near and dear to Pat’s heart, and Credit Union Family House in Chapel we thought it would be nice to make a Hill. According to the Family House donation on her behalf.” Web site and newsletters, at least 11 The state invested $50 million in donations of $1,000 or more were giv- TrueBridge’s CVE Kauffman I fund in en to Family House in Gerrick’s honor. 2007 and paid the company $537,857 in The state’s $60 billion pension management fees last year. fund either has investments in or does Other donors to Family House in business with companies that are con- honor of Gerrick include: nected to at least half of those donors. • Michael and Stacie Arpey. Mi- Unlike other states, the North chael Arpey works for Credit Suisse. Carolina Office of State Treasurer does The pension fund has about $500 mil- not have a formal policy on charitable lion invested with Credit Suisse and contributions solicited by employees. The State Employees Credit Union Family House in Chapel Hill (above) was the paid the company about $3.9 million Gerrick, who was recruited to beneficiary of at least 11 donations of $1,000 or more given in former deputy state in management fees last year. A sub- the SECU Family House board after treasurer Patricia Gerrick’s honor. (CJ photo by Rick Henderson) sidiary of the company, Credit Suisse she was treated for leukemia, said she Securities, has been a broker for the didn’t ask potential donors for money backs in return for pension fund busi- opened in March 2008 following a $7.5 pension fund. or suggest donors to the nonprofit. ness. More than 100 companies have million capital and endowment cam- • Wendell McCain, one of the “I specifically requested that any been subpoenaed so far. paign. It provides accommodations founders of Parish Capital Advisors of donations that would come in I would No public allegations of criminal for people connected to patients at the Chapel Hill, where the pension fund have no knowledge of in any form or wrongdoing have been made about nearby UNC Hospitals, such as bone has invested about $497 million since fashion,” she said in a phone interview. the North Carolina Teachers’ and State marrow transplant recipients and their 2004. The company received almost $3 But Greg Kirkpatrick, the execu- Employees’ Retirement System. families. It also serves burn victims million in management fees last year. tive director of Family House, said The 40-room Family House and people with eating disorders and • Art and Karen Pappas. The Gerrick suggested potential donors state has invested $55 million in three and helped raise $75,000 to $100,000. funds run by Pappas Capital Advisors He said she served on the Family and paid almost $600,000 in manage- House board from 2006 to 2008. State Investment Fees Rose as Portfolio Tanked ment fees last year. “She helped us raise a good North Carolina’s pension fund paid about $212 million in investment • Isaac and Pamela Green. He is amount of money in her role on the fees last year to outside fund managers, a 16 percent increase over the previ- the founder of Piedmont Investment board by putting us in touch with ous year, even as the pension’s assets tanked. Advisors of Durham. The state has some people,” Kirkpatrick said. “She Fees paid to managers of private equity — investments in companies more than $301 million invested with provided me some names of people that aren’t traded on a stock exchange — accounted for the biggest increase, Piedmont and paid the firm $851,554 she thought would be helpful. That’s going up about 51 percent to $62 million. Fees paid for real estate invest- in management fees last year. Pied- what you need in this business.” ments went up 18 percent to $65 million. mont recently was hired by the U.S. Kirkpatrick said Gerrick brought In comparison, the pension fund’s assets dropped last year by almost Treasury to help manage investments potential donors to a fundraiser at the 20 percent, to $60 billion. in the Troubled Asset Relief Program. Carolina Inn in downtown Chapel Hill The fees were paid under the watch of the state’s former chief invest- • Nina LeSavoy. She currently about two years ago. ment officer, Patricia Gerrick, who was fired in September. At press time, no works for Avec Capital in New York “She had about 30 friends with reason had been given for her termination. but previously worked for Cue Capital, her, and a larger group of 60 friends “In view of the returns it’s extremely excessive,” said Charles Heath- which was an agent for a $100 million had been at her house the night before erly, a former state deputy treasurer. investment the state made last year in writing checks,” he said. But the fees account for a lower percentage of the plan’s assets than Avista Capital Partners Equity. North Gerrick said she did not suggest the average for public pension plans with more than $5 billion in assets. The Carolina paid $767,123 in management potential donors to Kirkpatrick. average percentage last year was 0.384 percent, according to Greenwich As- fees to Avista last year. “I did not give him [Kirkpatrick] sociates, a Connecticut consulting firm. North Carolina’s fees accounted for Representatives of the other com- names of people,” she said. “He may 0.33 percent of the fund’s assets. panies that do business with the pen- have met people by my participation. Heather Franco, a spokeswoman for Treasurer Janet Cowell, said the sion fund declined to comment or did I didn’t give him a list of names to fees increased because former Treasurer Richard Moore added investments not return phone calls or e-mails. ask for donations. If he told you that last year. Heather Franco, a spokeswoman he was mistaken. I knew where I was The pension fund committed to investing in six new real estate invest- for state Treasurer Janet Cowell, said working. I knew that could cause prob- ments last year totaling about $714 million and 24 new private equity in- the treasurer’s office abides by the lems.” vestments totaling $2.2 billion. Those investments will be made over several State Government Ethics Act. A Chica- The revelations about donations years. go firm is reviewing the business and on Gerrick’s behalf come amid a wid- The pension fund paid about $12.8 million in management fees last investment practices of the treasurer’s ening multistate probe into pension year for the new investments. office. fraud corruption. The investigation, Franco said Cowell has hired a firm to look at how reasonable the fees In California, the State Teach- which started in New York, has led to are as part of a review of the investment practices by the Chicago investment ers’ Retirement System prohibits any- charges in that state against the for- consulting firm EnnisKnupp. one who does business with CalSTRS mer state chief investment officer and from making charitable contributions others who are accused of taking kick- Continued as “State,” Page 7 Continued as “Fundraising,” Page 7 OCTOBER 2009 | CAROLINA JOURNAL PAGE 7

State Investment Fees Rose as Portfolio Tanked Continued from Page 6 Fundraising Conflicts Arise

“We expect to make these findings available publicly towards the end Continued from Page 6 of the year,” Franco said. Some of the pension fund’s investments are with companies that are of more than $250 at the request of a being investigated in other states. board member, employee, or officer of North Carolina paid $302,158 last year in management fees for a $29.3 the pension fund. million investment with Access Capital LP II, whose parent company, Access Franco said the state treasurer Capital Partners, was mentioned in a complaint filed in March in New York doesn’t have a formal policy on chari- by the Securities and Exchange Commission. table contributions but is reviewing The federal agency, which is investigating a kickback scandal, said that current policies, including limitations Access Capital Partners paid a sham “finder fee” to get business from the on charitable donations. New York State Common Retirement Fund. The model code of ethics for the New York Attorney General Andrew Cuomo has organized a multi- National Association of State Retire- state investigation into corruption in pension funds. North Carolina was ment Administrators calls for pension part of a conference call of state AGs organized by Cuomo earlier this year, fund administrators to review trust but a spokeswoman for North Carolina Attorney General Roy Cooper would and conflict-of-interest laws to ensure not say if there is an investigation involving the North Carolina fund. that “relationships with other parties “In general, we’re pretty limited in what we can say about any multi- are not incompatible with the duties to state investigations,” said spokeswoman Noelle Talley. the system.” Cherokee Investment Partners, the Raleigh parent company of two lim- Officials at the State Ethics Com- ited partnerships to which North Carolina has committed an investment of mission did not return phone calls. $150 million, is the subject of a federal probe in connection with failed golf Former state Auditor Les Mer- Sign in Chapel Hill at the entrance of the and housing projects in New Jersey. ritt said North Carolina’s ethics law is SECU Family House. (CJ photo by Rick The New Jersey state inspector general issued a report last year find- murky and confusing but doesn’t ap- Henderson) pear specifically to prohibit public of- ing that a company backed financially by one of the limited partnerships signed and did not offer a reason for ficials from soliciting charitable contri- in North Carolina’s pension fund mismanaged a project on a landfill site in her departure. They maintained that butions. Bergen County. story until Sept. 24, when documents “There’s always the potential “Cherokee is cooperating fully with the process,” said Thomas Darden, from a public records request made of an appearance the CEO of Cherokee Investment Partners. by Carolina Jour- problem that they A former part-time contractor for the treasurer, Andrew Silton, also did nal and other me- had the authority work for Cherokee Investment Partners. Silton was the state’s chief invest- dia organizations to demand contri- ment officer before Gerrick. — Sarah Okeson California has revealed that she butions for future was terminated business,” said strict regulations Sept. 4 when she Merritt, now the refused to quit. executive director preventing Again, no reason of the Raleigh non- contributions in for the termination profit Foundation was given. for Ethics in Public the name of Gerrick also Service. claimed she re- In 2005, then- any retirement signed when in- state Treasurer terviewed by CJ Richard Moore system employee in mid-September, was criticized for saying, “I serve asking money at the pleasure of managers who did the sole fiduciary,” business with the treasurer’s office to meaning Cowell. contribute to a nonprofit foundation Gerrick was diagnosed with leu- he started to help state residents bet- kemia shortly after she was hired as ter manage their finances. Moore said the state’s chief investment officer. She at the time that this wasn’t a conflict of underwent a bone marrow transplant, interest. sometimes working from her hospital In late August, officials from the bed. ...is hiring! treasurer’s office stated that Gerrick re- “During my treatment there were people who were sleeping in their cars Carolina Journal is expanding to include Donors who gave between $1,000 because they couldn’t afford hotels,” and $5,000 to SECU Family House she said. more daily news coverage of politics and public After her recovery, Dr. Thomas in honor of Patricia Gerrick policy in North Carolina. We are also launching Shea, the director of bone marrow transplantation at UNC Hospitals, said Michael and Stacie Arpey two new regional Web sites, so we’re looking for: he helped recruit her to the board of Isaac and Pamela Green Family House. Pamela Joyner Gerrick served on a fundraising • An Associate Editor for Carolina Journal Nina LeSavoy committee for Family House but said Wendell McCain her role on the committee was confined • A regional blogger for the Sandhills area Teresa Myers to trying to get some talent for a fund- • A regional blogger for Down East Art and Karen Pappas raiser. Glen Sergeon “My role on that committee was Ellen and Frank Sullivan to bring talent in,” Gerrick said. “My The Williams Family Fund job on that committee was not to get Send resumes, clips and inquiries to Jon Ham, Publisher, TrueBridge Capital Partners donations. I was successful in obtain- ing some access to talent. I have not Carolina Journal, [email protected], or mail to 200 W. Source: SECU Family House Web site, asked anyone to make a contribution Morgan St., Suite 200, Raleigh, NC, 27601 newsletters to Family House. Not one person did I ask.” CJ PAGE 8 OCTOBER 2009 | CAROLINA JOURNAL McNeilly: Business ‘Warfare’ Encourages Strategic Creativity

By CJ Staff RALEIGH I think … there are a lot of similarities between hen looking for ways to im- prove your business, you business and warfare. They are both competitive might not think of turning to- situations. You are trying to lead people. You’ve wardW an ancient Chinese military text for help. But Mark McNeilly has mined got morale to build. You’ve got contests of wills Sun Tzu’s The Art Of War for lessons you can apply to the business world. and egos. And so there [are] a lot of similarities. McNeilly, executive director for brand management and strategic marketing Mark McNeilly at Lenovo, is author of Sun Tzu and the Author of Art of Business. He discussed themes Sun Tzu and the Art of Business from that 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 podcast.) meets the greatest resistance. So it is people. You’ve got morale to build. consumer, not necessarily the compa- much better to take an indirect ap- You’ve got contests of wills and egos. ny. Does a company that applies Sun Kokai: Sun Tzu. People who proach, to attack them in a different And so there [are] a lot of similarities, Tzu’s principles lead to improvements know anything about military strategy way, a subtle way that they may not and there is a lot that businesses can that benefit the consumer? have probably heard the name. Some expect. That … gives you an advantage learn from history and military war- in our audience may have read The Art and avoids a competitive response fare. A lot of people have seen those McNeilly: Yes. I think one of the of War. from them. parallels and applied them. things that he is very keen on is strate- I think the other thing that he gic creativity. So the principles are not McNeilly: Right. Kokai: Now let’s back up a bit offers is a different way of looking at a cookbook. They are a framework to and talk a little bit about Sun Tzu and strategy. Again, instead of this direct apply one’s strategic creativity. And Kokai: The principles in Sun Tzu how he came up with these ideas. approach and attacking, you know, the you have to be very creative in order to can apply to business as well? These are not new. We mentioned this enemy, you know, the two knights if find these positions that differentiate was an ancient text. So how long ago you will jousting or the two cowboys you from the competition and provide McNeilly: Yeah. There [are] 13 was this, and how often was it applied shooting out at the O.K. Corral, he is you with a much stronger position. different chapters he wrote. He was in his time? much more about a subtle approach, It takes a lot more thought to do that an ancient Chinese general, … but understanding the enemy’s weakness, than it does to just attack the competi- it has since become a classic on the McNeilly: It was about 500 B.C. trying to take advantage of that weak- tor on price, for example, or copying military side as well as moved a lot He lived during a time called the “Age ness, throw them off balance and win what they do and trying to do a little into business, even being mentioned of the Warring States,” which was a the victory. bit better. in the movie “Wall Street” and ”The time of a lot of competition between Sopranos,” the series. But yeah, there seven different states in China, each Kokai: There are principles from Kokai: So applying these prin- are some specific principles that busi- trying to control China and survive. Sun Tzu that can be applied to busi- ciples of Sun Tzu not only will help nesses can use from a strategic stand- And each of these states would look ness. But we are talking about two dif- one company try to vanquish another point. Really his principles apply to for strategic consultants, if you will, ferent things here. Warfare is designed in some certain market, but it should any competitive situation, whether it to come around and help them build to break things and stop people and end up benefiting the consumer and be warfare, business, sports as well, their strategies and lead their armies. help one society defeat or vanquish society at large? any competitive situation. And Sun Tzu was one of these travel- another, whereas business is a little bit ing consultants. And it was at this time different. Are there some things from McNeilly: Yeah, because it forc- Kokai: What are some of the he was a general and he took his learn- Sun Tzu that don’t translate as well? es again the strategic creativity that main things a business person can ings and put them down in this book, makes you come up with new ideas learn from Sun Tzu? The Art of War. Since then it has been McNeilly: Yeah, I think one thing for new products or new services or used by Chinese emperors, everyone people make an error on is trying to McNeilly: One of the things is from the first emperor all the way up apply everything directly. … When I new ways of doing business. So yeah, win all without fighting, that is one through Mao. It was used by Japa- was talking to my publisher about the the ultimate winner in this is the con- of his main principles. It is not neces- nese samurai to win control of Japan. book, many people before had tried to sumer. sary always to fight, but you might use It came to the West in the 18th century take Sun Tzu’s 13 chapters — his book a more indirect approach to achieve from a Jesuit missionary. Some think is organized into 13 specific chapters, a Kokai: You mentioned that this your objectives. Therefore, from a busi- Napoleon was influenced by his ideas. lot of specific quotes — and apply it di- has caught fire to some extent in the ness standpoint, that means you not And then it had become more popular rectly to business. The approach I took business world. Would you have a only want to get market share, but you in the West, in the military circles, ob- was very different. I went through his sense of how many businesses or the want to get profitable market share. viously in Asian military circles. And it book, saw … the quotes that kind of types of businesses that have started to And you do that not by having price has become much more known, again fell out that applied to business, and use these principles? wars and attacking your competitors first starting in Asia, Japan, Singapore, saw how they grouped together. They directly, but finding positions in the China, as a, not just a military text, but grouped into these six principles that McNeilly: You’ll see it more in the marketplace that you can defend and a business text and very, very popular I’ve got in the book and therefore are executive suite, in the people that do that it is very difficult for your com- in the West as well. much more applicable to business. strategy, the people that do marketing. petitors to attack you at. And in each chapter what I’ve got is One thing that has made it difficult for Kokai: Why do you think that a principle, followed by a quote that it to catch on is it is written for warfare Kokai: You mentioned that there this eventually caught on in busi- he has exemplifying that principle, in ancient China, you know, in 500 B.C. are several different pieces to this as ness? Obviously it has been around for followed by a military example, and And it is a series of quotes, so well. Beyond that basic one, what are roughly 2,500 years. Why did business then some business examples. So it is it is not very easy to read. So … one some others? people eventually say, “Wait a minute. a good mix of his ideas organized well, of the things that I tried to do in the We can apply this to what we are do- illuminated with his quotes, and then book was make it more available to McNeilly: Another one is avoid- ing”? followed by business and military ex- people and have it make more sense ing strength and attacking weakness. amples. to modern-day business people. Often in the West we have the view McNeilly: I think … there are a But those are the areas you that we must directly attack our com- lot of similarities between business Kokai: One of the other differ- would probably find it in, CEOs, petitors, but unfortunately that is what and warfare. They are both competi- ences is that the ultimate winner, we strategic people, marketing peo- competitors are expecting, and that tive situations. You are trying to lead hope, in the world of business is the ple, those kinds of folks. CJ OCTOBER 2009 | CAROLINA JOURNAL PAGE 9

JLF Web Site Promoting Transparency State Briefs Air quality improves By Karen McMahan Making or missing the grade Contributor North Carolina could tally Of North Carolina’s 100 counties, top-scoring govern- RALEIGH in 2009 the lowest number of n the three months since the John Locke Foundation ments include Wake and Mecklenburg, with an “A.” While high-ozone days of any year launched NCTransparency.com, a Web site connecting no county government is graded “F,” many are rated “D,” on record if current trends con- North Carolina citizens with information available on- including Ashe, Avery, Caswell, Lenoir, and Vance. tinue, according to a new John Iline from state agencies, school systems, and municipalities, None of the 115 public school systems listed has a Locke Foundation Spotlight report. some governments concerned over their low grades have grade of either an A or an F. Wake County Schools is the Report author Dr. Roy Cor- taken concrete steps to improve them, while others have top-scoring system, the only one to receive a B. Some of the dato, JLF vice president for research simply complained. school systems graded D are Gaston, Johnston, and Harnett and resident scholar, analyzed “Even the media are using the site to retrieve data,” County Schools. state numbers from the past 10 said Joseph Coletti, fiscal and health care policy analyst for Among the 22 state government entities listed, none years for ground-level ozone, JLF. Coletti noted a recent complaint from someone at the has an A or a B, and only the Department of Public Instruc- often called smog. The state’s Greensboro News and Record that the City of Greensboro’s tion has a C” Most state government entities are graded D. 2009 data showed signs of contin- grade was “misleadingly high” because government offi- The worst-performing with a grade of F are Judiciary, the ued improvement, Cordato said. cials too often have been unresponsive to the newspaper’s Office of State Auditor, the Office of State Controller, and the “As of September 1, the en- requests for information. State Health Plan. tire state of North Carolina had With advanced commu- Of the 549 local govern- reported only nine high-ozone nication technologies, individ- ments listed, only Columbus days,” he said. “And we should be uals have grown accustomed (population 992) earned an A clear about what that means. It does to having all types of informa- but that was not initially the not mean the entire state suffered tion available almost instanta- case. When Tim Holloman, the through nine days of high ozone.” neously. The idea for NCTrans- town’s mayor, first learned Co- The data actually present an parency.com grew from the lumbus had been awarded a D, even better picture, Cordato said. need for North Carolinians to he and other members of the “Those nine ‘high-ozone days’ have a single point of access to town council began working were recorded on only four distinct information on governmental with JLF to improve the grade. days,” he said. “In addition, they entities, Coletti said. Responding to JLF’s were recorded on just five of the “The report we did last recommendations, the town 41 ozone monitors the government year on transparency in gov- has since revised its Web site maintains across North Carolina. ernment, where we examined (http://www.columbusnc. In other words, this means that 36 the availability of information com), sporting a “Transparency of the 41 monitors across the state online as well as the ease and Initiative” section. With just the have not registered a single in- speed of retrieving informa- click of a mouse, citizens and stance of high ozone so far in 2009.” tion through government and visitors alike can review docu- school Web sites, highlighted ments detailing expenditures, revenues, contracts, number of the need for this Web site as JLF blasts Perdue trip an important first step in improving transparency,” Coletti employees and their salaries, transportation improvement said. plan, employee health care liabilities, audited financial As North Carolina struggles Instead of calling or e-mailing state agencies, schools statements, and other items. with one of the nation’s worst un- or other government agencies to request specific informa- In his newsletter to Columbus residents, Holloman employment rates, Gov. Bev Perdue tion, North Carolinians can now use the Web site to down- wrote: “The John Locke Foundation, a Raleigh think tank plans an Asian trip based on the load documents and link to other available resources on the and government watchdog, has rightly identified that in the same misguided economic develop- departments and agencies that interest them. age of the Internet and digital technology, citizens have an ment policies that contributed to the increased expectation for transparency in government.” state’s current economic woes. That’s Defining and measuring Wake County improved its grade by adding a Web the assessment of the John Locke site to show expenditures by category, and New Hanover When applied to government, JLF defines transpar- Foundation’s chief budget analyst. County’s school district and municipalities have improved ency on the Web site as meaning “citizens should be able to The N.C. Employment Se- their grades by adding a new salary database, said Coletti. see how their tax money is used by elected representatives curity Commission’s latest report In contrast, Mayor Keith Weatherly of the Town of and what bureaucrats are doing with the tax money they lists the state’s unemployment rate take from citizens.” Apex expressed concern about making the salaries of town at 10.8 percent for August, down JLF scholars have created a scoring mechanism that as- employees available online. In a phone interview with CJ, slightly from the adjusted July signs points to entities based on the availability of 24 impor- Weatherly stressed that he and other town employees are rate of 10.9 percent. The state has tant baseline documents or reports. While some resources responsive to any request for information, but they prefer had double-digit unemployment apply only to certain governmental entities, every depart- that people ask rather than have it online. Apex is rated D. for seven months and reached ment is expected to provide their budgets, capital improve- “I also take issue with the criteria they [JLF] are using a peak of 11.1 percent in May. ment plans, and employee salaries, for example. to grade us. Take salary. Yes, that’s public information, but I “With more evidence of the Two of the most important grading criteria, Coletti just don’t think it does justice to an employee to have salary state’s economic struggles, it’s espe- cially disturbing to remember that said, are whether a document or report is available online information online,” Weatherly said, “nor did they ask for the governor and her commerce sec- and if it is in a usable format. A local government might re- our input. Our town manager confirms that residents rarely retary plan a two-week trip to Japan ceive one point for having a particular item available online ask for the types of information being used to grade govern- and China next month,” said Joseph and an additional point if that document or report is in an ments.” Coletti, JLF Fiscal Policy Analyst. easily searchable format. “We’re not trying to hide things. We do intend to re- “Promoting trade is fine, “If, for example, a budget is available online, the entity consider the issue, but we have other priorities,” Weatherly but this type of junket fits with receives a full point but would not receive an additional full added. the ineffective policies that have point if the budget is available only as a picture instead of a In the meantime, the Apex Town Council has formed helped lead to North Carolina’s searchable word-processing or PDF file,” Coletti explained, a task force to examine how to redesign the town’s Web site ongoing economic slump,” he said. “because the deeper and easier one can drill down into the to include transparency as a feature. “By chasing individual companies data, the better.” And some items are weighted differently Coletti reports that a Wake County commissioner also with sweetheart deals, the state’s according to importance. objected, saying that posting some of the recommended leaders make North Carolina The transparency Web site also recalculates an agen- documents online would make it too easy for the public less competitive overall.” CJ cy’s score as documents or reports are added. to request more detailed information. CJ PAGE 10 OCTOBER 2009 | CAROLINA JOURNAL

COMMENTARY Congress Leaves School-Lunch Obama’s Questions Unaddressed in Bills

School Speech By David N. Bass for school nutrition programs. He in- Associate Editor cluded $100 million in additional fund- ritics of President Obama’s sought to use the speech to advance RALEIGH ing for the programs in his economic Sept. 8 address to schoolchil- Republican causes nationwide. dren should have avoided After all, there was very little ongress might consider a pack- stimulus bill, passed by Congress in Cexaggerated claims that the speech at stake in the 1991 election cycle. age of bills that would expand February. was a form of indoctrination. More The only races of consequence were the federal government’s role in About a half-dozen bills have sinister forms of indoctrination gubernatorial elections in Kentucky, providingC free or reduced-price meals been introduced in Congress that occur in public school classrooms Louisiana, and Mississippi. The to public school students, but notice- would expand or revise the programs, every day. Yet concerned citizens Republicans were outmatched in ably absent so far is any legislation ad- although none has been brought up in voiced a number of legitimate Kentucky. Bush clearly did not want dressing fraud in the entitlement pro- committee. complaints about the address that to support the candidacy of the grams. One bill, sponsored by Ohio the Obama administration and the Republican gubernatorial candidate The federal law currently govern- Democratic Sen. Sherrod Brown, mainstream media largely chose to in Louisiana, white supremacist ing school meal subsi- would allow high- ignore. David Duke. Only Mississippi had a dies — the Child Nu- poverty schools to en- Rather than engage in civil competitive election. trition Act — expired roll all students in free debate, Obama administration offi- Moreover, Bush maintained Sept. 30. At press time, breakfast and lunch cials and their apologists demeaned respectable approval ratings. An lawmakers were set to programs, bypassing critics of the speech. Secretary of October 1991 Harris poll found approve a temporary the application pro- Education Arne Duncan that 57 percent of respon- deadline extension; cess altogether. dismissed opposition to dents approved of Bush’s permanent reauthori- Another mea- the speech as “just silly.” performance as president. zation might not come sure, sponsored by White House spokes- A May 1991 Gallup poll until next year. Sen. Bob Casey, a man Robert Gibbs took it found that 68 percent of But Congress Pennsylvania Demo- several steps further and respondents favored the could act soon on bills crat, would allow compared the controversy Bush administration’s that would devote qualifying school dis- to “an ‘Animal House’ major educational initia- more taxpayer funds tricts to convert to a food fight.” Many of those tive, a plan to administer who posted comments on to the programs and paperless system. a voluntary achievement expand eligibility Rather than popular liberal blogs like test to school districts for students — even have parents self- Daily Kos and Huffington TERRY across the country. While while questions about report income on ap- Post used language that Bush’s popularity was on STOOPS the reliability of one entitlement, the plications, districts would gauge the any respectable publica- the decline, he had very tion would refuse to print. little to gain politically. free and reduced-price lunch program, number of students eligible by relying The Left also suf- Of course, the fun- remain. on income and poverty statistics from fered from selective amnesia. The damental difference between the The school lunch program is the U.S. Census Bureau or participa- National Education Association Bush and Obama speeches is that, meant for families at or below 185 per- tion rates for food stamps and Medic- (NEA) called Obama’s speech “a unlike the Bush address, the Obama cent of the federal poverty level, but aid. historic address,” which is quite a speech included administration- parents are required only to self-report Those bills don’t go far enough sea change from their denunciation approved lesson plans. Parents ob- household income on applications, for some child nutrition advocates, of a nationally televised speech to jected to lesson plans because they leading critics to wonder whether who suggest scrapping the income schoolchildren delivered by Presi- directed children to consider ways some families are gaming the system. threshold limits altogether, meaning dent George H. W. Bush in October that they could help the president. A Carolina Journal investigation that all students, regardless of income, 1991. The NEA was not the only The Obama administration eventu- last year revealed that over half of a would be eligible for free breakfasts group that radically changed its ally neutered a handful of these 3 percent pool of applicants in North and lunches. tune. After the Bush speech, accord- activities, but many leading ques- Carolina couldn’t prove eligibility to The New York City Coalition ing to The New York Times, Demo- tions remained. participate. The numbers this year are Against Hunger, for example, recom- cratic leaders insisted that the Bush In the final version, the les- similar. mends that Congress reauthorize the administration reimburse taxpayers “If you look at any district in school meals program to provide “uni- for the $26,750 used to hire a pro- son plans suggested that students America, you would find similar versal in-classroom breakfast and uni- duction company for the telecast. answer questions like: Why does Rep. William Ford, D-Mich., de- President Obama want to speak abuse,” said Lisa Snell, director of edu- versal lunch for every student, regard- manded that then-Education Secre- with us today? How will he inspire cation and child welfare at the Reason less of their household’s income.” us? What resonated with you from Foundation, a libertarian think tank. tary Lamar Alexander appear before Potential fraud remains the House Education and Labor President Obama’s speech? Why Nevertheless, lawmakers have Committee to defend his “spending is it important that we listen to focused on pumping more money into The latest data on free and scarce education dollars to produce the President? What other historic the programs and trying to get more reduced-price lunch verification in a media event.” The House majority moments do you remember when students to participate. North Carolina show that potential leader, Richard Gephardt, D-Mo., the President spoke to the nation? In a letter signed by a bipartisan fraud continues unchecked. added, “The Department of Educa- These questions were hardly neu- group of 40 senators in January, Sen. Federal law requires school dis- tion should not be producing paid tral, let alone educational. Instead, Tom Harkin, an Iowa Democrat and tricts each year to verify the incomes of they focused on self-awareness political advertising for the Presi- chairman of the Senate Agriculture 3 percent (or 3,000, whichever is less) of and personal reflection, rather than dent.” Committee, said that child nutrition participants considered “error prone,” the accumulation of knowledge. Because President Bush’s programs “play a critical role in pre- meaning households whose reported speech occurred about a month be- Ironically, Obama decried that very venting hunger and promoting healthy earnings are within $100 monthly, or fore fall elections, some Obama sup- tendency in his “historic” speech. CJ diets among children from birth until $1,200 yearly, of the income eligibility porters claimed that Bush had much the end of secondary school.” more to gain from his nationally limitation. televised address to schoolchildren Terry L. Stoops is education More funding, higher eligibility If applicants fail to respond, or than Obama did. There is no evi- policy analyst at the John Locke Foun- respond with evidence that shows too dence that the Bush administration dation. Earlier this year, President high an income, officials reduce or ter- Obama proposed a $1 billion increase minate their benefits. CJ OCTOBER 2009 | CAROLINA JOURNAL PAGE 11 School Choice in N.C. Takes a Small Step Forward in 2009 By Hal Young posed any broaden- only 6 opposed. or attended a private school would not Contributor ing of eligibility in The bill never was qualify. RALEIGH this way, partly to pre- considered by the The analysis from the legisla- he movement to allow greater ac- vent sports recruiting Senate, so it died ture’s Fiscal Research Division said cess to educational alternatives across school district this session. nearly 180,000 North Carolina students and programs, by expanding lines, but also because There are have diagnosable learning disabilities, charterT schools, providing tax credits of the documentation deeper under- and even discounting the startup costs for educational expenses, and giving load that would inevi- tones in this is- of the first year of the program, taxpay- homeschooled students more oppor- tably result. sue, though. The ers could potentially save as much as tunities to participate in public school NCHSAA offi- federal stimulus $5 million annually at the state level sports, did not advance this year. cials told Carolina Jour- package includes with similar savings possible for local However, says House Republican nal this summer that a $4 billion “Race school districts. Leader Paul “Skip” Stam, R-Wake, for the constant checking to the Top” initia- Even so, the House Education the first time in many years, some of and reporting of stu- tive led by Secre- Committee divided along party lines these proposals made it out of commit- dents’ academic sta- tary of Education and defeated the bill 21-26. tee, and one had an up-or-down vote tus and eligibility is a Arne Duncan and Finally, Stam, along with Reps. on the House floor. It’s a small step for burden even when the President Obama; Danny McComas, R-New Hanover, a big concept, but it’s a start. students’ records are they have indi- Ric Killian, R-Mecklenburg, and Jeff filed in the same dis- University of Florida Heisman Tro- cated that states Barnhart, R-Cabarrus, introduced a Public school sports trict with their team. phy winner Tim Tebow is sports’ imposing barriers bill to bring “Tax Fairness in Educa- Accessing records most famous homeschooler. against the ex- tion.” House Bill 335 would have pro- One of the more dramatic pro- from other districts, pansion of charter vided a tax credit of $1,250 per semes- posals was House Bill 1116, “Home private schools, or from homeschool- schools may find money from the pro- ter and $2,500 per year to families who Schoolers Participate in School Sports.” ing parents, they said, would further gram delayed or withheld. Gov. Bev- withdrew their children from public H.B. 1116 would have opened public complicate a thankless task for athletic erly Perdue has criticized the federal schools in favor of a private option; like school athletics to homeschooled stu- directors. guidelines. H.B. 687, students now homeschooled dents, though final decisions on access The bill narrowly lost in the or enrolled in private schools could not would be left with the local principals. House Education Committee, 16-17, Credit for their choice take part. Currently the N.C. High School Ath- with 23 members absent. Both Repub- Two other bills sought to give tax The official estimate found that letic Association bars students from lican and Democratic representatives credits to families whose educational state and local governments could playing on the teams of any school but sponsored the bill, but members of choices would save fellow taxpayers save as much as $60 million annually their own. both parties also voted to defeat it. money. House Bill 687, “Tax Credits for after the program started, but again, Both private- and homeschooled the measure failed in the education More charters in the future Children with Disabilities,” sponsored students are shut out of public school by Stam, and Rep. Shirley Randleman, committee on a party-line vote, 13 Re- programs, which has led them to de- House Bill 486, “Modify Charter R-Wilkes, would have given a credit of publicans in favor and 16 Democrats velop leagues for nonpublic school stu- School Law,” was sponsored almost up to $3,000 per semester, or $6,000 per opposed. dents. entirely by Democrats, including Reps. year, to families whose special-needs Stam said these bills should re- Even so, nonpublic school sports Marvin Lucas, D-Cumberland, Larry children were taken out of the public turn to the legislative calendar soon. are less available in rural than in urban Bell, D-Sampson, and Douglas Yongue, school system and educated at home Although the sports access and char- and suburban areas, and the collegiate D-Scotland; Republican Laura Wiley, or in private school. ter cap bills are likely gone for the re- success of Heisman Trophy winner R-Guilford, also joined the proposal. To be eligible, a student must mainder of the 2009-10 session, the tax Tim Tebow, a graduate of homeschool- This bill would have raised the have spent at least two semesters in credit bills — both of which have been ing in Florida, has continued to stoke state’s cap on the number of charter the public schools and been diagnosed introduced before — are revenue-re- interest in several states. schools from 100 to 106. It passed the with a learning disability. A student lated and may be reintroduced in next The NCHSAA has long op- House May 13 with 102 in favor and who had always been homeschooled year’s short session. CJ PAGE 12 OCTOBER 2009 | CAROLINA JOURNAL

Even in difficult budget year GCS Finds Funds to Reinstate Administrative Positions By Sam A. Hieb made whole — I certainly don’t want instruction. cant funding increases from federal, Contributor to give anyone that impression,” Green Ozment also noted a study that state, and local governments, allowing GREENSBORO said. “But they certainly have gotten was conducted several years ago com- school administrators to hire specialty or North Carolina’s school sys- additional dollars.” paring GCS to comparable school sys- and noninstructional personnel.” tems, there’s apparently never Garrett asked questions about the tems such as Wake County Schools and Furthermore, school systems a bad time to fill administrative chief student services officer, which Charlotte-Mecklenburg Schools. The “should pay special attention to spend- positions.F was reclassified from a supervisor’s study showed that GCS was “very lean ing on personnel because salary and In a difficult budget year where position to a director’s position with a in comparison to those districts,” Oz- benefits represent the largest single a doomsday scenario of massive bud- $6,000 increase in salary. ment said. category of expenditure for public edu- get cuts, massive layoffs, and com- Beth Fogler, GCS’ chief academic The reinstatement of administra- cation in North Carolina.” promised educational standards was officer, explained that the position was tive positions, even in the most dif- This has been far from a normal constantly being painted for the pub- part of Green’s regionalization plan, ficult of budget years, follows a trend budget year for any school system. lic, Guilford County Schools found the which includes several new initiatives in North Carolina that has gone on for GCS initially thought it would have to funding to reinstate several adminis- within student ser- almost a decade contend with as much as $38 million trative positions as staff put the finish- vices, one of which now. A 2009 John in budget cuts from the state. Making ing touches on its $590 million budget. is character educa- Locke Foundation matters worse, Guilford County com- Included in the final budget revi- tion. report titled “No missioners, on their own mission to sions were a chief student services of- “The re- GCS cites Bureaucrat Left streamline their budget radically, pro- ficer position at a salary of $165,000, a sponse we’ve re- community needs Behind” found vided practically no relief, granting the human resources director at a salary of ceived from the that North Caroli- school system the same operating bud- $87,000, and two project manager posi- community and to justify na’s public schools get as last fiscal year. tions at salaries of $71,000 each. internally is that “continue to add But the state ended up cutting The Board of Education put up we need to put reinstating administrative, only $21 million from GCS’ budget, some resistance, but it was weak, and much more effort noninstructional and salaries for the administrative po- the proposal passed by a vote of 9-2, into that initia- positions and instructional sitions were part of the final $4.9 mil- with board members Garth Hebert and tive,” Fogler said. support positions lion left over after several revisions. Of Darlene Garrett voting against it. In- “We need some- at rates that far ex- the $4.9 million, $3 million was held in credibly, board members asked for job one to supervise and lead that charge.” ceed enrollment growth.” reserve for operational expenses or — descriptions of a couple of positions, Board member Sandra Alexander The report broke down statistics in a worst-case scenario — if the state leaving the impression they weren’t asked staff to explain adequately to using various ratios, including stu- ordered the school system to return clear exactly what functions the new taxpayers how it’s possible to hire new dents per guidance counselor, students funds. hires would be performing. administrators when the district faces per teacher, students per principal, and Hebert supported that plan, say- “We could provide a job descrip- such daunting fiscal challenges. students per administrative position. ing the “sky’s going to continue to tion for board members if that would “If I were sitting in that audience According to the report, GCS had fall,” referring to the state’s budget be helpful,” said Superintendent Mo watching this meeting, the first thing I 119 students per administrative posi- situation. But Hebert’s support for Green after he was asked about the would say is this budget is too heavy tion, second only to Winston-Salem/ reserving $3 million didn’t keep him chief student services officer. with staff personnel, and that wouldn’t Forsyth County Schools, which had from casting a “no” vote to reinstate Green defended the positions, sit too well,” Alexander said. “What 104 students per administrative posi- the administrative positions, a decision saying they were part of the original can you say to the audience that we’re tion. Wake and Charlotte-Mecklenburg that ran counter to the vast majority of budget he presented earlier in the year. not being extravagant in that area?” — much larger school systems — had his fellow board members. But he also conceded that schools are Chief Financial Officer Sharon 227 and 154 students per administra- Before casting her “no” vote, Gar- still suffering from the effect of $22 mil- Ozment responded that although the tive position, respectively. rett stated her views succinctly. “I just lion in budget cuts. positions were technically administra- The report states that “since think this money needs to go back to “Schools certainly aren’t being tive, they directly support academic 2000, school districts received signifi- the schools,” she said. CJ

Visit the new-look Carolina Journal Online Visit our Wilmington regional page http://wilmington.johnlocke.org

The John Locke Foundation has five regional Web sites span- ning the state from the mountains to the sea.

The Wilmington regional page includes news, policy reports and research of interest to people in the coastal area.

It also features the blog Squall Lines, featuring commentary on issues confronting coastal N.C. residents. With links to the new CJTV and CJ Radio Web sites

http://carolinajournal.com The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 OCTOBER 2009 | CAROLINA JOURNAL PAGE 13

Study of Military History Making a Comeback Campus Briefs As the academic year moved By David J. Koon published a 50-page roundtable dis- into full swing, a variety of speak- Contributor cussion of American military history ers turned up on Triangle cam- RALEIGH that dealt with war in the context of its puses: Jonah Goldberg, Ron Wo- utside academia, military his- society. It has since published articles odard, and Angela Davis. tory appears alive and well. directly and indirectly related to war, The shelves of Barnes and No- and other journals such as the Journal • Jonah Goldberg, author bleO and Borders are lined with books of American History are also including of the New York Times best seller, about wars. Military movies, televi- more articles on the subject. Liberal Fascism: The Secret History sion channels, and documentaries are Other trends, too, hint that a cor- of the American Left from Mussolini immensely popular. Even on college ner has been turned. to the Politics of Meaning, spoke at campuses, students snatch up military In April, the long-empty profes- UNC-Chapel Hill on Sept. 28. His history courses as soon as they become sorial chair in military history at the talk on “Liberal Fascism” was co- available. University of Wisconsin at Madison sponsored by the UNC College But until recently, the field was was finally filled. Stephen E. Ambrose, Republicans and the UNC Fed- marching into scholarly obscurity. In the late historian and best-selling au- Gen. Dwight D. Eisenhower speaks to eralist Society for Law & Public 2006, John J. Miller wrote in National troops before the D-Day invasion. thor, had donated $250,000 to his alma Policy Studies. Goldberg is the Review that military history was near- mater to commemorate his mentor, specialist, while the percentage of de- ly “dead.” Other publications echoed William Hesseltine. Before he died in founding editor of National Re- partments that had a military history that sentiment. 2002, Ambrose had doubled his ini- view Online and currently NRO’s expert shrank to 1.9 percent. Military history is a sub-disci- tial contribution and pressured oth- editor-at-large. And military history itself pline of history that focuses on the ers, too, to support that professorship. changed, encompassing topics tangen- strategy, tactics, methods, and opera- Ambrose was one of the most popular • Should illegal immigrants tial to the battlefield. “Military histo- tions of combatants in armed conflicts military historians of his generation. have access to higher education ry,” explains Andrew Weist, a military throughout human history. To Miller But the chair he supported sat vacant in North Carolina? There were and other conservative writers, the historian at the University of Southern for years. no protests or disruptions when decline of military history reflects the Mississippi, “began to include exam- Now the University of Wiscon- that topic was discussed on Sept. rise of “tenured radicals” in universi- ining conflicts from new perspectives sin has hired the respected West Point 10 at UNC-Chapel Hill, as there ties. Student rebels of the 1960s became and historiographies.” graduate and professor John W. Hall, were when former Colorado U.S. professors and found the study of war But the decline of military history a specialist in unconventional warfare Rep. Tom Tancredo and Virginia objectionable. may at last be ending. — wars that involve forces other than U.S. Rep. Virgil Goode addressed An alternate view is that military One change can be found in lead- governmental armies. (Hall received the issue this summer (see article history’s popularity simply waned in ing historical journals, where over the his Ph.D. from the University of North on page 14). But of nine panel- favor of other topics. Beginning in the past 30 years military history largely Carolina.) The University of North ists, only one, Ron Woodard of 1970s, historians became more inter- has been absent. John Lynn, a military Carolina at Chapel Hill’s Peace, War, NC Listen, argued against admit- ested in social history, such as African- historian at Northwestern University, and Defense program, or PWAD, as ting illegal immigrants. (Bob Lu- American history, women’s history, says that during that period the Ameri- it’s known on campus, also has hired ebke of the Civitas Institute did and immigrant history — all of which can Historical Review “did not publish new faculty over the past three years not participate due to a death in had been largely neglected. a single article focused on the conduct and experienced enormous enrollment his family). Even so, the discus- Data from the American Histori- of the Hundred Years’ War, the Thirty growth. sion was calm and contemplative, cal Review support the idea that a shift Years’ War, the War of Louis XIV, the Duke University, Cornell Uni- partly because the chief sponsor occurred. In 1975, 2.4 percent of col- War of American Independence, the versity, Notre Dame University, and was the Parr Center for Ethics; its lege history departments listed a mili- Revolutionary and Napoleonic War, or Sam Houston State University are goal is to grapple with complex tary history specialist, while only 1.1 World War II.” It did print a handful of also searching for military specialists. issues. In addition, the first speak- percent had a specialist in women’s articles about the atrocities of wars, but By and large, however, lesser-known er, Noah Pickus, a professor at studies. By 2005, 8.9 percent of history not about their execution. universities such as the University Duke’s Kenan Institute for Ethics, departments listed a women’s studies But in March 2007, the Review of Southern Mississippi and the Uni- emphasized the intractability of versity of North Texas are filling the the problem. He framed the dis- vacuum left by Ivy League and elite cussion by saying that there is “no schools. good answer” to this question. Why is military history more popular? “The past decade has been • On Sept. 17, North Caro- a decade of war,” says Frederick Sch- lina State University’s “Issues and neid, a military historian at High Point Ideas Committee” showcased for- University. “Historians are products of mer Black Panther Angela Davis their environment, so the war has , in a and her thoughts on civil rights. A way, helped the profession.” former member of the U.S. Com- In a similar vein, Lynn points out munist Party, she was invited “to that “the world has simply gotten nas- shed light on the social injustices tier.” Terrorism, three wars, and inter- of the day” and because of her national violence are all “staring you work on “race, gender, and eco- in the face” and “even humanists have nomic circumstance.” The Issues to pay attention.” and Ideas Committee is a part This violence has translated into of the Union Activities Board, increased interest in military history. and its activities are paid with That and the success of a few universi- student fees. CJ ties that have jumped into the breach may allow military history to regain Compiled by Jenna Ashley Rob- the field. CJ inson, campus outreach coordinator David J. Koon is a research associate for the John W. Pope Center for High- with the John W. Pope Center for Higher er Education Policy (popecenter.org). Education Policy (popecenter.org). PAGE 14 OCTOBER 2009 | CAROLINA JOURNAL

COMMENTARY Leftist Group Tries to Squelch My Climb Up The Learning Curve Differing Opinions at UNC-CH By Jay Schalin • In April, protesters turned vio- Contributor hen I joined the Pope a small school in New York state, lent and chased YWC’s invited speaker, Center three years ago, I Hamilton College, donated $3.6 RALEIGH former U.S. Rep. Tom Tancredo, from thought I knew a fair bit million to build a center for the ill UNC-Chapel Hill let left- the campus. This is the event at which Wabout higher education. In addition study of Western civilization. Once wing groups silence a legiti- the threat was chanted to Matheson, to reading widely to prepare for the an angry wing of the faculty spoke mate college organization and at which Koch was arrested. job, I’d spent more than 20 years as up, the school rejected it. The list throughW a campaign of intimidation? • Protesters tried to disrupt an editor working with academic continued. Even the University of That is the key question raised by a speech by former U.S. Rep. Virgil scholars — and I am married to Chicago was attacked from within the most recent incident involving the Goode, but failed due to a much stron- an emeritus professor and former for proposing an institute named UNC-Chapel Hill student organization ger police presence. Six nonstudents department head. for Milton Friedman. Youth for Western Civilization (YWC) were arrested for disorderly conduct. and a coalition of leftist groups. The After the speech, one protester shout- But I had a lot to learn. The And then there’s tenure. Bar- coalition includes student groups such ed at Matheson, “We know where you Pope Center’s goal is to help cor- ring extreme dereliction of duty, as the Students for a Democratic Soci- live.” Matheson responded, “… just rect the problems facing academia tenure gives faculty members job ety (SDS) and nonstudents. stop by my house ... since you already — such as rising costs, left-wing security for life. This security is According to a Sept. 19 Raleigh know where I live. I’ve got a 12-gauge.” ideologies, slipping academic stan- costly to universities and creates News & Observer report, anonymous • A week or so later, campus po- dards, and the loss of a common disincentives for productivity, so fliers appeared on the Chapel Hill cam- litical groups met to clear the air. An curriculum. To be effec- administrations (especial- pus providing the name, photograph, SDS representative rejected the right of tive, I had to expand my ly public ones) are slowly phone number, and home address of “racists” like the YWC to exist on cam- knowledge. Let me share cutting it (in some cases the YWC’s faculty pus. Matheson with you some of the curi- piling on administrative adviser, emeritus ignored the provo- ous things I learned, good jobs at the same time). professor Elliot cation to turn the and bad. But that leaves a Cramer. The fli- The court’s meeting into a My first discovery: privileged, tenured elite ers asked, “Why shouting match. Many academics have at the top of the faculty is your professor leniency The contro- a lot of time on their pyramid. Just how cushy supporting white seems to have versy caused Cle- hands. Why else would the life of the elite faculty supremacy?” mens to step down the leading news journals JANE can be was revealed at YWC presi- emboldened as YWC’s adviser for higher education, the SHAW N.C. State this year. dent Nikhil Patel in June. Clemens Chronicle of Higher Educa- It was bad enough perceived an im- protesters said of YWC’s tion and Inside Higher Ed, that the chancellor and plied threat in the public image, “It’s publish lengthy commen- provost had agreed to flier. It was not a magnet for the tary, analysis, and, well, chitchat, short-circuit normal channels to hire the first time similar tactics have been radical left to come shut you down.” ranging from the arcane (“Empathy the wife of North Carolina’s gov- used against YWC. At an April YWC Cramer stepped into the breach in Sep- in the Virtual World”) to the popu- ernor and later to pay her lavishly. event, protesters chanted in reference tember to enable YWC to continue. lar (“Why We Love ‘Mad Men’”)? The arrangement (when revealed) to YWC’s president at the time, Riley The trial for Koch and the six pro- For people in the “real world” — led to their resignations. But then Matheson: “Against racists, we will testers arrested at the Goode speech and indeed for the most productive the perquisites associated with the fight. We know where you sleep at was Sept. 14. Two pleaded guilty, one academics — time to write such two administrators’ “retreat rights” night.” was declared not guilty, and the others commentary is hard to come by. became known. After Patel informed Cramer of had their charges dropped. According People in academia (includ- The chancellor was given the potential threat posed by the flier, to The News & Observer, supporters of ing administrators) can be nasty. a six-month leave at his full pay Cramer replied in an e-mail that “I the defendants outside the courthouse In 2007, I wrote an article in Inside of $420,000 — to prepare for the have a Colt .45, and I know how to use “called on Thorp to dissolve Youth for Higher Ed, defending regional ac- teaching job to which he would it.” Cramer said this was a joke, and he Western Civilization.” creditors against more government retreat, which was going to earn copied the e-mail to school Chancellor The court’s leniency appears to intrusion. My article may have been him $252,000. The provost’s initial Holden Thorp and Haley Koch, a lead- have emboldened the radicals. Not a little naive, but it wasn’t “strewn deal was even more generous. (Both er of the protesters who was arrested at only did the intimidating flier appear, with factual errors” as one com- were rescinded after heavy public- an earlier meeting. but Koch quickly declared that the mentator blithely claimed. I had ity.) Thorp responded by asking for group would continue its campaign expected more decorum. Such tales of real academic life Cramer’s resignation as the group’s against YWC — including taking ac- When aroused, faculty can notwithstanding, I’ve learned posi- adviser. While Cramer told the Dur- tion against the group’s next sched- respond like Furies. In late 2006, tive things, too. I have met wonder- ham Herald-Sun that he thought Thorp uled speaker, Bay Buchanan, Koch a group of humanities faculty at ful teachers. In fact, the Pope Center had “overreacted,” he also understood said. She added that Clemens’ resig- North Carolina State University honors North Carolina professors Thorp’s concerns that “Haley [Koch] nation shows that “sometimes protest heard that a dean was interested with our annual Spirit of Inquiry or these other people would use [the and ‘controversy’ are necessary to cre- in obtaining a grant from the Pope Award (watch for our report in the e-mail] against me or the university.” ate social change.” Foundation (not the Pope Center). next month or two). Cramer tendered his resignation. By appointing the three new Because the Pope Foundation is The world of higher education Thorp briefly shut down YWC, YWC advisers, Thorp has allowed the considered a conservative organiza- is an exotic one — too exotic when since it had no faculty adviser. But by group to continue on the Chapel Hill tion, left-wing activist faculty mem- you consider that the taxpayer pays Sept. 21, three other faculty members campus. But the leftists are likely to bers abhorred the thought. (They for so much of it — but it is never — including astronomy and physics remain disruptive in their attempts to probably also sensed that they were boring. CJ professor Chris Clemens, the group’s silence conservative voices at UNC- unlikely to be recipients.) Their original adviser — had stepped for- Chapel Hill. CJ virulent reaction hit the papers. Jane S. Shaw is the president of ward to advise YWC. Such reactions have occurred the John W. Pope Center for Higher The anonymous flier is part of a Jay Schalin is senior writer at the around the country. An alumnus at Education Policy (popecenter.org). long series of events of intimidation, John W. Pope Center for Higher Education including: Policy (popecenter.org). OCTOBER 2009 | CAROLINA JOURNAL PAGE 15

Opinion No Clue State U’s ‘Beer in Hell’ Puts University on the Hot Seat orth Carolina State University munity. Not only “The thing about cusations of rape — that his personal seems to like learning the were they aghast at Tucker is that he appearance makes him appear to be hard way. It is almost as if Max’s disparage- was smart enough “a role model on our campus.” NNCSU stands for “No Clue State U.” ment of women to write it down. If He does indeed promote a The university’s 2008-09 school (“all women are he can make a liv- culture of anti-social drunken behav- year was dominated by the Mary whores,” he once ing at it, all power ior. He declared that “at 25 I was an Easley case. The complicity and wrote), they felt to him.” unguided missile of debauchery” and subsequent cover-up attempts of a that Max promotes There is a advised the audience that they should sweetheart em- rape, in the sense deeper under- also “have as much fun as possible” ployment deal that deliberately current to Max, while young. given to the former trying to seduce according to senior It may be hard to fathom why governor’s wife women who are too drunk to make film studies major Andrew Johnson. a university would invite somebody by the school’s good judgments constitutes rape. He said that Max’s popularity is a who promotes such a lifestyle. Statis- top administrators Between 50 and 100 protesters reaction to the radical feminism that tics of college-age alcohol abuse are revealed an elitist lined the sidewalk before the perfor- often receives official support. “With- appalling — according to a Harvard sense of entitle- mance, with signs suggesting that out events like this, there wouldn’t University study, 44 percent of U.S. ment run amok. Max promotes a “culture of rape.” On be any dialogue about manhood on college students participate in binge The new his Web site, Max emphatically denied campus.” drinking in an average two-week school year started JAY that any of his actions constitute rape: He may very well be right. After period. off with another SCHALIN “I have never in my life forced myself decades of feminists’ chipping away The answer is that N.C. State, example of how on any woman in at the traditional like many colleges, has abdicated its academic adminis- any way nor been concept of mascu- role to provide moral guidance and trators universally accused of rape by linity — such as to serve as the arbiter of taste and cul- fail to grasp their proper roles. On anyone….” Universities have men’s natural in- ture. Instead, the school contributed Aug. 25, N.C. State’s Campus Cinema While the abdicated their clinations to take to its students’ coarsening by bringing held a preview showing of the movie protesters prob- the lead and to be Max onto campus (one movie scene “I Hope They Serve Beer in Hell.” ably missed the role of providing protective — mas- featured him suffering diarrhea and Tickets to the performance at the mark in their culinity for college fouling himself in graphic detail). 460-seat Witherspoon Student Center depiction of Max moral guidance males is now Just as N.C. State must now un- quickly sold out. as a rapist, it is not somewhat defined dergo a re-evaluation after the Mary “... Beer in Hell” is the creation hard to see why to students by Tucker Max’s Easley incident exposed a campus cul- primarily of Tucker Max, a Duke Law he galls them. hyperaggressive ture that encouraged corruption, per- School graduate who first started After the movie, “narcissism” (his haps, given the issues raised by this blogging in explicit detail about his he mocked them, saying that one of own term). movie, it also should examine what out-of-control sexual exploits and gen- his new goals in life was to “hook up It also appears that many young its true relationship to students is. It is eral all-around bad behavior in 2002. with a protester … only if she’s sober, women are buying into this new not the school’s job to encourage the He then turned some of the more out- and I’m drunk. Then I’ll accuse her of masculinity as well. There were far pursuit of drunken debauchery — the rageous blog entries into a best-selling rape.” more women in the audience — many school’s role is to limit it and to guide book and now movie. His fans wholeheartedly agreed dressed for attention — than there students past it to maturity. CJ The movie and Max’s personal with his opinion of the protest. Brooks were protesters on the sidewalk. appearance on campus for a question- Hester, a sophomore engineering The adulation shown him makes and-answer session and autograph major, said that the protesters were another criticism by Shannon John- Jay Schalin is a senior writer at the signing drew an outraged reaction “overreacting.” He also said that son, director of the campus Women’s John W. Pope Center for Higher Educa- from the campus’s feminist com- Max’s behavior was not that unusual: Center, carry more weight than the ac- tion Policy (popecenter.org). PAGE 16 OCTOBER 2009 | CAROLINA JOURNAL

Town and County Urban deer hunts Suburban Traffic Improvement Best Bet In 2007, the General Assem- By Sarah Okeson tion is good,” Pleasant said. “In an urban environment, con- bly allowed municipalities to hold Contributor gestion is a byproduct. The most vibrant economic places on a special season for bow hunters CHARLOTTE the planet tend to be very busy and have traffic.” to help control urban deer popula- learing up the Charlotte area’s suburban traffic con- Samuel Staley, the director of urban and land use tions. Few towns have decided to gestion could boost the area’s economy by $22.5 bil- policy for the Reason Foundation, said dense urban areas do so, reports the Raleigh News & lion a year and increase worker productivity by about are more productive despite congestion, not because of it. Observer. C31 percent, according to a study by the Reason Foundation. He said road capacity needs to be expanded and managed Currently, deer are common Removing congestion in other areas, such as Uptown more effectively. in many suburban areas, where and Charlotte Douglas International Airport, would lead to The study said Charlotte needs to spend about $3 bil- they have no predators to fear and smaller gains for the area’s economy and worker productiv- lion to eliminate severe traffic congestion by 2030, less than find gardens as a source of food. ity. An airport free of traffic hassles would lead to a gain a third of what the region plans to spend on transportation But deer pose a hazard to drivers. of $1.5 billion a year for the region and a 2-percent gain in in its current long-range plans. “What urban deer season worker productivity. “It’s not as expensive as a lot of people would think,” does, in addition to taking out that David Hartgen, the emeritus professor of transporta- Staley said. “I think there’s this ideological opposition to ex- 10 to 15 percent of the population, tion studies at the University of North Carolina at Charlotte panding capacity because they don’t want people in cars. is reintroduce a predator, and that who did the study, said transpor- Too often local transportation knowledge alone moves them back tation planners need to look more planners are looking only at their out to areas where they can be le- at commuting by suburban resi- budget and see it as a zero-sum gally hunted,” said Ramon Bell, dents instead of focusing on access game.” president of the N.C. Bowhunters to downtown business districts. The study looked at traffic Association. “Reducing traffic congestion and its impact on regional eco- “Without hunting, every- by 10 percent improves produc- nomic performance in Charlotte thing overgrazes, and then [deer] tivity by over 1 percent,” Hartgen and seven other cities, including come up into town and eat every- said. “One percent may sound Denver, Seattle, and Dallas-Fort thing in sight, including your hos- small, but in a city like Charlotte, Worth. tas and your roses.” it can mean tens of billions of dol- Hartgen looked at how ac- Greg Batts, a biologist with lars in economic gains.” cessible five destinations in each the N.C. Wildlife Resources Com- Hartgen is also an adjunct region were — the central business mission, notes that while there are policy analyst for the John Locke district, a major mall, suburb, uni- legitimate concerns about urban Foundation, which publishes Car- versity, and airport. In the Char- bow hunting, other methods of olina Journal. The Reason Foun- lotte area, those points were Trade controlling deer populations are dation is a libertarian nonprofit and Tryon streets; UNC-Charlotte; not as cost-effective as hunting. based in Los Angeles. the Concord Mills Mall; Fort Mill, In 2008, only 16 of the state’s The study found that, over- S.C.; and Charlotte Douglas Inter- 540 municipalities held an urban all, the largest economic gains national Airport. bow hunting season, which runs came from improving access to the He used computer modeling for about a month after regular suburbs, malls, and universities. to map how much of the area was deer season ends in January. This could increase the number of within a 25-minute drive of these jobs within easy driving distance points with and without conges- and the number of customers busi- tion. The study looked at conges- Buncombe slope regs nesses could attract. tion now and in 2030. Buncombe County has re- Randal O’Toole, a senior fel- “These increases could (in stricted construction on steeper low at the Washington, D.C.-based theory) improve regional perfor- slopes for some time but is look- Cato Institute, said the Reason mance by reducing travel time and ing at fine-tuning its regulations, Foundation study is the first study increasing the jobs available to res- using Jackson County’s ordinance in the United States that’s looked at how productivity could idents, the workers and customers available to employers,” as a model, reports the Asheville grow in various cities if more jobs were accessible. A similar the study said. Citizen-Times. study has been done in France. In the Charlotte area, about 446,000 jobs, about 49 per- Among the changes being “That’s something that hasn’t been done before,” cent of all jobs in the region, were within 25 minutes of Up- considered are requiring geother- O’Toole said. “When cities try to reduce driving by increas- town. In comparison, about 150,000 jobs, or 16.6 percent of mal engineers to design and ap- ing congestion, they’re reducing productivity in that city. the region’s jobs, were within 25 minutes of Fort Mill. prove road and grading plans for That’s really new information.” The study said that transportation planners may be fo- future subdivisions. O’Toole said that the study shows that building ring cusing too much on the central business district. Buncombe also is consider- roads to make the suburbs more accessible would promote “In midsized cities where car use is overwhelmingly ing even larger minimum lot sizes economic growth and that it contradicts some ideas about predominant, the impact of suburban transportation im- for areas with steep slopes and re- the importance of downtowns held by advocates of Smart provements will be particularly effective in spurring region- stricting the slope of roads leading Growth. al economic performance,” Hartgen wrote. “Clearly, the role to ridge-top developments. “Sprawl increases productivity,” O’Toole said. of suburbs, malls, and universities in regional economic The local homebuilders asso- But Todd Litman, founder of the Victoria Transport performance needs to be more fully explored.” ciation prefers local rules to state- Policy Institute in Victoria, B.C., said the claim that there Hartgen looked at traffic congestion with a measure- wide regulation. is a direct connection between economic development and ment called the “Travel Time Index.” Charlotte’s index “It is hard to build in the reducing congestion is outdated. number is 1.31, meaning that driving during the rush hour mountains, but we do support “If this were true, cities with the most highways per takes 31 percent longer than driving at off-peak times. De- regulation,” said K.C. Hart of the capita and the lowest congestion would be most economi- lays caused by congestion are expected to double by 2030. Asheville Home Builders Associa- cally successful,” Litman said. “The results are actually just “Unless there is significant investment in transporta- tion. the opposite: the most congested cities also tend to be most tion infrastructure in Charlotte and in North Carolina, we It may take some time be- economically productive.” are going to have very serious economic development con- fore any changes have any real Danny Pleasant, Charlotte’s transportation director, sequences,” said Brad Wilson, the chief operating officer of Blue Cross Blue Shield of North Carolina and the chairman impact. Any new construction said the recommendations of the study would be expensive of the N.C. 21st Century Transportation Committee. “Com- regulations would apply only to implement and could worsen sprawl and air pollution. “Traditionally, studies like that focus on one dimen- panies aren’t going to want to locate where you have under- to future subdivision plans. CJ sion to demonstrate how congestion is bad and no conges- invested in your infrastructure, including transportation.” CJ OCTOBER 2009 | CAROLINA JOURNAL PAGE 17

Court: A School Board COMMENTARY Let Them Come, Can Indeed Sue a County Then Build it By Michael Lowrey discretion to provide more than the Associate Editor bare minimum needed. Article IX, Sec- ugust is a popular month to policy for high-end hotels. The idea, RALEIGH tion 2(2) of the N.C. Constitution pro- take a vacation. This year it which local governments seem chool finance can be a divisive is- vides that: was also a popular month inclined to go along with, would sue. But rarely is it as divisive as “[The] General Assembly may forA local governments to engage offer government assistance to was the case in Beaufort County assign to units of local government in some economic development developers willing to put up at least Sthree years ago when the local school such responsibility for the financial activity involving vacationing and $20 million for a high-end facility. board sued the county commission for support of the free public schools as it travel: Government-sponsored hotel Possible help would include rebates more money. may deem appropriate. The governing deals made the news in Fayetteville on property taxes, subsidized loans, In an Aug. 28 decision, the N.C. boards of units of local government and Wilmington. In both cases, waived fees, and site improve- Supreme Court held that under the with financial responsibility for pub- citizens could use an extended holi- ments. state constitution lic education may day from this sort of questionable Meantime in Wilmington, the school board use local revenues dealmaking. construction is progressing on a could indeed The North Carolina Courts to add to or sup- Fayetteville is largely a one- new convention center. The project sue the county, plement any pub- industry town, and that industry would be a better deal for the city if though it ordered lic school or post- is the military. And the community a hotel, preferably a ritzy one, were a new trial as to secondary school has not been particularly vibrant in next door. whether the coun- program.” recent years. Cumberland And that’s the ty commission The Su- County’s population is up problem. The city tried for actually was obli- preme Court by only 3.5 percent from some time to attract a big gated to provide agreed that there 2000 to 2007. By com- name, high-end chain but additional fund- was a danger that ing to the schools. a trial court could parison, North Carolina’s came up empty. It settled The Beau- wrongly define population as a whole for a Hotel Indigo, an fort County school board requested “necessary” or “needed” and award grew by 12.7 percent over up-and-coming midline $12,106,304 from the Beaufort County more than the minimum amount the the same period. chain. Then that plan fell Commission in operating funds for the General Assembly had made a county The area, though, apart in September when 2006-07 fiscal year. The commission responsible for funding. is poised for a significant the developer, after six thought the request was excessive and “Accordingly, in order to recon- boost over the next few MICHAEL extensions from the city, appropriated only $9,434,217. After at- cile the statute with Article IX, Section years. As a result of the LOWREY couldn’t submit an accept- tempts at mediation failed, the school 2(2), we accord a restrictive interpreta- most recent round of base able letter of credit. It’s board sued the county, seeking the full tion to the terms ‘necessary’ and ‘need- realignments and closings back to the drawing board amount requested. A jury found that ed,’” wrote Martin. (BRAC), Fort Bragg will for Wilmington. the county should have appropriated The county commission had not gain two major Army commands Even if you’re a fan of direct $10.2 million to the school system, and argued, however, that an improper and thousands of net jobs in 2011. government incentives to busi- Superior Court Judge William C. Grif- definition of “needed” had been used This has caused visions of sugar nesses, some ideas are beyond the fin Jr. ordered the county to approve at trial. Even so, a majority of the jus- plums and other delights to dance pale. Like giving incentives to retail that amount. tices took the unusual step of examin- in the heads of local government stores and hotels. ing whether the proper definition of The county appealed the award, and business leaders. It’s possible The success of a retailer, espe- “needed” had been used. contending it violated the state consti- Fresh Market and the Bonefish Grill cially a large chain store, depends tution. The N.C. Supreme Court opted At trial, Griffin instructed the jury that “needed” means “that which could come to town. And, yes, be largely on local demographics — to hear the case. joined by nicer hotels. population and per capita income. Before the high court, the county is reasonable and useful and proper or AAA rates hotels on a dia- Either you have them, or you don’t. commission argued that the statutory conducive to the end sought.” mond scale ranging from one (low- Incentives won’t change those fac- framework allowing the courts to de- “Rather than conveying a restric- est) to five (highest). Fayetteville tors. termine the amount of school funding tive definition of ‘needed,’ which is has about a dozen three-diamond As a community’s population the county had to provide was uncon- necessary to preserve the discretion- stitutional and that the courts should ary authority of county commissions hotels but nothing rated higher than and income increase, high-end retail have no role in the matter. The Supreme under Article IX, Section 2(2), the in- that. This upsets the local powers stores will inevitably follow. struction conveyed an impermissible, Court, however, was not persuaded that be. The same is true with hotels. expansive definition of this statutory by this argument, as the requirement The Fayetteville Observer noted Either your community has the term,” wrote Martin. that counties provide “a system of free that four- and five-diamond hotels amenities to attract enough big- “Because the instruction was in public schools ”had been spelled out in get that rating by offering more spending visitors to support luxury error, we must remand for a new trial.” great detail by the state. amenities, including “spas, laundry hotels, or it does not. If a hotel chain Justices Robin Hudson and Pa- service, thicker sheets and towels, thinks there’s a viable market, it will “Since the General Assembly has tricia Timmons-Goodson agreed with room service and catering — the step in to serve it. It’s that simple. so exhaustively defined its desired Martin’s analysis of the constitutional kind of service the generals relo- Unfortunately, some local gov- system, the [procedure] does no more issue. But they would not have exam- than invite the courts to adjudicate a ined whether the instructions at trial cating to Fort Bragg from Atlanta ernment and chamber of commerce disputed fact: the annual cost of pro- were proper, as the county commission will expect, according to a BRAC types have difficulty accepting this viding a countywide system of educa- had not challenged them. Regional Task Force report last year reality. They think taxpayers should tion under the policies chosen by the “To step in and set aside a jury that says additional full-service subsidize hotels catering to wealthy legislature and the State Board [of Edu- verdict that has not been challenged hotels and convention space are visitors. That’s an unnecessary side cation],” wrote Justice Mark Martin for is indeed to ‘frustrate the adversarial needed.” trip, especially in a soft economy. CJ the high court. process’ through this decision, ” wrote Generals demand spas? Who Beaufort County also contended Hudson. knew! Armed with that informa- that having courts determine the fund- The case is Beaufort County tion, the local chamber of commerce Michael Lowrey is an associate ing a county must provide for educa- Board of Education v. Beaufort Board spent $50,000 drafting an incentives editor of Carolina Journal. tion effectively eliminates a county’s of Commissioners (106PA08). CJ PAGE 18 OCTOBER 2009 | CAROLINA JOURNAL

Local Innovation Bulletin Board Paper’s Efforts Force Changes A Florida Exodus In Wilmington E-Mail Policies

hile times are tough all “The number of rental homes By Michael Lowrey leaders have attached a high priority over, some areas of the available is greater today than it was Associate Editor on attracting higher-end hotels for a country are suffering more a year ago due to the foreclosure cri- RALEIGH number of years. The announcement Wthan others. Among those is Florida sis,” said Mike Nelson, president of he city of Wilmington is chang- that a number of major Army com- in general, and the Miami area in Rental Home Professionals Inc. ing its e-mail policies in response mands would be relocated to Fort particular, which are now losing Allstate, the country’s sec- to a public records request by the Bragg has only strengthened the desire population. Poor public policy is to ond largest home insurer, reports a WilmingtonT Star-News. A review deter- to attract such a lodging facility. blame, writes Tim Padgett for Time. 27-percent increase in the number mined that many messages were being “We have been aware of that Florida’s population decreased of customers converting their ho- classified as exempt from disclosure need for a long time, and I would an- by 58,000 over the past year. South meowners insurance policies into under the state’s public records law ticipate that our board would be open Florida — Miami-Dade, Broward, landlord policies in the first quarter when in fact they weren’t. to the concept,” said Jeannette Council, and Palm Beach counties — lost of 2009 as compared to the previous City policy had allowed em- chairwoman of the Cumberland Coun- 27,400 residents alone over that peri- year. ployees to clas- ty Board of Com- od. It’s the first time Florida has lost More properties available sify e-mail cor- missioners. population since World War II. translates into lower rents. But find- respondence as The Fay- The reasons people are leaving ing a reliable renter can be a chal- being exempt Cherokee etteville-Cum- South Florida are easy enough to un- lenge. Renting a house also brings from disclosure berland County derstand. Homeowners in Broward with it a range of additional costs. simply by typing Chamber of and Miami-Dade counties are facing Landlord insurance costs about 25 “private” in the to Commerce is 15-percent increases in their proper- percent more than a homeowners subject line. And spending $50,000 ty taxes. That’s a big bite consider- policy. Property management com- many officials on a consultant ing that the median property tax bill panies typically keep between 3 per- made liberal use Currituck to draw up a pro- in the region is already about $3,000 cent and 12 percent of monthly rent. of that classifica- posed incentives and property values have dropped There are also significant tax conse- tion. Eighteen policy. A draft by about one-fourth. quences and additional local regula- top city employees received more than version would require applicants to Hurricane-insurance premi- tions apply. 36,000 “private” e-mails over a one- invest at least $20 million in a facility ums, which already are around year period. offering the appropriate amenities. $5,000 for the typical South Florida In a test to see the accuracy of this “We don’t want to waste any house, will be going up by 10 per- Unintended injury deaths up classification system, the Star-News re- time,” said chamber President Doug cent a year for the next three years. A new study in the American quested the text of 296 randomly se- Peters. “We want this to be in place. The local utility, Florida Power & Journal of Preventive Medicine shows lected “private” e-mails. After review, We have some potential projects in that Light, is asking the state for a 30-per- an increase in unintended injury city officials determined that 259, or area, and we want to take advantage cent rate hike. death rates by 11 percent between 88 percent, in fact qualified as pub- of them.” While Florida doesn’t have an 1999 and 2005. lic records. Among the issues that the Smog and Charlotte roads income tax, the double whammy of Several population subgroups, misclassified e-mails covered were the high property taxes and hurricane however, saw much larger increases controversial annexation of Monkey Federal environmental rules re- insurance premiums can force resi- in mortality rates. Almost all (89 per- Junction, the city’s new convention quire that road building plans comple- dents to pay more toward those ex- cent) of this increase comes from a center, and the police helicopter. ment efforts to reduce air pollution. penses than those in other states pay greater number of deaths from poi- “As a city, we take very serious- This requirement is more of a theo- in state income tax. sonings among those age 15 to 64 ly our responsibility to be open and retical than a practical constraint, says “It’s difficult for the work- and deaths from falls among those accessible to our citizens,” said City The Charlotte Observer, as the provision ing middle class to justify living age 45 and older. Manager Sterling Cheatham. “We have contains numerous loopholes. here,” said Mike Jones, president of The analysis by researchers learned from this experience that we Charlotte’s primary air pollu- the Palm Beach County Economic at the Johns Hopkins Bloomberg need to do a better job and make im- tion problem is smog, ozone at ground Council, to the South Florida Sun- School of Public Health’s Center for provements to our system.” level, which comes from a combination Sentinel. “As much as they may love Injury Research and Policy found Wilmington now will require em- of nitrogen oxide and sunlight. Vehicle the sunshine, as you squeeze them that poisoning deaths for white ployees to cite a reason why an e-mail exhausts account for as much as 70 out, they may find it in their best in- women between 45 and 64 increased is exempt from disclosure under the percent of Charlotte’s nitrogen oxide terests to move.” by 230 percent. For white men in the public records law. It will also periodi- emissions. same age bracket, the rate of poison- cally audit e-mails classified as “pri- The good news is that newer cars and trucks emit far less nitrogen oxide ing mortality increased 137 percent. vate” to ensure city officials are follow- More reluctant landlords than older vehicles do. As a result, air The death rate from falls in- ing the law. Depressed home prices have creased 38 percent for white men quality has improved substantially forced many homeowners into be- and 48 percent for white women Fayetteville hotel incentives? over time. These gains are tempered coming landlords, reports The Wall 65 and older. The mortality rate for by population growth and increases in Street Journal. Whether that’s really a older blacks from falls, however, did Fayetteville is considering offer- miles driven. desirable or sustainable situation for not go up. ing incentives to lure hotels to the city. Federal air quality rules are get- many individuals is questionable. “The large increases in the But not just any hotel would be eligible ting tougher, and Charlotte may not Some people are becoming number of deaths attributable to — only high-end hotels need apply, re- be in compliance in the future. Ma- landlords because they’ve relocated poisoning and falls underscore the ports the Fayetteville Observer. jor road projects require a showing for job-related reasons and simply need for more research on the spe- The AAA auto club ranks hotels that they won’t make the air quality can’t sell their old houses. Others cific circumstances involved,” said on a rating scale from one (lowest) to worse. To make that case, city road are hoping property values recover study co-author Susan P. Baker to five (highest) diamonds. While Fay- planners have argued that major new before they sell and are renting the Science Daily. etteville has about a dozen hotels that projects such as the Garden Parkway, property in the meantime. Either “While we don’t know the rate three diamonds, it has no four- or a toll loop around the south of Gas- way, many homeowners are find- cause behind the recent increase in five-diamond hotels. Hotels with these tonia, will result in fewer traffic jams ing that the rents they are receiving falls mortality, it appears that the higher rankings typically offer greater and fewer miles driven. Proponents don’t cover their mortgages and ex- increase in poisonings is largely due amenities, such as spa services, room of the road, however, are making just penses. to prescription drugs.” CJ service, and thicker sheets. the opposite argument, that it will en- Local business and government courage growth. CJ OCTOBER 2009 | CAROLINA JOURNAL PAGE 19 N.C. Supreme Court Rules Against Gun Prohibition for All Felons

By Michael Lowrey victed felons, including rifles used for of N.C.G.S. § 14-451.1 is an unreason- the prohibition on felons owning guns Associate Editor hunting and handguns kept at home. able regulation, not fairly related to the was both reasonable and related to RALEIGH After consulting with his local sheriff, preservation of public peace and safe- preserving public peace and safety. n 2004, the General Assembly Britt got rid of the guns he owned, in- ty,” wrote Justice Edward Brady for the She also thought the issue was passed legislation prohibiting con- cluding rifles used to hunt on his own high court. not one the courts should address. victed felons from possessing guns land. He then challenged the consti- “In particular, it is unreasonable “Although the majority stands Iunder any circumstances. In doing so, tutionality of the to assert that a up for Mr. Britt and other convicted it took away the longstanding right of 2004 law. The issue nonviolent citizen felons who will now undoubtedly seek felons to hunt and to have handguns in eventually came who has respon- judicial exemption from N.C.G.S. § 14- their homes and businesses. before the state’s The court found sibly, safely, and 415.1, this is a policy matter and deter- In an Aug. 28 ruling, the N.C. Su- highest court. legally owned and mination best left to the executive or preme Court held this new prohibition Specifically it unreasonable used firearms for legislative branches,” she wrote. was “unreasonable” at least as applied at issue is Article 17 years is in real- to the particular circumstances of one I, Section 30 of that a nonviolent ity so dangerous Uncertain impact ex-con. the North Caro- citizen who has that any posses- The Supreme Court ruling grants In 1979, Barney Britt pleaded lina Constitution, sion at all of a fire- gun ownership rights only to Barney guilty to felony charges of possession which provides arm would pose a responsibly owned Britt. Certainly Timmons-Goodson is with intent to sell and deliver Quaalu- that: significant threat correct, thought, that other felons will des. He was sentenced to four months “A well regu- firearms for years to public safety.” now go to court to seek the restoration in prison followed by two years of su- lated militia being Justices Mark of their gun ownership rights. Wheth- pervised probation. Five years after necessary to the should suddenly Martin, Robert Ed- er they will be successful is a different that, his civil rights were restored by security of a free munds, and Paul be considered matter. operation of law. State, the right of Newby joined John Locke Foundation legal pol- the people to keep in Brady’s opin- dangerous for icy analyst and attorney Daren Bakst Limited restriction and bear arms ion. Justice Robin notes that the ruling doesn’t really shall not be in- owning guns. Hudson agreed North Carolina first limited con- establish guidelines for which felons fringed.” in the outcome victed felons’ ability to possess legally might be allowed to, say, have guns In a 1921 rul- without joining in “any handgun or other firearm with a at home. Britt’s situation was highly ing, the N.C. Su- the lead opinion. barrel length of less than 18 inches or favorable, being convicted of a single preme Court held Chief Justice Sarah an overall length of less than 26 inches” nonviolent felony long ago and hav- that the General Assembly can regu- Parker dissented without comment. in 1975 as General Statute § 14-451.1. ing legally owned guns for 17 years. late gun ownership, but that such leg- Justice Patricia Timmons-Good- This restriction, however, applied only At what point — how many years in islation must be “reasonable and not son also disagreed from the majority for five years from release from prison, the past, and for what exact crimes — prohibitive, and must bear a fair rela- holding and penned a written dissent or completion of parole or probation — prohibiting all gun ownership would tion to the preservation of the public explaining her opposition to the major- and only to those convicted of certain be considered unreasonable under the peace and safety.” ity holding. violent felonies. state constitution is unclear. The high court held that the 2004 “Because the majority has craft- In 1995, the General Assembly Bakst expects the General Assem- changes were not reasonable as ap- ed an individualized exception for a extended this prohibition on handgun bly to re-examine the issue and draw plied to Britt. sympathetic plaintiff, thereby placing possession to all felons, regardless of up conditions under which certain fel- “Based on the facts of plaintiff’s North Carolina in the unique position when they completed their sentence. ons may have limited gun ownership crime, his long post-conviction history of being the first jurisdiction, either Like the 1975 law, it contained a sig- rights. of respect for the law, the absence of federal or state, to hold that the in- nificant exception: felons still could “If we don’t want a barrage on any evidence of violence by plaintiff, herent police power of the State must possess handguns in their homes or the courts, the legislature needs to take and the lack of any exception or pos- yield to a convicted felon’s right to businesses. action,” he says. sible relief from the statute’s operation, own a firearm, I respectfully dissent.” Then in 2004, the legislature The case is Britt v. State (488A07). CJ banned all gun ownership by all con- as applied to plaintiff, the 2004 version Timmons-Goodson found that Help us keep our presses rolling Publishing a newspaper is an ex- Visit our Triangle regional page pensive proposition. Just ask the many http://triangle.johnlocke.org daily newspapers that are having trouble making ends meet these days. It takes a large team of editors, re- The John Locke Foundation 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 Triangle 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 readers each month puts a sizeable dent in the John Locke Foundation’s budget. in the Research Triangle area. That’s why we’re asking you to help defray those costs with a donation. Just It also features the blog Right send a check to: Carolina Journal Fund, Angles, featuring commentary John Locke Foundation, 200 W. Morgan on issues confronting Triangle St., Suite 200, Raleigh, NC 27601. 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 OCTOBER 2009 | CAROLINA JOURNAL

From the Liberty Library Book review

• The average American pro- fessional wakes up in the morning, Second Reagan Volume an Appreciation of his Vision goes to work, comes home, eats din- ner, and then goes to sleep, unaware • Steven F. Hayward, The Age of Rea- believe them? that he or she has likely committed gan: The Conservative Counterrevolution, The Soviets were on track to several federal crimes that day. Why? 1980-1989, New York: Crown Forum, overtake the U.S. in strategic nuclear The answer lies in the very nature 2009, 639 pages, $35.00 capability by the end of Reagan’s first of modern federal criminal laws, term, and the Soviets tried to estab- which have exploded in number but By Rick Henderson lish a massive, permanent military Managing Editor also have become impossibly broad presence in the Western Hemisphere. and vague. RALEIGH The Soviets had planned to finance a In Three Felonies a Day, Har- new president with celebrity 600,000-man force in Central America appeal takes office as America under Sandinista command by the ear- vey Silverglate reveals how federal faces its worst economic crisis ly 1990s. criminal laws have become danger- Ain decades. He’s greeted by a nation Reagan directly tackled both ously disconnected from the English both sharply divided on economic and challenges, even though, as Hayward common-law tradition and how foreign policy and lacking confidence writes, “the central story of the en- prosecutors can pin arguable federal in the direction of the country. tire Reagan presidency might be said crimes on any one of us, even for the This isn’t 2009. It was 1981. But to be how he managed to keep to his most seemingly innocuous behavior. the publication of Steven Hayward’s purposes and principles in the face of The dangers spelled out by delightful The Age of Reagan: The Con- an unremitting onslaught from every Silverglate do not apply solely to servative Counterrevolution, 1980-1989 is side — often including from his own “white-collar criminals,” state and at an ideal time for readers to compare political party, White House staff, and local politicians, and professionals. the challenges facing Ronald Reagan his family.” No social class or profession is safe and Barack Obama during their early Reagan II is an appreciation of the from this troubling form of social days in office — and how each incom- 40th president’s vision written by an control by the executive branch. ing chief executive confronted them. unapologetic conservative. That said, Visit www.encounterbooks.com to Two figures who hoped to be transfor- the American people than he did from Hayward does not gloss over Reagan’s learn more. mative leaders approached somewhat a media and a political establishment shortcomings. Indeed, he highlights similar circumstances in very different that to this day are indifferent if not several serious mistakes that prevent- ways. hostile to his vision of limited govern- ed the president from effecting endur- • Appeals to “human dignity” For his part, Obama seems to be ment and individual freedom. ing reforms in government. are at the core of many of the most channeling the president Reagan re- The Conservative Counterrevolution Three big ones: First, Reagan contentious social and political is- placed, Jimmy Carter. Obama has dra- (I’ll call it Reagan II) is the second vol- stumbled initially by filling several sues of our time. But these appeals matically expanded government pow- ume of political biography from Hay- key executive-branch positions badly suggest different and at times even er at home while vacillating against ward, a scholar at the American Enter- (think Alexander Haig as secretary of contradictory ways of understand- foreign rivals. (As I write this, Obama prise Institute and the Pacific Research state, David Stockman as budget direc- ing the term. has just announced that the United Institute. In The Age of Reagan: The Fall tor, and Richard Darman, in many un- Is dignity something we all States will cede to objections from Rus- of the Old Liberal Order, 1964-1980 (Rea- fortunate roles). share equally and therefore the sia and abandon a plan to place a mis- gan I), published in 2001, the man who A second error was Reagan’s reason we all ought to be treated sile-defense site in Poland.) would become our 40th president is at 1984 re-election campaign. The theme as equals? Or is dignity what dis- Reagan, as we all know, did times relegated to a supporting role; “It’s morning in America again” was things differently. The main lesson tinguishes some greater and more Hayward focuses as much on the polit- free of any policy substance. With the from The Conservative Counterrevolution admirable human beings from the ical and social upheaval that took place economy booming and the Democrats is that the 40th president truly believed rest? What notion of human dignity from the time Reagan entered the pub- nominating unabashed New Dealer that the fight against Big Government lic stage as a political figure until his Walter Mondale, had Reagan gone should inform our private judg- at home and Soviet Communism ments and our public life? election in 1980. partisan, the campaign could have re- abroad were two battles in the same In Reagan II, however, the Gip- aligned American politics toward con- In Neither Beast Nor God, Gilbert campaign. For the American experi- Meilaender elaborates the philo- per takes top billing. servative governance. He didn’t, and ment in self-government to succeed, it Both volumes are political histo- sophical, social, theological, and once those “Reagan Democrats” were was necessary to honor the Founders ries. There’s no armchair psychoanaly- political implications of the ques- safely re-elected, they had no trouble by both reversing domestic policies fed sis or Bob Woodward-style role-play- tion of dignity, and suggests a path undermining Reagan’s policy agenda. by high taxes, inflation, and stifling bu- ing here. If you want to learn about Even a Republican Congress, through the thicket. More at www. reaucracies, and humbling the Soviet Nancy’s astrology, go somewhere else. however, might not have saved Rea- encounterbooks.com. empire. Reagan II, in particular, leans gan from another huge blunder: Iran- Linking the Founders to vic- heavily on the man’s own words, rely- Contra. Reagan never made his Ni- tory in the Cold War may sound like ing on texts from speeches, transcripts, caragua policy clear. Did he want the • Most people think of the Fed a stretch, especially to those conserva- and extensive excerpts from Reagan’s Contras to put pressure on the Sandini- as an indispensable institution with- tives and libertarians who are skittish detailed diaries and correspondence. sta government without overthrowing out which the country’s economy about U.S. interventions abroad. But in There’s also a wealth of information it, or did the U.S. expect the rebels to could not function properly. But Reagan’s view, Hayward writes, “un- from contemporaneous journalism supplant the Soviet-backed regime? in End the Fed, Ron Paul draws on limited government is inimical to lib- and analysis from other presidential Finally, Oliver North was con- American history, economics, and erty, certainly in its vicious forms such historians. vinced that a moderate government fascinating stories from his own as Communism or socialism, but also In domestic affairs, Reagan un- could soon take over in Iran and that long political life to argue that the in its supposedly benign forms, such derstood the essential lesson of sup- the U.S. might have influence with the Fed is both corrupt and unconstitu- as bureaucracy.” ply-side economics. Cutting marginal new rulers. North’s amateurism and tional. It is inflating currency today So long as the Soviets remained tax rates allowed individuals to enjoy Reagan’s lack of clarity ensured that a at nearly a Weimar or Zimbabwe committed to defeating the West — more of the fruits of their labors. Free foreign policy gamble came up snake level, a practice that threatens to and had the means of doing so — the people create more abundance than eyes. put us into an inflationary depres- Founders would have expected a na- government planners can. In the end, Reagan posed a di- sion in which $100 bills would be tion dedicated to liberty to fight back. In foreign policy, Reagan took lemma. One person can make a dif- worthless. Learn more at www. In retrospect, Hayward argues, the Soviets at their word. When Soviet military planners said at Communist ference — and did he ever — but one hachettebookgroup.com. CJ Reagan succeeded on both foreign and domestic fronts. But he got more Party conferences that their eventual person alone cannot bring about last- credit for his accomplishments from goal was global domination, why not ing reforms. CJ OCTOBER 2009 | CAROLINA JOURNAL PAGE 21 Erosion of Tenth Amendment Robs States of Individual Strengths s I learned when recently government be sovereign, and to what prevent states from having public ed- “It’s just the way things are done delivering a lecture, the 10th extent shall a state be sovereign? ucation or creating welfare systems — here” is good enough for me; every- Amendment is getting a lot Historically, the 10th Amend- to name two examples. In fact, North one doesn’t have to think like me. Aof attention. Tenthers — those be- ment has been used to preserve Carolina had public schools during In a truly federal government, lieving the federal government’s regional particularism and resist the antebellum era. Although it has Massachusetts could allow same-sex authority should be limited strictly centralization. During the 1850s, some problems, TennCare, a government- marriages and bar the Ten Command- to the enumer- Northerners used the 10th Amend- operated medical assistance program, ments from public displays. In a truly ated powers in the ment as a justification to ignore the has existed in the Volunteer State since federal government, Alabama could Constitution — are Fugitive Slave Law, and after Lincoln 1994. Again, the argument is whether display the Ten Commandments in passionate. Their was elected, some Southerners used it such programs should be created or state courtrooms and outlaw same-sex opponents are as an excuse to preserve slavery. Dur- heavily controlled and directed by the marriages. Until State of Missouri v. equally passionate. ing the Civil War, some northern gov- national government. Holland (1920), migratory bird hunt- One person asked ernors invoked it to resist Lincoln’s Invoking 10th Amendment ing was regulated at the state level, me if Tenthers’ centralizing tendencies, while some concerns about sovereignty is nothing and in a truly federal government, it argument had Confederate governors, including new. In 1788, North Carolina balked would be so today. In a truly federal any constitutional North Carolina’s Zeb Vance and Geor- over ratifying the Constitution and government, states would make laws legitimacy. My TROY gia’s Joe Brown, used states’ rights relinquishing more of its power to a concerning abortion, health care, and answer was, well, arguments to resist Jefferson Davis’ centralized government. It remained many other issues. yes. KICKLER policies, including conscription. out of the Union for a year and, in And in a truly federal govern- The 10th A lot of contemporary liberals many ways, acted as a quasi-nation. ment, these states would continue to Amendment simply states: “The pow- don’t have much sympathy for the In 1818, the Tar Heel State levied a tax trade with each other and join forces ers not delegated to the United States 10th Amendment, however. “This on out-of-state banks doing business in times of national emergency. As by the Constitution, nor prohibited argument has been used to stop prog- in North Carolina and charged each government becomes more central- by it to the States, are reserved to the ress, and to not keep hope alive,” said branch $5,000. The state snubbed its ized, and states relinquish authority, States respectively, or to the people.” commentator Alan Colmes. “If the nose at a national bank: The Bank of the powerful redouble their efforts Since 1789, the major political Tenthers had their way, there would the United States. to make others act (and believe) like question has been concerning the be no Medicare, no Social Security, In a truly federal government, them. CJ paradox of dual sovereignty: To what even no public education. How about regional particularism lives. Some- extent shall we be national, and to Every Child Left Behind?” times it can be ugly and immoral. Dr. Troy Kickler is director of the what extent shall we be federal? To What a simplification! Other times it showcases genuine North Carolina History Project (www. what extent shall the United States The 10th Amendment does not progress. Sometimes the argument 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.

The Meck Deck is the JLF’s blog in Charlotte. Jeff Taylor blogs on this site and has made it a must-read for anyone interested in issues in the Queen City: http://charlotte.johnlocke.org/blog/ Each day, your Key Account searches a comprehensive database of JLF reports, briefing papers, news articles, press releases, and events notices to display timely information about the issues of your choice. It’s an

Squall Lines is the JLF’s blog in Wilmington. A group of JLF staffers and coastal friends keep folks on excellent tool for those drafting legislation, researching the coast updated on issues facing that region of the state: http://wilmington.johnlocke.org/blog/ policy issues, preparing news stories, planning political or lobbying campaigns, or seeking information with which to be an informed voter and citizen.

Piedmont Publius is the JLF’s blog in the Triad. Greensboro blogger and writer Sam A. Hieb mans the controls to keeps citizens updated on issues in the Triad: http://triad.johnlocke.org/blog/ Visit www.JohnLocke.org and create your personalized Key Account today!

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

The John Locke Foundation, 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 22 OCTOBER 2009 | CAROLINA JOURNAL

Short Takes on Culture Book review A Splendid History Secular Sabotage a Must-Read

•A Splendid Exchange: How Trade signs suitable for a particular client, • Bill Donohue, Secular Sabotage: How sociation is part of this group of sabo- Shaped the World event, or genre — are brainstormed Liberals Are Destroying Religion and Cul- teurs. The public displays of Act-UP By William J. Bernstein and crafted on a tight time schedule ture in America, New York: Faith Works, and other groups are unbelievable, and Atlantic Monthly Press by aspiring designers and show- 2009, 258 pages, $21.99. many specifically targeted St. Patrick’s cased on the runway by aspiring Cathedral while men, women, and f you’re looking for an informative, models, where they’re judged by a By Melissa Mitchell children were worshiping. entertaining history of world trade panel of fashion experts. Contributor By the time I got to the chapter on — and I can’t imagine anyone who As it goes in the fashion RALEIGH artistic saboteurs, I did not think that Iwouldn’t be — then William Bernstein world, one minute you’re “in” fter seeing a TV interview with I could be more shocked than I had has written just the book you need, A and the next minute you’re “out,” Bill Donohue, president of the been, but I was wrong. It was not just Splendid Exchange: How Trade Shaped and the losing designer is “out.” Catholic League, I knew that the content of this so-called art; it was the World. Contestants are eliminated week IA had to read his latest book, Secular the fact that much of it is paid for with Throughout history, Bernstein by week until one designer is left Sabotage: How Liberals Are Destroying tax dollars. I was left wondering when writes, human beings have journeyed standing with a considerable cash Religion and Culture in America. Dur- and how human and animal waste far and braved much for the sake of prize and a spread in a noted fash- ing the interview, Donohue stated that became an accepted art form. Dono- the new, the rare, and the luxurious. ion magazine. he “names names” in his book about hue asks, “Why is it when Christian Until relatively recently, few of the An interesting side note: the what he calls the anti-God movement groups have concerns over the content necessities of life were the subject of current season is premiering on in America. And he does! of a play or book or movie it’s called long-distance trade. The transport Lifetime after several years on the Most Americans are aware of the censorship, but when gays or feminists cost and spoilage rate never allowed rival NBC cable network Bravo. ACLU’s quest to or just about any it. NBC refused to let the series go, purge references other group The goods that inspired Meso- and a lengthy court fight ensued to God from pub- speak up they are potamians, Phoenicians, Indians, before the networks reached a lic discourse, but exercising free Greeks, Arabs, and other travelers to settlement. Donohue lists nu- speech?” develop the world’s main trade routes — SAM HIEB merous other or- Even though were small, dense, and highly valued ganizations and the book contains — such as incense, precious metals, individuals that a lot of disturbing jewels, and spices. Later, ambitious •”Gran Torino” are a part of the an- information, there seafarers developed the technology Warner Bros. ti-God movement. are also some hu- to trade other goods in bulk along the Produced by Clint Eastwood He also considers morous moments. main waterways of world commerce. many artists, play- He relates a story Bernstein is at his strongest “Gran Torino” is a wonder- wrights, the Holly- about an exhibit when describing these developments ful faith and family film. Notice I wood elite, and the at the Brooklyn with evocative images, informative didn’t say that it is “family-friend- Democratic Party Museum of Art maps, and revealing statistics. He’s ly.” The R rating is well-deserved as saboteurs. depicting the at his worst when seeking to draw for strong profane and racist lan- As he iden- Madonna using out larger economic and political guage and gang violence. tifies these anti- pornographic im- lessons. He has a tendency to fall for Eastwood plays Walt Kow- God groups and ages. The Catho- conspiracy theories about the likes of alski, a retired Ford autoworker individuals, he lic League issued the Fourth Crusade and the Boston who won the Silver Star for bravery uses the harsher vomit bags to the Tea Party. in the Korean War. He lives in a term “nihilists” to first 500 visitors If you set aside the (very) oc- deteriorating Detroit neighborhood describe their ac- when the muse- casional lapses, A Splendid Exchange that is transitioning from all white tions. “They hate um warned “that remains a fascinating account of the to almost all Asian and black. His Western civiliza- seeing the exhibit origins of world commerce and the racism flares as he confronts the tion and its Judeo-Christian ethos,” could make someone sick.” When case for free trade. My copy is dog- new ethnic groups on his block and states Donohue. He also notes, “For all People for the American Way’s vice eared with passages I’ll be returning when a Hmong extended family of the talk about how multicultural our president, Barbara Handman, who is to again and again. And all for just moves in next door. Walt is un- society is, the United States is still only Jewish, said Andres Serrano’s “Piss $17 in paperback. What a splendid aware that the Hmong fought with 0.4 percent Hindu, 0.6 percent Mus- Christ” was “glorious,” Donohue asks exchange! U.S. forces in Vietnam and had to lim, 1.7 percent Jewish: approximately her if she would be offended if some- — JOHN HOOD flee Communist persecution after eight in 10 Americans are Christians. It one put a Star of David in a bowl of the war. stands to reason, then, that the radical feces. She expressed horror at the mere The movie opens at the funer- secularists must sabotage Catholicism suggestion,” says Donohue. • “Project Runway” al of his wife, where open conflict and Protestantism.” Donohue chroni- Yes, much of the book chronicles Lifetime Television with his two sons and their families cles how these nihilists are determined the attacks on Catholicism, but Evan- Created by Eli Holzman erupts. Before she dies, Walt’s wife to “gut core beliefs and practices” in gelical Christians and Orthodox Jews makes a young priest promise her our country. have joined the Catholic League to fight I unashamedly admit that I’m that he will look after her husband I was so shocked and disgusted these radical secularists. Throughout hooked on “Project Runway,” even and get him to go to confession. by what I read in the chapters titled the book Donohue provides statistics though the Lifetime reality show — This leads to a very persistent “Sexual Sabotage,” “Artistic Sabo- about religion in America, pointing out hosted by the beautiful Heidi Klum priest going up against an equally tage,” and “Sabotaged by Hollywood,” that most of the mainline liberal Prot- — features a subject that I know pigheaded Walt, who rejects every that I often had to put the book down estant denominations are losing mem- practically nothing about: fashion. attempt to bring him to faith. and walk away. bers, while the more conservative de- After just a couple of episodes One Bible verse sums up the Donohue relates how these nominations like the Southern Baptists — albeit by osmosis as my wife movie, but to quote it would ruin groups seek to sabotage Judeo-Chris- are gaining members, which he sees as tuned in — I couldn’t help but get the full impact of the final scenes. I tian sexuality. After expressing his a positive for religion in America. sucked in by the colorful person- guarantee you that that verse will moral outrage over priests who had This is not a coffee-table book, alities and challenges the show immediately come to mind at the molested children, I was shocked over nor is it a book for teens, but it is a presents every week. climax of the movie. Donohue’s revelation of the “anything must-read for all Americans who value The challenges — clothing de- — MICHAEL SANERA CJ goes” attitude of these secularists. The our Judeo-Christian heritage and mor- North American Man-Boy Love As- al values. CJ OCTOBER 2009 | CAROLINA JOURNAL PAGE 23 Building of Panama Canal an Engineering and Management Feat • Julie Greene, The Canal Builders: the canal was both government-fund- Making America’s Empire at the Panama ed and government-built, carrying a Canal, New York: The Penguin Press, secondary goal of creating a stable and 2009, 475 pages. $30 lasting society in the newly acquired territory. Canal employees were gov- By Hal Young ernment employees, overseen by the Contributor Isthmusian Canal Commission, which RALEIGH ruled the tropical project from the tem- he Panama Canal will celebrate perate climate of Washington, D.C. its centennial five years from The real power in the Zone was now, and it remains an engi- not the ICC but Col. Goethals. The neeringT wonder. Projects this huge third and longest-tenured chief engi- come once a generation — the Trans- neer, serving seven of the project’s 10 continental Railroad and the Inter- years (1904-14) and then as first gover- state Highway System come to mind. nor of the Canal Zone, Goethals’ rule Yet the chief engineer most associated was described as “omnipotent … at with the project, Col. George W. Goeth- best, paternalistic.” With Washington’s als, said there was nothing remarkable backing, Goethals determined to build about the engineering or medical chal- a civilized society in the Canal Zone, lenges Americans bested in Panama. where the chief engineer exercised a “Goethals would have agreed “benevolent despotism” over a popu- that the canal was a major engineering lation of as many as 55,000 workers achievement, but he took even more and many family members, dozens of pride in his ability to govern the vast existing and newly constructed towns and unwieldy population of employ- and cities — and a very large construc- ees and family members,” writes Julie tion project, as well. Greene, in The Canal Builders: Making Interestingly, while Goethals’ America’s Empire at the Panama Canal. shadow fell everywhere, this is not a “We have long perceived the canal as book about him. Rather, Greene focus- involving conquest over nature, and es most of her attention on the workers there’s some truth in that. But it also in- and their families, giving only enough volved conquest over the tens of thou- space to the project and administration sands of men and women in the Canal to provide context. Readers will need Zone and in the Republic of Panama.” to look elsewhere for the stories of the Greene is a University of Mary- surveys, design, equipment, and op- land professor specializing in labor eration of the canal. history. In The Canal Builders, Greene Despite what some boosters tells how America stepped into the claimed, the Americans did not cre- global spotlight at the turn of the 20th ate a little piece of home in the tropics. century and turned the canal into an There was always a foreign-service as- experiment in building a civil society pect to the time in Panama; the chap- a popular vote and with the possibil- against the strictures they felt at home. as well as a long ditch. It is the story of ters on the lives of women is enter- ity of banishment, meaning return by Islanders who found housing and din- a truly unusual exercise in community taining and instructive on this point. the next available boat, a regular threat ing hall regulations oppressive simply life, something between a military in- Goethals’ autocratic rule — he gladly for agitators and malcontents. It is a melted into the jungles and built huts, stallation, a construction camp, and a accepted the epithet — meant this credit to Goethals’ wide reputation in walking back to work each morning. colony. American outpost was governed in a the Zone as a man of integrity and fair- Although obviously interested in Unlike similarly massive projects, quite un-American fashion, without mindedness that such despotic leader- giving a “people’s view” of the great ship did not encourage open revolt. undertaking, Professor Greene is fair In some ways, the culture of the in her handling of the interests of man- ooks authored By staFFers Zone did reflect and sometimes magni- agement and the government. In one B JLF fied the culture of American society at example, she refutes allegations that the time. There were the same conflicts the project imported hundreds of Mar- Selling the Dream of race and gender that the U.S. would tiniquan women as prostitutes. Com- not begin to sort out for decades. U.S. mon-law relationships were widely citizenship opened doors that were accepted in the islands, she says, but Why Advertising is Good Business shut hard against non-Americans of Americans who encountered them any color. The payroll system, though, sometimes refused to acknowledge introduced a new rift, as certain em- them as marriages. Only a handful of ployees (generally but not exclusively women were found who weren’t there white, male, and American) were paid for work or as part of a monogamous in gold, while all others drew silver household. She also shows that pro- (and usually at lower rates). Payroll gressive reformers touring the villages designation translated into housing still praised segregated facilities as a By John Hood preference, access to recreational facili- most desirable feature. Obviously, so- President of the ties, better transportation, and other cial reform would come only in stages. John Locke Foundation benefits — a sort of Jim Crow system The Canal Builders closes with labeled “Gold” and “Silver.” an interesting question. Given the “[Selling the Dream] provides a The cosmopolitan mix of na- amount of immigrant labor today, the fascinating look into the world tionalities also brought an interesting frequency that jobs are outsourced of advertising and beyond ... blend of philosophies to work. Many to cheaper workers abroad, and the Highly recommended.” Spanish laborers arrived as anarchists, strong feelings expressed about both, Choice and their constant agitation for labor are we really, 100 years later, any more April 2006 unions made them much less produc- “enlightened” in our attitudes about tive than expected. Women and blacks, race, nationality, gender, and class? In www.praeger.com distant from America’s boundaries, some ways, Greene suggests, we prob- found opportunities to push harder ably aren’t. CJ PAGE 24 OCTOBER 2009 | CAROLINA JOURNAL

COMMENTARY An Activist’s Calling ricia Boyd had to hit rock emerging leaders. bottom before she realized After she left rehab, Boyd that political activism was joined a FreedomWorks’ bus tour oneT of her callings in life. to Washington, D.C., to rally in For years the McDowell support of the Bush administra- County native toured with a folk tion’s tax cuts. She described the music band from Asheville, using event as “life-changing.” her vocal talent in bars and restau- Since then, she has participat- rants to make a living. ed in grass-roots efforts to scrap the But similar to many others in tax code, cut pork-barrel spending, this rural area of North Carolina, and enact tort reform. she spent much of her spare cash Effecting political change isn’t on drugs, feeding an addiction that the only aim of Boyd’s life, though. consumed her life. She says her past experience as a It wasn’t until 2001, when drug addict has given her a unique EDITORIAL Boyd entered rehab, that she began perspective for helping others, a piecing her life back desire born from her faith together — and realized in God. Some Changes the opportunities and “It’s a calling that I blessings of freedom in feel goes back to my love the United States. for Christ,” she said. “As You Can Believe In Seated at a kitchen a Christian, I feel that table in her family’s it’s my duty to have a y now we hope you have Foundation, newsmaker interviews, ranch-style home in heart for others. I don’t noticed some exciting changes appearances by CJ and JLF staff on Nebo, a small town nes- look at people and judge at CarolinaJournal.com. In late other media outlets, and other events tled in the foothills of the them by how they dress BSeptember we relaunched the Web of interest to our readers and support- DAVID N. site, adding new features and expand- ers. We also plan to produce news- North Carolina moun- or their circumstances, BASS ing some old favorites. It’s part of our magazine-style video essays based on tains, the 39-year-old is because you have to re- plans to make Carolina Journal a more stories from Carolina Journal. You’ll eager to share the story of ally be in someone else’s dynamic, timely, and hard-hitting see them here first. her transformation. shoes to understand.” multimedia source — and an even • CJ Ticker. Consider this a one- Her background is a color- Two of her dreams are to stronger complement to our print edi- stop headline service and daybook ful one. She dropped out of high open a soup kitchen in Nebo and tion. on North Carolina politics and policy. school after finishing the 10th plant a garden at her church to pro- Here are some highlights: Here you’ll find links to news sto- grade to help care for her dying vide free food for housing project • More CJ Exclusives: Our staff ries, commentary pieces, and policy father. Over the years, she worked residents. writers and freelancers cover as many reports, along with notices of public in two family businesses — rock The government has a role of the suspicious dealings in North meetings and other events. You’ll crushing and fruit selling — and to play in helping the poor and Carolina government as we can. But want to check the ticker regularly. picked up jobs on the side at res- disabled, she said, but the private there’s only so much you can pub- For your entertainment, we’re taurants, nursing homes, and even sector should be the driving force. lish in a 28-page monthly tabloid. So also adding editorial cartoons from we’re taking a bigger whack at waste, some of the nation’s wittiest and most the circus. “We need programs, but we corruption, and taxpayer abuse by perceptive visual commentators. Her main career, entertain- also don’t need to feel like we’re posting three exclusives from CJ at a The information that appeared ment, led her down a path that she owned by the government,” she time, rather than one — and updating on CJ’s former home page is still there called “foolish and irresponsible,” said. the site several times a day. — including John Hood’s Daily Jour- but one that laid the groundwork Her immediate goals include The new design gives us the nals, links to the John Locke Founda- for her future life mission. organizing more tea party rallies ability to highlight more of our tion’s regional blogs, and our collec- After checking herself into against bailouts and deficit spend- original reporting and investigative tion of headlines from news sources Hope Valley rehab center near Pilot ing, and getting young people journalism. And to produce more of across North Carolina. Mountain for her drug addiction, involved by teaching them about it. We’ll also be able to update stories You also can use the dropdown she began to realize the value of the issues. as circumstances change, and when menus to find other resources that being an American. She continues to work, now developments move faster than our were once on the home page, includ- “I got in touch with who I more than ever. Although opti- print schedule allows. ing research from the John Locke was as a person,” she said. mistic about the future, she still We’ve also placed a link to our Foundation, news and opinion Web Exclusives Series on the main page, sites, blogs from JLF and sister orga- That led her to join Freedom- sees storm clouds on the political so you can track all our reporting on nizations, and additional information Works, a limited-government horizon. the scandals involving former Gov. about CJ-sponsored events. advocacy organization that stresses “I’m a little scared for my Mike Easley, former House Speaker CJ Publisher Jon Ham, Managing grass-roots action. It was the start country right now. I’m a little wor- Jim Black, legislative slush funds, and Editor Rick Henderson, and Associ- of a volunteer career that would ried,” she said. “We’re like sheep other continuing issues. ate Editors Mitch Kokai and Michael lead her, several years later, to be- who are going to follow the first • CarolinaJournal.tv. We Lowrey will serve as traffic cops for come one of FreedomWorks’ 2009 shepherd that comes along.” CJ launched this new Web channel earlier the new CJ Online. As always, we activists of the year and member this year. But now you will be able appreciate your feedback on how the of the E.A. Morris Fellowship, a David N. Bass is associate editor to click directly from our home page site is working, and how we might North Carolina-based program for of Carolina Journal. to CJTV. Go here to view videos of improve it to serve you better. events sponsored by the John Locke Take us for a spin. CJ OCTOBER 2009 | CAROLINA JOURNAL PAGE 25

EDITORIALS COMMENTARY The Trials of R.C. Soles Outdated Assumptions Many unanswered questions remain About Our State here are many unanswered ques- media furor as having been caused by all me a nerd (I’ve heard couraging some entrepreneurs from tions about the R.C. Soles saga. Yankees who just don’t understand the worse), but I spend lots of starting or expanding businesses Unfortunately for Soles, the close-knit nature of small-town life in time looking at economic, here. DemocratT who has represented Tabor coastal Carolina. fiscal,C and social statistics. For It’s not simply the average tax City in the state Senate since 1977 (and Anyone who grew up in North North Carolina, the latest data don’t burden that matters, though North was first elected to the state House in Carolina, particularly the rural areas, paint a pretty picture. Carolina’s tax burden is now slight- 1968), it’s likely that none of the pos- should see through these ridiculous The state’s jobless rate of 11 er higher than the national average sible answers to those questions will excuses. Most Carolina small towns do percent is one of the highest in when measured correctly (as a share help him. not feature this kind of political and le- the country. The problem is far of personal income). The structure Soles is reportedly under investi- gal freak show. Most criminal-defense more severe in communities such of the tax code matters more. By gation by the State Bureau of Investiga- attorneys do not become piggy banks as Burlington (13 percent), Rocky levying relatively higher marginal tion regarding two matters: 1) alleged for the punks they represent, and few Mount-Wilson (14 per- tax rates on personal and molestation of teenagers and any relat- would long tolerate being chronically cent), Hickory-Morganton corporate income, North ed crimes, and 2) the shooting incident extorted by them. Most lawmakers several weeks ago involving Soles and steer clear of such controversies, rather (15 percent), Lenoir (16 Carolina erects barriers former client Kyle Blackburn. than repeatedly creating more of them. percent), and Laurinburg to economic growth that More generally, news reports That’s not to say that the most (17 percent). aren’t present in faster- going back several months describe a extreme or salacious allegations about Unfortunately, North growing Southern states. troubled, expensive, and sometimes Soles must be true. However, it is still Carolina isn’t just experi- In choosing its violent set of relationships between the possible to conclude that R.C. Soles has encing a painful moment higher-tax, higher-spend- senator and a number of teenage boys exercised extremely poor judgment in an otherwise progres- ing fiscal philosophy, and young men — judgment that sive time. For longer than North Carolina’s political in and around Ta- goes beyond the much of the state’s politi- JOHN class embraced an alterna- bor City. Most if strictly personal: cal and business leader- tive model for economic not all are former If R.C. Soles is • If R.C. ship would care to admit, HOOD development based on legal clients of his Soles has molested North Carolina has lagged the notion that spending — meaning that the most gullible teens who are also the rest of the Southeast and often more money on education, par- most if not all have confirmed his legal clients, he the rest of the country on a variety ticularly higher education, would criminal records is guilty of serious of key indicators. pay off in higher incomes and job and drug addic- bachelor ever, criminal and pro- Since 2000, for example, North creation. tions. fessional miscon- Carolina’s per-capita income has Empirically, this notion is A c c o r d i n g how can he duct. risen 27 percent, compared to 49 false. After a promising start in the to multiple ac- then be • If Soles is percent for the Southeast and 33 early 1990s, North Carolina’s edu- counts, Soles has innocent of that percent for the nation as a whole. cational progress essentially ground provided sizable charge but has North Carolina’s population and to a halt by the end of the decade. gifts, sometimes of considered engaged in sexual employment grew faster than the As for higher education, it soaks up many thousands relationships with responsible national average, it is true. But a significantly larger share of state of dollars, to these adult clients, he youths. Over the enough to make still may be guilty we added significantly fewer jobs spending in North Carolina than in years, a pattern of serious profes- from 2000 to 2007 than most of our other states but we don’t produce a has emerged. The good decisions sional misconduct. regional competitors did. significantly higher share of college youths approach as a legislator? • If Soles has This is not what most North graduates. Soles, sometimes never had such Carolina leaders are used to hearing Through massive subsidies, privately but of- relationships with — and is certainly not what they are state government has engineered ten publicly, and clients but is a used to telling the public. a transfer of income from aver- “request” money closeted gay man As a result, North Carolin- age taxpayers to affluent faculty, or other assistance. If he is not im- who fears the personal and political ians have been surprised by the administrators, and graduating mediately forthcoming, the argument consequences of exposure, then you sudden, sharp downturn in the professionals — and from both rural turns heated. Sometimes it escalates to can feel sorry for him while also rec- state’s economy over the past year. and urban communities to college the point where a teen or young man ognizing that his decision to give in to I think that’s a major reason why, in towns. But operating this redistri- threatens to embarrass or endanger extortion has facilitated and contribut- a recent Civitas Institute poll, only butionist system hoping to engineer Soles by going public with explosive ed to the delinquency of many minors, 30 percent of North Carolina voters a real gain in the productivity of the allegations, apparently of sexual mis- wasted countless hours of tax-funded approved of Gov. Beverly Perdue’s state’s work force, and thus in ris- conduct. At other times, the argument police time, and subjected himself and job performance. Sure, some voters ing incomes and opportunities, has escalates to threatened or actual vio- his community to statewide ridicule. have specific reasons to disapprove proved challenging, to say the least. lence. • Finally, if Soles is the unlucki- of Perdue’s tax and spending poli- North Carolina needs a new Sometimes Soles appears to re- est and most gullible 74-year-old cies. But I think many voters are direction. That doesn’t necessar- spond to these threats with gifts or confirmed bachelor in the history of dismayed at their state’s declining ily mean that the state needs new legal help. At other times, he calls the North Carolina, who has nothing to fortunes and looking for someone leadership. But if the political class police, then declines to press charges hide but just thinks it’s reasonable to to blame. The new governor will continues to be wedded to its out- and often provides gifts or legal help create public spectacles and shower suffice. dated perceptions and discredited at that point. thousands of dollars worth of gifts on Soles denies all charges of sexual drunken punks, then how could he be There is no single cause of assumptions, its hold on power will misconduct and chalks these diffi- considered competent to make good North Carolina’s economic plight. end. CJ culties up to a generous nature. He’s decisions about any matters of legal or It is likely, however, that the state’s even gone as far as to accuse political political importance? relatively high marginal tax rates enemies of orchestrating or exaggerat- Talk about your no-win sce- have played a role in weakening the John Hood is president of the John ing these incidents, and to explain the narios. CJ state’s competitiveness and dis- Locke Foundation. PAGE 26 OCTOBER 2009 | CAROLINA JOURNAL

LETTER TO THE EDITOR Reader: Story Had Factual Omissions To the editor,

I write to address the numerous fac- tual omissions regarding my experience and professional qualifications as presented in the September Carolina Journal article by David N. Bass, “Review Blasts Price Earmark Waste.” I wish it to be clear that I write not in de- fense of the Citizen-Soldier Support Program, but of myself as a person, a military spouse, and a professional. Bass wrote that I have “no military or behavioral health credentials, nor direct ex- perience with either topic.” As the wife of a decorated combat veteran, I take deep personal offense at that statement. Bass’ characteriza- tion of me is patently unfair, neglects important facts, and is irrelevant to the main subject of his article. His choice to glean incomplete informa- tion from my Facebook and Twitter pages in lieu of contacting me for comment indicates a considerable lack of professionalism. Economics and Health Care His characterization of me as a leftist radical is simply untrue. He fails to mention that I am the wife of a U.S. Army Special Forces ne of my sisters-in-law is a health care eat better and exercise, and lead healthier lifestyles, soldier who was awarded a Bronze Star for his professional. Whenever I bring up issues this economic idea says we should give them an recent service in support of Operation Endur- involved in today’s health care debate, she incentive to do so, through lower insurance pre- ing Freedom. My former employer, M.C. Dean Owaves me off by saying, “economics has nothing to miums, for example. Therefore, it’s important for Inc., is a highly regarded defense contractor contribute to these issues, because health is more people to have a financial stake in their health, so- working in direct support of U.S. military important than dollars and cents.” called “skin in the game.” If consumers are shielded operations throughout the world. I was also an Needless to say, this has led to some argu- from the financial consequences of their health- employee of the House Republican Staff within ments between us (mostly civil) because I believe related behavior, they won’t be as concerned about the Illinois General Assembly prior to accepting just the opposite — that economics has some very monetary implications. a position with the nonpartisan North Carolina important contributions to make Insurance Costs More for “Sure Things”: In- General Assembly Fiscal Research Division. as the country gets ready per- surance was created to pay for big expenses related Insinuating that I am a political extremist is not haps to change how we receive, to unexpected losses, but at a relatively low cost to only wrong, it’s insulting. and pay for, health care. the buyer. Let’s say 100 people face an equal likeli- Additionally, the article states that CSSP Let’s see if I can convince hood this year of suffering a loss of $10,000. The deputy director Lt. Col. (Ret.) William Abb you I’m right! loss will hit one unlucky person, but no one knows “appears to be the lone full-time staffer with ex- Price and Cost Are Dif- who it will be. If each person pays $101 for insur- tensive military experience.” Had he bothered ferent: Price is what is paid for ance coverage, then the $10,000 loss could be paid to do his homework, Bass would have learned one unit of a product or service, and the insurance company would keep $100 for its that there are quite a few veterans and military whereas cost is the price mul- effort. spouses working in our office. His disrespect- tiplied by the number of units MICHAEL The key word term here is “unexpected loss.” ful and dismissive treatment of my status as a bought. So if hamburgers have WALDEN Let’s say the insurance company is required to pay military spouse and my experience working in a price of $1 each and you buy $50 each year for a mandatory medical check-up for support of the U.S. military is evidence of his three, your cost is $3. each person. Now the $50 payment isn’t unexpected utter lack of understanding about the military, Therefore, a higher cost doesn’t necessarily — instead, it is expected and known. The result ­— military culture, military values, and the indi- mean a higher price if a greater quantity is being the annual insurance premium paid by each person viduals and families who serve our country. used. But while the quantity of hamburgers is easy immediately rises from $101 to $151. While I acknowledge and support the to see, the quantity of other things is more difficult Choices Must Be Made: This is maybe the rights of journalists, having been one myself, I to measure. Certainly no one would consider the “crowning” principle of economics. Indeed, eco- take exception to this disregard for the facts. “quantity” of services from today’s cell phones to nomics as a field of study exists only because be the same as from the first mobile phone 20 years choices must be made. Collectively, at any one time, Brenna Burch ago, but it’s hard to put a number on the difference. there aren’t enough resources to give everyone Carrboro, N.C. Most experts would consider the “quantity” everything they want. of medical care received from today’s procedures, The only question is, what is the mechanism Editor’s Note: Carolina Journal Associate operations, and treatment to be much greater by which these choices are made? That is, who Editor David N. Bass did attempt to request infor- compared to years ago. Modern medicine can do so makes the choices? In the context of health care, mation from staff at the Citizen-Soldier Support much more and do it much better. What this means who decides what operations and treatments are Program. However, when he made his attempt, he is that the price of medical care may not have risen given, and when? The possible answers are the was directed by UNC-Chapel Hill officials to speak – indeed, some economists say it has gone down. patient, physician, insurance company, the govern- with the university’s counsel. Instead, we’re paying a higher cost for health care ment, or some combination of these. “Any sort of information request on CSSP because we’re using more quantity. As with most resource decisions, it’s often the from the press, organizations or citizens must [be] Incentives Matter: At the heart of econom- entity controlling the purse strings that makes the handled through the UNC Legal Office. No depart- ics is the notion that people respond to incentives. ultimate decision. ment can send information directly to the inquirer,” If people are rewarded more, they’ll do more; if So who wins, my sister-in-law or me? CJ he was instructed in an e-mail forwarded from they’re rewarded less or even penalized, they’ll do CSSP staff. less. It’s the common idea of the carrot and the stick. Walden is a William Neal Reynolds Distinguished So if we want people to have annual checkups, Professor at North Carolina State University. OCTOBER 2009 | CAROLINA JOURNAL PAGE 27 Some Ideas on Health Care Reform

’ve been reluctant to write a obtain, coverage would increase. It damages significantly and establish situation is different. But for non- column about health care reform needs to be more affordable so em- special nonjury malpractice courts. emergency and routine procedures, at because it is such a complex issue. ployers can furnish it with just about • There needs to be greater least, we need to provide market par- IBut as the 800-pound gorilla in the any job and individuals can purchase transparency in medical care billing. ticipants with full information. Just as room, I cannot ignore it any longer. Of it in roughly the same way they do Insurers and providers have created Wal-Mart does, doctors and hospitals course, I have views on what should home, auto, or life insurance. an extremely complicated pricing sys- need to post their prices so patients be done. So here How to do this is, of course, the tem in a room of smoke and mirrors. can shop around. For providers there goes. big question. But here are some sug- They can do this because most people could be a price range depending on Through- gestions: have absolutely no idea how treat- circumstances. Medical device mak- out this process, • We need to increase compe- ment works or how much it should ers and the pharmaceutical companies President Obama tition among insurance providers. cost. What’s more, patients don’t pay don’t even need that. The costs of a has enunciated Don’t worry, I’m not advocating the the entirety of their own bills; the in- wheelchair and most medicines are the two critical public option. But its proponents surance company does. So when the largely fixed. goals of univer- do have a point. The current health patient is cured and sees he has only • When compensating pro- sal coverage and insurance system is not running like to pay $1,500 of a $20,000 bill, he feels viders, insurance companies and cost containment. a proper market. In many places one it’s a bargain. At the same time the the government need to incentivize Both are laudable. ANDY insurer essentially holds a monopoly. hospital and insurer are rubbing their performance rather than the amount But although the TAYLOR Blue Cross Blue Shield controls 70 hands with glee; they’ve collaborated of treatment. We should focus on president insists, percent of North Carolina — and there to fix the cost, and it has been paid. outcomes, not process. Of course, it’s whatever the are many states a lot less competitive Don’t buy into the finger wag- not easy to get reliable information details, on a huge than ours. We need to reduce the bar- ging going on between insurers about the value added by treatment and complicated monstrosity of a bill, riers to entry for competing insurers and providers. To be sure, they are — whereas it is quite easy to obtain a better strategy would be to concen- by making it easier for them to sign arguing over Obama’s reform effort — data about what a doctor actually did. trate on the latter. Done right, a focus doctors and hospitals, by encourag- after all, hospitals have to pick up the But we should at least try. Periodic on cost containment could bring about ing private investment in them, and tab when an uninsured sick person physicals can provide us with base- the kinds of expansion in coverage by providing incentives to those who shows up at the emergency room. But line information on a patient’s health the president is talking about anyway. wish to get into the business. on the whole they both love the “good and how she’s progressing under a There would be no need to legislate it. • Something has to be done cop-bad cop” routine. Doctors look particular doctor’s care. We should If you exclude those on govern- about medical malpractice insurance. good, and insurers don’t mind playing allow patients to rate their providers ment benefits (Medicaid, Medicare, In recent weeks, Obama has come to the villain. They’re both still making and permit those shopping for care to veterans’), there are essentially two the realization that he must take on money — consumer health care costs see the information. CJ reasons why an individual does not trial lawyers and support sensible tort are projected to rise about 7.5 percent have private health insurance: she reform. Estimates vary, but defensive this year and the sector is one of the Andy Taylor is professor and chair cannot afford it or her employer medicine and malpractice insurance very few that has been gaining jobs of Political Science in the School of Public cannot afford to provide it for her. If add around 8 percent to health care during this recession. and International Affairs at N.C. State insurance were cheaper and easier to costs. We need to reduce punitive Of course, every person and University. Bob Novak — American Patriot

ith the passing of Bob Novak the facts. future wife Geraldine, who, at the media tried to portray Novak as a par- in August, America has lost Prior to becoming a journalist, time, was a secretary for Johnson. tisan. Nothing could be further from one of the 20th century’s last Bob served in the Army during the Many may not realize that de- the truth. Al Hunt, the Washington Wgreat reporters. He was the consum- Korean War and rose to the rank of spite his conservative views, Bob was executive editor of Bloomberg News, mate “shoe leather” reporter who lieutenant. After the Army he became a registered Democrat. Bob always said it was difficult to pigeonhole had what the old-school journalists a reporter for The Associated Press said he maintained his Democratic Novak. “Bob was known for his very referred to as a nose for a story. and then for The Wall Street Journal. registration so that he could vote in tough and hard-line views,” Hunt Countless In 1963 he teamed up with Row- the primaries in Washington, D.C., — said, “but he was also a great reporter times over his 50- land Evans to start “Inside Report,” where he was a resident. who liked a good story even more year career, Novak which became the longest-running In his autobiography Prince of than his ideology.” got the story first, syndicated column in U.S. history. Darkness (a nickname his colleagues Novak has been described and he got it right. Their column appeared in hundreds conferred upon him), he wrote what as pugnacious and combative. His What sepa- of newspapers around the country. can only be described as an extremely friends knew the “off-camera” Novak rated Novak from The column was required reading for candid assessment of his life. Bob — the Bob Novak who loved his fam- the rest of the pack all serious students of politics, no mat- completed his memoirs two years ily, his faith, and his country. was that Bob knew ter what side of the fence you were on. before he died, and the book was And let’s not forget University of “everybody who Many will remember him as instantly a favorite read for all serious Maryland basketball. And his friends was anybody” in MARC a political commentator on CNN’s students of politics. knew that if you were down, Bob the nation’s Capi- ROTTERMAN “The Capitol Gang,” “Crossfire,” and As a character in an Oscar Wilde would be there for you. tol, national poli- “Evans and Novak.” He also appeared play once said, the work reflected a Above all, Bob Novak was a pa- tics, and capitals more than 200 times on “Meet the life “crowded with incident.” triot. Bob often said, “Love your coun- around the world. Press” and was a guest on the other His autobiography was also try, but distrust your government.” His Rolodex of sources was Sunday talk shows numerous times. a rare insider glimpse into official How appropriate for today’s times. massive, and it gave him a leg up on In his early years in Washington, Washington. It revealed up close and He will be sorely missed. CJ his competition. What also gave Bob Bob supported the candidacies of both personal reflections on some of the an edge is that he did his homework. John F. Kennedy and Lyndon John- most influential and powerful leaders Whether reporting on the budget, son. In fact, he considered Johnson a of our time, from JFK to George W. Marc Rotterman, senior fellow of defense issues, national security, or friend. Bush. the John Locke Foundation, served in the foreign policy, Novak was armed with Through Johnson, Bob met his After his death, some in the Reagan administration from 1981-84. PAGE 28 OCTOBER 2009 | CAROLINA JOURNAL Parting Shot Finalists for N.C. State Chancellor Leaked to CJ (a CJ parody) By Bobby Jordan prez,” Petty said. Education Correspondent Flair, from Charlotte and known in wrestling as RALEIGH “The Nature Boy,” told CJ he expects to be selected inalists for the North Carolina State University since he has had at least eight private interviews with chancellor’s position include NASCAR legend Bowles. Richard Petty, retired professional wrestler Ric Phipps served four years in federal prison af- FFlair, singer and “American Idol” runner-up Clay ter pleading guilty to fraud, conspiracy, and witness Aiken, and former state Agriculture Commissioner tampering in an investigation surrounding cam- Meg Scott Phipps, according to a search committee paign finances and contracts with State Fair vendors. member who talked to Carolina Journal but wanted to Phipps said she wanted to return to public life and remain anonymous. thought folks would forgive her. “Erskine told me The vacancy was created in June when former that what I did was nothing compared to Mike and Chancellor James Oblinger resigned over his role in Mary Easley,” she told CJ. the school’s hiring of former First Lady Mary Easley Aiken is a Raleigh native who became a nation- in 2005. University of North Carolina System Presi- al celebrity thanks to his appearances on “American dent Erskine Bowles is leading the search effort. Idol.” “I am unaware that I am being considered for When asked about the list, Bowles told CJ, “I the post, but if I actually come in first I will take the am disappointed that a member of the search com- job,” he told CJ. mittee has leaked information to Carolina Journal. The After NCSU fired Mary Easley in June from her committee members agreed that any leaks would $170,000-a-year job heading the Millennium Semi- have to be approved by me, and that no leaks would nars series, she filed a formal grievance against the go to Carolina Journal. I have to re-establish credibil- school. A close friend of Easley’s told CJ that Easley ity and trust between the press and the UNC System. Insiders are putting their money on “The King” as the informed Bowles she would drop the grievance if she next chancellor at N.C. State University. (CJ spoof photo) You [Carolina Journal] have led the way in making us is given the chancellor’s position. look like fools. I have nothing else to say to you.” Governors selected Bowles as system president in When asked to comment on the list of fi- The source told CJ that Bowles believes the new 2005 even though he had no experience in the uni- nalists, Gov. Beverly Perdue said she was disap- chancellor should be a prominent North Carolinian, versity system. pointed the list includes only one woman and no like himself, who is not from the academic commu- Finalist Petty told CJ he would be interested minorities. “But, I am a huge Clay Aiken fan and nity. Bowles, a successful Charlotte businessman, only if he could continue operating his racing busi- believe he might just be the right one,” she said. As served as President Clinton’s chief of staff during the ness, Petty Enterprises. “Erskine said it should not for Mary Easley’s chances, Perdue said, “Erskine Monica Lewinsky scandal. He ran unsuccessfully for be a problem and told me about all the business stuff would be insane to approve another job for that the U.S. Senate in 2002 and 2004. The UNC Board of he has continued to do in addition to being the UNC woman, Ms. Easley.” CJ E.A. MORRIS FELLOWSHIP FOR EMERGING LEADERS The E.A. Morris Fellowship is seeking principled, energetic applicants for the 2010 Fellowship class. Applications available online or at the John Locke Foundation. Application deadline is November 23, 2009. Please visit the E.A. Morris Fellowship Web site (www.EAMorrisFellows.org) for more information, including eligibility, program overview and application materials.

Application Timeline August 31, 2009 Applications available November 23, 2009 Applications due from candidates January 9, 2010 Notify of finalist status February 5-6, 2010 Selection week February 15, 2010 Notify Fellows and alternates Fellowship Dates March 12-14, 2010 Retreat 1- Pinehurst, NC June 18-20, 2010 Retreat 2- Blowing Rock, NC October 22-24, 2010 Retreat 3- Coastal NC

www.EAMorrisFellows.org [email protected]

200 W. Morgan St., Ste 200 Raleigh, NC 27601 1-866-553-4636