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Mccrory Not Budging on I-77 Toll Project

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Mccrory Not Budging on I-77 Toll Project INSIDE THIS ISSUE: DEPARTMENTS Medicaid re- North Carolina 2 Education 8 form includ- CAROLINA Local Government 11 From Page 1 13 ed in Senate Higher Education 17 version of Books & the Arts 20 Opinion 24 budget/2 JOURNAL Parting Shot 28 A MONTHLY JOURNAL OF NEWS, ANALYSIS, AND OPINION FROM THE JOHN LOCKE FOUNDATION July 2015 Vol. 24 No. 7 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org McCrory Not Budging on I-77 Toll Project the issue, citing the high cost of termi- nating the contract and the faster time- Opponents calling table for completion promised by the public-private partnership. $144.5 million McCrory spokesman Josh Ellis told Carolina Journal via email on June incentive a ‘bribe’ 19: “Governor McCrory continues to By Don Carrington support the I-77 Express Lanes proj- Executive Editor ect, a project that was unanimously RALEIGH approved by the Charlotte Regional espite widespread vocal oppo- Transportation Planning Organization. sition from area business lead- Canceling the project would cost North ers and residents, Gov. Pat Mc- Carolina taxpayers approximately DCrory and North Carolina Department $100 million, money that should be in- of Transportation officials maintain it vested in other infrastructure projects. is too late for the The current project can be delivered state to scrap the within a matter of years instead of up controversial 26- to 20 years to secure funding through mile Interstate 77 Toll road opponents Kurt Naas, left, Mac McAlpine, right, and others gather outside the normal state channels.” tolling project be- the Davidson Town Hall on June 9 after the town council approved a resolution asking Opposition to the project has tween Charlotte the state to cancel the toll road agreement. (CJ photos by Don Carrington) reached the General Assembly. State Sen. Jeff Tarte, R-Mecklenburg, told CJ and Mooresville in named the I-77 Hot Lanes Project. The terize a $144.5 million incentive pay- he will introduce a bill to stop the proj- favor of nontolled project is expected to cost $648 million. ment from NCDOT to the Charlotte ect, since several local governmental alternatives. Mobility Partners will set toll rates, Regional Transportation Planning Or- bodies and the Lake Norman Chamber On May collect the tolls, and — for the most ganization as a bribe. Others predict of Commerce have passed resolutions 20, state officials part — keep all the proceeds. nightmarish commutes, as the eight- I-77 at exit 28 in asking for alternatives to the current Cornelius will not signed a 900-page, Opponents of the project want mile stretch at the northernmost por- toll plan. have an access 50-year agreement the state to build additional lanes with- tion of the project will include only one “Ninety-eight percent of the point to toll lanes. with I-77 Mobil- out charging tolls, and pay for them toll lane traveling each direction, with people in this area are against this toll ity Partners, a using existing funding mechanisms or little room to accommodate disabled subsidiary of a Spanish company, to with the highway bonds McCrory is motorists or emergency vehicles. build and operate the project, officially promoting. Some opponents charac- But McCrory is not budging on Continued as “McCrory,” Page 14 Solar Enriches Big Business, Costs Consumers PAID claimed an additional $3,112,503 in tax RALEIGH, NC U.S. POSTAGE credits, and BCBS has been issued an- PERMIT NO. 1766 NONPROFIT ORG. Most tax credits other $12,696,204. The state grants tax credits for and incentives go 35 percent of investments in renewable energy projects, most of them solar to large corporations farms. Developers also can claim a 30 By Dan Way Associate Editor percent federal tax credit for solar proj- RALEIGH ects. In addition, the N.C. Clean En- hile Duke Energy is passing ergy Technology Center at N.C. State higher costs to ratepayers University lists 113 programs under because state law forces it to which renewable projects in North Carolina can qualify for various state, Wpurchase renewable energy, the utility renewable tax credit payments in federal, and other incentives. also claimed $62.8 million in tax write- 2014, with Blue Cross and Blue Shield State Revenue Department re- offs in 2014 for its own investments in of North Carolina a distant second at cords show that big solar is big busi- green power projects. $16.8 million, according to state De- The electric giant accounted for partment of Revenue records. The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 roughly half of the state’s $126,661,982 Dating back to 2010, Duke has Continued as “Solar,” Page 13 PAGE 2 JULY 2015 | CAROLINA JOURNAL North CaroliNa C a r o l i n a Senate Includes Medicaid Reform in Budget By Dan Way “The lower-cost providers, primary care doctors and Journal Associate Editor OB-GYNs, are the ones that are more difficult to recruit into RALEIGH those networks, and we think getting those rates up consis- Rick Henderson enate leaders’ General Fund budget proposal includes tent with Medicare rates puts us in a much better position to Managing Editor major policy initiatives related to Medicaid, removing recruit them into the network,” Hise said. responsibility for Medicaid from the state Department Having greater choice and doctor access is vital in get- Don Carrington Executive Editor Sof Health and Human Services while creating a Cabinet- ting a federal plan waiver that is essential before moving to level Health Benefits Authority to administer the $14 billion a new system, he said. government insurance program for the poor and disabled. The plan would encourage greater use of preventive Mitch Kokai, Michael Lowrey The budget also would eliminate the state’s certificate- care, reduce unnecessary emergency room costs, and build Barry Smith, Kari Travis of-need laws controlling the expansion and location of med- a stronger health care information exchange to increase ac- Dan Way ical facilities, and allow more health provider networks to cess to critical information that helps doctors and hospitals Associate Editors compete for coverage of Medicaid patients. create better tools for improving health outcomes, Brown Chad Adams, Kristy Bailey At the June 15 press conference rolling out the Senate said. David N. Bass, Lloyd Billingsley budget, Senate Majority Leader Harry Brown, R-Onslow, Julie Henry, spokeswoman for the North Carolina Kristen Blair, Roy Cordato said the Medicaid pro- Hospital Association, Becki Gray, Sam A. Hieb posals are intended to said her organization Lindalyn Kakadelis, Troy Kickler shift a “troubled and “join[s] other Medicaid George Leef, Karen McMahan overbudgeted Medic- care providers in sup- Donna Martinez Karen Palasek aid program towards a porting provider-led Marc Rotterman, Jesse Saffron Terry Stoops, Andy Taylor patient-focused, cost- Medicaid reform rather Michael Walden, Hal Young minded vision for the than HMOs,” which is John Calvin Young program.” Among the another acronym for Contributors goals, Brown said, was managed care organi- creating “a new system zations. that will achieve budget The North Caro- Joseph Chesser, Zak Hasanin predictability and sus- lina Medical Society, Catherine Koniecsny, Charles Logan Austin Pruitt, Matt Shaeffer tainability to promote which represents physi- Interns competition, and ensure cians, did not respond Medicaid recipients re- to a request for com- Published by ceive the best care at the ment on the Senate The John Locke Foundation lowest cost to taxpay- budget provisions. 200 W. Morgan St., # 200 ers.” Hise said the Sen- Raleigh, N.C. 27601 The House budget ate has “a more stable (919) 828-3876 • Fax: 821-5117 plan” than the House www.JohnLocke.org proposal, enacted earli- er this month, left Med- because it offers con- icaid under the control sumers more choices, a Jon Ham of DHHS, but senators’ condition federal regu- Vice President & Publisher confidence in the bu- lators look for when ap- reaucracy to fix its flaws is waning. proving any Medicaid reform provisions. Kory Swanson “We’re not picking one type of provider and saying President The Senate and House budget plans were in a confer- ence committee at press time, and Gov. Pat McCrory op- you will be the only provider-led entities that we have in the state,” he said. John Hood poses much of the Senate Medicaid plan. But even if those Chairman reforms are removed from the budget McCrory signs, sena- The Senate plan would eliminate in two years the fee- tors have made their priorities clear. for-service system now in operation, under which health Charles S. Carter, Charles F. Fuller In the past, McCrory has opposed using budgets to care providers get paid for every patient visit. Bill Graham, John M. Hood implement policies instead of debating and approving them In its place would be a model, starting Aug. 1, 2017, Assad Meymandi, Baker A. Mitchell Jr., in which providers would be paid a set fee each month for in a more deliberative process. David Stover, J.M Bryan Taylor each patient. The organizations operating Medicaid plans The Senate Medicaid reform plan would select three Board of Directors would be responsible for meeting budgets set by the Gen- operators through a competitive bidding process to estab- eral Assembly and paying cost overruns now assumed by Carolina Journal is lish statewide Medicaid networks. The state also would be a monthly journal of news, state taxpayers. divided into six regions, and two provider-led networks Hise said lawmakers were unable to get updated bud- analysis, and commentary on would be allowed to set up shop in each region. state and local government get numbers from DHHS as the fiscal year approached its and public policy issues in Sen.
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