INSIDE THIS ISSUE: DEPARTMENTS How much North Carolina 2 C A R O L I N A Education 7 information Interview 10 Higher Education 11 must you give Local Government 16 the U.S. Cen- Books & the Arts 20 Opinion 24 sus?/6 A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION Parting Shot 28 JOURNALFROM THE JOHN LOCKE FOUNDATION April 2010 Vol. 19 No. 4 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org Eco-Farm Project Seeks Millions in Tax Funds nonprofit to handle the development activities. Bradbury has been unable Neighbors concerned to purchase the property, even though her Web site (http://cvofonline.com) over developer’s creates the impression that the non- profit actually owns it. plans, criminal record Neighbors organize By Don Carrington Executive Editor Most area residents were unfa- miliar with the project until the Macon FRANKLIN County News, a weekly and online pub- Macon County woman who lication, published a story about it in served five years in a Colorado early February. The story did not men- prison on a theft charge is seek- tion Bradbury’s Aing $15 million criminal record. in public funds That story, to develop what Citizens’ group combined with she calls “North information post- Carolina’s first all opposed the use ed on Bradbury’s Plans call for the current Farm at Matlock Creek to be bought and renamed The Farme Green Eco-Com- Web site, led some at Matlock Creek. (CJ photo by Don Carrington) munity.” of $15 million skeptical local citi- “We do not believe this project is power map for Macon County shows The pro- tax funds on zens to create an something that $15 million of taxpayer insufficient wind to even be classified posed 24-home informal group money should be spent on, particular- [as a suitable location for wind pow- project, named ‘green’ community named Cowee ly when our national debt is soaring,” er],” he said. The Farme at Mat- Community Con- said Norman Beller, chairman of the On behalf of his group, Beller has lock Creek, is lo- cerned Citizens. citizens group, in mid-March. written U. S. Sens. Richard Burr and cated on a 34-acre After Carolina Beller also said several members Kay Hagan, 11th District U. S. Rep. site about seven miles north of Frank- Journal launched an investigation of expressed serious concerns about the Heath Shuler, State Sen. John Snow, lin in an area known as the Cowee the project’s finances, on March 24 the technical feasibility of the project. For and State Reps. Roger West and Phil community. The developer, Kelley L. property owner’s listing agent notified instance, he said Bradbury’s plans call Haire for assistance in stopping the Bradbury, established Cowee Valley CJ that the contract with Bradbury to for wind power as a major source of en- Organic Farme Inc. a year ago as a purchase the site had been terminated. ergy for the development. “The wind Continued as “Eco-Farm,” Page 14 North Carolina Candidates Gear Up in Swing Districts

PAID is,” said Raleigh-based political con- sultant John Davis. RALEIGH, NC U.S. POSTAGE Turnover could alter PERMIT NO. 1766

NONPROFIT ORG. Republicans need a net gain of nine seats in the House and six in the balance of power in Senate to snag control. Polls show that voters favor Republicans over Demo- House and Senate Retirements, resignations, and crats in state and federal races by a shifting political dynamics make 10 slim margin, with one-fifth undecided. By David N. Bass, Anthony Greco, seats in the Senate and 20 in the House “It could be a crazy year where if and Sara Burrows vulnerable to GOP challenges this year. you’re a Republican and on the ballot, Associate Editors Political experts say a sluggish econo- you win,” said GOP strategist Ballard RALEIGH my, anger over health care reform in Everett. he North Carolina General As- Congress, and corruption could propel But Democrats say their party’s sembly could look much differ- Republican candidates into office. dominance of state politics won’t ent in 2011. At least, that’s what The GOP has fielded a record- change this year. RepublicansT hope. breaking number of contenders — 223 “The Democrats have been in For the first time in over a cen- compared to Democrats’ 170 — and control since the middle 19th century tury, the minority party has a shot at secured at least one challenger in ev- because voters have trusted them more wresting control of the legislature from ery Senate district and all but 10 House than they have Republicans in han- Democrats, and it’s banking on a string districts. The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 of competitive races to do it. “It shows you where the passion Continued as “North,“ Page 15 PAGE 2 APRIL 2010 | CAROLINA JOURNAL North Carolina C a r o l i n a WWII Vet Could Lose Farm to Eminent Domain By Karen Welsh from the town to talk with him, to negotiate with him and Journal Contributor acquire the land, but he wouldn’t sell.” CHARLOTTE A lawsuit followed and eventually was settled in me- atthews resident Neubert Purser, 87, has suffered diation, where Purser was awarded more than $4.25 mil- Rick Henderson two major blows in his life. The first came while lion. The decorated veteran also was allowed to remain on Managing Editor serving his country on combat duty in the U.S. his property tax-free and rent-free until his death. MArmy, on the front line of the Battle of the Bulge in Germany Don Carrington during World War II, when fragments from an exploding ‘More than his fair share’ Executive Editor shell ripped a 4-by-8-inch gash in his body. “We offered him more than his fair share,” Keller said. The second blow came March 5, 2005, only this time David N. Bass, Sara Burrows “We’ve been more than fair with him. People think he got Purser didn’t see it coming. That’s the day he opened his Anthony Greco, Mitch Kokai a good shake, and what we did sounds reasonable to most Michael Lowrey morning newspaper to find a 30-day notice from the Town people.” Associate Editors of Matthews, condemning his 71-acre farm, which he had Buckley said he can’t fathom why Purser put up a purchased in 1954. large red-and-white sign on the front fence of his former Jana Benscoter, Kristen Blair Purser already had told the town he didn’t want to property stating “The Town of Matthews Took A World War Roy Cordato, Becki Gray sell, but was unaware that they had the right to seize his II Veteran’s Farm.” Paige Holland Hamp, David Hartgen property using eminent domain. “I don’t understand [Purser’s] comments that we stole Sam A. Hieb, Lindalyn Kakadelis “That blow was as bad as what I got overseas,” he said. his property,” the attorney said. “It’s disconcerting to me. George Leef, Karen McMahan “It knocked me plain off my It was settled in 2006, so Donna Martinez, Sarah Okeson feet. Up until that moment what is going on now?” Karen Palasek, Lee Raynor I didn’t know what emi- Keller said the land Marc Rotterman, Jim Stegall nent domain was, but I soon was appraised at $43,000 George Stephens, Jeff Taylor found out I had been sold an acre, and they ended Michael Walden, Karen Welsh out by my own country.” up paying him $59,000 an Hal Young, John Calvin Young The town says it needs Contributors acre. open space to handle a surg- Dixon disagreed. ing population, but the “I had worked in real Jacob Burgdorf condemnation has some Adrienne Dunn estate, and I told the board residents worried that their they were not paying Mr. Kamen Nikolaev property might be next. And Editorial Interns Purser fair market value,” while Purser’s land is target- he said. “They used a ed to become a regional park county appraiser, and they Published by and recreation facility — sat- came up short by $10,000 to The John Locke Foundation isfying a clear public use — $15,000 per acre. I felt their 200 W. Morgan St., # 200 critics of eminent domain offer was not enough.” Raleigh, N.C. 27601 wonder if the town could Purser remains up- (919) 828-3876 • Fax: 821-5117 have used a less-confronta- This satellite view of Neubert Purser’s farm shows it surrounded set because he felt forced www.JohnLocke.org tional approach. by the encroaching subdivisions of the Charlotte suburbs. into taking the town’s of- Former Matthews (Google Earth image) fer. He could no longer pay Jon Ham Board Member Bill Dixon, his lawyer’s fees, which Vice President & Publisher who served two terms from 2006-09, said the move to ac- amounted to $400,000 by the time the case was settled, and quire Purser’s farm was an unethical situation that took the eminent domain law ultimately didn’t leave him a legal John Hood many area residents by complete surprise. leg to stand on. Chairman & President “I was shocked at their decision,” he said. “The town council had already voted for condemnation of Mr. Purser’s Alternatives to acquisition Bruce Babcock, Herb Berkowitz land when I came onboard. It was not handled professional- Charlie Carter, Jim Fulghum ly. Most of it came through the back door, and people didn’t Although he’s not familiar with the details of the Purs- Chuck Fuller, Bill Graham know about it. Legally, they could do it, but ethically it was er case, Daren Bakst, the director of legal and regulatory Robert Luddy, Assad Meymandi a bad decision. It broke Mr. Purser. It was terrible. It really studies for the John Locke Foundation, said condemning Baker A. Mitchell Jr., Carl Mumpower, brought him grief.” land to build a park is generally not the right thing to do. J. Arthur Pope, Thomas A. Roberg, “A park is a true public use, but I don’t think it’s a David Stover, J.M Bryan Taylor, Population and open space compelling reason to take someone’s land,” he said. “I don’t Andy Wells think it was appropriate in this instance. They violated a Matthews Communication Director Annette Keller Board of Directors person’s rights. They definitely should have sought other said community leaders decided to secure the land after a alternatives and exhausted their remedies. Then it would be Carolina Journal is a monthly journal long-range planning study revealed there wasn’t enough appropriate.” of news, analysis, and commentary on state open space available for future parks and recreation devel- Dixon said this did not happen. and local government and public policy issues opment. in North Carolina. “Matthews is located adjacent to Charlotte, which has “There was a more ethical, straight-up way to handle ©2010 by The John Locke Foundation grown rapidly,” she said. “As a result, the Town of Mat- this,” he said. “They could have secured a first right of re- Inc. All opinions expressed in bylined articles thews has grown rapidly, and what we found is land was fusal for the land or placed a first option on it.” are those of the authors and do not necessarily disappearing very rapidly.” The condemnation of Purser’s land has left other reflect the views of the editors of CJ or the Keller said the town does not have a history of con- residents of Mecklenburg County uneasy about their own staff and board of the John Locke Foundation. demning people’s properties without just cause, but the property rights. Material published herein may be reprinted as unprecedented climb in population took the community by Lee Meadows has lived in Matthews for 40 years and long as appropriate credit is given. Submis- surprise. Matthews has grown from 10,000 residents in 1980 he said it was “unfair” and has left him feeling insecure sions and letters are welcome and should be to approximately 30,000 today, and city officials needed ad- about his own property. directed to the editor. ditional open space for recreational facilities, including a re- Nearby Huntersville resident Pam Hester has worked CJ readers wanting more information gional park, sports fields, and a playground. tirelessly against the government taking some of her land between monthly issues can call 919-828- through condemnation after Mecklenburg County decided 3876 and ask for Carolina Journal Weekly Keller said Purser’s land, surrounded by homes, was to build a greenway path for all residents to use straight Report, delivered each weekend by e-mail, one of the last intact undeveloped parcels of land available or visit CarolinaJournal.com for news, links, near the town. through her backyard. and exclusive content updated each weekday. According to Matthews Town Attorney Charles Buck- “It’s unbelievable,” she said. “I’m sorry, it’s my back- Those interested in education, higher educa- ley, the leaders followed proper protocol and procedure to yard. I own it. I bought it for my children to play in. Our tion, or local government should also ask to procure the land. family doesn’t want to face the same fate as Mr. Purser in receive weekly e-letters covering these issues. “The town council said his property was essential, and Matthews, who lost his farm so the government could have they condemned it by resolution,” he said. “Agents came a new park. It’s just not right.” CJ APRIL 2010 | CAROLINA JOURNAL PAGE 3 North Carolina Homeowners Run Regulation Hurdle Dealing With Pesky Varmints

By Karen McMahan the Senate side, there’s the Agricul- Contributor ture/Environment/Natural Resources RALEIGH Committee and the Appropriations fter Durham passed an ordi- on Natural and Economic Resources nance last year allowing resi- Committee. dents to raise chickens in their And of the General Assembly’s Ayards within city limits, Trinity Park 69 nonstanding, interim, and study homeowner Mari Mansfield jumped at committees, several regulate or over- the chance to have fresh eggs whenev- see natural and wildlife resources. er she liked, so she built a chicken coop State Rep. Arthur Williams, D- and purchased some baby chicks. Beaufort, chair of the House Standing Mansfield says her passion for Committee on Wildlife Resources and sustainable living led her to maintain chair of the House Select Committee a large vegetable garden for several on Coyote Nuisance Removal, said the years, so raising chickens seemed a committee was formed after Rep. Bill natural extension of her efforts. Some Faison, D-Orange, proposed House neighborhood varmints, however, had Bill 1631 last year. Some legislators felt other ideas. the issue needed further study before For five months, she cared for passing the bill. the chicks, watching them mature Williams, a former commissioner into egg-laying adults only to find one with the North Carolina Wildlife Re- morning they’d all been killed by a rac- sources Commission, said the Coyote coon. Before purchasing more chicks, Nuisance Removal Committee is an Mansfield sought help from Durham example of how the state works to pro- Animal Control. After learning that the tect wildlife resources without unduly agency would intervene only if the rac- Mari Mansfield of Durham ran into a blizzard of regulations when she tried to do restricting landowner rights. something about raccoons getting into her chicken coop and killing her hens. (CJ coon were rabid, Mansfield was left to photo by Jon Ham) Farmers across the state have find her own solution. been complaining about loss of live- Rather than killing the animal, Dennis Doty, senior planner with Dur- sum,” said Wilma. “We estimate we stock from coyotes. In the committee’s Mansfield said she wanted to catch ham’s City-County Planning Depart- lost $4,250 in income, and, for a small first meeting, Williams said he and fel- it and relocate it to a more rural area ment, said landowners have to submit farm, that’s a lot of money. Rock- low committee members learned that of the state. She sought advice from a “plot plan” with their application ingham County has a leash law, but the coyote problem is quite compli- neighbors via her community’s “list- and solicit consent from adjacent land- there’s no money from dog tag fees or cated, thus they are working with the serv” and found out she might have to owners. After submitting the appli- other money to reimburse us.” state’s Wildlife Resources Commission get a permit. cation, a zoning enforcement officer, Pet owners also can sue and have to develop a program to diminish the From the state Wildlife Resourc- inspections officer, or animal control sued farmers for killing their dogs threat. es Commission Web site, she learned office performs a physical inspection even when the dogs killed livestock, she’d have to purchase an annual trap- of the applicant’s premises to deter- said Chase. Ordinances vary so much Rights vs. conservation ping license for $10 but could trap only mine compliance before the applica- and can be interpreted differently by The complexity and redundancy during the designated season, Oct. 12 tion is approved. whoever is enforcing the laws. “If live- in regulations make it easy for North through Feb. 23. “Their Web site has Ben Chase, an agricultural exten- stock get out, and they frequently do, Carolina citizens and landowners to detailed drawings and pictures of ap- sion agent in Reidsville, said a lack of Rockingham County can cite the farm- run afoul of the law unknowingly. And proved traps, but many of them are not uniformity among ordinances across er and charge a fine. many of the laws and administrative very humane. In fact, most of them are the state makes it difficult for farmers Failure to pay the citation within rules cost citizens both time and mon- cruel,” Mansfield said. to protect their livestock from preda- 72 hours can result in a late charge of ey in order to obey. “I started with the most humane tion. In most instances, farmers can kill $50 plus $5 a day, and the farmer could The March 2007 Carolina Jour- trap, but the raccoon escaped. Then a predatory animal legally if it’s in the even be arrested. It doesn’t happen of- nal reported that some residents in I bought a bigger one, but so far I’ve act of destroying livestock, but some ten, but it just shows how the laws can Brunswick County’s Boiling Springs caught our cat, a squirrel, and a pos- counties and municipalities prohibit be complicated.” Lakes region began cutting down all sum, but not the raccoon,” laughed farmers from killing the predator if the Boards and commissions the longleaf pines on their property Mansfield, “so now I’m looking at an- animal is simply on the property near after learning that it might fall within other type of trap.” their livestock. Also, there’s no uniform Of the state’s more than 400 the habitat of an endangered species of law that allows farmers to recover their The regulation maze boards and commissions, 18 cover woodpecker. economic losses from predation. wildlife and natural resources-related Should that happen, landown- Asked what has surprised her Earlier this month, Donald and issues, from clean water management, ers would face restrictions on the use most, Mansfield said it was discover- Wilma Brown, sheep farmers in Reids- plant conservation, and fisheries to of their property and have to obtain a ing such strict laws and regulations ville, had 48 ewes and lambs on their farmland preservation, forestry, and federal permit, a time-consuming and about wildlife. Apart from the federal farm slaughtered by at least two dogs. agriculture. The governor is charged costly process that could take up to a Endangered Species Act, North Caro- “Donnie managed to put one of with appointing individuals to lead year. lina has its own list of “endangered,” the dogs down, but the other one es- these entities, but the Senate President Earlier this month, some residents “threatened,” and “special concern” caped,” Wilma said. “It was a horrible Pro Tem and Speaker of the House also of Governors Club in Chatham County species, each of which has a special set sight. The mothers and babies were make appointments. were upset when their property own- of rules and regulations that restrict stacked five deep because they piled Not to be confused with the ap- ers association obtained a state permit what landowners can do on their own on each other trying to escape from the pointed boards and commissions, the to allow experienced bow hunters to property. Counties and municipalities dogs. What was so hurtful is that we state House and Senate have their kill deer. State law prevents the ha- have separate and sometimes differing didn’t hear them because sheep don’t own committees. Among the House rassment of hunters who lawfully are rules. cry out when they’re being hurt. They committees are the Select Commit- killing, trapping, or removing wildlife. Durham’s ordinance on rais- had bites on their neck. Even the don- tee on Coyote Nuisance Removal, the The association was acting in re- ing backyard chickens is one of the key and her baby that were in the pas- Environment and Natural Resources sponse to complaints from other resi- state’s most restrictive laws. Durham ture had been bitten on the front legs.” Committee, the Marine Resources dents that the deer were causing exten- residents have to apply for a “Limited “Animal control came out to put and Aquaculture Committee, and the sive and costly landscaping damage Agriculture Permit” and pay a $26 fee. a trap, but they only caught a pos- Wildlife Resources Committee. On to their property. CJ PAGE 4 APRIL 2010 | CAROLINA JOURNAL North Carolina N.C. Briefs Amazon Tax Not Clicking in North Carolina Poole faces new charges By Karen McMahan ate sales; revenues then are shared by the out-of-state mer- A federal grand jury March Contributor 18 handed down new charges chant and local affiliate. Affiliate marketing functions essen- RALEIGH tially as an online referral. in the corruption case against eeking to close its budget shortfall last year, North Joseph Henchman, tax counsel and director of state former Gov. Mike Easley’s long- Carolina followed the lead of New York and Rhode Is- projects for The Tax Foundation, said that forcing out-of- time legal counsel Ruffin Poole. land in passing an Internet sales tax, which many have state companies engaged in interstate commerce to collect Poole, a top aide during Sdubbed the Amazon tax or affiliate nexus tax. Colorado re- remote taxes from more than 8,000 separate tax jurisdictions Easley’s two terms as governor, cently passed a similar tax, and several other states are con- nationwide, each with different tax systems, would be not now is indicted on 57 charges. He sidering some type of Internet sales tax. only unconstitutional but also unfair. faces three new counts of income Less than a year after imposing its tax on online mer- “Brick-and-mortar businesses collect sales tax based tax evasion and three of use of chants like Amazon.com, Rhode Island already is consider- on where the business is located, so they need to track only facilities in interstate commerce in ing repeal. The state has generated no additional sales tax one sales-tax rate and base,” Henchman said. Having to aid of racketeering, each having revenue from the tax, and income tax collections are lower. comply with the the rules from so many tax jurisdictions a maximum penalty of up to five Rhode Island residents earned less income and paid less would place online businesses at a competitive disadvan- years in prison and a $250,000 fine. income tax because Amazon.com and other merchants sev- tage. The new charges come on ered their affiliate relationships rather than paying what Despite warnings from tax policy analysts and mer- the heels of a move by Poole’s they believe is an unconstitutional tax. There’s also anec- chants that these taxes would not lead to a revenue wind- attorney to have the entire case dotal evidence that Amazon.com affiliates are leaving (or fall and might even reduce tax collections, North Carolina dismissed. Joseph Zeszotarski, of refusing to relocate to) North charged ahead and passed the the law firm Poyner Spruill, argued Carolina and other states im- tax, which took effect Jan. 1. in motions that the charges didn’t posing this online tax. match the allegations in the case. It’s also unclear how Tax revenues lagging Media outlets also have re- much revenue is generated by Tax analysts attribute the ported that Easley’s campaign, the new tax, which lawmak- slow sales tax collections to the fined $100,000 by the state Board ers forecast, would raise $36 state’s double-digit unemploy- of Elections in October partly for million over its first two years. ment, a lower rate of spending campaign finance violations, is Thomas Beam at the North Car- as consumers opt to pay off bankrupt and apparently won’t olina Department of Revenue their credit card and other debt, be able to pay the entire fine. told CJ the department doesn’t and a loss of household wealth On Jan. 21, a grand jury track information isolating af- from the housing recession and filiate tax revenues from other indicted Poole on 51 corrup- the sharp drop in equity mar- sales tax collections. But he sup- tion counts, including extortion, kets that happened in late 2008. plied a formula that could provide a rough estimate if Ama- bribery, and money laundering. For the first eight months of the fiscal year, net with- zon disclosed the number of its affiliates and the amount of The indictment alleges that holdings (wage and salary minus refunds) were 2.2 percent an average sale. below the $5.4 billion target for the time period. Continuing Poole, called the “go-to guy in But Sandra Johnson, fiscal analyst for the General As- the governor’s office,” helped weakness in employment has led analysts to lower signifi- sembly’s Fiscal Research Division, said the division’s March cantly growth forecasts in the state’s personal income for Easley donors expedite envi- 2010 general fund report and forecast show the state’s net ronmental permits for coastal 2010, predicting growth of less than 1.5 percent. That would sales and use-tax collections, including tax law changes, are be far below the 2.9 percent analysts first forecast in May. developments. In return, the in- $125 million short of expectations, even though collections dictment says Poole received free Discussions on several e-commerce forums, blogs, and are up 12.2 percent during the first eight months of the fis- Web sites that enable affiliates and online marketers to share flights, gifts, and opportunities cal year. Even so, baseline sales tax collections (adjusted for their concerns and successes provide anecdotal evidence to invest in those developments. tax-law changes) for the first eight months of the fiscal year from affiliates in North Carolina and other states that the are down 11 percent from last year. law has had a negative effect on both sales and income. On one forum, a marketer considering moving to North Caroli- Amazon announced intentions Planning lingo exposed na said he wouldn’t now because the law means he’d imme- Before the state passed its Internet sales tax law, Ama- diately lose his top three affiliate relationships. (Additional Government planners distort zon.com notified all its North Carolina affiliates in June 2009 insights and discussion can be found at www.affiliateadvo- terms such as “affordable housing” that it was dropping the program and announced it would cacy.com, www.netchoice.org, and www.performancemar- and “stakeholders” to attack basic no longer accept new applications from North Carolina ketingassociation.com.) individual freedoms, according to a residents. An Amazon.com spokesman would not say how Juggernaut continues new planning jargon glossary cre- many affiliates the company had in North Carolina prior ated by Michael Sanera, research to ending the affiliate program and how many sales they In March, Amazon.com eliminated its affiliate program director and local government ana- generated, stating that the company does not provide that in Colorado after it became the latest state to impose Inter- lyst for the John Locke Foundation. information. net sales taxes. While the final bill eliminated the language Planners are doing more than Internet sales tax supporters claim that states lose requiring “in-state affiliates would trigger a tax liability,” in- using technical jargon common to revenue from out-of-state merchants selling products from dustry and legal experts believe Colorado’s “track and tax” their profession, Sanera said. “They online merchants like Amazon.com but not charging or col- provision poses a grave threat to consumer privacy. are distorting language intention- lecting the local sales tax. However, a March 2009 special The law requires retailers to provide customers annu- ally to serve a political end,” he said. report from The Tax Foundation, a Washington, D.C.-based ally with a summary of taxable items they purchased and in- The glossary tackles more than nonprofit, nonpartisan tax research organization, reported form them they need to pay the 2.9 percent state tax. Privacy two dozen terms, such as “affordable that “the nation’s first few Amazon taxes have not produced experts are concerned because retailers also are required to housing.” “Absent excessive land- any revenue at all, and there is some evidence of lost rev- file an annual statement with the Colorado Department of use policies,” he said, “housing in enue.” Revenue with purchase data on each buyer. Some Colorado all price ranges would be available.” The report says these laws worsen short-term budget lawmakers are hoping to pass emergency legislation to ad- Sanera also tackles the term problems and harm economic growth. dress some of these concerns. “stakeholders,” calling them “spe- States adopting Internet sales laws are seeking to cir- NetChoice, a coalition of trade associations, e-com- cial-interest groups who are con- cumvent the 1992 U.S. Supreme Court ruling in Quill Corp. merce businesses, and online consumers, discussed some sulted in developing land-use plans v. North Dakota that said a “business had to be physically of these privacy concerns on its blog (www.netchoice.org). and regulations.” “The general present in a state before that state could require the business “The Colorado Department of Revenue will know all the public or the broader public inter- to collect use tax on its behalf.” Instead, lawmakers have vendors where residents made online or catalog purchas- est or constitutional rights are not redefined “nexus” to mean that out-of-state merchants are es from remote sellers. This would include sensitive items considered,” Sanera said. CJ subject to collecting the sales and use taxes because they of a particular kind of merchandise — sex items, specialty have in-state affiliates. The merchant’s Web site links gener- books, items that reveal political views, etc.” CJ APRIL 2010 | CAROLINA JOURNAL PAGE 5 North Carolina Hookah Lounge Owner Piling Up Fines for Defying Smoking Ban

By Donna Martinez While Bliss consults an attorney Contributor on what to do next, Wilmington hoo- CHAPEL HILL kah bar Juggling Gypsy wages its own Chapel Hill hookah bar owner’s fight. Juggling Gypsy has received defiance of the state’s smoking three $200 fines from the New Hanover ban now is costing him $200 a County Health Department, said man- day.A Fines began accruing March 22 for ager Denny Best. The bar is appealing Adam Bliss, owner of Hookah Bliss, the fines. when an official noncompliance ticket Best said he believes the bar was hand-delivered by Tom Kon- was always in compliance, but he has sler, Orange County’s environmental moved its hookah activity outside. He health director. says the county considers the bar now “I’m going to try to fight it,” to be meeting the law. “We’ve adjusted said Bliss, who has continued to sell ourselves a little bit because we didn’t hookahs since the ban took effect Jan. want to keep racking up fines,” Best 2. Bliss had encouraged people to file said. “We have outside space where we complaints against his bar to gener- can put our people.” Inside, the bar is ate an administrative penalty for a offering herbal shisha. Best said herbal possible legal challenge. He received products don’t fall under the ban. warning letters from the county in late On March 26, Juggling Gypsy January and early February. Monday’s had scheduled an all-day fundraiser, ticket is what he’s been waiting for — with proceeds headed to a legal de- a third violation, which comes with a fense fund, should the bar lose its ap- fine. Hookah Bliss owner Adam Bliss may join with other hookah bar owners to consider peal and decide to hire an attorney. Konsler said Bliss has told the a legal challenge to the smoking ban. (CJ photo by Rick Henderson) Still, owner Sebastian Gomez said the county he’s not going to comply. The nesses that sell alcohol, and alcohol prohibited, and by failing to direct in- ideal solution is for the industry to ob- result, Konsler said, is that the penalty accounts for between 20 percent and dividuals to stop smoking. tain an exemption from the General grows by $200 every day Bliss is open 25 percent of the store’s revenues. Bliss Hookahs consist of tobacco Assembly. until he notifies Orange officials that says he could try to sell more exotic mixed with molasses, glycerin, and fla- Tobacco shops, cigar bars, guest he is operating in accord with the law. teas or other nonal- vorings, which go rooms in lodging establishments des- “We can safely assume based coholic beverages, into a clay bowl. ignated as smoking rooms, nonprofit on that, that every day he’s open, that but those sales are “You don’t actual- private clubs, and performers acting there’s a violation occurring,” Konsler unlikely to com- Lounge owner ly burn the tobac- in TV, film, and theatrical productions said. “The attorney general’s office has pensate for the lost co to smoke a hoo- already are exempt. given guidance to counties that, rather beer sales. Bliss maintains that kah,” Bliss told Bliss is considering teaming than doing daily inspections and go- either invested or Carolina Journal in up with Gomez and Best. “I may just ing in every day, that the onus is on the still owes about tobacco is not January. “It’s de- say to hell with it here and just go and owner to notify the health director that $70,000 for the a lighted product signed as a giant chip in on their lawyer and we can all he’s come into compliance and to al- business. vaporizer, so the chip in together,” Bliss said. “You kind low for us to do a follow-up inspection The ticket he in a hookah heat from the top of hope that once you get one county to see that he’s in compliance.” received says he and the fact that taken care of, the other counties will Bliss says he’s fighting the ban has failed to com- the clay bowl also fall into line.” because hookahs aren’t a lighted to- ply with the ban heats up volatizes Konsler said Hookah Bliss is the bacco product and the law doesn’t ap- in two ways: by allowing smoking in the molasses and glycerin and flavor- only Orange County business so far to ply. The law prohibits smoking in busi- an enclosed area in which smoking is ings without burning the tobacco.” be fined for violating the state’s ban. CJ

Books authored By JLF staFFers Efficiency and Externalities Visit our Triangle regional page in an Open-Ended Universe http://triangle.johnlocke.org The John Locke Foundation has five regional Web sites span- ning the state from the mountains to the sea.

The Triangle regional page in- By Roy Cordato cludes news, policy reports and Vice President for Research John Locke Foundation research of interest to people in the Research Triangle area. “Cordato’s book is a solid performance, demonstrating It also features the blog Right impressive mastery of both Angles, featuring commentary the Austrian and neoclassical on issues confronting Triangle literature.” Israel Kirzner residents. Cato Journal

www.mises.org The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 6 APRIL 2010 | CAROLINA JOURNAL WEashiducationgtonn U.S. Census forms How Much Information Do You Have to Give the Census? By Karen Welsh online,” she said. “You need to fill out Contributor the form by the mid-April deadline, RALEIGH but the sooner you get it in, the better. hen Rockingham County We urge people to fill it out and send it resident Eric Smith found the back immediately; otherwise a census 2010 U.S. Census waiting for taker will come to your home.” Whim in the mailbox, he immediately went in the house and filled it out. Verifying census takers’ ID However, this North Carolinian She said it is important to note — one of more than 4 million in the that census takers will not start mak- state to receive the government form ing their door-to-door rounds or phone — answered only one of the 10 ques- calls until the beginning of May. Each tions on the form before returning it. census taker will have an official I.D. “I’m gladly doing my part, but I badge from the U.S. Census Bureau am a strict constitutionalist,” he said. and the U.S. Department of Commerce. “The only question I filled out is how Welborn said residents can verify a many people live in my household. census taker’s identification by calling That’s the only one I’m constitutional- the local office of the Census Bureau. ly required to answer. The other ques- Gov. Beverly Purdue’s Census tions invade my privacy. They don’t liaison Bob Coats said the 2010 U.S. need to know the names of my family Census is vital to the balance of power members, our date of birth, our gender in Washington, D.C., as it determines or race. None of the rest is any of their how much of the $470 billion in federal business. That’s how I feel.” spending is parceled out to states for He’s not alone. services. U.S. Rep. Michelle Bachmann, R- “The census helps the govern- Minn., refused to fill out her own form ment plan for roads, community hos- because she felt the U.S. Census has pitals, and job training and community been used to earmark minority groups development grants,” he said. “That’s for special reasons, including informa- Those in the know say you must fill out the U.S. Census form accurately and com- important for North Carolina because tion that led to the Japanese intern- pletely. (CJ photo by Jon Ham) we continue to grow rapidly, and the ment during World War II. census is a foundation for funding for- Several conservative and His- United States Code states that govern- quality control and to get the most ac- mulas. The impact will be felt for the panic advocacy groups have urged ment officials cannot make available to curate population count possible in next 10 years.” members to refuse to complete their the public any data that can be used to this country.” Welborn warned that all U.S. forms, or have called for an all-out identify specific individuals. “The data Census spokeswoman Welborn residents should be on the lookout for boycott of the count, citing privacy can only be used for statistical purpos- said the questionnaire must be filled phishing scams during the census year. and confidentiality issues as a reason es,” he said. out correctly and then mailed back in “We do not ask for financial informa- to object. Sunshine Hillygus, associate the pre-addressed, postage-paid enve- tion in the 2010 Census,” she said. “It Some groups have started a professor of political science at Duke lope provided. In addition to the $100 should be a tip-off that it is a scam if campaign urging residents to answer University and co-author of The Hard fine for noncompliance, there’s a $500 a person asks for your Social Security “American” in the line indicating race. Count: The Political and Social Challenges fine for willfully providing false infor- or [bank] account numbers. We never Such concerns aren’t new. But of Census Mobilization, said these con- mation, although the law is rarely en- individuals who try to duck the cen- cerns have surrounded the U.S. Cen- forced. ask for these things, and you should sus — or willfully provide inaccu- sus, from the first taken in 1790 until “The form cannot be filled out never give them out.” CJ rate information — could be in legal the present. jeopardy, according to Census Bureau “Some people think the census spokeswoman B.J. Welborn. has no right to ask for additional infor- “Every household is required to mation,” she said. “They feel it is too answer all 10 questions, according to intrusive.” Title 13 of the U.S. Code,” she said. Hillygus said some people may “Those who turn in incomplete forms be afraid to complete the form, such as will either get a follow-up by a U.S. illegal immigrants, those who haven’t census taker or a phone call.” paid their taxes, or those who have committed crimes. Still, she said the Fines for incomplete forms U.S. Census Bureau maintains a level of confidentiality that is higher than Hans von Spakovsky, senior le- any other branch or form of govern- gal fellow at the Heritage Foundation ment. in Washington, D.C., agrees that every She said the worst thing a person question must be answered. “The case can do is boycott the census complete- law says you can be fined $100 per ly. question for not giving an answer,” he “Endorsing a boycott of the cen- said. “No citizen has successfully de- sus is illegal, and I think one of the fended a case in which they claimed unfortunate things is people feel they that particular questions were too in- have the right not to fill out the census trusive and beyond the authority of form,” Hillygus said. “It’s irrespon- Congress to authorize.” sible to call on people to not fill out the Individuals do not, however, census because it’s in nobody’s best have to allow a census taker into their interest to not have an accurate census homes, he said. count. I think that you see support- Although von Spakovsky said ers on both sides of the aisle that have there is an “obsession with race” on expressed the need to get an accurate the 2010 U.S Census Form, he said the count. Everyone needs to fill it out for APRIL 2010 | CAROLINA JOURNAL PAGE 7 Education Charter Schools, Local Boards COMMENTARY Spar Over Education Funding Ideas Have Consequences By Lee Raynor the 2009-10 payment. Contributor Hall contends that the Sugar erald Grant’s book, Hope and elections, or legislative processes. RALEIGH Creek ruling is unclear on how many Despair in the American City: More important, state education harter school administrators previous years the back payments Why There are No Bad Schools agencies and local administrators say the state is offering little to should cover. Kinston Charter Acade- Gin Raleigh, is important insofar as it have no trouble accepting greater no assistance in helping them my was established in 2004, and that’s attempted to justify, perhaps even power because they often see them- Creceive money owed to them by local the date Hall used to determine the celebrate, forced busing in the Wake selves as enlightened, moral agents school boards. amount his school is owed. He cites a County Public School System. It is of “progressive” social change. Ozie Hall, principal at Kinston court ruling in Williams v. Blue Cross, worth considering the ideas behind Unlike their colleagues in the Charter Academy, says the Lenoir in which the court said a continuing Grant’s book that generate so much central office, most experienced County Board of Education might owe wrong act continues until the conduct enthusiasm from the pro-busing teachers often do not consider his school more than $800,000. Simon stops. crowd and how those ideas em- themselves social crusaders. Teach- Johnson, at Quality Education Schools However, Hall is in negotia- power advocacy groups and bu- ers know that placing a rich kid in Winston-Salem, and Don McQueen, tions with the Lenoir County school reaucrats at the expense of teachers next to a poor kid does not trans- at Raleigh’s Torch- board, and has said and parents. form a struggling student into a light Academy, don’t he would settle the Grant is a disciple of James successful one. It takes knowledge- know how much dispute for $253,000. Coleman, author of the able and skilled instruc- they’re owed. Ad- If the two parties can- 1966 government report tors. Yet, proponents of ministrators say not reach an agree- “Equality of Educational forced busing often insist they can’t get school ment soon, Hall Opportunity” (later called that it is less important boards to tell them promises to file suit the Coleman Report), one for teachers to master how the amounts be- against the board. of the most significant content, instruction, ing paid to them are “It’s a sig- education studies of the and classroom manage- calculated. nificant amount of 20th century. ment than serve as their And the state money,” he said. “It Coleman concluded students’ social worker, appears unwilling “to severely impairs us. that the socioeconomic therapist, role model, and get in the middle” of We could have two status and family back- TERRY de facto parent. the dispute, both Mc- or three more teach- ground of students were STOOPS Proponents of forced Queen and Johnson said. ers, new school buses, make repairs to greater determinants of busing acknowledge that Charter schools won a major fi- buildings, if we had the money.” educational outcomes parents of low-perform- nancial battle in February 2009. The Johnson’s school initially had than school factors like ing students share some N.C. Court of Appeals agreed with trouble collecting forfeiture and fine per pupil spending. of the blame. Yet they believe that a lower court’s decision that school money local and district courts send to Researchers have discredited properly engineered schools can boards must share local per-pupil school districts. thoroughly the statistical methods transcend the problems low-income funds with charter schools. The ap- “We fought for three years. I have and theoretical assumptions used students encounter at home. Gerald peals court ordered the Charlotte- no way of knowing if the amount we’re by Coleman and his colleagues. Grant explains: “Through this Mecklenburg Board of Education to getting is accurate,” he said. “We just However, Coleman’s fundamen- network of friends, less privileged pay Sugar Creek Charter School $1.3 get a check.” The uncertainty makes tal idea endures — educational students would get to know parents million in back payments. annual budgeting difficult, he added. improvement requires more atten- who might help them get a job or The Court of Appeals reasoned Although charter school ad- tion to social dynamics and less gain admission to college or simply that providing equal funding to char- ministrators want help from the state attention to institutional reform. serve as role models. ter school students and regular public Charter Schools Office, Paul LeSieur, Activist professors and opportu- “Schools with a majority of school students was required under director of school business service for nistic politicians quickly developed middle-class parents will not toler- the legislation authorizing charter the state, says the office is limited in its forced busing schemes based on ate incompetent teachers, or drink- schools. The state Supreme Court up- ability to help. race, class, and other nonacademic, ing fountains that don’t work, or held the ruling. The office is responsible for vis- sociological factors. restrooms with no toilet paper.” “When the court decision was iting schools, overseeing applications For advocacy organizations Should one assume that par- made, we received no notice from the for potential new charter schools, and and special-interest groups, forced ents of less privileged students are state,” McQueen said. “We received no help with governance issues, such as busing is a moral cause. The North not interested in their child’s edu- indication the state would be coordi- operations and setting up a board of Carolina chapter of the NAACP cational or occupational prospects nating efforts to make sure we would directors. recently called the Wake County and tolerate incompetent teachers, receive funds as the court decided.” “We can’t force LEAs [local edu- school board decision to end forced broken drinking fountains, and Charter schools generally are cation agencies/school boards] to do busing “an educational, social, and restrooms with no toilet paper? smaller than many schools overseen anything,” LeSieur said. “We cannot moral crisis for our community.” I sincerely hope not. Yet, if low- by local school boards. Kinston Char- get involved in telling them what dol- This is not hyperbole. Rather, it income parents are not engaged in ter Academy has 350 students enrolled lars they need to give charter schools.” is based on the idea that public their child’s education, perhaps de- this year. Torchlight Academy has 417. Johnson said the Forsyth Coun- schools’ first responsibility is to pendency on middle-class parents Quality Education has 268 youngsters. ty Board of Education has never told ameliorate perceived social injus- is partly to blame. Johnson and McQueen have re- him how it will determine the amount tices by engineering (busing) them Our public schools need to ceived some funds from their respec- of money owed to Quality Education out of the system. empower parents to make edu- tive school boards, but cite a lack of Schools. What is most disconcerting cational decisions that are in the information about how the sums were “I have a feeling we’re being un- about the sociological approach to best interest of children. Tuition reached or the actual amounts owed. A derpaid,” he said. “I’ve talked with the educational reform is that it grants, tax credits and charter schools, not Feb. 10 memo from the Wake County state and haven’t gotten any help from even encourages, state and local forced busing, will improve the Public School System to Torchlight them, either.” bureaucracies to make sweeping plight of low-income students in Academy states, “This payment meets Hall asked the state Attorney policy decisions with little account- Wake County and beyond. CJ ability. the requirements established in the General’s office to intervene. He was Centralizing power thus be- Terry Stoops is director of educa- ruling and includes amounts for the told the office has no legal authority comes a sensible way to hasten the tion studies at the John Locke Founda- fiscal years of 2006-07, 2007-08, and to become involved, even though he is pace of change and bypass politics, tion. 2008-09.” A check for $95,145.89 was attempting to collect money the courts included. McQueen is still waiting for say his school is due. CJ PAGE 8 APRIL 2010 | CAROLINA JOURNAL Education Treasurer Insists New Fund Won’t Put Teacher Pensions at Risk

By Sarah Okeson Credit Suisse already manages Contributor two private equity funds for North RALEIGH Carolina that have invested $500 mil- tate Treasurer Janet Cowell said lion from the state. Credit Suisse also she expects a new $232 million has acted as the placement agent for pension investment that will tar- several investments North Carolina Sget businesses with “significant nexus” has made with other firms. with North Carolina to outperform a The State Employees Association stock index fund. of North Carolina, whose retired mem- Cowell told Carolina Journal that bers receive benefits from the pension she wants the Innovation Fund, which fund, also has been skeptical of the In- will be managed by Credit Suisse, to novation Fund. earn in the ballpark of 10 percent over Lobbyist Ardis Watkins has said five to 10 years. The money will be in- the treasurer’s goal should be to deliv- vested over the next three to five years. er the highest returns possible. At a March 15 press conference in Dur- Cowell plans to meet with leg- ham, Cowell said the fund would tar- islators April 6 to answer questions get high-growth industries and could about the Innovation Fund. The trea- invest in startup companies. ment,” said Michael Weisel, an attor- Rep. Bill McGee, R-Forsyth. “I accept surer’s office will also tour the state in The overall annual goal for the ney and previous candidate for state that they vetted this to the extent that late April and May to tell people about state Teachers’ and State Employees’ treasurer. “This did not happen in it should be vetted in making this deci- the Innovation Fund and inform them Retirement System is 7.25 percent, but North Carolina. One might conclude sion.” of opportunities to receive financing the retirement system has met that goal there was deliberate action to sidestep Rep. Deborah Ross, D-Raleigh, from the fund, along with additional in only seven of the last 12 fiscal years. the debate about economically targeted said she didn’t want to second-guess loan programs available to small busi- “We are looking for a market rate investments by rushing a Request for an RFP process. nesses and start-up firms. of return,” Cowell said. “We are only Proposal (RFP) through at year-end.” “I have no reason to believe that Cowell could put up to $160 mil- going to invest in companies that will Public pension funds in North the RFP process was not followed lion of the fund in equity and hybrid in- get us that rate of return.” Carolina and other states have been properly,” she said. vestments. Another $60 million could Cowell wants the Innovation criticized for chas- But Weisel be directed into between four and six Fund to perform 2.5 percentage points ing higher returns said the timing funds — at least four from North Caro- higher than the Russell 3000 index, with risky invest- lina. The fund could also invest in pub- which measures the performance of and requirements ments while pri- Some critics lic/private ventures in areas such as 3,000 publicly held U.S. companies. of the RFP “ap- vate pension funds green technology and life sciences. Edward Siedle, a former attorney feel the new fund pear to favor” the have been putting with the U.S. Securities and Exchange fund manager “The way we have set up this their money into Commission, said actively managed wouldn’t bring model of Credit fund incorporates all the best practic- more conservative funds generally underperform in- Suisse’s Custom- es,” Cowell said. investments like the highest dexed portfolios. ized Fund Invest- She acknowledged that invest- bonds. “The probability that an actively returns ment Group. ments in areas such as technology and But Cowell managed fund will exceed a passive “ C o n s e - green jobs can be risky, but said she said North Caroli- index is miniscule unless the bench- quently, there plans to be careful. na’s pension fund mark is inappropriate and you’re tak- is little surprise “Every investment I make I have always has been conservative. TSERS ing on greater risk,” said Siedle, now about the choice of CFIG to manage to be concerned that this is the track the president of Benchmark Financial has about 41 percent of its invest- the Innovation Fund given the param- record of my administration,” Cow- Services in Ocean Ridge, Fla. ments in stocks and about 47 percent eters of the RFP,” Weisel said. ell said. CJ He also questioned why Cow- in bonds. ell is using the Russell 3000 index as “Corporate funds are moving to- a benchmark if the Innovation Fund ward our model,” she said. isn’t investing exclusively in Russell Cowell chose Credit Suisse after Books authored By JLF staFFers 3000 securities. receiving proposals from eight firms. “It’s comparing apples to orang- The Swiss financial services company Efficiency and Externalities es,” Siedle said. runs similar programs in six states, in- The Innovation Fund is consid- cluding New York, Michigan, and In- in an Open-Ended Universe ered “economically targeted invest- diana. ments” — investments that, in addi- Cowell said a committee consist- tion to seeking high returns, pursue ing of an employee from the treasur- social goals, such as investing in local er’s office; a representative from Ennis, businesses or specific sectors of the Knupp & Associates, which is review- economy. ETIs have had a mixed track ing how North Carolina has spent its record in other states. Kansas repealed money; and a representative from a requirement that the state make ETIs Strategic Investment Solutions, North after the pension fund lost money in Carolina’s private equity adviser, re- By Roy Cordato viewed the proposals. Vice President for Research a steel mill and a savings and loan. John Locke Foundation The Connecticut Retirement and Trust The committee picked three final- Funds lost $20 million after buying a ists, and Cowell met with people from “Cordato’s book is a solid large part of a firearms company that the three firms before picking Credit performance, demonstrating subsequently went bankrupt. Suisse. The other finalists were Ham- impressive mastery of both A 1994 study found that funds ilton Lane of Philadelphia and Black- the Austrian and neoclassical with ETIs had returns 2.1 percent low- Rock, headquartered in New York. literature.” er than funds without ETIs. North Carolina lawmakers said Israel Kirzner “Many of the states implement- they think Credit Suisse was a good Cato Journal ing these investments passed specific choice. legislation authorizing such an invest- “They’re credible people,” said www.mises.org APRIL 2010 | CAROLINA JOURNAL PAGE 9 Education North Carolina Advances to ‘Sweet 16’ Despite Cap on Charters By Jim Stegall “While certain states are stand- Contributor outs in education reform, especially RALEIGH with respect to their support for high- efying the predictions of ex- quality charter schools, others have perts, North Carolina remains been less willing to truly embrace in the running for up to $400 systemic reform,” said Smith. “We millionD in federal grant money from will continue to watch as this process the Obama administration’s “Race to unfolds and urge the Department of the Top” education reform program. Education to ultimately select only Along with 14 other states and the Dis- those states committed to education trict of Columbia, North Carolina was reform that includes charter schools as selected from among 41 applicants to a building block.” advance to a final round in the high- stakes competition, the outcome of Education innovators? which should be known in April. Closer to home, North Carolina Race to the Top is the adminis- education consultant Steve Peha was tration’s signature education reform as surprised as anyone to see that initiative. The plan is to use $4 billion North Carolina had made the “Sweet in federal stimulus funds over the next 16” of Race to the Top finalists. “When two years to reward states that adopt you look at state reform, across the 50 administration-backed reforms, such states, North Carolina is not in the top as linking student test scores with tier. We still have some very, very seri- teacher evaluations, adopting national ous issues that have not been attended curriculum standards, and fostering to for a very long period of time,” he high-quality charter schools. said. In announcing the finalists on On March 16, Perdue led a del- March 4, Secretary of Education Arne strictive caps on the number of charter those schools receive extra help from egation presenting North Carolina’s Duncan warned that fewer than half schools made the cut, as did one state the state. case to Duncan and Race to the Top of the remaining applicants could ex- (Kentucky) with no charter school law Duncan was asked about the ap- reviewers at the Department of Edu- pect to win any money. “We are setting at all. parent discrepancy regarding states cation’s headquarters in Washington. a high bar, and we anticipate very few with poor charter school laws in a The presentation was closed to the winners,” he said. “But this isn’t just Different rules for charters March 4 conference call with national public, and none of those involved about the money. It’s about collabora- North Carolina law caps the education reporters. “We said from have commented publicly on it, but the tion among all stakeholders, building number of charter schools at 100, a lim- day one that there were many, many Public School Forum, a Raleigh-based a shared agenda, and challenging our- it that was reached years ago and has factors,” he said. “Charters were never education think tank, published in its selves to improve the way our students not been revised to allow for growth. going to be the determining factor.” March 19 Friday Report a set of Power learn.” The state Board of Education recently Gov. Beverly Perdue may have Point slides purportedly used by the North Carolina was seen as a has adopted policies that some charter had a hand in weakening the depart- dark-horse candidate to make it this North Carolina team. school advocates view as punitive, led ment’s stand regarding charter schools far, but it was not the only state among The slides seem to indicate that by its February decision to close char- before the Race to the finalists to raise eyebrows. The Race Perdue’s team ter schools that fail to meet growth the Top competi- to the Top scoring rubric published by focused on the and performance targets in two of any tion officially be- the Department of Education seems to state’s innovative three consecutive years. gan. Perdue wrote favor states that encourage the growth use of technology Regular public schools that fail Before the of high-quality charter schools. Even and data to drive to meet the same requirements do not department final- Duncan in advance so, several states that have imposed re- decision making, face a similar threat of closure; in fact, ized its scoring to protest the the high level of rubric last fall, she collaboration with wrote Duncan to emphasis placed all stakeholders protest “the em- in the system, and phasis placed on on charter schools efforts to improve Visit our Triad regional page charter schools as teacher and ad- the major tool of ministrator effec- http://triad.johnlocke.org innovation.” tiveness, all factors which earned the The department’s language on state points on the department’s scor- The John Locke Foundation charter schools did not change af- ing rubric. ter Perdue sent the letter, but the fi- has five regional Web sites span- It is not known whether depart- nal rules for the competition allowed ment officials questioned the North ning the state from the mountains states to claim credit for having “in- Carolina delegation about the state’s to the sea. novative public schools other than charter school laws or policies, but a charter schools.” North Carolina’s ap- videotape of the presentation is due The Triad regional page includes plication touted the state’s early col- to be posted on the department’s Web news, policy reports and re- lege high schools and online “virtual site when winners of the grants are an- search of interest to people in schools” as examples of public schools nounced in early April. the Greensboro, Winston-Slem, that qualified as “innovative.” The department says Duncan Nelson Smith, president and will have the last say on which of the High Point area. CEO of the Washington-based Nation- 16 finalists will receive funding. The al Alliance for Public Charter Schools, front-runners seem to be Florida, Mas- It also features the blog Pied- lauded the inclusion of several pro- sachusetts, Tennessee, and Louisiana, mont Publius, featuring com- charter states among the finalists but while Colorado and the District of mentary on issues confronting expressed concern over the selection Columbia are also strong contenders. Triad residents. of North Carolina and three other New York and South Carolina would states that maintain restrictive charter appear to have the weakest applica- school caps, along with non-charter tions, with North Carolina and the rest The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 Kentucky. all on the bubble. CJ PAGE 10 APRIL 2010 | CAROLINA JOURNAL Interview Novak: Decline of Faith Leading to Disintegration of Society

By CJ Staff RALEIGH “[I]f people don’t have really good habits of tak- e learn in school about the separation of church and ing responsibility for their actions, thinking about state. We’re told it’s an idea the consequences, taking responsibility for their Wthe Founders embraced as they devel- oped the early structures of American own destiny, if they can’t do that, how can they government. Philosopher, theologian, and author Michael Novak tells a dif- practice self-government?” ferent story. An American Enterprise Institute scholar in religion, philoso- Michael Novak phy, and public policy, Novak dis- Scholar cussed the Founders’ religious beliefs American Enterprise Institute with Mitch Kokai for Carolina Journal Radio. (Go to http://www.carolina- journal.com/cjradio/ to find a station near you or to learn about the weekly CJ Radio podcast.) to steal, not to seize things — because mass market it or manufacture it. But Kokai: Why did the Founders he said, “How can we ask the help of on the other hand, if you bring pub- Kokai: Why speak on the topic think religion was so important? the Providence of God if we don’t obey lic institutions into its support in the “Presidents and Providence”? his law?” What kind of disconnect is background, it makes it much easier. Novak: You cannot have a repub- that? We say “God bless America.” Re- People have to swim against the tide. Novak: For the last 100 years, lic, a special form of government, with- member how we sang it on September Look at Hollywood. How often have most historians have not been very out liberty. And you cannot have lib- 11? Well, how can we expect Him to you seen a movie which shows a fam- interested in religion. If you go back erty without virtue. That is, if people bless us if we are in wide disregard, in- ily with somebody with cancer or before that, … everybody agreed about don’t have really good habits of taking dividual by individual? in an auto crash and shows them in these matters. But they’re almost for- responsibility for their actions, think- That’s the way that generation prayer? And shows them asking other gotten. Today the ACLU and others put ing about the consequences, taking of the Founders argued it, and they people to pray for them? And shows all their attention on the least religious responsibility for their own destiny, if had to because they’re making war the people who come to church spe- of the Founders, especially Thomas they can’t do that, how can they prac- on Great Britain, an irrational thing to cifically to pray for them and so forth? Jefferson, who’s really an outlier. But tice self-government? do, the greatest army in the world, the That’s a reality of American if you take the top 100 Founders, that greatest navy in the world. We don’t life, but you don’t … if anybody is, those who signed the Declaration Kokai: What about Thomas Jef- have an army. We don’t have a navy. around the world watches Ameri- or the Constitution, and throw in Abi- ferson’s famous statement about the We didn’t even have a munitions fac- can television, they’ll never believe gail Adams and Thomas Paine and wall of separation between church and tory on this side of the ocean. So they we’re a religious people. The audi- other most important people, 100, 120, state? What should we make of that? … [depended] on Divine Providence ence who watched the Super Bowl whatever, about that number, and ask and the help of Divine Providence. ... was the largest in television history, what was their view of God and of reli- Novak: What was the largest about 100 million people, I think. gion, you will find that they cannot be church service in the United States Kokai: What do we need to do More people went to church that characterized as deists. A deist means during the Jefferson administration? if we want to emulate the Founders in weekend than watched that game. And a God who maybe got the world mov- It was held in the U.S. Capitol build- their treatment of religion? in fact during the year, more people go ing, maybe the intelligence and maybe ing, with Jefferson’s permission and to church than watch all the high school the energy, but he doesn’t care any- endorsement. In fact, he used govern- Novak: Well, it’s a matter of games, all the college games, and all thing for human beings or nations. ment funds to pay for the Marine band citizen by citizen, individual by indi- the pro games on television combined. to provide the music for the ceremony. vidual. The faith of Americans is free So there’s nothing the American peo- Kokai: So you’re saying that the Now, where was the ACLU when we and in conscience. You can’t force ple do more than pray — fulfill their Founders could not have been deists needed them? Are they going to take it. You can’t mechanize it. You can’t public duty to God. CJ based on the type of god they dis- Jefferson to court on this? My point is cussed in their speeches and writing? that we should be wary, as John Adams was wary, that when you begin a sys- Novak: This is a special kind of tematic attack on removing God from Visit the new-look God. He pays attention to what hap- the moral lives of the people, there pens in conscience and in spirit, not are some people it won’t bother. You Carolina Journal Online just what you do physically. It doesn’t know, you can be good without God, matter if you kneel down or bow your but a lot of people can’t. Or at least head. He looks into your heart. Now, they don’t. They won’t. And so John there are not many world religions that Adams said we know from our own do that. Hinduism? No. Buddhism? experience, look what has happened No. Muslims say they do, but I don’t as the faith of our fathers has cooled. believe it. And they do it within certain What do we see? We see rising public restrictions. But it is the very meaning drunkenness, rising disrespect for the of a Jewish and Christian God, said law, rising adultery, and other things. from the very first words of scripture. And that’s the road to slavery. Adam and Eve are given a test of their You take a nation of people free will. … Every chapter in the Bible that cannot control its own appetites, is a story of human freedom. King Da- you’re asking for a nation that wants vid is faithful to his Lord in one chap- to be governed by a tyrant. And so, ter, unfaithful to him in another chap- … I don’t want to make the argument ter. What’s he going to do next? And that we need God, that he’s necessary, that’s the suspense of the Bible. There’s because that makes God into a means no doubt reading the Bible that the of our purposes. The way Washington axis of history in God’s eyes is what put it is that he begged his men in the humans do in their own heart and will. army to comport themselves as Chris- With links to the new CJTV and CJ Radio Web sites And nothing else matters so much. So tian soldiers and to treat all the people it’s the God of liberty. with great respect — not to swear, not http://carolinajournal.com APRIL 2010 | CAROLINA JOURNAL PAGE 11 Higher Education

State Colleges and Universities COMMENTARY Push For Greater Independence Airy Rhetoric vs.

By David Koon In contrast, the North Carolina legisla- Contributor ture caps the percentage of out-of-state Gritty Reality RALEIGH students at 18 percent on each campus. n the evening of Feb. 26, I more and more people through col- ith North Carolina’s tax reve- Another university affected by was one of four debaters lege would exacerbate the problem nues falling, it may be useful the 2001-02 recession was the Universi- on a PBS program at the of credential inflation, i.e., employ- to look at a trend in higher ty of Michigan at Ann Arbor. Over the NationalO Press Club in Washington, ers insisting that applicants have educationW that started with the eco- past 50 years, state support dropped D.C. The question was: Does the college credentials for jobs that nomic downturn of 2001-02. As state from 78 percent of the university’s total United States need more college don’t require any academic training. appropriations to public universities revenue to 23 percent, and recent eco- graduates to remain a world eco- Credential inflation already shuts declined, some universities pushed nomic woes in the state led to signifi- nomic power? people who don’t have college for greater independence, especially cant declines in state appropriations. Former Secretary of Education degrees out from competing for jobs freedom to raise tuition. This process Today, the university receives $327 Margaret Spellings and Dr. Michael they could do. — sometimes called “privatization” — million from the state — less than it Lomax, president of the United Ne- And what did the affirmative may well resume. received in 2002, in inflation-adjusted gro College Fund, argued in favor say to rebut our arguments and The changes occurred against the terms. of the proposition. Ohio University shore up their case? backdrop of a long-term trend. Nation- Even so, Michigan is considered economics professor Rich- Nothing. ally, state support one of the top pub- ard Vedder and I argued They repeated their has become a smaller lic universities in the against. statements and tried portion of the rev- nation. One reason The debate was spir- to shift the debate onto enues of public uni- is that Michigan has ited. But it boiled down to other grounds. But neither versities, especially no preset limits on a contest between the airy speaker attempted to flagship colleges. In the number of out- rhetoric of the affirmative refute our arguments. 1991, state and local of-state students it side and the reality-based Spellings maintained appropriations rep- accepts, and approxi- arguments of the negative. that the problem with resented 72 percent mately 34 percent In their opening American higher educa- of public universities’ total revenues; of its students come from outside the statements, the affirma- tion is that (I’m para- in 2008, that number had fallen to 64 state. tive debaters made such GEORGE phrasing, but this is very percent. Other schools, too, pushed for contentions as: LEEF close): We are very good That doesn’t mean that actual more control over their affairs after the • College educa- at educating wealthy appropriations are appreciably lower, 2001-02 recession. Several public uni- tion is beneficial because white students, but not even in real terms per full-time student. versities in Florida, Texas, and North it opens up opportunities for people very good at educating minority They fluctuate, but real appropriations Dakota obtained freedom to set differ- and can break long chains of pov- students. in 2008 were similar to what they were ential tuition. erty. That’s tangential to the topic; in 1983. Rather, tuition, federal grants, Not all schools have had a favor- and private gifts have increased dis- able experience with tuition flexibil- • College education raises if the economy needs more college proportionately. ity. In 2004, administrators at Miami people’s incomes substantially; graduates, why should their family One dramatic change in the re- University of Ohio decided to charge graduates on average earn almost backgrounds matter? Here’s why I lationship between universities and resident and nonresident students the $1 million more over their working think that statement is untrue. the state occurred in Virginia. After a same tuition. The idea was to raise careers than do nongraduates. American colleges and univer- long legislative debate that ended in in-state tuition, but then grant merit Vedder and I took issue with sities are delighted to have minority 2005, all of Virginia’s public colleges and need-based scholarships to in- these and other claims, using facts students. They’re usually specially gained freedoms such as the ability to state students — starting with a $5,000 to back up our points. recruited and often given favorable purchase and dispose of property and discount for all in-staters. The school First, we showed that a college treatment by the administration and issue bonds without state approval. would receive more tuition than previ- degree may not open up good op- professors. Some minority students The biggest prize in the legisla- ously from most in-state students, but portunities for individuals, because work hard, perform very well, and tive battle was freedom to set tuition, would be able to bargain with students degrees are now so common that graduate with honors. So why is it within limits. Unlike many state ap- the school particularly wanted. having one is no distinction. that graduation rates for minority propriations, tuition is cash that comes But the number of in-state ap- Second, we argued that since students tend to be low? Is it be- without strings attached. A mere $200 plicants and students dropped. The we already have a surplus of col- cause schools haven’t learned how increase in tuition at a campus with school discarded the plan four years lege graduates in the labor force, to teach them? I don’t think so. The 25,000 students brings in $5 million later. expanding higher education further explanation is that on the whole, that can be used for nearly any pur- On a smaller scale, some colleges only would divert resources from those students enter college with far pose. in Maryland and Massachusetts have more beneficial uses. lower basic academic skills (which The University of Virginia, Vir- received sweeping freedoms. Mary- Third, we showed that col- can seldom be overcome just with ginia Tech, the College of William and land’s St. Mary’s College obtained that lege may not enhance a student’s a remedial course or two) and less Mary, and Virginia Commonwealth freedom in 1992, setting an example human capital because academic academic engagement. University won the most autonomy. for the Massachusetts College of Art standards (at many schools, at least) Eventually, one point of And they have another valuable free- and Design, which won the ability to are so low that students can gradu- agreement emerged, that our K-12 dom. They can bring in many out-of- set tuition, enrollment goals, and ad- ate without improving on the poor education system largely is ineffec- state students, who pay higher tuition missions standards in 2004. skills they had in high school. tive, particularly for poorer families. ($31,870 at UVa, compared with $9,870 While privatization is not a mod- Fourth, we demonstrated that Vedder and I say that we ought to for in-staters). el for every school, it can lead univer- the “college earnings premium” ar- try to fix K-12 first. Unless we can The value of these students is not sities to shed heavy government re- gument is fallacious because what’s do that, trying to put more people just the money that they pay. By draw- straints, reduce costs, and perhaps win true on average is not necessarily through college will be costly and ing students from the entire country, a more revenues. CJ true at the margin. Many college futile. CJ university can create a more selective graduates today end up working as student body, increasing its national David J. Koon, formerly a research theater ushers or bartenders. They reputation. About 38 percent of the associate with the John W. Pope Center for don’t get paid more for having a George Leef is director of research students at UVa are from out-of-state, Higher Education Policy, is now campaign college diploma on the wall. at the John W. Pope Center for Higher with figures for other leading Virginia director for a candidate for the North Caro- Finally, we argued that putting Education Policy (popecenter.org). schools ranging from 29 to 37 percent. lina Senate. PAGE 12 APRIL 2010 | CAROLINA JOURNAL Higher Education

Campus Briefs

Journalist and former George W. Bush speechwriter David Frum spoke about “A Modern Conserva- tism” at North Carolina State Uni- versity on March 8, as part of the John W. Pope Lecture Series. The series is hosted by N.C. State’s College of Humanities and Social Sciences and College of Management to encourage dia- logue on topics of political and economic interest. Andrew Tay- lor, professor of political science, co-administers the lecture series and selected Frum because he has “thought a lot about the future of the conservative movement, and this is an important topic in the aftermath of 2008.” In addition, Frum is “clearly on the political science side” of the equation; the

economics department chose last Source: National Center for Education Statistics year’s Pope lecturer — economist William Easterly. A small group of NCSU stu- dents attempted to disrupt the Feds Dominate University Research Funding event with a protest against the Pope Foundation, which spon- By Jenna Ashley Robinson the scientist starts out. sored the lecture. But the audience and John Eick Furthermore, federal funds largely have crowded out was unreceptive. Contributors other funding sources for research. Sommer says that in the Not everyone among the RALEIGH mid-1930s, when the “entire research budget of all American more than 300 attendees was hap- he federal government spent more than $69.7 billion universities totaled $51 million,” federal grants represented py with Frum’s pragmatic vision on higher education in fiscal year 2007. To put this 10 percent of the total. In 2008, federal funds represented of conservatism. Frum labeled the number into perspective, the total operating budget about 60 percent, out of a total of $51.9 billion. Tea Party movement as merely a Tof NASA that year was a considerably more modest $16.7 John Staddon, a Duke University professor of psychol- passing fad mostly made up of billion. ogy, largely agrees with this diagnosis. extremists, and advocated several Nearly half the amount — $32.2 billion — went to “The main problem with federal support,” he says, “is policies that most conservatives universities for research and development. As we shall see, that it is basically a monopoly … hence, it both favors some and libertarians find distasteful. some of this money goes to projects of questionable merit. areas over others and restricts variety even within those ar- These included taxes on un- Our investigation is part of a larger effort to provide trans- eas.” healthy foods, a tax on carbon, and parency in higher education finances. In a book review on the Pope Center site, Staddon a pared-down version of health To be sure, federal spending is only a part of total gov- pointed out that federal grant seeking conflicts with a uni- care reform. One audience member even questioned whether Frum’s ernment spending on higher education — state and local versity’s primary mission: undergraduate education. In to- suggestions were “socialism-lite.” governments spent over $85 billion on operating expenses day’s world, professors at major research universities must A strong foreign policy seemed to alone in 2008. But the federal government’s investments in- get one or more external grants. To do so, they must lighten be the only topic on which Frum fluence the direction of higher education at both public and their teaching loads. “Thus, the course load of tenured fac- echoed contemporary conserva- private universities. ulty in research universities is rarely more than two courses tive doctrine. Research grants can distort incentives, say two North per semester — fewer if the researcher is able to ‘buy out’ Despite differences of opin- Carolina professors. Jack Sommer, Knight Distinguished of a course or two, which he had better do if he wants to ion, Frum’s speech was interesting Professor Emeritus at the University of North Carolina at compete with workers in medical centers who do nothing and provocative — and addressed Charlotte, points out in his article “Eye on the Prize: Self- but research.” important questions about the fu- Organization in Science” that government research grants Here are a few recent projects that highlight question- ture of conservatism in America. to universities have “transformed their research missions” able federal spending priorities: During his visit, he also spoke and created a “rigid hierarchy” of research institutions. • The National Science Foundation awarded N.C. before the Society of Politics, Eco- They also have concentrated funding in specific fields of sci- State University a $253,123 grant in 2009 to preserve an in- nomics, and Law at N.C. State. ence and in specific states. sect collection. Frum is a resident fellow at The “instrumental and utilitarian outlook” of bureau- • Wake Forest University received a $71,623 grant the American Enterprise Institute crats and politicians has changed the choices of scientists from the Department of Health and Human Services in 2009 and editor of FrumForum.com. about what they want to study, says Sommer. Perhaps the to “study the effects of self-administering cocaine on the A former economic speechwriter most obvious illustration of the federal government’s pick- glutamate system on monkeys.” for President George W. Bush, he ing “winners” and “losers” is the expansion of “green” re- • UNC-Charlotte received a $762,372 grant in 2009 is the author of the first “insider” search, especially in response to assumptions about global from the National Science Foundation to create computer book about the Bush presidency, warming. software that will record digitally the dance moves of per- The Right Man: An Inside Account The U.S. Department of Energy gave the University formers. of the Bush White House. His edito- of North Carolina at Chapel Hill $17.5 million to develop • The National Institute of Drug Abuse gave a profes- rial columns have appeared in a next-generation solar photovoltaic technology, reflecting sor of psychology at Davidson College a grant of nearly $1 variety of Canadian and American the nationwide green agenda that UNC-Chapel Hill has ad- million to study the effects of exercise on cocaine-addicted magazines and newspapers. CJ opted enthusiastically. The grant is part of the Department rats. of Energy’s $140 million project to create “Energy Frontier • In 2008, the Center for Sustainable Life Support for Research Centers.” Space Exploration at N.C. State received $376,000 to study Compiled by Jenna Ashley Rob- inson, campus outreach coordinator “Federal funding agents are careful not to make awards biological processes necessary for space exploration. CJ for the John W. Pope Center for Higher that stray from existing research paths,” writes Sommer. He Education Policy. points out that in some cases they want to see successful Jenna Ashley Robinson is campus outreach coordinator and results even before making the grant. That is destructive of John Eick is an intern with the John W. Pope Center for Higher genuine research, in which the outcome isn’t known when Education Policy (popecenter.org). APRIL 2010 | CAROLINA JOURNAL PAGE 13 Higher Education Opinion Myths of the Ivory Tower: The Things Academics Really Believe ince I started working at the ister as Democrats make sure stu- physics, they have every reason to Pope Center three years ago, one between 70 percent dents hear all sides expect that the course will be about … thing increasingly has become and 90 percent of Issues of an argument so attacking the capitalist “system”? One Sapparent to me — academics think the time. The real that they can con- Canadian physics professor declared differently (for the most part) than story is even worse: in ceive intelligent, openly that it was more important most of us do. Republicans tend Higher Education well-informed to teach about the evils of capitalism hey tend to live in a theoreti- to be clustered in opinions. … OK, than the course’s scientific subject ma- cal universe, while the rest of a few disciplines that’s ridiculous. terial, so he did. He even had a term America deals with real things such as business Academia often for his behavior: “squatting.” withT real consequences. If the carpen- or engineering, has little use for Response to his distortion of ter doesn’t nail the boards down, the while entire depart- diversity of ideas. academic freedom: dismissal. roof flies off. But ments at major universities register The diversity that really matters to if a professor’s Democratic. At many schools, there the academic establishment is based 5. Higher education drives the theory doesn’t pass are more committed communists than on characteristics of identity — race, economy. the smell test, then conservatives. ethnicity, and gender. … nothing. No- Pushing diversity as the ultimate Michigan Gov. Jennifer Gran- body suffers, and 2. Everybody should go to col- goal has become so pervasive that holm once said, “our higher education nobody loses his or lege. considerations about quality often system is the jet fuel that propels our her job. So it’s no are pushed to the side. In fact, just the economy.” If that’s the case, perhaps surprise that the Academics give lots of reasons opposite might be true. When every we should lay off the accelerator, slam thinking in such for this. The biggest reason, which policy, endeavor, or experience must on the brakes, and focus on the driver an atmosphere oc- they don’t like to state publicly, is that be measured by demographic bean instead of the fuel, because Michigan’s casionally spins off JAY it promotes employment for academ- counters rather than the best prac- economy — with the unemployment its axis. SCHALIN ics. But continued schooling is a waste tices or performances, this obsession rate hovering around 15 percent — As a critic of of time for people who aren’t inclined with diversity detracts rather than has been going in the wrong direction higher education, actually to study. Nationally, only 53 enhances. during her term in office — fast. I frequently don’t know whether to percent of entering freshmen graduate Still, college administrators and laugh or cry. And in that spirit, I offer within six years, and many students 4. Academic freedom means researchers seeking more funding a list — a little bit lighthearted, but leave with no degree and lots of debt. anything goes. from state and federal governments deadly serious — of five of the biggest Many graduates end up working in continually claim higher education is misconceptions held by academics fields in which a college degree is un- Professors say the darn- the driving force for economic de- that might not make it outside of the necessary. dest things. Whether it is describing velopment. But the U.S. economy is Ivory Tower. And even if everyone were to get financial professionals who lost their much more complex than they sug- a doctorate, the employment picture lives in the 9-11 World Trade Center gest. It is driven not by any single 1. There is no liberal bias in would hardly change one bit — so- terrorist attack as “little Eichmanns” factor but by the interplay among academia. ciety will still need the same mix of or calling for “a million Mogadishus” innovation, natural resources, govern- waitresses, convenience store clerks, (where 19 U.S. servicemen lost their ment policies, growing economies of Lilliputians don’t consider them- doctors, elementary school teachers, lives), if an idea is hateful, perverse, or scale, human capital, and mankind’s selves short. Brobdingnagians don’t and so on. irrational, some professor somewhere innate and incessant desire for more of see themselves as particularly large. has probably spouted it. In many everything. CJ And academics don’t seem themselves 3. Diversity makes everything cases, professors are protected by the as left-leaning. Yet surveys of voter better. academy’s self-enforced guidelines. Jay Schalin is senior writer at the registrations consistently show that However, one can go too far. John W. Pope Center for Higher Educa- college faculty members tend to reg- This is why universities try to When students sign up for a class in tion Policy (popecenter.org). PAGE 14 APRIL 2010 | CAROLINA JOURNAL From Page 1 Eco-Farm Project Seeks $15 Million in Taxpayer Funds Continued from Page 1 In her Golden LEAF request, Bradbury stated that she also expected project. to receive $300,000 from the U. S. De- Bradbury told CJ her project has partment of Agriculture; $11,007,977 support. “We have a lot of support from the U. S. Department of Energy; from Capitol Hill. We have a lot of and $591,000 from the U. S. Depart- support coming from the community ment of Housing and Urban Develop- and from the representatives from the ment. community. It is a slow, long, drawn- She also stated that her board of out process,” she said. “The homes are directors committed $591,000 toward targeted for low-income individuals. It the project. According to those num- is not low-income housing. The whole bers, then, Bradley is asking for 96 purpose of this project is to get people percent of the project’s budget to come off the welfare system,” she added. from public funds. She explained that individuals The Energy Department’s public would have to pay for their homes, affairs office was unable to provide CJ but that The Farme would provide with confirmation of Bradbury’s grant residents with jobs at the site. “We are request. trying to build a community where people actually care about each other,” Criminal record she said. Norman Beller, chairman of Cowee Community Concerned Citizens, said his group Beller told CJ that Bradbury’s “We have eliminated some of the was concerned about the technical feasibility of many aspects of the project, espe- cially the wind-energy portion. (CJ photo by Don Carrington) criminal record also ws a great concern everyday stresses people have — an to members of his group. electric bill, a water bill, day care ex- the Leadership in Energy and Envi- cal and physiological effects of organic In 1997, Bradbury pleaded guilty penses — things that seem to be bur- ronmental Design rating system de- eating and healthy home living.” in Grand Junction, Colo., to one count dening the average family,” Bradbury veloped by the nonprofit U. S. Green The N. C. General Assembly es- of theft, and was sentenced to eight said. The community is designed to be Building Council. tablished Golden LEAF to handle to- years in prison. According to informa- self-sustaining and not dependent on bacco settlement payments and make Golden LEAF application tion contained in a Colorado Court of outside electric, sewer, or water utility grants. Grants are considered public Appeals decision, Bradbury received companies. Bradbury’s nonprofit does not funds, and grant requests are consid- Bradbury’s Web site describes own the site. On Feb. 17, Bradbury re- ered public records. Continued as “Eco-Farm,” Page 15 the project as a “unique community quested $3.3 million from North Car- development plan designed to create a olina’s Golden LEAF Foundation to healthy psychological and physiologi- purchase the 34-acre site for $2.6 mil- cal eco-friendly living environment lion and to make other improvements through the promotion of organic eat- with the remainder of the funds. ing and Green built LEEDs certified The project title used for that homes.” LEEDS is an acronym for grant request was, “The psychologi-

Proposed expenditures for The Farme at Matlock Creek The Macon County News reported that “Farme developers have applied for a $15 million grant through the U.S. Department of Agriculture.” Brad- bury told CJ a different story. She said she has applied for grants through several federal agencies and the Golden LEAF Foundation, and planned to seek other funds from the state of North Carolina. She declined to share any of those grant applications. CJ was able to obtain her Golden LEAF grant application. The planned line item expenses submitted to Golden LEAF on Feb. 17 are as follows:

Real Estate Purchase $2,598,000 Civil Engineers $325,000 Farm/Bio-Diesel Equipment $225,000 Misc. Organic Compost/Soil $3,000 2-Grain Silos $40,000 Recycling Center $350,000 Surveyors $75,000 Building 23 Green Homes $5,060,000 Renewable Energy Implementation $261,000 “Green” Community Building $175,000 Tennis Courts/Volleyball Court $80,000 Greywater System $225,000 Grading $475,000 Landscaping $495,000 Executive Salaries - 1st year $98,000 Employee Salaries - 1st year $915,000 Organic Studies $300,000 Organic Bed/Breakfast Upgrades $375,000 Employee Salaries years 2-5 $3,404,793

TOTAL $15,479,977

—Don Carrington The site development plan for The Farme at Matlock Creek subdivision. APRIL 2010 | CAROLINA JOURNAL PAGE 15 From Page 1 Eco-Farm Project Seeks $15 Million in Taxpayer Funds Continued from Page 14 June for visitors to stay at the bed-and- breakfast situated in the house on the a lengthy sentence because she was on Farme, even though she does not own bond in connection with other felony the house. charges at the time of her offense. After The 34-acre tract contains a home, serving five years, she was released in buildings, greenhouses, and other 2002 and moved to Arizona. She told structures that supported an organic Carolina Journal that she had lived in farm, operated by the current owner Macon County for about three years. until she became ill a couple of years During a phone interview con- ago. ducted March 19, Bradbury was very The property, owned by Suzann positive about her project, but denied Mosling, is listed for sale by Harry ever living in Colorado or having a Norman Realtors in Highlands. On criminal record. In a subsequent phone March 19, listing agent Pat Allen told conversation that same day, Bradbury CJ the sale was pending and that Brad- admitted that she had lied in the pre- bury had shown her a copy of a $3.4 vious interview and had served time million wire transfer that Bradbury in prison for criminal activity that in- Developers’ plans called for this trout stream on the property to be used to generate had secured towards the project. Al- volved writing bad checks. hydro power. (CJ photo by Don Carrington) len said that Bradbury told her the $3.4 During a third phone interview, Bradbury’s mother Roberta Bradbury Farme for Farms in the organization’s was in escrow until other grants were Bradbury said CJ’s inquiries about her of Arizona told CJ her daughter and name. She also added Roberts to the received. She said that Bradbury has project had generated a lot of phone Roberts were not married. Bradbury Board of Directors. In December 2009, been trying to buy the property for calls and indicated she was ending her also has recently used the names Kel- she filed papers changing the principal about a year. efforts to develop The Farme. Howev- ley L. Roberts or Kelley L. Bradbury- office from her home to 363 Matlock On March 22, Allen told CJ that er, on March 22, at scheduled meetings Roberts. Creek Road, the address of the 34-acre she believed the $3.4 million legiti- mately was set aside for the project, for local public officials and citizens, Bradbury and Morgan M. Block property she hopes to buy. yet she did not know the source of the she indicated she was continuing with incorporated Cowee Valley Organic funds. the project. Farms Inc. in February 2009 as a North Premature reservations Bradbury previously had told Carolina nonprofit organization orga- The development team According to a local real estate CJ that she had not yet received any nized for charitable, educational, and agent, Bradbury has been trying to buy government grants. CJ’s efforts to dis- Bradbury and Timothy D. Rob- scientific purposes. Bradbury said she the 34-acre site for more than a year. cuss the source of the $3.4 million with erts incorporated Cowee Valley Green has submitted documents to the Inter- But Bradbury’s Web site suggests that her were unsuccessful. A man who Builders in November 2008 as a for- nal Revenue Service for designation as the nonprofit already owns it. “Cowee answered the phone at her house on profit organization. Reached by phone, a 501(c)(3) organization, but has not re- Valley Organic Farme, Inc., doing busi- March 23 said he was the house sitter, Roberts declined to discuss the project. ceived an IRS designation letter. That ness as The Farme at Matlock Creek, that he didn’t know where she was, Voter registration records indicate that designation allows contributions to is a North Carolina nonprofit corpora- and that he would not take a message. he was living in Macon County in 2003. be tax-deductible and formalizes the tion headquartered in Franklin, N.C. On March 24, Allen told CJ that In February 2009, Bradbury and organization’s nonprofit status. Brad- We are currently in the start up phase the property owner was terminating Roberts bought a home together near bury said Morgan M. Block is her son of building North Carolina’s first all the contract with Bradbury and the the Farme project. Their marital status and a student at the University of Ari- ‘Green’ Eco-Community — The Farme property remained on the market. She is not clear. On March 19, Roberts told zona. at Matlock Creek,” the site states. said Bradbury is welcome to purchase CJ he was not married. Then Bradbury In September 2009, Bradbury Bradbury also told CJ that she the property for the $2.7 million ask- told CJ they were married, and later filed papers substituting the name has taken reservations beginning in ing price. CJ North Carolina Candidates Gearing Up for Battle in Swing Districts Continued from Page 1 House, in the general election. they’ve been beating each other up to district could be ripe for the plucking dling state finances, building schools, In New Hanover County, Demo- get the chance.” given its history of sending conserva- cratic Sen. Julia Boseman’s retirement tives to the legislature. The African- building roads, and managing our Piedmont ruckus economy,” said Democratic strategist means that Republicans will have a American lawmaker barely won his Brad Crone. chance to reclaim the seat once held by Two Democratic lawmakers in seat in 2006, and had to outspend his the party’s 2004 gubernatorial candi- central North Carolina — Sens. Bill opponent 2-to-1 to win re-election in Heat up Down East date, Patrick Ballantine. Former UNC- Purcell of Scotland County and Tony 2008. Wilmington chancellor James Leutze Rick Gunn, who lost to Foriest in Pundits are tracking two Senate Foriest of Alamance County — could has filed on the Democrats’ side. 2008 by about 3,500 votes, is angling seats in the southeast that could switch be picked off if political trends contin- The Republican primary between ue against the ruling party going into for a rematch this year. parties after a sex scandal and retire- In the Triangle, a bevy of Repub- two lawyers, Thom Goolsby and Mi- November. ment opened the field. licans have filed for a chance to take chael Lee, turned ugly in March. In Purcell’s Republican opponent, Two Republicans have filed to on what they perceive as weak Demo- addition to exchanging fire on tort re- Jason Phibbs, already has fired a volley. replace 17-term Sen. R.C. Soles, a Ta- crat incumbents. Four GOP candidates form, both candidates claim the other At a town hall meeting in March, he ac- bor City Democrat who announced he have filed to challenge three-term Rep. donated money to Democrats in non- cused Purcell of promoting homosexu- wouldn’t seek re-election. Soles pled Grier Martin, whose district encom- guilty in February to a misdemeanor partisan races. Lee also released a Web ality by voting for contraception-based passes north-central Wake County charge for shooting one of his former video poking fun at Goolsby’s claim sex education and an anti-bullying bill In another Triangle-area race, one legal clients in the leg, and was ac- that he’s not a politician. that gave special protections to gay of three Republicans will challenge cused of molestation by men who al- “It’s been much more interest- students. Rep. Chris Heagarty, former head of lege Soles took sexual advantage of ing to watch the Republicans than Purcell countered that the anti- the N.C. Center for Voter Education. them when they were teenagers. the Democrats in the primaries,” said bullying bill doesn’t endorse homosex- Heagarty was appointed in October to The winner of the Republican House Democratic Whip Deborah Ross uality and that abstinence education complete Ty Harrell’s term. primary will face David Redwine, a of Wake County. “Most of them believe wasn’t working. Harrell resigned from the Gen- former Democratic powerbroker in the they’ll be coronated in November, and Moving to the Triad, Foriest’s Continued as “North,” Page 18 PAGE 16 APRIL 2010 | CAROLINA JOURNAL Local Government

Town and County Triad water fight What Does Local Government Cost in N.C.? A court case involving the By CJ Staff Combined City and County Tax Burdens for Piedmont Triad Regional Water RALEIGH Authority and seven small hydro- he average North Carolinian sur- N.C.Municipalities with Populations of 25,000+ electric plants has the potential to rendered almost 5 percent of his City Tot. Rev. 2008 Prop. Tax 2008 Sales Tax 2008 change significantly how North personal income to fund city and Per Capita Rank Per Capita Rank Per Capita Rank Carolina handles water rights, re- Tcounty government in the 2008 budget Charlotte $2,587.27 1 $1,422.76 3 $522.47 1 ports the Greensboro News & Re- Mooresville $2,286.46 2 $1,486.95 2 $473.87 4 year. That’s one of the key conclusions Asheville $2,257.58 3 $1,246.90 6 $481.47 2 cord. Chapel Hill $2,252.58 4 $1,508.39 1 $357.53 21 in the latest edition of By The Numbers, Wilmington $2,125.46 5 $1,176.29 10 $454.72 5 The water authority recently the John Locke Foundation’s yearly Durham $2,030.80 6 $1,289.39 4 $394.17 10 completed the Randleman Re- Cary $1,996.48 7 $1,132.62 12 $369.93 17 look at tax and fee collections by local Hickory $1,976.50 8 $1,108.02 14 $453.13 6 gional Reservoir, which will pro- Greensboro $1,971.36 9 $1,208.38 9 $357.88 20 government in North Carolina. Raleigh $1,959.73 10 $1,105.28 15 $378.98 13 vide drinking water. The seven “The typical resident of the me- High Point $1,958.06 11 $1,231.54 8 $352.09 24 Huntersville $1,949.24 12 $1,272.61 5 $371.03 16 privately owned hydro plants, dian county in North Carolina paid Monroe $1,915.04 13 $1,123.20 13 $340.38 26 located downstream on the Deep Matthews $1,881.76 14 $1,246.76 7 $375.41 15 $1,330 in taxes and fees to county and Concord $1,870.85 15 $1,166.20 11 $403.82 8 River, claim that the reduced wa- municipal governments,” said report Winston-Salem $1,822.39 16 $1,089.61 17 $356.64 22 Salisbury $1,794.71 17 $1,052.92 19 $336.16 29 ter flow reduces their ability to author Michael Lowrey, a JLF policy Apex $1,790.65 18 $1,101.65 16 $377.77 14 generate and sell electricity and Statesville $1,762.23 19 $1,025.36 20 $478.87 3 analyst. New Bern $1,680.55 20 $883.06 24 $405.45 7 are seeking compensation. Sanford $1,667.69 21 $1,073.41 18 $397.96 9 “The good news is that total is Gastonia $1,630.21 22 $976.49 21 $333.40 30 The water authority says down from the inflation-adjusted fig- Wilson $1,629.77 23 $875.71 25 $339.98 27 Burlington $1,596.16 24 $915.94 23 $381.29 12 it owes the power plant owners ure of $1,355 for the 2007 budget year. Greenville $1,581.31 25 $811.93 28 $383.07 11 nothing. It claims that under the Rocky Mount $1,552.19 26 $787.09 30 $358.17 19 The bad news is that a price spike early Kannapolis $1,527.46 27 $918.49 22 $338.58 28 state’s water impoundment law, in the 2008 calendar year bears some Goldsboro $1,421.47 28 $777.19 31 $365.13 18 Fayetteville $1,419.84 29 $791.16 29 $352.42 23 covering bodies of waters created responsibility for the decrease. Next Thomasville $1,385.07 30 $851.71 26 $350.00 25 or stored by dams, it has the legal Indian Trail $1,235.96 31 $842.70 27 $236.14 32 year’s report is bound to show an in- Jacksonville $1,092.66 32 $544.78 32 $316.72 31 right to remove water from the crease in local tax burden as 2009 and Source: John Locke Foundation’s By The Numbers report for FY2008 reservoir. 2008 figures are compared on an infla- “Compared to a lot of states, tion-adjusted basis.” while those living in a town or city per-capita tax burden. we haven’t had that much conflict Nominal (noninflation adjusted) between competing water uses might receive this service, paid with Residents in the counties of Yanc- local government revenues were up municipal property and other taxes. ey ($770), Gates ($822), Caswell ($859), over the years,” said Bill Hol- by some $600 million in FY 2008 as man, former secretary of the N.C. Municipalities also might use some Greene ($877), and Jones ($882) paid compared to the previous year. This tax dollars to provide a higher quality the lowest average amounts in taxes Department of Environment and increase gave almost entirely from in- Natural Resources. “I don’t think of fire protection, which might trans- and fees to local governments. creased property tax receipts; sales tax late into lower homeowners insurance As per capita personal income our impoundment law has been revenues were up by less than $100 challenged before.” rates. varies widely across the state — from million, and other revenues actually “Importantly, this means that a high of $45,483 per person in Meck- decreased. whether a jurisdiction is ranked high lenburg County to a low of $ $21,770 Water price increase Calculating burdens or low in cost of government is not the in Warren County — looking at tax end of the debate over fiscal policy — burdens as a percentage of personal Asheville water customers State law requires each county it is merely the beginning,” Lowrey income produces somewhat different could be facing rate increases of and municipality to file audited re- said. “Citizens of North Carolina’s cit- results. Dare County again leads the as much as 9 percent this year. ports, which are available on the Web, ies and counties must decide whether way with county and municipal rev- One reason for the proposed rate with the state treasurer’s office each the services they receive are worth the enue accounting for 11.69 percent of increase, oddly enough, is that year. price they and their fellow taxpayers per-capita personal income. there’s too much water, reports By The Numbers builds on that (residential and business) are paying Second through fifth were the the Asheville Citizen-Times. data and examines property taxes, in local taxes and fees.” counties of Brunswick (8.23 percent of The water system is project- sales taxes, and total local government Work on this year’s report was per-capita personal income), Bladen ing a 10 percent shortfall in its $32 collections of all taxes and fees for complicated by a number of localities (8.13 percent), Hyde (7.84 percent), million budget for the upcoming counties and municipalities for fiscal not filing audit reports with the state and Currituck (7.41 percent). By com- fiscal year, and is hoping to close 2008 (July 1, 2007, to June 30, 2008), the in a timely manner. Two counties — parison, taxes and fees collected by the gap by upping its prices. Wa- most recent year data is available. Graham and Hoke — and 29 munici- local governments accounted for 2.92 ter consumption dropped by 9 For each of the three categories, palities are not covered by the report; percent of per-capita personal income percent in the second half of 2009 a revenue per-capita figure was com- the localities still had not submitted in Onslow County. Next lowest were because of voluntary water con- Jones and Alexander counties at 3.05 puted. Countywide figures also were data to the state more than a year after servation and lots of rainfall. Even percent and 3.12 percent of per-capita calculated as a percentage of per-capita it was due. so, a water system must deal with personal income, respectively. In 23 personal income. significant fixed costs, including The cost of local government counties, total collections were at 4 Counties are also ranked for both debt service and salaries. percent of per-capita personal income “It’s a double-edged sword per-capita collections and collections Dare County residents paid the or less. that every water system in the as a percentage of personal income. highest total in taxes and fees to lo- Among the 33 municipalities country sees,” noted Steve Shoaf, Municipalities are sorted by popula- cal government ($4,149 per capita). with a population of 25,000 or greater city water resources director. tion and ranked within four popula- The counties of Mecklenburg ($2,687), (see table), Charlotte residents again The city’s water system also tion ranges (less than 1,000 population; Brunswick ($2,419), Currituck ($2,398), paid the greatest in taxes and fees to lost revenues when it lost its big- 1,000-4,999; 5,000-24,999; and 25,000 or and Durham ($2,181) also rank in the support local government, with com- gest customer, the city of Hender- more). top five in revenue collected per cap- bined city and county revenue coming sonville, and because of a drop in While BTN shows the cost of lo- ita by county and municipal govern- to $2,587 per person. The next high- development. cal government, it does not attempt to ments. The results for several of these est tax and fee burdens were in Ashe- Major water users are con- measure the quantity or quality of ser- counties reflect their popularity as va- ville ($2,258), Chapel Hill ($2,253), and cerned. vices provided in exchange for those cation destinations. Second homes and Wilmington ($2,125). Results for Wake “This is absolutely a big dollars. Nor does the report consider resorts appear on local tax registers. Forest could not be calculated, as it did deal,” said Grove Park Inn CEO the additional out-of-pocket costs indi- Because many owners or renters do not file its audit report with the state as Craig Madison. “We’re still recov- viduals must pay for services that local not live in these dwellings year-round, required. It is not included in the table ering from the hard-hit recession government may not provide. however, such localities typically have on this page. days, then out of the blue, we’re In unincorporated areas, for ex- small permanent populations. High The entire By the Numbers report hit with this.” CJ ample, homeowners might have to tax values divided by a small perma- is available on line at johnlocke.org/ contract privately for garbage pickup, nent population will produce a high policy_reports/. CJ APRIL 2010 | CAROLINA JOURNAL PAGE 17 Local Government Contamination Could Delay COMMENTARY Another Bizarre Yadkin Jail Project Further Durham Initiative By Sarah Okeson Stephen Williams, a hydrogeolo- Contributor gist for the N.C. Department of Envi- f you’re looking for a source passengers account for 15 to 20 YADKINVILLE ronment and Natural Resources, said of odd public-policy ideas, go percent of ridership. BC Bank approved a $7.3 mil- the former gas station at U.S. Highway no further than Durham. The Bell’s suggestion also shows lion loan to Yadkin County for a 421 and Bethel Church Road is still an Ilatest from the city and county confusion about the purpose of new jail near land contaminated active site. that brought us the Duke lacrosse transit. Not everyone who cur- byR leaking gas tanks, even after county The agency tentatively has clas- case, attempted to impose an obvi- rently rides the bus in Durham is officials questioned whether the envi- sified the petroleum released by leak- ously illegal impact fee for school poor. There’s a real danger that the ronmental paperwork submitted for ing gas tanks as high-risk because of construction, and let its yard- philosophy motivating Bell’s re- the loan was accurate. a nearby water supply well. DENR waste dump burn for a month, is a marks risks creating — enhancing, Engineer Randy Darden, who has asked the former owners, Ronnie proposal to make rides on its bus really — a public perception that filled out an environmental ques- and Brenda Harris, to assess the site. system free. bus systems exist merely to move tionnaire re- The land was One would think that even poor people around. quired for the bought by the considering an increase in local Local government types want loan, didn’t Department of government spending during a to use transit to get people out of respond to a Transportation severe economic downturn that’s their cars and rely on buses to get question ask- when it wid- causing large budget deficits to work. Transit also is a key ele- ing whether ened U.S. 421. would be a nonstarter. But this is, ment of the Smart Growth agenda, there had been “The state well, Durham, so there’s which aims to remake any known of North Caro- a chance it will happen. cities. In Durham, that spills, leaks, or lina was to take “While I know it’s means attracting so- other releases care of all that tough economic times, I called “choice riders,” on neighbor- when we sold it think it needs to be on the those who can afford to ing properties to them,” Bren- table,” the Durham Her- drive, to ride buses. within 2,000 da Harris said. ald-Sun quoted Durham That’s not going feet of the site. Y a d k i n Mayor Bill Bell as saying to happen, though, if He also didn’t County plans during a recent city coun- people who can afford to respond to a to pipe in water cil budget retreat. drive believe, as the Brit- question about for the jail and “We keep talking ish art rock group Fatima whether any MICHAEL wouldn’t be re- about the whole issue of LOWREY Mansions put it some c o n t a m i n a - Environmental questions about the loan ap- lying on wells. poverty in this communi- years back, that “Only tion plumes plication were unanswered. (CJ file photo) An en- ty, and the whole issue of Losers Take The Bus.” or flows were v i r o n m e n t a l jobs. I daresay a fare-free Unfortunately, that’s moving on the site. site assessment that the county had system will facilitate the ability of what Bell essentially is saying, and Darden told Carolina Journal that performed in 2007 by S&ME Inc. in people without in a manner he didn’t answer those questions on Greensboro also identified the nearby transportation that’s only the loan paperwork because he didn’t contamination and said that it could to get to jobs.” slightly more know the answers. affect the jail site. The Dur- subtle than “There was no answer to the Did Durham Yadkin County commissioners ham Area Tran- Fatima Man- question,” Darden said. “It was sent in talked about how accurate the environ- sit Authority sions put it. to RBC, and I figured if they had any Mayor Bill Bell mental paperwork was at a meeting on takes in about To put it additional questions they would call.” May 4, 2009, and voted unanimously to $2.8 million really mean that another way, if Chad Wagoner, the chairman of contact RBC and “express the desire” a year in fare DATA is truly the county commissioners, said the to provide additional documentation revenue. only losers offering a valu- nearby land shouldn’t be a problem if or resubmit another questionnaire. Some able service, the bank isn’t concerned about it. “If take the bus? “My belief is that there’s a high the people lending us the money are obvious prob- why would it likelihood of contamination on the jail satisfied with it, I don’t see it as an is- lems: The mod- give it away to site,” said Kevin Austin, a commission- sue,” Wagoner said. “They have a le- el that Durham everyone, even er who has opposed building the jail gal team much deeper than we do as is looking at is Chapel Hill, which to those who easily could afford to on the site the county has chosen. “It’s a county.” made its bus service free a few pay the current $1 fare? Some county officials say this is irresponsible for us as county commis- years back. The two communities Bell talks about living in no big deal, because the county would sioners to know that and ignore that.” are not equivalent. Chapel Hill is tough times, and the lack of jobs, pipe in water for the jail. But oppo- Then-County Manager Stan Kis- a college town, with a permanent while not recognizing that in nents of the project think additional er told commissioners at their May 18, population of about 55,000 that the Great Recession, the now- environmental surveys may be needed 2009, meeting that he had contacted grows by nearly 30,000 college unemployed include many people to ensure that the site is not contami- RBC and talked with Mary Nash Rush- students during the school year. with considerable skills, people nated. And questions remain about er and Jeremy Fisher. Durham is the state’s fifth-largest who have a mortgage, a car, and RBC’s oversight of the loan application “It was reported that the legal city, with a year-round population are now just trying to hold on. A and approval. counsel of RBC does not want to get four times that of Chapel Hill, and free bus ride to work doesn’t help Darden filled out the question- involved with the legal issues of the a prestigious university with half if you don’t have a job. In fact, it naire on April 23, 2009, almost three county,” the minutes state. “RBC is of UNC-Chapel Hill’s enrollment. makes things worse, as your taxes months after RBC actually had agreed satisfied with the environmental re- And it’s not as if Durham’s and fees would rise to support a to lend money to the county. The mon- port, and the loan remains available.” bus service isn’t heavily subsi- free bus system. ey is being held in escrow and has Kiser and Fisher, a director dized. In 2008, fares covered only Only in Durham, the land of not been distributed to the county be- of public and institutional banking 16 percent of Durham Area Transit bizarre government. CJ cause construction hasn’t started. RBC for RBC, did not return phone calls. Authority’s operating expenses. agreed to make the loan using the 10- Rusher, the managing partner for the DATA already offers free rides to Michael Lowrey is an associate acre site for the jail and the building Raleigh office of Hunton & Williams, those under 12 and over 65; such editor of Carolina Journal. (after completion) as collateral. declined to comment. CJ PAGE 18 APRIL 2010 | CAROLINA JOURNAL Local Government How Low Will Mecklenburg’s Commercial Property Values Go?

By Michael Lowrey ing the county’s revaluation team. “There are a lot of gaps in service erated racks in the airport’s terminals. Associate Editor “It’s been a downward trend right now,” said County Commission- The publishers of the Raleigh News & RALEIGH ever since. If the trend continues, then er Kirk Perkins. Observer, the Durham Herald-Sun, The recent sale of a large commer- things are looking rough for commer- Not all county commissioners fa- New York Times, and USA Today origi- cial property in Charlotte is cial real estate.” vor the county assuming responsibility nally sued the airport in 2004, contend- highlighting concerns about the for trash collection. ing that the airport’s policy violated valueA of properties throughout Meck- Guilford garbage collection “It’s government coming into the First Amendment. lenburg County. The issue has become Guilford County continues to people’s lives where it doesn’t belong,” Newspapers currently are sold more important as the county prepares work on a plan to collect garbage in said Commissioner Billy Yow. “It also at RDU, though only at newsstands for countywide property revaluations unincorporated shuts smaller hauling businesses out and gift shops. The newspapers next year, reports The Charlotte Observ- portions of the if they can’t ser- sought to install racks to serve travel- er. county. County vice the whole ers who wanted a paper before or after In March, IBM’s former Univer- officials hope to Cherokee county. Why put the stores were open and to increase sity City campus was resold. The $42 have the details people out of awareness of their products. million price for the 1.9 million-square- worked out by those jobs?” The airport refused to allow the foot group of buildings was about one- the end of the to Yow would racks, citing security concerns, aesthet- third of the property’s tax value. year, writes the have the county ic considerations, purported conges- County officials are aware that Greensboro News health depart- tion racks would create, and the loss of commercial property values are low- & Record. Currituck ment deal with airport revenues from newsstand and er now than they were several years Currently, those dumping gift shop sales. ago. The more interesting question is those living in garbage illegally. The appeals court found these whether they are lower now than they unincorporated portions of the county Some residents question the concerns, while legitimate, did not out- were in 2003, when the county last re- must either contract for garbage col- move toward county trash collection. weigh the newspapers’ right to have at valued properties. Or put another way, lection privately or drive waste to the “There’s no way anybody from least some racks at the airport. is the sale of the former IBM property landfill themselves. County staff are the county or people they hire can do “Because the government inter- an isolated low sale, or does it repre- concerned that some people are dis- it better or cheaper for me than me just ests asserted to justify the ban do not sent a deep general decline in commer- posing of their garbage illegally, either hauling it myself,” said Jim Scott, who counterbalance its significant restric- cial property values in the county? by dumping it in woods and gullies hauls his own garbage to the dump. tion on protected expression, we af- Commercial properties make up or burning it. In response, the county “But they’ll still charge me for it.” firm,” wrote Judge Allyson Duncan for about a third of the county’s property would take over garbage collection, RDU newspaper rack ruling the 4th U.S. Circuit Court of Appeals. tax base. with residents paying for the service The appeals court also let stand a “We don’t know where they’re through additional taxes. The county A federal appeals court has up- lower court order requiring the airport going to end up relative to 2003, but plans to bid out the service, with a sin- held a lower court ruling requiring to pay the newspapers’ legal fees. they are definitely off from the peak in gle low bidder to serve all unincorpo- Raleigh-Durham International Airport The airport is considering wheth- 2006,” said Chuck Hicks, who’s head- rated areas. to allow newspapers to place coin-op- er to appeal the decision further. CJ North Carolina Candidates Gearing Up for Battle in Swing Districts Continued from Page 15 Two Republicans, Fred McClure and Brown, have RACES TO WATCH (Democrats Listed first) eral Assembly in September shortly after the state filed this year. Board of Elections opened an investigation into his “Holliman barely hung on in a terrible year for SENATE campaign finance activities, including payments for Republicans [in 2008],” Davis said. “That shows how Senate-8: David Redwine vs. Bill Rabon or Bettie Fennell luggage and children’s clothes that Harrell wrote off vulnerable he is, especially in a good year for Repub- Senate-9: Jim Leutze vs. Michael Lee or Thom Goolsby licans.” Senate-10: Gordon Vermillion or Dewey Hudson vs. Brent as campaign expenditures. Jackson or Chris Humphrey Senate-24 *: Tony Foriest vs. Rick Gunn Leadership shakeup Western showdown Senate-25: William Purcell vs. Jason Phibbs Senate-43: Annette Carter vs. Will Neumann, Kathy Har- Regardless of whether Republicans score victo- Spring is alive in the Carolina mountains, but it rington, Ken Bowen, or James England hasn’t brightened the prospects of three potentially Senate-45: Steve Goss vs. Daniel Soucek or Jeffrey Elmore ries in November, the General Assembly’s leadership Senate-47: Joe Sam Queen vs. Ralph Hise, Tamera Frank, will undergo significant changes. Long-time Senate vulnerable Democratic incumbents — Steve Goss of or Andy Webb Majority Leader Tony Rand, a Watauga County, Joe Sam Queen Senate-50: John Snow vs. Jimmy Goodman or Jim Davis of Haywood County, and John Democrat, resigned Dec. 31, and HOUSE Sen. David Hoyle, the Demo- Snow of Cherokee County. cratic co-chair of the powerful Sen. David Hoyle’s Goss, an ordained Baptist House-1: Bill Owens vs. John Woodard minister, will have to fight to House-3 *: Alice Underhill vs. Norman Wesley Sanderson Senate Finance Committee, isn’t House-4: Mott Blair vs. Jimmy Dixon seeking re-election. seat seen as key keep the seat he barely held onto House-6: Arthur Williams vs. Bill Cook Rand’s seat is safe for in 2006 and 2008. Registered Re- House-9: Marian McLawhorn or Gordan Hart vs. Stan publicans outnumber Democrats Larson Democrats, but experts predict for GOP Senate House-10: Van Braxton vs. Stephen LaRoque that Hoyle’s district will switch by 11 percentage points in the House-22: William Brisson or Robert Jacobs Brooks vs. hands. Four Republicans have takeover district. John Szoka Three Republicans are vy- House-25: Randy Stewart vs. Jeff Collins filed in the primary. House-34: Grier Martin vs. J.H. Ross, Brian Tinga, Steve “The fact that you’ve got ing to take the seat Queen nar- Henion, or Jamie Earp rowly won in the last two elections. Even though House-41: Chris Heagarty vs. Tom Murry, Todd Batchelor, or that many Republicans filing is an indicator of the ex- David Sloane pectations for the outcome,” said N.C. State Univer- Queen outspent his opponent 4-to-1 in 2006, he won House-49: Lucy Allen vs. Glen Bradley sity political science professor Andrew Taylor. “The with only 51 percent of the vote that year and 54 per- House-51: Jimmy Love vs. Mike Stone cent in 2008. The district’s demographics heavily fa- House-77: Lorene Coates vs. Harry Warren or Lauren Raper Republicans don’t win the Senate without winning House-81: Hugh Holliman vs. Fred McClure or Rayne Brown Hoyle’s seat.” vor the GOP. House-88: David Munday vs. Mark Hollo Republicans also hope to put a dent in Demo- In the southwestern corner of the state, Repub- House-93: Cullie Tarleton vs. Jonathan Jordan licans Jimmy Goodman and Jim Davis are undaunt- House-112: Jim Proctor vs. Alan Toney, Jim Wayne Newton, crats’ power structure in the legislature by defeating Mike Hager, or Dennis Davis House Majority Leader Hugh Holliman, a Democrat ed by Snow’s six-year reign. Even though the district House-116: Jane Whilden vs. Timothy Moffitt from Davidson County. has more voters registered Democrat (39 percent) House-118: Ray Rapp vs. Sam Edwards House-119: R. Phillip Haire or Bruce Friedman vs. Dodie Holliman narrowly won re-election in 2008, but than Republican (36 percent), Snow has had to spend Allen he had to spend $340,000, compared to the $15,000 three or four times as much as his opponents in the * Races with a Libertarian on the ballot, Barry Coe in Senate 24 and Herb Sobel in House 3. raised by his Republican opponent Rayne Brown. last three elections to win. CJ APRIL 2010 | CAROLINA JOURNAL PAGE 19 Local Government Lawsuits Await Cities, Counties Funding Employee Abortions

By David N. Bass get amendment last year that would Associate Editor have banned abortion coverage except RALEIGH when the mother’s life is endangered epublican state House Leader or in cases of rape or incest. But House Paul “Skip” Stam has a message Speaker Joe Hackney, D-Orange, ruled for local governments that plan it out of order. toR keep funding elective abortions with The amendment mirrored a fed- taxpayer dollars: a lawsuit is coming. eral version, sponsored by former Re- Stam made the pledge minutes publican U.S. Sen. Mike DeWine of after the Wake County Board of Com- Ohio, barring federal employee health missioners voted March 15 along party plans from paying for abortions. Since lines to restore the county’s policy of 1976, the Hyde Amendment has pro- covering medically unnecessary abor- hibited abortion coverage through tions in health care plans. Democrats Medicaid, though the health reform on the board managed to reinstate the law recently signed by President coverage after Commissioner Har- Obama appears to have overturned old Webb, at home recovering from a that prohibition. stroke, phoned in his vote. Tony Gurley, Republican chairman of the Wake County commissioners, first raised During a public comment period “There will be [a lawsuit], but the abortion issue before county staff eliminated the benefits administratively. (CJ March 15, commissioners got an earful in which county it will be and what photo by David N. Bass) from both sides in the debate. month is a tactical question for who- “I speak with women on a week- in Raleigh. thority to use local tax dollars to pay ever the lawyer and plaintiffs will be,” ly basis as a result of their abortion. I Wake taxpayers have footed the for the procedure for indigent women. Stam said. can firmly say without a doubt that bill for about a dozen abortions since The American Civil Liberties Union The Wake County Republican abortion hurts women, abortion hurts 1999, according to county staff. and UNC-Chapel Hill School of Gov- also had strong words for the four men,” said Tonya Nelson, who runs a The policy isn’t confined to Wake. ernment have released separate legal Democrats who voted to re-fund the pro-life pregnancy center in Fuquay- procedure. “They’ve taken themselves The state’s most briefs arguing Varina. down a path to a very minority status populous urban the ruling doesn’t Melissa Reed, vice president of at the request of a Planned Parenthood centers — includ- Planned Parenthood prohibit the cov- Planned Parenthood Health Systems, lawyer,” he said. ing the Triangle, erage for health said that abortion coverage is standard CIGNA HealthCare provides Triad, and Char- attorney wrote insurance pur- in health insurance policies. “The deci- Wake’s health insurance plan, which lotte-Mecklenburg poses. sion to have an abortion is a difficult also covers contraception and vasecto- area — cover elec- resolution But Stam, one, but I hope you can agree that it is mies. The 3-3 tie vote by the commis- tive abortions into who litigated the a decision best left up to a woman, her sion Feb. 15 lets stand a decision by the second trimes- to restore case three decades doctor, her family, and her faith pro- county staff to pay for abortions only ter. A number of abortion funding ago, said it gives vider, and not the Wake County com- for medically necessary reasons, such local governments, “persuasive” evi- missioners,” she said. as to save the mother’s life. including the Town dence that abor- Other speakers took aim at com- Stan Norwalk, a Democrat, took of Apex and Cum- tion funding missioners by name. Raleigh resident exception to that vote and offered berland County, subsequently have in health care plans is outlawed. He Art Wilson called comments Norwalk a resolution March 15 restoring the scuttled the coverage amid concerns added that commissioners who voted made to CJ about abortions saving funding. Carolina Journal learned that that it violates a state Supreme Court in favor of the funding don’t “under- taxpayer funds since they are cheaper Wake Democratic Party Chairman Jack ruling from 1981. stand the history of this case.” than bringing a pregnancy to term Nichols wrote the resolution for Nor- That decision, Stam v. State of Stam has taken aim at abortion “contemptible.” walk. Nichols also is the top lawyer for North Carolina, found that the General coverage for teachers and state govern- “You should be ashamed,” Wil- Planned Parenthood Health Systems Assembly never gave counties the au- ment employees, too. He offered a bud- son said. CJ Help us keep our presses rolling Visit our Western regional page Publishing a newspaper is an ex- pensive proposition. Just ask the many http://western.johnlocke.org daily newspapers that are having trouble making ends meet these days. The John Locke Foundation It takes a large team of editors, re- porters, photographers and copy editors has five regional Web sites span- to bring you the aggressive investigative ning the state from the mountains reporting you have become accustomed to the sea. to seeing in Carolina Journal each month. The Western regional page in- Putting their work on newsprint and cludes news, policy reports and then delivering it to more than 100,000 research of interest to people in readers each month puts a sizeable dent the N.C. mountains. in the John Locke Foundation’s budget. That’s why we’re asking you to help defray those costs with a donation. Just It also features the blog The send a check to: Carolina Journal Fund, Wild West, featuring com- John Locke Foundation, 200 W. Morgan mentary on issues confronting St., Suite 200, Raleigh, NC 27601. Western N.C. residents. We thank you for your support.

John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876 PAGE 20 APRIL 2010 | CAROLINA JOURNAL Books & the Arts

From the Liberty Library Book Review

• A profound malaise haunts Europe. On the one hand, everyone Two Offerings Chronicle John Edwards’ Implosion is aware that the continent no longer is in the forefront of anything, that it • John Heilemann and Mark Halperin, Game Change: Obama During the 2004 primary, Edwards would call Young daily loses ground to other regions and the Clintons, McCain and Palin, and the Race of a Lifetime, at night and complain about rubbing elbows with the com- of the world, in economic growth, New York: Harper, 2010, 448 pages, $27.99. mon folk. “He especially hated making appearances at state scientific research, influence, and fairs, where ‘fat rednecks try to shove food down my face. power. Its population does not even • Andrew Young, The Politician: An Insider’s Account of John I know I’m the people’s senator, but do I have to hang out reproduce itself. Edwards’ Pursuit of the Presidency and the Scandal That Brought with them?’” Young writes. On the other, it is seized with Him Down, New York: Thomas Dunne Books, 2010, 320 pag- So much for Edwards’ signature spiel about the two immobility, largely because those es, $24.99. Americas. Elsewhere, Young depicts his boss as a shallow, who now are comfortably well-off petty, and dishonest man. Edwards borrowed Youngs’ new fear to lose their advantages and By David N. Bass Chevy Suburban and put a dent in the bumper the size of privileges. Associate Editor a dinner plate. “The senator never said a word to me about In The New Vichy Syndrome, RALEIGH it,” Young writes. At another point, Edwards whined about Theodore Dalrymple traces the mal- here I sat in Edenton Street United Methodist Church, not having a sport coat at a campaign rally to “make a show aise back to the two great conflicts of one of downtown Raleigh’s oldest houses of worship, of peeling it off in front of the crowd.” the last century, with their disastrous on a beautiful Sunday morning in early July. Little did Elizabeth also had uppity instincts, which often spilled though understandable effects on IT know who was about to slip into a nearby pew. into rage and cruelty. As Heilemann and Halperin describe self-confidence. The year was 2004, and presidential politics dominat- in Game Change, a wide disparity existed between her pub- As a result of the recent past, ed the headlines. Five days earlier, John Kerry had tapped a lic image and the private reality. “What the world saw in Europeans no longer believe in any- first-term senator from North Carolina as his running mate, Elizabeth: a valiant, determined, heroic everywoman. What thing other than personal economic calling John Edwards “a man who understands and defends the Edwards insiders saw: an abusive, intrusive, paranoid, security, an increased standard of the values of America.” Oh, and he has good hair, too. condescending crazywoman.” living, shorter working hours, and I soon witnessed that perfectly coiffed mane in person. That rage only increased after learning of her hus- long vacations in exotic locations. Edwards came in half-an-hour late, his wife, Elizabeth, and band’s affair. Even then, Edwards maintained a shocking More at www.encounterbooks.com. oldest daughter, Cate, in tow. And, of course, a hefty contin- degree of egoism. He told Hunter to get an abortion. She gent of Secret Service personnel. didn’t. Then he convinced Young to claim paternity of the E d w a r d s baby girl, whom Hunt- was poised, re- er thought was the re- • Have you hoisted a sign at a laxed, confi- incarnated spirit of a tea party protest? Asked your con- dent. His family Buddhist monk. gressman a tough question at a town looked ideal. He It was a last hall meeting? Liked what you heard was ready to be- ditch effort to save on talk radio? If so, then welcome to come the next his presidential ambi- the Angry Mob. vice president of tions, or at least earn In That’s No Angry Mob, That’s the United States. him a spot in Barack My Mom, talk radio host Michael Who could have Obama’s administra- Graham delivers an uproarious, guessed the per- tion. It flubbed in short full-throated defense of millions sonal and profes- order as Edwards first of typical Americans like his mom sional death spiral admitted the affair and — ordinary people who worry that that would follow then, two weeks before President Obama’s statist policies after The National Young’s book came are jeopardizing America’s future. Enquirer exposed out, paternity. Learn more www.regnery.com. Edwards’ smarmy No one in The Pol- affair with Rielle itician comes off clean, Hunter, a middle- least of all Young. aged campaign Edwards might be a • Throughout the 1980s and v i d e o g r a p h e r two-timing slime ball, 1990s, conservatism possessed a with a penchant but his former aide vibrancy that resulted from spir- for bizarre mysti- is equally culpable. ited intellectual inquiry and open cism? Young lied and put debate. However, in the years The culmi- his family through the leading up to the 2008 elections, nation of Edwards’ slow-motion train wreck, at least so far, ringer, all for money. Then, when the cash dried up, he went this energy seemed to fade. It was came in the beginning months of 2010. In January, journal- to a publisher and laid out the scandal in print — hardly the as if the conservative movement ists John Heilemann and Mark Halperin published a 448- actions of a white knight. There’s no moral compass, only became less concerned with ideas page account of the 2008 election, Game Change, that por- greed and political expediency. and more concerned with the pres- trayed John as an egomaniac and Elizabeth a psycho chick. That’s the enduring lesson of the Edwards saga. When ervation of political power. The One month later, Edwards’ former top aide, Andrew Young, Machiavellianism dominates, everyone becomes a buck result, ironically, was a loss of power. published his own exposé, The Politician. Any remaining passer. Young felt justified in falsely claiming paternity be- Patrick Garry in Conservatism scraps of Edwards’ decency went out the window. cause Edwards was destined to save the country. Billionaire Redefined examines how conserva- Readers fascinated by the inner workings of campaigns heiress Bunny “Money” Mellon felt justified bankrolling tives dug themselves into this hole, and politicians’ cultic appeal will find the tomes a lively Edwards’ affair because he was the reincarnation of Rob- and how they can climb out. Unlike read. Their reliability is another question: Game Change uses ert Kennedy. Edwards felt justified cheating on his cancer- many conservative pundits, Garry anonymous sources, and a self-admitted impostor penned stricken wife because every powerful man is entitled to a does not propose a simple “rediscov- The Politician. Take them with a grain of salt, but still take little fun. er our roots” credo. Instead, the book them. They offer valuable insights into the anatomy of po- The law of sowing and reaping eventually caught up re-examines and renews conserva- litical scandal. with him. When Edwards walked into that church in 2004, tive ideology, explaining how the The salacious details aside, the most sickening part is he was at the peak of his political game. classical ideals of conservatism can how close Edwards, a moral deviant in the truest sense of Six years later, he’s a political pariah, faces potential be used in new ways to address the the word, came to the vice presidency. That conclusion isn’t jail time if charged with and convicted of funneling cam- concerns of citizens across the spec- based on his sexual sins alone, as vile as they are, but on paign donations to his mistress, and has ruined his family. trum. More at www.regnery.com. CJ his hypocrisy. He claimed to be a champion of the poor but He has no one but himself to blame. lived a life of luxury and treated others with disdain. Pity the nation that elects such men to office. CJ APRIL 2010 | CAROLINA JOURNAL PAGE 21 Books & the Arts History Is More Than Just the Recorded Past and Old Documents istory is much more than the consider the experiences of all histori- of one’s life may not be recorded or we know: history.) Even in science fic- accumulation of facts. Facts cal characters, groups, and nations. even remembered (but it’s still part of tion novels, authors use the past tense indeed are necessary, but the History also helps us understand history). when describing the future. historianH makes something of the facts people and societies and the effect of With each day, a personal history When Lukacs writes that his- and offers an interpretation of the change in both. becomes bigger and relies heavily on tory is the “memory of mankind,” past. History is more than applying We know what history is not. We memory. Documents, for example, tell he means that in more than a general scientific theories know why history is important. But us facts, but they trigger memories sense. He includes individuals’ histo- on human behav- what is it? that make for a more complete history. ries, for the latter comprise the former. ior and claim- Historian John Lukacs writes Imagine if you forgot everything, Lu- A letter you write to a family ing, for instance, that no definition kacs ponders. Yes, member is as important to the history that class interest will do com- you could walk. of mankind as a memo issued by the primarily influ- pletely. He offers Yes, you could president. enced all human the following talk. Yes, you Both are a part of something behavior through- “good descrip- Both the could sleep. bigger. By reading a letter from an out time (scientific tion”: “History remembered and But, would ordinary person in the late 1800s, one determinism). is the memory of you walk through can, for instance, understand a little Important mankind.” the unremembered a window instead regarding, among many things, the historical ques- TROY He contends of a door? Would concerns and fashions of that day. tions always are KICKLER that history is make up you talk to a tree I remember the stories that my complex, and more than the instead of a per- grandmother told me about life in the scientific deter- recorded past: It is our history son? Would you cotton mills during the early 1900s. minism reduces the human experience the remembered know where and I did some research to learn more. to something that is, well, not human. past, and it is when to sleep? Many documents confirmed my History is more than offering an opin- what is not recorded or remembered. As I wrote last month, philoso- grandmother’s stories, but I realized, ion. Historians must do research and It always is growing and will be larger pher Soren Kierkegaard argues that as Lukacs writes, that history is more provide evidence for their interpreta- by the time you finish reading this the past truly is the only thing we than documents. tions. commentary. Think about this. His- know. The present only is a second Simply put, all lives are historic The study of history is important tory is much like a human life. Each when past and future meet, and the and, as Lukacs writes, “components of because it helps people develop what individual has a personal history. future is unknowable. (Faith can history of their times.” CJ historians label a “historical con- Some of it is recorded in legal docu- inform our opinions about the future, sciousness.” It helps form an identity, ments, diaries, and letters. but we don’t know. The past helps us Dr. Troy Kickler is director of the and if studied properly, history draws A lot of it is remembered. (You predict the future, but again, our pre- North Carolina History Project (www. us out of ourselves and forces us to have childhood memories.) And much dictions are based on the only thing 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 APRIL 2010 | CAROLINA JOURNAL Books & the Arts

Short Takes on Culture Book review Mark Sanford Didn’t Stay True Newberry Blasts Push to Socialism •Staying True ogy, and the creation of life-saving • Tommy Newberry, The War on Suc- ist thinks, providing statist definitions By Jenny Sanford medicines — and treated the errors, cess: How the Obama Agenda Is Shatter- for words like capitalism (the deliber- Ballantine Books flaws, and shortcomings that Ameri- ing the American Dream, New York: Re- ate exploitation of the poor and middle cans share with human beings around gency, 2010, 252 pages, $24.95. class by the wealthy). enny Sanford’s book, Staying True, the world as special defects of ‘our “Socialism sounds really nice,” is about more than her husband society.’” By Melissa Mitchell states Newberry. “Sounding best to and how he made the phrase Sowell also tackles the impli- Contributor those who understand it the least.” “hikingJ on the Appalachian trail” cations of the elitist intelligentsia in RALEIGH He points out that socialism directly into a national joke. It is also about education. “In the schools and col- hen I first started reading contradicts Biblical principles and in- how she fell in love with a man who leges, the intelligentsia have changed Tommy Newberry’s book, cludes a chart called “Socialism vs. the helped save the family farm after his the role of education from equipping The War on Success: How the Bible,” explaining why he believes the father’s death and her hopes for their students with the knowledge and WObama Agenda Is Shattering the Ameri- Bible and Judeo-Christian values con- life together. intellectual skills to weigh issues can Dream, I thought, I hate this book! tinually are under attack. Mark Sanford, the now dis- and make up their own minds into I cannot review it. It presented all of Tommy Newberry is concerned graced governor of South Carolina, a process of indoctrination with the the scary things that Obama and the about the future of the United States, turned his restlessness into a political conclusions already reached by the Democrat-led Congress are doing but he is optimistic. He points out that career. He won a congressional seat anointed,” he writes. that have the po- “staying positive after Jenny served as his campaign Sowell doesn’t attribute this tential to destroy does not mean manager. She did most of the parent- negative influence to evil intentions or our great country. remaining pas- ing. He had his aides call her when stupidity. He says intellectuals simply But, thankfully, sive.” he was going to be home late instead respond to incentives. I stuck with the T h r o u g h - of calling her himself. When she got — MITCH KOKAI book. In present- out the book, he her tubes tied shortly after the birth ing the negative, uses the analogy of their fourth son, he was in Wash- Newberry lays of the frog that ington. • “Crazy Heart” the groundwork is put into cold “My independence gave Mark Directed by Scott Cooper to present positive water and lulled tacit permission to leave that day, and, Fox Searchlight Pictures actions that can into complacen- I can’t help wondering, later as well,” offset the agenda cy as the water Jenny Sanford writes. “Crazy Heart” is easily the of the current ad- warms, never Her husband cheated on her and best movie in the last year. Jeff ministration. noticing that he then begged for her permission to see Bridges does an absolutely as- “For two is being cooked. his mistress. When the affair became tounding job as its main character decades, I have Newberry no public, Sanford moped after his Ar- “Bad Blake,” but it’s the depth of devoted my life to longer thinks that gentine fling on national television. the movie’s message that really figuring out what this analogy ap- The Sanfords tried to reconcile, speaks to the American people and separates the suc- plies to Ameri- but in the end Jenny had had enough. the problem with our government. cessful from the cans; in fact, he “He was not concerned about Bad lived a bad life. He’s an unsuccessful, the sees Americans my feelings,” she writes. “I had alcoholic. He married and divorced winners from the losers,” says New- as frogs ready to jump out of the water. become an abstraction to him, an ob- more times than the viewer can berry, a motivational speaker and best- Unlike many current conserva- stacle, and whether I forgave him or count. He hasn’t seen his son in selling author. To answer this question, tive authors who merely point out what not was irrelevant to what he would nearly 20 years. Yet he holds hope he worked with thousands of entre- is happening in the U.S. while offering do next.” for the future. He meets a woman preneurs and realized how important few concrete calls to action, Newberry — SARAH OKESON presumably half his age and falls in these individuals are to this country. provides the reader a simple, five-day love. He became disturbed by then-candi- plan to help them get started as grass- Like any story about an alco- date Barack Obama’s “divisive rheto- roots activists. He feels that one of the holic or addict, eventually he has to ric and his subsequent punitive policy biggest misconceptions today is that • Intellectuals and Society face the consequences of his addic- proposals,” which confused Newberry. “complex problems require complex By Thomas Sowell tion. Bad does. That’s the moment He is also confused by Obama’s anti- solutions.” Basic Books that has meaning in today’s politi- business attitude. He counters by saying that sim- cal world. His research shows that Obama ple is always better, pointing to the If you’re a regular reader of American politicians are ad- possesses the qualities that are com- massive health care bill as an example Thomas Sowell’s work, it can’t sur- dicted to spending. Look at our mon in most successful people. “These of how Washington does not under- prise you that he takes a dim view president. He can’t do anything individuals set what seem like unreal- stand this concept. of the role “public intellectuals” play without promising someone cash. istic goals,” says Newberry. Through Newberry opens with a letter to in society. There are grants for education, his unlikely rise, from the Illinois state President Obama, taking him to task Sowell’s recent book, Intellectu- grants for labor, handouts to banks, Senate, to the U.S. Senate, and then to for his anti-business attitudes that are als and Society, spells out some of the car companies, and a treasure chest the presidency in just a little over four contrary to American free-enterprise ways in which intellectuals and their in his Recovery and Reinvest- years, Obama has realized the Ameri- traditions. In all caps, Newberry be- “vision of the anointed” have harmed ment Act. Remember, much of that can dream of success and amassed seeches the President to “STOP THE the country over the years. spending was started or approved great wealth. WAR ON SUCCESS!” “The intelligentsia have changed by Republicans, so both parties are Yet Newberry notes that Obama Although Newberry opens on a the high achievements and rewards culpable. is proposing policies that will prevent negative note, he ends the book on a of some members of society from an “Crazy Heart” reaches its others from realizing the same goals. positive with letters from the American inspiration to others into a source of climax after Bad vomits in his bed Newberry provides the reader Dream Letter Writing Contest, which resentment and grievance for others,” following a bender. What has to with “Be Street Smart: Master the Stat- he sponsored. Written to children and Sowell writes. happen to drag our leaders from ist Vocabulary List,” defining “statist” grandchildren, these heartwarming “The intelligentsia have largely their drunken stupor? Hopefully, as “one who believes in the superior- letters tell the stories of hard-working ignored or downplayed the things we’ll still have a country left once ity of government over individual citi- family members who have made this in which Americans lead the world they sober up. zens.” country what it is today. — including philanthropy, technol- — ANTHONY GRECO CJ The vocabulary list also allows I was glad that I did not put this the reader to understand how the stat- book on the shelf to gather dust. CJ APRIL 2010 | CAROLINA JOURNAL PAGE 23 Books & the Arts Fall of Auto Industry a Tale With as Many Questions as Answers • Paul Ingrassia, Crash Course: The cars. GM bondholders had legal, con- better cars, and how were they able passed Ford as the nation’s largest car American Automobile Industry’s Road tractual first position in repayments to to manage American autoworkers company. In 1936 and 1937, the UAW from Glory to Disaster, New York: Ran- the company. Nevertheless, some of better than Americans did? Why did staged a sit-down strike in Flint, Mich., dom House, 2010, 306 pages, $28.00. the value simply was transferred by the American auto companies make and won recognition from GM. The the government to the union pension high-wage, high-pension, overpriced late 1950s witnessed the “tail-fin” era, By George Stephens fund by government fiat. The Cana- health-insurance contracts with the and Ford’s Edsel was launched, only to Contributor dian and German governments put up United Auto Workers union and re- flop. Compact cars were introduced in RALEIGH additional funds for Chrysler and GM peatedly give in to its demands with- 1960, “muscle cars” in 1964. An Arab n 2009 General Motors had nearly operations in their countries. out a fight, resulting in uncompetitive oil embargo caused gasoline prices to 100,000 employees, 6,240 dealers, 60 Classical economic theory holds production costs? increase, boosting the sales of fuel-effi- vehicle models, a strong union, and that enterprises must be allowed to fail, This reviewer wonders how the cient Japanese cars. Ia culture of arrogance stemming from to experience 535 automobile In the late 1970s, the Japanese be- years of dominance of the industry. “creative de- engineering ex- gan making cars in the United States While insiders believed that the com- struction,” be- perts in Congress (many of the plants were in the South) pany was indestructible, it was in dire cause they own had the expertise and proved to be good managers of financial difficulty. GM and Chrysler assets which to calculate the their workers, whom they included in had closed 22 factories between 2004 need to be re- Corporate Annu- production decisions. In 1985, GM in- and 2008, and they planned to close 16 organized. The al Fuel Efficiency troduced the Saturn brand with much more by 2011. More than 3,000 dealer- C o n s t i t u t i o n standards setting success, and the other companies also ships were eliminated or scheduled for does not decree mileage man- had some good years. it. that there be a dates for the cars By the early 1990s, the Sport Util- As a result, GM was being ana- General Motors, available to con- ity Vehicle boom began, soon followed lyzed, “diligenced,” by wonkish whiz Chrysler, or sumers. How did by a surge in pickup sales. These “light trucks” weren’t subject to CAFE mile- kids who didn’t know “a pound of Ford, nor does it lawmakers de- age restrictions, so carmakers could potatoes from pound-feet of torque,” allow Congress termine that they build them larger and give them more according to Crash Course, Paul Ingras- to spend money had the legal au- powerful engines; consumers snapped sia’s detailed history of the ascent and on them or any thority to decree them up. collapse of the industry. These outsid- business en- those standards? Daimler-Benz acquired Chrysler ers were staff to a presidential Auto- terprise. There What effect did in 1998. GM got into home-mortgage motive Task Force. is no longer a the standards lending in 2002. Ford lost $12.6 billion Chrysler sought bankruptcy pro- Pierce Arrow, have on vehicle in 2006 and borrowed $23.6 billion for tection and was given 30 days by the S t u d e b a k e r , design, especially a turnaround effort, remaining unbe- leader of the free world to partner with Hudson, or Wil- crashworthiness holden to government. Chrysler was eager Fiat. GM took bankruptcy and lys-Overland, and horsepower? sold to Cerberus at a loss. By Septem- emerged majority-owned by the U.S. and government What effect did ber 2008, losses mounted for all the government. Ford chose to go its own did not rush they have on companies. The collapse of Lehman course without a government bailout. to save them. sales? Brothers crashed the stock market, and The American taxpayers’ con- Chrysler bought Willys and its Jeep The bailout came almost exactly auto sales dwindled. GM and Chrysler tribution to the “rescue” included $50 model and has enjoyed great success 100 years after Henry Ford launched said they soon would run out of mon- billion for GM, almost $16 billion for with those vehicles. the Model T and Billy Durant founded ey without government aid, and Presi- Chrysler, and $40 billion for GMAC Ingrassia, who was for 25 years General Motors in Dearborn, Mich. dent Bush diverted bank-bailout funds (GM’s financial arm). Included in the the auto industry reporter for The Wall The intervening century saw enor- to them. payouts: parts suppliers, pension guar- Street Journal, describes both colorful mous twists and turns in the makeup In February, 2009 new President antees, and tax credits for GM. The to- and dull company and union leaders. of the domestic auto industry — driv- Barack Obama formed his Automo- tal tops $100 billion, which, as Ingrassia His is a complicated tale, full of ques- en more by consumer desires than tive Task Force. The government was points out, is enough to buy 5 million tions. How did the Japanese make government dictates. By 1927, GM now in charge. CJ

Books authored By JLF staFFers Selling the Dream Why Advertising is Good Business

By John Hood President of the John Locke Foundation

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

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

COMMENTARY The Fight For Control he filing period has ended, Enough already! We are fac- and the candidates are off ing a critical time in our state. It’s and running in the election time for bold leadership, thought- ofT 2010. There is a lot riding on ful decisions, and sound reasoning these elections, particularly for the to get back on track. Nothing is state legislature. It’s largely about more important than getting back control. to the principles that our country Republicans need to take six and state were founded on — of seats in the state Senate to wrestle liberty, limited government, per- control away from the Democrats sonal responsibility, property rights, who have held the majority for individual freedom, competition, more than a century. Nine seats are and free markets. needed to take back the state House, Whoever and whichever party which Republicans controlled brief- wins in 2010 needs to apply those ly in the mid-’90s. Many analysts principles to the challenges facing EDITORIAL say chances are good Republicans our state today. could take control of one Government exists or both bodies in 2010. to protect rights, not take Republicans are them away. Government Barack, energized and optimistic. has a role, but it must be For the first time, they’ve limited. Its role is defined fielded candidates in all in our Constitution. The The Cable Guy 50 Senate races. Demo- Constitution is a rulebook, cross North Carolina and coverage using Health Savings crats seem unruffled and not a list of suggestions. around the country, thousands Accounts as a backstop (including confident they will do Fiscal responsibil- of small business owners and Carolina Journal’s publisher, the John what they always have ity begins with sound human-resourcesA officials are scram- Locke Foundation). At press time, it’s done: win handily and BECKI budgeting, living within bling to determine whether they can unclear whether these plans can sur- maintain control. GRAY our means, and controlled continue providing the health insur- vive when ObamaCare kicks in. Aside from control spending. Taxes should ance coverage they’ve promised to The new law requires employer- of the state’s budget, be fair, equitable, and millions of employees. Or if they’ll provided health insurance to have a rules, regulations, and all things understandable. Every taxpayer have to offload workers to the govern- minimum actuarial value of at least government, whoever wins control ought to be able to add up what ment-approved “exchanges” that are a 70 percent of all the benefits covered. in 2010 also will control redistrict- they’ve paid. North Carolina’s tax major component of ObamaCare. Traditional medical plans — financed ing. Redistricting is that once-a- system originated in the 1930s and This is one of the many costs with premiums, deductibles, and co- decade reapportioning to divide is in need of reform, but any reform the law will impose on workers and pays — typically meet that standard. North Carolina’s population into should be revenue neutral, not employers. Finding benefit packages Consumer-driven employer that satisfy the letter of the law won’t plans may not satisfy that mandate. In 120 House districts and 50 Sen- an excuse to extract more money. be cheap — in financial terms or in these plans, employees pay for routine ate districts. Whichever party has Spending should be limited to es- workers’ freedoms. treatments out-of-pocket — mainly control can draw the districts to its sential services and prioritized by Just as there’s no truly competi- from their tax-free HSAs — but often advantage and secure a leg up over need. tive marketplace for residential elec- wind up spending less money overall the minority party until the next Government can’t be every- tricity, natural gas, water and sewer because their premiums are lower. In census is taken in 2020. thing to everybody, nor should it. service, and trash pickup, ObamaCare 2009, the average family premium in With much at stake, we’re If we’re going to provide for those amounts to a government takeover a consumer-driven plan cost one-third seeing lines drawn, fights picked, who truly need help, we have to of the medical industry. Much like less than its traditional counterpart. accusations thrown, and interparty limit that help to those who truly utilities, insurance companies will be Federal regulators have not bickering. The tea partiers are rally- need it. regulated heavily, price-controlled, said whether employees’ HSA con- ing, the coffee breakers are pontifi- Free markets, not government and subjected to the whims of govern- tributions will count in the actuarial cating, Libertarians are calling foul, regulations, create jobs. Entrepre- ment functionaries — and you’ll be calculations. If they won’t, consumer- Republicans are calling each other neurs, capitalism, and competition forced to buy coverage from a govern- driven plans may not pass muster RINOs, and Democrats promise to are what built the state’s economy. ment-approved supplier. with the feds. We could say, “If you like your More than consumer-driven take care of everyone with someone They are the only things that will cable company, you’ll love Obama- policies are at risk. Though the law else’s money. save it. Care,” but that’s unfair to the cable has a grandfather clause, allowing In the meantime, unemploy- The Founding Fathers spoke industry. After all, if you’re dissatis- insurance plans that were legal before ment is in double digits, we’re of liberty, limited government, per- fied with Time Warner, you can sign ObamaCare passed to remain in force, among the highest-taxed states in sonal responsibility, property rights, up for Dish Network or DirecTV, intall changing any benefits or coverage the region, 30 percent of our kids individual freedom, competition, fiber-optic lines, or watch tons of TV in the plans could invalidate them, can’t graduate from high school, and free markets. That’s the answer. shows online. forcing workers into the government- and 60 percent of those who do We just need to get back to it. That’s By contrast, if the limited op- regulated exchanges. graduate can’t do college-level what we must demand from the tions under ObamaCare don’t suit So if your insurance provider work. Our roads are crumbling, 2010 elections. CJ you, you’re stuck with them. And the has to tweak co-pays or deductibles bridges are dangerous, and some individual mandate in the legislation to keep its medical plans solvent, who were elected to serve the Becki Gray is vice president for makes it illegal to opt out. your health insurance could be illegal. people are serving time. outreach at the John Locke Foundation. For example, some 8 million March 21’s House vote approving employees take advantage of high- ObamaCare didn’t end the debate deductible policies for catastrophic over medical reform. It started it. CJ APRIL 2010 | CAROLINA JOURNAL PAGE 25 Opinion EDITORIALS COMMENTARY N.C.’s Job Tax Casting Insurers Regulations stifle economic growth, innovation As Villains he biggest tax on job creation in tions are costless just because the price North Carolina isn’t levied by tag doesn’t show up on the state’s f you want to know why Presi- I don’t know how health the Department of Revenue. In books. dent Obama, leaders of the insurers could improve their public Tfact, it isn’t levied by any single de- The second reason to believe Democratic Congress, and their image. But policymakers could do partment. It’s levied by dozens of state North Carolina’s regulations are out alliesI in activist groups and the something, if they were so inclined. agencies, large and small, every day. of line is that there are many checks press are trying to sell their health The existing health insurance The biggest tax on our economic on government regulation commonly care program by bashing insurance industry is the creation of govern- development is North Carolina’s used in other states and at the federal companies, you need only to look at ment interference in the market. antiquated, unwieldy, and expensive level — including exemptions for a few numbers. For decades, if people buy medical system of regulation. It raises the cost regulations that affect small busi- I mean the numbers on health services with cash, it has cost them of buying land, breaking ground, nesses adversely — that aren’t present insurance profits. as much as 50 percent more than forming contracts, hiring labor, acquir- in North Carolina. The profit margin in health in- paying for the same services via an ing raw materials, buying energy, Finally, you can find a rationale surance is low, typically 4 insurance claim, because shipping goods, and retailing services. for regulatory reform by zeroing in percent or less. Blue Cross of the income and payroll Unwise regulation costs many busi- on one of our state’s most sweeping & Blue Shield of North taxes applied to cash but nesses more than the state’s high regulations of the past decade: the Carolina posted a net mar- not to insurance premi- income-tax rates do. so-called Clean Smokestacks Bill of gin of just over 2 percent ums. These higher costs might be 2002. The legislation required electric last year. So the fact that In the absence of this worth paying if North Carolinians utilities to reduce emissions associ- Blue Cross is planning distortion, health insur- received health and safety benefits ated with the formation of ground- double-digit increases in ance probably would look balancing out the higher prices and level ozone. Proponents said the rules its premiums next year more like other forms lower wages these regulations impose would cost $2.3 billion while produc- does not identify the of insurance. Individu- on us. But such benefits often prove ing significant improvements in North culprit. It just identifies als and families would illusory. Carolina’s air quality. the problem — excessive own their policies, rather There are at least three good rea- Instead, as JLF economist Roy demand for medical ser- JOHN than having employers sons to believe that North Carolina’s Cordato recently demonstrated, the vices of marginal benefit, HOOD make all the decisions regulatory system costs too much for real cost of the Clean Smokestacks Bill financed in ways that and leaving workers too little gain, and that reforming it will be at least $3.2 billion. As for the insulate patients from the feeling trapped in their would boost our state’s competitive- benefits, Cordato found North Caro- real prices of the care they consume. jobs because they can’t take their ness. lina’s air has gotten cleaner in recent The numbers that really mat- health plan with them if they leave. First, North Carolina business years, but so has everyone else’s. ter to Obama & Co. are the results Individual and family subscribers leaders consistently point to regula- In short, this one regulation of public-opinion polls. Consistent- would pay reasonable premiums, tion as an impediment to growth. To jacked up North Carolina’s energy ly, they show that voters generally often fixed for multiyear terms, and be sure, some regulations are neces- prices by hundreds of millions of dol- like medical providers and gener- most would file insurance claims sary to protect our rights and do meet lars a year for no good reason. Like ally don’t like only rarely, a cost-benefit test. The point is that other regulations, it’s a job-destroying health insurers. after being in a politicians shouldn’t pretend regula- tax. CJ That’s why the serious accident latter are being Polls show or developing a targeted. The major illness. Left needs vil- people like That’s If Gall Were Gold lains to make their medical the direction their fictional employers and account of providers individuals are Legislators seeking taxpayer bailout health care moving now, inflation seem thanks to the f you leave a pot of money in Ra- State Sen. Dan Clodfelter, co- plausible. proliferation of leigh too long, state legislators will chair of the Senate Finance Commit- You can see the problem clear- consumer-driven health plans that try to get their hands on it for other tee, told Triangle Business Journal that ly by looking at a poll Gallup did combine high-deductible insur- Ipurposes. Consider the North Caro- it had been a mistake for the state to last summer. Asked about names ance policies with tax-free savings lina Escheat Fund. dip into the fund’s principal — point- or groups whose health care reform accounts from which patients pay Managed by the office of the ing out that the money belonged to recommendations they had confi- for routine services. The John Locke state treasurer, the escheat fund holds someone else. dence in, 73 percent of respondents Foundation decided years ago to unclaimed money such as abandoned There’s more to the story than expressed confidence in doctors, offer two such plans to our em- bank deposits and uncollected inheri- that. The General Assembly also voted and 61 percent said the same about ployees, and we have experienced tances. Traditionally the treasurer has to extend a $22 million “loan” to the hospitals. Even drug companies (40 virtually no premium increase over held the money in trust, attempting to troubled Global TransPark project. percent) got a higher rating than the past two years. find the owners and return it to them As Carolina Journal’s Don Carrington health insurers (35 percent). We don’t hate our health while spending the investment pro- reported last month, the principal and Since then, the only significant insurer. As consumer-driven health ceeds on financial aid for in-state col- interest on the loan now exceed $37 change in public sentiment has been care continues to grow, other Amer- lege students. Years ago, the General million — and the TransPark has no a dramatic decline in public con- icans may change their percep- Assembly authorized the expenditure realistic chance of repaying any of the fidence in the ability of President tions of health insurers, too. That’s of the principal of the escheat fund, money any time soon. Obama and Democrats in Congress one reason the Left must destroy not just the investment returns, on Policymakers took money to recommend the right course of consumer-driven health care and financial aid. Since then, the value of belonging to someone else and spent action. Republicans started low on impose government-run health care the fund has dropped precipitously. it on their own pet projects. Now law- the scale and likely haven’t im- soon, before it runs out of villains to According to the treasurer’s makers are talking about compelling proved their situation much. Voters bash. CJ office, if present trends continue the North Carolina taxpayers to bail state have little faith in politicians of both escheat fund will drop from $535 mil- government out with general revenue. parties at the moment, a sentiment lion last year to $332 million in 2010 If we could turn gall into gold, that is both reasonable and reassur- John Hood is president of the John and $135 million in 2011, disappearing North Carolina would enjoy a perpet- ing. Locke Foundation. altogether in 2012. ual surplus. CJ PAGE 26 APRIL 2010 | CAROLINA JOURNAL Opinion EDITORIAL BRIEFS Innovation And Entitlements

nnovation is often presented as a means of controlling the costs of entitlements. Josh Barro of the Manhattan Institute argues that Ithose making such arguments misunderstand the nature of these programs. The two main entitlement programs are Social Security and Medicare. “It’s hard to imagine a simpler govern- ment program than Social Security, which involves taking money from some people and sending it to other people,” says Barro. “No amount of innovation will allow the government to send out a $1,000 check at a cost below $1,000.” The program also has little administrative fat; over 98 percent of its costs are the benefits checks it sends out. “The only ways to save real money on Social Security are to send out smaller checks or fewer checks,” says Barro. Medicare and Medicaid, programs in which the government provides services, offer some scope for savings through innovation. How Can We Create Jobs? Tort, tax, and insurance reforms could reduce the cost of health care somewhat, and thus sk just about anyone what the top economic Yet there are questions here, too. In the days reduce Medicare costs. issue is in the country today, and they will when most jobs required a specific number of hours Unfortunately, most of the innovation in say jobs, and it’s easy to see why. Since the per week, a mandated workweek made sense. But health care involves providing better care at a Arecession began in late 2007, 8.5 million jobs in the today, more and more jobs are salaried without a greater cost, not providing the same quality of nation have been lost, and the national unemploy- specific number of hours attached. People work care at a lower cost. Medicine also suffers from ment rate has jumped from 4.4 percent to 10 percent. until the job is done. Obviously in these cases, a flat labor productivity, as it still takes about as Here in North Carolina the numbers are equally shorter required workweek doesn’t apply. many medical professionals to treat a patient disturbing — 280,000 jobs lost and a jobless rate ris- In addition, if the same pay is to go with the now as it did several decades ago. This itself ing from 4.4 percent to over 11 percent. shorter workweek, then this would increase the cost leads costs to increase faster than inflation, as So what can be done? With of workers, and businesses actually would be moti- wages rise to attract workers who might other- most economic forecasters pre- vated to reduce employment. Conversely, if pay is wise be attracted to fields with rising produc- dicting a slow increase in jobs — to be cut along with hours worked, then the result is tivity. at best — what are the best ideas a reduction in everyone’s salary. for giving people work and a Another tactic is for the government to use paycheck? the tax code to encourage businesses to add jobs. Freedom and social well-being As you might expect, there This means reducing the cost to businesses of add- is a range of suggestions. At one ing jobs by reducing certain taxes. For example, The combination of greater economic and end of the spectrum is the idea this could be accomplished by lowering payroll or political freedom increases people’s quality of that the government should corporate income taxes, or giving tax credits to firms life. Research suggests, however, that greater simply hire the unemployed. that increase their work force. economic freedom is more likely to result in Certainly this could be done, but MICHAEL Past experience with this kind of plan shows improved social welfare, writes Stephen F. it would be costly. For example, WALDEN it can create jobs, but there are two concerns. First Austin State University economics professor if the government hired the 8.5 is the question of whether the jobs created using Michael D. Stroup for the National Center for million unemployed and paid the tax reduction would have been created anyway Policy Analysis. them the average salary (roughly $40,000), the an- without the tax cut. nual cost would be $340 billion. Stroup bases his research on commonly It’s hard to know. Second is the issue of how There are other issues with this approach. available measures of political freedom, Free- the tax reduction used to encourage new jobs is What jobs would the new government employees dom House’s political rights index, and eco- funded. If the government has to increase other perform, and would every individual be qualified nomic freedom, the Fraser Institute’s Economic taxes or go further into debt, then some economists for his assigned job? Also, would the new govern- Freedom Index. In both cases, Stroup valued worry this will slow economic growth and increase the indexes for each country on a 1.0 (least ment workers compete with private sector workers, thereby causing unemployment in the private sector joblessness elsewhere. free) to 10.0 (most free) scale. Social welfare Many economists think the best approach was quantified using health, education, and to increase? In other words, would unemployment simply be shifted rather than being reduced? for encouraging jobs is for the government to do disease-prevention measures. less! Have the government reduce taxes across the In countries with little political or eco- Finally, how would the $340 billion annual cost be financed? If it is paid for by increasing taxes, board, reduce spending, reduce the national debt, nomic freedom, a one-unit increase in eco- and effectively get out of the way of private entre- nomic freedom is associated with a 1.3-year would those households paying more taxes reduce their spending and thereby cause other jobs to be preneurs. The notion is smaller government equals increase in life expectancy, a reduction in infant bigger private sector. But the associated “political mortality by 16 deaths per 1,000 births, and a cut? Or, if the program is financed through borrow- ing — thus adding to the national debt — would the lifting” for this approach is extremely heavy. 10-percentage-point increase in the percent- government’s higher debt load also slow economic So the policy options for boosting jobs couldn’t age of 2-year-olds vaccinated against diphthe- growth and hike unemployment? be wider — from the government should do a lot ria, pertussis, and tetanus. By comparison, a What about the idea of the government man- more, to the government should do a lot less. But one-unit increase in political freedom results dating a shorter workweek, meaning that compa- one conclusion is certain: there is no easy plan — no in a three-month reduction in life expectancy, nies would have to hire more workers to accomplish “silver bullet” — for getting us quickly back to job reduced infant mortality by only four deaths the same amount of work? This idea is appealing growth. CJ per 1,000 births, and a negligible effect on the for two reasons. First, it would cost the government vaccination rate. CJ virtually nothing. And second, it would “spread the Michael Walden is a William Neal Reynolds Dis- wealth” — here jobs — around to everyone. tinguished Professor at North Carolina State University. APRIL 2010 | CAROLINA JOURNAL PAGE 27 Opinion Events Turn Burr from Vulnerable to Strong

couple of months ago, Sen. Burr in the fall have yet to capture the the congressman who led the reform points higher than the black equiva- Richard Burr’s re-election cam- imagination. The most widely known, of the Food and Drug Administration. lent. paign looked in trouble. His Secretary of State Elaine Marshall, cur- Elizabeth Dole, on the other hand, Finally, Democratic fundraising Aapproval ratings were very low — un- rently loses to Burr in a head-to-head found it difficult to demonstrate much has hit a bit of a wall. As is traditional der 35 percent in some polls. Repub- by about eight points — her competi- in the way of accomplishments dur- for the governing party, Democratic licans looked at North Carolina and tors, former state Sen. Cal Cunning- ing the 2008 campaign. Much of Sen. organizations are still pulling in more saw the state turning a bluer shade of ham and lawyer and fundraiser Ken Kay Hagan’s victory two years ago is money than their Republican counter- purple every year. Lewis, do no better. attributable to the fact that Dole was parts. But their advantage is largely in In 2008, Barack The Democrats continue to see seen by many independents — and the House. Burr’s efforts have ac- Obama became some positives in Burr’s numbers. even some Republicans — as having celerated impressively. He has raised the first Demo- And, to be sure, he is still generally little impact in Washington. about $7 million this cycle, and there cratic presidential below the 50 percent level in polls — Moreover, and again unlike have been a number of large fundrais- candidate to win although a February Rasmussen sur- Dole, Burr will not face the Obama ers since he formally announced his here since 1976. A vey had him right at that level. This turnout machine. It could be argued re-election bid at the end of February. little-known state is a threshold generally considered an the president pulled in the state’s 15 He has about $4 million cash on hand. senator from Guil- important warning sign for incum- electoral votes as he rode Hagan’s Of his Democratic opponents, Cun- ford County beat bents. The Democrats argue the public coattails two years ago — after all ningham is best off, but he has only the hitherto po- ANDY has not warmed to Burr because he is Hagan received the votes of about $300,000 in the bank. The Democratic litical “rock star” TAYLOR a critical part of the Republicans’ ob- 107,000 more North Carolinians. But nominee will have to spend a lot to Republican Sen. structionist strategy in the Senate. This there is little doubt the Obama cam- win the primary and then get in line Elizabeth Dole by view was reinforced when Burr voted paign’s huge resources and its capac- behind a host of powerful and wor- a comfortable 9 percentage points. last month against a bill extending ity to place an office in every nook ried senators as he or she waits for But that was so 2009. In the unemployment benefits. The legisla- and cranny of the state benefited all handouts from the national party. wake of Scott Brown’s “Massachusetts tion had been stalled by the cantan- Democrats on the ticket that year. The Whereas Burr once looked vul- Miracle” and the president’s tank- kerous Kentuckian Jim Bunning’s use president, of course, won’t be on the nerable then, he now appears quite ing poll numbers, Burr looks safer. of the “hold” — a practice senators ballot this time. As a result, his cam- strong. If things continue as they have National Democrats are now play- can employ to stop a bill from coming paign apparatus is unavailable, and over the first quarter of this year, he’ll ing defense, not offense. They view to the floor. he won’t be present to turn out core become the first person since Sam their task as one of protecting what Burr has been quietly effective, groups of Democrats — particularly Ervin to hold onto North Carolina’s they have — holding on to vulnerable however. He has been working on a young voters and African-Americans. Class III Senate seat. Not a bad accom- Senate seats in places like Arkansas, large legislative agenda with a par- In 2008 about 67 percent of registered plishment. CJ California, Colorado, Delaware, Illi- ticular focus on veterans and military African-Americans voted in North nois, Indiana, North Dakota, Nevada, personnel, tobacco, health care, and Carolina. This essentially matched the Andy Taylor is Professor and Chair and Pennsylvania — not grabbing issues of direct concern to North Caro- proportion of the white population of Political Science in the School of Public what they don’t. What’s more, the linians such as federal recognition for that voted. In 2006, however, white and International Affairs at N.C. State three Democrats vying to challenge the Lumbees. He is now more than turnout was about 10 percentage University. Conservatives Need to Be on War Footing

s I write this column, Barack who underestimate President Obama Obama’s policies openly will continue remaking of the nation as we have Obama has signed into law the do so at their own electoral peril. Un- to be targets. First, the liberal estab- known it from its inception. We can- issue that has and will define like Carter, Obama is a true believer lishment went after Rush Limbaugh; not count on a bad economy to propel hisA presidency — health reform. After who understands that transforming more recently, they’ve trained their us to a majority, or outrage over the a year of stops and starts, imposed policy translates into votes — and a sights on former Vice President Dick health care bill. deadlines and citizenry who is more reliant on the Cheney. Yes, both remain very important rancorous debate, federal government. The newest devil for progres- parts of the debate. it appears that Also unlike Carter, Obama is a sives and the Left is Glenn Beck, and But we have an obligation in our President Obama streetwise, tough politician who will by extension the Fox News network. messaging and advertising to illus- and his allies will not give an inch when it to comes to One only has to watch MSNBC trate in stark terms what “Obama’s prevail. his vision of a “New America” — one and its commentators’ rants against transformation” means to America, He will, in which is modeled after European Beck, or read The Washington Post’s its families, traditions, and culture. In fact, have a victory. socialism. two recent hit pieces on Beck — one short, we must campaign against the And where I come Starting today, the Obama ad- by the discredited former New York Left as if we were at war. from, a victory is a ministration will try and position the Times editor Howell Raines, the other One thing we know for certain victory. MARC president as a modern-day LBJ — get- by Howard Kurtz, who hosts the is that Obama and his cohorts are Many of my ting things done for the middle class CNN show “Reliable Sources,” to un- committed to their ideology and they Republican and ROTTERMAN and the poor. The administration, and derstand how far the progressives will will do what it takes to stay in power. conservative breth- its allies in the mainstream media, will go to torpedo Beck and Fox. To win, we must understand our op- ren view this par- echo Obama’s belief that he is a trans- Obama and his allies view gov- ponents and maneuver according to tisan piece of legislation as the stake formative figure and that health care erning and campaigning in the same circumstance. CJ in the heart of the Left, and some are legislation is akin to the historic civil context — “winning” means all-out already measuring for new drapes in rights crusade of the 1960’s. war and by any means necessary. In the office of the speaker of the House. And make no mistake about it contrast, Republicans view campaigns Marc Rotterman worked on the na- In fact, in some quarters of the — Obama’s next agenda item is im- from a management perspective, sepa- tional campaign of Reagan for President Republican Party “irrational exuber- migration reform, which — unless it rating electing candidates from the in 1980, served on the presidential transi- ance” has taken hold. Barack Obama is defeated — will broaden the Left’s nuts and bolts of governing. tion team in 1980, worked in the Reagan and his presidency are being com- constituency, strengthen unions, and To compete and to win in 2010, administration from 1981-84, is a senior pared to that of Jimmy Carter. undermine the rule of law. Republicans and conservatives must fellow at the John Locke Foundation, and a That, in my view, is a mistake. By the way, Obama and his team outline and define what Obama has former member of the board of the Ameri- Conservatives and Republicans will not stop there. Those who oppose in store for this nation. And that is the can Conservative Union. PAGE 28 APRIL 2010 | CAROLINA JOURNAL Parting Shot Hello, America, My Name is Johnny Edwards (a CJ parody)

By Hedley Lamarr You mean Hillary Clinton? CJ Celebrity Reporter … yeah, or that guy from Illinois RALEIGH who had less experience in public of- e’ve heard from his mistress fice than me! And both of them have Rielle Hunter, we’ve heard worse hair. from his soon-to-be-ex-wife WElizabeth, and we’ve heard from his OK, so you are now separated, former aide Andrew Young. Now he and you obviously have a decent rela- says, it’s time for America to hear from tionship with Rielle and your daugh- him about the scandals from his 2008 ter. Why not just be with her at this campaign for president of the United point? States. What I wanted was a variation I met Johnny Edwards for the from my Two Americas campaign first time the day of our first interview, theme. I wanted two families, but it at his home on Figure Eight Island, didn’t work out. I will probably end near Wilmington, N.C. There were no up with Rielle. rules for the interview — just a request that his words be his words and that I What are you like as a father? bring my cameras and take lots of pho- It’s great bringing another child tos. And some hair gel. into the world. But it is a bummer hav- My first impression of Edwards, ing to feed her and change diapers and when he opened the door of his beach stuff. I can’t afford to hire any help. house, was that he is much more hand- And it would have been a lot easier if some than all those National Enquirer Andrew were still around to do that spy photos suggest. He was wearing CJ kind of [expletive]. Like he did during a fresh white shirt and grey athletic Former U.S. senator and vice presidential candidate John Edwards, with friends, the campaign before he ratted me out. shorts. relaxes in casual attire at his Figure Eight Island home. (CJ spoof, made-up photo) During the interview, our talks We should make it clear. You’re differently, what would it be? Now the National Enquirer is up were sometimes interrupted by the not making a penny from this inter- The only big thing that sticks out for a Pulitzer [for its coverage of the presence of a creepy guy from across view. is that I should not have asked Andrew scandal]. How do you feel about that? the street who kept coming to the front I am not making a penny from Young to claim to be the father of my I wish they would have used door trying to figure out who I was. this interview, but I am going to have baby. I should have asked someone some better pictures of me. Or even “Don’t worry about him. He is to figure out how to make some money else who could have pulled it off with asked me for a special photo session, known in the inner circles of North soon. The divorce, the child support, a little more credibility. like this one. They always shoot your Carolina Democratic politics as the the federal investigation are draining bad side, you know. Wilmington Financier. He always me. A great many people say you’ve wants to know what’s going on in my ruined your political career, you’ve OK, Johnny, it is about time to life,” Edwards said. Is Rielle OK with you doing this ruined your life. You don’t see it that wrap this up. interview? way? Speaking of that, can I see the You have been silent for a while. She is very supportive. She be- I don’t care what Andrew de- photos before you publish the story? Why now? lieves that it will help me be at peace cided to title that book. I never really I feel comfortable talking now, and knows how important truth is to believed I was much of a politician. I No, Johnny, but if you are un- because Rielle went public and made me — practical truth, spiritual truth, mean, for crying out loud, John Ker- happy with them you could call Larry a statement admitting I was the father and convenient truth. ry and I couldn’t beat that redneck King or Keith Olbermann and express of her child. I didn’t think I could ever cowboy George Bush. And in 2008, I your concerns. speak until she did that. If you could have done anything couldn’t beat the “It girl” of the ’90s … OK, thanks. CJ