• East Coast’s Longest • Homeschoolers Pier Proposed for N.C. Gather in Numbers

BRAC Mixed Bag for State C A R O L I N A Diversity Plans for ECU

Statewide Edition A Monthly Journal of News, Analysis, and Opinion from July 2005 • Vol. 14, No. 7 the John Locke Foundation www.CarolinaJournal.com JOURNAL www.JohnLocke.org State to Counties: We Like School Consolidation Legislators send message that would be deconsolidated in Meck- lenburg County would have to share in many ways that they administration funding for a single district. prefer larger districts But the plan could also be seen by many as a message to residents of Mecklenburg County: Deconsolidation By SAM A. HIEB of the city-county school system won’t Contributing Editor be easy. CHARLOTTE But the budget plan wasn’t the onsolidate or deconsolidate? first message legislators have sent. In That’s the question. April, a bill was killed in committee Few would dispute that the that would pave the way toward the Ctrend in public education over the last 30 deconsolidation of the Charlotte-Meck- years has been toward the consolidation lenburg schools. of county and city school systems. And The bill was introduced by Reps. it’s clear a good many power brokers in John Rhodes and Jim Gulley, both Raleigh want that trend to continue. Republicans of Mecklenburg County. In early May, Senate leaders backed Many school districts are struggling with the puzzling problem of deconsolidation Entitled the Mecklenburg Education off a plan in their proposed state bud- Freedom Act, it’s described as an “act get to pay for only one school district date them into one district, which would city school districts with county districts, to provide for education freedom for administration per county. The funding save $12 million in the state budget. saying there was no indication such a students, parents, and teachers in Meck- restriction was aimed at encouraging the The plan was proposed two years move would save money. 11 remaining counties with separate city after the N.C. Board of Education said Under the funding limit that was and county school districts to consoli- it would not pursue the merger of the removed from the budget, districts Continued as “State to Counties,” Page 3 Think Tank Gives N.C. Mixed Reviews on Welfare Reforms Caseload has been cut, but In a policy report published last fall President Bill Clinton. benefits that rated all the states on the results of The policy report, “Implementing • implement “diversion” pro- state’s poverty rate their policies, the Cato Institute gave the Welfare Reform: A State Report Card,” grams such as requiring mandatory job Tar Heel state a “C” grade, along with 19 evaluated state programs based on two searches or seeking alternative resources reduction is among worst other states. Idaho, one of four states to overarching criteria: structural reforms before receiving benefits earn an “A,” received the highest marks, and quantitative results. Cato graded • implement time limits for re- while Vermont ranked the lowest among states on how effectively their reform ceiving benefits By PAUL CHESSER the nine states that received an “F.” measures: • enforce their own welfare poli- Associate Editor Cato reviewed the states’ policies • limit benefits for families that cies. RALEIGH and practices since the federal overhaul have additional children while on wel- Cato also measured states’ results Washington, D.C.-based liber- of the welfare system in 1996, through fare in five categories: tarian think tank gives North the Personal Responsibility and Work • require unmarried mothers • caseload reductions Carolina a mixed review in a 50- Opportunity Reconciliation Act. The law under age 18 to remain in school and Astate analysis on the implementation of was pushed by the Republican Congress live with an adult welfare reform. and signed into law by Democratic • require work as a condition for Continued as “N.C. Gets,” Page 2

Best State Child Care Policy? The John Locke Foundation NONPROFIT ORG. Contents 200 W. Morgan St., #200 U.S. POSTAGE Raleigh, NC 27601 PAID RALEIGH, NC State Government 3 PERMIT NO. 1766 Washington Watch 6 Education 8 Tax Credits for Parents 54% Higher Education 12 Gov’t Grants for Centers 33% Local Government 16 Not Sure 13% Books & the Arts 20 Opinion 24 Parting Shot 28 % of N.C. Respondents in Oct. 2002 JLF Poll CAROLINA C a r o l i n a North Carolina JOURNAL Journal N.C. Gets Middling Grade on Welfare Reform Continued From Page 1 Richard Wagner Editor • poverty rate • child poverty rate Don Carrington • teen birthrate Executive Editor • work participation

Paul Chesser, Michael Lowrey Work first, time limits working Donna Martinez, Jon Sanders Associate Editors The 1996 law allowed states flex- ibility for the implementation of their Chad Adams, Shannon Blosser, welfare reform programs. States were Andrew Cline, Roy Cordato, given federal dollars to distribute Bob Fliss, David Hartgen, through the Temporary Assistance to Summer Hood, Lindalyn Kakadelis, Needy Families program, with work George Leef, Marc Rotterman, requirements and time limits attached as Karen Palasek, R.E. Smith Jr., Jack Sommer, John Staddon, a condition for receiving the funds. George Stephens, Jeff Taylor, The results have been largely im- Michael Walden, Karen Welsh pressive. In data culled from the U.S. Contributing Editors Department of Health and Human Services and from the National Center White House photo Jenna Ashley Robinson, for Policy Analysis, Cato reported a 58 President George W. Bush addresses the audience during a program honoring graduates Paul Messino, Brian McGraw percent reduction in welfare caseloads of welfare-to-work programs in the East Room on Jan. 14, 2003. Editorial Interns between 1996 and 2002. “The employment rate for never- individual welfare reform policies. and transportation, the state encourages married single mothers rose from 46 to “The states with the highest grades work and saving while keeping people 68 percent during roughly the same time ranked in the top third of the states in off welfare.” period,” wrote Cato’s welfare policy both structural reforms and quantitative Perhaps the greatest incentive that Published by analyst, Jenifer Zeigler, citing NCPA measures,” Zeigler wrote. drives the caseload reduction in the state The John Locke Foundation findings. North Carolina received a perfect is its time limit. The federal law only al- 200 W. Morgan St., # 200 But from state to state, reform score for its “family cap” policy, which lows for lifetime payments of up to five Raleigh, N.C. 27601 (919) 828-3876 • Fax: 821-5117 strategies and quantitative results vary means families that bear children while years, so the state must pay if it wishes to www.JohnLocke.org greatly, Zeigler wrote. Differences exist on welfare do not receive higher pay- grant benefits beyond that time period, not only because of types of programs, ments because of the new child. with some exemptions. North Carolina Jon Ham but also because of the states’ popula- However, the state rated a “zero” received extra credit from Cato for its Vice President & Publisher tion makeup due to factors such as sizes for the way it handles the requirement added limit of ineligibility for three years of urban areas, number of immigrants, for unwed teen mothers to remain in after providing benefits for two years. John Hood and economic changes. Degrees of suc- their parents’ home. While other states North Carolina also ranked in the Chairman & President cess in welfare programs, measured have stringent policies, Cato said North middle among the states for its sanc- quantitatively, must take those factors Carolina offered too many exemptions, tions policies. The most stringent of Bruce Babcock, Herb Berkowitz, into account. which makes it less effective. such policies bear serious consequences John Carrington, Sandra Fearrington, “Some programs also take time to But Cato offered praise for the for welfare recipients who do not meet Jim Fulghum, William Graham, produce results,” Zeigler said, “espe- state’s employment requirements as a requirements or are still on the program Lee Kindberg, Robert Luddy, cially programs designed to discourage condition for benefits. Recipients, who when their time limit is up. Such conse- William Maready, J. Arthur Pope, self-defeating behav- can receive benefits quences usually bring a reduced welfare Assad Meymandi, Tula Robbins, ior such as teenage for up to 24 months check. Cato categorized North Carolina’s David Stover, Jess Ward, pregnancy.” after moving from Andy Wells “The state has cut its sanctions policy as moderate. Board of Directors She said that welfare to work, are welfare programs caseload by nearly 69 ineligible afterwards North Carolina’s outcomes should not be judged percent since welfare for three years. solely on their re- “That approach Among all the states, North Caro- Carolina Journal is a monthly journal sults. reform was instituted.” may anger critics who lina ranked eighth in percent of reduc- of news, analysis, and commentary on state “It is difficult to — The Cato Institute’s call such strict lim- tions in its welfare caseloads. and local government and public policy issues place a numeric value its unfair to families But in other measured outcomes, in North Carolina. on structural reforms Jenifer Zeigler facing major set- the state did not fare as well. It ranked that encourage self- backs, but it certainly near the bottom (48th) in overall poverty ©2005 by The John Locke Foundation sufficiency and per- works,” Zeigler said. rate reduction, although it finished a Inc. All opinions expressed in bylined articles sonal responsibility,” “The state has cut more respectable 12th when only child are those of the authors and do not necessarily Zeigler wrote. its caseload by nearly 69 percent since poverty rate reduction was measured. reflect the views of the editors of CJ or the “The quantitative results used welfare reform was instituted.” North Carolina’s teen birth rate staff and board of the John Locke Foundation. in the report are certainly indicators She said that the program is de- reduction placed it 20th among the Material published herein may be reprinted as of successful welfare reform, but they signed to keep families off welfare. In states. But Cato docked it several points long as appropriate credit is given. Submis- sions and letters are welcome and should be cannot reflect important accomplish- addition, North Carolina uses other “because of its numerous exemptions directed to the editor. ments such as encouraging community tools as an incentive to show families to the requirements for living arrange- organizations to take over social services “that they are better off working than ments for minor parents.” CJ readers wanting more information or changing the perception of welfare on welfare.” However, the report did praise the between monthly issues can call 919-828-3876 as a safety net rather than a lifestyle “Struggling families are often state for its emphasis on local control of and ask for Carolina Journal Weekly Re- subsidy.” reluctant to accrue assets for fear of the Work First programs. port, delivered each weekend by e-mail, or visit exceeding eligibility requirements if “Local input provides more ef- CarolinaJournal.com for news, links, and ex- Report card studies progress they need to turn to welfare,” Zeigler ficient social services to those who are clusive content updated each weekday. Those wrote. “By raising the limits on allow- truly in need,” Zeigler wrote. interested in education, higher education, or Therefore, the Cato study sought able savings and automobile value and “North Carolina is on the right track local government should also ask to receive to capture whether the states are mov- providing services to support the work- overall, but there is certainly room for im- weekly e-letters covering these issues. ing in the right overall direction in their ing poor, such as subsidized childcare provement.” cj CAROLINA July 2005 JOURNAL North Carolina 3 State to Counties: We Like School Consolidation Continued From Page 1 lenburg County by providing for the Mecklenburg County school administrative unit to be separated into multiple administrative units.” Basically, the bill would have set up a referendum in November. A “For” vote would have divided the Mecklenburg County Schools into smaller administra- tive units on July 1, 2006. The Charlotte-Mecklenburg Board of Education would have been abolished in the process. There would have been no 2005 election for the school board, and the terms of current members would have been extended until new boards of educa- tion would have been elected under the plan. A petition filed to introduce the bill points out that when Charlotte-Mecklenburg schools consolidated in 1960, the system had fewer than 60,000 enrolled students. Today, the system has more than 121,000 students, with enrollment expected to exceed 170,000 students by 2014. Incredible growth

The incredible growth has rendered the central Deconsolidation does not seem to be in the future for Guilford County students in the state’s third-largest district administration incapable of responding to the concerns of parents in north Mecklenburg County. independent suburban districts surround a center-city might not be the answer. “Whereas many citizens believe Charlotte-Meck- district almost always feature a center-city district that “The more I learn, the less I think it’s necessary. lenburg schools is an unnecessarily large organization; serves predominantly low-income racial minorities, I don’t see it as a social-justice issue where one group that its size has made it unresponsive to the needs struggles for money and produces unacceptably low of kids is being deprived of opportunity. There’s a of families who generally seek local ownership, less academic results. That’s not a recipe for a healthy ur- difference between equity and equal funding. I think bureaucracy and more control over their children’s ban region, even if the residents of the affluent, cozy people get hung up on money sometimes to the exclu- lives,” the petition reads. suburban districts are quite happy.” sion of reason,” Jacobs said. But while the bill failed, it nevertheless sparked About 150 miles up Interstate 85-40 is Mecklen- Consolidation of school systems has been a hot public debate over school deconsolidation. The issue burg’s mirror image. Orange County is still split into topic since 2003, when a decision by the N.C. Court has become hot as school systems around the state two school systems, with Chapel Hill-Carrboro City of Appeals allowed the merger of the Kings Mountain grow exponentially, and many legislators and parents Schools receiving $12 million more in funding than School District into Cleveland County Schools, along believe control is getting away from school boards and county schools through a special schools tax inside with Shelby City Schools. administrative units. the town limits. In a phone interview, Rhodes said the issue is Challenging a merger Achievement gaps definitely not going away. The Kings Mountain Board of Education, indi- “The people in my district spoke very clearly The $25,000 taxpayer-funded study led by vidual Kings Mountain board members, and parents of and very loudly that they wanted to break away from Madeline Grumet of UNC-Chapel Hill’s School of children attending Kings Mountain schools challenged the Charlotte- Mecklenburg school system,” he said. Education, concluded that this inequity in funding the merger, arguing that the district operated in two “We’ve already had the citizens of Mecklenburg County was a major factor in the achievement gap between counties, Cleveland and Gaston. Therefore, both county absolutely come out in droves in favor of deconsolida- students in county and city schools. commissions would have to approve the merger, and tion, wanting their school systems to be smaller, more While the report didn’t explicitly recommend the Gaston County Commission had not done so. efficient, safer. merging the two systems, it did recommend increased Though the Kings Mountain municipal bound- “They’re tired of the status quo. But when we access to high school courses across the district, de- aries extend into Gaston County, and the district brought the issue to Raleigh, they would have noth- velopment of shared nomenclature, and increased does serve children there, the court ruled there was ing to do with it. professional development across districts. no evidence that the Kings Mountain school district “Is deconsolidation the best way to go? I don’t The report was further impetus on a process that extended across county lines. know. But let’s at least have the discussion. And at has been in discussion since the late 1980s. But the As the year progresses, it appears as though all least let the citizens decide what they want to do,” ire of parents had already been raised when Chapel the attention surrounding consolidation and decon- Rhodes said. Hill-Carrboro schools Superintendent Neil Pedersen solidation will be focused on Mecklenburg and Orange But Rhodes admits that deconsolidation faces a presented a report to County Manager John Link counties. That’s because the state’s other large school tough battle against what he calls “the good-old boy outlining the logistics of consolidation. systems seem content where they are, whether it be network between the education bureaucracy and the Orange County schools are under capacity and with a city-county split or as a geographically expansive leaders in the General Assembly.” Chapel Hill-Carrboro are over capacity, so students, school district with one central office. “An education bureaucrat will protect his es- mostly in the northern corridor of the city school Buncombe County has kicked around merging tablishment, their territory, their power at any cost,” district, would be shifted to county schools to fill county schools with Asheville City Schools for years, Rhodes said. “This issue is not going away, and they’d classroom space. but there’s no significant movement. better just go ahead and deal with that fact. They can In the report, Pedersen estimated that, between On the other side, a movement to deconsolidate continue to defend a sinking ship as long as they want the 2005-2006 and 2013-2014 school years, 1,348 elemen- Wake County Schools was short-lived, according to to, but it’s not going away.” tary school students, 2,500 middle school students and The Charlotte Observer. Media opposition 2,000 high school students would be shifted from city Nor is there a movement to deconsolidate Guil- schools to county schools. ford County Schools, which became the state’s third- Unfortunately, citizens of North Mecklenburg The issue, at least for now, is on hold until the largest district with the 1992 merger of High Point and have another enemy in their battle for deconsolidation: fall, said Orange County Commission Chairman Mo- Greensboro city schools with county schools. the mainstream media. ses Carey. While Carey has been a vocal proponent In an e-mail message, Guilford school board Despite its own poll that showed 47 percent of of merger, Vice Chairman Barry Jacobs has remained member Kris Cooke said there was no deconsolidation residents supported a proposal to break CMS into relatively quiet. movement “that I know of.” smaller districts while 39 percent opposed it, The Char- In a phone interview, Jacobs admitted that the Still, Cooke said, “There are still individuals that lotte Observer wrote in an editorial that deconsolidation disparity in funding between Orange County and believe consolidation has been the downfall of this is not “sound public policy for a metro region such Chapel Hill-Carrboro was an issue. Resources could be school system and it is too large. Still, we continue to as Mecklenburg. Indeed, metro areas in which small, better shared among the districts, he said. But merger make progress in achievements and academics.” cj July 2005 CAROLINA 4 North Carolina JOURNAL Tobacco Trust’s Final Report on Fingerprint Company Released Final document lacks financial details but confirms the promised creation of 10 to 15 jobs ‘were not able to be met’

By PAUL CHESSER had to certify that HAZCAP project companies helped the TeleCenter gar- Associate Editor the work required “was highly suc- ner an additional $200,000 grant from RALEIGH under the agree- cessful and met the the Tobacco Trust for expansion. The he state’s Tobacco Trust Fund ment was actually needs of NCDMV development corporation was also Commission closed its file last performed. The in demonstrating awarded $250,000 from Golden LEAF, month on a fingerprint security corporation was the capacity of the state’s administration agency for half Tbusiness that it funded, even though also to “include (the)…program.” its tobacco settlement funds, for the Tel- little or no new information was pro- documentation That version was eCenter expansion. None of those funds vided in a revised final report about a of the amounts not sufficient, ac- have been paid yet, however. project the company conducted for the for which (the de- cording to Long N.C. Division of Motor Vehicles. velopment corpo- and the commis- Watson an investor? Privaris, Inc. received $307,575 from ration) requests sion. the commission through a grant to the reimbursement.” Long did not North Carolina’s Northeast Part- Martin County Economic Development Upon conclusion respond to phone nership had originally applied for the Corporation, ostensibly in exchange for of the project, a messages or an Tobacco Trust grant and was awarded starting business in Williamston with 10 final report on e-mail inquiring the money in October 2002. Rick Watson, to 15 employees, which the company HAZCAP was about the final re- executive director of the partnership, never fulfilled. Privaris was to be paid to “include a de- port. William Up- requested that the Tobacco Trust transfer for determining whether its technology tailed final finan- church, executive responsibility for the grant in November could help DMV enhance the security cial report of the Senate President Pro Tem Marc Basnight director of the To- 2002 to the development corporation. of drivers’ licensing for transporters of use of grant funds bacco Trust Fund Sources with direct knowledge of hazardous cargo. by category, show- Commission, told the project who requested anonymity say Karen Long, a lawyer in the state ing all expenditures during the entire CJ in an e-mail, “Martin County EDC Watson is an investor in Privaris. Watson Department of Justice who reviews term of this agreement….” needed to provide a final response from sought to obtain funds for the pilot proj- legal documents for the commission, their perspective before we could accept ect despite his personal financial stake told Tobacco Trust officials in February Final report lacks new details the report.” The Tobacco Trust did not in the company, creating an apparent that the development corporation’s final seek repayment of its money from the conflict of interest. He pressed for the report on the DMV’s Hazardous Material But the final report, received by the development corporation, Upchurch Tobacco Trust’s April 2004 payment to be Carrier Authentication Pilot project was commission May 20, 2005 after the earlier said. made to the development corporation, “pretty thin.” She said a candid and de- version delivered Jan. 28 was deemed which in turn paid Privaris. tailed discussion of technical problems, unsatisfactory by Long, did not include County wants TeleCenter funds According to a report in the April and of which goals were met and unmet, any financial data, except that “$42,425 21, 2005 Washington (N.C.) Daily News, was needed in the report. was not needed and will be released back Although Privaris fell short on its job Watson would not confirm or deny that “The numbers listed 10 to 15 jobs ini- to the Commission.” Other documents creation, the development corporation he was an investor or “silent partner” tially,” Long wrote. “That didn’t happen, obtained by Carolina Journal showed that tried to leverage the company’s brief in Privaris. and I think a more thorough explanation no receipts or invoices were provided to activity at the TeleCenter into a request “I am not accustomed [to] investing of why needs to be included.” justify the development corporation’s for more funding from public resources. in companies in which there is a conflict or Privaris’s expenditures, other than In a letter to Upchurch, development of interest,” he told the newspaper. Privaris leaves TeleCenter numbers shown on a spreadsheet. corporation Chairman Stan Crowe said However, Ernie Pearson, Watson’s Ten months of rent from the develop- “funding is crucial” for expansion of the lawyer, told the Daily News, “I don’t find Fairfax, Va.-based ment corporation’s TeleCenter because “there are several it to be a conflict of interest at all for staff Privaris pulled out of Telecenter to Privaris clients that are waiting for…improve- or members of a board of a nonprofit to the development cor- “I am not accustomed accounted for $10,575 ments to be completed so they can move invest in companies considering invest- poration-run North- of the money. from the incubator office space into a ing in the northeast region or locating east TeleCenter in Wil- [to] investing in com- Upchurch told larger area.” there.” liamston by December panies in which there CJ that the financial Between July 25 and July 30, 2003, Privaris, formerly known as Trans- 2003. The company information “has al- Privaris was one of three TeleCenter forming Technologies, Inc., was original- never hired more than is a conflict of inter- ready been received in tenants that wrote similarly worded ly promoted by one of its chief investors three employees for est.” previous reports.” letters to Crowe stating their intentions and board members, Ernest Knighton the project, but despite As for the failure to expand their businesses, conditional of Edenton. Knighton lobbied Senate its failure to fulfill ­— Rick Watson, to create 10 to 15 upon expansion of space. Privaris President Pro Tem Marc Basnight’s chief the jobs requirement, jobs, development President Barry Johnson wrote a letter assistant, Rolf Blizzard, in 2002 to get the commission paid Northeast corporation officials of support for the renovations, saying the Division of Motor Vehicles to start the development cor- Partnership said “because funding that Privaris “has been in operations a security project using the company’s poration $132,575 in has not been provided at the NC TeleCenter…since February, technology. April 2004. for implementation 2003,” even though the project began Knighton’s wife, Anne Marie, is An agreement of subsequent pilot in April and employees moved into the the town manager of Edenton. He is between the Tobacco Trust and the de- programs, the job creation and invest- facility in June. described on Privaris’s website as “a velopment corporation stipulated that ment objectives for this project were not “During our tenure at the TeleCenter successful North Carolina-based tech- if any conditions of the agreement were able to be met.” However, the contract we have enjoyed great success and are nology venture developer, investor, and breached, the corporation must repay between the corporation and the com- now faced with expansion opportuni- management advisor.” to the commission “the full amount of mission did not predicate those jobs on ties,” Johnson wrote. “We would very Blizzard initiated help for the project sums awarded” and any interest accrued whether further funding for the program much like to remain in the Williamston at DMV, pressuring former Commis- on the money. would be forthcoming. The 10 to 15 jobs area but to do so requires securing ad- sioner Carol Howard and Department The grant called for the project’s were to be created “initially,” and if the equate space for our continued opera- of Transportation officials to evaluate the funds to be paid in increments, with project grew, 200 jobs and a “capital tions.” Documents showed no evidence technology and to carry out the pilot. $175,000 issued to the development investment of more than $10 million” that Privaris developed new business Knighton is one of four members of corporation 14 days after the agreement were expected to materialize. during the month in the TeleCenter, or Privaris’s board of directors, according was signed. The remaining money was The earlier version of the final that the HAZCAP project had begun to the company website. Asked by CJ to be paid periodically as requested by report submitted by the development in earnest. whether Watson was an investor in Priva- the development corporation, which corporation in January 2005 said the The letters of intent from three ris, Knighton said he did not know. cj July 2005 CAROLINA JOURNAL North Carolina 5 Would be double the length of the 900-foot Apache Pier near Myrtle Beach Basnight’s Solution Would Create East Coast’s Longest Pier

By DON CARRINGTON sembly appropriated $834,000 in June Associate Publisher 2003 for the ferry project. Annual op- RALEIGH erating costs are estimated to be more deal brokered by Sen. Marc than $400,000. Basnight to get the Currituck- A feasibility study prepared by Ferry to-Corolla passenger ferry up Division Director Jerry Gaskill stated Aand running would result in the con- that dredging a channel on the Corolla struction of an 1,800-foot docking pier side would be necessary, but failed to extending into the Currituck Sound, mention that the U.S. Army Corps of which, if approved by the federal gov- Engineers had denied permits on two ernment, would be the longest pier on previous occasions. In June 2004 the state the East Coast. Division of Coastal Management issued The pier proposal, the result of a a notice of violation to DOT after a Ferry recent meeting between Basnight and Division boat and crew dug an illegal several state and local officials, would be channel near Corolla. The Ferry Division twice as long as the 900-foot Apache Pier has since repaired the damage. near Myrtle Beach. However, several In August 2004 the U. S. Environ- federal agencies would have to approve mental Protection Agency’s Criminal In- the project before it could be built. vestigation Division, armed with search “All this is just conceptual right warrants and in search of information now,” Wildlife Resources Commission Carolina Journal Photo by Don Carrington about the dredging incident, led a raid Director Dick Hamilton told Carolina The proposed 1,800-foot docking pier would start here, near Corolla Lighthouse on Ferry Division offices. No criminal Journal. The ferry service was scheduled charges have been filed. to be in operation by May 2004, but has Administration agencies — the Coastal He said that 1,800 feet is an estimate CJ has also reported that a new Dare been plagued with problems from the Resource Commission, the Division of and that surveys must be conducted to County elementary school opening this start. Hamilton said the proposed solu- Marine Fisheries, and the Department determine the actual water depth. The summer should eliminate the school tion for the ferry issue came from a recent of Transportation’s Ferry Division. The big issue, Jones said, is “the potential overcrowding that was the original meeting with Basnight. “[He] called us Daily Advance of Elizabeth City first danger boats can cause to submerged stated justification for the project. Also into his office to see if there was a fresh reported the deal. aquatic vegetation in shallow water.” reported was that representatives of the approach.” Even though detailed plans have Currituck County officials said the Sanderling Resort and Spa, who were Hamilton said the National Marine not been prepared, Hamilton said he ferry service was necessary because looking for alternative ways for employ- Fisheries, the U. S. Army Corps of En- envisions a 10-foot wide structure sitting students living on the Currituck County ees to get to work, had met with DOT gineers, and the U. S. Coast Guard will six feet above the mean water level so section of the Outer Banks would no officials and approved the ferry route. all have to approve the project. Justin sunlight can reach the environmentally longer be able to attend Dare County Most recently CJ and other news McCorcle, an attorney with the Corps’ sensitive sound bottom. schools because of crowding. School organizations revealed the 49-pas- Wilmington office confirmed the project “There is no question federal officials initially said about 40 students senger pontoon boat purchased by would require a permit from his agency. agencies will have to approve this,” would be involved, but that number the Ferry Division does not meet the “We will look at alternative locations and Coastal Management Division Director now is about 10 students. requirement that it be able to operate in the need for the project,” he told CJ. Charles Jones said. When CJ informed They said the bus ride to the main- 18 inches of water and may require as The meeting, held in late May in Jones the pier would be twice as long land, entirely by land, would be too much as 42 inches of water to operate. Basnight’s office, included Currituck as the longest pier on the East Coast, he long. With State Senate President Pro The boat has been sitting at the State County Manager Dan Scanlon, Hamil- laughed and said, “I didn’t realize it. It Tem Marc Basnight of Dare County as Shipyard at Manns Harbor since last ton, and the heads of three other Easley is a long pier.” the driving force, the N.C. General As- August. cj Basnight’s Company Pays Up

By DON CARRINGTON Construction appealed that decision. Associate Publisher The N.C. Court of Appeals ruled in favor RALEIGH of Morris in March of this year. lizabeth City plumbing contrac- The county clerk of court last month tor James Morris said he expects received a check from Basnight Con- to be paid almost $50,000 owed to struction for $49,592. Ehim by Basnight Construction for work Basnight has said that he was not he completed in July 2002. Morris has involved in the day-to-day operation of said he thinks that the political influence the company and that his cousin Jimmy of Marc Basnight, president pro tempore Basnight ran the business. of the N.C. Senate and president of Bas- The dispute involved a $5 million night Construction, made it difficult for contract to install a sewer system in En- him to collect the money. gelhard, an unincorporated community “It seemed everything was stacked in Hyde County. against me winning this lawsuit,” he A Virginia company, Peters and told Carolina Journal. White, won the contract and subcon- Morris said he will not be able to tracted a portion of the work to Basnight recover attorney fees and has to pay Construction. Basnight subcontracted his lawyer about $10,000 for the legal another portion of it to Morris’s com- work. pany, JMM Plumbing and Utilities. In January 2004 Morris won a judg- “We got the grants through Marc Bas- ment against Basnight’s company in night,” Sanitary District Chairman Tommy Hyde County Superior Court. Basnight Ethridge said earlier this year. cj July 2005 CAROLINA 6 Washington JOURNAL NC Delegation Watch REAL ID Act Designed to Improve Security Foxx seeks IRS change States must comply with no protections for data required to be U.S. Rep. Virginia Foxx’s shown on a drivers’ license. A Social (N.C.-5) first piece of legislation, provisions of the act, The REAL ID Act Security number, which will have to the Heroes Earned Retirement be furnished if you want a license, was Opportunities (H.E.R.O.) Act, which takes effect in 2008 • Scheduled to take ef- “never meant to be an identifier” except passed the House. It was the first for retirement benefits. policy-changing bill introduced by fect in 2008 Both the ACU and the ACLU are a freshman member to pass. By MAXIMILIAN LONGLEY part of the Liberty Coalition, an umbrella The H.E.R.O. Act would Contributing Editor organization or groups and individuals amend the Internal Revenue Code DURHAM • Applicants must pro- from all parts of the political spectrum of 1986 to allow members of the he REAL ID Act, part of a budget vide an actual address who protest alleged federal encroach- Armed Forces earning hazard pay bill signed by President Bush ments. Michael Ostrolenk, a public-pol- to be eligible to make retirement on May 11, contains provisions icy consultant in Washington, D.C., was account contributions. The current Tdesigned to improve the security of driv- a prime mover behind the establishment tax code prohibits many soldiers ers’ licenses. The wisdom, fairness, and • Applicants must pro- of the Liberty Coalition. “It (the REAL ID) serving in combat zones from cost of these provisions remain subject vide ID and Social is basically creating a de-facto internal taking advantage of Individual to vigorous debate. passport system,” Ostrolenk said. “In Retirement Accounts. Scheduled to take effect in 2008, Security number order to travel by plane, train or bus, “Hazard pay wages are the REAL ID Act’s drivers’ license provi- citizens will be required to show their not taxed – nor should they be. sions provide that states must comply national ‘travel’ license.” According to However, since this compensa- with security requirements in issuing • ID will have machine- Ostrolenk, there’s a risk that the law tion is non-taxable, the wages are drivers’ licenses. These requirements in- readable features as may lead to radio frequency identifiers not eligible for IRA contributions. clude having machine-readable features being installed in drivers’ licenses. With This is a serious problem that I am determined by the secretary of Home- prescibed by Home- the radio frequency identifiers, state and happy to fix,” said Rep. Foxx. land Security, putting the person’s actual federal governments would be able “to Foxx sought to amend the residential address on the license (not land security track citizens’ every move,” without the tax code after receiving a letter just a P. O. box), and requiring applicants citizen knowing it. from a constituent in Forsyth for licenses to provide identifying infor- • New drivers’ licenses The cost to the states of implement- County. The constituent’s son, an mation and Social Security numbers. If ing the REAL ID Act is uncertain. One Army soldier who spent nearly a a person has a license that doesn’t meet will be difficult to dupli- estimate, by the Congressional Budget year in Iraq, did not earn enough the act’s requirements, federal agencies cate Office, is that states will have to spend taxable income to take full advan- won’t recognize it as a valid ID. a total of about $100 million to comply tage of an IRA. One of the organizations that with the new standards the Act imposes Forty-seven House mem- has long been pressing for tougher • Goal is to make sure for drivers’ licenses. bers co-sponsored the bill. federal standards on ID documents is Sparapani said North Carolina will the Federation for American Immigra- people are who they bear heavy implementation costs. He tion Reform. FAIR Media Director Ira say they are predicts the state will face “enormous Etheridge: Protect food supply Mehlman said that illegal aliens and problems.” terrorists have exploited the country’s Mehlman said the REAL ID re- Rep. Bob Etheridge (D-Lil- “chaotic documentation system.” In the forms in drivers’ license standards will lington), a member of the Home- past, North Carolina has been among actually help the states save money. land Security and Agriculture the states whose loose drivers’ license for terrorists to get drivers’ licenses, Making licenses available to illegal aliens committees, and a N.C. Depart- requirements have been exploited by il- Myrick said. Myrick’s site said that the “facilitates their illegal presence in this ment of Agriculture & Consumer legal aliens, although Mehlman isn’t sure act “sought to close up the loopholes country.” With stricter requirements for Services official advocated for of the current status of North Carolina terrorists were using to illegally get into issuing licenses, Mehlman said, there stronger protection of the nation’s law. Although Mehlman would like to America, and stay here.” will be less incentive for illegal aliens to agriculture and food supply see all drivers’ licenses denied to illegal North Carolina’s entire Republican come, and the states will thereby save before a House panel. Etheridge aliens, he said REAL ID wouldn’t pre- House delegation (Coble, Foxx, Hayes, money on public services those aliens and N.C. Food Administrator Joe clude a second-tier drivers’ license for Jones, McHenry, Myrick, and Taylor) would otherwise use. Reardon participated in a hear- illegal immigrants, so long as the second- voted for the REAL ID Act, along with Shortly after the REAL ID Act ing of the U.S. House Homeland tier license isn’t used for identification two Democratic Representatives (But- passed, Rep. Obey, D-Wis., offered an Security Committee Intelligence, purposes beyond driving. terfield, McIntyre). The remaining four amendment to the Homeland Security Information Sharing, and Terror- U.S. Rep. G. K. Butterfield, D- Tar Heel Democrats (Etheridge, Miller, appropriations bill that diverted $100 ism Risk Assessment Subcom- North Carolina’s First District, is among Price and Watt) voted against the law. million from other parts of the agency’s mittee examining the threat of members of Congress who voted for The Act was approved in the Senate as budget to pay for the expenses states agro-terrorism. the REAL ID Act. Butterfield’s com- part of a larger budget bill. would have to meet under to comply “We know that terrorists munications director, Ken Willis, said Many organizations representing with REAL ID’s drivers’ license stan- want to attack our food supply, the drivers’ license requirement is an state government bodies have expressed dards. Obey said sarcastically, “I am and a successful attack on ag- “opportunity to increase homeland concern about the expense the states may just trying to help keep a Republican riculture could be crippling to security.” The new drivers’ licenses bear, and the derogation from traditional promise” not to impose new unfunded North Carolina’s economy, to our will be hard to duplicate. Thanks to the state prerogatives. mandates on the states. national economy and to our na- act’s license provisions, drivers’ licenses Others oppose the law as a federal The Obey amendment passed by tional security,” Etheridge said. throughout the country will be brought infringement on freedom. Jesse Benton a vote of 226-198, and the Homeland Reardon testified that “up to standard.” of the American Conservative Union is Security budget bill is now before the national leadership must take Another member of the North concerned that retinal scans may be used Senate. In the House vote on Obey’s effective action to address agro- Carolina delegation who voted for the to confirm the identity of anyone who amendment, all the Democrats in North terrorism. “As we harden highly REAL ID Act is North Carolina’s U.S. applies for a drivers’ license. Benton is Carolina’s House delegation (Butter- visible, metropolitan infrastruc- Rep. Sue Myrick, R-9th Congressional also worried about the sharing of citi- field, Etheridge, McIntyre, Miller, Price, tures, greater pressures are placed District. A press release from her office zens’ information with the governments and Watt) voted for the bill. Two Tar Heel on agriculture as a ripe target for calls REAL ID “a large step in the right of Canada and Mexico, as contemplated Republicans (Myrick and Jones) voted an attack with high visibility and direction.” Myrick’s Web site says: “This by REAL ID. for it as well. The remaining Republicans an economically potent impact,” is not a federal ID, but makes sure people Tim Sparapani, legislative coun- in the North Carolina delegation (Coble, he said. cj are who they say they are.” The new sel for privacy rights at the American Foxx, Hayes, McHenry, and Taylor) requirements will make it more difficult Civil Liberties Union, says the Act has voted against it. cj July 2005 CAROLINA JOURNAL CJ Interview 7 FEC’s Bradley Smith: Citizens Participate in Process by Giving

By CAROLINA JOURNAL STAFF Smith: Well, one thing was that you Smith: Well, I think they do because issues involved; I think the commission RALEIGH heard all these ads begin or end with they force people to do different ways to is — I think that the rule we put out is radley Smith is a com- somebody saying, “I’m so and so and I express themselves. They limit the abil- fairly light-handed, but note the change m i s s i o n e r w i t h approve this ad.” [LAUGHS] ity of political parties to speak, which I in the assumption. The assumption was the Federal Election Commission, think was a bad thing because political that the Internet would be unregulated; Bthe independent group that administers Martinez: There you go; I remember many parties have to balance a coalition of now the assumption is that it will be and enforces election laws at the federal of those, yes. interests, whereas a lot of these special regulated. If it’s not regulated, it’s just level. He was in Raleigh recently to interest groups are much more focused because we’re being nice guys, and it’s address a luncheon group hosted by Smith: Big elements of the bill, and I on a single narrow issue, much more going to be more regulated than it was the John Locke Foundation. Carolina think most of us would heartily agree dogmatic, less prone to compromise. in the past. Journal Associate Editor Donna Marti- that that has dramatically improved po- In other words, I guess the answer to nez talked with Smith after the event. litical discourse in the United States. the question is, there are still ways that Martinez: That’s a definite change in phi- Following are edited excerpts from their people can speak, but it gets increas- losophy mindset. conversation. Martinez: Forcing people to say right up ingly complex, and that tends to favor front, “Hey, this message is mine.” the people who can afford to hire the Smith: That’s right. And it could very lawyers, the accountants, the consul- much hit weblogs; for example, if you Martinez: So if we believe the headlines Smith: I think the idea was that that tants, the folks who know the system; run a blog and you incorporate it, and a from the last year or so, campaign finance would make ads less negative, but at each level of complexity it gets a little lot of weblogs are incorporated as what reform laws that were passed again, first, I don’t think it bit tougher for the average person to be are called sub-S corporations or LLCs, by Congress were supposed to really had that effect, and involved for smaller grassroots groups they will be severely restricted in what take big money out of politics, secondly, there’s nothing to be involved, for kind of insurgent they can do, any kind of coordination which of course critics said wrong with a negative candidates without a lot of money to run with the candidate’s campaign. was corrupting the election ad; it contrasts candidate’s effective campaigns, so it is impacting on And recognize what coordination system. Was the system bro- positions and says “I’m free speech and I think it will continue means; coordination means that if a ken really in the first place? right and my opponent’s to do so. candidate’s campaign sends you an wrong.” email and you then forward it out to a Smith: Well, I don’t think Martinez: And in fact, apparently we are bunch of friends of yours, that is by defi- the system is broken by Martinez: Those are always heading towards another potential restric- nition coordinated activity. Since now it the presence of money cast as attack ads these tion of free speech. Now the FEC, of which would include the Internet because it’s in the system. We have days. you are commissioner, is right now propos- called re-publication of campaign mate- to realize it costs money ing a rule that would regulate Internet blog rial, now if we’re going to include the to communicate, and the Smith: That’s right, but sites that are dedicated Internet, that would entire amount of money FEC Commissioner it’s a fair part of political to candidates, that is in in theory get some for that we spend on politics Bradley Smith discourse, telling people the proposal stage right “It costs money to that activity. in this country is less than why they should not vote now; they’re taking pub- communicate, wheth- Procter & Gamble will spend on adver- for the opponent. More specifically, lic comment. So where Martinez: That to me tising in a given year. In other words, it what the McCain/Feingold Law did do you see these blog er you’re advertising sounds like huge change, costs money to communicate, whether that took effect for the first time for the sites fitting on the spec- I mean, that happens soap or you’re telling thousands, millions of you’re advertising soap or you’re telling last election was it limited the ability trum of free speech? Are times, potentially. people about politics. of national and state political parties to they protected speech people about poli- So the money needs to be in the raise money for things like Get Out the or should they be regu- tics.” Smith: And people system, and that money has to come Vote drives, by eliminating significantly lated? say, “How are you from somewhere. It’s worth noting that the size of contributions they could take — Bradley Smith going to police that?” big business spends 10 times as much for that purpose. Smith: Well, what Well, the answer is, let money on lobbying as it does on all The result then was that a lot of you’ve got here is what happens is, again, me tell you, there are all kinds of people kinds of other political participation, that activity then went over to outside the government is spending a couple out there running around, eager to turn and that’s the real source of influence groups other than the political parties trillion bucks a year, so people want in their neighbors when they don’t like for these groups, not political giving. and people will be familiar with some to influence who holds office, and this their politics. We get those kinds of Political giving is how citizens really of them: George Soros funded, and other effort keeps growing, we have to close complaints all the time now. participate in politics. very wealthy individuals funded some off these avenues for free speech. So you I mean, we get complaints against Some people have more money than groups on the Democratic side; there have a legislative effort now in Congress people who put up homemade bill- others to be sure, and other people have were groups called Americans Coming to limit these 527s to limit your ability boards and forget to put up on the bottom more influence because they host radio Together, Moveon.org… to give money to a group, whether it’s whether it was paid for by a political shows or they have newspaper columns, an environmental group, a right to life committee or not, and that’s a violation or they’re just good at writing letters to Martinez: Are these essentially the 527s? group, whatever it is, and have them of the law, and we’re going to see that the editor or whatever it is. participate in politics. going to the Internet. We also need to remember that we Smith: They’re what are called, in the Another element of that attack is have a government that spends a couple parlance, 527s. That’s just a section of the on the Internet. We passed a rule at the Martinez: How can a North Carolinian trillion dollars a year. Naturally people tax code under which political groups election commission exempting most make their opinion on this rule? What do will want to affect that government, and are organized. And it’s worth noting Internet activity from the McCain/Fein- they have to do? much of the spending that goes on is that there are lots and lots of different gold Law; we felt that that was a proper done by groups, whether it’s the Sierra types of 527s. That is, the Bush/Cheney interpretation of the statute. The spon- Smith: Well, on the Internet rule go to Club or Handgun Control, Inc., or the campaign, and the Kerry/Edwards sors of the bill sued us in court, saying our website, www.fec.gov. There you National Rifle Association or Right to campaign were 527s as well; they were that was not a proper interpretation of can navigate around, find the notice of Life, they spend money to try to influ- just run by candidates. In other words, a the statute; they won; there is not a ma- proposed rule-making, and comment ence political issues, and they represent 527 is just a type of political committee. jority of the commissioners on the com- on it. thousands, indeed millions, of people The McCain/Feingold Law put limits mission willing to appeal that decision, Just a comment that says, “Keep when they do so. on certain types of 527s, that is, political so we in a sense have been forced under your stinking hands off our Internet!” parties, but left others unregulated, and court order to open a rule-making that is not terribly helpful, although it’s Martinez: So give us a brief overview of the so that’s where the money went. will lead to at least some regulation of not the worst thing in the world, but effect of the changes that were in place. The the Internet, including blog sites. something that is constructive and effect on last November’s election; what was Martinez: So did the changes then in fact Now, I don’t want to say that the thoughtful would be very important to different to the average voter? restrict free speech in your view? commission is not sensitive to the speech us. cj July 2005 CAROLINA 8 Education JOURNAL State School Briefs Is K-12 Philanthrophy a Bucket in an Ocean? Lobbyist cries apartheid Careful Choices in Spending only about 20 percent of all education buy this staff training in the absence of The state’s top lobbyist for charity goes into these three spending foundation money, this means they did teachers compared the plight of Determine Effectiveness categories; 80 percent has no positive or not really want it, so donating to them his members to South African lasting effect. is likely to have little effect.” apartheid, arguing school admin- of Philanthropic Decisions The advantage of high-leverage Similar arguments apply to cur- istrators have advantages in pro- giving is that has the potential to “change riculum spending and general-purpose moting their needs that they deny By DR. KAREN PALASEK the shape of the education ocean.” Re- grants. Schools will adopt needed cur- teachers, The Charlotte Observer Contributing Editor search institutes, such as Greene’s own riculum changes anyway because they Manhattan Institute, can inform educa- reports. RALEIGH are extremely high-priority items. They tion policy debates and bring about a Eddie Davis, president of the he Manhattan Institute’s Jay will not wait to see if a donor is willing desirable change in direction. Greene Raleigh-based N.C. Association Greene is usually right on the to support an essential revision. argues that this is needed, despite the of Educators, said in an interview money with his analysis of educa- An analysis of student test scores millions that philanthropists like Bill that he is trying to point out that Ttion issues, but not always. His latest con- from students of National Board certified Gates spend, because the $1.5 billion in people in power don’t think about tribution, “Buck- teachers, and students whose teachers charitable gifts to education are dwarfed the problems of the less influen- ets into the Sea: were not Board certified, indicates that by vastly larger public expenditures of tial. Why Philanthro- one item identified as high-leverage $457 billion (2003 data). Since private His example: Taxpayers fund py Isn’t Chang- — the National Board certification — of- gifts make up 0.3 percent of total expen- memberships of a professional ing Schools, and fers only a 2 percent advantage in terms ditures, they amount to “little more than group — the N.C. Association of How It Could,” of student test scores. (Carolina Beat #815) a couple of buckets in the ocean of K-12 School Administrators — that lob- was delivered at Students whose raw scores were 13 to spending.” On average, they contribute bies for them in Raleigh. Teachers a 2005 American 18 points below grade level proficiency, about $27 per public education pupil. pay their lobbyists out of their Enterprise Insti- researchers found, would need decades paychecks. tute conference Low-leverage uses of money to reach grade level proficiency with “Similar to the `privileged a Board certified teacher. The bottom on education phi- Jay Greene class’ arguments during the civil lanthropy and K- Low-leverage strategies have line: Board certification is not truly a rights movement, our educational 12 reform. limited or short term benefits, or may high-leverage item, an assessment that colleagues at NCASA put forth “Buckets” offers many good in- affect just a few students. Among the Greene fails to catch. the case that their administrative sights. Philanthropic giving, Greene ineffective low-leverage uses of philan- It is clear that K-12 education, as stature makes them deserving of said, can either create long-term, fun- thropic dollars, Greene lists professional Greene sees it, cannot be influenced by public funding of their private damental changes in K-12 education, development and training for educators, private philanthropy unless gifts are memberships,” Davis said in a or superficial effects that fade quickly. dollars to support pedagogical or cur- used to try to change education policy, statement sent to statewide media. Knowing which projects have a lasting riculum innovations, and general giving to change the structure of education He also said administrators, effect, and sticking to “high-leverage” for resources or equipment. delivery (small vs. large schools, for from principals up to superin- projects, is key. Greene is on target with Of these, professional develop- example), and to change the way that tendents, have an institutional his positive review of the New High ment makes up the largest spending school personnel compete for jobs, earn advantage and have threatened School project, but off base when he category. But there is no way to deter- wages, and interact with the public and those who question those benefits, picks National Board Certification for mine whether the spending is going “to with school administration. He acknowl- similar to tactics used during teachers as a high-leverage option. support less effective methods or fads,” edges that this won’t happen without apartheid. North Carolina is the recipient or whether some of it has “promoted great internal resistance. But given the of about $30 million for school reform effective classroom practice.” Since size of philanthropic spending relative to Reassignment craziness projects from the Bill and Linda Gates the public schools have so many more the public money “ocean,” Greene sees Charitable Foundation. The state is dollars to spend from public sources, little other option for reform. Kristen Frankena points implementing Gates’ New High Schools any effect of a few private dollars on a through the window of her north project. Designed to create 40 small few teachers is probably insignificant. Dr. Palasek is a Director of Educational High Point home. There, just past high schools, or schools-within-schools, As Greene notes “if schools would not and Academic Programs for the John Locke a clump of pine trees, is Southwest to “provide personal attention and have used their superior resources to Foundation. cj High School, an easy five-minute rigorous coursework,” in settings that walk from her house, the News-Re- are “better suited to helping all types cord of Greensboro reports. of students succeed,” the initiative Both her parents went to will attempt to reverse a trend toward Southwest, and she grew up going mega-sized high schools. Schools with to Cowboys football and basket- thousands of students have created a ball games. She always figured situation in which a student can remain that now, as she finishes up unknown to most other students, and eighth grade at Southwest Middle to most teachers, throughout their high School, she would be headed to school years. In North Carolina, the the high school down the street. 400-student high school represents a Instead, Kristen has been significant change from the average size assigned to High Point Central of 1,070 students per school. High School. She is one of 149 students who won’t get to attend Leveraging charitable gifts Southwest in the controversial To qualify as a high-leverage gift, High Point high school reassign- according to Greene, dollars must be ment plan. used to pursue one of three general When Guilford County strategies: The first strategy is to support Board of Education members policy research and advocacy in educa- introduced the reassignment plan tion reform. The second is to create new for Andrews, High Point Central types of public schools or administrative and Southwest high schools, they structures to channel future education said the plan would improve spending. The third is to develop alterna- diversity and expand academic tive professional associations that will offerings. cj effect change at the level of personnel. “Buckets Into the Sea” estimates that July 2005 CAROLINA JOURNAL Education 9 Choice Can Aid Special Needs Commentary Free, open-market choices debunks this myth. More Money Doesn’t Mean Better The study found that more than can prevent what some call 2,500 private schools throughout the hat is the cost of a “sound racial segregation had increased, United States are serving more than and basic education?” For minority achievement was stagnant, ‘educational malpractice’ 100,000 special-needs children. Most decades, this question has and the black-white achievement private schools not only accept children Whaunted policymakers and legisla- gap remained unchanged. with physical, behavioral, emotional, or By KAREN WELSH tors alike. Increasingly, however, this Fast-forward several years, learning problems, but they also go the issue has fallen to courts to and the story sounds Contributing Editor extra mile, by using innovative, scien- RALEIGH decide, as angry plaintiffs awfully familiar: More tifically based programs that are more have turned out in droves, money still isn’t produc- t’s official. Over the past several effective at helping children, Salisbury years the fissure in the educational filing school finance litiga- ing better results. In 2003, said. tion in 45 states. The cur- the District of Columbia system in North Carolina has wid- The Cato study also cited testimo- Iened, leaving special-needs children rent buzzword, headlining spent more than $13,000 nials from parents who thought their cases across the country is per student, while Utah with the highest potential of falling children had a “positive turnaround” through the academic cracks. educational “adequacy:” spent less than $5,000 who are receiving individualized at- Many school districts claim — with the rest of the In 2002, Wake County Superior tention in their new schools. “ In many Court Judge Howard Manning Jr. found they lack sufficient funds to states somewhere in cases, those children were not receiving provide students with an between. Even though public schools in the state were falling the same degree of help in their public short in their efforts to help disadvan- “adequate” education. D.C.’s per-pupil spend- schools, even though their educational But just how much Lindalyn ing is the highest in the taged students. plans prescribed it,” Salisbury’s research In 2005 Manning confirmed the is enough? The answer, Kakadelis nation, only 13 percent showed. judging by recent court of D.C. fourth-graders same findings. Manning denounced North Carolina charter schools low-scoring high schools around North decisions, is more, more, scored at or above profi- have already proven they work for spe- more. In June 2005, the Kansas cient levels in reading on the 2003 Carolina for committing “academic cial-needs children, Gerber said. “I know genocide” against at-risk students. Al- Supreme Court ordered 2005-06 National Assessment of Educational for a fact that charter schools have been school funding increased, from Progress (NAEP). Meanwhile, 39 though Manning beckoned educators popular with special-needs students,” he to fix the problem, he did not offer any $142 million (appropriated by the percent of Utah fourth-graders said. “A lot of charter schools have had 2005 legislature), to $285 million were proficient or above on NAEP solid solutions to the problem. more success and been able to cater to Roger Gerber, president of North above the past school year’s fund- reading tests. Clearly, the case can their needs better.” ing. In February 2005, the New York be made that the demographics in Carolina School Choice, said that with- Currently, however, only 100 out a free, open-market competition, Supreme Court added a whopping these regions are widely divergent; charter schools are allowed to oper- $5.6 billion per year to the school so, however, is the $8,000 spending including vouchers or other creative ate in the state at one time. The cap on choices, public schools will continue system’s budget, representing a 43 gap per student. charter schools is maxed out, leaving percent increase. In North Carolina, Where do we go from here? to commit this type of “educational many counties across North Carolina malpractice.” the school finance case, Leandro, Almost every state constitution has without any options. has yet to produce court-ordered language guaranteeing a “sound “This is a dance with the devil,“ Sen. Eddie Goodall, R-Mecklen- he said. “I thought the voucher move- funding. But the specter of judicial and basic education,” but the price burg, is trying to change the constraints. intervention has cast a long shadow, tag for this education is clearly still ment was dead, but we have to revive He introduced Senate Bill 213 in Raleigh the voucher bill or the tuition tax credit. causing legislators to automatically in play. Many states have conducted at the beginning of the year asking gov- equate the term Leandro with spend- education adequacy spending re- We need some kind of reform to make ernment officials to remove the limit on public schools stand up and pay atten- ing increases. ports — all of them concluding that charter schools. The desired outcome of these millions more dollars are needed. tion. We need to empower the parents An article in The Free Lance-Star, and create a system where good schools lawsuits is simple, really: more Not one evaluates how money in Fredericksburg, Va., found many money, now. During a school ad- should be allocated. This, in spite are rewarded for turning out good stu- countries in Europe have successfully dents. It’s worked in everything else, equacy lawsuit in New York City, of the fact that countless studies used school choice for years. “Ameri- a group of demonstrators chanted: have failed to turn up conclusive but it’s not even been tried in North cans should learn from these examples Carolina.” “What do we want? Money! When evidence for the argument that and study evidence before accepting do we want it? Now!” But is more students learn more when we spend A revolution in education may claims that school choice doesn’t help be the only hope left for special-needs money what our schools really more. poor families, creates segregation, or need, and does it guarantee a good There’s no question that our children. In 2004, the North Carolina harms public schools,” the article said. Association of School Administrators education? Thirty years of data schools are in trouble. But even after “The experiences of other countries indicate otherwise: while national unprecedented judicial interven- said it could not meet the needs of spe- show that choice has beneficial effects cial-needs children. spending on public schools has tion and billions of taxpayer dollars, all around—especially if public schools more than doubled during this many students aren’t receiving an “(No Child Left Behind) expects are given increased autonomy and flex- all students within a school or school time, academic performance has not “adequate” education. American ibility.” improved measurably. education needs fundamental, system to achieve the same level of Manning’s report concluded that proficiency, despite their limitations or History, in fact, is our best market-based reform, not bloated major reforms are needed to help turn guide, when it comes to refuting budgets. Until that time, our schools special needs, including those who have around North Carolina’s educational Individualized Education Plans or who the notion that “more money equals are unlikely to be any better off than system. To date, however, the judge said better schools.” In 1985, during the the gilded schools in Kansas City. speak English as a second language,” there appears to be no tangible plan in they wrote of some of the difficulties in Kansas City, Missouri School Dis- But the costs — to our students and place to fix the problems, leaving many trict (KCMSD) desegregation court our pocketbooks — will be higher. their efforts to implement and comply at-risk children shortchanged. with the mandates of the law. “ This case, a federal district judge ordered The old saying, “Every time history Gerber said there is hope, if these the state and district to spend nearly repeats itself, the price goes up,” expectation in reality sets difficult, if not same families demand viable alterna- impossible, achievement levels for too $2 billion on K-12 education. Ac- provides some cautionary advice tives from the government. One option, cording to the Cato Institute, after to the litigious advocates of unre- many special-needs students.” he said, is “education stamps.” They These same educators continue to 12 years of a virtually unlimited strained spending. Let’s hope they would serve the same purpose as food budget, the school system had con- heed it. decry the idea of free choice in education stamps, allowing parents of students to as bias programs allowing only the best structed state-of the art facilities, in- shop for their school of choice. He said cluding a zoo, a robotics lab, and an or brightest students to attend. this would provide healthy competition, A study conducted by David Olympic-sized pool with an under- Lindalyn Kakadelis is Director of likely clean up the learning environment, water viewing room. Meanwhile, the North Carolina Education Alliance. Salisbury, director of the Center for Edu- and help the many at-risk students at- cational Freedom at the Cato Institute, tending the lacking schools. cj July 2005 CAROLINA 10 Education JOURNAL School Reform Notes Homeschool convention packs them in ‘Dishonest’ graduation rates Annual Conference and Book Fair dispels notions of families bunkered at home in isolation The Charlotte Observer reports that most states, including North By HAL YOUNG Carolina, are reporting lofty high Contributing Editor school graduation rates that far RALEIGH exceed reality and mislead the riad radio station WSJS-AM had public about how schools are per- set up a live broadcast from Win- forming, a private analysis found. ston-Salem’s Benton Convention The majority of states, 36 of TCenter, and the Friday afternoon pro- them, say 80 percent to 97 percent gram was on a station break. Scanning of their high school students grad- the crowded aisle ways in the exhibition uate on time, according to state hall, host Mike Fenley was obviously figures provided to the Education impressed. Department. “We do a lot of remotes from this Those numbers show “ram- place,” he told his guest, “and you have pant dishonesty,” said Kati Hay- really got the people packed in here.” cock, director of The Education His observation was on target. Ac- Trust, an advocacy organization cording to one source, this was one of for poor and minority students. the top five convention events in the The Trust reviewed the 2002-03 region — two of which are the mas- graduation rates that states had to sive International Home Furnishings provide this year. Market. This was not your average trade A series of independent show, though, and the participants here analyses show the graduation rate are an unlikely group. across the states is closer to 70 This was a homeschooling con- percent, meaning almost one-third vention, and typically enough, the of students don’t finish on time, or entire event was planned and run by at all. The Education Trust singled volunteers. out North Carolina for criticism. North Carolina gets its A social occasion rate by measuring the percent- Although some still hold a stereo- age of graduates who finish in type of homeschooling families living four years. Under that method, in self-imposed isolation, the annual the state reported a 97 percent Conference and Book Fair sponsored graduation rate. But because only by North Carolinians for Home Educa- Book fair vendors offered everything from textbooks and art supplies to laboratory graduates are reviewed, the state tion quickly dispelled the notion. This equipment (Photo: Lorie Codispoti/NCHE) doesn’t count a single dropout. year’s event, the 21st, again topped President Bush and Educa- 8,000 in registration, as it has every year vania, and California host conventions of conference is important, as Nancy St. tion Secretary Margaret Spellings since 2001. similar magnitude, though nearly every Marie suggested. Although there is have said this year that nation- Unlike many conventions, this state has at least one event. more than an acre of floor space in the wide only 68 of every 100 ninth- event is organized almost entirely by Statewide, the N.C. Division of book fair downstairs, and a “book fair graders will graduate on time. Yet volunteers. Nancy St. Marie, NCHE Non-Public Education reported 54,501 only” registration is offered, workshops only 11 states put their graduation conference vice president, leads a small students being homeschooled in are well-attended. This year there were rate in the 60 percent or 70 percent planning committee and an event crew 2004. That number is expected to top 134 sessions offering advice on teaching range, the report finds. of more than 200 to select speakers, 60,000 this year. A large number of them specific subjects, working with learning contract hotels and caterers, and chase are members of local support groups, difficulties, how to choose a college, and down the myriad details of a three-day some as large as 300 families, which strengthening family relationships. Science grants for schools production. This year was compli- provide peers, encouragement, and Though the book fair stayed open, activities for both parents and students; Eight high schools across cated by renovations under way in the keynote audiences numbered more than local group leaders North Carolina will share a $2.3 two adjoining hotels; 2,000, spilling from the main hall to were honored at a million grant to launch health and construction contin- overflow rooms next door. luncheon recently. science programs designed to bet- ued on some floors “The measure for suc- A professional Growing diversity ter engage students, The News & as the convention cess for us is: Were recording company The broadening demographics Observer of Raleigh reports. kicked off. was doing land-office of homeschooling were evident from The grants are being pro- Even so, she people encouraged business at the far the platform. Speakers promoted a full vided through the state’s New said, the conference and uplifted?” end of the conven- range of teaching philosophies, from Schools Project, an effort funded went off smoothly. tion center. Nearly ev- Pat Ferenga’s “unschooling” to Zan largely from $11 million from the “The measure — Nancy St. Marie ery moment of every Tyler’s “Seven Tips for Developing Your Bill & Melinda Gates Founda- of success for us is: Conference VP workshop is available Child’s Potential.” Both Doug Phillips, tion. The group hopes to develop Were people encour- on tape or compact a constitutional lawyer and founder of smaller high schools that can aged and uplifted? disc, and groups or Vision Forum, and Derek and Cheryl foster closer ties between teachers Did they leave, ready individuals often pur- Carter, black board members of the New and students. to start the next year chase entire albums of tapes for sessions York association Loving Education At The five-year grants to of homeschooling? I think the answer they missed. Home, challenged their audiences to the eight schools will be used to both is yes,” she said. “We’re purchasing several for our fully engage their responsibilities, and largely to train teachers to adapt Nancy said the participants’ re- lending library,” said Ernie Hodges, opportunities, as parents and citizens. to smaller schools and on lessons sponse to the disruption was typically head of the 250-family Forsyth Home The Carters and other black designed to integrate different accommodating. Educators and NCHE administrative homeschoolers were sought out by a subject areas. “We hear over and over again that vice president. “They’re an important black newspaper, the Winston-Salem Each of the programs will North Carolina’s homeschoolers are resource,” he said, though he noted Chronicle, though their message and operate essentially as a separate very friendly, and the vendors love to many FHE families wee present at the school. cj come here,” she said. The size of North Carolina’s confer- conference. ence doesn’t hurt. Only Florida, Pennsyl- That educational aspect of the Continued as “Homeschool,” Page 11 CAROLINA July 2005 JOURNAL Education 11 Homeschool: Numbers Expected to Surpass 60,000 in 2005 Continued From Page 10 concerns were common to all home educators — a quest for a personalized educational experience for their chil- dren, and a desire to pass their heritage and values to their children. NCHE wants to make those dreams more accessible to new North Carolinians, too. NCHE’s partnership with the Latin American organization El Hogar Educador was announced at the keynote, and new resources in Spanish were displayed at NCHE’s informa- tion booth in the book fair. Volunteers were being recruited to help reach this growing population. Families Randy and Sue Davis of Nash- ville brought their entire family for the conference. Randy, a pharmaceutical sales representative, was characteristi- cally precise about their goals. “We came for three reasons,” he said, “to re-focus, to buy books, and to prepare for Ryan’s start in ninth grade.” The Davises have always home- schooled, and son Ryan will be their first high schooler. Although they missed last year’s conference, they were looking forward to the encouragement and information this time. Like most participants, they spent significant time and money in the vendors’ booths. “We spent more than we planned,” Zan Tyler (right) and NCHE Conference VP Nancy St. Marie prior to Tyler’s keynote address (Photo: Lorie Codispoti / NCHE) Sue said, laughing. “I think the only way to stay on budget is to stay out.” Randy estimated they bought about a ence was available for younger students, third of their year’s curriculum on site, and a number of infants and toddlers concentrating on books for literature and could be seen watching the crowd from Little League Heaven supplemental reading, and a new science strollers and parents’ arms. program for their younger children. Nancy St. Marie summed up the By Carolina Journal Editor Richard C. Wagner Ryan and his sister Caitlin took part Conference and Book Fair for many in public speaking classes aimed at teen- participants: “It’s a shot in the arm for agers. “Ryan was really pumped up,” people, and that’s good for the whole Sue said. A separate Children’s Confer- year.” cj When Lillie Jo Sweeny threw out the first pitch of the game at Houston’s Astrodome in 1989, she joined the Astros and thousands of boys and girls in celebrating the 50th anniversary of Little League baseball. The event also saluted her deceased husband, Odie Sweeny, a Little League legend who managed a never-say-die team for 38 years — a record in Texas and one of the longest streaks in the nation. Little League Heaven: The Legend of Odie Sweeny, an inspirational biography, serves a generous slice of Americana and traditional values.

Available at PublishAmerica.com, Amazon.com and at major bookstores. July 2005 CAROLINA 12 Higher Education JOURNAL Course of the Month Report Proposes Changing UNC Governance “Freak”-ishly easy A’s Summertime, and the Recommendations include fewer board members, more campus delegation learnin’ is easy … or so one would think if one encountered North By SHANNON BLOSSER Carolina State students discussing Contributing Writer their distance-learning “Multi- CHAPEL HILL disciplinary Studies” course in newly released study commis- “Environmental Ethics”: sioned by the John William MDS 201: Environmental Ethics Pope Center for Higher Edu- Interdisciplinary consider- Acation Policy and undertaken by the UNC Governance Report Recommendations ation of ways in which field of American Council of Trustees and study coupled with personal/cul- Alumni recommends several key 1. Give governor authority to appoint Board of Governors, plus all tural values contribute towards changes in the way the UNC system is boards of trustees either solving or compounding governed. The two foremost recommen- “The governor is elected by all the people of the state and it is his respon- environmental problems; provides dations are that the governor should sibility to put forth a coherent vision of the needs of the state. … Right now, framework for process of making appoint members to the UNC Board of with legislators selecting all members of the Board of Governors, often with ethical decisions. Governors and that the Board should be regard more to local factors than statewide needs, there is no statewide Recently, a student turned reduced from 32 members to 15. vision, no statewide leadership, no clear accountability. ...” to her peers on the online “Study The study, entitled “Governance in Hall” forum of the “Wolf Web” the Public Interest: A Case Study of the 2. Retain consolidated Board of Governors “[T]he single system-wide governing board provides for stronger account- (not affiliated with NCSU) seek- University of North Carolina system” ability and leadership than the major alternative model — a statewide coor- ing reassurance about the class. and was researched and written by dinating agency with separate campus-by-campus governing boards. ...” Her concern was that “the read- Phyllis Palmiero, an education con- ing is killer,” so she wanted to sultant who previously served as the 3. Delegate more authority to individual campus boards of trustees know if anyone had either taken executive director of Virginia’s higher the course and could offer some “Under the current system, the campus boards of trustees have relatively education system. A copy of the report little authority over their institutions and virtually no input into the hiring, firing, advice “or have printed out their can be viewed here. quizzes w/the answers??!!” (All and compensation of senior staff. They thus operate as mere rubber stamps, In all, five major recommendations unable to address many of the real issues affecting their institutions. ...” quotations, sic.) were made in the report. Other recom- Reassurance was swift. For mendations include retaining the Board 4. Ensure a more proactive Board of Governors example, one respondent stated, of Governors to oversee the 16 campus “Suggested areas for Board focus include:1) engaging in statewide strategic “DO NOT DO THE READINGS.” UNC system, delegating more author- planning; 2) responding to state needs, not just UNC needs; 3) addressing He continued: “trust me, i failed ity to campus boards of trustees, and and responding to market forces; 4) engaging the private sector as a direct EVERY QUIZ during the 10 to make the Board of Governors more partner; 5) assessing student learning at the statewide level; and 6) imple- week class and still got an A+ . If proactive. menting a tangible system of accountability for both tuition and taxpayer you post 5-6 times a week in the The most dramatic change would dollars. ...” discussions, you will automati- be for the governor to appoint the cally receive an A+, no questions members of the Board of Governors. 5. Reduce membership of Board of Governors from 32 to no more asked. Just pretend to be some Currently, Board of Governors members than 15 environmental freak and post are selected by the General Assembly. “An oversized board diffuses responsibility and makes meaningful discussion random rants (even if they dont Palmerio contends that the current difficult. Currently, the four committees serve as de facto boards and little make sense) and respond to other system does not allow for the gover- work or discussion occurs at the full Board level. …” people’s questions.” nor, whom she considers as the CEO of Another student agreed, the state, to set the agenda for higher adding “I never read, and just education. used Google on all the quizzes official, the governor.” attention in the General Assembly this to get B-Cs. Discussed like crazy, “Right now, with legislators select- With regards to reducing the board’s session. A provision in the Senate’s state bam, A+.” ing every member on the UNC Board size from 32 members to 15, Palmerio budget would give UNC-Chapel Hill Another offered his take of Governors, often with more regard said larger boards are typically harder and North Carolina State University au- on the course message boards: to local consideration than statewide to work with. In the current configura- thority to set their own tuition rates.) “I feel those message boards are needs, there is no comprehensive vi- tion, most of board’s work is done in the “Institutional authority should be full of bs and people must write sion, no statewide leadership, no clear committees with board members rubber devolved to the campus-based boards just to get the A+ because most of accountability,” Palmerio writes in the stamping the decisions during the full of trustees, with the Board of Governors the stuff doesn’t make sense and report. “A revised structure, along these board meeting. responsible for general oversight,” is the same thing over and over lines, would provide valid checks and Palmerio said that the reduction in Palmerio wrote. “This would remove a again. Geez if you get an A+ for balances and ensure a clear and consti- the board’s membership should be done significant amount of ordinary business posting, I better start now!” tutional separation of powers.” by eliminating positions when current off the Board of Governors’ agenda, One student, however, The current appointment structure terms expire. empowering it to spend more time on was rather rude. In a profanity makes it hard for the board to be pro- “An oversized board diffuses re- the systematic, big picture.” laden response, he said it was “A active to statewide higher education sponsibility and makes meaningful While Palmerio suggests changes [profanity] MDS CLASS. THE needs. Palmerio said when a governor discussion difficult,” Palmerio wrote, to the Board of Governors, she does ENTIRE [profanity] THING IS appoints members, they usually serve later adding, “A smaller board would not recommend for the board to be dis- BASED ON PERSONAL OPIN- with a greater focus on the statewide focus on central issues, allow thorough solved. She said a statewide governing ION. HOW SIMPLER DO YOU needs for the system rather than indi- discussion, and increase each member’s body is needed to implement statewide WANT IT TO BE?” vidual areas or campuses. accountability.” higher education policy initiatives. Finally, someone reported A process in which the governor Palmerio also said the individual Palmiero said that, “the single that he “used google for finding selects the members to a state’s higher boards of trustees have little authority system-wide, governing board pro- the answers,” “got at least a B on education governing board is used in over their campuses, lacking control vides for a stronger accountability and all my quizzes,” “gave up on the several states, according to ACTA Presi- over the hiring, firing, and compensa- leadership than the alternative model reading after a few weaks,” “did dent Anne Neal. tion of senior staff members, including — a statewide coordinating agency with only 2 posts a week (some late “The power to appoint is the power the chancellor. For that reason, they separate campus-by-campus governing too),” and “still got an A- in the to lead,” Neal said. “If higher education cannot address the unique needs and boards.” use, such as to implement a class.” cj is to have statewide leadership, that problems of their institutions. (The statewide measure of educational qual- can only come from the higher elected role of boards of trustees has received ity. cj July 2005 CAROLINA JOURNAL Higher Education 13

$145,000 annual salary Commentary New Diversity Post at ECU Don’t Question UNC’s ‘Edwards Center’ By BRIAN SOPP ll right, you skeptics, just instead suggest ways to reduce Editorial Intern why is it so hard to believe regulation, cut bureaucracy, and RALEIGH The report makes no that John Edwards’ cen- otherwise favor a more hands-off ast Carolina University recently Ater at UNC Law isn’t really about approach toward people’s incomes announced the hiring of a new mention of intellectual solving poverty? Why don’t you and decisions? Is that because you administrator. Sallye McKee is believe all those statements about think having government dictate ECU’sE choice to fill the newly created diversity or a diversity how Edwards’ interest in the center people’s financial decisions tends role of Assistant to the Chancellor for is not political? Why to increase all kinds Institutional Diversity. of ideas. do you continue to of societal costs that Currently, McKee is the associate think it’s simply about disproportionately vice provost for urban and educational giving Carolina pub- harm those in pov- outreach at the University of Minne- Diversity. ECU already had in place licity and Edwards an erty? Do you think it sota-Twin Cities. Prior to that, McKee such diversity offices as its Office of issue for 2008? makes it harder for was associate provost for multicultural Intercultural Student Affairs, its Office Is it the timing of people in poverty to affairs at the University of Denver. Before of Institutional Equity, and its Ledonia the center’s creation? find employment, then she served as vice provost at Bowl- Wright Cultural Center. Is it because no one’d buy affordable goods, ing Green State University in Ohio. She Despite those existing offices, the 2003 heard a peep out of and receive charity begins her duties at ECU July 1. ECU Diversity Task Force Report reported Chapel Hill about a from concerned indi- its desire to “facilitate the development of According to ECU, the Assistant to poverty center until viduals? the Chancellor for Institutional Diversity a culturally pluralistic curriculum,” one of the Center on Poverty, Is your skepti- “will play a principal role in crafting and the objectives of the Office of Institutional Work and Opportu- cism also because articulating a vision of East Carolina Diversity. That would include the Ethnic nity was announced Edwards and UNC University as a diverse and inclusive Studies minor, which has been an option in early February? officials appear to use institution of higher learning.” More for students since 1991. (The program’s Is it that you remember that after the terms “poverty” and “poor” specifically, this administrator “will director, Dr. Gay Wilentz, declined to Edwards’ loss in November, UNC interchangeably? Does that con- contribute to the institution’s diversity provide Carolina Journal any informa- Law School Dean Gene Nichol cern you because it’s not the sort of efforts through honest, open dialogue tion, even the course names, required for and collaborative networking with ad- the minor. openly talked about his desire to mistake serious academics make? ministrative, faculty, staff and student ECU’s Diversity Task Force Report get Edwards into UNC Law? Is it Is it because you know that “pov- colleagues in the development and defined diversity “in a broad context to also that the center’s whirlwind erty” is privation, the lack of basic evaluation of campus diversity pro- include the representation, integration and creation came without input from necessities, but “poor” is a relative grams, policies, and practices.” interaction of different races, ethnicities, lawmakers or the public? That marker that does not necessarily The position pays an annual salary cultures, national origins, abilities, reli- UNC seemed most interested in mean living in poverty? Is it also of $145,000. gions, orientations, intellectual positions rescuing a darling politician on the because statistical measures of peo- “Sallye McKee is an outstand- and perspectives.” The report makes no brink of political irrelevancy? ple in poverty in America generally ing leader who will help us realize mention of intellectual diversity or a di- Or is it also because Edwards exclude all current government the potential of East Carolina,” ECU versity of ideas. announced his new directorship services (food stamps, housing aid, Chancellor Steve Ballard said. “She will In 2003, 60 percent of faculty and staff not anywhere between Murphy etc.) they receive? Do you think make a difference on our campus, and at ECU and 60 percent of the student body and Manteo, but in New Hamp- Edwards’ confusion of the terms I am tremendously excited about this were women. In addition, 21 percent of shire, site of the first presidential denotes not scholarship on his part, appointment.” faculty and staff in 2003 and 22 percent of primary of 2008, at a Democrat but demagoguery? The appointment of McKee to this students in 2004 were ethnic minorities. Only fundraiser? Does Edwards’ consistent new position comes one year after ECU 28 percent of North Carolinians are ethnic Is it because Edwards keeps call for raising the minimum wage created its new Office of Institutional minorities. cj talking about governmental make you more doubtful about the “solutions” to the problem? Does seriousness of the center? Is that it have anything to do with Ed- because you know the minimum wards’ recent speech at a Democrat wage hurts the poorest the hard- Fast Growth at For-Profits fundraiser in South Florida, where est? Do you wonder why the man faculty members at degree-granting he advocated such ways to fight who was the only choice to lead By SHANNON BLOSSER institutions grew by 5 percent. But the poverty as raising payroll taxes UNC’s poverty center doesn’t seem Contributing Writer amount of administrators at those in- to support Social Security, rais- to know the effects of wage floors CHAPEL HILL stitutions during the same time frame ing taxes via “roll[ing] back tax on the least employable? Are you hile traditional institutions jumped by 20 percent. cuts,” raising the minimum wage, amazed he would seek to make the were busy creating new ad- At for-profit institutions of higher expanding the earned income tax poorest people harder to hire — in ministrative and executive education, however, the number of credit, and “doing something about the name of helping them? Wpositions, for-profit institutions were inner city schools”? Is that why you think schol- faculty grew by 44 percent. By way of busy hiring instructors. comparison, that is nearly nine times Did rehashing those worn- arship isn’t engaged with the That’s one finding from a report re- the rate of growth at traditional insti- out socialist notions increase your “Edwards center,” that it’s all leased recently by the National Center tutions in faculty. But it is only two skepticism about the program’s about politics? Is that why you for Education Statistics, which compiles and a half times the rate of growth in promise of “innovative and cre- find UNC’s interactions with the statistics for the U.S. Department of administrators. ative” solutions to poverty? Do Edwards campaign extraordinarily Education. The report also found that degree- you wonder whether an econom- shameful, like institutional prosti- The report, entitled “Staff in Post- granting institutions hired a dispro- ics-based approach to alleviating tution? secondary Institutions, Fall 2003, and portionately higher amount of adjunct poverty would seek to scale back Are those all your reasons, or Salaries of Full-Time Instructional instructors than full-time faculty. The rather than increase governmental are there more? Faculty, 2003-04,” examines more than number of full-time faculty increased by interference with the economy? Do 6,500 institutions in higher education. 2 percent, while the number of part-time you think a center truly focused Sanders is a staff writer for the Pope Institutions surveyed are those which faculty increased by 10 percent. on helping the impoverished Center for Higher Education Policy. Visit partake in the federal government’s Also, the ranks of instruction and — and completely independent of PopeCenter.org for more information student-aid programs, whether or not research assistants at degree-granting Democrat Party politics — would about its programs. they award degrees. institutions increased by 12 percent From 2001 to 2003, the ranks of from 2001 to 2003. cj July 2005 CAROLINA 14 Higher Education JOURNAL

Bats in the Belfry N.C. House Moves to Repeal Mind-Reading, or How to Object Tuition Waiver for NCSSM Grads

By SHANNON BLOSSER would have done without the incentive To a Study Without Reading It Contributing Writer — attend a UNC system school. he Pope Center for Higher ever, that Warren has rushed to CHAPEL HILL From 1998 to 2003, before the tuition Education Policy’s publica- denounce apparently fair-minded, provision in the state House’s waiver was enacted, the study showed tion of its report “Governance efficient, smart, democratic, even version of the state budget that 663 NCSSM graduates opted to Tin the Public Interest: A Case Study boring, ideas. Take, for example, would eliminate the controver- attend a UNC system school. An ad- of the University of North Carolina her emergency e-mail dispatch to Asial tuition waiver program for gradu- ditional 494 students enrolled in either System” again brought out the UNC N.C. State faculty to warn them ates at the North Carolina School of one of the state’s private institutions or system’s most vocal mind-reader. against a Pope Center conference Science and Mathematics. an out-of-state institution. Unfortunately for UNC, but not for on campus last year. It’s one of several differences be- “Students are in effect paid to do comedy, this mind-reader’s always The theme of the Pope tween the Senate’s budget and the pro- what they would have done anyway,” on the fritz. Center’s conference was “Freedom posed House budget that was discussed the report stated. She is Prof. Cat Warren, and the American Campus,” and in a House Appropriations Committee Blosser and Leef argued that the director of N.C. State’s program in one of the panels sought ways to meeting. tuition waiver serves no economic women’s and gender studies, asso- bring greater freedom to academic The Senate included a provision to impact to the state because there is no ciate English professor, and member discourse. One of the many speak- continue the tuition waiver in its budget guarantee that the students would re- of N.C. State’s Faculty Senate. War- ers at the conference was David passed in May. The provision, if it is main in North Carolina upon graduation ren wrote a letter to the editor of The Horowitz, who spoke on the sub- approved by the House, would have to from college. They argued that because News & Observer of Raleigh, pub- ject of the Academic Bill of Rights. be approved by the Senate when House a student graduates from UNC doesn’t lished June 13 under the headline One can see why Warren and Senate leaders meet to discuss dif- mean that they would turn down a job “Beware, UNC system,” objecting to would find the conference so ferences in the budgets. offer from an out-of-state firm. the report. threatening — on the surface, it The $17 billion budget that passed The report also looked at academic The study “seems so fair- seemed beneficial, even good. Only the House also differed from the Senate’s irregularities at the school. Even though minded, even a mind-reader version by eliminating provisions that the school receives high marks for its boring,” Warren could expose would allow the University of North award-winning students and their high wrote, and what could Carolina and N.C. State University SAT scores, school records suggests “[s]ounds ef- possibly be to set their own tuition rates and that evidence of grade inflation, lower SAT ficient, smart, wrong with it. would charge in-state tuition rates to scores, and declining graduation re- and demo- Believe any student on a scholarship. quirements have been present during cratic.” After it or not, it Unlike the Senate version, the House Gerald Boreman’s tenure at the school. all, all it does is, turned out that budget also proposed a “Coaching and In 1999, 43.5 percent of the final “ some tweak- the Pope Cen- Coaching Assistance Coaching Fund,” grades given at NCSSM were A’s, ing to the UNC ter conference whose purpose, according to the budget whereas 52.9 percent of their final grades systems Board for academic bill, would be “to provide scholarship of the Class of 2003 were A’s. Faculty of Governors. freedom was loans to students who are pursuing col- members who spoke on the condition Downsize the “most critical lege degrees to become public school of anonymity said that NCSSM admin- board and have issue before teachers and coaches.” istrators have told teachers to raise their the governor us” at N.C. Students who are awarded a schol- grades and that the school wants grades appoint the State, Warren arship through the fund would be of- that “colleges can look at.” members so learned. And fered a curriculum on coaching skills, Average SAT scores have dropped that a statewide Horowitz’s the goal being to motivate students to 13 points in a two-year period from vision can pre- Academic Bill remain in the coaching profession and 2004 to 2002, the report found. The vail.” of Rights con- provide leadership to their schools. A drop comes as other schools, including Frighten- tains “carefully total of 25 scholarships could be made Raleigh Charter High, whose students ing stuff indeed. chosen language” that “does not available each year through the plan. had the state’s second-highest average But thank goodness Warren fully expose the agenda behind it.” Created during the 2003 budget SAT score, have seen an increase in aver- uses her special powers to demon- (Egad! A hidden agenda. Evil...) negotiations, the NCSSM tuition waiver age SAT scores. strate that all is not how it seems. Nevertheless, even though gives graduates of the school free tu- The drop in the SAT average, the “There’s nothing independent this nefarious agenda is nowhere ition to attend any UNC school of their report states, can be attributed to the about this study, misleadingly titled to be found in the text, Warren choice. school admitting students for reasons ‘Governance in the Public Interest,’” “discovered” it: “the real agenda- It does not require students to have other than academics. she wrote. imposing political litmus tests on a certain grade-point average upon Graduation requirements were Soon she explained why: “So course content.” graduating from the residential high changed during the implementation of what does ACTA, based in Wash- Granted, discovering scary, school located in Durham. The tuition a trimester scheduling system, accord- ington D.C., and a big fan of big modern-day bugaboos within texts waiver was pushed through the Senate’s ing to the report. The new system cuts donors calling the shots, want with when they are nowhere specified budget process in 2003 by Sen. Kay the time that students actually spend in the North Carolina university sys- nor even implied in them is not at Hagan, D-Guilford County, who at the class and a student can skip a semester tem anyway? It wants to undermine all unusual to the current way of time said the waiver was one of the best of math and still graduate. a solid and independent system “teaching” English literature. For aspects to the budget. “By taking away the focus from of public education so that the far example, King Lear molested his The House’s move to repeal the tu- science and mathematics and lowering right can wield its influence more daughters … before the play began! ition waiver comes six months after an the graduation requirements, NCSSM directly. It wants structural change Still, it can be a formidable Inquiry paper published by the John W. has lowered the academic quality of the to represent its own interests.” weapon in political discourse: Pope Center for Higher Education Policy school even more,” the report stated. Presumably, the reaction from What you propose is reason- criticized the program as not providing If approved, the House’s provi- within the bowels of the ACTA able, efficient, and smart, but you’re a any economic benefit to the state. sion would award the tuition waiver wing for Undermining Solid and conservative, therefore your proposal is In the Inquiry, “Tuition Waivers at to graduates through the end of the Independent Systems of Public by default evil and destructive. Noth- the North Carolina School of Science and upcoming school year. Education headquarters was swift ing less could be expected from a Math” (No. 21, Jan. 2005) authors Shan- Students who have already received outrage. Curses! Foiled again! university professor and program non Blosser and George C. Leef showed a tuition waiver would continue to receive the funding while they are in a It’s not the first time, how- director. cj that the tuition waiver was largely an award for students for something they UNC school. cj July 2005 CAROLINA JOURNAL Higher Education 15 New leader should focus on learning What the University of North Carolina Needs in Its Next President

By GEORGE C. LEEF added. In broad automatically Associate Editor outlines, this answer affirma- The new president RALEIGH would entail tively, and then he University of North Carolina testing incom- go on to explain should revel in system is hunting for a new ing students on how diversity innovative thinking, president. Molly C. Broad, the their basic aca- makes for a bet- Tcurrent president, has announced her demic skills and ter learning not resist it. resignation and a committee of 13 dis- general knowl- environment, tinguished individuals has been given edge. (By that, helps to pre- the task of selecting her successor. I mean subjects pare students years, as it has undertaken tasks — Perhaps it’s just public relations, such as science to live in a very economic development, for example but the committee has scheduled “town and history, not diverse world, — that are tangential to its mission. hall” meetings around the state this who was most is a response Institutions that try to be all month to hear from people who have recently fired on “The Apprentice.”) to America’s need to achieve social things to all people usually wind up ideas on this matter. I have Students would take justice, and so forth. doing nothing very well. UNC’s next some definite ideas about a comparable exam Candidates who give that sort of president should be someone who the characteristics of the in their senior year. answer should be dropped. Diversity understands that. person the search commit- The results would be is no more a virtue than gravity is. Think outside the box tee should choose. compared to give us an Of course people are different idea about the educa- in innumerable ways. That’s simply Fourth, the committee should Academic integrity tional progress made a fact. A university does not make look for a candidate who is willing First, the individual by students. We’d have itself any better by fixating on certain to think outside the box. There are must have an overriding an objective measure of aspects of difference (particularly race, sound, attractive ideas under discus- commitment to academic that progress. gender, sexual orientation) and trying sion (or even at the implementation integrity. Of course, every To my knowledge, to engineer itself to give a high degree stage) in other states that the system candidate is going to pay no college or university of representation to people from sup- ought to consider, such as alternatives lip service to academics. currently does this. A posedly “under-represented groups.” to tenure, voucherizing much or all of The tough job will be to candidate for UNC UNC has been playing this diver- the support for higher education (that get through the rhetorical president who would sity game for years, and it comes with is, fund students rather than institu- smoke-screen to find out Molly C. Broad pledge to make it a top a high price. That price is the loss of tions), and turning to the free market if it’s just talk. UNC System President priority should be put at focus on excellence. Universities are for ancillary services like housing. One probing ques- the top of the list. about the discovery and transmis- To date, the UNC system has sion of knowledge. The race, gender, been resistant to innovative thinking. tion would be to ask whether the Be wary of diversity mania candidate would work to institute sexual orientation and so on of the The new president should revel in it, a systemwide program to evaluate Second, the next president should students, faculty and administrators not resist it. academic value added. Plenty of stu- be someone who is not in the thrall are entirely irrelevant to that. Whether anyone with those char- acteristics would seek the UNC job dents go to college mainly for fun and of the mania for “diversity.” The Be an innovative thinker to get a degree with as little effort as committee might consider asking a is questionable. Whether the search possible. Just because they graduate forthright question such as “Do you Third, the next president should committee would seriously consider does not ensure that they have learned believe that diversity is a virtue?” and be someone who can say “no” to such an individual is even more ques- anything valuable. then be prepared for a lot of carefully spending proposals that are not criti- tionable. Perhaps we’ll end up with a The next UNC president should rehearsed verbiage. cal to the educational mission of the politically correct and politically con- be someone who will institute a Most individuals who have university. UNC has experienced a nected president, but we can hope for means of assessing educational value been around higher education will great deal of “mission creep” over the better. cj

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See what one Raleigh paper called “Matt Drudge with Class” July 2005 CAROLINA 16 Local Government JOURNAL Town and Country BRAC Choices Mixed Bag for North Carolina Town seeks grant for center Pentagon’s decision is a net loss for state of 422 jobs, but some localities will gain positions Orange County commission- ers voted unanimously recently By Michael Lowrey C-130s would be based in Little Rock, Pentagon does business. Secretary of to buy the Triangle Sportsplex Associate Editor Ark. Little Rock Air Force Base ranked Defense Donald Rumsfeld has set out to for about $5.6 million — a move RALEIGH 17th for airlift. Pope’s A-10s would move “transform” the military; a key is having that’s sure to please senior citizens n May, years of waiting came to an to Moody Air Force Base in Georgia. the different branches of the armed forces and those who enjoy swimming end for military communities across Moody was ranked 11th in special opera- seek common solutions to problems and hockey, The News & Observer the country when the Pentagon re- tions-combat search and rescue. and do things together when practical. of Raleigh reports. Ileased its Base Closure and Realignment The BRAC proposal would dra- Even when interservicing is not directly The Sportsplex, located in list. Thirty-three major bases are to be matically increase the size of two re- applicable, the military is using the base- the Meadowlands Business Park closed and 29 are to be realigned. The serve-component aviation units. Both closing process to streamline its support on Business U.S. 70 in Hillsbor- Pentagon projects that the closings and the N.C. Air National Guard at Char- functions. ough, is an 82,000-square-foot realignments will save nearly $49 billion lotte/Douglas International Airport and Several North Carolina facilities facility with a regulation ice rink, over 20 years while producing a military an Air Force Reserve unit at Seymour are affected by the move toward “joint- indoor swimming pool, and fit- that is more capable and efficient. Johnson Air Force Base in Goldsboro ness. ” ness center. For North Carolina, the Pentagon’s stand to gain planes and personnel if the Currently, the program managers Commissioners intend for list brought a mixed bag. The Pentagon recommendations are approved. that oversee the military’s external re- the building to provide a larger estimates the comings and closing would Air Force Reserve and Air National search programs are at seven locations. space in which to offer programs net out to a loss of 422 jobs, though some Guard units usually have eight tanker The base-closing recommendation for senior citizens in central Or- communities would gain. or transport aircraft or 15 fighter jets. would consolidate them all at one site in ange and to continue to provide a Likely the most surprising changes The Air Force has determined that these Bethesda, Md. A total of 122 jobs would public swimming pool. — and certainly the most significant small units are suboptimal and that leave the state with the closing of the The commissioners have — would come in Fayetteville. Pope Air large units would be more effective. As Army Research Office in Durham. been interested in purchasing the Force Base would lose most of its flying a result, it wants to increase the size of The military also wants to build facility to maintain a public pool operations and become essentially an its Reserve and National Guard units new regional interservice military pris- in the central part of the county, extension of neighboring Ft. Bragg. The to at least 12 tankers or transports or 18 ons. The facility for the mid-Atlantic and to attach a senior center to the move would come despite the Air Force’s or more fighters. When combined with region would be in Norfolk. Camp building. own calculations that Pope is among the the planned retirement of older model LeJeune would lose more than 200 jobs best bases, if not the best base, in the aircraft, about 40 percent of current ANG when its prison closes. country for the aircraft based there. and AFR units would no longer be fly- The Navy, meanwhile, is restruc- Thousands of troops coming back ing airplanes. To get to the larger unit turing where and how it overhauls its nd Pinehurst eyes annexation from Europe would be added to the 82 sizes, aircraft would be consolidated at planes. As a result of the changes plus Airborne Division at Ft. Bragg, more than fewer sites. fewer planes to work on, the Cherry Pinehurst is studying the making up for a smaller Special Forces The decision as to where to elimi- Point’s aviation depot will lose more possibility of annexing Jackson unit’s transfer to Florida. The headquar- nate or add flying is largely based upon than 600 jobs. Hamlet, one of three poor, black ters of U.S. Army Forces Command and the Air Force’s military value calcula- The military is also making dra- communities in Moore County U.S. Army Reserve Command would also tions. Both Charlotte/Douglas and matic changes to its medical system. that has asked for municipal move to Fayetteville from Atlanta. On Seymour Johnson ranked favorably The report notes that military doctors services, the Fayetteville Observer net, Fayetteville would come out ahead compared to other AFR and ANG bases. at smaller bases can’t keep their skills reports. about 180 jobs. Charlotte/Douglas ranked 33rd in the sharp because they don’t see a wide Andy Wilkison, Pinehu- The Air Force currently bases two airlift category, ahead of 22 of the 23 ANG enough variety of cases. To address rst village manager, said he has active-duty squadrons each of C-130E C-130 bases. Seymour Johnson was rated this, the Pentagon recommends that hired a planning firm to find out st transport planes and A-10 ground-attack 21 in tankers, ahead of numerous other some smaller military hospitals be whether Jackson Hamlet meets aircraft at Pope. Under the proposal, a ANG and AFR bases. downgraded to clinics. Cherry Point the requirements for annexation. single Air Force Reserve C-130 squadron A major focus of this BRAC round is among the bases that would be af- The community of about 300 would be based there. is implementing changes in how the fected. cj people shares most of its bound- At the core of the BRAC process is ary with Pinehurst. But the vil- “military value,” how useful a base is. lage cannot start the annexation The Pentagon calculates military value process unless 60 percent of the using objective measures. The Air Force land parcels in Jackson Hamlet are rated and ranked 154 domestic instal- developed, Wilkison said. Jack- lations separately on their ability to son Hamlet is the largest of three support different mission types such as unincorporated Moore County fighter, tanker, airlift (transport planes), communities that, in the past year, and special operations-combat search have asked local governments and rescue (including A-10). for sewer service, better police The ratings considered numerous protection, and trash pickup. The factors that captured a facility’s ability historically black neighborhood to handle current and future missions, was once home to the people who condition of infrastructure, capacity to built and worked at the Pinehurst support contingency, mobilization and golf resort, but it did not become future forces, and cost of operations part of the village when it incor- and manpower. Several different factors porated in 1980. were considered in each subcategory. The two other communi- Pope Air Force Base is highly ties seeking services are Midway, ranked. For special operations-combat which is surrounded by Aber- search and rescue, Pope is tops of all 154 deen, and Waynor Road, which Air Force installations in the country. abuts part of Southern Pines. In the airlift mission, Pope ranks sixth, County officials have said that and rates ahead of the two other ac- providing sewer lines to Jackson tive-duty C-130 airlift bases and all Air Hamlet would be too expensive National Guard and Air Force Reserve without a federal grant. cj C-130 stations. Under the proposal, all active-duty July 2005 CAROLINA JOURNAL Local Government 17

Tax Refunds Targeted for Debt Commentary

By DONNA MARTINEZ COLLECTION LEADERS Associate Editor The Time for TABOR is Now RALEIGH Top 10 Collecting Counties ocal budgets around the state n September of 2002, the John past nine years.” are nearly $7.9 million fatter this Gaston, $981,462 Locke Foundation released a Lest you think that is specula- year than anticipated, thanks to Wake, $515,220 budget analysis on the heels of tive, Colorado has returned more La state program that deducts from state Cleveland, $473,779 Ithe 2002-2003 budget cycle. The in- than $3.2 billion in refunds to the tax refunds the past-due bills owed by Rowan, $413,321 teresting point was the final line of citizens of that state over the past residents to cities and counties. Nearly Vance, $279,487 the first paragraph that said, “Tax- 13 years. Establishing a baseline 46,000 people have been forced to pay Rockingham, $254,995 payers are the big losers — enter- for spending based on population off 55,882 debts over the last six months Wayne, $254,930 ing the second of what and inflation ensures when the Department of Revenue Durham, $221,777 promises to be three that legislatures don’t matched their Social Security numbers Hertford, $165,887 straight years of huge get out ahead of the to bills owed to nearly 200 local govern- Lincoln, $158,155 tax increases.” population’s ability to ments This is pertinent; pay. Without it, you Since the North Carolina Local Top 10 Collecting Cities we rarely look back have year-over-year Government Debt Setoff Clearinghouse to see how easily the budget deficits and tax was created in 2002, just over $15 million, Durham, $151,110 legislative process is to hikes that leave people representing 100,890 delinquent tabs, Winston-Salem, $137,720 predict without sub- like Rep. Paul Luebke has been returned to local entities that Lexington, $123,297 stantive changes to the to hallucinate about the supplied services but didn’t get paid. New Bern, $120,224 way things should be state having a “revenue Administrators say the bills -- some Asheville, $119,903 done. The time has long problem” when in actu- dating back 10 years -- are left behind High Point, $118,979 passed when North ality they simply don’t when people move and forget to pay Rocky Mount, $72,067 Carolina should have have a cap on their final bills owed at their old address. Greensboro, $72,053 an open debate on a Tax- spending habits. Sometimes, they say, citizens simply Albemarle, $68,442 payer Bill of Rights (TABOR). With TABOR, the citizens actu- ignore repeated written requests for Elizabeth City, $48,971 Contextually, we can almost ally understand the limitations of payment. The outstanding balances typi- look back with glee at the $13 billion spending. It doesn’t force cuts on Source: www.ncsetoff.org cally are parking fees, sewer and water ‘03 budget as we now face a $17 bil- any programs, but it does require service, property and vehicle taxes, and lion ‘06. That means that the budget that the elected leadership prioritize paramedic visits. set a record. has grown by a bit over 30 percent spending and demand accountabil- Local officials say they’re attracted The rules of the clearinghouse in three years. At the same time, ity. Simply put, if someone wants to the clearinghouse because it’s more are straightforward. Governments can inflation and population combined more money for a new program or cost efficient than the traditional method submit any debt that’s more than 60 have only grown at about half of to expand spending significantly, of mailing notices to customers. “In days old and valued at $50 or more. If that. And that’s the reality of what a they have to find the money from many instances, you can spend more an outstanding bill is less than $50 but Taxpayer Bill of Rights corrects, out another program or get a super than you can get back” using old-style a resident owes more than one, multiple of control spending by a legislature majority to approve new spending. paper and phone follow-up, said Re- bills can be combined to meet the $50 that casts aside concerns for who And this is the way state govern- becca Troutman of the North Carolina threshold. pays the bills. ment SHOULD run. Association of County Commissioners When a match is made to a tax The General Assembly has a It has become far too easy to (NCACC), which administers the pro- refund scheduled for payment by the bill in each house (S274 and HB424) pass along tax increases, make tem- gram with the North Carolina League state, the debt is subtracted from the that would have at least started porary taxes permanent, or leave of Municipalities (NCLM). refund and transferred to the city or North Carolina down the path to an 80-year-old tax system in place “It’s a wonderful, wonderful tool,” county. The taxpayer is charged a $15 taxpayer accountability. In short, without significant changes. This said Judy Bingham, director of Tax Col- fee and issued a check for the remaining TABOR allows government spend- state has watched as states around lections for Gaston County, which had balance of the refund. The $15 fee is split ing to grow using the previous us have become far more favorable recouped $981,000 by mid-June, the between the company hired to process year’s inflation plus population to do business in due to their better highest collection rate of any participat- program data – Five Star Computing growth. Any spending beyond that and cheaper tax system. We’ve ing county. The funds represented back of Columbia, S.C. – and NCACC if the would require a three-fifths super become so ashamed of our tax taxes and other services. “We have an IT debt was owed to a county, or NCLM if majority of both houses. In other structure that we have to offer Dell person constantly updating our files,” it involved a municipality. The fee split states such as Colorado, additional $243 million just to consider work- she said of the steady flow of dollars compensates for administrative costs. spending requires a vote of the ing with us. And as of July 1 we’re back to the county. The state of North Carolina also people in the form of a referendum. now the only state that forces local By using the state’s electronic uses the system to close out its delin- Also bear in mind that TABOR-like property taxes to pay for Medicaid. approach, some local resources can quent accounts. Sometimes, bills are proposals have been introduced The time has come for the be diverted to non-collection tasks. overdue to both a local government every year since 1994 and have lumbering leadership to wake up That opportunity, along with the fact and the state. In those cases, the state generally been dismissed by the or be replaced. A Taxpayer Bill of that the program is free, has spurred pulls rank and retrieves its cash first. leadership. Rights is a healthy start. Even South phenomenal growth in participation. NCLM’s Chief Financial Officer Tom Dr. Barry Poulson of the Carolina’s governor has introduced In July 2003, 54 cities and towns and 41 Medlin characterized the program as an University of Colorado has done one. counties were enrolled and providing outstanding deal for local budgets, and numerous studies on the effects of If we want to return North data to support a match to a state tax an issue of fairness for taxpayers who TABOR legislation on actual state Carolina to national prominence return. Two years later, the number of pay on time. “Our cities and counties are budgets. What he said about North in roads, schools and tax structure, cities and towns involved has nearly able to collect 100 percent of what they’re Carolina is amazing: “Had North we need to have the wherewithal to tripled to 156; the number of counties owed,” he said, noting that some of the Carolina implemented a Taxpayer’s address TABOR as a worthy debate. Bill of Rights in 1995, the state Otherwise, we’ll simply be looking has nearly doubled to 76. That jump has debt would have been written off. would have amassed a $1.9 billion at a $22 billion budget by 2009. translated into more and more money Residents can appeal the clear- rainy day fund that would have being returned each year. inghouse’s action if they believe the offset the budget shortfall that oc- In 2002, just over $234,000 was past-due bill is a mistake. Bingham said curred during the recent economic Adams is vice chairman of the Lee transferred back to cities and towns. In Gaston County hasn’t received any for- downturn. Moreover, taxpayers County Board of Commissioners and 2003, the amount jumped to $1,062,875. mal appeals, but sometimes hears from would have received $1.4 billion in director of the Center for Local Innova- Last year, $5.8 million rolled in, and with residents. “When they call us, we explain tax rebates and reductions over the tion. Visit www.LocalInnovation.com. six months remaining for collection this it -- why they need to pay it -- and they year, the amount recouped has already seem to understand,” she said. cj July 2005 CAROLINA 18 Local Government JOURNAL

Local Innovation Bulletin Board From Cherokee to Currituck HOV becoming HOT Union County considering any states are convert- to more than 2 percent over the last moratorium on subdivisions ing their high-occupancy 20 years. vehicle lanes to high-oc- Over the seven years it oper- ast-growing Union County is nesses had acquired the right to use Mcupancy toll lanes in order to ease ated, the LACDB committed $35 considering adopting a yearlong the street in the 1970s, something that congestion. million to businesses in needy urban moratorium on new subdivisions Linder had not considered in putting HOV lanes are designed to centers; of that, $26.6 million of that Fin unincorporated areas. The move the proposal together. encourage car-pooling by allowing was actually invested, which as of would be designed to give the county The owner of an adjacent building only vehicles with more than one October 2003 carried a fair-market “a breather,” to reduce the immediate demanded compensation for the road occupant to use them. However, in value of $7.6 million. need for additional schools while the closing, claiming that it would reduce many areas where most people drive Funds tended to go the po- county studies an adequate facilities the value of the property. Linder in alone, HOV lanes are underused. As litically well-connected, such as city ordinance. turn suggested that the city provide a result, the lanes are being converted council members directing funds to In a vote June $300,000 to resolve the into HOT lanes for drivers who are their own districts, instead of those 6, a majority of the dispute. willing to pay. with good business prospects. Un- five-member Union Union County was Though several HOT lanes provide revenues for like private banks, which invest County Commission members of city coun- states and convenience for drivers. their own resources and specialize voted to move toward the second-fastest cil strongly support- Increased fuel-efficiency of cars has in finding economic projects to fund, adopting the tempo- growing county in the ed giving incentives, flattened federal gas-tax revenues. community development banks lack rary ban within 60 Linder withdrew his The tax, which has been 18.4 cents the profit-motive. days. As a first step, state between 2000 request in the face of per gallon since 1993, is not tied Community development the commission voted uncertain prospects to inflation, leaving states short of banks are created on the assumption to immediately stop and 2004, with a pop- before council as a highway funds. that sometimes market forces don’t approving new water whole. Converting HOV lanes to HOT react to the needs of communities, and and sewer connec- ulation of 152,000. “I thought this lanes raises additional revenue and is that when that occurs it is appropriate tions. was something that a cheaper way to ease traffic conges- for governments to step in and offer Developers and we didn’t need to di- tion than building new lanes. financial services. After start-up the property-rights advo- vide the community,” Advances in technology make banks are expected to be profitable. cates opposed the action. Greensboro Mayor Keith Holliday said toll collection easier and more expedi- Union County was the second-fast- to the News & Record of Greensboro in ent for drivers as well; electronic toll Childless cities est growing county in the state between response to Linder withdrawing his tags allow drivers to pass through Vibrant cities such as San 2000 and 2004. The county’s July 2004 request. booths without stopping. Francisco, Seattle, and Portland are population was estimated at nearly 152,000, up 28,000 since the 2000 census. In San Diego, HOT lanes have becoming childless because high City loan for interstate? been in used since 1998. Drivers are housing prices are keeping young By 2030, Union County’s population is charged varying fees at different times expected to top 300,000, double what families from moving in, New York The city of Charlotte is examining of day depending on the amount of it is today. Times reports. the possibility of lending money to the traffic congestion. San Diego County’s “It’s a combination of a great place Central cities are revitalizing state to speed work on Interstate 485, Interstate 15 HOT lanes cost from 50 to live, good schools, and ... I don’t know through the construction of new high- the 69-mile-long outer belt around the cents to $4. if you need any more than that,” Assis- density homes, fashionable restaurant city. Minnesota’s HOV lanes along tant County Manager Joe Lesch said to and shops, and businesses that reflect While most of I-485 is complete I-394 will become HOT lanes. HOT The Charlotte Observer. the tastes of the locals. However, the or under construction, the N.C. Depart- lanes are also being considered To keep up with the rapid growth, atmosphere is not attracting families ment of Transportation’s new seven-year along several roads in Baltimore, county school system officials say the who want affordable housing and road plan would delay work on two criti- Orlando, Denver, Salt Lake City, and county needs to build 16 new schools more space for children. cal I-485 projects until 2012: widening a San Francisco. In April, officials in at a cost of $521 million over the next From 1990 to 2003, Portland, congested portion of the road in south Virginia announced plans for private five years. Ore. grew by 90,000 people, but it is Charlotte and completing the last section contractors to build two HOT lanes The Union County towns of Stall- now educating fewer students than of the interstate in north Charlotte. in each direction along I-495, which ings, Mineral Springs, and Indian Trial in the previous 80 years; as a result, If Charlotte were to provide a loan, connects the suburbs around Wash- have moratoriums in place on new sub- the city will close several schools over work could start as early as next year or ington, D.C. divisions. A similar temporary ban in the next decade. 2007 on the $38 million south Charlotte Reported in USA Today. San Francisco, where children neighboring Cabarrus County expired in June. widening project. Construction of the Community development under age 18 comprise only 14.5 per- $134.5 million north Charlotte segment cent of the inhabitants, has the lowest could be moved up to as early as 2009, Community development percentage of children in any major No money for Wal-Mart when design work is complete. The city banks have a poor record of helping city—no surprise, considering the would be paid back with interest start- the poor, urban communities they median housing price is $700,000. A developer has dropped a request ing in 2012, when the roadwork would are purportedly designed to help, In Seattle, which ranks second that Greensboro provide $300,000 in in- have otherwise begun. economists Robert Krol and Shirley among large cities with the lowest centives to help build a Wal-Mart store. “I certainly think it is a viable Svorny of California State University percentage of children, dogs actually The proposed aid would have been the option, but we have $15 million debt say in an article in Regulation. outnumber children. first time the city used money to help capacity this year and that doesn’t go One example is the Los Ange- The falling birthrate nationwide attract a retailer. very far,” Charlotte City Council mem- les Community Development Bank, has contributed to the problem as Last year, developer Don Linder ber Pat Mumford said to The Charlotte which shut down in March 2004 well. Indeed, North Dakota is losing announced plans to redevelop the aban- Observer. Mumford chairs the council’s because of excessively poor manage- more children than any other state. doned Carolina Circle mall. The complex transportation committee. ment of risk. The bank’s charge-off However, mayors are worried that the would include a Wal-Mart store, a home- Charlotte transportation officials rate, the portion of loans that the decline in children will diminish the improvement center, and smaller stores. note that any loan to the state would bank writes off as irrecoverable, was overall quality and diversity of their In order to have enough space for both likely mean that some city road projects 40 percent; the current charge-off rate cities and reduce the human capital large retailers, Linder’s plan called for would be delayed. Cary and Greensboro of private commercial banks is less needed to support an aging popula- the closing of Ring Road. both have previously lent money to the than 1 percent and has never risen tion. cj The development soon came upon NCDOT to speed up highway construc- an unexpected problem. Nearby busi- tion. cj July 2005 CAROLINA 20 The Learning Curve JOURNAL

From the Liberty Library Book Review

• Christopher Hitchens offers a new interpretation of our Founding Levin’s Men in Black Exposes Court’s Father in Thomas Jefferson: Author of America. Situating Jefferson within the context of America’s evolution ‘Grotesque Perversion’ of Constitution and tracing his legacy over the past 200 years, Hitchens brings the character of Jefferson to life * Mark R. Levin, Men in Black; Reg- groups, but as we have seen in the last as a man of his time and also as nery Publishing, Inc.; 2005; $27.95; several weeks, many senators and spe- a symbolic figure beyond it. Con- 288pp. cial-interest groups are seeking to stack flicted by power, Jefferson wrote the bench with activist judges, rather the Declaration of Independence By MELISSA D. MITCHELL than originalists. Levin devotes an en- and acted as minister to France yet Contributing Editor tire chapter to memos that were largely yearned for a quieter career in the RALEIGH ignored by the news media, which show Virginia legislature. Hitchens also or months, the news accounts have how a group of Democratic senators met analyzes Jefferson’s handling of been overflowing with the U.S. with special-interest groups and plotted the Barbary War, a lesser-known Senate fight over judicial nomina- to keep President Bush’s “originalist” chapter of his political career, when Ftions. Mark Levin’s book goes to the very nominees from becoming judges. Ac- his attempt to end the kidnapping heart of the fight and what it means to cording to Levin, judges who legislate and bribery of Americans by the the average American citizen. Because from the bench actually usurp and Barbary states, and the subsequent this book is written by a conservative diminish the power of Congress; ironi- war with Tripoli, led to the building and has a foreword by Rush Limbaugh, cally, if these senators succeed, they may of the U.S. navy and the fortification some might assume that Men in Black is find themselves reduced to little or no of America’s reputation regarding written for conservatives, but nothing power. As Levin points out, many judges national defense. Learn more at could be further from the truth. Levin’s deemed to be activists or originalists, do www.harpercollins.com. book addresses how an overreaching not vote in a prescribed manor. and power-hungry judiciary is diminish- In each chapter, Levin covers • A Patriot’s History of the United ing the rights of every American. decisions that affect every U.S. citizen. States: From Columbus’s Great Dis- Levin is a noted constitutional Many citizens fret over Roe v. Wade, while covery to the War on Terror, is called lawyer and historian. His love for U.S. ignoring other court decisions that af- “an antidote to the biased approach history and the Constitution became was a notorious anti-Semite. Allegedly, fect their personal lives and erode their to our history” promoted in public ingrained early in life. Growing up in Thurgood Marshall became indifferent freedom. Sometimes the hypocrisy of schools today. Larry Schweikart and Philadelphia, he often visited the his- to his judicial duties and while his clerks these decisions is incredible. Michael Patrick Allen have writ- toric sites where our country was born wrote most of his opinions, he watched For example, the Supreme Court ten a sweeping book that puts the and spent hours listening to the guides soap operas in his chambers. Several of upheld the McCain-Feingold Act, which spotlight back on America’s role as tell about the constitutional debates. the 15 had questionable financial and places severe limits on political speech, a beacon of liberty to the rest of the Levin’s parents were history buffs and business dealings. One justice killed a but the court protected virtual child world. They tell their story straight, frequently discussed American history, man in a duel. pornography. Levin details how the from Columbus’s voyage to the instilling in him a lifelong love of history. Next, Levin lays out the original court, in addressing discrimination, has capture of Saddam Hussein. They His knowledge of constitutional law and intent that the Framers had for the ju- created an atmosphere of reverse racism do not ignore America’s mistakes history allows him to write a book that diciary and separates judges into two that hurts both blacks and whites. From through the years, but put them walks the reader through an issue-by- categories, originalists and activists. illegal immigration to a presidential elec- back in their proper perspective. issue summary of how the courts are Levin says that the Framers “wanted tion, Levin presents the facts that show And they conclude that America’s overstepping the boundaries laid out a court system free from the political how the Supreme Court is legislating place as a world leader derived within the Constitution. pressures of the legislative and executive from the bench. largely from the virtues of our own “Were our forefathers to view branches of government with a narrow According to Levin, the most leaders — the men and women who the American federal government of role and limited authority—a judiciary recent “grotesque perversion of the cleared the wilderness, abolished the twenty-first century, I believe they that respected, applied the rule of law Constitution” concerns Sept. 11. For slavery, and rid the world of fascism would be appalled,” Levin said, noting and the principles of popular sover- the first time in history, rulings by the and communism. Details at www. that activist judges have entered every eignty enshrined in the Constitution.” Supreme Court allow captured enemy penguinputnam.com. area of our lives from the workplace to Levin points out that “originalists follow combatants access to our courts and the bedroom. this mandate; they interpret the law.” the ability to challenge their detention. • Intellectual historian Neil One of the first things Levin ad- However, a judicial activist, rather than Ironically, during World War II, the Su- Baldwin has written extensively dresses in his book is the myth that interpreting the law, legislates from the preme Court upheld President Franklin about the great thinkers and inno- judges have greater insight, wisdom, bench. D. Roosevelt’s order to intern innocent vators who have shaped America’s and vision than the rest of us. Levin Levin uses numerous landmark Japanese-Americans. identity. In The American Revelation: points out that there have been “little cases to illustrate how opinions by In the final chapter, Levin states, Ten Ideals That Shaped Our Country more than one hundred justices” that activist justices can affect a nation for “The framers worried that a president from the Puritans to the Cold War, he have served on the Supreme Court. years. For example, in Plessy v. Ferguson, might amass too much authority.” Today, turns his energies to the unfolding Appointed for life, a practice Levin an activist Supreme Court upheld the he says, “The problem is an oligarchical story of how the American spirit thinks needs to be changed, many jus- opinion that to separate individuals by Court, not a presidential monarchy” developed over 400 years. He ex- tices turned out to be unsuitable for the race was constitutional. Levin points out and offers these suggestions to limit the amines the ideals that have grown position or served beyond their ability that the opinions of activist justices often judicial system’s power grab. First, he to inform our national identity and to make rational decisions. From the have far-reaching effects and “terrible suggests that nominations to lifetime of the figures who set the course for time of George Washington and up until consequences.” Levin says, in Plessy, an appointments be ended. Sitting judges America’s evolving self-image. His the present day, presidents have made activist court ignored the 14th Amend- could be renominated and subject to a perspective shows that Americans unfortunate choices and Levin lists 15 ment and inserted its own segregationist new conformation process. This way, should be proud of their country’s justices who illustrate that point. Many version of what was just.” He further outstanding jurists would remain on intellectual heritage and high-mind- of these men had mental problems or notes that for 58 years, until Brown v. the bench. Second, clearly defined terms ed values and should reassert those suffered strokes, which left them physi- Board of Education in 1954, “separate but of office would also limit the influence ideals to the rest of the world. More cally and mentally incapacitated. Hugo equal” was the law of the land. of any single Congress. Finally, Levin at www.holtzbrinckpublishers. Black had been a member of the Ku Klux The Founding Fathers wanted a would like Congress to enact a consti- judiciary that would not be influenced com. cj Klan. Appointed in 1914 by President tutional amendment establishing a veto Woodrow Wilson, James McReynolds by any entity, including special-interest over the Supreme Court’s decisions. cj July 2005 CAROLINA JOURNAL The Learning Curve 21 Global warming theory skeptic nevertheless believes earth is warming Meltdown: Dissecting Myths of Global Warming

* Patrick J. Michaels: Meltdown: The of the book — namely, how government of NASA, DOE, the EPA, etc., to fund Predictable Distortion of Global Warming funding combined with the university climate change research that does not by Scientists, Politicians, and the Media; tenure process leads to the distortion accept the dominant paradigm, which, Cato Institute; 2004; 271 pages; $24.95 of science and bad public policy. Had by definition, will perpetuate a need this story been told at the beginning, for additional appropriations from By ROY CORDATO the hyperbolizing of scientific claims, Congress. This process stifles both Contributing Editor exposed throughout the book, would research into and public awareness of RALEIGH make more sense. Chapter 11 provides the alternative paradigm. Government limatologist Patrick Michaels the lens through which the earlier funding reduces the probability that gives us a nontechnical and chapters should be read. I suggest that the dominant paradigm, no matter how readable expose’ of the “myths readers start with this chapter and then inconsistent with real world data, will Cand facts” surrounding global warming. go to the beginning. be overthrown. For skeptics of the mainstream global By combining public choice theory Clearly, Michaels’s book is a must warming hypothesis, i.e., dramatic, with the ideas of Thomas Kuhn regard- read for anyone interested it getting the human-induced warming is occurring ing how paradigms take hold in scien- straight facts about global warming. But and will have cataclysmic effects if not tific research, Michaels explains why this book is just as important for those checked by lifestyle-altering public distortions in climate research should who want to better understand the rela- policies, this book is a great read and have been expected. (Note the subtitle tionship between scientific research and an indispensable reference. of the book.) The dominant paradigm in government funding that lies behind it. In chapter after chapter Michaels the science of climate change includes Professor Michaels makes it clear that dissects the myths surrounding this the idea that “the major cause of recent government funding of science can be hypothesis. He examines the alarmist climate change is the emissions of carbon dangerous to both our liberty and to the claims regarding melting icecaps, ex- dioxide from the combustion of fossil advancement of science itself. treme weather, species extinction, etc., fusil fuel.” that are familiar to anyone who reads Furthermore, scientists and statis- the paradigm is perpetuated. newspapers or watches CNN. This is ticians through “improved quantifica- Layered on top of this is the Roy Cordato is vice president for done after an opening chapter that makes tion…will give policy makers…guid- “federalization of science;” in this case research at the John Locke Foundation and intelligible to the lay reader the basic ance on what might be required to the federal funding of climate change visiting economics faculty at North Carolina science behind climate change. slow, stop, or reverse those changes” research. This is where public choice State University. His email address is rcor- What might surprise some is that (p. 222). Over time a paradigm can be theory enters. It is not in the interest [email protected]. cj Michaels accepts both the seemingly overthrown, but it must be widely rec- undeniable fact that the earth is warming ognized as failing and there needs to be and the proposition that it is in part due a coherent replacement available. to human use of fossil fuels. As Michaels Michaels states the alternative states, “global warming is real, and hu- paradigm as follows: “We know, to a man beings have something to do with very small range of error, the amount it” (p. 9). What separates him from the of future climate change for the foresee- alarmists is his caveat; “we don’t have able future, and it is a modest value to everything to do with it; but we can’t which humans have adapted and will North Carolina’s leading public policy institute is stop it, and we couldn’t even slow it continue to adapt. There is no known, down enough to measure our efforts if feasible policy that can stop or even slow we tried.” So while Michaels is prob- these changes in a fashion that could be Now Hiring ably the best-known global warming scientifically measured.” Unfortunately The John Locke Foundation is currently expanding its research staff of skeptic, he does not deny its existence it is not until this point on Page 222 policy analysts covering state and local issues in North Carolina. or an anthropomorphic explanation for that the reader is informed that “this at least part of the warming. He does book is about the resistance to this new reject the idea that the warming will be paradigm.” JLF policy analysts write research reports, briefing papers, andopinion either dramatic or will have catastrophic Michaels explains how established columns as well as give testimony before legislative committees, attend consequences. Michaels’ position is paradigms, which are rarely challenged meetings of various state and local government boards, provide data and more nuanced than his detractors are by the bulk of a profession, have “lives of research support to innovative leaders in the public and private sectors, willing to acknowledge or many of his their own.” For most academic scientists, supporters realize. receiving tenure requires publishing in and offer analysis to the print and broadcast news media. Unfortunately, the most important accepted peer-reviewed journals. These chapter in the book is at the end. After journals have editors and referees that Applicants for policy analyst must bring either academic or practical dispelling all the myths about rising are steeped in the dominant paradigm. experience in at least one of the following issue areas: sea levels, melting icecaps, and the pos- Therefore publishable research must ask sible loss of penguins and butterflies, only those questions that are generally Michaels gets to the organizing theme accepted within this paradigm. Hence, • State & Local Regulation

JLF is an equal opportunity employer and provides competitive salary, Want to be on our mailing list! benefits, and the chance to advance truth and freedom in North Carolina. Go to JohnLocke.org and sign up for a Key Account. With a Key Account you can recieve your copy of Carolinal Journal in Please send a resume and writing samples to Kory Swanson, Executive the mail each month and can also receive daily and weekly emails Vice President, John Locke Foundation, 200 W. Morgan St., Suite 200, Raleigh, NC 27601, [email protected]. of events and news from Carolinal Journal Online. For more info call us at (919)828-3867 or 1-866-JLF-INFO. July 2005 CAROLINA 22 The Learning Curve JOURNAL Short Takes on Culture Triumph of Liberty a Triumph ‘Schultze’: German to Cajun Volume brings alive numerous people who fought for freedom By R. E. SMITH, JR. pher John Locke recommended Cicero’s • “Schultze Gets the Blues” two-tenths of a mile strip of road Contributing Editor works.” Cicero influenced natural-law Paramount Home Video (Aug. 30) into a speeding-ticket jackpot; the WILMINGTON thinkers such as Locke and others. In Directed by Michael Schorr problem of false identifications early every Monday evening, a fact, Locke is the subject of the third by eyewitnesses to crime; and an small group of Libertarian Party chapter, “Life, Liberty, and Property.” he protagonist of this German- outstanding piece by University of supporters in New Hanover Sounds familiar. made-movie-with-subtitles is Chicago Professor Richard Epstein NCounty meets at a local restaurant in Interesting anecdotes scattered a fat, retired miner who plays on the flawed economics touted by Wilmington. Business, current events, throughout the book give little-known, Tpolkas on his accordian. Bored with two authors who want to intervene and debate about political issues occupy and sometimes exciting, personal infor- life and even his music, he twists in the free market to counteract their time. But study from an important mation about the characters. what they view as greedy drug his radio dial and happens on Cajun book also gets serious attention. Party For example, in the summer of companies. Check it out at www. zydeco, falls in love with the tunes leader John Evans assigns a chapter to 1666, John Locke was studying medi- legalaffairs.org. and their rhythms and learns to play read, and it is discussed the following cine at Oxford when Anthony Ashley — DONNA MARTINEZ them. week. Cooper, the earl of Shaftesbury, visited. He is selected to play polkas ‘Case’ for Bush, Blair Clutching my copy of a big, blue- They met, and Cooper, who suffered at a music festival in New Braun- • The Case for Democracy covered The Triumph of Liberty by Jim from a cyst on his liver, asked Locke fels, Texas, his town’s sister city. By Natan Sharansky Powell (purchased in nearly new condi- to move to his Exeter House mansion When he gets there he decides to Public Affairs Books tion on Amazon.com for $6.30 plus $3.49 and be his physician. Locke successfully skip the festival, rents an old boat shipping), I feel strangely subversive as treated Cooper and that led to a close and embarks on a voyage into the That George W. Bush actu- a receptionist escorts me to a small meet- relationship between the men and some swamps where the Cajuns live. ally read this book has been used ing room upstairs. Sounds and smells harrowing political experiences. Defend- Watching Schultze set off into as both a compliment and an insult from diners, a noise from the bar crowd, ing freedom and revolution, they were the bayous to follow his dream, to its author and the president. and cigarette smoke come from below, a threat to King Charles II. where he is happy but far from Regardless the implications of its while we intently read aloud every word Powell writes, “Locke might well home, is fascinating. The movie is readership, The Case for Democracy about “the lives of freedom’s greatest have seen Oxford University burn books slow, but enjoyable and I still see is clearly in tune with the presi- champions.” considered dangerous . . ..” Locke es- the scenes floating by in memory. dent’s worldview. John Stossel of ABC News calls caped from England to Holland, where But if you want action, it’s not Besides castigating the old re- Powell’s book “A terrific read about he worked on “his philosophical mas- Schultze’s style. alist/idealist split in foreign policy, fascinating people and their ideas . . . .” terpiece, An Essay Concerning Human — GEORGE STEPHENS both of which saw democracy and Economist Walter E. Williams says it’s Understanding.” “vital to the teaching and understanding Locke’s philosophy strongly Meaty ‘Legal Affairs’ human rights as separate from national security concerns, Sharan- of American history and fundamental influenced many in Europe and our • Legal Affairs magazine sky provides some clues into the to our nation’s values and origins.” A own founders. His belief in natural, or Edited by Lincoln Kaplan psyche of those who live in what he Boston University professor writes that God-given, rights to life, liberty, and calls a “fear society.” the book is “a wonderful reference for a property inspired words written into our If you’re intrigued by the To the outsider, these societ- lover of liberty.” It’s all that and more. Declaration of Independence and other impact of laws on everyday life, but ies are split between dissidents and Author Paul Johnson gives credit of our historical documents. don’t have the legal knowledge to true believers, but Sharansky ac- in a short foreword. He believes that Thomas Jefferson thought highly wade through a law journal, check knowledges a third group: “double- “abstract ideas are best promoted by the of Locke’s thinking on liberty. In Europe, out Legal Affairs magazine. It’s writ- thinkers” who are too afraid not to study of the lives of those who embod- Locke and William Penn helped each ten in a refreshingly easy-to-read comply. This group includes many ied them.” And Powell offers just that other out of political scrapes in those style that avoids legalese. Even bet- of the people who told the press in detailed and intimate biographical troubled times. Locke even kept com- ter is the meaty and wide-ranging how much they loved Saddam or glimpses into the lives of dozens of pany with physicist and mathematician content that illustrates the enor- the Taliban, until it was clearly safe “remarkable individuals,” based on bi- Isaac Newton. mous power of laws and regula- ographies, letters, diaries, and speeches. Powell gives a physical profile tions, the service and disservice to to express these opinions. Powell even tracked down unpublished of each person in his book. Locke, for individuals that flows from them, Sharansky’s focus is on the material from international sources for instance, was described by a biographer and the unintended consequences Middle East and the former Soviet contextual reference. His selected bibli- as, what I imagined to be, the look of that inevitably occur. Union, with only passing references ography exceeds 20 pages. Ichabod Crane: “tall and thin,” with a Legal Affairs was originally as- to the strongest cases for democra- sociated with Yale Law School but cy as a foreign policy goal — North Powell, a senior fellow at the “long face, large nose, full lips and soft, is now independent. Some articles Korea and China. Cato Institute, organized 10 topics into melancholy eyes.” reflect a liberal perspective. Still, North Korea’s “stunted themed sections: Natural Rights, Tolera- The Triumph of Liberty is a marvel- the magazine’s thought-provoking generation” and its nuclear black- tion, Peace, Self-Help, Individualism, ous reference for libertarians and history nature and the knowledge gained mail of northeast Asia attest to Economic Liberty, The Spirit of Liberty, buffs. Many names of people whose bi- by reading it outweigh the “nanny- the human and security costs of Dangers to Liberty, Protecting Liberty ographies appear will be familiar; some state” moments conservatives will despotism, while more parallels and Courage for Liberty. are obviously associated with political experience. When I first picked exist between China’s belligerent Within each section, chapters on liberty, and some, surprisingly, not usu- up this magazine, it fell open to a rise and Russia’s in the 1960s than the lives of five to nine people, mostly ally associated in that context: laugh-out-loud funny account from to Japan’s and Germany’s post-war “commoners,” but some “aristocrats,” Samuel Adams, Ludwig van a writer who had tried to comply miracles. were selected chronologically to rep- Beethoven, Frederick Douglas, Benjamin with a Louisiana law that forces The foreign policy establish- resent the chosen theme. For example, Franklin, Milton Friedman, William S. wanna-be florists to pass a ridicu- ment’s complaints on the U.S. ap- Section 1, Natural Rights, starts with a Gilbert (Gilbert & Sullivan), Francisco lous licensing test to legally sell and proach to China and North Korea chapter titled “A Higher Law,” about Goya, F. A. Hayek, Victor Hugo, Louis arrange flowers for a living. ring as hollow as those on its ap- that eloquent promoter of natural law, L. Amour, Rose Wilder Lane, James It was hilarious, and I was proach to Iraq and Israel. The Case Marcus Tullius Cicero, assassinated 43 Madison, John Stuart Mill, Maria Mon- hooked. Each succeeding issue has for Democracy affirms that George years before Christ was born, and ends tessori, William Penn, Ronald Reagan, lived up to the first. The Janu- W. Bush and Tony Blair will join with “Creators and Producers” about Adam Smith, Margaret Thatcher, Mark ary/February edition featured a the Anglo-American pantheon with the life of anticollectivist Ayn Rand, who Twain, Booker T. Washington, and oth- smorgasbord of compelling topics: Roosevelt, Churchill, Reagan, and died of heart failure in 1982. ers come alive in Jim Powell’s stories. identity theft targeted at NFL play- Thatcher. Powell reveals interesting con- They’re about mostly ordinary people ers; a tiny Ohio town that turned a — JOE COLETTI nections between his champions. In the with extraordinary drive to pursue ideas Higher Law chapter he writes, “Philoso- critical to our freedoms. cj July 2005 CAROLINA JOURNAL The Learning Curve 23 The Mind and The Market : One-Stop Shopping on Capitalism

• Jerry Z. Muller, The Mind and the would be well worth a read. tinism. As they became more influential Market: Capitalism in Western Thought, Happily, there is more. Muller’s in English society, Arnold “feared that New York: Anchor Books, 2002, 487 discussion of Adam Smith is welcome the commercial middle classes would pages. because it includes not just The Wealth ‘deteriorate’ the country by ‘their low of Nations but also his Theory of Moral ideals and want of culture,’” Muller By JOHN HOOD Sentiments. Given that Smith was a moral writes. Arnold was fond of quoting RALEIGH philosopher, not really an “economist” Aristotle’s observation that “the dif- se it or lose it. That’s the preva- in the modern sense of the term, I think ficulty of democracy is how to find and lent rule of thumb in life, un- his insights are far richer when read keep high ideals.” fortunately, more so than the in this context. Muller also explores A main theme running throughout Uold adage about never forgetting how Smith’s views about the proper scope the book is that, whatever their differ- to ride a bicycle. Yes, you can peddle if of government in a more serious way ences in outlook or philosophical prin- you haven’t been on a bike since banana than many modern-day conservatives ciples, competent critics of capitalism seats and baseball cards in the spokes. and libertarians do (it’s fine to disagree from both the Left and the Right granted But you’ll be lucky to make it through with Smith, of course, but at least get that it was the most productive economic the neighborhood unless you’ve kept in his views right, first). system in history. Unfortunately, during shape. We don’t ride bikes to demon- Joseph Schumpeter and Friedrich the 20th century writers such as John strate our ability to balance ourselves Hayek, of the Austrian school of eco- Maynard Keynes convinced generations on two wheels, an ability that may well nomics, get their due in The Mind and of politicians that they could actually survive a lengthy period of disuse. We the Market, which is about time. Karl make their countries more prosperous ride bikes to get places or enjoy our- Marx gets fair and respectful treatment, by regulating markets and taxing pro- selves, and there’s no question that these Muller sets the stage with a brief which still leads inevitably to giggles ductive people more. The results were abilities grow with practice. but satisfying excursion into ancient by the end of the chapter (Marx was a economically disastrous. It would have There’s a similar dynamic at work and medieval thought. Two critiques talented, brilliant nincompoop, you see, been far better for all of us if European when it comes to stretching our intel- of proto-capitalism emerged during even if read fairly). I particularly enjoyed and American malcontents had limited lectual muscles. For all the talk about the period: a religious skepticism about Muller’s account of how writer Matthew themselves, as Arnold did, to fretting the importance of reading Great Books, profit and markets, much of it based Arnold attempted to square the reality about whether mass markets can pro- experiencing great art, and thinking on misreadings and mistranslations of of a market-induced economic boom duce high-quality novels. great thoughts when we are young, it scripture (that’s my point, not Muller’s); in 19th-century England with Arnold’s The answer is yes, by the way. is an inescapable fact that much of the and a tradition of “civic republicanism,” concern about preserving social and knowledge we gain in high school or encompassing ancient philosophers aesthetic standards of excellence against Hood is president of the John Locke college dissipates unless we have occa- and medieval propagandists, who what he perceived to be populist philis- Foundation. sion to use it. viewed economic matters as necessar- Sorry to be such a downer — I ily subservient to political and cultural actually have good news on this front. imperatives. If you ever feel the need for a refresher The book then embarks on a series course on some of the great philosophers of discussions of the personal biogra- and economists of the past two centuries, phies and writings of a dazzling array Jerry Muller’s interesting The Mind and of thinkers. Some are famous among the Market: Capitalism in Western Thought laymen — Voltaire, Smith, Burke, Hegel, might be just the intellectual bike ride Marx, Keynes, Marcuse, and Hayek — and some are lesser-known but histori- for you. Muller’s goal is rather differ- Since 1991, Carolina Journal has provided thousands of readers each month cally significant, such as Justus Moser, ent, and also realized, at least partially. with in-depth reporting, informed analysis, and incisive commentary about the Verner Sombart, and Georg Lukacs. If He wants the reader to appreciate the most pressing state and local issues in North Carolina. Now Carolina Journal The Mind and the Market offered nothing varying takes on free-market capitalism has taken its trademark blend of news, analysis, and commentary to the air- among the major philosophical schools else than a short course on each of these waves with Carolina Journal Radio. and thinkers within European culture. gentlemen and their contributions, it A weekly, one-hour newsmagazine, Carolina Journal Radio is hosted by John Hood and features a diverse mix of guests and topics. The program is currently broadcast on 18 commercial stations – from the mountains to the coast. The Carolina Journal Radio Network includes these fine affiliates:

Albemarle/Concord WSPC AM 1010 Saturdays 11am Asheville WZNN AM 1350 Saturdays 1pm Boone/Lenoir/Hickory WXIT AM 1200 Sundays 12pm Burlington WBAG AM 1150 Saturdays 9 am Chapel Hill WCHL AM 1360 Saturdays 5pm Elizabeth City WGAI AM 560 Saturdays 6am Fayetteville WFNC AM 640 Saturdays 1pm Gastonia/Charlotte WZRH AM 960 Saturdays 1pm Goldsboro WGBR AM 1150 Saturdays 12pm Greenville/Washington WDLX AM 930 Saturdays 10am Hendersonville WHKP AM 1450 Sundays 5pm Jacksonville WJNC AM 1240 Sundays 7pm Lumberton WFNC FM 102.3 Saturdays 1pm Newport/New Bern WTKF FM 107.3 Sundays 7pm Salisbury WSTP AM 1490 Saturdays 11am Southern Pines WEEB AM 990 Wed. 8am Whiteville WTXY AM 1540 Tuesdays 10am Wilmington WAAV AM 980 Saturdays 1pm

For more information, visit www.CarolinaJournal.com/CJRadio July 2005 CAROLINA 24 Opinion JOURNAL

Commentary Media No Longer Gatekeepers

hat was it that made Il- NKVD. He may still be so remem- linois Democratic Senator bered, for even with the tears and Dick Durbin go to the the choking sobs he never actually Wwell of the U.S. Senate one recent took back what he said. evening and beg for forgiveness? The Durbin affair is yet Fear was in his eyes along with another example of how the times tears as he professed to love and they are a-changin’ for the main- cherish the very American service- stream media. The MSM are no men that he slandered longer gatekeepers or on June 14 at that very agenda setters. Their same podium. attempts to blackout It certainly a story that doesn’t wasn’t because most fit their template or of the Republican rise to their level of leadership had de- interest no longer manded he apologize work. Increasingly, for likening the Amer- the American public ican servicemen and is learning that it can women at Guantana- go around the ossi- mo Bay to guards in fied hulk of the MSM Editorials Hitler’s death camps, to get to lively, often Stalin’s gulags and better informed, news Pol Pot’s killing fields. and commentary. ‘Incentives’ Are Simply Bribes Durbin and the rest of While the the Senate Democratic mainstream media Developments in judicial arena suggest remedy may come soon leadership simply scoffed at the saw nothing of note in Durbin’s GOP concerns. remarks, “normal” people were ap- nstead of encouraging “economic according to three informed sources. It wasn’t because his fellow palled at what he said, understand- development,” recent deals in North But neither Watson nor his lawyer sees Democratic senators urged him to ing that he had undercut the war Carolina reveal how the culture of anything wrong with that. do a mea culpa. They were shame- effort, hurt morale in the military Icorporate entitlement could foster cor- State government’s eagerness fully silent on the issue. And it and given the enemy propaganda ruption in North Carolina, published to throw away revenue has instilled a wasn’t, as some commentators are fodder. reports by Carolina Journal show. widespread belief among corporations saying, because Chicago Mayor As it became evident that A notoriously opportunistic orga- that they deserve taxpayer money. Richard M. Daley criticized him on Durbin’s comments were perco- nization (euphemistically speaking), the They demand the revenue before they Tuesday, becoming the first Demo- lating wildly in the hinterlands Northeast Partnership, is busy spinning say where they will relocate, and play crat to do so. despite the media blackout, the deals with taxpayer money and avoiding one state off on another. The culture of And it most certainly wasn’t media employed the same tactic public scrutiny. Heads-up investigative entitlement and back-door dealing, com- because the American mainstream it used with the Swift vets. They work by Carolina Journal’s Paul Chesser mon sense should tell anyone, breeds media held his feet to the fire, be- ignored the story until they could uncovered the Northeast Partnership’s corruption. cause they did nothing. The same run stories defending Durbin and latest trick: vacuuming a $307,575 state Enter the Northeast Partnership can’t be said of the Arabic cable attacking his critics, including grant for fingerprint-security company and similar operations that thrive in network Al Jazeera. Its airwaves quotes, of course, from those blam- Privaris, Inc. darkness. North Carolina can expect an and website featured Durbin’s ing the vast right-wing conspiracy The Tobacco Trust Fund Commis- epidemic of similar shenanigans unless comments prominently, giving real for the flap. sion funneled the money to Privaris the courts step in to discourage corporate meaning to the words “aid and The arrogant brush-off through the Martin County Economic bribery. The legislative and executive comfort.” Durbin’s Senate staffers were giv- Development Corporation. The grant branches of government so far have No major television network ing callers that week (my wife was ostensibly was meant to stoke economic proven powerless to do so. Worse, they news show reported his initial re- one of them, so I know how abomi- development in which Privaris would are eager participants in the problem. marks. No national newspaper saw nably many callers were treated) start a business in Williamston and Two developments in the judicial them as newsworthy. So, where did was the initial response. But as the employ 10 to 15 people. and legislative arenas, though, appear this outrage come from, given that calls multiplied, as they must have Trouble is, the company never to hold some hope of arresting the on- the media ignored his remarks? done to make Durbin shake and hired more than three employees for the slaught of economic scams. One is a law- How did millions of Americans beg on the floor on Tuesday, June project. Should any conditions of the deal suit filed in Wake County Superior Court come to know Durbin as “Turban 21, it finally dawned on Durbin be breached, the county’s development by Carolina Journal and the North Caro- Durbin” if the mainstream media that he’d stepped in it for real. corporation was supposed to repay to lina Press Association that is designed looked the other way? The answer Small “d” democrats should the tobacco commission “the full amount to force the Commerce Department to is in simple: the Internet. be happy with this outcome. An of sums awarded” and any interest ac- comply with current open-government Durbin was quaking and arrogant senator, who had every crued on the money. Like the new jobs, law to divulge details of deals as soon begging in the Senate on June 21 expectation that his allies in the that never happened, either. as they are concluded. because of the tsunami of outrage media could protect him from Another stipulation attached to Another is a pending lawsuit by from everyday people. Many of his own words, heard the genu- the grant required the development the N.C. Institute for Constitutional Law those, presumably, were his con- ine voice of the people via blogs, corporation to monitor Privaris’s opera- that would challenge the basic legality stituents. No senator does what internet news sites and Fox News he did without great pressure. He Channel. The mainstream media tions and provide a detailed report on of economic incentives. The basic health must have seen his political career are fast becoming a vestigial organ whether the company fulfilled its part of North Carolina’s political system de- teetering on the abyss. He was in of the body politic. of the agreement. Guess what? That pends upon the outcome of these two danger of being remembered as the never happened, either. Here’s another challenges. There are also prospects for Democrat who thought American Jon Ham is vice president of the kicker to the Privaris predicament: It improving transparency of the process servicemen and women were mon- John Locke Foundation and publisher just so happens that the Northeast through legislation, Senate Bill 393, sters equal to Hitler’s SS or Stalin’s of Carolina Journal. Partnership’s executive director, Rick which is currently before the House Watson, is an investor of the company, Commerce Committee. cj July 2005 CAROLINA JOURNAL Opinion 25 Kelo Decision a Disaster Commentary By its standards, it’s hard to imagine any taking being unlawful Another Privatization Idea n the same day that the North definition of “public use” adopted by et’s sell Charlotte Douglas, Even Jesse Jackson seems to Carolina Institute for Constitu- lower levels of government is meaning- Piedmont Triad, and Ra- agree. That’s Rep. Jackson Jr., who tional Law filed its long-awaited ful and reasonable. leigh-Durham International represents a congressional district Olawsuit challenging the constitutionality Of course it does. The 14th Amend- Lairports to private enterprise. in Illinois. He’s on board with a of the state and local incentives given ment prohibits states from depriving Local governments would receive proposal, endorsed by Democratic to Dell Computers last year, a U.S. Su- their citizens of their rights. With prop- a huge cash windfall, which they Gov. Rod Blagojevich, to involve preme Court ruling in a related case erty takings, there is actually a provi- can use for high-priority construc- the private sector to build and demonstrated the limits – and risks – of sion of the federal constitution — the tion projects such as schools or operate a third airport for the Chi- promoting economic freedom through 5th Amendment — involved. By New roads, while passengers would cago area. The proposed Abraham legal action. London’s standard, it is hard to imagine receive better, cheaper service. Lincoln National Airport will, In a 5-4 decision, the court ruled any seizure of private land that could Sound radical enough for Jackson said recently, “combine that governments can use eminent ever be challenged as violating the fed- you? It isn’t really. We the best of both worlds domain — the power to take private eral constitution. are just lagging be- — private investment property, albeit with compensation, The Kelo decision is, in short, a hind (as usual) when and ingenuity with even if the owner doesn’t want to sell disaster. The juxtaposition is interesting, it comes to adopting public oversight and it – to assemble parcels for economic too, because here in North Carolina we innovative ideas in gov- governance.” development. The case, Kelo vs. City of had something similar happen on the ernance. In Japan, the So to return to New London, was widely expected by issue of economic incentives. Back in the prime minister has just North Carolina for a property-rights activists to establish mid-1990s, Bill Maready filed a lawsuit announced plans to sell moment, why not of- firmly the distinction between a public arguing in part that economic incentives Tokyo’s international fer ownership stakes use of land, such as the construction of violated the state constitution’s “public airport and use the in Douglas, PTI, and a highway, and a private use such as a purpose” provision, which requires that proceeds to reduce the RDU to private com- new plant or shopping center. the taxing power of government be used government’s debt load. panies? I’m not against The expectation was wrong, terri- only for a public purpose. The NC Su- In Belgium, the govern- considering the idea bly wrong. All four of the court’s “liber- preme Court eventually ruled that, once ment last year accepted for smaller airports, als”— and this is a prime case where the again, all a government need show is a $955 million bid for a as well, such as the term hardly seems appropriate — agreed that it expects to create jobs in order to 70 percent ownership installations serving with the city of New London that it had establish a public purpose. stake in Brussels International Asheville, Fayetteville, and Wilm- the power to deprive people of their Bob Orr wrote the dissent in Airport from Macquarie Airports, ington, but we might as well start property and convey it to a business as Maready. Now, as head of the Institute a company that already owns or with the airports most likely to long as the city expected to create jobs for Constitutional Law, he is challeng- partially owns airports in Rome, attract national and international in the deal. Job creation is a public use, ing the Dell incentives. His arguments Birmingham, Bristol, and Sydney. bidders. One possible argument you see. Anthony Kennedy, pretending are different, but the underlying issue is Other countries that are against privatization is that to champion federalism, signed onto similar: is it constitutional to use govern- getting into the act of selling all private firms would attempt to this nonsense, apparently buying the ment power to confer what is obviously or part owner- reap profits by argument that the federal judiciary has a financial gain on a private party at the ship of govern- jacking up fees no jurisdiction to question whether the expense of others? cj ment-owned and charges on airports include Why not offer owner- unsuspecting Greece, France, ship stakes in Doug- passengers. The the Netherlands, good news is Charlotte Going Against Grain India, the Czech las, PTI, and RDU to that we already Republic, Rus- have years of Trend these days is for less tax funding in stadium construction sia, and Ireland. private companies? experience with Anyone who airport privati- harlotte has (in)famously begun to the idea. A subsequent 50-50 arrange- has flown into zations in other work on a brand-new arena for ment also fell through. Now, George London’s Gat- places, and they its Bobcats NBA franchise, even Steinbrenner has announced plans for wick Airport can attest to the fact do not appear to result in higher Cthough voters said “no” to the idea in the team to finance a new $800 million that private airports are well-run, prices — indeed, they often end a previous referendum. The reasoning park, with the government role limited secure institutions that often have up lower prices, improve service, behind the Charlotte arena sounds a lot to infrastructure, parking, and adjacent better services, facilities, and retail or both. like that offered by sports boosters in facilities (still too much at $220 million, offerings. Another potential criticism many other cities where new football, but still a small fraction of the original Robert Poole, a transpor- would be that private ownership basketball, or baseball facilities are go- price tag). tation analyst at the Reason might reduce the ability of local ing up. In a sense, Charlotte can be seen as Foundation, explains that airport governments to engage in regional So does that mean North Caroli- a leader here. Way back in the late 1980s, privatization — be in the form of transportation planning. I’m na’s largest municipality has, in fact, the community built the stadium for the outright sale, long-term lease, or tempted to say “good,” but per- achieved that fabled dream of being a Carolina Panthers with mostly private management contract — is popu- haps a more constructive response “world-class city”? dollars in an arrangement resembling lar around the world not because would be to point out that a sale Nope. There appears to be a differ- what the Yankees are about to do in New of its ideological implications but or lease contract can be structured ence between what the Queen City did York. Unfortunately, since then fiscal because it brings practical ben- in ways that retain some planning and how many of the other arena deals discipline has deteriorated in Charlotte, efits. They include better capital role or oversight by governments, are coming together. The trend is for even as it has apparently been making a investment, cost savings through as other jurisdictions have already the teams themselves to shoulder more partial comeback in other places around more efficient operations, sale demonstrated. of the cost of the new facilities, rather the country. or lease revenue to local govern- Let’s sell the airports and than foisting it on the taxpayers of the The new Bobcats arena in uptown ments, and a more passenger- build schools with the proceeds. local community or state. The New York Charlotte will reportedly cost $265 mil- friendly approach to service. In Do it for the children. Yankees, for example, first sought to lion. Taxpayers are slated to cover $170 short, he says, a “commercialized have a new ballpark paid for entirely by million of that, while Bobcats owner Rob- approach” to new and existing the taxpayers — and then-Mayor Rudy ert Johnson will chip in just $23 million. airports is “well on the way to Hood is president of the John Giuliani offered to do just that back in The team is supposed to absorb any cost becoming the new paradigm.” Locke Foundation. 1996, only to face significant opposition overruns. Sure it will. cj July 2005 CAROLINA 26 Opinion JOURNAL

Editorial Briefs

Health Savings Accounts A year ago, health savings account owners were about as common as sasquatch sightings. Today, thanks to federal legislation signed in late 2003, the accounts are gaining popularity as a sensible option, says Investor’s Business Daily. America’s Health Insurance Plans, an asso- ciation of companies that provide health insur- ance, has found that, as of March 2005, 1.03 million Americans were covered by HSAs. Of course, this represents less than 1 percent of those covered by private health insurance; but moving up from nothing to more than 1 million in a year—or from 438,000 in September to more than 1 million in six months—is a remarkable rise. HSAs are making their biggest gains in the individual market, where there are 556,000 HSA owners; that’s about 5 percent of that market, and growing fast. There is also something special about HSAs: 37 percent of the new individual HSA owners were previously uninsured. HSAs won’t solve the problem of the unin- sured. But it’s impossible to think of any other public policy that could move so many out of the ranks of the uninsured so fast without adding What Gets Inflation Started? Money! substantially to government spending. eadlines have announced inflation is back, stable, prices will rise by the difference between As more Americans opt for HSAs, the ac- and this certainly appears to be accurate. In spending growth (8 percent) and production growth counts’ ability to keep costs down will become 2004, retail prices rose 3.3 percent, up from (5 percent), which is 3 percent. So in our example, more apparent. Because each HSA—$2,250 for H2.3 percent in 2003 and only 1.6 percent in 2002. In the inflation rate rises from 0 percent to 3 percent. an individual, $4,500 for a family—includes a the first three months of 2005, the retail inflation rate A long time ago, an economist summarized it catastrophic insurance plan, companies will pay is running at an annual rate of 4.3 percent. this way: Inflation results from “too much money out less in premiums, says IBD. The jump in inflation is not caused by rising chasing too few goods.” Sustained higher inflation oil and gas prices alone. Taking out food and energy rates can’t be maintained unless they are supported Suicide bombings prices, retail inflation still climbed during the past by excessive money growth. two years. Where does this faster money growth come The presumed connection between suicide Of course, any business person or store man- from? It comes from the country’s super-bank, the terrorism and Islamic fundamentalism is mislead- ager will point to the source of inflation Federal Reserve. The Federal Reserve ing, University of Chicago professor Robert A. — rising costs of doing business. The res- effectively controls how many dollars are Pape wrote in the New York Times. taurant owner will cite higher costs for printed and released into the economy. Over the past two years, Pape compiled a food, labor, and electricity. The builder So why are we having higher infla- database of every suicide bombing and attack will argue he has to pay more for lumber, tion now? It’s actually part of a pattern. around the globe from 1980 through 2003. A nails, and drywall. And the painter will Three and four years ago the economy total of 315 episodes occurred, excluding attacks say increased costs for paint, brushes, was wobbly with a recession and very authorized by a national government. The lead and white shirts force her to charge more slow job growth. instigator of suicide attacks, committing 76 of for painting services. A standard tool the Federal Reserve the 315 incidents, was not an Islamic group, but These experiences make it seem as uses to perk up the economy is to put rather the Tamil Tigers in Sri Lanka, a Marxist- if there are multiple causes of inflation, more money into consumers’ hands. In Leninist group. and from the point of view of individual fact, during much of 2001 and 2002, the Pape explains that what nearly all suicide companies, there are. But this still leaves Fed increased the supply of money by a terrorist attacks actually have in common is a a larger question unanswered—what rapid 10 percent rate. specific secular and strategic goal: to compel gets the whole process started? Some say the Fed’s tactic worked modern democracies to withdraw military forces Economists have a simple answer because the economy is doing much from territory the terrorists consider their home- — money! The economic workings of higher infla- better now. But on the downside, the Fed’s ac- land. Religion, often used as a tool by terrorist tion really can’t get started without being prompted tions have meant a lot of dollars are chasing after organizations, aids in recruiting and in seeking by too much money being available for people to a smaller amount of products and services, and so, aid from abroad, but is rarely the root cause. spend. bingo, we have higher inflation. (Also, as an aside, Pape’s analysis shows that: Here’s what I mean. Say the total quantity the Fed’s policies have contributed to the decline in • Nearly all suicide terrorist attacks—310 of of everything we buy—cars, gas, dental services, the value of the dollar against foreign currencies.) the 315—took place as part of organized political clothes, etc.—is increasing by 5 percent each year. Fortunately, the Fed is now off its money or military campaigns. Now say the money we have available to purchase binge, with the money supply now rising at about • Democracies are uniquely vulnerable to these things is also increasing by 5 percent each 5 percent a year. This means we’ll probably see the suicide terrorists; America, France, India, Israel, year. In this case, there is a balance between the inflation rate moderate in a year or too. Russia, Sri Lanka and Turkey have been the increase in production and the increase in spending, But in the meantime, we’re paying for the targets of almost every suicide attack of the past and as a result, prices don’t change, which is the monetary boost of a few years ago with higher pric- two decades. same as saying there is no inflation. es today. This has led some economists to wonder • Suicide terrorist campaigns are directed But now what if the available amount of mon- whether the Fed ought to be replaced by a computer toward a strategic objective; the sponsors of every ey is increasing by 8 percent each year? This means designed to feed the economy a steady supply of campaign—18 organizations—in all seek to estab- people are trying to increase their purchases of new money! lish or maintain political self-determination. products and services by 8 percent, but the produc- True to form, Pape said, there had never tion of these products and services is rising by only been a documented suicide attack in Iraq until 5 percent. So people are trying to buy more than Michael L. Walden is a William Neal Reynolds distinguished professor and extension economist at North after the American invasion in 2003. cj is available (economists say demand is increasing faster than supply), and so something has to give. Carolina State University and an adjunct scholar with What gives is prices. Rather than remaining the John Locke Foundation. July 2005 CAROLINA JOURNAL Opinion 27 ‘Goodwill Lobbying’ Loophole Can Harm N.C.’s Reputation

By JIM HOLSHOUSER happening, we can judge for ourselves whether our & BILL FRIDAY By having these “goodwill” expens- officials are doing a good job of representing us. RALEIGH Lobbying rules must necessarily be written in or generations, North Carolina has had a es reported and made public, we a way that doesn’t cross the line and infringe on the reputation for clean government. While there can take another step toward open freedom of speech guaranteed by the constitution. A have been some notable and well-publicized reporting requirement for goodwill-lobbying expen- Fexceptions, our reputation remains high. government. ditures would stay far away from that line. Times have changed, however, and the gov- A proposal currently before the General As- ernmental process has gotten much more complex. sembly will remove the goodwill exception to our There are now many more lobbyists involved with vacation trip by a lobbyist. lobbying laws. By having these “goodwill” expenses the legislative and the executive branches of our This naturally builds goodwill between those reported and made public, we can take another government, and our laws spelling out the lobby- who are spending the money and those who are the step toward open government. As is often the case, ing rules have not kept up with the changing times. recipients – hence the term “goodwill.” As long as the bill’s passage may well depend on whether our South Carolina, Georgia, Tennessee, and Virginia no legislation is discussed during the trip or event, legislators hear from their folks back home that we (all of our next-door neighbors) and even most of this is a current exception to the rules. It could allow think it is a good idea. the states that join them now have more up-to-date legislators or others in government to receive a trip There is an old saying that goes something like laws which cover lobbying activities than we do. to the Masters Golf Tournament, the NCAA finals, a this: “All that is necessary for evil to triumph is for While the great majority of lobbyists follow bowl game, etc. without any public accounting. good people to sit around and do nothing.” Thank the rules, our present law has some loopholes which In the final analysis, of course, the ultimate you for contacting your representatives or senators most of us would say need to be closed. result depends on the integrity of individuals, and in support of this proposal. One loophole involves what is called “good- scoundrels will never be completely deterred by will lobbying.” This involves situations in which rules and regulations. At the same time, we want Holshouser is a former governor of North Carolina. legislators or others in government are taken to to do as much as we can to ensure that people have Friday is president emeritus of the University of North dinner, a basketball game, a golf tournament, or confidence in their government. If we know what is Carolina system. Courts Have Taken a Step Backwards in Property Rights Case

elo v. New London, a recently suggests that a portion of the “Public decided U.S. Supreme Court Use Clause,” “authorizes the taking of case, affirmed that the seizure property only if the public has a right Kof private property by the government to employ it, not if the public realizes in the name of economic development any conceivable benefit from the tak- is consistent with the “Public Use ing.” Clause” of the Fifth Amendment. The distinction that Thomas The “Public Use draws is a crucial one. Clause” states that “Using” land implies that “No person shall . . . be one employs the land deprived of life, liberty, directly. “Public purpose” or property without carries a broader mean- due process, of law; nor ing, unintended by the shall private property Constitution. “Purpose” be taken for public use, means to employ towards without just compensa- an end, regardless of tion.” By acting under whether you are directly this Court-sanctioned utilizing the land. justification, we are By adopting the destroying the founda- broader definition of the tion, not only on which “Public Use Clause,” the Constitution was which substitutes “public founded, but on which purpose” for “public use”, our success as a nation is built. all private property can legitimately It was the opinion of the Court be seized for the welfare and benefit that the city of New London, Conn., of society, as long as there is a poten- Magna Carta, like the Constitution, growth of capital will not proceed, had the right to take, with just com- tial for public benefit (i.e., it fulfills a guaranteed the protection of private and wealth will not accrue. pensation, the property of local hom- conceivable public purpose). property from arbitrary seizure, some- Thanks to the Kelo decision, eowners who refused to give up their Without the guarantee of the law thing that had been common practice private property will not be secured. land to an economic development that private property will remain in throughout feudal England. With the The government, with almost carte plan outlined by a private develop- the hands of the owner, the Constitu- guarantee of the protection of private blanche control over the future of pri- ment corporation commissioned by tion and our nation is bankrupt. To see property, property owners were free to vate property, now has the power to the city. The opinion of the Court, why, we can look to the thoughts of invest in their land and, more impor- destroy the very economic engine that written by Justice Stevens, mistakenly the political philosopher John Locke. tantly, begin to accrue capital. Capital brought us success in the world. confuses the term “public use” with Locke, whose ideas influenced the cre- is accumulated wealth that is used to With many of the world’s de- the broader term, “public purpose.” ation of the Constitution, stated that create more wealth. veloping nations finally realizing the This, in effect, changes the scope and the chief purpose of a government A 2002 finalist for the Nobel importance of property rights, Ameri- meaning of the “Public Use Clause.” was to preserve property. By consent- Prize and a leading thinker in the ca has taken a step backwards. Private Justice Thomas, in a dissenting ing to the rule of law, property owners anti-poverty movement, Hernando De property rights, now a pawn to the opinion, clarified how the Court had vowed to protect each other from the Soto, linked a legitimate and secure revived specter of socialism, may soon shifted the meaning of “public use” vicissitudes of the world. system of private property with the disappear, taking with them all the to “public purpose”, and stressed the In England, the notion of prop- creation of capital. If private prop- successes that democracy has won. move’s effect on the nation. According erty rights, stressed by Locke in the erty is not secured — that is if people to Thomas, the context in which “pub- 17th century, were legitimized centu- do not feel that they are guaranteed Paul Messino is a contributing edi- lic use” appears in the Constitution ries earlier in the Magna Carta. The rightful ownership of their land — the tor of Carolina Journal. July 2005 C a r o l i n a 28 Parting Shot Journal Future Citizens Find Memos From the ‘Phantom of the Capitol’ (A parody of Andrew Lloyd Webber’s ing to this state’s overwhelming debt. not followed my instructions. I shall or not so secretly.” Musical “The Phantom of the Opera”) My power over you grows stronger give you one last chance. The Senate Item No. 6: Memo to our loath- yet. And though you may turn away and House bills have been returned some leader. By KAREN WELSH from me and lag behind, the Phantom to you, and I am anxious to see these From: The mind of one Contributing editor of the Capitol is here, inside your spending bills progress.” who’s turned. Raleigh 2050 A.D. mind. Those who have seen my true Item No. 4: Memo to all conser- “I have come here, hardly know- uctioneer: Welcome to the face, draw back in fear. Don’t worry, I vatives. ing the reason why. In my mind, I’ve once grand rotunda of the am only the mask you wear, it’s really From: All the scared-silly already imagined our spending habits now defunct me they hear. Spend my liberals. joining, entwining, and now I am here Astate Capitol in North angels, spend for me.” “Like yellow parchment is his with you: no second thoughts. I’ve Carolina. Some of you Item No. 2: Memo skin, a great black hole served as the decided, decided.” may recall the strange to the Phantom Gover- nose that never grew. You must be Auctioneer: Sadly, this lack of affair concerning the nor. always on your guard, or he will catch backbone led to the demise of this Phantom of the Capitol. From: The Conser- you with his magical political lasso! great institution. There is one final A mystery never fully vatives. “Those who speak of what they letter of the Phantom of the Capitol. It explained until now. A “Masquerade! know, find too late, that prudent si- is rumored he is still standing some- box found in the rubble Take your fill, let the lence is wise. Conservatives hold your where in the shadows, lurking around of the late Gov. Michael spectacle astound you! tongue, because he will burn you with in the underbelly of this once great Easley’s office was Masquerade! You think the heat of his eyes.” institution. recently uncovered. It you can outspend any Item No. 5: Memo to all those Item No. 7: Memo to all those contains a few inner- friend who ever knew who frustrate me! who survived the political fallout. government memos and you! Masquerade! Leer- From: The one who hides out From: A ghost of a man. a multitude of spending ing satyrs, peering eyes. in the open. “We never said our spending bills that were pending at the time this Masquerade! Run and hide—but the “Confound you! You little prying habits were evergreen, or as unchang- once-illustrious state went bankrupt. debt will still pursue you!” Pandoras! You little demons, is this ing as the sea — but if you can still Perhaps by looking in the box we can Item No. 3: Memo to all those what you wanted to see? Curse you! remember the debt, stop and think of frighten away the ghosts of the past who defy me. You little lying Delilahs! You little me. Think of me, think of me waking, with a little illumination. From: The desk of Govern- vipers, now you cannot ever be free! silent and resigned. Imagine me, try- Item No. 1: Memo to all Senators ment Ghost. Stranger than you dreamt it, can you ing hard to put our fiscal failures from and Legislators . “Ladies and Gentlemen, I have even dare to look or bear to think of my mind. Recall those days, think of From: Gov. Mike Easley. now sent you several notes of the me: this loathsome gargoyle, who the things we’ll never do—for there “Welcome to my haunts. I bid most amiable nature, detailing how burns in political hell, but secretly will never be a day, when I won’t you spend once again with me, add- my government is to be run. You have yearns for spending heaven, secretly, think of all I spent with you.” cj

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