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Carolina Journal Review of DOT Spending Raises Two Important Ques- by DON CARRINGTON Tions

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Carolina Journal Review of DOT Spending Raises Two Important Ques- by DON CARRINGTON Tions • Showdown Builds • Catholic Schools On Ten Commandments Set the Pace in N.C. N.C. Public Defenders C A R O L I N A “The Aviator” Statewide Edition A Monthly Journal of News, Analysis, and Opinion from April 2005 • Vol. 14, No. 4 JOURNAL the John Locke Foundation www.CarolinaJournal.com www.JohnLocke.org DOT Secretary Provides Slush Fund for Legislators each to the speaker of the House and Traffic safety, separation president pro tem of the Senate to spend on projects they chose. Rep. Jim Black, of powers are key issues D-Mecklenburg, and Sen. Marc Bas- for governor to consider night, D-Dare, hold those offices. A Carolina Journal review of DOT spending raises two important ques- By DON CARRINGTON tions. Why would Tippett fund non- Executive Editor safety projects before documented safety RALEIGH related projects? Perhaps more impor- .C. Department of Transporta- tant, why would Gov. Mike Easley al- tion Secretary Lyndo Tippett low Tippett to maintain $5 million N has diverted millions of dol- “checking accounts” for Black and lars that could have been used for docu- Basnight? mented highway safety needs to projects Despite repeated requests by CJ, selected by legislative leaders. Tippett and Easley refused to answer According to state law, the DOT questions or provide documents autho- secretary is to approve all projects fi- rizing the discretionary funds controlled nanced from a $15 million annual “con- by Black and Basnight. tingency fund,” but DOT records and Photo courtesy of NCDOT interviews show that for the past few DOT Secretary Lyndo Tippett (above) diverted discretionary funds from safety projects years Tippett gave $5 million a year Continued as “Safety,” Page 2 Experts Warn There May Be Bubbles in U.S. Housing Market economy. mostly located in eight states. “The bad will go up than on the intrinsic value of Cities that practice At one extreme is John Talbott, an news is that those areas contain roughly goods. ‘growth management’ investment banker whose 2004 book, half the housing wealth of the country.” If speculators think that prices will The Coming Crash in the Housing Market, The regions that are most frequently continue to rise in the future, they will risk an economic collapse predicts that nationwide prices will fall mentioned as having overpriced hous- be willing to pay more for something by 20 percent or more. At the other ing markets — such as San Jose and today than it is worth based on today’s extreme are investors such as Ed Boston — are the ones that practice the values. By RANDAL O’TOOLE Wachenheim, who argues that housing strongest forms of “smart growth” or In a normal market, for example, The Thoreau Institute is different from other markets and so other growth management. These arti- the monthly mortgage on a home should Bandon, Ore. won’t suffer a huge decline in value. In ficial constraints prevent builders from not be much more than the cost of rent- eal estate analysts are hotly de- the middle are numerous analysts who supplying the demand for housing, lead- ing a similar home. But in many hous- bating whether the U.S. hous think that there is no national bubble ing to rapid price increases and an ex- ing markets today, rents won’t cover R ing market is in a bubble. A but that prices may fall in “some com- pectation on the part of home buyers mortgages; in such cases, the Economist bubble would mean people are paying munities”. that such increases will continue. unrealistically high prices and a fall in Home prices are too high, says one Bubbles arise when prices are based those prices could devastate our analyst, in only about 20 urban areas, more on speculation that such prices Continued as “Bubbles,” Page 3 NC Should Spend Gas, Car Taxes On. The John Locke Foundation NONPROFIT ORG. 200 W. Morgan St., # 200 Contents U.S. POSTAGE Only Roads 57% Raleigh, NC 27601 PAID Other Items, Too 38% State Government 3 RALEIGH NC Not Sure 5% Washington Watch 6 PERMIT NO. 1766 Education 8 Higher Education 12 Local Government 16 Books & the Arts 20 Opinion 24 Parting Shot 28 % of N.C. Respondents in Oct. 2004 JLF Poll C A R O L I N A C A R O L I N A North Carolina JOURNAL “Grand Total” line showed that Tippett In July 2004 the DOT Board ap- JOURNAL Safety had spent $3,054,935; the speaker proved two contingency fund projects $4,088,985; and Basnight had spent in Columbus County. State Sen. R. C. Continued From Page 1 $1,740,219 this fiscal year. Soles, D-Columbus, had requested $150,000 to purchase and renovate a Richard Wagner DOT has 173 Spot Safety Program The process service station to provide a welcome Editor projects, estimated to cost a total of $20 center in Tabor City. Basnight approved million, waiting for funding. The cur- “Speaker Black has approved Bill the request and the money was essen- Don Carrington Executive Editor rent budget for Spot Safety is $9.1 mil- Owens request of $250,000 for the Main tially charged to Basnight’s account. At lion. Expenditures from this fund are Street (project) in Elizabeth City. Please the same board meeting $210,000 was Paul Chesser, Michael Lowrey for traffic signals, turn lanes, guardrails, find the enclosed letter for details. This approved to grade and pave a rural Donna Martinez, Jon Sanders regrading, and other activities to en- is half of the $500,000 needed for this dead-end road in Columbus County. Associate Editors hance safety. Requests for projects come project and Speaker Black would like to The request came from Rep. Dewy Hill, from DOT engineers, highway patrol- share the cost with Senator Basnight,” D-Columbus, was approved by Black, Chad Adams, Shannon Blosser, men, private citizens, and local-govern- read a memo from Black’s office to and deducted from Black’s $5 million Andrew Cline, Roy Cordato, ment officials. Accident and injury data Tippett. The DOT Board approved each account. Bob Fliss, David Hartgen, are gathered to prioritize projects. request and several others at the board Summer Hood, Lindalyn Kakadelis, For the current year the General meeting Feb. 3, 2005. In a quandary George Leef, Marc Rotterman, Assembly appropri- A story in The Karen Palasek, R.E. Smith Jr., ated a separate $15 Daily Advance of When asked how the speaker ob- Jack Sommer, John Staddon, million for contin- Legislative control of Elizabeth City gave tained a discretionary fund, Hill told CJ, George Stephens, Jeff Taylor, gency funds to be used discretionary funds more details on the “I wish I could tell you. I don’t know. I Michael Walden, Karen Welsh statewide for “rural or project. DOT Divi- have no idea how the system works.” Contributing Editors “clearly raised a seri- small urban highway sion 1 Engineer An- He said he recently became aware that ous constitutional Jenna Ashley Robinson, improvements and re- thony Roper told city the contingency funds could also be Paul Messino, Brian McGraw lated transportation question about the officials that the city used for Spot Safety projects. Editorial Interns enhancements to pub- is eligible to receive One such Spot Safety project in Co- lic roads and public fa- separation of powers.” $250,000 now and lumbus County that remains unfunded cilities, industrial ac- will be eligible to re- is the resurfacing and regrading of Slip- cess roads, and spot safety projects, in- ceive the remaining $250,000 in July. pery Log Road. That project is estimated Published by cluding pedestrian walkways that en- Roper’s comments imply that someone to cost $250,000. DOT information on The John Locke Foundation hance highway safety.” has the influence and ability to deliver the proposed project states that in the 200 W. Morgan St., # 200 The legislation also states that the discretionary money, even from a new past three years there were 18 total acci- Raleigh, N.C. 27601 secretary of transportation shall approve budget that has yet to be debated. That dents, 11 of which were considered cor- (919) 828-3876 • Fax: 821-5117 the projects. While Tippett and the DOT someone is Basnight, who according to rectable by the proposed improvements. www.JohnLocke.org Board formally approve the legislator’s the paper, “has vowed to support the The accidents produced three fatalities projects, the approval process appears city’s latest request” for $500,000. and 13 injuries. Jon Ham to be automatic. Contingency fund ex- “Streetscape and beautification When asked why contingency funds Vice President & Publisher penditures do not receive the thorough project along Main Street (a non-system were not applied to that project first Hill John Hood analysis by DOT engineers that Spot street) in the Town of Elizabeth City…” said, “That’s a good question. That’s a Chairman & President Safety projects receive. Contingency reads the project description on a DOT terrible highway.” He said he recently funds are sometimes used to pay for form “Request for Statewide Contin- requested $7,000 from Black for the pav- Bruce Babcock, Herb Berkowitz, projects on the Spot Safety list, but many gency Funds.” The form even has a pre- ing of a Columbus County fire depart- John Carrington, Sandra Fearrington, contingency fund expenditures appear printed space to check if the request is ment parking lot. Jim Fulghum, William Graham, to have little or nothing to do with safety. from the Senate president pro tem or the DOT traffic safety systems engineer Lee Kindberg, Robert Luddy, In July 2004, Tippett approved speaker of the House.
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