INSIDE THIS ISSUE: DEPARTMENTS Senator: North Carolina 2 Education 8 Fiscal trans- CAROLINA Local Government 10 From Page 1 13 parency Higher Education 17 website not Books & the Arts 20 Opinion 24 a problem/2 JOURNAL Parting Shot 28 A MONTHLY JOURNAL OF NEWS, ANALYSIS, AND OPINION FROM THE JOHN LOCKE FOUNDATION August 2015 Vol. 24 No. 8 STATEWIDE EDITION Check us out online at carolinajournal.com and johnlocke.org I-77 Lawsuit: Toll Deal Unconstitutional lodged complaints in July with Attor- ney General Roy Cooper and NCDOT Cornelius woman Inspector General Mary Morton, claim- ing that the parent companies and af- says the contractor filiates of I-77 Mobility Part- failed to disclose ners failed to disclose fully all past legal prob- legal problems lems as part of By Don Carrington the bid process. Executive Editor An NCDOT RALEIGH spokesman ac- ven though Gov. Pat McCrory k n o w l e d g e d has said the tolling project along that the agency is looking into the Interstate 77 corridor north Diane Gilroy Eof Charlotte will go forward, it faces her concerns. a challenge to its constitutionality, as Opponents well as allegations the contractor did of the project want the state to build not meet full-disclosure requirements. additional lanes without charging The lawsuit, filed in January by tolls and pay for them using existing the nonprofit organization Widen I77, This photo of I-77 at exit 31, taken at 3:48 p.m. on June 10, shows traffic, including funding mechanisms or with highway claims the deal violates the state con- many trucks, headed toward Charlotte slowing to a crawl. No trucks would be able to bonds McCrory has proposed. stitution. Among other allegations, the use the proposed toll lanes to be built in the median. (CJ photo by Don Carrington) Robert Poole, director of trans- lawsuit charges that the General As- for state and federal tax liability if the Mobility Partners will set toll portation policy at the Reason Foun- sembly delegated too much authority state terminates the contract also is un- rates, collect the tolls, and — for the dation and a longtime advocate of to the N.C. Department of Transporta- constitutional. most part — keep all the proceeds. This privately financed toll roads, toldCaro - tion, which will allow the contractor to NCDOT closed the deal with I-77 would be the second toll-road project lina Journal he continues to support the set toll rates without legislative over- Mobility Partners on May 20 to build built in North Carolina and the first us- project as a way to relieve congestion sight. what is officially called the I-77 Hot ing a public-private partnership. along that segment of I-77. He also ac- In addition, the lawsuit claims a Lanes Project. The 26-mile-long proj- In addition to the lawsuit, Di- knowledged that the proposal had sig- provision in the contract for NCDOT ect, running from Charlotte to Moores- ane Gilroy, a Cornelius resident and a to compensate I-77 Mobility Partners ville, is expected to cost $648 million. Spanish professor at UNC-Charlotte, Continued as “I-77,” Page 14 Stanly College Eatery Raises Ethics Concerns PAID mercial operations that compete di- RALEIGH, NC U.S. POSTAGE rectly with private businesses. PERMIT NO. 1766 NONPROFIT ORG. Proposal calls for The purchase and lease of the res- taurant would erase Stanly Heritage community college Properties’ debt on the property, which has had trouble keeping tenants. Stan- to operate for-profit ly Heritage Properties is a subsidiary of Uwharrie Bank. Stanly Community College Board of Trustees chairman downtown restaurant According to an inquiry filed Nadine Bowers and members Thom- as Hearne, Joe Brooks, James Nance, By Dan Way with the North Carolina Ethics Com- Associate Editor mission, Stanly Community College and Todd Swaringen are directors of ALBEMARLE wants the city of Albemarle to pur- Uwharrie Bank, its parent corpora- plan by Stanly County govern- chase the former Big Al’s restaurant tion Uwharrie Capital Corporation, or ment and private institutions to from Stanly Heritage Properties and both. place a profit-seeking commu- lease it to the private Stanly Commu- “My local community college Anity college culinary arts program in a nity College Foundation. The inquiry was trying to find a way around the vacant downtown Albemarle building suggests that the deal runs afoul of the Umstead [Act] that would basically al- faces scrutiny, as critics say the propos- state Umstead Act, which prohibits The John Locke Foundation 200 W. Morgan St., #200 Raleigh, NC 27601 al may violate state law. state agencies from establishing com- Continued as “Stanly,” Page 15 PAGE 2 AUGUST 2015 | CAROLINA JOURNAL North CaroliNa C a r o l i n a Brock: Fiscal Data Site Should Be No Problem By Dan Way work with Brock “to make sure that what he’s suggesting is Journal Associate Editor doable, and something that we can actually do at a reason- RALEIGH able cost on that time frame outline.” Rick Henderson oncerns about the costs of a fiscal transparency mea- Roberts said he doesn’t have a cost estimate. “That’s Managing Editor sure in the Senate budget, raised by local govern- one of the key aspects of the amendment that we need to try ments and some officials in the McCrory administra- to understand.” Don Carrington Ction, are misplaced, says Sen. Andrew Brock, R-Davie, who Data collection would be an issue for the local school Executive Editor introduced the plan as an amendment to the Senate budget. districts, cities, and counties, he said. Brock’s amendment requires the state budget office “Unfortunately, even within state government we and the controller to work with the state chief information have a lot of different systems that don’t talk to each other Mitch Kokai, Michael Lowrey officer to make funding of a state budget transparency web- as well as they should, and it’s a struggle to present data in Barry Smith, Kari Travis site a priority. The amendment passed the Senate by a vote a consistent and comprehensive way,” Roberts said. Dan Way Associate Editors of 47-2 and at press time was Gov. Pat McCrory pro- before the conference committee posed consolidating all IT func- Chad Adams, Kristy Bailey of House and Senate members tions in a new Department of In- David N. Bass, Lloyd Billingsley negotiating a two-year General formation Technology “in part Kristen Blair, Roy Cordato Fund budget. to address these concerns,” Rob- Becki Gray, Sam A. Hieb The goal, beginning with erts said. The budget did not Lindalyn Kakadelis, Troy Kickler the 2015-16 budget year, is for include funding for a database George Leef, Karen McMahan every state agency to provide its that could share data among all Donna Martinez Karen Palasek budget data, and for counties, agencies and governing units, Marc Rotterman, Jesse Saffron cities, and local education agen- he added. Terry Stoops, Andy Taylor cies to post local budget and While spending money on Michael Walden, Hal Young spending data on their websites information technology is “not a John Calvin Young Contributors while providing that informa- necessarily politically appealing tion to the Local Government thing,” Roberts said, “we find Commission. everywhere we look the legacy Joseph Chesser, Zak Hasanin “We’ve been talking about of decades of underinvestment Catherine Koniecsny, Charles Logan letting the people see the gov- in infrastructure, including our Austin Pruitt, Matt Shaeffer ernment’s ledgers since Gov. IT infrastructure, and that’s Interns [Jim] Holshouser’s inaugural something we need to address speech” in 1973, Brock told Car- if we’re going to be prudent and Published by olina Journal. “It’s the people’s money we’re talking about, effective stewards.” The John Locke Foundation and it’s long past time we make this happen.” Kevin Leonard, executive director of the North Caro- 200 W. Morgan St., # 200 Brock’s plan also has the backing of House leaders. lina Association of County Commissioners, said Brock’s in- Raleigh, N.C. 27601 “I believe Sen. Brock’s amendment encompasses the kind tentions “appear to be well-meaning, but the net effect is it (919) 828-3876 • Fax: 821-5117 of transparency in government that we all embrace,” said creates more government regulation.” www.JohnLocke.org Rep. Jason Saine, R-Lincoln, speaking on behalf of House By law, counties must make their budgetary informa- Speaker Tim Moore, R-Cleveland. tion available to the public, and that process is already in Jon Ham “There is always a need for sunshine on governmental place, he said. Vice President & Publisher spending and operations, and I believe this is a great first “With Internet access, anyone can access this informa- step,” Saine said. He added the measure both would en- tion simply by visiting the county’s website,” Leonard said. Kory Swanson hance transparency and make it easier for policymakers to North Carolina League of Municipalities spokesman President analyze the data. Scott Mooneyham said the League believes citizens should Saine wants the new portal to work alongside the ex- have easy access to information about how government is John Hood isting Government Data Analytics Center program housed spending their money. He said the City of Raleigh’s website Chairman within the state Office of Information Technology Services. “is a great example” that could serve as a model. Even so, state CIO Chris Estes says there are “some “At the same time, it is important to recognize that the Charles S. Carter, Charles F. Fuller concerns” about placing funding for the transparency web- overwhelming majority of the roughly 550 municipalities in Bill Graham, John M.