Page 1

NEW LISTINGS NEW LISTINGS NEW LISTINGS NEW LISTINGS

Everything you need to find, finance and buy the house of your dreams

March 7, 2013

Building At Peaceful Hartman Farm 4905 Leadenhall, Staffordshire Estates 4 BR/ 3 1/2 BA. This amazing home is loaded with custom features. Enter through the front door and find a dramatic 2 story entry and dramatic stairway . Feature stone wall w/ FP in Great Room. Gourmet kitchen w/ granite and stainless steel and awesome island. Cozy Keeping Room w/another stone FP. Main floor Master Suite and office. Decorator neutral paint throughout. Bonus Room, finished basement w/ 4th BR, Exercise Room & Play Room . Screened porch and large lot. 2 car large garage . Beautiful details throughout! Enjoy the fabulous quiet neighborhood. $529,900 Bobbie Maynard, 336-215-8017

833 Cornwallis, Irving Park 4 BR 2 ½ Bath. Located in the heart of Irving Park. This home offers many updates and 2 story addition with sunroom and den/library. Separate entrance to 2nd floor, which features 2 bedrooms, bath and another kitchen. Roof replaced recently along with AC units. Plenty of storage in floored attic space. Fresh paint and lovely landscaped yard. Great convenient location. No HOA.

5523 E. Rockingham Road, Greensboro, NC 27407 – Brick 1.5 story in desirable Sedgefield. Spacious rooms throughout. Beautiful hardwood floors, fireplaces in living room and den. Remodeled kitchen with stainless appliances and attractive granite countertops. Living room has gas FP and plantation shutters. Den has built-in desk and shelving. Master bath has whirlpool tub and separate shower. Huge second level bonus plus third bedroom. Circular drive and two-car attached carport. Unfinished basement with lots of potential and incredible space. Private lot! $289,900 Melissa Greer 337-5233

4036 Windstream Court, Lakeside Ii/Nottingham, Jamestown 3BR 2.5BA Conveniently located in the Triad! Enjoy private bkyd w/fencing, deck & garden space. Lots of light & windows throughout-vaulted ceiling in LR, cathedral ceiling in MBR. Lg eat in kit w/island & granite counters. Ready for new family.(665438) Eileen Shubert 215-4437 $157,600

48 Windsor Road, Windsor Hylls, Thomasville 4BR 2BA Great location near Ledford Schools. Quiet nbhd. Recently painted & new carpet. Two garages are great for boat storage, “man cave” or the person who wants to work on cars. Low-maintenance vinyl exterior. (665526) Marshall Morgan 906-1314 $154,900

(Continued on page 38)

Don Mills of Don Mills builders (left) and Rich Dumas of R&K Investment Properties are now building in Hartman Farm. The homes start in the $300,000s, sit on an acre of land and are in the Northern Guilford school district. by sandy groover Rich Dumas of R&K Investment Properties and Don Mills of Don Mills Builders are excited about the launch their latest projects in Hartman Farm in northern Guilford County. Both builders have purchased eight lots each in the development, and construction is now beginning in earnest. According to Allen Tate Realtor Anne Powell of Powell & Partners, who works with Dumas and Mills, homes in the $300,000 to $400,000 price range are at a premium in the Northern Guilford school district. She said that for several years now, people coming into the area have not been able to find new homes in that price point on an acre of land. They have either had to buy existing homes or extend themselves and buy something in the $400,000 and above range. She said that Hartman Farm will answer the need with the custom homes Dumas and Mills build.

These two award-winning custom homebuilders are well prepared to fill that void. Neither is a newcomer to the industry. In fact, as Powell pointed out, both have a large following. Don Mills has been a member of

the Greensboro Builders Association (GBA) for more than 25 years and was recently named 2012 Builder of Year by the GBA. Rich and Kathy Dumas received the Builder of Year distinction (Continued on page 20)

Allen Tate had a full house at a Realtor luncheon on Blue Heron Drive in Lake Jeanette on Wednesday.


Page 18 Rhino Real Estate | March 7, 2013

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DON MILLS BUILDERS, INC. Building in Beacon Hill | Hartman Farms | Birkhaven at Oak Ridge | Stonebridge We have lots available in each of the locations above.

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For more information, call 336.362.1777

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DON MILLS BUILDERS, INC.

www.donmillsbuilders.com


March 7, 2013 | Rhino Real Estate Page 19

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**As reported by Builder Magazine. *Home and community information, including pricing, included features, terms, availability and amenities, are subject to change and prior sale at any time without notice or obligation. Copyright 2013


Page 20 Rhino Real Estate | March 7, 2013

Hartman (Continued from page 17)

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in 2010. This year, R&K received the Lewis Award from the GBA for utilizing the most association members in the construction of their homes. Both builders are active in the GBA’s community service projects, such as Peacehaven Farm and Raising Roofs...Builders for Habitat Build, and Mills is chairman of this year’s Parade of Homes, which will be held the last weekend in April and first weekend in May. Now, for the first time, said Powell, homebuyers can go out to the county and get a custom R&K or Mills home for under $400,000 with all the bells and whistles typically found in houses far over that price point. She said homebuyers won’t have to sacrifice any component of a home in order to have the home of their dreams at an affordable price. Powell also pointed out that typically, the price for a home that is on an acre of land is well over $450,000. So this is an opportunity for a buyer to get into a community with a large lot, lower price point and excellent schools. This is also an advantageous time to build. According to market analyst Edsel Charles of MarketGraphics

Research Group Inc., there will soon be a scarcity of lots on which to build in northern Guilford County. Charles, who tracks housing trends for the industry, told members of the GBA in a recent presentation that there will be an enormous crisis in the availability of lots in three years. The developed lots that are now being built on are not being replenished, and in this popular area there soon will be few left. With its proximity to Northern Guilford schools and the shopping and entertainment of downtown Greensboro, Hartman Farm is an ideal location for those who want spaciousness of country living with urban amenities and good schools. Its location also is convenient to Bryan Park on Lake Townsend, with its golf courses, soccer complex and marina, as well as being close to the new Gunter’s Crossing Shopping Center at Church Street and NC 150. Hartman Farm is not just for families with children, however. Dumas said that they are finding that retirees, emptynesters and first-time homebuyers, as well as families with children, are looking to build in this location. Set amidst gently rolling hills, Hartman (Continued on page 38)

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CAROLINA

INSIDE THIS ISSUE:

JOURNAL

Renewable energy mandates facing legislative scrutiny/2

A MONTHLY JOURNAL OF NEWS, ANALYSIS AND OPINION FROM THE JOHN LOCKE FOUNDATION

March 2013 Vol. 22 No. 3

Check us out online at carolinajournal.com and johnlocke.org

DEPARTMENTS North Carolina Education Local Government From Page 1 Higher Education Opinion Parting Shot

2 4 6 8 10 12 16

TRIAD EDITION

N.C. Rejects Exchange, Medicaid Expansion

Bill opts state out of Obamacare’s key provisions By Dan Way Associate Editor

A

RALEIGH

n amended bill to ban both Medicaid expansion and a state health insurance exchange was sent to Gov. Pat McCrory Feb. 26. McCrory had not signed the legislation at press time, but has said he supports it. Votes on the bill reflected a deep partisan gulf on the Gov. Pat measure, with Repub- McCrory licans and Democrats citing their own reports and statistics. It’s also unclear how much money the state will have to pay to connect to the federal exchange, and how soon the state will have to pay it. If, as expected, McCrory signs Senate Bill 4, North Carolina will join more than half the states in rejecting a

Want all 28 pages of Carolina Journal? This version of Carolina Journal, inserted into your local weekly, consists of just 16 pages of the full 28-page CJ statewide edition. If you would like to get those extra 12 pages of first-rate journalism and policy analysis, all you have to do is go to CarolinaJournal.com and click on “Subscribe” in the top right corner of the page. Just fill out the form you’ll be put on our monthly mailing list. Or you can call 919-8283876 and ask one of our helpful representatives to put you on the mailing list. We look forward to hearing from you.

Here is the situation as of Feb. 27 regarding states establishing health care exchanges. Several states are still negotiating with the federal government, so their status may change. (Map courtesy of FreedomWorks)

state-based insurance exchange under the Affordable Care Act. McCrory also will find himself on the opposing side of at least eight Republican governors, including most recently Rick Scott of Florida and Chris Christie of New Jersey, who have accepted Medicaid expansion under Obamacare.

The Senate passed S.B. 4 Feb. 5, but the House added a provision at McCrory’s request ensuring funding for the NC FAST information technology system, which will allow the state to connect to the federal Obamacare exchange — an online marketplace of federally approved insurance plans

from which individuals who do not get employer-provided health insurance would choose their preferred coverage. In addition to the 26 states that have joined North Carolina in rejecting Continued as “North Carolina,” Page 8

State’s ‘Unjust Land Grab’ Attempt Continues Attorney general working to take land from black family By Don Carrington Executive Editor

D

RALEIGH

espite a ruling by the N.C. Court of Appeals saying the state has no interest in the property known as Hammocks Beach, lawyers working for Attorney General Roy Cooper are forcing John H. Hurst and his sister Harriet Hurst Turner to continue fighting for the 289-acre Onslow County waterfront property. The

John Hurst is shown in front of buildings on the contested property in 2010. (CJ file photo)

Hursts’ battle with the state has lasted more than six years. John and Harriet’s grandparents, who died during the era of racial segregation, had an opportunity to take possession of the land. Instead, the Hursts insisted it be transferred to a trust that

would use the property as a beach resort for African-American teachers. That proposal became impossible when government-endorsed segregation ended. In 2010, a court ruled that the current owner, the Hammocks Beach Corp., must relinquish the property. The state wants to take the land without compensation to expand the adjacent Hammocks Beach State Park. Carolina Journal first reported on the Hurst family case in January 2011. Documents obtained by CJ show that the Hurst family is willing to sell the land to the state after obtaining clear title to it. The Hurst family thought the battle was over after a unanimous Dec. Continued as “State’s,” Page 9


PAGE PAGE CJ2 CJ2

C CA AR RO O LL II N NA A

JOURNAL Rick RickHenderson Henderson Managing ManagingEditor Editor Don DonCarrington Carrington Executive ExecutiveEditor Editor Mitch MitchKokai, Kokai,Michael MichaelLowrey Lowrey Barry BarrySmith, Smith,Dan DanWay Way Associate AssociateEditors Editors Chad ChadAdams, Adams,Kristy KristyBailey Bailey David DavidN. N.Bass, Bass,Lloyd LloydBillingsley Billingsley Kristen KristenBlair, Blair,Sara SaraBurrows Burrows Roy RoyCordato, Cordato,Becki BeckiGray Gray Sam SamA. A.Hieb, Hieb,Lindalyn LindalynKakadelis Kakadelis Troy TroyKickler, Kickler,George GeorgeLeef Leef Elizabeth ElizabethLincicome, Lincicome,Karen KarenMcMahan McMahan Donna DonnaMartinez, Martinez,Karen KarenPalasek Palasek Marc MarcRotterman, Rotterman,Michael MichaelSanera Sanera John JohnStaddon, Staddon,George GeorgeStephens Stephens Terry TerryStoops, Stoops,Andy AndyTaylor Taylor Michael MichaelWalden, Walden,Karen KarenWelsh Welsh Hal HalYoung, Young,John JohnCalvin CalvinYoung Young Contributors Contributors Joseph JosephChesser, Chesser,Hubert HubertPapes Papes Mathew MathewSchaeffer, Schaeffer,Daniel DanielSimpson Simpson Interns Interns

Published Publishedby by The TheJohn JohnLocke LockeFoundation Foundation 200 200W. W.Morgan MorganSt., St.,##200 200 Raleigh, Raleigh,N.C. N.C.27601 27601 (919) (919)828-3876 828-3876 •• Fax: Fax:821-5117 821-5117 www.JohnLocke.org www.JohnLocke.org Jon JonHam Ham Vice VicePresident President&&Publisher Publisher John JohnHood Hood Chairman Chairman&&President President Herb HerbBerkowitz, Berkowitz,Charlie CharlieCarter Carter Jim JimFulghum, Fulghum,Chuck ChuckFuller Fuller Bill BillGraham, Graham,Assad AssadMeymandi Meymandi Baker BakerA. A.Mitchell MitchellJr., Jr.,Carl CarlMumpower Mumpower David DavidStover, Stover,J.M J.MBryan BryanTaylor Taylor Andy AndyWells Wells Board BoardofofDirectors Directors Carolina Carolina Journal Journal isis aa monthly monthly journal journal ofof news, news, analysis, analysis,and andcommentary commentaryon on state state and and local local government government and and public public policy policy issues issues in in North NorthCarolina. Carolina. ©2013 ©2013by byThe TheJohn JohnLocke LockeFoundation Foundation Inc. Inc.All Allopinions opinionsexpressed expressedin inbylined bylinedarticles articles are arethose thoseofofthe theauthors authorsand anddo donot notnecessarily necessarily reflect reflectthe theviews viewsofofthe theeditors editorsofofCJ CJororthe the staff staffand andboard boardofofthe theJohn JohnLocke LockeFoundation. Foundation. Material Materialpublished publishedherein hereinmay maybe bereprinted reprintedasas long longasasappropriate appropriatecredit creditisisgiven. given.SubmisSubmissions sionsand andletters lettersare arewelcome welcomeand andshould shouldbe be directed directedtotothe theeditor. editor. CJ CJ readers readers wanting wanting more more information information between between monthly monthly issues issues can can call call 919-828919-8283876 3876and andask askfor forCarolina CarolinaJournal JournalWeekly Weekly Report, Report, delivered delivered each each weekend weekend by by e-mail, e-mail, ororvisit visitCarolinaJournal.com CarolinaJournal.comfor fornews, news,links, links, and andexclusive exclusivecontent contentupdated updatedeach eachweekday. weekday. Those Thoseinterested interestedin ineducation, education,higher highereducaeducation, tion,ororlocal localgovernment governmentshould shouldalso alsoask asktoto receive receiveweekly weeklye-letters e-letterscovering coveringthese theseissues. issues.

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MARCH MARCH 2013 2013 || CAROLINA CAROLINA JOURNAL JOURNAL

Renewable Energy Mandates May Face Changes BByyDDan anW Way ay Associate AssociateEditor Editor

I

RALEIGH RALEIGH

nterest nterestisiscoalescing coalescingaround aroundaalegislative legislativeproposal proposalto torerepeal pealaalaw lawforcing forcingenergy energycompanies companiesto tobuy buyincreasingly increasingly larger largervolumes volumesof oftax-subsidized tax-subsidizedrenewable renewableenergy. energy.Rep. Rep. Mike Mike Hager, Hager, R-Rutherford, R-Rutherford, isis working working on on the the bill bill as as Gov. Gov. Pat Pat McCrory McCrory pushes pushes for for offshore offshore wind wind farms farms — — aa form form of of renewable renewable energy energy — — and and endorsing endorsing an an “all-of-the-above” “all-of-the-above” approach approachto toenergy. energy. “We “Wehave haveto toget getout outof ofsubsidizing subsidizingaasector sectorof ofbusiness. business. It’s It’snot notthe thegovernment’s government’sjob” job”to todetermine determinewho whowill willbe besucsuccessful cessfuland andwho whowon’t, won’t,said saidHager, Hager,who whoisistaking takingthe thelead leadin in the the Republican-controlled Republican-controlled General General Assembly Assembly to to phase phase out out portions portionsof ofSenate SenateBill Bill3.3. That Thatlaw lawmandates mandatesimplementation implementationof ofaastatewide statewidererenewable newable portfolio portfolio standard standard requiring requiring power power companies companies to to buy buypower powerfrom fromrenewable renewablesources, sources,including includingsolar, solar,wind, wind, swine swineand andpoultry poultrywaste, waste,and andbiomass biomassproducts. products. “If “Ifyou’re you’rearguing arguingfor forS.B. S.B.33and andto tokeep keepthe themandate, mandate, it’s it’s an an emotional emotional argument; argument; it’s it’s not not aa logical logical or or fact-based fact-based argument,” argument,”Hager Hagersaid. said. Hager Hager said said his his plan plan would would allow allow existing existing renewable renewable energy energycontracts contractsto tobe befulfilled. fulfilled.Utility Utilitycompanies companiesthat thathave have invested invested in in renewable renewable technology technology to to fulfill fulfill state state mandates mandates also alsowould wouldnot notbe bestuck stuckwith withany anystranded strandedcosts. costs. “We’ve “We’vegot gotaacouple coupleof ofcompeting competingbills billswe’re we’reworking working through through right right now,” now,” Hager Hager said. said. “We’re “We’re trying trying to to combine combine several several of of our our ideas ideas together together in in one one bill,” bill,” which whichhe heexpected expectedto tobe beintroduced introduced at atany anytime. time. Meanwhile, Meanwhile, McCrory McCrory sent sent aa letter letter Jan. Jan. 22 22 to to the the federal federal Bureau Bureau of ofOcean OceanEnergy EnergyManagement Managementsupsupporting porting aa U.S. U.S. Department Department of of the the Interior Interior decision decision to to establish establish three three wind wind energy energy sites sites off off North North CaroCarolina’s lina’scoast. coast. “I “Ibelieve believean an‘all-of-the-above’ ‘all-of-the-above’ energy energy plan plan that that includes includes wind wind isis vital vital to to aa prosperous prosperous energy energy fufuture ture in in North North Carolina,” Carolina,” McCrory McCrory wrote. wrote.“I “Ihave havepledged pledgedto toestablish establish aa partnership partnership with with neighboring neighboring states statesto todevelop developoffshore offshoreresources resources and and recruit recruit companies companies to to bring bring aa much-needed much-needed infusion infusion of of energy, energy, jobs, jobs,and andinvestment investmentto tothe thestate.” state.” Offshore Offshore commercial commercial wind wind farms farms “could “could help help diversify diversify the the portfolio portfolio of of renewable renewable enenergy ergysources sourcesin inthe thestate,” state,”McCrory McCrorywrote. wrote. Hager Hagersaid saidMcCrory’s McCrory’sletter letter“didn’t “didn’tbother botherme meaabit. bit.II support supportall allof ofthe theabove, above,too, too,as aslong longas asour ourtaxpayers taxpayersaren’t aren’t supporting supportingit” it”with withsubsidies. subsidies. Hager Hager said said he he has has talked talked with with the the governor governor and and his his staff, staff,as aswell wellas assenators, senators,about abouthis hisbill, bill,and andbelieves believesthey theyare are all allon onthe thesame samepage. page. But But Nick Nick Loris, Loris, aa policy policy analyst analyst at at the the Washington, Washington, D.C.-based D.C.-basedHeritage HeritageFoundation, Foundation,sounded soundedaanote noteof ofcaution. caution. “Both “BothRepublicans Republicansand andDemocrats Democratsthrow throwout outthis thisallallof-the-above of-the-aboveenergy energypolicy, policy,and andto tome methat’s that’sthe themost mostscary scary term termof ofthem themall allbecause becauseititgenerally generallymeans meanssubsidize subsidizeall allof of the theabove,” above,”Loris Lorissaid. said. “Essentially, “Essentially,that’s that’sthe thetrouble troublewith withthe thesystem systemisisyou you have havethese thesefederal federaltax taxcredits creditslike likethe thewind windproduction productiontax tax credit credit or or the the investment investment tax tax credit credit for for offshore offshore wind, wind, and and aa lot lot of of the the generation generation isis occurring occurring in in these these states states with with an an RPS,” RPS,”Loris Lorissaid. said.Federal Federalsubsidy subsidybenefits benefitsare areconcentrated concentrated only onlyin instates statesthat thathave haveaarenewable renewableportfolio portfoliostandard, standard,and and those thosestates statesgenerally generallyend endup upwith withhigher higherelectricity electricityprices. prices. “If “If there’s there’s an an energy energy producer producer who who thinks thinks offshore offshore

wind windmakes makeseconomic economicsense, sense,we wethink thinkthey theyshould shouldbe beperpermitted mittedto tobuild buildthat thatto toprovide providethat thatelectricity,” electricity,”he hesaid. said. “Unfortunately, “Unfortunately,all allof ofthe thetime timethat thatoffshore offshorewind windisisbebeing ingproposed proposedit’s it’susually usuallyin incollaboration collaborationwith withsome somesort sortof of renewable renewableportfolio portfoliostandards standardsor orgenerous generousfederal federaland andstate state subsidies,” subsidies,”Loris Lorissaid. said. “Even “Eventhe theObama ObamaEnergy EnergyInformation InformationAdministration Administration notes notesthat thatoffshore offshorewind windisisthe themost mostexpensive expensiveway wayto togenergenerate ateelectricity,” electricity,”and andthose thosesubsidized subsidizedcosts costsare arepassed passedalong along to to consumers, consumers, he he said. said. “As “As itit stands stands now, now, itit doesn’t doesn’t seem seem like likethe theeconomics economicsof ofoffshore offshorewind windmake makemuch muchsense.” sense.” While WhileHager Hagerwants wantsto toabolish abolishNorth NorthCarolina’s Carolina’srenewrenewable able portfolio portfolio standards, standards, Glen Glen Andersen, Andersen, energy energy program program director director for for the the National National Conference Conference of of State State Legislatures, Legislatures, said saidutilities utilities“haven’t “haven’ttended tendedto tobe bevery verysupportive” supportive”of ofsuch such reform. reform. “The “The tendency tendency in in states states where where they they have have tried tried this, this, utilities utilitiesinvest investaalot lotof ofmoney moneyand andalso alsoplanned plannedtheir theirwhole whole energy energyplans plansaround aroundthese thesepolicies. policies.Starting Startingone onepolicy policyand and then thenpulling pullingititout outisisextremely extremelycostly,” costly,”Andersen Andersensaid. said. Businesses Businesseslike like“consistent “consistentmarket marketsignals,” signals,”Andersen Andersen said. said.Abolishing Abolishingthe therenewable renewableportfolio portfoliostandard standardisisnot notthe the only onlyconcern. concern.Businesses Businesseshave haveno noguarantee guaranteean anRPS RPSwould would not not be be restored restored ifif its its supporters supporters regained regained control control of of state state government. government. “We’re “We’recommitted committedto tocomplying complyingwith withthe theterms termsof ofSenSenate ateBill Bill3,3,but butwe webelieve believeenergy energypolicy policyshould shouldbe befocused focusedon on the thelong longterm termbecause becauseof ofthe thenature nature of of investments investments we we are are required required to to comply comply with,” with,” said said Duke Duke Energy Energy spokesman spokesmanJeff JeffBrooks. Brooks. Renewable Renewable portfolio portfolio stanstandards dards require require “in “in some some cases cases very very long-term long-term investments investments and and commitments,” commitments,” Brooks Brooks said. said. “If “If something somethingchanges changeswith withthat thatwe’ll we’ll certainly certainly comply comply with with that, that, but but our our focus focus isis generally generally on on the the long long term.” term.” Hager Hagersaid saidhis hisbill billwould wouldadaddress dressthose thoseconcerns. concerns.ItItwill will“make “make sure sure our our municipalities municipalities and and utiliutilities tiesare areheld heldwhole wholeon onthe thecontracts contracts we wetold toldthem themto toget,” get,”he hesaid, said,and and “to “to keep keep the the jobs jobs there there until until the the contracts contractsrun runout” out”in in2021. 2021. That That will will inject inject “more “more cercertainty tainty than than they they have have right right now. now. ...... They They know know they they have have aa certain certain amount amountof oftime” time”to torecoup recoupinvestinvestment mentcosts, costs,Hager Hagersaid. said. As As itit stands, stands, Duke Duke Energy Energy isis having having aa difficult difficult time time complying complyingwith withmany manyof ofthe thelegislatively legislativelymandated mandatedrenewrenewable ableenergy energysources. sources. Brooks Brooks said said swine swine and and chicken chicken manure manure and and biomass biomass have have experienced experienced slack slack markets. markets. He He declined declined to to give give hard hard numbers, numbers,citing citingconfidentiality confidentialityof ofcontracts. contracts. “At “Atone onepoint pointwe wehad hadput putout outrequests requestsfor forthose thosetechtechnologies nologies and and had had not not identified identified aa number number of of projects projects that that were wereviable viablewithin withinthe thetime timeframe framewe weneeded neededor orwithin withinthe the parameters” parameters”required, required,Brooks Brookssaid. said. “We’ve “We’veseen seenthe thecosts costscome comedown downin insome someareas areasover over the theyears yearsas asmore moreof ofthe thetechnologies technologiesimprove, improve,and andthe thecosts costs come comedown downas asmore moreinvestments investmentsare aremade madein inthe theindustry, industry, but but they they still still do do typically typically price price out out higher higher than than the the other other energies energiesthat thatwe wedispatch,” dispatch,”Brooks Brookssaid. said. And Andthat’s that’sHager’s Hager’smain mainpoint pointof ofcontention contentionin indraftdrafting inghis hislegislation. legislation. “Duke “Dukeisisbasically basicallySanta SantaClaus,” Claus,”he hesaid. said. “Anybody “Anybodywho’s who’saabeneficiary beneficiarywill willbe beagainst againstititbecause because they’re they’re getting gettingaabailout, bailout,they’re they’regetting gettingaasubsidy,” subsidy,”Hager Hager said. said. “Everybody “Everybody gets gets paid paid except except for for the the consumer.” consumer.” CJ CJ


MARCH 2013 | CAROLINA JOURNAL

North CaroliNa

PAGE CJ3

McCrory Signs Bill Designed to Help Pay State’s UI Debt to Feds

By Barry Smith Associate Editor

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ov. Pat McCrory in late February signed into law a bill that would rework the state’s unemployment insurance system and put the state on track to repay a $2.5 billion debt that the state borrowed from the federal government to pay unemployment benefits during the Great Recession. House Bill 4 increases taxes for some employers, shortens the number of weeks an unemployed worker is eligible for benefits, and reduces the maximum benefits such a person can receive. “This bipartisan solution will protect our small businesses from continued overtaxation, ensure our citizens’ unemployment safety net is secure and financially sound for future generations, and help provide an economic climate that allows job creators to start hiring again,” McCrory said in a statement announcing his signing of the legislation. The bill received some support from Democrats in the General Assembly. Four Democratic senators voted for the bill, as did three Democratic representatives. Two Republicans in the House voted against it.

The bill cuts benefits by reducing the maximum weekly amount from $535 to $350 and reduces the maximum number of weeks a jobless worker can collect unemployment benefits from 26 weeks to 20 weeks. However, the duration could be reduced to 13 weeks if the economy improves and the unemployment rate drops significantly. As a result of the new law and federal legislation passed earlier this year, a number of North Carolinians receiving extended unemployment benefits will see those checks stop later this year. Until the debt to the federal government is paid off, employers must pay an annually increasing surcharge. Under this bill, the debt will be paid off in 2015 or 2016 instead of in 2019, according to fiscal analysts. The action by the GOP governor came as good news to Chuck Edwards, president and CEO of the C. Edwards Group Inc., which owns seven McDonald’s restaurants in western North Carolina. “I know that business in general is very appreciative of the state leaders for giving this some attention because

the problem wasn’t even on the radar screen two years ago,” Edwards said. Edwards, 52, started working at a McDonald’s on Spartanburg Highway in Hendersonville when he was 16 years old. Now, that restaurant is one of the seven that he and his wife own. He said they have 360 employees at the restaurants. Edwards said that beginning in 2011, he was assessed a federal surcharge of $21 a year per employee. The surcharge increases by $21 a year until it maxes out at $96, Edwards said. That surcharge would be in place until the debt is paid off. This year, that surcharge amounts to $63 per employee, he said. With 360 employees, that would make his federal surcharge $22,680. Edwards said the federal penalties that businesses have to pay are an impediment to reinvesting in his business. “I think that it’s critical that business sees some relief in the penalties so they can continue to provide jobs,” Edwards said. “It is a limiting factor to being able to reinvest in our business,

add jobs, and give back to the community.” Edwards said he isn’t trying to claim that the surcharge, in and of itself, will keep him from hiring new employees. “But it’s one factor in a complicated equation,” he said. As a result of the new law and federal legislation passed earlier this year, a number of North Carolinians receiving extended unemployment benefits will see those checks stop later this year. In addition to the surcharges assessed by the federal government, some businesses also will see increased taxes as a result of the new law. Those include businesses currently paying no taxes because they have a good employment history and businesses already paying the highest unemployment tax rate as a result of numerous layoffs. One Republican who voted against the bill, Rep. Kelly Hastings, RGaston, said he did so because he believed voting for the bill would violate a no-new-taxes pledge he had taken. Democrats in the legislature argued that the benefit cuts were too steep and would result in critical losses of income for laid-off workers. The bill takes effect July 1 and will apply to claims for benefits filed on or after that date. The tax portion of the bill takes effect Jan. 1, 2014. CJ


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MARCH MARCH 2013 2013 || CAROLINA CAROLINA JOURNAL JOURNAL

School Choice Advocates Turn Attention to Funding Alternatives

Supporters seek funding, say choice saves taxpayer money BByy D Dan an W Way ay Associate Associate Editor Editor

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he he school school choice choice movement movement has has been been growing growing in in North North Carolina, Carolina, and and many many backers backers — — from from parparents ents and and advocacy advocacy groups groups to to state state lawlawmakers makersand andlocal localofficials officials— —believe believethe the next next logical logical step step is is to to address address funding funding issues issues to to accommodate accommodate the the expansion. expansion. Terry Terry Stoops, Stoops, John John Locke Locke FounFoundation dation director director of of research research and and educaeducation tion studies, studies, is is among among those those who who want want to to resolve resolve funding funding inequities inequities in in how how school school choice choice is is handled. handled. “Proponents “Proponents of of school school choice choice envision envision an an education education system system that that enensures sures that that all all families families have have the the means means to tochoose choosethe theschool schoolthat thatbest bestmeets meetsthe the needs needs of of their their children, children, regardless regardless of of the the provider,” provider,” Stoops Stoops said. said. “The “The way way that that those those funds funds are are collected collected and and dedelivered livered may may vary, vary, but but the the principle principle reremains mains the the same. same. Families, Families, not not bureaubureaucrats, crats, should should be be in in charge.” charge.” Expanding Expanding school school choice choice options options would would help help North North Carolina Carolina address address aa gap, gap,Stoops Stoopssaid. said.And Andhe hehighlights highlightsthe the inconsistency inconsistency in in opponents opponents arguing arguing that that public public tax tax dollars dollars never never should should be be used used to to fund fund private private or or parochial parochial K-12 K-12 education education as as part part of of parental parental school school choice. choice. “Few “Few North North Carolinians Carolinians realize realize that thatthe thestate statehas hasextensive extensiveeducational educational options options for for preschoolers preschoolers and and college college students students but but little little for for children children in in the the ‘middle’ ‘middle’ — — the the 1.5 1.5 million million students students in in district-run district-run public public schools,” schools,” Stoops Stoops said. said. “Well “Well over over $1 $1 billion billion in in state state and and federal federal funding funding goes goes to to private private prepreschools, schools, child-care child-care facilities, facilities, and and ininstitutions stitutions of of higher higher education education every every year.” year.” Stoops Stoops explores explores options options for for imimproving proving parental parental choice choice in in education education through through aa detailed detailed look look at at what what has has taken taken place place in in other other states states — — and and what what could could happen happen in in North North Carolina Carolina — — as as part part of of aa new new book book by by JLF, JLF, First First in in Freedom: Freedom: Transforming Transforming Ideas Ideas Into Into ConseConsequences quences for for North North Carolina. Carolina. A A chapter chapter in in the the book book sets sets out out aa “nuts-and-bolts” “nuts-and-bolts” guide guide to to school school choice choice issues, issues, including including funding. funding. “Tax-credit “Tax-credit scholarships scholarships allow allow individuals individuals or or corporations corporations — — or or both, both, depending depending on on the the program program — — to to reredirect direct aa portion portion of of their their state state tax tax paypayments ments to to aa nonprofit nonprofit organization organization that that provides provides private-school private-school scholarships,” scholarships,” Stoops Stoops said. said. These These scholarships scholarships can can take take many many forms, forms, Stoops Stoops said. said. Eight Eight states states already already operate operate 10 10 existing existing tax-credit tax-credit scholarship scholarship programs. programs.

them down. down. Their Their testing testing data data is is aa “As “As North North Carolina Carolina lawmakers lawmakers them public document document on on the the state state board’s board’s look look into into tax-credit tax-credit scholarships, scholarships, they they public website.… …None Noneof ofthat thatis isavailable availablefor for will will face face aa number number of of questions,” questions,” he he website. private schools.” schools.” said, said, “Should “Should credits credits be be means-tested, means-tested, private June June Atkinson, Atkinson, state state superintensuperintenuniversal, universal, or or have have mixed mixed eligibility? eligibility? dent of of public public instruction, instruction, also also objects objects Should Should the the credit credit apply apply to to individual individual dent to to using using tax tax or or corporate corporate inincredits credits for for pubpubcome come taxes? taxes? To To lic lic education. education. sales sales or or property property “I “I believe believe taxes? taxes? Should Should that that is is not not in in the the donors donors get get doldolbest best interest interest of of llaarr--ffoorr--ddoollllaarr public public educaeducacredits?” credits?” tion, tion, and and more more Stoops Stoops also also iim mppoorrttaannttllyy devotes devotes attenattenII don’t don’t think think tion tion to to education education that’s that’s in in the the best best savings savings account. account. interest interest of of the the “An “An education education students students of of our our savings savings accounts accounts state,” state,” she she said said is is aa tax-free tax-free vevein in an an earlier earlier ininhicle hicle in in which which terview. terview. parents parents can can save save money money to to spend spend “No. “No. 1, 1, on on approved approved ededmoney money does does ucation ucation expensexpensmatter, matter, and and we we es, es, such such as as tutuare are in in aa very very ition, ition, textbooks, textbooks, difficult difficult time time in in and and tutoring, tutoring, our ourstate statewhen whenitit and and into into which which comes comes to to fundfundggoovveerrnnm meennttss ing ing public public edueducan can also also deposit deposit cation cation adequateadequatetax tax dollars dollars for for ly,” she she said. said. Options Options for for improving improving school school choice choice in in ly,” these these uses.” uses.” “No. “No. 2, 2,any any North NorthCarolina Carolinacan canbe befound foundin inaanew newbook book TT hh ee published typeof oftax taxcredit credit published by by the the John John Locke Locke Foundation Foundation type 2013-14 2013-14 GenGen- titled titledFirst Firstin inFreedom: Freedom:Transforming TransformingIdeas Ideas likely likely would would not not eral eral Assembly Assembly into into Consequences Consequences for for North North Carolina. Carolina. be be equal equal to to that that is is expected expected to to of of aa public public tutudiscuss discuss many many of of these these issues, issues, includinclud- ition ition in in aa private private school, school, and and No. No. 3, 3, II ing ingtax-credit tax-creditscholarships scholarshipsand andmoving moving believe believe that that public public education education exists exists for for some some charter charter school school supervision supervision away away the the public public good good of of our our state,” state,”Atkinson Atkinson from from state state regulators. regulators. said. said. “It “It is is an an investment investment in in our our future, future, “Our “Our membership membership does does not not see see and and by by taking taking away away from from our our public public any any difference difference between between tax tax credits, credits, schools schools it’s it’s aa way way of of making making and and renrenvouchers, vouchers, or or scholarships,” scholarships,” said said LeLedering dering them them more more ineffective ineffective rather rather anne anne Winner, Winner, director director of of governmental governmental than than making making them them more more effective.” effective.” relations relations at at the the North North Carolina Carolina School School Stoops Stoops notes notes that that about about 50,000 50,000 Boards Boards Association, Association, which which opposes opposes such such funding. funding. “They “They all all do do the the same same thing,” thing,” Winner Winner said. said. “It “It is is aa diversion diversion of of pubpublic lic resources resources to to private private entities” entities” even even ifif the the mechanics mechanics are are aa little little different. different. Schools Schools already already have have budgets budgets with with huge huge funding funding holes, holes, she she said. said. IfIf the the state state is is going going to to put put taxpayer taxpayer reresources sources into into education education programs programs “it “it needs needsto tobe beones onesthat thatare arepublic publicand andare are accountable accountable to to the the public.” public.” Winner Winnersaid saidschool schoolchoice choice“means “means aavery verydifferent differentthing thingto toaalot lotof ofpeople. people. A Alot lot of of people people assume assume itit means means choice choice within withinthe thepublic publicsector, sector,and andwe wehave haveaa lot lotof ofthat thatin inthis thisstate” state”that thatdidn’t didn’texist exist aa decade decade or or two two ago. ago. For For example, example, she she said, said, there there is is choice choice among among public public schools schools in in an an inindividual dividual district. district. There There are are magnet magnet schools schools and and early early college college programs. programs. “We “We have have charter charter schools. schools. Those Those are are public public schools. schools. They They do do have have to to be be accountable accountable to to the the public,” public,” WinWinner ner said. said. “There “There is is aa mechanism mechanism when when they they are are not not performing performing the the way way they they should should the the state state can can come come in in and and shut shut

children children attend attend public public charter charter schools schools in in North North Carolina, Carolina, and and that that number number is is bound bound to to grow grow now now that that the the state state has has abandoned abandoned its its longstanding longstanding cap cap of of 100 100 charters charters statewide. statewide. “These “These independent, independent, tuitiontuitionfree free public public schools schools of of choice choice are are more more popular popular than than ever, ever, but but the the State State Board Board of of Education Education continues continues to to approve approve heavy-handed heavy-handed rules rules and and regulations regulations that that multiply multiply the the challenges challenges that that new new and and existing existing charter charter schools schools face,” face,” he he said. said. “Excessive “Excessive regulation regulation stifles stifles exexperimentation, perimentation, innovation, innovation, and and cuscustomization.” tomization.” In In the the book, book, Stoops Stoops notes notes that that state state education education agencies agencies oversee oversee only only 19 19 percent percent of of charter charter schools schools nationnationwide. wide. School School districts districts authorize authorize and and regulate regulate more more than than half half of of all all charter charter schools. schools. He He calls calls for for the the General General AssemAssembly bly to to amend amend the the charter charter school school law law to to give give school school districts districts full full authority authority to to create create charter charter schools, schools, but but says says an an independent independent review review board, board, for-profit for-profit companies, companies, county county commissions, commissions, city city councils, councils, mayors, mayors, or or boards boards of of trusttrustees ees of of twotwo- or or four-year four-year institutions institutions of of higher higher education education should should have have the the same same power. power. Winner Winnersaid saidthe theschool schoolboards boardsasassociation sociation has has been been lobbying lobbying for for more more than than aa decade decade “for “for local local boards boards of of education education to to create create [charter [charter schools], schools], convert convert them, them, either either have have the the choice choice to to keep keep itit under under the the local local board board of of edueducation cation or or let let itit be be its its own own independent independent school school with with its its own own independent independent govgoverning erning board.” board.” “We “We don’t don’t have have aa position position on on aa separate separate review review board,” board,” Winner Winner said, said, citing citing aa possible possible lack lack of of expertise expertise ifif the the review review board board were were based based in in aa CJ CJ small small community. community.


MARCH 2013 | CAROLINA JOURNAL

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Advocates Pushing For More Charters in Rural Areas

PEFNC’s program wants to accelerate charter school growth By Barry Smith Associate Editor

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ven though lawmakers removed the cap of 100 charter schools nearly two years ago, the bulk of the nontraditional public schools remain in a cluster of metropolitan counties. Parents for Educational Freedom in North Carolina has launched what it calls the N.C. Public Charter School Accelerator program, aimed at helping rural North Carolina counties obtain charter schools, prepare potential charter operators to navigate the state’s bureaucracy, and, after obtaining their charters, help them provide quality instruction to their students. “This is serious business,” said Darrell Allison, president of PEFNC, a nonprofit advocacy group that promotes school choice. “We’ve got to make sure that we push for and we demand higher quality out of public charter schools. We can’t have mediocre schools.” Charter schools are public schools that get tax money based on the number of students enrolled at the school. Each is governed by its own board of directors and generally has more flexibility and fewer regulations than traditional public schools. Allison notes that by this fall there will be 132 charter schools in the state, with more than a third of them in

The website of Parents for Educational Freedom in North Carolina is at http://pefnc.org.

either Charlotte, Durham, Greensboro, or Raleigh. He said that about half of the 156 letters of intent to open charter schools in the fall of 2014 were located in those cities. “It looks like they’re trying to make sure that students across the state have choice everywhere,” said Joel Medley, director of the N.C. Office of Charter Schools. The accelerator program is working to open charter schools in fall 2014 in Bertie, Halifax, and Scotland counties, none of which has a charter. “We’re talking about counties in regions where we’ve had a historically dismal performance,” Allison said. PEFNC notes that the three counties have an average end-of-grade test passage rate of 49 percent. The graduation rates are 76 percent in Halifax and Scotland counties and 72 percent in Bertie County. “We are trying to offer very highquality options to students who don’t currently have options available to them in some of our state’s under-

Visit our Triad regional page http://triad.johnlocke.org

The John Locke Foundation has five regional Web sites spanning the state from the mountains to the sea. The Triad regional page includes news, policy reports and research of interest to people in the Greensboro, Winston-Slem, High Point area. It also features the blog Piedmont Publius, featuring commentary on issues confronting Triad residents. The John Locke Foundation | 200 W. Morgan St., Raleigh, NC 27601 | 919-828-3876

achieving districts,” said Christopher Gergen, who has been retained by PEFNC to help create the program. Gergen, a Durham-based entrepreneur and management trainer, has experience working with private and charter schools to improve their leadership and student performance. “We’re not focused on output, we’re focused on outcomes,” Gergen said. Gergen said the accelerator draws on similar programs in Chicago, Denver, and New Orleans. “The first stage is to improve the applicants’ access to best practices, leadership, and coaching as they prepare their charter school applications,” Gergen said. Medley said that while the state charter schools office does have workshops to help potential operators through the application process, the office doesn’t have the resources to provide the intensive level of training that the accelerator program will be providing.

PEFNC’s accelerator program won’t stop when a charter is awarded. They plan to support the applicants through their planning year, Gergen said. The training will be for both the charter school’s administrators and its board of directors. Allison said the accelerator program will take charter applicants chronologically from the application process to opening their doors to students. The group does not plan to stop with one set of applicants. It hopes to have an additional six charters ready to open in each of the following three years. To accomplish the task, the accelerator program has amassed a support team to work with the applicants. It includes officials with the KIPP Foundation charter schools, founders and chief school officers of other charter schools, and former Teach for America corps members. “It sounds like they’re reaching out to folks that have demonstrated that they have charter school experience, have produced charter school excellence, have worked in small rural areas, or have recently opened charter schools,” Medley said. Allison noted how charter schools have more flexibility and the ability to embrace innovation more openly than most traditional public schools. Some schools have expanded hours, he said. For example, some charter schools start at 7 a.m. and end at 6 p.m. in order to provide more time to help students with reading. “You have schools that, every quarter or so, have two or three Saturdays where they have students in CJ the classroom,” Allison said.

Share your CJ Finished reading all the great articles in this month’s Carolina Journal? Don’t just throw it in the recycling bin, pass it along to a friend or neighbor, and ask them to do the same. Thanks.


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Town Town and and County County Backyard Backyard cottages cottages nixed nixed Raleigh Raleigh City City Council Council has has rerejected jected aa proposal proposal allowing allowing backbackyard yard cottages cottages under under its its new new dedevelopment velopment code. code. The The move move comes comes after after the the idea idea generated generated strong strong opposition opposition from from neighborhood neighborhood groups, groups, reports reports the the Raleigh Raleigh News News & & Observer. Observer. Backyard Backyard cottages cottages typically typically run run about about 800 800 square square feet, feet, and and include include aa kitchen kitchen and and bathroom. bathroom. Such Such outbuildings outbuildings are are often often used used by by older older relatives relatives or or rented rented out, out, where where they they are are popular popular with with colcollege lege students students and and other other young young adults. adults. A A major major appeal appeal of of allowing allowing the the cottages cottages is is that that itit would would allow allow existing existing neighborhoods neighborhoods to to have have aa higher higher population population density. density. That That is is also also the the exact exact reason reason that that many many residents residents of of older older neighborhoods neighborhoods dislike dislike the the idea, idea, fearing fearing that that alallowing lowing cottages cottages would would create create adadditional ditional traffic traffic and and noise. noise. “Many “Many of of us us moved moved to to RaRaleigh leigh because because we we don’t don’t want want aa dense dense neighborhood,” neighborhood,” said said Linda Linda Watson, Watson, chairwoman chairwoman of of the the GlenGlenwood wood Citizens CitizensAdvisory Advisory Council. Council. Several Several council council members members said said they they may may create create aa pilot pilot proprogram gram in in one one neighborhood neighborhood ifif enough enoughof ofits itsresidents residentssupport supportthe the cottages. cottages.

City-county City-county consolidation? consolidation? Tight Tight budgets budgets have have returned returned to to the the agenda agenda the the concept concept of of conconsolidating solidating the the city city of of Wilmington Wilmington and and New New Hanover Hanover County County for for the the provision provision of of services. services. Whether Whether the the latest latest talks talks will will amount amount to to anyanything thing remains remains to to be be seen, seen, reports reports the the Wilmington Wilmington Star-News. Star-News. The The idea idea of of combining combining serservices vices is is not not new. new. Broad Broad merger merger proposals proposalscame camebefore beforevoters votersthree three times times in in the the past past and and were were rejectrejected, ed,most mostrecently recentlyin in1995. 1995.Since Sincethe the last last defeat, defeat, the the two two entities entities have have agreed agreed on on smaller smaller mergers, mergers, creatcreating ing the the Cape Cape Fear Fear Public Public TransTransportation portation Authority Authority and and the the Cape Cape Fear Fear Public Public Utility UtilityAuthority. Authority. “We “We want want to to look look at at where where can can we we save save money, money, where where can can we we be be more more efficient, efficient, and and where where can can we we build build real real partnerships,” partnerships,” Woody Woody White, White, chairman chairman of of the the New New Hanover Hanover Board Board of of CommisCommissioners, sioners, said said of of the the latest latest talks. talks. For Fornow, now,the thefocus focusis ismore moreon on cooperating cooperating than than merging merging departdepartments. ments. The The New New Hanover Hanover County County Commission Commission also also has has three three new new members members who who want want greater greater colcollaboration laboration and and may may back back aa broad broad CJ CJ merger. merger.

loCal oCal GovErNmENt ovErNmENt

MARCH MARCH 2013 2013 || CAROLINA CAROLINA JOURNAL JOURNAL

Sparks Fly As CLT Authority Bill Moves Ahead BByy D Dan an W Way ay Associate Associate Editor Editor

Over Over the the past past few few years, years, efforts efforts have have been been made made to to make make the the airport airport and and aa proposed proposed surrounding surrounding intermodal intermodal RALEIGH RALEIGH transportation transportation park park into into aa “huge “huge economic economic engine engine and and drivdrivho ho gets gets to to run run Charlotte Charlotte Douglas Douglas International International er” er” for for the the state, state, Rucho Rucho said. said. Airport Airport has has become become aa prickly, prickly, billion-dollar billion-dollar turf turf “It “It is is critical critical that that the the authority authority provides provides the the dedicatdedicatbattle. battle. Charlotte Charlotte and and Mecklenburg Mecklenburg County County offioffi- ed ed and and knowledgeable knowledgeable experience experience to to continue continue moving moving itit cials cialswant wantto toground groundwhat whatthey theysee seeas asan anunnecessary unnecessarypower power down downthat thatpathway pathwayof ofcontinued continuedsuccess,” success,”Rucho Ruchosaid. said.“It “Itis is grab grab orchestrated orchestrated by by Republican Republican lawmakers lawmakers to to end end longlong- very very critical critical for for the the region, region, the the city city and and the the state state … … to to have have standing standing city city control control in in favor favor of of aa new new regional regional authority. authority. knowledgeable knowledgeable people people in in place.” place.” The The legislation, legislation, Senate Senate Bill Bill 81, 81, ostensibly ostensibly is is being being conconSen. Sen. Malcolm Malcolm Graham, Graham, D-Mecklenburg, D-Mecklenburg, was was not not perpersidered sideredas asaaway wayto toprotect protectinvestments investmentsin inwhat whatall allagree agreeis isaa suaded. suaded. “It “It is is not not broken,” broken,” Graham, Graham, chairman chairman of of the the MeckMeckgiant gianteconomic economicengine enginefor forthe theCharlotte Charlotteregion regionand andthe thestate. state. lenburg lenburgCounty Countylegislative legislativedelegation, delegation,told toldcommittee committeememmemAs As the the airport airport continues continues to to grow grow and and plans plans coalesce coalesce for for aa bers. bers. “We’re “We’re about about to to break break it” it” ifif the the Charlotte-run Charlotte-run airport airport is is future future intermodal intermodal transportation transportation park, park, backers backers of of aa regional regional remade remade into into aa regional regional authority authority with with state state involvement. involvement. authority authority say say full-time full-time administration administration that that is is expert expert in in aa vavaGraham, Graham, aa former former Charlotte Charlotte City City Council Council member, member, riety riety of of disciplines disciplines is is needed. needed. said said the the airport airport is is “a “a billion-dollar billion-dollar asset,” asset,” and and called called the the Under Under the the legislation, legislation, all all assets assets of of the the airport airport would would rush rush to to approve approve S.B. S.B. 81 81 without without proper proper study study “an “an act act of of popobe be transferred transferred to to aa 13-member 13-member board, board, whose whose members members litical litical malpractice.” malpractice.” He He said said there there is is bipartisan bipartisan support support on on would would serve serve no no more more than than two two four-year four-year staggered staggered terms. terms. the the Charlotte Charlotte council council “to “to put put the the brakes brakes on on this.” this.” Mecklenburg, Mecklenburg, Cabarrus, Cabarrus, “Quite “Quite frankly, frankly, II Gaston, Gaston, Iredell, Iredell, Lincoln, Lincoln, think think it’s it’s being being pushed” pushed” and andUnion Unioncounty countycommiscommistoward toward approval approval too too fast, fast, sions sions each each would would appoint appoint Charlotte Charlotte Councilman Councilman one one member member to to the the authorauthorAndy Andy Dulin Dulin told told the the comcomity’s ity’s board. board. Charlotte Charlotte City City mittee. mittee. “Talk “Talk and and converconverCouncil Council and and the the Charlotte Charlotte sation sation is is aa healthy healthy thing. thing. mayor mayor would would appoint appoint one one We We don’t don’t mind mind having having aa member member each. each. study study done,” done,” Dulin Dulin said. said. The The Senate Senate president president “We’ll “We’ll pay pay for for it.” it.” pro pro tem tem and and House House speakspeakCharlotte CharlotteDouglas DouglasInIner er each each would would recommend recommend ternational ternational Airport, Airport, operoperone one member member to to the the General General ated ated by by the the city city since since 1936, 1936, Assembly Assembly for for approval. approval. is is the the sixth-busiest sixth-busiest airport airport The The governor governor would would have have in in the the nation. nation. ItIt handles handles one one appointment. appointment. All All three three more more than than 700 700 flights flights daily daily appointments appointments must must be be and and has has the the lowest lowest boardboardresidents residents of of Mecklenburg Mecklenburg ing ing costs costs of of any any airport airport in in County. County. The The board board would would the the U.S., U.S., Dulin Dulin said. said. appoint appoint two two at-large at-large memmemSen. Sen. Tom Tom Apodaca, Apodaca, bers. bers. R-Henderson, R-Henderson, chairman chairman of of The The measure measure was was rere- Under Underproposed proposedlegislation, legislation,all allassets assetsof ofCharlotte CharlotteDouglas DouglasInterInterthe the Rules Rules Committee, Committee, took took national Airport Airport would would be be transferred transferred from from the the city city of of Charlotte Charlotte ported portedfavorably favorablyFeb. Feb.20 20out out national exception to to the the charactercharacterto aa 13-member 13-member board board made made up up of of appointees appointees from from surrounding surrounding exception of of the the Senate Senate Rules Rules ComCom- to political political jurisdictions. jurisdictions. (City (City of of Charlotte Charlotte photo) photo) ization ization of of the the legislation legislation mittee. mittee. ItIt then then was was assigned assigned being being rushed. rushed. to to the the Senate Senate Finance Finance ComCom“In “In an an effort effort not not to to have have malpractice, malpractice, II will will send send this this mittee mittee to to determine determine whether whether transferring transferring the the governance governance of of bill bill to to Finance Finance for for them them to to have have a a look,” look,” Apodaca Apodaca said. said. “We “We the the airport airport might might create create legal legal and and financial financial concerns concerns related related are aa deliberative deliberative body.” body.” to to outstanding outstanding bond bond issues. issues. The The bill bill was was in in committee committee at at are “It “It just just seems seems odd odd to to me” me” that that there there are are more more appointappointpress press time. time. ments ments from from Raleigh Raleigh than than from from Charlotte, Charlotte, said said Sen. Sen. Josh Josh Stein, Stein, Sen. Sen.Bob BobRucho, Rucho,R-Mecklenburg, R-Mecklenburg,said saidCharlotte CharlotteDougDougD-Wake. D-Wake. That That “sounds “sounds like like a a power power grab grab from from Raleigh.” Raleigh.” las las is is aa “very “very cherished cherished asset” asset” with with “remarkable “remarkable success” success” as as Stein, Stein, aa member member of of the the Raleigh-Durham Raleigh-Durham Airport Airport AuAuaa “huge “huge attraction attraction for for business” business” due due to to decades decades of of managemanagethority thoritythat thatruns runsRDU RDUInternational InternationalAirport, Airport,noted notedthat thatnone none ment ment by by aviation aviation director director Jerry Jerry Orr. Orr. of the the RDU RDU board board members members is is appointed appointed by by the the governor governor or or But But at at 71, 71, Orr Orr may may retire retire soon. soon. “We “We can can never never depend depend of the General GeneralAssembly. Assembly. on onone oneindividual individualto tobe bethe thearchitect, architect,implementer implementerof ofthe thedede- the But But Sen. Sen. Bill Bill Rabon, Rabon, R-Brunswick, R-Brunswick, noted noted that that six six of of the the sign sign and and vision vision that that is is so so critical,” critical,” Rucho Rucho said. said. 11 board board members members who who would would select select the the two two at-large at-large memmemAccording According to to The The Charlotte Charlotte Observer, Observer, Orr Orr has has suggested suggested 11 bers would would be be from from either either Charlotte Charlotte or or Mecklenburg Mecklenburg councounthe the airport airport would would operate operate better better under under an an authority authority instead instead bers ties, so so they they could could keep keep control control of of the the authority authority through through of ofthe thecity. city.Orr Orrhas hassparred sparredwith withcity cityofficials officialsover overbond bondissue issue ties, those at-large at-large appointments. appointments. accounting accounting miscues miscues that that drew drew attention attention from from the the IRS IRS aa few few those Stein Stein also also prompted prompted the the decision decision to to refer refer the the bill bill to to the the years yearsago, ago,and andcomplained complainedwhen whenairport airportsecurity securitywas wastranstransSenateFinance FinanceCommittee Committeeafter afterremarking remarkingthe thestate statetreasurtreasurferred ferred from from his his supervision supervision to to the the Charlotte-Mecklenburg Charlotte-Mecklenburg Senate er’s office office is is concerned concerned about about legal legal considerations considerations of of movmovPolice Police Department Department after after aa teen teen stowaway stowaway died died in in the the wheel wheel er’s ing ing more more than than $800 $800 million million in in bonds bonds backed backed by by Charlotte’s Charlotte’s well well of of aa jet. jet. AAA bond bond rating rating into into aa new new authority authority with with no no history history or or “There “There are are aa number number of of airports airports within within the the state state of of AAA rating. North North Carolina Carolina and and across across the the country country that that have have moved moved to to rating. “There “There is is an an issue issue of of whether whether all all of of the the bonds bonds are are gogothis this authority authority [format], [format], and and what what the the authority authority is is designed designed ing to to have have to to be be bought bought back” back” and and reissued reissued by by the the city city at at aa to todo dois isactually actuallyto toprovide provideexperience, experience,expertise, expertise,and andaaclear clear ing potentially higher higher cost, cost, Stein Stein said. said. focus” focus” that that goes goes beyond beyond aa part-time part-time job job for for an an assistant assistant city city potentially Rucho Rucho said said the the $800 $800 million million in in bonds bonds are are supported supported manager, manager, Rucho Rucho said. said. The The authority authority would would do do aa better better job job providing providing “a “a vivi- through through the the airport’s airport’s revenue revenue stream, stream, not not taxes. taxes. No No assets assets sion sionand andaastrategic strategicplan planfor forthe theadvancement advancementand andgrowth growthof of from fromCharlotte Charlottecan canbe beused usedto topay paythe thebonds, bonds,he hesaid, said,so sohe hebebethat that airport,” airport,” Rucho Rucho said. said. lieves lievesthe therevenue revenuebonds bondsstand standon ontheir theirown ownmerit. merit. CJ CJ

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MARCH 2013 | CAROLINA JOURNAL

loCal GovErNmENt

Cumberland County Connects Premiums to Employee Health By miChael loWrey Associate Editor

C

RALEIGH

umberland County is the latest local jurisdiction in North Carolina to link medical insurance premiums employees pay to their health. Employees meeting medical targets will pay less for health insurance, reports the Fayetteville Observer. For several years, the county has offered a $30 monthly discount on health insurance to employees who attend its annual wellness fair. To earn the discount, employees now must meet established standards in three of four areas or show a 10 percent improvement compared to the previous year. The county spent $17.6 million in fiscal 2011-12 on its employee health plan. Claims rose 11 percent compared to the previous year. “We’re trying to do what we can do to contain costs,” County Manager James Martin said. “Employee accountability is one way to try to do that.” Not all employees favor the initiative, but that did not deter Martin from adopting the requirement. “As unpopular and distasteful as it is, that’s what we need to do,” he said. “Otherwise, the cost of employee health care is going to go so high that we’re going to end up in a situation where employees are going to have to pick up a greater and greater share of the cost of their individual health insurance.” The county already operates a primary care clinic and pharmacy for its workers. It gives its employees an extra 30 minutes for lunch if they use the time to exercise.

Cherokee

quires a citizen to show by a preponderance of evidence that an officer engaged in misconduct. That’s difficult to accomplish, since citizens don’t have access to internal affairs reports. The review board also lacks investigative powers. Tim Lynch, director of the Cato Institute’s Project on Criminal Justice, criticized Charlotte’s review board as “not serious about looking into complaints or doesn’t have the power to look into misconduct.” The public also has lost confidence in the review board. “In this situation, all the red flags just point to the word is out that the board always sides with police,” Lynch said. “What happens is people stop filing complaints because of the perception. Then the police use that decline as a sign they are doing a good job.”

to

CMPD review board Since 1997, a Citizens Review Board has reviewed allegations of police misconduct in Charlotte. The Charlotte Observer reports that, to date, the board always has sided with police, calling into question the usefulness of the review board. Since its creation, citizens have brought 78 cases of alleged misconduct by Charlotte-Mecklenburg Police Department officers before the review board. In 74 cases, the cases were dismissed without the review board holding a formal hearing. In the four cases in which a hearing was held, the board sided with police. These outcomes are not surprising in part because the process favors police. To obtain a formal hearing re-

PAGE CJ7

Currituck

Monroe government panned A consultant’s report has painted a highly unflattering picture of Monroe’s city government, complete with a meddling city council, secret recordings, and nepotism, reports The Charlotte Observer. The report by Parker Poe Adams and Bernstein was commissioned in response to Monroe’s high turnover among city managers. It contains a long list of serious issues facing the Union County city of 33,000. Under its council-manager model of government the council sets policy with the city manager acting as Monroe’s top administrator. Most council members did not understand or respect this division of responsibility, and frequently intervened in disputes that should have been in the city manager’s areas of responsibility. City managers, in turn, have been unwilling to stand up to city council for fear of being fired. One person interviewed by the consultant said, “If Jesus himself wanted to be the city manager of Monroe, he would have been fired in 6 months.” The report also found “credible and objective evidence” that Police Chief Debra Duncan had recorded former City Manager Wayne Herron secretly during a dispute over compensation. This contributed to Herron’s resignation, after a phone call threatening Duncan was traced to Herron. The report noted the existence of nepotism, with the city hiring the husband, son, son’s fiancée, and an exgirlfriend of the son of a city council member. CJ

COMMENTARY

I

US-American Merger Shouldn’t Hurt Charlotte

labor costs. That could mean some n February, American Airlines routes could be eliminated — some agreed to merge with US Airways, the dominant airline in the of the international flights from Charlotte are particularly vulnerstate with its largest hub in Charable — but could also translate into lotte. The announcement sparked a bit less service (i.e., fewer flights some concern, as recent airline a day) to cities relatively close to mergers often have led to the elimiCharlotte, including cities in North nation of a major hub as the two Carolina. carriers combined their operations. Increased revenues could offSuch fear is misplaced in this case, set some of the higher labor costs, though there’s reason to expect but that necessarily would translate some reduction in the size of the into higher fares and fees. combined carrier’s Charlotte hub, Communities often and, by extension, flights see airline mergers as an to other cities in North opportunity for additional Carolina. service. Mergers certainly American Airlines’ do create opportunities business model has to “connect the dots” changed in recent years. It between, say, American’s now offers flights almost operations in Chicago, exclusively from just five Dallas, and Miami, and “cornerstone” markets: markets American curLos Angles, Chicago, rently doesn’t serve in New York City, Miami, and Dallas. Of these, only MICHAEL North Carolina. There could be some Dallas and Chicago actuLOWREY potential for new routes to ally function as domestic appear, but that potential hubs. is limited by the realiAmerican’s New ties of the airline business. Airlines York City operations at LaGuardia are not eager to add long flights and JFK airports are too small to to small markets on high-cost-peroffer much in the way of connectseat-mile 50-seat regional jets. And ing opportunities. Miami’s location that’s especially true if they fly over makes it a great place to connect to a major hub like Charlotte. fly to Latin America but also makes Indeed, airlines’ dislike for it a rotten (and expensive) place to smaller regional jets stretches connect for purely domestic travel. Fear that the merger will result beyond using them on 800-mile routes. New in the eliminalabor agreetion of either ments at Delta, or both of US United, and, Airway’s Charyes, American, lotte and Philapave the way to delphia hubs begin replacing is misplaced. 50-seat regional The combined jets with larger carrier has aircraft. Which no workable is to say that substitute for the bar for air either hub. service soon will That does be raised. Much not mean, howof the growth in air travel will come ever, that there will not be changes via larger aircraft, not more flights. in the scale of operations in CharIt always takes a while for lotte or Philadelphia. US Airways’ the impacts of mergers to become business model recognized that apparent. Industries, including the it could not generate the sort of airline business, always adapt to revenues that American, Delta, and changing conditions. United have received. US Airways There’s no reason to believe compensates for this by lowering its costs, particularly for labor. With that North Carolinians won’t continue to enjoy excellent access to air the merger, US Airways employee transportation, including a major pay will go up to match the higher hub in Charlotte, when all is said rates American pays. This is exactly and done. why most of US Airways’ unions CJ are all for the merger. From this it follows that not all of US Airways’ existing flights will Michael Lowrey is an associate make sense at American’s higher editor of Carolina Journal.

Air travel growth will come in the area of larger aircraft, not more flights


PAGE CJ8

From PaGE 1

MARCH 2013 | CAROLINA JOURNAL

North Carolina Rejects Health Exchange and Medicaid Expansion lican.

Continued from Page 1

a state-run exchange, seven others seek to operate an exchange jointly with the federal government, and the remaining states will manage their own exchanges. The funding for NC FAST originally came from federal grants former Gov. Bev Perdue accepted that were related to the Obamacare exchange. The Senate did not agree with the changes in the House version of S.B. 4, sending the bill to a conference committee. The conference report passed the House 74-40, and the Senate, 31-16. The conference report includes a fiscal note saying it will cost $45.7 million to connect to the federal exchange, with roughly half due during the current fiscal year. But the fiscal note says it’s unclear how much money the federal government will reimburse the state for technology and personnel expenses for NC FAST.

‘Illusion’ of state control Republican leaders made it clear they would reject a state-based exchange early in the session. “This is the right direction for the state of North Carolina. The federal government created this monster” and should be responsible for operating the health care exchanges, state Rep. Justin Burr, RStanly, a vice chairman of the Health and Human Services Committee, said during committee debate. Burr called it “an illusion” to believe the state would control how a state exchange is run because the federal government would dictate the guidelines. He and other Republican committee members said the federal government has a poor track record of keeping funding promises, and worried that the Affordable Care Act is just another expensive, bait-and-switch program. After the state connects to the federal exchange, federal and state officials said participating in the exchange would impose no additional costs on North Carolina taxpayers. “The costs are covered by us” at the federal level, said Fabien Levy, public affairs spokesman at the Department of Health and Human Services in Washington, D.C., the agency overseeing implementation of Obamacare. States opting to join the federal exchange “wouldn’t be on the hook for anything,” Levy said. Media reports and liberal advocacy groups suggested instead that

Critics of the Affordable Care Act, sometimes called Obamacare, say federal incentives for states to create exchanges are a “bait-and-switch” gambit, and that state control of the exchanges is only an “illusion.” (iStockphoto graphic)

not operating a state-based exchange would tap North Carolina’s General Fund. A report in the Raleigh News & Observer estimated the annual cost at $181 million. The story did not cite a source for that figure or explain what the expenses would be, leaving an implication that the money would come from state taxpayers. But the $181 million figure can be traced to an analysis done by the state Department of Insurance. It’s an estimate of the fees that would be assessed to private insurance companies, rather than state taxpayers. “Insurers would pay $181 million in fees to fund the operation of a federal exchange,” said Kerry Hall, spokeswoman for the Insurance Department. “The insurers would pass those costs on in some form to consumers. … It’s not state dollars.”

GOP leaders made it clear from the start of the session that they would reject a state exchange

Liberal Medicaid concerns State Rep. Verla Insko, D-Orange, amplified liberal concerns about the Medicaid provision of the bill. She called the measure “an attack on poor people” and a “shrinking middle class.” She attempted unsuccessfully to attach amendments to what she called “a very misguided bill” and to slow its progression to a floor vote by asking that it be re-referred to the House Insurance Committee. Under Obamacare, small business owners who have 50 or more workers will be required to pay health insurance for those employees or pay a fine, she said. Expanding Medicaid coverage would relieve those business owners of that burden while helping to create a healthier work force, she said.

“These are working families. They are not people who are not responsible,” Insko said. But they don’t earn enough to buy health insurance and are falling behind “through no fault of their own.” Newly eligible recipients would include some of the state’s underserved mentally ill population, she said. McCrory said an administrative review on the Medicaid issues that included discussions with the White House, other governors, health care providers, and legislative leaders concluded it is “abundantly clear that North Carolina is not ready to expand the Medicaid system, and that we should utilize a federal exchange.” Recent Medicaid audits show North Carolina Medicaid “is broken and not ready to expand without great risk to the taxpayers and to the delivery of existing services to those in need,” McCrory said. Long-term costs cannot be projected because of insufficient information from the federal government, he said, and the state failed to prepare for participation in Obamacare the past year by building “necessary and reliable systems to implement a state exchange.” And because of “ongoing political uncertainty of the federal budget deficit,” the state has no assurance the federal government would meet its matching fund promise for Medicaid expansion, McCrory said.

Scathing Medicaid audit Defending the decision not to pursue the federal health law reforms, House Speaker Thom Tillis said state Auditor Beth Wood, a “duly elected Democratic auditor, has said hundreds of millions of dollars have been wasted either through just outright wasteful practices and policies or through wasteful management” in Medicaid. “It’s fairly well-documented.” The present system needs to be fixed before it can be expanded, said Tillis, a Mecklenburg County Repub-

When she released her audit in January, Wood said one finding is that North Carolina spends 38 percent more — or $180 million — on Medicaid administrative costs than the average spent in nine peer states that were reviewed. Administrative costs eat up about 6 percent of North Carolina’s Medicaid program. Those costs averaged 4.5 percent in the nine states with similarly sized programs. Although the Division of Medical Assistance is the primary provider for Medicaid services, two-thirds of spending was done by 10 other divisions for which “there is no cost accountability,” Wood said. “While DMA is spending about half of its administrative costs on contracted services, we don’t really know how much other contracted services are being done by these other 10 divisions and whether or not they are properly tracking their costs,” Wood said. Without such monitoring safeguards, the state cannot properly budget Medicaid expenses or know when budgeted allocations have been exhausted. That leads to perennial major budget overruns, she said. The audit also raised red flags about possible legal problems. “We found that the division’s budget and developmental practices potentially violate state statutes that have been enacted to ensure agency and legislative accountability of these public expenditures,” Wood said. “We also found that the division clearly violated three directives from the General Assembly.” “I don’t want you to blame the auditor’s report” or the federal budget uncertainty for not approving Medicaid expansion and a state-run exchange, Insko said during committee debate. She said the $1.4 billion cost overruns cited in the audit included only $375 million in state funds; the balance was federal money. Although the audit cited systemic disarray throughout Medicaid, Insko said she’s been told those problems could be fixed before the year is out. She blamed the overrun on the General Assembly directing the agency to meet an unreasonable savings number. Rep. Beverly Earle, D-Mecklenburg, said the state Department of Health and Human Services typically has repaid the federal government for cost overages, and that shouldn’t be used as an excuse to limit coverage now. “If the problem is how the federal government operates,” sending North Carolina residents to a federal health exchange instead of a state-run system “seems like the opposite of what we should be doing,” said Rep. Nathan Baskerville, D-Vance. CJ


MARCH 2013 | CAROLINA JOURNAL

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From Page 1

State’s ‘Unjust Land Grab’ Attempt Aided in Court By Attorney General Continued from Page 1

18 decision by the Court of Appeals, which ruled against the State Board of Education and in favor of the family. However, the fight continues because Cooper’s office is trying to secure the property for the benefit of another state agency, the Department of Environment and Natural Resources, which would add the disputed property to the adjacent Hammocks Beach State Park, which DENR operates. The case is complex because DENR is not a party to the lawsuit. The centerpiece of the Appeals Court ruling was that on at least two occasions during the current dispute, the State Board of Education has claimed no interest in owning the property, and the board could not reverse its position and pursue the parcel. Cooper’s office kept the case alive by filing a Petition For Discretionary Review Jan. 23 with the N.C. Supreme Court. In his Feb. 4 response to the state’s petition, the family’s attorney, Charles Francis, referred to the state’s efforts as “an outrageous, unlawful, and unjust land grab.” CJ was unable to determine how soon the Supreme Court will decide whether to review the case. Former State Board of Education Chairman Bill Harrison told CJ that after the Appeals Court ruling, his executive committee met by phone the first week of January and decided not to pursue the matter. Harrison said he changed his position after talking with DENR officials at the insistence of an attorney working for Cooper. The board of education apparently discussed Hammocks Beach in a closed session Jan. 9 or 10 and decided to continue supporting Cooper’s

The section of the Hammocks Beach property in the foreground of this photo originally was part of a resort for blacks during days of segregation. (CJ file photo)

pursuit of the property for DENR. The board’s cooperation was necessary because it was the only state agency that was a party in the legal proceedings. Senior Deputy Attorney General James Gulick and Senior Deputy Attorney General Thomas Ziko are the primary attorneys for the state. Gulick is assigned to the Environmental Division of the AG’s office and works on matters affecting DENR. Ziko heads the Special Litigation Division that includes an Education Section deal-

ing with the State Board of Education. They convinced the state board to continue the fight with the understanding that if the board became the owner of the property, it would turn the land over to DENR to expand the adjacent Hammocks Beach State Park. The AG’s office and DENR officials would not discuss the case with CJ, saying they don’t comment on ongoing litigation. Documents obtained from DENR about the case provided some insight into the state’s position, but the correspondence from Gulick was redacted. A DENR spokesman told CJ that Gulick redacted information that he believed constituted confidential communications between a public body and its attorney. The Appeals Court’s December ruling stated that Superior Court Judge Carl Fox erred in 2010 when he appointed the state board as the trustee of the property. The Appeals Court instructed Fox to issue a new order conveying the property to the Hurst family. The AG’s petition asked the Supreme Court to review the Appeals Court decision, saying “there is enormous public interest in preserving the unique, undeveloped, and large coastal property at issue in this case.” The petition also stated that the case involves “legal principles of major significance” and “the decision of the Court of Appeals appears to be in conflict with decisions of [the Supreme] Court.” The Hursts contend that a 1950 deed involving their grandparents’ in-

heritance provides for the property to go to them as the legal heirs since the state twice has spurned the land. The property was part of a much larger tract that was set up in 1950 in a trust, known as Hammocks Beach Corp., for the purposes of developing and operating a beach resort for the exclusive use of African-American teachers and their families. The entire 10,000-acre property had been owned by Dr. William Sharpe, a New York surgeon who moved to Onslow County in 1917 and befriended John L. Hurst, a hunting guide and son of a slave, and Hurst’s wife Gertrude. The property included Bear Island, which eventually became the major component of Hammocks Beach State Park. After the 1964 Civil Rights Act outlawed discrimination based on race, the resort became less attractive to African-Americans, who had other vacation options. Hammocks Beach Corp. was unable to raise enough money to maintain the facility, and it fell into disrepair. The agreement with Sharpe stated that if Hammocks Beach Corp. could not maintain the property or uphold the original terms of the trust, then the State Board of Education would have the opportunity to acquire the land. If the board refused, it would revert to the Hurst and Sharpe heirs. In a 1987 consent agreement, the Sharpe family surrendered any future interest in the property and the State Board of Education renounced any interest in becoming a successor trustee because a government agency could not administer a segregated facility. Moreover, in 2007, the AG’s office expressly stated that the state had no interest in owning or controlling the property. After Fox’s 2010 order, however, Cooper’s lawyers changed course and initiated action to claim the property for the State Board of Education.

Conflicts of Interest Any real estate acquisition by the state needs the approval of the Council of State, consisting of Gov. Pat McCrory, Lt. Gov. Dan Forest, and the eight other statewide elected executive officials. Even though the issue was discussed during the administration of Gov. Bev Perdue, the council took no action on the property. Conflict of interest issues may arise with four council members. State Treasurer Janet Cowell and Superintendent of Public Instruction June Atkinson serve on the State Board of Education. Forest also serves on the board, even though the relevant actions relating to the Hammocks Beach property took place before he assumed office. Cooper and his attorneys already have staked out a position on the issue. CJ


PAGE CJ10 Campus Briefs

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.C. State University’s Union Activities Board caused a bit of a national media sensation in early February when it announced an event it planned to host called “Dirty Bingo.” Ostensibly for purposes of sex education, the prizes for the game included sex toys and sexually oriented literature and videos valued at $305, purchased with money from student fees. The event prompted a group of students to organize a protest of the event, but the event was called off before they got the chance. State gaming laws prohibit giving away prizes worth more than $10 without a license. T h e UAB did not have a license, so no prizes were given away, and the board changed the theme of the event. UNCChapel Hill officials have ramped up “sex education” efforts as well. In mid-February, the school announced that it would add 10 condom dispensers at various locations around campus, including the Student Union and Student Recreation Center. Duke University organized its own series of events in early February devoted to sexual issues. Called “One Sexy Week,” the program included lectures that were both theoretical and practical. On the theoretical side, the university hosted a screening of “The Purity Myth,” a video based on a polemical book of the same name by Jessica Valenti. Valenti argued, among other things, that virginity doesn’t actually exist, and emphasizing it in the mainstream culture leads to promiscuity. On the practical side, a lecture with an unprintable name about how to induce female pleasure attracted more than 200 people, according to organizers. A more sober-minded lecture made it on the program, too. Psychologist Gary Glass spoke about the psychological and emotional issues that drive the hookup culture. Glass offered tips for students to avoid the emotional damage that often follows caCJ sual sex. Compiled by Duke Cheston, a writer for the John W. Pope Center for Higher Education Policy.

HigHer education

MARCH 2013 | CAROLINA JOURNAL

UNC System Considers More Out-of-State Students By Duke Cheston Contributor

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RALEIGH

ould enrolling more out-ofstate students help finance the state’s university system, raise its national reputation, and spur the economy? Or would it be a slap in the face to state citizens who support the system with their taxes? State leaders have been wrangling with such questions. A proposal to raise the cap on out-of-state enrollees surfaced recently at the January meeting of the UNC Board of Governors. The UNC system currently limits the number of out-of-state freshmen that each university can enroll at 18 percent. The Board of Governors put the cap in place in 1986 and in 1994 started enforcing it with budget penalties for universities that went over the cap. For example, UNC-Chapel Hill was supposed to pay $335,000 in fiscal 2011 after it went over the limit by 24 students. That penalty later was cut because it was deemed too harsh in light of budget cuts. For some schools, the cap is irrelevant. At UNC-Pembroke, for example, only 3 percent of students who enrolled in 2012 were from out of state. Only 12 percent of UNC-Asheville’s freshmen were from out of state in the latest year reported by the College Board. But UNC-Chapel Hill has chafed under the limitation for years. A number of its peer institutions, not burdened by such a cap, enroll a much larger proportion of out-of-state students. For example, 29 percent of University of California at Berkeley freshmen, 33 percent of University of Virginia freshmen, and a whopping 43 percent of University of Michigan freshmen are from out of state. Those schools have an advantage in both revenues and in student selectivity. Tuition at UNC-Chapel Hill for out-of-state students is $28,250, nearly four times the $7,500 charged to instate students. In addition to receiving more tuition, the universities draw from a larger pool of applicants. But this time N.C. A&T State University is at the center of the debate. At the January meeting, Chancellor Harold Martin said that his university finds it especially difficult to find qualified students. As a historically black school that specializes in challenging fields like engineering, he’s looking for talented students in a talent pool that is already eagerly picked over. N.C. A&T went over the cap by a considerable amount this past fall, admitting 31.4 percent out-of-state students in its freshman class — going over the 18 percent limit by more than 50 percent. School officials insist it was just a fluke, the result of a changed enrollment process. Still, administrators at N.C. A&T

would like to see the cap raised. N.C. A&T has struggled to find enough qualified students from North Carolina. In 2002, each school in the UNC system set a 10-year goal for enrollment growth; after 10 years, N.C. A&T is about 5,000 students short of its goal, by far the furthest behind its goal of any UNC school. Wanda Lester, associate vice chancellor for academic affairs at N.C. A&T, told the Pope Center she supports raising the cap because it will improve both the quality of academics at UNC schools and the long-term economic outlook for the state. “I’m not saying there should be no limits,” she said, but a higher cap would be beneficial nonetheless. Proponents of increasing out-ofstate enrollment say it would benefit the state economy because more bright students would stick around after graduation, although it’s a difficult claim to verify. Proponents also say that it would not mean fewer spots for in-state students; the proposal would expand enrollment overall, keeping the number of in-state students the same and just increasing the number of out-of-state students allowed in. Unfortunately for N.C. A&T,

proposals to increase out-of-state enrollment have been floated before and they never got very far. For one thing, state taxpayers don’t like the idea of subsidizing outsiders. Even though out-of-state tuition is much higher than in-state tuition, it still doesn’t cover the cost of a UNC education. In 2009, UNC-CH spent $58,379 per student, according to federal data. Another objection is that allowing more students from outside the state would make it more difficult for North Carolina students to get into a “flagship” UNC campus such as Chapel Hill. This is perhaps the strongest argument among parents with collegeage children. “When you have children, you would certainly hope that you could get the best value for their education,” Irvin Roseman, a Board of Governors member from Wilmington, said in an interview All in all, a change in the undergraduate cap is unlikely right now. But if pressure continues to build, the isCJ sue will surface again. Duke Cheston is a writer for the John W. Pope Center for Higher Education Policy.


MARCH 2013 | CAROLINA JOURNAL

HigHer education

PAGE CJ11

Opinion

Competition Bringing Marketplace Mechanisms to Campuses

I

ncentives matter, whether someone is selling peanuts from a pushcart or selling his teaching of philosophy. If there is more profit in figuring out how to do something better than others and thereby reap greater gains, count on people behaving that way. Adam Smith, perhaps the most perceptive observer of human action of his time, pointed out from experience that incentives mattered to professors. At Scottish and English universities in the 18th century, professors in the main were paid directly with student fees, GEORGE while others were paid entirely by LEEF the university. In the former case, professors were diligent in their teaching, but in the latter, they tended to do their teaching in a “careless and slovenly manner.” In contemporary America, we overwhelmingly pay professors a salary under a contract with a college or university. That salary usually has no direct relationship with the diligence and effectiveness of their teaching. We get lots of badly taught courses. Markets have a way of breaking through barriers, however. Entrepreneurial people, including academics, always are looking for ways to profit from doing things better. Today’s higher education system has lots of potential for that. Consider the company StraighterLine, which has an online platform

rants, so will the called Professor new higher educaDirect. Professors tion market offer offer for-credit Issues students a range online courses to of choice in service students; thus far, in level — choice that 14 are doing so, Higher Education barely exists when in such fields as they enroll at a colhistory, accounting, lege today. business, psycholThe competiogy, and writing. tion-driven revoluThose courses tion in online education is bringing don’t cost much when compared with entrepreneurial thinking into a field even the least expensive “brick-andthat in many respects remains stuck mortar” college offerings. Straighterin the horse-and-buggy age. Students Line charges $49, and the professor will be able to customize their learncan set whatever price he wants to ing to suit their needs. above that. Competition keeps total Although a great deal of attenprices low. One professor, for example, tion has been lavished in the last year charges each student only $50 above on Massive Open Online Courses, the $49 base. perhaps the more Competiimportant trend is tion also affects toward what we the services the might call POCs professor offers. — Personalized Some are willing Online Courses. to ensure a great (I left out the deal of student “Open” because contact and students usually prompt response will have to pay to questions, something for while others may educational serchoose a lower vices they want.) service model. Another One Straightercompetitor in the online education Line professor promises students that market is Udemy. he will respond promptly to emailed Educators who offer their questions, offer online “office hours” courses on Udemy may or may not be for two hours per week, and create academics with university positions, supplemental tutorial videos in addibut they all have a passion to teach tion to regular course materials. about something. They can set their Just as the market offers hungry own prices. David Janzen is a Udemy people everything from the minimal seller, offering a course in computer service of fast-food drive-throughs to science for $89. the maximal service of fancy restauThe course is the same as his ba-

Competition brings entrepreneurial thinking to education

sic computer science course at California Polytechnic State University at San Luis Obispo, but there are no deadlines. In an email, he told me that he has had more than 500 students take his online course, although a smaller percentage of students complete it online than complete it when they take it on campus. The reason, he says, is that more of his online students lack the necessary discipline to do the assigned work. It’s too bad that so many students don’t have the discipline needed to complete an online course, but they’re only out $89. We don’t denounce sales of home exercise equipment just because many people lack the willpower to make themselves use it; similarly, we shouldn’t criticize online courses just because many students lack the discipline to complete them. Udemy courses don’t lead to college credits. Janzen informed me that no student who has taken his course has asked for a certificate to prove that he passed it. Evidently, students are pursuing the knowledge he offers simply because they think it’s valuable. That’s an encouraging sign. It is a bad habit Americans have gotten into that we often look askance at learning opportunities unless they’re “for credit.” The return of the free market in higher education will help break that habit, as people again learn for the sake of learning (as Adam Smith’s students did) and stop taking courses just because they need some credits. CJ George Leef is director of research for the John W. Pope Center for Higher Education Policy.


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MARCH MARCH 2013 2013 || CAROLINA CAROLINA JOURNAL JOURNAL

COMMENTARY COMMENTARY

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If It’s Broke, Fix it

Department Department of of Health Health and and Human Human ov. ov. Pat Pat McCrory McCrory and and the the Services. General GeneralAssembly Assembly talk talk about about Services. Senate Senate Bill Bill 44 wisely wisely calls calls for for no no aa broken broken North North Carolina. Carolina. Medicaid Medicaid expansion expansion in in North North CaroCaroThe The left left talks talks about about expanding expanding lina. ItIt has has passed passed both both chambers chambers of of government government entitlement entitlement programs. programs. II lina. the General GeneralAssembly Assembly and and at at press press suggest suggest we we fix fix what’s what’s broken broken before before the time time awaits awaits McCrory’s McCrory’s signature. signature. we we even even think think about about expanding. expanding. The The Earned Earned Income Income Tax Tax Credit Credit Let’s Let’s start start with with Medicaid Medicaid and and is is aa federal federal program program that that subsisubsithe the Earned Earned Income Income Tax Tax Credit. Credit. dizes dizes low-income low-income working working people people Medicaid Medicaid began began in in 1965 1965 as as an an by by refunding refunding the the taxes taxes they they have have entitlement entitlement program program and and serves serves as as paid paid during during the the year. year. North North CaroCarothe the nation’s nation’s primary primary health health insurinsurlina created created aa state-based state-based EITC EITC in in ance ance source source for for low-income low-income people. people. lina 2007 2007 to to piggyback piggyback with with the the federal federal States States provide provide aa share share of of the the fundfundprogram, program, offering offering 3.5 3.5 perpering ing and and manage manage their their cent cent of of the the federal federal credit. credit. own own programs. programs. Currently, Currently, North North Carolina Carolina is is one one of of one one in in 10 10 North North CarolinCarolin25 25 states states with with an an EITC. EITC. ians ians receive receive health health care care With With refundable refundable credits credits through through Medicaid. Medicaid. We We (as (as ours ours are), are), the the governgovernspend spend 15 15 percent percent of of our our ment ment often often “refunds” “refunds” General General Fund Fund budget budget — — more more money money than than reremore more than than $3 $3 billion billion — — on on cipients cipients paid paid in in taxes. taxes. The The Medicaid, Medicaid, and and itit is is the the General GeneralAssembly Assembly in in 2008 2008 fastest fastest growing growing part part of of the the increased increased the the state state EITC EITC state state budget. budget. to to 5 5 percent percent of of the the federal federal Under Under Obamacare, Obamacare, BECKI BECKI amount. amount. states states have have the the option option GRAY GRAY North North Carolina Carolina paid paid of of expanding expanding Medicaid Medicaid more more than than $110 $110 million million in in coverage coverage to to thousands thousands of of EITC EITC claims claims last last year, year, issuing issuing checks checks people people who who do do not not qualify. qualify.As As an an ranging ranging from from $225 $225 to to $400. $400.Almost Almost enticement, enticement, the the feds feds offer offer to to pay pay 63 63 percent percent of of EITC EITC claimants claimants get get most most of of the the costs costs for for the the first first few few their their money money early early with with aa refund refund ananyears. years. In In North North Carolina, Carolina, that that exexticipation ticipation loan, loan, which which carries carries aa fee fee pansion pansion would would allow allow an an additional additional ranging ranging from from 568,000 568,000 people people $65 $65 to to more more to to enroll enroll in in than than $115. $115. The The Medicaid, Medicaid, and and loan loan and and the the fee fee itit could could cost cost are are deducted deducted taxpayers taxpayers $3.1 $3.1 from from the the credit. credit. billion billion over over the the Moreover, Moreover, the the first first 10 10 years. years. An An expansion expansion IRS IRS estimates estimates that that nearly nearly of of that that size size calls calls one-third one-third of of for for careful careful conconEITC EITC claims claims are are sideration sideration even even fraudulent. fraudulent. ifif the the current current The The left left claims claims EITC EITC lifts lifts program program were were working working well. well. But But people people out out of of poverty. poverty. In In reality, reality, the the North North Carolina’s Carolina’s is is not. not. amount amount of of the the credit credit (particularly (particularly Two Two recent recent state state audits audits with with the the early early loan loan fee fee deducted) deducted) disclose disclose real real problems. problems. The The adminadminis is not not enough enough to to make make aa difference, difference, istrative istrative costs costs to to run run Medicaid Medicaid in in and and the the program program is is wrought wrought with with North North Carolina Carolina are are too too high. high. North North fraud. fraud. Carolina Carolina spends spends $180 $180 million million on on House House Bill Bill 82, 82, in in the the Senate Senate at at Medicaid Medicaid administrative administrative costs costs — — 38 38 press press time, time, would would sunset sunset the the state’s state’s percent percent more more than than in in comparable comparable EITC EITC in in 2014. 2014. states. states. Republicans Republicans have have been been acacThe The audit audit cites cites “insufficient “insufficient cused cused falsely falsely of of waging waging aa war war on on monitoring,” monitoring,” “inadequate “inadequate overoverthe the poor poor for for not not expanding expanding these these sight,” sight,” and and “consistently “consistently exceeded exceeded programs. programs. ItIt would would be be foolhardy foolhardy budgeted budgeted amounts” amounts” for for contracted contracted and and irresponsible irresponsible to to spend spend more more services, services, and and incomplete incomplete financial financial on on programs programs that that are are wrought wrought with with projections projections resulting resulting in in budget budget fraud, waste, waste, and and mismanagement. mismanagement. shortfalls shortfalls of of more more than than $153 $153 million. million. fraud, Let’s Let’s get get our our house house in in order order so so scant scant Cost Cost management management is is not not aa priority, priority, resources resources are are utilized utilized wisely wisely and and leading leading to to fraud. fraud. Hundreds Hundreds of of milmilthose those who who need need help help get get it. it. Wasting Wasting lions lions of of dollars dollars are are being being mismanmismanCJ CJ money money doesn’t doesn’t help help anyone. anyone. aged aged and and wasted. wasted.Another Another recent recent audit audit found found more more than than $580,000 $580,000 was was Becki Becki Gray Gray isis vice vice president president for for paid paid out out in in unapproved unapproved overtime overtime to to high-level high-level salaried salaried employees employees of of the the outreach outreach at at the the John John Locke Locke Foundation. Foundation.

Medicaid Medicaid is is the the fastest fastest growing growing part part of of the the state state budget budget

EDITORIAL EDITORIAL

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Educational Opportunities

ss this this issue issue went went to to press, press, the the General GeneralAssembly Assembly was was wrapwrapping ping up up Education Education Week, Week, an an occasion occasion for for lawmakers lawmakers to to discuss discuss school school reforms reforms with with superintendents, superintendents, principals, principals, and and teachers teachers from from across across North North Carolina. Carolina. These These conversations conversations are are imimportant, portant, but but what’s what’s more more encouragencouraging ing is is that that legislative legislative leaders leaders seem seem poised poised to to build build on on the the consequential consequential K-12 K-12 reforms reforms enacted enacted in in the the previous previous legislative legislative session. session. To To its its credit, credit, the the 2011-12 2011-12 General GeneralAssembly Assembly ended ended the the state’s state’s arbitrary arbitrary cap cap on on public public charter charter schools schools and and created created aa tuition tuition tax tax credit credit allowing allowing parents parents of of children children with with spespecial cial needs needs more more financial financial freedom freedom to to pursue pursue options options outside outside of of traditional traditional district district schools, schools, including including private private schools schools and and homeschooling. homeschooling. Additional Additional legislation legislation was was introintroduced duced but but did did not not pass pass that, that, among among other other things, things, would would have have ended ended teacher teacher tenure tenure and and created created aa tax-credit tax-credit scholarship scholarship program program allowing allowing busibusinesses nesses to to donate, donate, tax-free, tax-free, to to nonprofit nonprofit organizations organizations that that provide provide scholarscholarships ships to to low-income low-income students. students. These These proposals proposals should should be be the the starting starting point point for for more more extensive extensive rereforms. forms. That That agenda agenda should should include: include: •• Performance Performance pay pay for for teachers teachers and and — — ifif ending ending tenure tenure entirely entirely is is not not possible possible — — limiting limiting “career “career status” status” to to the the top-performing top-performing teachers. teachers. ••Additional Additional flexibility flexibility for for charcharter ter schools, schools, letting letting school school districts districts and and universities universities establish establish charter charter schools; schools; allowing allowing districts districts to to go go all-charter all-charter (as (as Winston-Salem/Forsyth Winston-Salem/Forsyth County County Schools Schools would would like like to to do); do); guaranteeguaranteeing ing full, full, per-pupil per-pupil funding funding for for charter charter schools, schools, as as the the law law requires; requires; permitpermitting ting charter charter operators operators to to gain gain access access to to capital capital funding; funding; and and letting letting nonprofit nonprofit and and for-profit for-profit virtual virtual charter charter schools schools

compete compete with with the the state’s state’s monopoly monopoly online online charter charter school. school. •• Expanded Expanded tax tax benefits benefits for for investments investments in in education. education. These These could could take take the the form form of of tax-free tax-free education education savings savings accounts, accounts, tax-credit tax-credit scholarscholarships, ships, or or refundable refundable tuition tuition tax tax credits, credits, for for starters. starters. North North Carolina Carolina public public schools schools are are not not starved starved for for funding. funding.A Arecent recent report report by by John John Locke Locke Foundation Foundation director director of of research research and and education education studies studies Terry Terry Stoops Stoops found found that that in in 2008, 2008, the the most most recent recent year year data data are are available, available, the the per-pupil per-pupil expenditure expenditure for for elementary elementary school school students students in in North North Carolina Carolina was was the the sixth-highest sixth-highest in in the the world world and and spending spending on on secondsecondary ary students students was was fifth-highest. fifth-highest. Even Even so, so, nations nations with with the the highest highest per-pupil per-pupil expenditures expenditures did did no no better better on on meameasures sures of of student student performance performance than than countries countries spending spending less. less. That That money money has has not not translated translated into into better better performance performance by by North North Carolina Carolina students. students. National NationalAssessAssessment ment of of Educational Educational Progress Progress test test results results show show fourth-grade fourth-grade and and eightheighthgrade grade reading reading scale scale scores scores were were higher higher in in 2002 2002 than than they they were were in in 2011. 2011. And And though though high-school high-school graduagraduation tion rates rates are are improving, improving, diplomas diplomas are are declining declining in in value. value. The The remediation remediation rate rate for for North North Carolina Carolina community community college college students students — — the the percentage percentage of of high-school high-school graduates graduates who who need need makeup makeup courses courses to to perform perform at at college college level level when when enrolling enrolling — — is is on on the the rise. rise. The The North North Carolina Carolina Constitution Constitution promises promises “a “a general general and and uniform uniform syssystem tem of of free free public public schools schools … … wherein wherein equal equal opportunities opportunities shall shall be be provided provided for for all all students.” students.” None None of of the the reforms reforms before before the the General GeneralAssembly Assembly would would undermine undermine that that basic basic guarantee, guarantee, and and any any would would improve improve those those opportuniopportunities ties for for aspiring aspiring youngsters. youngsters. CJ CJ


MARCH 2013 | CAROLINA JOURNAL EDITORIALS

COMMENTARY

A Freedom Agenda

Living up to our old license plate’s motto

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orth Carolina’s license plates used to say “First in Freedom” rather than “First in Flight.” So the John Locke Foundation chose the title First in Freedom for our justpublished book of policy ideas for the new administration in Raleigh. The “First in Freedom” license plate commemorated two events. In May 1775, a group of Mecklenburg County leaders met in Charlotte to fashion a response to escalating tensions with Britain. In a document later published as the Mecklenburg Resolves, they stated, “all laws and commissions confirmed by or derived from the authority of the king and Parliament are annulled and vacated, and the former civil constitution of these colonies for the present wholly suspended.” This was a courageous act of resistance against tyrannical government and deserves the veneration still evident on North Carolina’s state flag and state seal. By April 1776, political leaders met in Halifax to decide what North Carolina’s position should be at the upcoming Continental Congress. The resulting Halifax Resolves instructed the North Carolina delegation in Philadelphia to pursue formal independence from Britain — the first such decision in America. The date of the Halifax Resolves, April 12, is the other date honored on our seal and flag.

Now, in the early 21st century, North Carolinians face new challenges to their economic vitality, their families, their liberty, and their tradition of constitutional government. In First in Freedom, our colleagues in JLF’s Research Division offer the following action plan: • Replace North Carolina’s uncompetitive and unfair tax code with a new pro-growth system that targets consumption and encourages investment, business formation, and job creation. • Place stronger constitutional limits on budget growth and public debt. • Continue removing costly regulations that inhibit job creation and raise the cost of energy, food, medical care, and other goods and services. • Enhance North Carolina’s long-term rate of economic growth by investing more wisely in infrastructure and bringing more academic rigor, accountability, flexibility, competition, and parental choice to the delivery of educational services. • Reorganize the operating system of state government to reduce the number of Council of State and Cabinet agencies, sort out the state’s convoluted governance system for education, and promote competitive elections. In short, let’s be “First in Freedom” once more. CJ

Saying No Is a Start

Rejecting exchanges is N.C.’s due diligence

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orth Carolina Republicans long have opposed Obamacare. After Chief Justice John Roberts waffled on the constitutional question and President Obama won re-election, GOP leaders recognized that immediate repeal of the legislation was impossible. But that doesn’t mean they’ve accepted it as a permanent fixture of American life. Legislation rejecting the creation of a state-based insurance exchange under Obamacare was introduced. At press time, it was on the verge of becoming law. Due to Obamacare, parts of the private insurance market are about to blow up. It is likely that in a few months North Carolina health insurers will release eye-popping rate increases for 2014. In the small group and individual market, the proposal will be to hike rates 100 percent or more for some customers, and maybe half that for many customers. At the state level, conservative governors and lawmakers have had to

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learn that one reason the Obama administration desperately wants states to create insurance exchanges is that it will give voters multiple levels of government to blame for an unpopular policy likely to become even more unpopular. State officials also have had to learn that the Obama administration isn’t prepared to set up dozens of new federal exchanges this fall. By defaulting to a federally run exchange, they may well shield their state’s households and businesses from mandates and taxes, if current litigation by Oklahoma and other states is successful in the federal courts. None of this constitutes nullification. It constitutes North Carolina officials exercising their due diligence to put pressure on Congress to take remedial action. Repeal is impossible while Obama is president. But Congress may find it necessary to revisit key provisions of what soon will be revealed as an unworkable law. CJ

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Seasons of Change In North Carolina

ow is the winter of our the outcome, not the buildup. If the discontent. McCrory administration and the Or so said ShakeRepublican legislature enact much speare’s Richard III, a fictional of their agenda, it will take several villain who may share some reyears to evaluate the results. For semblance to the fellow just found example: buried under a parking lot in • If they enact conservative Leicester. The phrase opens the tax and regulatory reforms, will the play, as Richard proclaims that the economy become more competiwinter of discontent will be “made tive? Will North Carolina’s unemglorious summer by this sun of ployment rate and growth in perYork” — not a reference to capita income move closer the Yorkshire climate but to the regional average a metaphor for his brother over the next four years? Edward assuming the • If they enact throne of England. conservative education I’m far from an reforms based on higher expert on the Bard. But standards, greater acI’ve always thought this countability, and broader line to be one of his best, choice and competition, because of its ambiguity. will the next generation of In context, it is optimistic North Carolina students JOHN — a winter of discontent have higher levels of eduHOOD yielding to a summer of cational attainment and promise. But most people achievement? remember only the first line, which • If they reform Medicaid and sounds like a complaint. And Richother entitlement programs, will ard is, after all, far from satisfied rates of work force participation about his brother’s good fortune and self-sufficiency rise? Will rates and seeks to overthrow him. of government dependency and The current moment in North self-destructive behavior fall? Carolina politics contains a similar Political partisans often ambiguity. Weeks into their new ascribe the worst motives to their role as majority party, Republicans rivals because of their own ideosee a long, barren winter — not just logical certainty. They are sure their for the GOP but for the state as a ideas are the only ones supported whole — coming to an end. They by evidence and proven by experiexpect their new ideas on taxes, ence. So anyone with different ideas regulatory policy, education, and must have ulterior motives. entitlement reform to create new My own philosophical sysgrowth and opportunity in the comtem, however, teaches me that one ing months and years. can intend to do good and instead Democrats see no glorious do evil. Or one can intend only to summer ahead for North Carolina. pursue self-interest and, as an uninThey see those new ideas as a sigtended but welcome consequence, nificant departure from the state’s advance the interests of others. traditional public policies, which is I do not assume that those certainly the case. who favor higher taxes, bigger budThis is, at least in the short gets, and more governmental conterm, an unbridgeable partisan trol over our lives are “determined divide. Although the disagreement to prove a villain,” as Shakespeare need not be bitter, or expressed as has his Richard III admit. I assume personal attacks, it will be pasthey mean well but are mistaken. sionate. Republicans should exIt makes for better rebuttals, better pect every mistake or piece of bad moods, and better analysis. But it news to be elevated to the level of also requires patience. Shakespearean comedy or tragedy. The great political drama that Democrats should expect to fight is Republican rule in Raleigh has doggedly, to rally thousands of only just begun its first act. It’s a bit people to their cause — and lose. early to start writing reviews of it. CJ Republicans and conservatives did the same thing for many years. They survived. Democrats and liberals will, too. John Hood is president of the John The matter will be settled by Locke Foundation.


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MARCH 2013 | CAROLINA JOURNAL

EDITORIAL BRIEFS

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Government On the Dole

fter Hurricane Sandy, New York and New Jersey officials asked the federal government to cover at least 90 percent of cleanup costs. These calls for federal aid highlight the shift over the past four decades from state and local autonomy to federal subsidy control, writes Veronique de Rugy in Reason. In fiscal year 2011, the federal government doled out 1,724 grants-in-aid, totaling $515 billion, about 80 percent of which went to state and local governments. Nonprofits got the rest. This was the third-largest type of federal spending, behind only Social Security and defense. Federal grants made up 34.1 percent of state spending in 2011, up from 25.7 percent a decade earlier. “Grants are not merely a substantial part of the federal budget. They have become like a drug for the states,” says de Rugy. All this federal money has strings attached. Federal education grants, for example, allow bureaucrats in Washington to micromanage schools across the country, even though education is a state and local function. Politics also plays a huge role in obtaining grants, with a disproportionate amount of grant money finding its way to swing states. “Instead of lobbying for this massive growth in federal spending, states and local communities should reassert responsibility for most of their preparedness efforts,” writes de Rugy. “If police officers feel they need more equipment to do their jobs, or firefighters need more training and gym memberships, they should turn to their local and state officials for funding.“

Climate-change misdirection During his second inaugural address, President Obama highlighted the dangers of climate change. In doing so, the president described the threat — “devastating impact of raging fires, and crippling drought, and more powerful storms” in a manner that suggests he’s inclined toward poor policy solutions, writes Bjorn Lomborg of the Copenhagen Consensus Center in The Wall Street Journal. Lomborg notes that the scientific evidence doesn’t show a recent increase in the threats Obama highlighted. Wildfires are down 15 percent globally compared to 1950, their peak year. Nor has the incidence of drought increased. A study published in Nature last year found that “there has been little change in drought over the past 60 years.” The United Nations Climate Panel has come to much the same conclusion. Total (Accumulated Cyclone Energy) hurricane activity, meanwhile, is at its lowest level in 40 years. Exaggerating threats lead to misallocating resources. The European Union has chosen to confront the threat posed by hurricanes by spending hundreds of billions of dollars a year on green energy. Stricter building codes, ending subsidized flood insurance, and better infrastructure would do much more to minimize the threat hurricanes pose at far lower cost, Lomborg says. CJ

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What’s the Best ‘COLA’?

COLA war is going on. It hit the headlines a couple of months ago, has subsided, but is threatening to come back. It’s a war that not only can affect those who enjoy liquid refreshments, but potentially everyone! So is this a war between the big-name soda manufacturers? No. Instead, I’m referring to the best “cost-of-living-adjuster!” The front where the war will be waged is Social Security, and 90 percent of us are in the Social Security system. Thus, virtually all of us have some skin in this fight. But just what is this COLA war? It’s a debate about the best index to use to adjust future Social Security payments received by retirees. When Social Security was introduced in the 1930s, MICHAEL payments to retirees were not WALDEN changed periodically to keep up with the cost of living. But by the 1970s, price inflation started to be a big problem. Now, each year, retirees receiving Social Security get an increase in the amount they receive based on how some broad increase in average prices has changed. This annual adjustment in Social Security payments is a big help to retirees. Even small annual changes can accumulate to an impressive gain over time. For example, if a 3 percent increase is received annually for 10 years, then after a decade the Social Security recipient’s check will be over one-third (with compounding) higher. But what method is used to make the annual adjustments to Social Security payments? Currently the government uses its main inflation gauge — the Consumer Price Index, or CPI — to make these adjustments. The CPI tracks prices in a “market basket” of products and services bought by typical households. The prices are weighted by their relative importance to households’ overall spending — meaning, for example, gasoline gets a larger weight than a can of peas. Then the weighted prices are averaged and converted to an index for ease of comparison.

So the CPI sounds reasonable — right? Not everyone agrees. Households with retirees long have complained their spending patterns differ markedly from the general population’s due to the larger proportion of income seniors spend on medical care. This has led to calls for a special “senior citizen CPI” to adjust Social Security pensions. But the new COLA conflict is over a different issue. It has to do with how frequently the “market basket” is updated. The current CPI assumes what we buy changes infrequently, or approximately every two years. Of course, this is unrealistic. Therefore, a revised CPI, the “chained CPI,” has been developed. It is designed to reflect changes in household buying over time due to two factors: as new products are introduced or buying preferences change, and as we shift away from products and services with rising prices to products and services where prices have fallen or remained stable. It’s the last factor that has created the controversy. Say the price of gasoline jumps. The traditional CPI would assume we would continue buying the same gallons of gasoline, so the full impact of the gas price increase would be reflected in the CPI. Yet under the new chained CPI, there would be an assumption we would purchase slightly fewer gallons, so the “weight” in the gasoline component of the CPI wouldn’t be as large as with the traditional method. This means inflation with the chained CPI will be more modest, and so programs like Social Security will save money by letting pensions to retirees rise at a slower pace. Indeed, calculations suggest Social Security could save more than $100 billion over the next decade if the chained CPI is used to adjust future payments. This has led some to claim using the chained CPI for the Social Security COLA would mean a cut in payments for retirees. Others disagree, saying it’s merely a more realistic COLA that will extend the life of Social Security. So, pick your side in this COLA war! CJ Michael Walden is a Reynolds Distinguished Professor at North Carolina State University.


MARCH MARCH 2013 2013 || CAROLINA CAROLINA JOURNAL JOURNAL

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Tea Party Helps and Harms GOP

nn early early February, February, Karl Karl Rove, Rove, the the architect architect of of President President George George W. W. Bush’s Bush’s 2000 2000 and and 2004 2004 campaigns, campaigns, announced announced aa new new endeavor, endeavor, the the ConConservative servative Victory Victory Project, Project, designed designed to to recruit recruitand andsupport supportRepublican Republicancandicandidates datesfor forCongress. Congress. Many ManyTea TeaParty Partysupporters supportershave have interpreted interpreted the the initiative initiative as as an an effort effort to todefeat defeattheir theircancandidates didates in in party party primaries. primaries. Indeed, Indeed, some some see see itit as as the the opening salvo opening salvo in in aa Republican Republican civil civil war. President war. President Obama’s Obama’s State State of of the the Union Union address address was wasmet metwith withduelduelANDY ANDY ing ingrebuttals rebuttals— —the the TAYLOR TAYLOR formal formal opposition opposition party’s, party’s, given given by by Sen. Sen. Marco Marco Rubio Rubio of of Florida, Florida, and and one one by by the the Tea Tea Party Party presented presented by by Sen. Sen. Rand RandPaul Paulof ofKentucky. Kentucky. The The resulting resulting commotion commotion has has begged begged the the question: question: IsIs the the Tea Tea Party Party good good for for the the medium-to-long-term medium-to-long-term electoral electoral prospects prospects of of the the GOP? GOP? The The outcomes outcomesof ofrecent recentfederal federalelections electionsare are mixed. mixed. Tea Tea Party-backed Party-backed candidates candidates like likeSharron SharronAngle Angle(Nevada), (Nevada),Joe JoeMillMiller er (Alaska), (Alaska), and and Christine Christine O’Donnell O’Donnell (Delaware) (Delaware) in in 2010 2010 and and Todd Todd Akin Akin (Missouri) and Richard Mourdock (Missouri) and Richard Mourdock(In(Indiana) diana)in in2012 2012lost lostSenate Senategeneral generalelecelections tionsthey theyshould shouldhave havewon. won. But But in in 2010, 2010, Paul Paul won won one one the the party party well well could could have have lost, lost, and and “es“es-

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tablishment tablishmentcandidates” candidates”like likeRick RickBerg Berg (North (NorthDakota), Dakota),Denny DennyRehberg Rehberg(Mon(Montana), tana), Tommy Tommy Thompson Thompson (Wisconsin), (Wisconsin), and and Heather Heather Wilson Wilson (New (New Mexico) Mexico) failed failedto tograb grabseats seatsin in2012 2012that thatRepubRepublicans, licans,desperate desperateto totake takecontrol controlof ofthe the Senate, Senate,should shouldhave havecaptured. captured. Perhaps Perhaps aa better better approach approach isis to to ask ask what what aa Tea Tea Party-dominated Party-dominated GOP GOP would wouldlook looklike. like.What Whatwould wouldits itsposipositions tionson onpolicy policyissues issuesbe? be?What Whatwould would its itsgeneral generalreputation reputationbe belike? like? The TheTea TeaParty Partyhas hasmany manyparts parts— — including the Tea Party Express, including the Tea Party Express, Tea Tea Party PartyPatriots, Patriots,Tea TeaParty PartyNation, Nation,AmerAmericans for Prosperity, FreedomWorks, icans for Prosperity, FreedomWorks, and andaacaucus caucusof ofmembers membersof ofCongress. Congress. ItItisisheterogeneous heterogeneousand andamorphous. amorphous.ItIt is, is, however, however, clear clear on on economic economic issues issues and andplaces placesgreat greatemphasis emphasison onfiscal fiscalreresponsibility sponsibilityand andfree freemarkets. markets. These These positions positions undoubtedly undoubtedly help helpthe theGOP. GOP.Americans Americansrecently recentlyhave have been been in in aa populist populist mood, mood, and and polls polls show showthem themsupporting supportingadditional additionaltaxtaxes eson onwealthier wealthiercitizens. citizens.However, However,they they are are deeply deeply concerned concerned with with the the deficit, deficit, and and aa majority majority understands understands current current spending spendingon onentitlements entitlementsisisunsustainunsustainable able and and that that structural, structural, rather rather than than incremental, incremental,changes changesto toSocial SocialSecurity Security and andMedicare Medicareare arenecessary. necessary. Most Mostrealize realizeObama Obamaisisnot notserious serious enough about deficit reduction. enough about deficit reduction.AmeriAmericans cans still still want want limited limited government government — — 62 62 percent percent in in aa recent recent Rasmussen Rasmussen poll poll say saythey theyprefer preferaa“smaller “smallergovernment government with with fewer fewer services” services” to to aa “larger “larger govgovernment ernmentwith withmore moreservices.” services.”

Once Oncethey theystray strayfrom fromthis thisstrictly strictly economic economicargument, argument,however, however,Tea TeaParParty typrinciples principlessometimes sometimesdisplay displayfaulty faulty logic logic and and can can be be at at odds odds with with conserconservative vative orthodoxy. orthodoxy. Perhaps Perhaps the the most most egregious egregious example example emanates emanates from from the the first first item item on on the the important, important, unofficial unofficial Tea Tea Party Party manifesto manifesto called called the the “Con“Contract tractfrom fromAmerica” America”— —aacommitment commitment to to prevent prevent Congress Congress from from exercising exercising illegal illegal powers powers by by requiring requiring itit to to state state formally formally the the specific specific provision provision of of the the Constitution Constitutionthat thatallows allowsititto toenact enactleglegislation islationunder underconsideration. consideration.This Thisisisat at the heart of the “constitutional the heart of the “constitutionalconserconservatism” vatism” argument, argument, but but unfortunately unfortunately the Constitution is not the Constitution is not self-executing. self-executing. To Tohave haveforce, force,the thedocument documentrequires requiresaa human humanagent. agent. As As we we have have known known since since 1803 1803 when when Chief Chief Justice Justice John John Marshall Marshall penned pennedthe thedecision decisionin inMarbury Marburyv.v.MadMadison, ison,judges judgesprovide providethis thisservice. service.Many Many in inthe theTea TeaParty Partywould wouldhave haveCongress Congress seek seek explicit explicit permission permission from from the the courts courts before before itit could could act. act. SubordinaSubordination tion of of legislative legislative power power like like this this isis precisely precisely what what conservatives conservatives fought fought against againstin inthe the1960s 1960sand and1970s. 1970s.We Wegengenerally erally should should defer defer to to legislative legislative bodbodies, ies,not notpromote promotejudicial judicialactivism. activism. AATea TeaParty Partytakeover takeoveralso alsowould would alter alterthe thefundamental fundamentaltemperament temperamentof of the theRepublican RepublicanParty. Party.The TheGOP GOPisisused used to togoverning governingand, and,as asaaresult, result,has hasdeveldeveloped a character suitable to the oped a character suitable to theresponresponsibility. sibility. There There are are times times when when itit has has become become complacent complacent and and has has breached breached the the public public trust trust — — Watergate, Watergate, for for inin-

stance stance — — but but the the party party and and many many of of those thosewithin withinitithave haveaasensibility sensibilitysuited suited to tonational nationalpolitical politicalleadership. leadership.In Infact, fact, this thishas hasoften oftenbeen beenan anelectoral electoraladvanadvantage tage— —Democrats, Democrats,at atthe thetime timeviewed viewed as as impetuous impetuous and and irascible, irascible, furnished furnished aa stark stark contrast contrast to to Republicans Republicans in in the the 1970s 1970sand and1980s. 1980s. Some Somehigh-profile high-profileTea TeaParty Partypolipoliticians ticiansrail railagainst againstthis. this.They Theyrepudiate repudiate deliberation deliberationand anddebate debateand andbehave behaveas as ifif policy policy isis everything. everything. They They seem seem igignorant norantof ofprocess processand andthe theFramers’ Framers’syssystem of checks and balances. tem of checks and balances.They Theyseem seem not not to to understand understand Americans’ Americans’ desire desire for judicious leadership. for judicious leadership. II believe believe itit isis this thistemperament temperament— —more morethan thanits itspopositions sitions— —that thatexplains explainsthe theTea TeaParty’s Party’s fading fading popularity. popularity. In In November November 2010, 2010, 27 27percent percentof ofAmericans Americanssupported supportedthe the Tea TeaParty; Party;today todayonly only18 18percent percentdo. do. The The Tea Tea Party Party has has performed performed an an invaluable invaluable service service by by refocusing refocusing the the GOP GOP on on economic economic principles principles from from which which itit had had strayed. strayed. The The movement movement has has aa committed committed and and often often well-inwell-informed formed group group of of supporters. supporters. But But itit would wouldbe bewise wiseto tonote notethat thatsince sinceRonRonald aldReagan Reaganresurrected resurrectedit, it,the theRepubliRepublican canbrand brandhas hasstood stoodfor formore morethan thanjust just personal personal liberty liberty and and fiscal fiscal constraint. constraint. As As president, president, Reagan Reagan realized realized itit had had been been built built on on 126 126 years years of of responsible responsible leadership, leadership,national nationalstrength, strength,and andstrastraCJ tegic pragmatism as well. CJ tegic pragmatism as well. Andy AndyTaylor Taylorisisaaprofessor professorofofpolitical political science science atat the the School School ofof Public Public and and InterInternational nationalAffairs AffairsatatN.C. N.C.State StateUniversity. University.

Obama’s Imperial Presidency

everal everalyears yearsago, ago,IIwrote wrotethat that President PresidentObama Obamawanted wantedto to transform transformAmerica. America. With Withhis hisre-election re-electionand andhis hisfirstfirstterm termpolicy policy“victories” “victories”— —Obamacare, Obamacare, the thestimulus stimuluspackpackage, age,and andthe thebailbailouts outsof ofthe thebanks banks and andauto autoindusindustry try— —one onewould would have haveto toconclude conclude that thatfrom fromaapurely purely Machiavellian Machiavellianperperspective, spective,Obama Obama and andhis histeam teamare are transforming transforming MARC MARC America. America. ROTTERMAN ROTTERMAN And AndObama Obama isisoff to a fast off to a fast start startin inhis hissecond second term. term.During Duringthe theso-called so-called“fiscal “fiscalcliff cliff crisis,” crisis,”he hemanaged managedto toram ramthrough through Congress Congressaatax taxincrease increaseon onthose thosehe he deemed deemed“rich” “rich”while whilehe heand andhis hisallies allies maintained maintainedthey theywere wereprotecting protectingthe the middle middleclass. class. What WhatObama Obamaneglected neglectedto tomenmention tionwas wasthat, that,as aspart partof ofthe thefiscal fiscal cliff cliffdeal, deal,he heand andCongress Congressallowed allowedaa

temporary temporarycut cutin inpayroll payrolltaxes taxesfor forSoSocial cialSecurity Securityand andMedicare Medicareto toexpire, expire, and andthe themiddle middleclass classgot gotaapaycheck paycheck surprise surprisein inmid-January, mid-January,resulting resultingin in lower lowertake-home take-homepay. pay. The Thepayroll payrolltax taxincrease increasecomes comes at ataatime timewhen whenworkers’ workers’paychecks paychecksalalready readyare areunder underfire firefrom fromrising risinghealth health care carepremiums premiumsand andenergy energycosts. costs.For For many manyin inthe themiddle middleclass, class,the thepayroll payroll tax taxincrease increaseisisbig bigenough enoughto tooffset offsetany any recent recentpay payraise. raise. And Andmake makeno nomistake mistakeabout about it, what Obama can’t it, what Obama can’tget getdone donelegislegislatively lativelyin inCongress Congresshe hewill willattempt attempt to toaccomplish accomplishby byexecutive executiveorder orderor or recess recessappointment. appointment.Case Casein inpoint: point:the the Obama Obamaadministration’s administration’smemoranmemorandum dumfrom fromthe theDepartment Departmentof ofHomeHomeland Security last June telling land Security last June tellingUnited United States Statesimmigration immigrationofficials officialshow howthey they should should“enforce “enforcethe thenation’s nation’simmigraimmigration tionlaws lawsagainst againstcertain certainyoung youngpeople people who whowere werebrought broughtto tothis thiscountry countryas as children childrenand andknow knowonly onlythis thiscountry country as ashome.” home.” What Whatthe theObama Obamaadministraadministration tionmanaged managedto todo doby byexecutive executivefiat fiat was wasimplement implementmajor majorelements elementsof ofthe the

DREAM DREAMAct, Act,aabill billgiving givinglegal legalstatus status to toillegal illegalimmigrants immigrantswho whoentered entered the theUnited UnitedStates Statesas aschildren childrenand andare are nearing nearingadulthood. adulthood.Versions Versionsof ofthe the bill billhave havebeen beenintroduced introducedin inboth both Democratic Democraticand andRepublican-controlled Republican-controlled Congresses, Congresses,but butnever neverhad hadthe thevotes votesto to be bepassed passedinto intolaw. law. Obama Obamahimself himselfhas hasadmitted admitted that thathe hedoesn’t doesn’thave havethe theconstitutional constitutional authority authorityto toimplement implementthe theDREAM DREAM Act: Act:“The “Theidea ideaof ofdoing doingthings thingson onmy my own ownisisvery verytempting, tempting,IIpromise promiseyou, you, not notjust juston onimmigration immigrationreform. reform.But But that’s that’snot nothow howour oursystem systemworks. works. That’s That’snot nothow howour ourdemocracy democracyfuncfunctions,” tions,”he hetold toldaagroup groupof ofHispanic Hispanic activists activistsJuly July25, 25,2011. 2011. But Butwhen whenyou youget getpast pastthe the Obama rhetoric, the long Obama rhetoric, the longand andshort shortof of ititisisObama Obamaisistrying tryingto touse useexecutive executive orders ordersto toimplement implementlaws lawsthat thatConCongress gresshasn’t hasn’tpassed. passed. In Inother otherwords, words,the theObama Obama administration administrationisiscircumventing circumventing Congress Congressand, and,in inthe theopinion opinionof ofmany, many, the theConstitution. Constitution.Unfortunately, Unfortunately,this thisisis not notan anisolated isolatedincident incidentwhen whenititcomes comes to toObama’s Obama’sexecutive executivebranch branchpower power

grab. grab. Late Latelast lastyear, year,the theObama Obamaadadministration ministrationissued issuedwaivers waiversof ofthe theNo No Child ChildLeft LeftBehind BehindAct Actififstates stateswould would implement implementnational nationaleducation educationstanstandards dardsnot notauthorized authorizedby byCongress. Congress. “Congress “Congresshasn’t hasn’tbeen beenable ableto todo doit, it,so so IIwill,” will,”Obama Obamaannounced. announced. Then, Then,of ofcourse, course,there thereare arethe the president’s president’srecess recessappointments appointmentsto to his hisadministration administrationwhen whenthe theSenate Senate wasn’t wasn’tactually actuallyin inrecess recess— —some someof of which whichhave havebackfired. backfired. Recently, Recently,aathree-judge three-judgepanel panel ruled ruledthe therecess recessappointments appointmentsObama Obama made madeto tothe theNational NationalLabor LaborRelations Relations Board Boardare areillegal, illegal,leaving leavingthe theboard board without withoutaaquorum quorumto tolet letititoperate. operate. The Theruling rulingmust musthave havebeen beenaamajor major shock to Obama’s “imperial shock to Obama’s “imperialpresipresidency.” dency.” Will Willthis thissetback setbackstop stopObama’s Obama’s attempt attemptto toplace placemore morepower powerin inthe the executive executivebranch? branch? IIdoubt CJ doubtit. it. CJ Marc MarcRotterman Rottermanisisaasenior seniorfellow fellow atatthe theJohn JohnLocke LockeFoundation. Foundation.


PAGE CJ16

Order of The Loblolly Pine (a CJ Parody) By CJ staff

T

MARCH 2013 | CAROLINA JOURNAL

Parting SHot

h e t L f o o b r e lolly P d r O e ine h T is hereby bestowed upon

RALEIGH

he Order of the Long Leaf Pine, once a rare and prestigious award, has been so devalued by governors in the past decade that seemingly the only requirements are a pulse and the ability to give generously to campaign funds. That being the case, the Carolina Journal Parting Shot staff has created a more exclusive award, The Order of the Loblolly Pine. The award was named in honor of the tree that also is known as the North Carolina Pine, and which has provided jobs to the pulp and paper industry for decades. A mere 70,000 of the awards are being made available in this month’s CJ, and no more will be created. Simply print your name in the award certificate at right, date it, cut along the dotted line, and frame or laminate it for posterity. Impress your friends and neighbors, and feel comfort in the fact that only you and 69,999 others can be members of this select order. CJ

by the Carolina Journal Parting Shot staff for believing that a purely ceremonial award, suitable for framing, enhances the bestowee’s self-esteem, impresses business associates, and serves as a substitute for any and all similar honorary awards which the bestowee may have been denied. Know ye that the above-named recipient enjoys all the honors, rights, privileges, responsibilities, and ridicule thereunto appertaining. Be it known that the Great Seal of Parting Shot was affixed, and this worthy award conferred by my hand, on this date, ______________.

E. Geaux Stroker,Awards Chairman

The John Locke Foundation thanks the Event Sponsors who helped make our 23rd Anniversary Gala a success Title Sponsor

Reynolds American International

Executive Sponsors BB&T Blue Cross Blue Shield of N.C. CaptiveAire K.P.B. Corporation New Breed Logistics Inc.

Partner Sponsors

Christine Mele Baker and Marlene Mitchell Duke Energy DesignHammer Triangle Securities Wealth Management

Entrepreneur Sponsors Coca-Cola Bottling Co., Consolidated Carolina Strategy Group Hicks and Associates

(A financial advisory practice of Ameriprise Financial Services, Inc.)

Metro Productions NC Beer & Wine Wholesalers Parker Poe Adams & Bernstein, L.L. P. Golden Corral Corporation Hollingsworth, Avent, Averre & Purvis, PA McGuire Woods Consulting Hackley Endowment for the Study of Capitalism and Free Enterprise at Fayetteville State University Jason Deans and Associates Wells Fargo

The John Locke Foundation, 200 W. Morgan St., Suite 200, Raleigh, NC 27601 • (919) 828-3863


March 7, 2013 | Rhino Real Estate Page 37

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Page 38 Rhino Real Estate | March 7, 2013

NEW LISTINGS NEW LISTINGS NEW LISTINGS NEW LISTINGS RHI

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EXTRA! EXTRA! 215 Slate Drive, Gibsonville - 3BR/2BA townhome with 2 car garage, 1,449 sq. ft. Spacious plan with open kitchen and large pantry. Nice master suite with linen closet, 60” shower and large walk-in closet. Priced at $137,455. Call Jenny Blythe, at 336446-7465

1859 Longmont Dr, Kernersville – 3BR/2.5BA, 1908 sq. feet, with loft area. Enjoy a beautiful kitchen with ceramic backsplash and upgraded black kitchen appliances. Great incentives available!! Priced at $147,900. Call Sarah Draughn, at 336283-9809

OPEN HOUSES

1124 Northwood, Greensboro Addition Does Not Show on Tax Card. Bedroom and Bath added to back in 2000 making this a Spacious 3BR/2BA home. Priced to Sell and Waiting for Someone to Update with their Own Personal Touches. Great Location! Spacious Fenced Backyard. $162,000 Angie Wilkie 451-9519

312 Melbourne, Greensboro Brick Ranch convenient to shopping and restaurants. New Roof in 2011; Replacement Windows; Spacious Kitchen and Laundry; Detached Two Car Garage with Workshop; Spacious Lot. Master Shower is Handicap Accessible. $94,000 Angie Wilkie 451-9519

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The Waterfalls New community off Huffman Mill Rd, Burlington. Single Family Homes from the $160’s, Up to 2,957 sq. ft., Optional 3 car garage available, 10 Yr Quality Builders Warranty. New Model Home Open Daily. For exciting new incentives Call Scott Goodson 336-270-5230.

Meadow Valley New community off of Skeet Club Rd. in High Point, Homes from the $170’s, Up to 3,054 sq. ft., Optional 3 car garage available, 10 Yr Quality Builders Warranty. Model Home Open Daily. Call Linda Weaver 336-886-7804 for exciting new specials!

Stone Ridge - New community off Gibsonville-Ossipee Rd., Single Family Homes in the $130’s and One Level Townhomes from the $120’s, Community Pool, 10 Yr Quality Builders Warranty. Decorated Model Open Daily. Call Jenny Blythe for exciting new incentives at 336-446-7465

Weatherstone – Community located in Kernersville. Single Family homes priced from the $140’s and Townhomes priced from the upper $120’s, 10 Yr Quality Builders Warranty. Decorated Model Open Daily. Call Sarah Draughn for exciting new incentives at 336-529-5507

833 Cornwallis, Irving Park, 2-4 4 BR 2 ½ Bath. Located in the heart of Irving Park. This home offers many updates and 2 story addition with sunroom and den/library. Separate entrance to 2nd floor, which features 2 bedrooms, bath and another kitchen. Roof replaced recently along with AC units. Plenty of storage in floored attic space. Fresh paint and lovely landscaped yard. Great convenient location. Directions: North on Battleground, R(East) on Cornwallis $264,900. Bobbie Maynard 336-215-8017

3517 Rolling Road, High Point, NC 27265 – Great brick transitional home on large ¾ AC lot in quiet neighborhood. Home has been freshly painted. Kitchen opens to den and has lots of cabinets, large pantry, new flooring, and spacious breakfast room with built-ins. Fireplaces in living room and den both have gas logs. Lots of windows throughout. Pretty hardwood floors. Large master with two walk-in closets. Recent roof and HVAC. Great space in unfinished basement including oversized 2-car garage with garage door openers. Whole house generator. Great value!! $158,900 Melissa Greer 337-5233

6514 Cardinal Forest Ct, Greensboro, NC 27410 – Beautiful home in incredible condition at end of quiet cul-de-sac in desirable Cardinal area. Scenic views of woods from recent screened porch addition. Spacious rooms with open feel. Kitchen has attractive quartz countertops and bay window breakfast area and opens to large den with gas log fireplace. Deluxe master suite has vaulted ceiling and spacious bath. 5th bedroom also functions as bonus room. Exterior recently painted. Newer architectural roof. Tall crawl space with great storage. Great schools! Side-entry garage. $283,900 Melissa Greer 337-5233

5523 E. Rockingham Road, Greensboro, NC 27407 – Brick 1.5 story in desirable Sedgefield. Spacious rooms throughout. Beautiful hardwood floors, fireplaces in living room and den. Remodeled kitchen with stainless appliances and attractive granite countertops. Living room has gas FP and plantation shutters. Den has built-in desk and shelving. Master bath has whirlpool tub and separate shower. Huge second level bonus plus third bedroom. Circular drive and two-car attached carport. Unfinished basement with lots of potential and incredible space. Private lot! $289,900 Melissa Greer 337-5233

1791 Ridge Oaks Drive, Oak Ridge, 2-4 4BR 2.5BA Stunning home! Desirable nbhd & schools. Lots of updates, inside & out - granite countertops, flooring, FP surround, crown moldings & much more, Screened porch. (657656) Gloria Vaughan 9083639 $363,900 Hwy 68N past intersection 150, L - Case Ridge Dr into River Oaks, L- Ridge Oaks Dr.

5 Jacobs Way, Greensboro, 2-4 3BR 3BA Quality & space. Maple cabinets in kit, granite counters & hdwds. 3rd BR w/BA plus bonus rm on 2nd floor w/mega Storage. (53962) Sydney Collier 314-2175 $317,800 North on Elm, past Pisgah Church Rd., Elm becomes Bass Chapel Rd. Jacobs Way on left across from Northern Shores at Lake Jeanette. On right.

4785 Forest Oaks Dr, The Villas At Forest Oaks, Greensboro, 2-4 4BR 3BA On the 9th Fairway at Forest Oaks Country Club. Screened Porch, patio w/FP! Granite, Hardwd & Tile Floors. (650727) Tonja Schiltz 847-0016 $279,900 I-85 North, Exit 126/ Sanford, R 421-S, L Hagan Stone Rd., L Liberty., R Forest Oaks Dr on right across from country club.

3505 Chadford Place, Friendly Acres, Greensboro, 2-4 4BR 3.5BA This home has been updated paint, carpeting, roof, decking around the pool. Lots of privacy, yet located for city conveniences. Walk in attic & large rooms. (655635) Karen Weidt 545-4673 $260,000 Take Westridge to Friendly Acres Dr. Left on Chadford. House is on the left.

4413 Meeting House Drive, Quaker Run, Greensboro, 2-4 3BR 2.5BA Convenient location in GSO. LR, DR, kitchen w/ bkfst area, GR w/FP & skylights, spacious loft. MBR w/vaulted ceiling. Bkyd w/privacy fence & large deck. (664564) Linda Aldridge 250-2361 $217,000 New Garden Rd to Horse Pen Creek Rd, R- Quaker Run Dr., L- Meeting House Dr, on left.

5218 Creekwood Drive, Creekside Village, Archdale, 2-4 3BR 3BA Cape Cod style townhome. 1BR up, 1 on ML. Great open floor plan w/lg rooms. Freshly painted inside & new flooring in kitchen & sun room. Ready to move into. Oversized, composite deck. (662102) Carol Lowe 687-6298 $125,000 311 South. Right on Country Lane to Creekwood.

4205 Kildare Drive, Forest Hills, Greensboro, 2-4 4BR 2BA Now is a great time to buy this handy man’s special while rates are still low. Super sized LR, hardwood floors under carpet & in BRs. Fenced backyard. Close to schools. (657805) Karen Leath 558-8099 $57,500 From East Wendover, North on Huffine Mill Road, R- Kildare Dr. Home on left.

Hartman (Continued from page 20)

Farm has a charming, rustic feel. The builders in Hartman Farm are keeping that country feel by giving each of the homes a farmhouse theme, complete with spacious a front porch on which to relax on warm summer evenings. Children can enjoy the neighborhood playground while their parents work in the nearby community

garden. In this cooperative community, homeowners get together every year and decide what they are going to plant in the community garden. Then they combine their efforts in taking care of the garden and share what they’ve grown. Both Mills and R&K will have homes on display in the Spring Parade of Homes, but you don’t have to wait until

then to visit Hartman Farm or talk to the either builder. Don Mills can be reached at (336) 362-1777 or email at don@donmillsbuilders.com. His website is donmillsbuilders.com. R&K Investment Properties can be reached at (336) 6433503. The company website is randkinvestmentproperties.com. They can also be reached by email by filling

out the form under “Contact Us” on their website. And Realtor Anne Powell can be reached at (336) 327-3473, or at Ann. Powell@allentate.com. To get to Hartman Farm, go north on Church Street to Archergate Road, just south of NC 150. Turn east (right) on Archergate Road, and Hartman Farm will be on your left.

PM


March 7, 2013 | Rhino Real Estate Page 39

local

realtor directory

Angie Wilkie 336.451.9519

angie.wilkie@allentate.com

Bobbie Maynard 336.215.8017 bobbiemaynard@ number1expert.com

Jamie Harrelson 336.889.9192 jamiehouse@aol.com

Linda Faircloth 336.847.4970 Lfaircloth@ coldwellbanker.com

Melissa Newman 336.392.4161 www.Allentate.com/ MelissaNewman

Richard Dunn 336-370-6562

dunnrealestate1@gmail.com

Ann Powell 336.327.3473

ann.powell@allentate.com

Chidi Akwari 336.337.1927 Chidi@Akwari.Com

Jeff Smith 336.215.7880

jeff.smith@allentate.com

Linda Mitchell 336.345.4046

Michelle Porter 336.207.0515

michelle@michelleporter.com

Shannon Clement 336.681.7630

Betty Smith 336.451.4923

betty.smith@allentate.com

Dezra Fields 336-370-6562 sellitdez@gmail.com

Jim Duncan 336.509.1907

Melissa Greer 336.337.5233 melissa.greer@ pruyostandlittle.com

Pat Wegner 336.544.1750

Pat.Wegner@allentate.com

Sherry Stevenson 336.209.4040

sherry.stevenson@allentate.com


Page 40 Rhino Real Estate | March 7, 2013

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