newsletter · •page2 • thelockeletter thousandsofnorthcarolinians standwithus....

• • THE LOCKE LETTER

Thousands of North Carolinians

Stand With Us.

But We’re Holding a Spot Just For You in theJohn Locke Foundation Freedom Clubs.

Energize your spirit. Engage your community.Ensure a better North Carolina.

The John Locke Foundation envisions a NorthCarolina overflowing with responsible citizens,strong families, and successful communitiescommitted to individual liberty, free markets, andlimited, constitutional government.

If you do, too, we invite you to join us. Become amember of your area North Carolina Freedom Clubwith a tax-deductible contribution of $100 or more.

For more information about membership levelsand benefits, contact Kristina Mitten Sanders at919-828-3876 or [email protected].

www.JohnLocke.org

SUMMER 2009 • •

In This IssueHow You Can Help ............2

N.C. Constitution andProperty Rights ..................4

A New GenerationAdvances Freedom andFree Markets ......................6

Freedom ClubMeetings .............................8

JLF WelcomesNew Faces ..........................9

What Do You Think?........10

New Research ..................11

You’re Invited ...................12

The John Locke Foundationhas promoted the princi-ples of competition, inno-

vation, personal freedom, andpersonal responsibility inNorth Carolina governmentfor nearly two decades. Afterspending so many years commis-sioning research, publishingCarolina Journal, hosting publicevents, and conducting JLF’sother programs and services,we’ve touched on a wide varietyof topics. CJTV, our newestonline venture, is another wayfor you to stay informed. See theCJTV feature below for all thisresource has to offer.

That’s part of our mission, after all. JLF needs to be the oneplace where public officials, journalists, scholars, activists, andinterested voters can take their questions and be sure of gettinga timely, relevant answer. But that doesn’t mean we lack apriority list. Some policy issues are more pressing than others.

Right now, it’s hard not to put North Carolina’s economicand fiscal problems at the top of the list. Facing big deficitsat the state and local levels, many politicians have concludedthat now is the time to raise taxes. They are wrong. Hikingincome, sales, or property taxes in the midst of a recessionis a sure way to hamper North Carolina’s economic recoveryand set off another round of boom-and-bust budgeting thatwill lead to future deficits.

JLF stands resolutely against tax hikes. We don’t think thatNorth Carolinians are keeping too much of their own moneyto spend or save. We think North Carolina politicians want tospend too much of other people’s money. While criticizing thetax proposals, JLF has also offered an alternative budget tobalance the state’s books and make government more efficientand competitive in the future.

Most of you strongly agree with our stance, according to arecent survey of JLF donors and supporters (see page 10for details). Thanks – and remember that it’s your financialsupport that makes it possible for us to fight against biggergovernment and higher taxes in Raleigh and acrossNorth Carolina.

We Stand Resolutely Against Tax Hikes

John HoodPresident

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The North Carolina Constitution

THE PANELISTS:

Dr. John DinanWake Forest UniversityPolitical Scientist andConstitutional Scholar

Emmett BoneyHaywoodNoted PropertyRights Lawyer

John TysonFormer North CarolinaCourt of Appeals Judge

Kieran ShanahanPrincipal at ShanahanLaw Group andFounder of the N.C.Property RightsCoalition

THE MODERATOR:

David CrabtreeWRAL TV

Q: Section 19 of the North CarolinaConstitution states, “No person shall betaken, imprisoned, de-seized of his free-hold liberties or privileges or outlawed orexiled or in any manner deprived of hislife, liberty, or property, but by the law ofthe land.” How does this section comparewith the protections that other states givetheir citizens?

Dinan:Well, North Carolina’s constitu-tional provision regarding property is highlyunusual. In fact it is unique among the 50states in declining to be any more specificthan that about the protections for proper-ty. If you look at the other 49 state constitu-tional provisions, a number of them arevery explicit; property may only be takenfor public use. The determination of thatquestion of whether it is public use shall bea judicial question rather than a legislativequestion. Just compensation must be pro-vided. Many of the other 49 state constitu-tions are very explicit about adding thosenet provisions. Now, the North CarolinaSupreme Court has read the law of the landclause as providing a number of those sameprotections. And the North Carolina legis-lature, by statute, has provided some protec-tions. But the fact remains that NorthCarolina’s property provision is unique indeclining to be as explicit as many of theother constitutions in the U.S.

Q: So in what ways can this state takea citizen’s [or a] business’s property?Does eminent domain fall into this?

Tyson: There are basically three ways thatthe state, or a governmental subdivision ofthe state, can take property. One is by anoutright physical occupation of the proper-ty. Every time that a governmental entityor person with power of condemnation hasa physical occupation of property, [it] is aper se taking. The second way that propertycan be taken is through a damage to theresidual. That is when only a portion or apartial taking occurs. The property ownerthen can bring an action to claim that the

remainder of his property has … suffereddamage over and above the amount thatwas physically taken. Then the third waythat the government can take property isthrough what is referred to as the regulatorytaking. That is without a physical occupa-tion, but that is when governmental regula-tion has deprived the owner of all reason-able economic use of the property. And ineach one of those three cases, just compen-sation or damages would be due to theproperty owner.

Q: We often hear discussion about publicpurpose and public use where land is con-cerned. Help us understand the difference.

Shanahan:Well, you can’t get far into adiscussion about property rights withoutencountering the most famous case, I think,in recent memory – the Kelo vs. NewLondon case. In that case, the Courtexpanded, I think, the definition of publicuse. The Fifth Amendment to the UnitedStates Constitution says that there will beno taking of private property but for publicuse, and upon payment of just compensa-tion. In the Kelo case, the Court expandedthat definition to include public purpose.I think we might all agree that public usemight include a road, for example, or apolice station. But in the Kelo case, we hadprivate property being taken from indivi-duals to be given to other private entitiesfor economic development purposes. TheSupreme Court said that was OK. In NorthCarolina, the case law has developed in away that has really used “public purpose”and “public use” in an interchangeable fash-ion. That really is the No. 1 assault rightnow on private property rights as enunciat-ed in the Constitution.

Q: What local laws protect or take awayan individual’s property rights?

Haywood: Well, local governments fre-quently limit what you can do with yourproperty. They do that by way of zoning andland use regulations. They do it by land-

Editor’s Note: Following are editedexcerpts of the second of three paneldiscussions in the North Carolina HistoryProject’s State of Our Constitution series,which is conducted in cooperation with theNorth Carolina Institute for ConstitutionalLaw. On June 8, 2009, four distinguishedexperts gathered at the State Capitol inRaleigh, North Carolina, for the event,moderated by David Crabtree of WRALTV. To view the entire event, visit:CarolinaJournal.tv

SUMMER 2009 • •

n and Your Property Rightsscape ordinances. They do it sometimes justby drawing a line on a map and showing thisis where we want a road to be. That canhave a devastating effect on someone’s prop-erty. The question becomes, has that regula-tion gone too far? As Judge Tyson said, a reg-ulatory taking can be a taking, but is has todestroy all economically viable use of theproperty. Anything short of that is morequestionable, and the courts have applied abalancing test, looking at the use that thegovernment – whether it is a sound, gooduse that the government wants to put to theproperty – counterbalancing that with thediminution, the reduction in value of theproperty that this regulation is going to causeto the property, because no doubt, zoningand other regulations can reduce someone’sproperty’s value.

Q: Are there state constitutionalprotections, and does federal law offerprotections to individual property ownersin North Carolina when the state wishesto seize property?

Dinan: Let me focus on a particular andcontentious issue involving takings. … Now,the U.S. Supreme Court, as has been noted,said in the Kelo decision in 2005, the federalConstitution will not be read to bar the tak-ing of private property for economic devel-opment purposes. So any protection that isgoing to come to individuals is going tocome through state constitutions or throughstate statutes. Now in the several years sincethe 2005 Kelo decision, eight states havetaken a look at their state constitutions andhave said, “Let’s amend the state constitu-tion and let’s provide tighter protection.” So,among these eight states that have amendedtheir state constitutional provisions, severalhave said explicitly, economic developmentshall not constitute public use. Or they havesaid, the determination of what constitutespublic use shall be a judicial question ratherthan a legislative question. That is, we willnot defer to a municipality or a legislature ifthey say we are taking it for public use. Wewill investigate that. North Carolina hasnot, so far, tightened its constitutional provi-sions as these other states have done post-Kelo. A constitutional amendment has beenproposed in the legislature. It has receivedsome support in the House. It has not so farreceived such support in the Senate. Therehave been some statutory tweakings, butright now, so far, North Carolina has nottightened its constitution as these otherstates have done.

Q: In what ways can local governmentscooperate with certain private interestswhen seizing an individual’s property? Andare there state constitutional provisionsagainst this?

Haywood: Often in order to get a projectapproved, a developer will have to, themunicipality will require the developer todonate land, to build roads, to widen a roadin front of their development, maybe todonate land for a greenway easement. …Those are called exactions. And the courtshave upheld those as long as they are rough-ly proportionate to the burden that thedevelopment will put on the roads and otherservices. But what I am seeing now is, some-times your municipalities are requiring whatare off-site improvements. In other words,they are asking the developers to build aroad. Or sometimes the developer needs asewer line and they say, well we can’t get oursewer line from A to B because we don’town the land that the sewer line will cross.Or, we don’t own all of the land that theroad will cross. And the municipalities aresaying, well, that’s OK. We’ll use our powerof condemnation. We will condemn yourneighbor’s property to enable this road to beput in. Now you’ll have to pay for it, or payfor most of it.

Q: Involuntary annexation and local lawscan threaten individuals’ property rights.In what ways are these laws a threat, andwhat does the state constitution say or notsay about this?

Shanahan:Well, unfortunately the stateconstitution says nothing directly about it,but implicitly I think … the same funda-mental notions of takings do apply. UnderNorth Carolina law and statute, there mustbe some sort of meaningful services deliveredfor there to be annexation. … The firstproblem with it is, those people who arebeing annexed don’t have a vote on whetheror not they are going to be annexed. Thatmakes us unusual from the rest of the coun-try. Secondly, oftentimes there are very littleor minimal services or value that is beingadded to the people who are being annexed.So it inherently is a problematic situation.So North Carolina requires – there arestatutes in place about services being provid-ed within a period of time. … So they [localmunicipalities] are always looking for newsources of revenue, and annexation happensto be one of their favorite ways of doing it.The unfortunate part, oftentimes, for people

who are being annexed – they don’t wantthe services, they don’t need the services,and there is nothing of value being providedto them.

Q: So how can the government condemnprivate property for the use of other pri-vate entities? What other ways can a localgovernment take away private property,abuse zoning laws, local laws?

Tyson: Under a strict reading of the FifthAmendment, which our Supreme Court hassaid is the functional equivalent of our stateconstitution, Article I, Section 19, no onewith condemnation powers should be able totake private property and give it to anotherprivate individual. … The problem comes inwhere you have a city or county or someother group acting as a proxy for a privateindividual. Emmett described earlier where adeveloper comes in and wants to build aproject and the city or county requires themto improve a road, extend a road, extendsewer or water, and the only way they can dothat is through another property owner’s pri-vate property, and the city ends up con-demning that property for that utility ease-ment or that road easement. I don’t thinkanyone here would question that is benefit-ing a private individual, even though it is apublic entity that is taking the property. Thesecond question that you asked is, in otherways, can a local government – we men-tioned regulatory takings. Again, they arenot coming onto your property, but they areputting restrictions on how you can use yourproperty. If the restrictions are to the pointthat you are deprived of all economic bene-fit, or uses of that property, then you as theproperty owner are entitled to just compen-sation. However, that has been a very strictcase. We have seen a situation where we’vehad billboard amortization ordinanceswhere billboard companies can use theirproperly permitted, legal-when-built proper-ty for seven more years, and then it goesaway.

www.northcarolinahistory.org

Want to Know More Aboutthe N.C. Constitution?See the back cover for

details of our next event.

A graduate studentin history at N.C.Central University,Adrienne is workingwith North CarolinaHistory Project DirectorTroy Kickler. The twoshare a common inter-est in the Civil War and

Reconstruction, and Troy has become hermentor. A future professor of history,Adrienne has researched and written exten-sively about the state’s eugenics program forthe History Project’s Web site, instilling herwith a desire to publish even more. Nothing,however, can replace her enthusiasm for theclassroom and sharing her love for history.Even though her work is focused on historyand not on public policy, Adrienne enjoysthe JLF atmosphere. “I’m excited to be hereand hear different points of view.”

THE FUTURE: “I’d like to seeeducation based on students, not on aset curriculum.”

A believer in classicalliberal thought, Alex ismajoring in economicsat Davidson College.His Koch SummerFellowship includesspending the summerat JLF. It’s an idealopportunity for a col-

lege senior who finds all policy areas inter-esting and the current political environmenttroubling. “Last fall we began to see thisurgency, this rush to implement policies thatI fear will end up with this country in a lotof trouble,” Alex says. He now has his eyefocused on the health care and energydebates, fearing that more governmentintervention is to come. Still, this EagleScout is optimistic that over time, peoplewill recoil over the negative consequencesof big government.

WORDS TO LIVE BY: “I havea moral conviction that people are betteroff making their own decisions and thatthey have natural rights.”

This self-described“kid who was alwaysreading books” is arising sophomore atGeorgetown University.Ben, a Raleigh native,can’t remember a timewhen he wasn’t inter-ested in conservative-

and libertarian ideas. Working at JLF allowshim to explore issues, government interven-tion, and politics. His research into theGolden LEAF Foundation, which receivesthe state’s payments from the multimillion-dollar tobacco master settlement, hasopened his eyes. “It’s an awful lot of cashthe General Assembly doesn’t have influ-ence over,” he concludes. For now Ben isundecided on a career, but it will likely bein the sphere of science, technology, andinternational affairs.

FACT VS. FICTION: “Even if youbelieve that climate change is a problem,cap and trade is so inefficient at solvingit. Unfortunately, there’s no basis foreconomic facts anymore in this debate.”

Laura’s internshipbegan last May whenshe immersed herself inpolicy research leadingup to the fall election,an experience she saysshe’ll always remember.Since then she’shelped execute eventsrelated to consumer-

driven health care and the role of the N.C.Constitution in taxation, property rights,and education. Laura is heading toCampbell University Law School afterearning a degree in international relationsand the classics from the University of St.Andrews in Scotland. She credits JLF VicePresident for Outreach Becki Gray for help-ing her grow professionally by expandingher knowledge of public policy and politics.

PET PEEVE: “Everyone’s OK withspending money when it’s not theirs.I would like to see that change.”

Sara grew up talkingabout politics withher grandfather, so it’sno surprise the risingsenior is majoringin government atCampbell University.This avid reader hasalways been drawn tothe debate over federal

policies, but as she began to read LockeFoundation reports, she developed an inter-est in economics and state issues. Much ofSara’s work has involved researching how

other states are faring with laws and regula-tions being considered by North Carolinalegislators. Politics, however, isn’t part ofher life plan just yet, although she wishesmore people would consider jumping in.“Yes, it’s idealistic, but if everyone was hon-est – if you somehow took the politics outof policy making – things would havebetter outcomes.”

PREDICTION: “I think the future ofconservatism is challenging – definitely anuphill battle – but I’m an optimist.”

As a political sciencemajor at DukeUniversity, Andrewis exposed to myriadpolicy views. On theadvice of a friend, heturned to JLF to furtherhis understanding ofconservative thoughtand North Carolina

policy and politics. Andrew, who grew up inDallas, is spending the summer investigatingcounty tax policies that officials claim –incorrectly – are “revenue neutral.” Andrew’slong-term interest is in intellectual propertylaw, but energy policy has also grabbed hisattention. “It’s really important that weunderstand more about the perceived energycrisis and what we can do for the futurewithout sacrificing prosperity.”

SOUND ADVICE: “We need totake advantage of the policies that arein everyone’s best interest and recognizethat capitalism does work.”


Adrienne Dunn

Alex Pitsinos

Ben Goldhaber

Laura GrayBarringer

Sara Riggins

Andrew Schreiber

North Carolinians are accustomed tointeracting with the John LockeFoundation through journalism and

Kory SwansonExecutive Vice President

A New Generation Advances

SUMMER 2009 • •

If you want to knowhow your city orschool district isspending money,ask Caitlin. She’sone of the peoplewho conducteddetailed researchfor JLF’s transparency

Web site: www.nctransparency.com.Education reform is the passion of thisLincolnton native who holds a politicalscience degree from UNC-Chapel Hill.She’s even involved in an educationresearch project through her Koch SummerFellowship. “The most important elementof reform is school choice,” she emphasizes.In the fall, Caitlin heads to graduate schoolat the University of Edinburgh and, thanksto her JLF experience, she’s expanded herlist of career options. “A think tank is nowdefinitely a possibility.”

THE CHALLENGE: “With the econo-my the way it is, there is a preference forgovernment intervention. It’s important forpeople my age to fight that in the future.”

At JLF, Jacob has seenthe economic theory hestudies at N.C. StateUniversity put intopractice – or ignored –by state legislators.Since he leans towardclassical liberal philoso-phy and is interested in

tax policy, he’s watched closely as effortssuch as film incentives have been adopted.Jacob, a talented musician who plays the

tuba in the Triangle Brass Band, also appre-ciates the intellectual freedom fostered atJLF. When asked what’s ahead for the con-servative movement considering the politi-cal climate, he shakes his head. “There isn’tmuch going in the right direction now,and it’s important to change that.”

CRYSTAL BALL: “I hope there will bea restructuring of the Republican Partytowards more of the original conservativeideas of the founders – more toward theclassical liberal school of thought.”

An admirer of PopeJohn Paul II, Marissahas for years been activein the social issues ofpolitics. She came toJLF to enhance herknowledge of econom-ics, fiscal issues, stategovernment, and thestate constitution.

Marissa’s gotten her wish. She’s worked on abroad selection of issues including education,contributory negligence, and local tax policy.As she looks ahead, this Hillsdale Collegestudent sees serious challenges for her gener-ation and seeks a return to the principles ofthe founders. “I think if they saw where weare right now, they would demand that mygeneration step up and instill some controlover our government.” Marissa is particularlythankful for the guidance the interns receivefrom Kory Swanson. “JLF is awesome.”

CHANGE SHE CAN BELIEVE IN:“Government needs to learn that it wascreated with limits, not rights.”

A libertarian studyingmath and economicsat Duke University,Hans worked in theresearch division lastyear, and this yearhe’s focusing on JLF’sdatabases. While he’seager to delve into

all policy issues, congressional proposalsfor government-run health care have hisattention. Hans hopes his peers are payingclose attention as well. “Young peopleneed to speak up and get involved,” saysthe rising junior. JLF has helped him dothat. “Before I came here, I really didn’tknow what went on at a think tank, butI’ve found it to be open and friendly anddefinitely worthwhile.”

WHAT MAKES YOUNG PEOPLETAKE NOTICE? “When they get jobsand have to pay taxes.”

Shelley grew up inPhoenix and is nowa graduate student ineconomics at N.C.State University. Shewas drawn to JLFbecause it reflectsher core beliefs andvalues: freedom,private property rights,

and personal responsibility. During herinternship she’s assisted JLF analysts bydigging into eminent domain policy,mental health issues, renewable energy,voter statistics, and more. Shelley saysher JLF responsibilities have deepened herinterest in economics and constitutionallaw – the fields in which she hopes to workone day. As she looks beyond school,Shelley hopes to make her parents proudby playing a role in bringing the countryback to its federalist roots, allowing statesto govern themselves as the people see fit.

THE FIGHT AHEAD: “We needto stand up for our values and makean effective, intellectual argumentwhy conservatism best upholds thefreedoms and liberties protected bythe Constitution.”

Caitlin McLean

Jacob Burgdorf

Marissa Farrell

Hans Kist

Shelley Gonzales

commentary, special events, mediaappearances, research reports, andlegislative testimony. Some may notrealize JLF nurtures an internship programled by executive vice president KorySwanson. On average, 20 college studentsa year spend a semester or the summerengaged in research, writing, and out-reach activities related to state and localgovernment public policy initiatives.

“One of our priorities is to identifyyoung people with an interest in thefree market,” explains Swanson. Mostinterns either hail from North Carolina orattend school in the state. This summer’s

group – featured on these pages –includes students from Davidson College,N.C. State, UNC-Chapel Hill, DukeUniversity, N.C. Central University,Hillsdale College, and Georgetown.“We give them a substantive experiencethat engages their intellect and sendsthem into the world ready, able, andexcited to share the ideas they encoun-tered while here,” he says.

JLF’s internship program is supportedby donors such as JLF board memberBruce Babcock. If you'd like tocontribute, contact Kory Swansonat [email protected].

s Freedom and Free Markets


3 Easy Ways to JoinVISA, Mastercard, American Express, and

Discover accepted

1. Visit http://johnlocke.org/support/ or send a note [email protected]

2. Call 1-866-JLF-INFO

3. Be our guest for one meeting. If you like what you seeand hear, you can join on site.

Whether in good economic times orbad, defenders of North Carolina’s publiceducation status quo push for morefunding. Rarely, however, do they focuson what the state’s growth in funding hasdelivered to students. That fact has notgone unnoticed by John Locke Foundationeducation policy analyst Terry Stoops, thefeatured speaker at upcoming FreedomClub meetings across North Carolina.

“We’ve piled on money and programs, but most kids are no betteroff, as the data clearly illustrates,” says Stoops. “Unfortunately,education is a high-stakes money game in which, all too often,the winners are education bureaucrats and their advocates andthe losers are students, parents, and taxpayers.”

Make plans now to attend your neighborhood Freedom Clubmeeting. Stoops will discuss long-term trends in educationalfunding, testing and student performance, and personnelgrowth. It’s a get-together you don’t want to miss.

Carolina FreedomClub BenefitsBronze Member - $100

• Participation in Club meetingsand activities

• Receipt of Carolina Journal andother John Locke Foundationpublications

Silver Member - $250All benefits of Bronze member, plus:

• Carolina Journal Radio on CDs• Invitations to special events

Gold Member - $500All benefits of Silver and Bronzemembers, plus:

• Invitations to special meetingswith the John LockeFoundation Headliner speakers

For the Children or For the System?

The Triangle Freedom ClubRaleigh, Durham, Chapel Hill, andNearby Cities and TownsWednesday, September 166:30 p.m. – 7:30 p.m.John Locke Foundation200 West Morgan Street, Suite 200, Raleigh

The Triad Freedom ClubWinston-Salem, Greensboro, Burlington, andNearby Cities and TownsMonday, September 216:30 p.m. – 7:30 p.m.Embassy Suites Hotel204 Centreport Drive, Greensboro

The Southeastern Freedom ClubWilmington, Jacksonville, Whiteville, andNearby Cities and TownsMonday, September 286:30 p.m. – 7:30 p.m.Northeast Regional Public Library1241 Military Cutoff Road, Wilmington

The Sandhills Freedom ClubFayetteville, Southern Pines, Pinehurst, andNearby Cities and Towns

Monday, October 126:30 p.m. – 7:30 p.m.Holiday Inn Bordeaux1707 Owen Drive, Fayetteville

The Down East Freedom ClubGreenville, Rocky Mount, Elizabeth City,and Nearby Cities and TownsTuesday, October 136:30 p.m. – 7:30 p.m.New Bern-Craven County Public Library400 Johnson Street, New Bern

The Western N.C. Freedom ClubAsheville, Hickory, Burnsville, andNearby Cities and TownsMonday, October 196:30 p.m. – 7:30 p.m.Asheville Renaissance HotelOne Thomas Wolfe Plaza, Asheville

The Piedmont Freedom ClubCharlotte, Gastonia, Concord, andNearby Cities and TownsTuesday, October 206:30 p.m. – 7:30 p.m.Monroe Hampton Inn2368 Roland Drive, Monroe

SAVE THE DATE!

Join Us to Discuss Public Education’s Broken Promises

Terry StoopsEducation Policy

Analyst

SUMMER 2009 • •

New Faces, New Voices for Freedom at JLF

Kristina Mitten Sandersjoined the John LockeFoundation as Director

of Advancement in January2009. In her role at JLF,Kristina manages multipledevelopment initiativesincluding the CarolinaFreedom Club programs;year-round direct mailprojects; annual, major, andcorporate giving opportunities;and donor relations.

Kristina holds a Bachelorof Science degree in Communication Studies from theUniversity of Indianapolis, Master’s in PhilanthropicStudies from Indiana University, and a Certificate in FundRaising Management from The Center of Philanthropy atIndiana University.

Kristina began her career as Campaign Manager for theLeukemia and Lymphoma Society and has served asDirector of Development for Walther Cancer Institute,Director of the Annual Fund at Carolina Ballet, and, mostrecently, Executive Director of Community Music School.

A volunteer in the local community, Kristina serves asPublic Policy Co-Chair for the North Carolina TriangleAffiliate of Komen for the Cure and is an active BoardMember of Pine Cone, Piedmont Council of TraditionalMusic. As a descendant of Oliver Wolcottt – signer ofthe Declaration of Independence and the Articles ofConfederation – Kristina honors her family heritage byserving as an officer of the Henry Wolcott Foundation.

Rick couldn’t be happierto be back in Carolina,and JLF couldn’t be

happier to have him on board.Following more than twodecades as a journalist at majorpublications – including Reasonmagazine and the RockyMountain News – the UNC-Chapel Hill graduate has takenthe helm of Carolina Journalas managing editor. His returnteams him once again withfellow journalist John Hood,whom he first met in the

mid-1980s when the two were colleagues at The CarolinaCritic, the student newspaper Hood founded.

Times have certainly changed during Rick’s journalismcareer. He sees today’s turbulent times for traditional papersas an opportunity for organizations like JLF to develop newsfranchises that fill the growing demand for news andcommentary about public policy, politics, and state andlocal government. Coverage of traditional issues and theimpact of government on citizens will continue to be a CJmainstay, he says, but Rick also expects to devote morespace to environmental issues. He’s already noticed thatNorth Carolinians are engaged and concerned aboutgovernment’s growing regulatory footprint on propertyrights, building codes, and development, for example.Based on recent events in the state, Rick also expects toinvest more resources into investigating and writing aboutpublic corruption and political gamesmanship. “We’readept at turning over the rocks and doing the legwork,”he says. “That won’t change.”

Joyce is a program associateat JLF, where she workswith Kristina Mitten Sanders

on outreach programs anddevelopment initiatives. Sheis also a member of theWashington D.C.-based KochAssociate Program, whichteaches free market-basedtechniques as a way to operatenonprofit organizations andensure their growth andprosperity.

Joyce, a Raleigh native, is putting her communicationsbackground to use working on new initiatives aimedat engaging younger conservatives with JLF’s idealsand programs.

Prior to settling in at JLF, Joyce was an associate at Greenerand Hook LLC, a strategic communications firm with anemphasis in public affairs groups and Republican politicalclients. Her impressive record also includes tenure withformer Sen. Elizabeth Dole and the Civitas Institute. Shegraduated from the University of North Carolina at ChapelHill with degrees in Journalism and Mass Communicationand Political Science.

Kristina MittenSanders

Director of Advancement

Rick HendersonManaging EditorCarolina Journal

Joyce PopeProgram Associate


What’s On Your Mind?

HEALTHCAREQ: Is the best way toimprove access to health

care for the government to expandMedicare, Medicaid, or othertaxpayer-funded programs?A: Yes 12.4%

No 67.8%Not sure 19.8%

Q: Do patients and their doctorshave enough control over healthcare decisions?A: Yes 28.7%


STATE GOVERNMENTQ: The North Carolina

legislature now faces a state budget deficitfor the coming year approaching $3billion. How should they close the gap?A: Increase state taxes 1.3%

Reduce state spending 95.5%Not sure 3.2%

Q: Some state officials are hopingthat Congress will bail out stategovernment. Do you think it’s a goodidea to increase the federal debt bya quarter of a trillion dollars to bailout state governments?A: Yes 1.9%


Q: In general, do you favor a largergovernment with higher taxes thatpay for more public services, or doyou favor a smaller governmentwith lower taxes that pay for fewerpublic services?

A: Larger government 1.5%Smaller government 94.7%Not sure 3.8%

TAXATIONQ: Is it generally a goodidea for local governments

to raise taxes on meals, hotels, or retailsales to fund projects such as conventioncenters and sports arenas?A: Yes 13.2%


Q: Which kind of state or local taxationdo you hate the most?A: (#1 = most hated, #4 = least hated)

1. Income Tax2. Property Tax3. Gas Tax4. Sales Tax

Q: Should the state raise taxes on motorfuels or cars to pay for more road work?A: Yes 12.3%


EDUCATIONQ: What grade would you give North Ca-rolina’s public schools for effectiveness?A: A 1.9%

B 17.3%C 41.6%D 26.9%F 12.4%

Q: Should parents have more controlover where their children go to school?A: Yes 87.4%


Q: Do you think parents should beable to take a tax deduction for themoney they save or spend for theirchildren’s education, from preschoolthrough college?A: Yes 66.6%


Q: North Carolina currently allows only100 charter schools to operate at a time.Should the state legislature get rid of thisstatewide cap on charter schools?

A: Yes 75.4%No 8.0%Not sure 16.5%

TRANSPORTATIONQ: North Carolina has

a growing problem with traffic congestionas well as hundreds of roads and bridgesin disrepair. Do you think state govern-ment has been spending our transporta-tion dollars effectively?A: Yes 3.8%


Q: Should those who ride buses orrail transit pay at least half of theoperating costs?A: Yes 62.4%


LOCAL GOVERNMENTQ: Should North Carolinacities and towns be able to

annex neighborhoods into their limits andimpose property taxes on them withoutallowing the affected residents to vote onthe annexation?A: Yes 3.8%


Q: Should state and local governments inNorth Carolina be able to use their powerof eminent domain – of taking privateproperty without the consent of theowner – in order to give the property toa business for “economic development”?A: Yes 0.9%


#1TOWN

We Asked, You AnsweredThank you to the hundreds of Locke Foundation supporters who assessed a range of issues facing North Carolina.

For free-market answers to these policy issues, visit www.JohnLocke.org, www.CarolinaJournal.com, and CarolinaJournal.tv.

SUMMER 2009 • •

Why North Carolina Should Not Build High-Speed Rail (Policy Report by Randal O’Toole, senior fellow at theCato Institute) In June, the Federal Railroad Administration announced its criteria for states to apply for high-speed railgrants out of the $8 billion in stimulus funds allocated to the effort. Yet the FRA has no estimates of how much high-speedrail will ultimately cost, who will ride it, who will pay for it, and whether the benefits can justify the costs. A realistic reviewshows that high-speed rail will be extremely costly and will add little to American mobility or environmental quality.

The Can-Do Budget: The Impossible Takes a Little Longer (Spotlight #374 by JLF Fiscal Policy Analyst JoeColetti) State budget negotiators could scrap proposed tax and fee increases while still avoiding drastic budget cuts. TheCan-Do budget would redirect revenues from the Tobacco Master Settlement to state government’s General Fund,eliminate $125 million in nonteaching centers in the University of North Carolina system, remove corporate welfareprograms such as the N.C. Biotechnology Center and Job Development Investment Grants, and tax carve-outs like therecently approved tax break for Apple Computer.

Building a Case for School Choice: Initial Results from a Survey of North Carolina’s Private Schools(Policy Report by JLF Education Policy Analyst Terry Stoops) A $5,000 scholarship would cover the yearly tuition of theaverage private elementary day school in North Carolina, while $6,000 would take care of average high school tuition.Those are two key facts collected in this policy report, which aimed to gather and analyze data on private schools thatgenerally have not been available to the public. Questions covered academics, the student population, personnel,finances, and private school leaders’ attitudes about school choice.

Tax Reform in North Carolina (Policy Report by JLF Vice President for Research Roy Cordato) North Carolina’s systemof taxation aggressively interferes with individual liberty and retards economic growth. It does this by using the tax systemto reward some activities and penalize others; by placing multiple layers of taxation on saving, investment, and entrepreneur-ship; and by promoting forms of taxation, the best example being the corporate income tax, that are completely hidden fromthose who pay. Because taxation inherently interferes with both personal freedom and economic decision making, policy-makers need to be vigilant about not only how much revenue is being generated but also how those revenues are collected.

City and County Issue Guide 2009 (Policy Report by JLF Director of Research and Local Government AnalystMichael Sanera) Policymakers in the many local governments of North Carolina face a host of important challenges. Thisissue guide offers solutions to problems that confront North Carolinians at municipal and county levels. The commonthread in these recommendations is freedom. By increasing individual freedom, local governments can foster the prosperityof all North Carolinians and keep open avenues to innovative solutions from enterprising citizens.

Salisbury’s Fiber-Optic Cable System: Another Corporate Welfare Project Paid for by AverageTaxpayers (Policy Report by JLF Director of Research and Local Government Analyst Michael Sanera and JLF Intern KatieBethune) Salisbury’s $30 million fiber-optic network for Internet, phone, and television service is scheduled to be completein mid-2010. It will be available initially through 217 miles of fiber-optic cable connecting 14,000 homes and businesses.The city is using 20-year bonds to pay for the system, but the average residential customer gains little from the system.

For copies, visit www.JohnLocke.org, or call 1-866-JLF-INFO.

NEW RESEARCH


200 W. MORGAN STREET, #200RALEIGH, NC 27601

NON-PROFIT ORG.U.S. POSTAGE

PAIDRALEIGH, NCPERMIT #1766

Coming to North Carolina in OctoberSave Your Seats Now

Analyst and AuthorMichael Barone

Wednesday, October 7

Noon

Hilton North Raleigh

Author and ColumnistCal Thomas

Thursday, October 8

Noon

Benton Convention CenterWinston-Salem

For details and to register, visit www.JohnLocke.org/events. Or, call 1-866-JLF-INFO.

Cal Thomas

The North Carolina Constitution and Education

Thursday, October 8

Reception 5 p.m., Panel Discussion 6:30 p.m.

Hedrick Little Theatre, Catawba College, Salisbury

Michael Barone

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