Cover

• North Carolina faces a $468 million budget shortfall this fiscal year and $490 million next fiscal year. At the same time, lawmakers, Gov.-elect Mike Easley, and a Wake Count judge have proposed a host of new initiatives they want to fund. State budget writers say they will cut spending before raising taxes to fill the holes Page 1

North Carolina

• Gov. Mike Easley has a golden opportunity to put the brakes on unnecessary patronage in state government and reintroduce meritselection in many crucial jobs that now attract political notice. Page 3
• Agenda 2000 poll shows North Carolina voters are fiscally conservative and favor choice in education, health care. Page 4
• Municipal electricity providers suddenly withdraw their support of electric utility deregulation. Page 5
• State highway funding needs a boost to keep roads at minimum standards. Page 5
• A state board appears to have violated the state’s open meetings law. Page 5

Education

• A series of state court decisions will help to reshape North Carolina’s educational landscape for years to come. Page 6
• New policies help N.C. schools close the racial achievement gap Page 7
• Paige Holland comments on how the state identifies education excellence. Page 7
• Wake County leaders turn bond defeat into victory by building consensus. Page 8
• Community Learning Centers demonstrate value of collaboration. Page 9

Higher Education

• With a $3.1 billion bond issue for the UNC and community college systems approved by voters last fall, the university’s two largest campuses turn their focus on building prestige through campus construction and sports victories Page 10
• George Leef picks apart a new report on higher education in America. Page 11
• Universities are dropping SAT and ACT tests to recruit more minorities. Page 11
• Porn fills campus lectures. Page 12
• Elon College receives honor. Page 12
• Online education advances. Page 12
• Athlete graduation rates high at Duke, lower at UNC schools. Page 13

Local Government

• Voters elect some new faces to county commissions, with concern about taxes and spending topping the priority list. Page 14
• Bond packages, many to fund schools, pass all across the state. Page 15
• Tom Fetzer seeks innovation deep in the heart of e-Texas. Page 15
• One on one with Mecklenburg County Commissioner Jim Puckett. Page 16
• Taxes, privatization top the agenda in many N.C. communities. Page 17

Learning Curve

• Reviews of new books on Leo Strauss and guns in America. Page 18
• Reviews of an Orwell biography, Milton & Rose Friedman’s Free To Choose. Page 19

Opinion

• Editorials address state bonds, mandatory preschool, incentives for local tourism projects, electoral lessons for Gov. Mike Easley, and state controls on how local communities can grow. Page 20
• John Hood predicts that George W. Bush will be a Polk, not a Pyrrhus. Page 21
• The GOP has some hard lessons to learn from the 2000 election. Page 22
• Should America pay down its national debt? Page 23
• State highway funding must become a higher priority in Raleigh. Page 23

Parting Shot

• John Hood unveils the new Carolina Journal and plots its future course. Page 24