Cover

• North Carolina has spent the past 15 years pursuing economic development through an “interventionist” model. But that model is being increasingly challenged by those who prefer a “competition” model. Gov. Mike Easley must choose which model will shape the state’s economic development policy in the next four years. Page 1

North Carolina

• The Department of Commerce wants the state to create an economic “incentive” program for tourism projects. Page 3
• Some lawmakers want the state to subsidize enterprises that do business with the Department of Defense. Page 3
• Redistricting battles across the country are likely to be messy this year but also less tilted towards Democratic gains. Page 4
• The state’s cap on independent public schools is attacked as the State Board of Education approves new charters. Page 5
• Locke Foundation researcher recommends state budget savings and warns of hidden tax hikes. Page 5

Education

• Higher expectations for all public school students create hope and anxiety about those below grade level. Page 6
• Mike Ward reveals a new plan to help low-performing schools meet state expectations. Page 7
• Paige Holland profiles an organization that wants to return educational control to parents. Page 7
• Teacher turnover may not be as big a problem as some say, according to the state’s own data. Page 8
• A Michigan charter school turns one skeptic into a believer in the power and the promise of school choice. Page 9

Higher Education

• St. Andrews Presbyterian College in Laurinburg drops tuition to compete with UNC schools. Page 10
• North Carolina Wesleyan College in Rocky Mount reaps benefits of 1996 tuition cut. Page 10
• Textbook critic gains reputation for his adherence to high standards. Page 11
• George Leef asks if independent higher education can survive in N.C. under the current model for state subsidy. Page 11
• Course of the month teaches power feminism. Page 12
• UNC seeks more student aid and higher salaries. Page 12
• Bush nominee Linda Chavez on racial preferences in North Carolina. Page 13

Local Government

• Smart Growth collides with planned Raleigh arts institute. Page 14
• Smart Growth Commission wants state controls over land use. Page 15
• Tom Fetzer questions why local leaders keep making incentive deals. Page 15
• One on one with Nathan Ramsay, newly elected chairman of the Buncombe County Commission. Page 16
• Arenas, growth controls, annexation, and new taxes make the local agenda. Page 17

Learning Curve

• Reviews of The Road to Serfdom by F.A. Hayek and Government Works by Milton Esman. Page 18
• Reviews of books on Ronald Reagan and technology in higher education. Page 19

Opinion

• Editorials address a state lottery, electricity deregulation, school choice, and Smart Growth. Page 20
• John Hood rips the media for uncritically accepting a flawed report. Page 21
• Roy Cordato says George W. Bush’s tax cuts are needed. Page 22
• Regression, progression, and who gets soaked by taxes. Page 23

Parting Shot

• John Hood announces his conversion to the cause of regulating those “precious polity fluids.” Page 24