Cover

• Charlotte has, for the fifth year in a row, shown up in the John Locke Foundation’s By The Numbers report with the highest per-capita tax burden of cities in North Carolina. But that isn’t stopping public officials from raising it more to pay for arts projects. Page 1

North Carolina

• If a 6th U.S. Circuit Court of Appeals decision that disallows certain Ohio tax breaks withstands possible Supreme Court scrutiny, incentives such as those offered by North Carolina to Dell Corp. would likely be struck down as well, according to a law professor whose legal theories formed the basis for the case. Page 4
• A natural-gas pipeline project in northeastern North Carolina, built with the help of taxpayer-backed bonds, is hemorrhaging money and now its managers want customers all over the state to cover the losses. Page 5

Education

• Despite the national trend showing a sharp decrease, school violence in North Carolina has increased over the past year. Page 6
• The SOS was heard loud and clear as parents and educators banded together in the grass-roots movement “save our summers,” successfully establishing a new law mandating the start of classes be pushed back by at least two weeks in all 115 school districts throughout North Carolina. Page 8
• National homeschooling statistics are consistent with the growth trend in North Carolina, where the Department of Non-Public Instruction reports a growth rate of 48 percent in the last five years, or an average of about 10 percent per year. Page 9

Higher Education

• Now they can be revealed: The top 10 nuttiest campus events in North Carolina higher education in 2004.Page 12
• In November, the UNC Board of Governors approved a budget recommendation of $5.2 billion for the 2005-07 biennium — 28 percent more than the system’s current appropriation. Page 12

Local Government

• Cities and counties searching for ways to fund ever-increasing demands for public services are looking beyond local revenue sources such as property tax, sales tax, and fees, frequently turning to federal grants to supplement their budgets. Page 14
• North Carolina counties and municipalities collected about a combined $50 more per person in taxes and fees from its citizens in fiscal 2002-03 compared to the previous year, according to the John Locke Foundation’s yearly analysis of local government revenue collections. Page 15
• Chad Adams says now that local governments have tax increment financing, they will use it in big numbers.Page 15
• An interview with Wake County Board of Elections director Cherie Poucher. Page 17

Learning Curve

• A review of the book Culture War? The Myth of a Polarized America by Morris P. Fiorina. Page 18
• Reviews ofI’m the Teacher, You’re the Student by Patrick Allitt, and Cracking the Code: The Fascinating Truth About Taxation in America by Peter Hendrickson. Page 19

Opinion

• An editorial advocating for an effective Taxpayers’ Bill of Rights for North Carolina. Page 20
• Editorials on the state of North Carolina’s economy and (sigh) a potential voter referendum for a lottery.Page 21
• Michael Walden speculates about what kind of tax reform President Bush will push during his second term.Page 22
• Nathan Tabor says the president’s “amnesty for guest workers” program, which he promoted in the past but downplayed since Sept. 11, 2001, is ill-advised. Page 23
• Dr. Stephen King explains why those who promote government efficiency through the use of business principles are both right and wrong. Page 23

Parting Shot

• CJ Parody: With his recent re-election and the implementation of the Clean Smokestacks Act, Attorney General Roy Cooperasserts his new-found moral authority against neighboring states. Page 24