Cover

• Contrary to the stated objectives of its supporters, the 2002 North Carolina Clean Smokestacks law — based on controversial environmental assumptions used to espouse questionable health benefits — may have been crafted to help protect the state’s two largest electricity suppliers from federal lawsuits and fines. Page 1

North Carolina

• The North Carolina Clean Smokestacks Plan, the report on which the state’s landmark 2002 legislation was built, was written by a leftist environmental group and contained several assumptions based on what some call “junk science.” Page 3
• When the North Carolina Clean Smokestacks Plan was first presented to the Department of Natural Resources staff, several environmentalist groups and the state’s two investor-owned electric utilities already supported the legislation — if they could get cost recovery — according to documents. Page 4
• Despite strong evidence that Duke Energy intentionally fudged its accounting in order to preserve its level of earnings, the North Carolina Utilities Commission agreed to allow the utility to freeze its rates for five years. Page 5

Education

• With 26 magnet schools spread around its 650 square miles, Guilford County is feeling the pinch as it deals with disproportionate increases in transportation costs for magnet-school programs. Page 6
• In 2000, as Aaron Johnson began his fourth frustrating year in the public school system, a school employee gave his mom a piece of advice she believes rescued her son from a disastrous future: consider home-schooling. Page 7
• Lindalyn Kakadelis writes that frustration with bureaucratic ineptitude in public education is fueling an abundance of parental activism across North Carolina. Page 7
• The North Carolina Department of Public Instruction announced that the dropout rate for grades nine to 12 is up from 4.78 percent in 2002-03, to 4.86 percent in 2003-04. Page 8

Higher Education

• While North Carolina may soon consider possible increases in general fund appropriations for the University of North Carolina system, Virginia is considering a plan that would grant institutions more autonomy while reducing their money from the commonwealth. Page 11
• Although most of President Bush’s State of the Union address Feb. 2 dealt with reforms of Social Security and spreading freedom throughout the world, the president also discussed his higher-education goals. Page 12

Local Government

• A recent decision by a local trial court that Durham County’s impact fee on new housing, levied for the support of the public schools, is illegal has revived the dispute over the controversial revenue-raising method. Page 14
• North Carolina’s second highest court, in a ruling Jan. 18, clarified under what circumstances a city or town can engage in activities that private business ordinarily provide. Page 15

Learning Curve

• A review of Newt Gingrich’s Winning the Future: A 21st Century Contract With America. Page 18
• Reviews of Abuse of Power: How the Government Misuses Eminent Domain by Steven Greenhut, and The Not So Wild, Wild West: Property Rights on the Frontier by Terry L. Anderson and Peter J. Hill. Page 19

Opinion

• Michael Walden wonders, as the dollar falls against foreign currencies, are we economic hostages to foreigners? Page 22
• Dr. Dennis Rondinelli, a professor of management at UNC-Chapel Hill, types on his Dell Computer an editorial explaining why he’s worried about a new era of corporate welfare in North Carolina. Page 23
• Nathan Tabor writes that expectant mothers who don’t want their children need to be given an alternative to abortion, and supporting crisis pregnancy centers can help provide that alternative. Page 23

Parting Shot

• CJ Parody: John Edwards wasn’t hired by the Law School at the University of North Carolina at Chapel Hill for political reasons. Really. Honest. Promise. Scout’s honor. Page 24