John Locke Foundation

Saturday, July 4, 2009

Does This Job Creator Merit Stimulus?
Posted July 3rd, 2009 at 10:56 PM by Leslee Kulba

As difficult as it is to balance government budgets these days, Haywood County is being sued for at least $2 million in damages. The general contractor in charge of courthouse renovations filed the motion which, in addition, requests arbitration to settle outstanding differences of opinion and that the county pay attorney fees. The renovations were [...]

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Backward Budgeting
Posted July 2nd, 2009 at 11:50 PM by Leslee Kulba

The City of Asheville expects to receive $509,460 for homelessness programs by way of the American Reinvestment and Recovery Act. Now, it has to figure out where to stash the loot. It is soliciting pre-applications from potential subgrantees.

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Grades Don’t Reflect Transparency Gap
Posted July 2nd, 2009 at 11:33 PM by Leslee Kulba

The John Locke Foundation gave Asheville and Buncombe County B grades in transparency. There is, however, a great deal of difference in the way the two bodies handle information. Asheville publishes hundreds of pages of staff reports with each formal meeting agenda, which often runs three pages long. Buncombe County publishes about a paragraph of [...]

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Headlines Research

Incentives offered to Fletcher company
FLETCHER — Fletcher officials last week were awaiting word on a possible plant expansion that could bring more than 300 jobs to the area. The town of Fletcher and Henderson County approved economic incentives for the unnamed company. The incentives would go to an existing company, which would make a $30 million investment in its facility in Fletcher;. The incentives would be “roughly 120 percent of the ad valorem taxes generated by the new project.”

Areas outside Buncombe municipalities growing faster
ASHEVILLE — When people sit on the decks of their condominiums in Florida and tell their friends they’re moving to Asheville, what they really mean is they plan to live someplace like Reems Creek, Fairview or Candler. That’s the conclusion suggested by population estimates released by the U.S. Census Bureau. The numbers indicate that areas outside the limits of Buncombe County’s municipalities have grown three times as fast as those within so far this decade.

Asheville coal ash sites on potential hazard list
ASHEVILLE — Two coal ash ponds at the Progress Energy Asheville plant are among 44 ash storage sites around with the country with “high hazard” potential, the U.S. Environmental Protection Agency disclosed Monday. The designation does not mean the dams at the Skyland site ponds are at risk of failure. It means that because they’re near Interstate 26, people probably would die if they failed.

State inspectors monitor local tailgate markets
ASHEVILLE — Vendors at local tailgate markets likely will be on their toes this weekend. That’s because they probably will be seeing more of the state food inspectors who removed numerous items for sale at the North Asheville Tailgate Market last weekend and told several growers they were out of compliance with state regulations.

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Why North Carolina Should Not Build High-Speed Rail
Because of their high costs, tiny benefits, and interference with property rights, North Carolina should not attempt to provide high-speed rail service. Instead, it should use its share of the $8 billion stimulus funds solely for incremental upgrades, such as safer grade crossings and signaling systems, that do not obligate state taxpayers to pay future operations and maintenance costs.

Salisbury’s Fiber-Optic Cable System: Another corporate welfare project paid for by average taxpayers
Quick facts:

  • The City of Salisbury recently decided to build a $30 million fiber-optic cable system that will offer Internet, phone, and television service to Salisbury residents and businesses. The city is paying for this system with 20-year bonds.


  • City officials promised subscription fees from 28 percent of city residents would cover the entire cost of the system.


  • While fiber systems offer high speeds, many computer users favor laptop computers and are willing to trade lower speeds for the mobility of wireless Internet connections. Thus currently available wireless technology such as mobile broadband cards, Wi-Fi, and the rapidly growing WiMAX wireless technology could make it very difficult for the city to live up to its “paid by subscribers” promise, leaving property taxpayers to foot the bill.


  • WiMAX technology works similarly to WiFi but can reach faster speeds, currently up to 10 mbps (million bits per second), and cover a greater distance, up to 30 miles. One WiMAX installation could cover the entire city of Salisbury.


  • If the system cannot attract enough subscribers, city officials have stated that they will use an increase in property taxes of 9.5 cents per $100 valuation to fund the project.


  • The average residential customer gains little from this system. Television and phone quality will not be appreciably better than private sector competitors, and the highest speeds available through fiber technology will come with a price tag too high for most residential subscribers.


  • Who benefits? From the start, city officials have justified the investment by touting its economic development prospects. They hope it will bring in a younger, professional class as well as new businesses that require this type of service. If the city fails to attract the necessary number of subscribers, property taxpayers, many of whom cannot afford or do not need the system, will be left footing the bill for businesses.


Authors: Dr. Michael Sanera and Katie Bethune

City and County Issue Guide 2009
Policymakers in the many local governments of North Carolina face a host of important challenges. This issue guide offers solutions to problems that confront North Carolinians at municipal and county levels. The common thread in these recommendations is freedom. By increasing individual freedom, local governments can foster the prosperity of all North Carolinians and keep open avenues to innovative solutions from enterprising citizens.

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