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Live the chumba life at chumbacasino.com. Is necessary. VGW Group void where prohibited by law 21 plus terms and conditions apply. It's 5:05 and welcome into a Thursday edition of the Carolina Journal News Hour, News Talk 1110-993 WBT. I'm Nick Craig.
Good morning to you. We start with a new bombshell report this morning out of the North Carolina State Auditor's Office. The report centers on the town of Suananoa. That's in Bunkham County. Of course, an area that was hit very hard by Hurricane Helene and drew national attention in the storm's aftermath.
In response to the devastation in that area, the state contracted Galveston, Texas-based company SLSCO. To establish and operate a community care center aiming to help local residents. The facility offered a range of basic services to storm victims, including showers, laundry facilities, restrooms, internet access, and some other basic essential supplies.
Now, here's where the story gets pretty wild. According to the audit, The center operated for 189 days and cost the state of North Carolina a whopping $27.4 million, averaging a daily cost of $145,000 plus dollars per day. During that time, the center provided approximately 14,000 showers and 18,000 loads of laundry. State auditor staff visited the site on April 14th and April 24th and were told by employees that daily usage ranged from 40 to 60 individuals, with peak usage reaching around 100 people per day in late October of last year when it originally opened. Invoices also included in the report revealed that general workers at the facility were paid over eighty seven dollars an hour, while pod managers earned one hundred forty five dollars an hour, all while receiving a two hundred fifteen dollars per day per diem.
Recommendations from the Office of the State Auditor suggest that while in the immediate aftermath of the storm the center was necessary, analysis of this cost should have been done more frequently, which could have saved taxpayers millions of dollars. The report reads: It costs an estimated $220 per load of laundry. OSA could not identify costs per shower because that data was mixed with other data as well. State Auditor Dave Bollick said in a press release yesterday: quote, in the middle of a disaster, providing a warm shower, laundry facilities to wash clothes, and a place to rest is responsive to public needs. That said, the government must always be cognizant of costs and routinely assess if we are making the most out of our taxpayer dollars.
Joseph Harris, a fiscal policy analyst at the John Locke Foundation, emphasized the importance of optimizing resources and offered examples of alternative ways that the state could have spent $27.4 million. He said, quote, while it appears that the community care center in Suananoa was created with well-meaning motives, programs should be measured by their results rather than their intentions. Spending $27.4 million To provide 14,000 showers and 18,000 loads of laundry demonstrates an extremely suboptimal allocation of resources. Due to the substantial damage in the western part of the state and the large amount of unmet financial needs, it is paramount that the available taxpayer funds are spent on projects and programs that maximize benefits for hurricane victims. For instance, with an average cost of $250,000 per home, that $27.4 million that was spent on the center could have instead funded the construction of new homes for approximately 110 families displaced by Hurricane Helene.
This report is likely to prompt further scrutiny of how emergency funds are allocated and managed during disaster recovery, especially as communities across the state prepare for the 2025 Atlantic hurricane season, which kicked off on Sunday with the kickoff of June. And of course, North Carolina continues to face challenges with hurricane recovery. In late 2024, the North Carolina Office of Recovery and Resiliency, that's NCORE. We've talked about them a lot in the past. They were responsible for relief efforts following Hurricanes Matthew and Florence announced that they had a deficit exceeding $300 million.
The state auditor in Dave Bollock's office said that they plan to release a full audit of NCORE by the end of June.
So that will likely come forward in the next couple of weeks. The numbers and some of the statistics in this report are rather staggering when you look at $27.4 million being spent, more than $145,000. $1,000 a day to operate just this one center in Swana, Noah. We've got a full breakdown this morning, including some pictures of the site, a pie chart that shows how that $145,000 was spent daily. It's over on our website, CarolinaJournal.com, where it's now 510, News Talk 1110, 993 WBT.
Last year in North Carolina, a 16-year-old student was suspended for using the word illegal alien during his English class. To walk us through an interesting development in that story this morning, Brianna Kramer, CarolinaJournal.com, joins us on the news hour. Brianna, we covered this story last year. It seemed almost unimaginable when it came to fruition. Walk us through some of the background as to what this story was back last year.
Hey Nick, yes.
So there's been a lot of developments in this case revolving a 16-year-old high school student in Davidson County, North Carolina, at Central Davidson High School. And so last April in 2024, Christian McGee was the student. He used the word illegal alien in his English class, and I guess it was taken as some sort of offensive terminology and it was deemed disrespectful. And the leaders of the school said that he was making a racially insensitive remark that caused a class disturbance.
So, really, what has played out with this over the past year is a lawsuit, federal lawsuit. Challenging this suspension.
So, really, this gained a lot of national, international attention last spring because of the First Amendment and this student's ability to say the word illegal alien in school and then get in trouble for it. And so, we actually have a new development just last Friday in this lawsuit that's been going on for over a year now. According to the court documents, we obtained a settlement has been reached, and right now it's pending a judge's approval. And, you know, Brianna, most of our audience is not currently 16 years old and going through high school. But as you go through that process, especially as you look towards going to college, having a suspension on your transcripts or on your records does carry some pretty significant weight.
You talk about some potential long-term impacts because of the decision that this school made. Yes, that's right. And Christian McGee is also in sports.
So this was a big concern for his parents. And so that's why his mother decided to stand out and speak up last year instead of just sitting back and allowing this suspension, this three-day suspension, to happen without causing any kind of concern for her son.
So anyways, she was able to stand up, speak out, gained a lot of media coverage for this story. And really the concern that the family said was the fact that he was going to be applying for college. And now he's done with, or just about done with his junior year. He's going into his senior year of high school. And he's planning to apply for college.
And they were afraid that this would tarnish his academic record with this racially insensitive label on his school record. And I think there's a lot of valid concern there, Brianna. We've watched over the last four or five years some of the what I'll call insane things that have unfolded in our society, and it seems perfectly logical that having something like this trailing you as an individual applying for college could potentially cause you to not be admitted into a school. Yes, absolutely. That was their fear.
And so the Liberty Justice Center was the law firm that has been representing them this past year. And so, in this settlement, so this proposed settlement is apparently agreed upon between the school board and the family. But right now, it still needs just to go to a judge for the final approval because Christian McGee is a minor.
So it still needs a judge's approval, which I believe is now set for in July. But it's a settlement. Yeah, please. What are some of those details? Sure, yeah.
The school board will remove all references to racial bias in the teenager's school record. That's the first item. Second item, they are going to offer a public apology from the board for mischaracterizing Christian in a racially biased way. in his school records. And the final item in the settlement is to provide $20,000 in compensation.
And the monetary compensation is intended to help with the costs of the new private school Christian transferred to following the incident because days after this exploded last year. He wasn't able to keep going to the school. It kind of turned into chaos, I think, for the family, and so he ended up transferring out of the school district. And, Brian, I guess I want to make sure that the context is clear on all of this. This student wasn't running around as we understand it.
He wasn't running around the school pointing at people and calling them illegal aliens. He was prompted by one of his teachers to discuss something as it related to illegal aliens, and that is how this whole conversation unfolded. Is that the case? Yeah, that's right. And that's how the family described this incident from the start: this was just inside of the classroom, and it sparked some sort of conflict with a Hispanic student in the classroom.
And ultimately, it sounds like things may have been resolved, but the vice principal came to the classroom and ended up writing him this suspension for the racially insensitive remark, allegedly. And so. You're exactly right. They spoke out against this, and now a year later, here we are with the school board ready to apologize. But also worth noting, they aren't.
actually according to the documents taking back The suspension part.
So that is going to remain on his record. It's just the labeling about the racially insensitive remark. It's a pretty remarkable story. We appreciate the update this morning. You've got even a copy of this potential settlement agreement and some background for folks if they want to go and read some more details.
Where can they do that this morning? Yeah, there's also a joint statement you can read from both parties in the court filing, so you can go to CarolinaJournal.com and find the article there. Breonna Kramer joins us this morning on the Carolina Journal News Hour. Riley Herps from 2311 Racing here. And you know what grinds my gears?
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VGW Group Voidwear Prohibited by law. 21 plus. Terms and conditions apply. It's 521. Welcome back to the Carolina Journal News Hour, News Talk 1110, 993 WBT.
We are tracking a major business announcement this morning over on our website, CarolinaJournal.com. The major international shipping and logistics and e-commerce giant Amazon announced yesterday that it plans to invest $10 billion to launch a new high-tech cloud computing and artificial intelligence campus in Energy Way Industrial Park in Rockingham, North Carolina. That's in Richmond County. According to a press release yesterday afternoon from the company, the landmark investment is expected to create at least 500 new high-skilled jobs while supporting thousands of other jobs in Amazon Web Services, AWS, part of their data center supply chain. The new jobs will range from data center Engineers and network specialists to engineering, operations managers, security specialists, as well as many more technical roles.
In addition to these direct positions, the investment will support thousands of local construction jobs, positions, the data center supply chain, as well as other jobs in the local community. Amazon has said that generative AI is driving increased demand for advanced cloud infrastructure and computing power, and noted that their investment will support the future of AI from an AWS data center in North Carolina, noting that this deployment of cutting-edge cloud computing infrastructure will strengthen North Carolina's position as an innovation hub. A press release from Governor Josh Stein says, quote, artificial intelligence is changing the way that we work and innovate, and I am pleased that North Carolina will stay at the forefront of all that's ahead as we continue to attract top technology companies like Amazon. Amazon's investment is among the largest in state history and will bring hundreds of good paying jobs and an economic boost to Richmond County. AWS is the world's most competitive and broadly adopted cloud computing solution.
With its data centers across the world, it enables customers of all size across all industries, such as automotive, healthcare, manufacturing, financial services, public sectors, as well as more, to transform their businesses. The new data center will contain computer servers, data storage drives, networking equipment, and other forms of technological infrastructure used to power cloud computing capabilities and generative AI technologies. According to David Zapier, who's Amazon's chief of global affairs and their legal officer, said in the release: Amazon's $10 billion investment in North Carolina underscores our commitment to driving innovation and advancing the future of cloud computing and AI technologies. This investment will position North Carolina as a hub for cutting-edge tech, creating hundreds of high-skilled jobs and driving significant economic growth. We look forward to partnering with the state and local leaders as well as local suppliers and educational institutions to nurture the next generation of talent.
Amazon is also planning to bring training and education programs to local communities, including data center technician programs, fiber optics splicing workshops, and STEM awareness, as well as other learning opportunities for K through 12 schools. In addition to the investment, the company is also launching the Amazon Richmond County Community Fund with a $150,000 commitment for grants of up to $10,000 to support STEM education, sustainability, economic development, workforce development, and community well-being. Amazon said that it has invested $12 billion in North Carolina since 2010, contributing $13 billion to the state's GDP and supporting more than 24,000 full and part-time jobs. Associated with that, another 26,000 indirect jobs across various facilities. They will have opened or will open delivery facilities in the state that will improve customer delivery speeds and are investing in solar and wind farms and have filmed Amazon original movies and series across the state as well.
According to Business North Carolina, the deal was made with an incentive package from the Richmond County Commissioners, who approved it earlier this week on Tuesday. The 20-year incentive package of cash grants is equal to 50% of the annual property tax and 65% of the annual personal property tax for each of the 20 buildings that are proposed for the project. The package is contingent on a one billion dollar worth of investment and fifty jobs by the end of twenty thirty. According to Details from Brian Balfort, who is the senior vice president of research at the John Locke Foundation. He says, quote, Amazon, the fourth largest corporation on the planet and headed by the world's third richest person, Jeff Bezos, will be getting a significant property tax break courtesy of the Richmond County government.
Meanwhile, local business owners who have served the community for decades get no tax breaks. This latest crony deal underscores the unfair nature of so-called economic incentives and how it typically rigs the game in favor of large corporations at the expense of smaller businesses. The details are not fully fleshed out yet, but there were reportedly no state incentives given for the project. We've discussed a lot over the last couple of months now, JDIG, the Job Development Improvement Grant project, and some other statewide incentive programs. And it's unfortunate that those programs have been in the news, not because of great success, but companies unable to meet some of the agreements that they did sign on to the state of North Carolina with.
That has caused many of those JDIG programs to unfortunately fall flat and not getting those incentive deals.
However, in this case of this Amazon facility where they will plan to invest about $10 billion to launch this new data center, Center. That money is all coming from the local government in Richmond, North Carolina. But as was noted there by Brian Balfort, the benefits there just to Amazon. While small businesses continue to struggle across the United States and here in North Carolina, they are not seeing that same upper hand that those businesses are seeing, like Amazon from the Richmond County government. We've got a full rundown this morning on this plan.
You can read those details and check out that press release from Amazon over on our website, CarolinaJournal.com. It is one of our main stories right there on the homepage. Hello, it is Ryan, and I was on a flight the other day playing one of my favorite social spin slot games on chumbacasino.com. I looked over at the person sitting next to me, and you know what they were doing? They were also playing Chumba Casino.
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21 plus, terms and conditions apply. WBT is committed to sharing valuable resources about mental and behavioral health. We have partnered with the Mecklenburg County Alcoholic Beverage Control Board to explore the topic of mental illness in families. We welcome two remarkable guests, Miss Keona Hamilton Stewart, the Executive Director of Center 360 Incorporated, and Miss Keona Simmons, the Chief Program Officer at Supportive Housing Communities. If you are interested in learning more and seeking answers about mental illness within the family, we invite you to view the series this morning on our website, wbt.com.
It's now 5:36. Welcome back to the Carolina Journal News Hour, News Talk 11:10-993. WBT, yesterday morning we talked about the steel tariffs that went into effect at midnight yesterday morning and continued. To track the impact on North Carolina, the booming automotive manufacturing sector here in the state is facing renewed uncertainty as those federal tariffs on steel and aluminum threaten to raise costs and stall momentum in one of the state's fastest-growing manufacturing industries. According to the Economic Development Partnership of North Carolina, there are a plethora of major companies, including Toyota, Bridgestone, Caterpillar, and many more that have operations in the state.
The automotive industry is the largest manufacturing industry in the Southeast, employing more than 37,000 workers in the state. Brian Balfour, the vice president of research at the John Locke Foundation, said, quote, Our auto industry sector has enjoyed a 23% growth since 2014, but these latest tariffs on steel and aluminum threaten that success. The added cost of inputs will either generate higher prices for vehicles, which consumers can scarcely afford, or compel manufacturers to cut back in other ways, most notably in cutting payroll. One of the state's largest automotive companies is Toyota, who appears to be taking a wait-and-see approach to shifting tariff policies. On Tuesday, the White House announced a 50% increase in tariffs on steel and aluminum imports that went into effect June the 4th.
The increase is likely to impact automotive manufacturing across the state. Emily Holland, who is the manager of corporate communications for Toyota North America, said, quote, Toyota has been part of the cultural fabric in the United States for more than 65 years, and our philosophy has always been to build where we sell and buy where we build. With over $50 billion invested in the United States, including 10 U.S. manufacturing plants and more than 49,000 direct jobs, we are fully committed with the USMCA trade agreement and will continue to depend on our investments in America. Like the entire auto industry or any other global business, we will continue to adapt to trade policies and meet our customers' needs.
And quote there from the manager of corporate communications for Toyota North America. Another company, VinFast North Carolina's facility remains under construction. The Economic Development Partnership of North Carolina lists the EV manufacturer as one of the state's major automotive companies. First announced back in 2022, the Chatham County plant broke ground in August of 2023, but has been in a kind of a holding pattern where it's faced repeated delays. The site remains unfinished with no active operations, with the company announcing that it had recently shifted its focus to Asia, launching a new plant in Indonesia nearly a year after construction began in North Carolina.
VinFast is one of those J Dig companies, a job development investment grant, and could potentially receive up to $300 plus million dollars in state reimbursement through the program over the next 30 years. School buses also play a significant role in North Carolina's automotive industry, with 12,000 currently in operation across the state. One of those key manufacturers, Thomas Built Buses, is based in High Point. They produce school activity and childcare buses and distribute them throughout a nationwide dealership network as a subsidiary of Delmara Truck North America. The company could be significantly impacted by new federal tariffs on steel and aluminum, which are obviously key materials in bus manufacturing.
Balfort warns that the higher input costs may strain operations, increase vehicle prices, or leads to cut elsewhere, putting pressure on one of the state's major automotive employees. According to a statement sent to Carolina Journal from Thomas Built Buses, they said, quote, we are currently monitoring and evaluating the situation and recognize that the tariff affects international businesses for any global company. Del Nio Truck North America has extensive experience in managing trade agreements, which has allowed us to consistently operate our business in compliance with all past and present regulations. We anticipate that tariffs will impact North America vehicle manufacturing costs, potentially impacting prices. As the situation evolves, our priority is to support our customers and provide sustainability while collaboratively navigating the complexities of these tariffs.
As North Carolina continues to position itself as a hub for automotive innovation and manufacturing, the sector's future may hinge on how companies adapt to rising material costs as well as shifting global trade policies. With billions in state and local incentives on the line and potentially thousands of jobs at risk in those industries, tariff pressures could very well test the resiliency of both established manufacturers and emerging players. We've got some more details on the impact of the steel and tariff impacts on the automotive industry in North Carolina over on our website this morning. You can read the details at CarolinaJournal.com or It's now 542. News Talk 1110-993 WBT.
The United States Supreme Court earlier this week hinted at that it might be interested in taking up some legal challenges as it relates to the state's largest electrical provider, that being Duke Energy. To walk us through some of those details this morning, Mitch Kokai with the John Locke Foundation joins us on the Carolina Journal News Hour. Mitch, we chatted a couple of weeks ago about a small town outside of the Durham area called Carborough that's taking or attempting to take some legal action against Duke. This is unrelated to that, correct? Yes, this is a completely different topic.
This deals with some claims that Duke Energy is exercising monopoly power in an anti-competitive way that would run afoul of federal law. What happens is there is a competitor company called NTE Carolinas, and even though it has the name Carolinas in the name, it's actually based in Florida. And some years back, that company was trying to compete with Duke Energy to get Fayetteville, North Carolina's energy business. Duke's contract with Fayetteville was about to run out, and NTE Carolinas wanted to come in and get that contract. And basically, the argument in the lawsuit that NTE filed against Duke was that Duke was trying to take steps that were anti-competitive and ran afoul of the Sherman antitrust law to block any competition and to keep Fayetteville's business for itself.
Now, the Duke argument. Was NTE Carolinas can't prove any antitrust action. All of the things that are being alleged are actually legal practices, and that based on previous court precedents, you can't say that several different things that by themselves are legal, if you lump them all together, they all of a sudden become illegal. They say that that's been thrown out by previous court precedents. And lower courts, or at least the lower court, the trial court, agreed and ruled in favor of Duke Energy.
But the fourth U.S. Circuit Court of Appeals flipped that ruling and ruled in favor of NTE Carolinas, saying that it could go back to court and try to prove this case. And so Duke is appealing to the U.S. Supreme Court.
Now, as we know, anyone who follows the Supreme Court knows that there are hundreds, if not thousands, of petitions that get to the U.S. Supreme Court every year. And it only takes a handful, not too many dozens of cases. During the course of the year, so the interesting development in the case this week is that as this Duke Energy petition sits in front of the U.S. Supreme Court and the court decides whether it wants to take the case, there was a clue that at least the court has some interest in considering it because the court has asked the U.S.
Solicitor General, who is the lawyer who argues for the federal government at the U.S. Supreme Court.
They've asked the Solicitor General to file a brief talking about what the federal government's interest is in this case, if any.
So we will see in the weeks and months ahead some sort of filing from the Solicitor General's office about whether they're interested in this case, and if so, what that interest is. And after that brief is filed, then we'll see whether the U.S. Supreme Court wants to take up this case or not. You know, Mitch, I think many folks, and it's been said before, that many utility companies act as regulated monopolies because you really don't have a choice. Most folks across the state of North Carolina do really not have a choice as to who their electrical provider is.
If a case like this was to move forward, could that potentially change some of that here in North Carolina, as you understand it?
Well, it certainly could. The status quo is that there certainly would be an impact on regulated monopolies because the 4th U.S. Circuit Court of Appeals ruled against Duke and for NTE Carolinas, saying that, look, this company needs to be able to prove that its arguments that Duke acted in an unlawful, anti-competitive way. And what Duke is asking is for the court to go back and throw out what the Fourth U.S. Circuit Court of Appeals said and instead restore what the trial judge said in this case, which was a ruling in favor of Duke Energy.
So, regardless of what happens, I think there could be potentially an impact. If the U.S. Supreme Court doesn't take the case, there definitely will be an impact because NTE Carolinas gets to go back to a federal trial judge and try to argue that what Duke did was anti-competitive, which could have a major impact on electricity providers here in North Carolina. If the Supreme Court takes Takes up the case and ends up ruling in Duke's favor, then that would shut the door on some of the arguments that either NTE Carolinas or any other alternate provider that's trying to move in and compete with Duke Energy or any of these other monopoly providers around the country, they would have a much higher hill to climb. Mitch, obviously we're talking about this morning a very highly regulated industry, at least in North Carolina, which is a utility like Duke Energy.
Is it fair to say that regardless of whether the Supreme Court takes this or not, we're likely probably a couple of years out from any major things happening because of the back and forth that is likely to take place in such a major decision like this? Yeah, I think the ultimate outcome of this case is probably at least several years down the road. If the Supreme Court decides to take this case, the earliest that it would happen would be in the fall of 2025 with a ruling not likely until well into 2026, maybe around this same time next year. And then after that happens, the Supreme Court would either be saying, yes, NTE Carolinas could go forward with his suit, which basically means it goes back to the beginning of the trial court stage, or the court decides not to take up the case, which means that the fourth U.S. Circuit Court of Appeals decision stands, which also means that NTE Carolinas gets to go back to the opening stage.
So the ultimate resolution of this case is probably at least a couple of years, if not more years down the road. It's obviously something that we will keep an eye on. We've got some additional details this morning on our website, CarolinaJournal.com. Mitch Kokai from the John Locke Foundation joins us on the Carolina Journal News Hour. Hello, it is Ryan, and we could all use an extra bright spot in our day, couldn't we?
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It's raising some serious questions about the cost of hurricane recovery efforts in Western NC. The report centers on the town of Suananoa, that's located in Buncombe County, which suffered severe damage from Hurricane Helene last September and drew national attention in the storm's aftermath. The state contracted with a company out of Galveston, Texas, to establish and operate a community care center, which was aiming to help local residents. The facility offered a range of basic services to storm victims, including showers, laundry facilities, restrooms, internet access, and some other essential supplies. According to the audit, the center operated for 189 days and cost the state of North Carolina and eye-popping $27.4 million, averaging a daily cost of $145,217.77 each day it was in operation.
During that time, the center provided approximately 14,000 showers and 18,000 loads of laundry. State audit staff visited the site at two different times in the month of April and were told by employees that daily usage ranged from forty to sixty individuals, with peak usage reaching around one hundred people per day in late October of twenty twenty four, right after the facility opened. Invoices included in the report also revealed that workers at the facility were paid anywhere between eighty seven and one hundred forty five dollars an hour while also receiving a two hundred fifteen dollars per diem. Recommendations from the Office of the State Auditor Suggests that while in the immediate aftermath of the storm the center was necessary, ongoing analysis of costs should have been done more frequently, which could have saved the taxpayers and folks across the state potentially millions of dollars. The report reads: it cost an estimated $220 per load of laundry.
OSA could not identify some of the other costs because some of the data sources were mixed. State Auditor Dave Bollock said in a press release yesterday afternoon: in the middle of a disaster, providing a warm shower and laundry facilities to wash clothes, as well as a place to rest, is responsive to the public needs.
However, that being said, the government must always be cognizant of costs and routinely assess if we are making the most out of our taxpayer dollars. Joseph Harris, a fiscal policy analyst with the John Locke Foundation, noted that, for instance, with the average Cost of a house to be rebuilt or repaired costing about $250,000. The $27.4 million spent on the center could have instead funded the construction of approximately 110 new homes. These report findings are likely to prompt further scrutiny of how emergency funds are allocated and managed during disaster recovery, especially as communities across the state are now preparing for the 2025 Atlantic hurricane season, which began on Sunday, June the 1st and runs all the way through the end of November. And unfortunately, this is not a new story in North Carolina.
The state continues to face challenges with hurricane recovery. Late last year, we learned that the North Carolina Office of Recovery and Resiliency, who was responsible for relief efforts following Hurricanes Matthew and Florence, had a budget deficit of more than $300 million. A full Audit of NCOR is expected in the next couple of weeks. We've got a lot more details on this story over on our website this morning, CarolinaJournal.com. Encourage you to head on over there and check out the details.
That's going to do it for a Thursday edition of the Carolina Journal News Hour. We're back with you tomorrow morning, 5 to 6, right here on News Talk 1110 and 99.3 WBT.