It's 506 and welcome into the Carolina Journal News Hour on Charlotte's FM News Talk 107.9 FM WBT. I'm Nick Craig. Good Thursday morning to you. We start off this morning with some news out of our state capitol. North Carolina Governor Josh Stein, Senate Leader Phil Berger, and House Speaker Destin Hall have announced the formation of a new Blue Ribbon Commission on Public Education happening earlier this week.
The group is tasking the group with studying the structure and implementation of the state's school system. This is a large group. It is a 30-member commission. It was created via executive order from Governor Josh Stein and it is charged with examining critical areas of the education system, including teacher training, student achievement, administration. administrative operations as well as accountability measures.
The governor said in the announcement, excellent public schools create meaningful opportunity for every North Carolinian to succeed. This commission represents a bipartisan commitment and an opportunity to make North Carolina's public schools the best in the nation. Members of the commission range from lawmakers, those legislators in Raleigh, superintendents, business leaders, classroom teachers, and other elected officials across North Carolina, with the body being co-chaired by Anna Faircloth, who is the president of Buffalo Investments and Lafayette Farms, as well as the other co-chair, Dr. Don Martin, who is the chair of the Forsyth County Board of Commissioners, their county commission in Forsyth County. Republican legislative leaders say that the commission's work is vital for the state's long-term economic health.
We'll hear first from Senate Leader Phil Berger. Yeah. Who said that the educational opportunities in North Carolina open a world of possibility for our citizens? He went on to say it's imperative that we continue to do work collaboratively to ensure North Carolinians have the skills that they need to enter the workforce. He said, We need everyone, business leaders, educators, policymakers, to come together to meet real-world needs for our students.
I look forward to seeing the proposals that this group suggests to improve educational outcomes for all students. Those comments were also echoed by his cohort, the Speaker of the North Carolina House and Destin Hall, who says that the current landscape needs a frank assessment. He said in the announcement, North Carolina has talent and the foundation to become a national leader in education, and we intend to do just that. By bringing top educators, business leaders, and elected officials to the same table, this new commission will take an honest look at what's working and what is not in our public schools. I look forward to collaborating with them to strengthen schools across our state.
Among the appointees are the University of North Carolina System President Peter Hans. I'm not talking about Chapel Hill. We're talking about the UNC system as a whole, State Board of Education Chairman Eric Davis, and several sitting legislators from both the Republican and Democrat side of the aisle. The executive order signed by Governor Stein dictates that the Commission may report its findings and recommendations to the governor and the General Assembly. They would need to have that done by the end of this year.
December the 31st is the date listed on the executive order. And the formation of this commission comes as public sentiment regarding the state's education system continues to face some major headwinds. A recent Carolina Journal poll that we released back in January showed that 53% of likely voters are dissatisfied with the quality of education in public schools across the state, compared to just 29% who said in that poll that they are satisfied. The same survey showed that if money were no object, 46% of those surveyed would choose a private school for their child, while only 30% would select what would be deemed a traditional public school. Voters also expressed strong desires for educational alternatives.
The January poll found that nearly two-thirds of North Carolina voters support taxpayer-funded school choice scholarship programs. This is through the OSP or the Opportunity Scholarship Program. Additionally, 79% of respondents supported open enrollment policies. That allows students to transfer to different public schools within the same district if a new school provides a better fit. You can read some additional details about this new Blue Ribbon Commission on Public Education.
The details over on our website, CarolinaJournal.com. Just look for the story with the headline: NC Leaders Form New Commission to Review Public Education. In some other statewide news this morning, we are, of course, keeping a close eye on the 26th Senate District here in North Carolina, the race between Rockingham County Sheriff Sam Page and longtime serving Senate President Phil Berger.
However, this is nothing new. According to a recent report over on our website and one of our brand new reporters, Andrew Pomerantz, this is not the first time that we've seen very close elections, including a tie. Which state law does provide a specific path forward for the event of an election ending in a tie. As previously reported by Carolina Journal, North Carolina law requires a second primary between the candidates before a recount when a multi-county legislative primary is tied. Mitch Kokai from the John Locke Foundation said, It is the type of bizarre, century-old law that has attracted little attention because it's so rare to see a situation when it might have to be used.
Don't be surprised if the state board of elections and general assembly takes a closer look at this issue moving forward. But the rules are different in a general election. More than three decades ago, one of North Carolina's legislative race went even further than narrow margins. It ended in a perfect tie. We bring you all the way back to 1994, a closely contested race in North Carolina's 15th senatorial.
District pitted Democrat incumbent Elaine Marshall against Republican challenger Dan Page.
Now, it is important to note that there is no known relation to Dan Page from 1994 and Sam Page, who is currently running in the race in Rockingham and Guilford County. According to election records referenced in an amicus brief reviewed by the Carolina Journal, when votes were first counted in November of 1994, the contest was too close to call. A recount followed, and after election officials reviewed the ballots, the results remained a tie. Andy Jackson, who is the director of the John Locke Foundation Civitas Center for Public Integrity, said when ties happen often enough in local races, they are very rare, however, in North Carolina General Assembly races. Elaine Marshall, a Democrat, was first elected to the North Carolina Senate in 1992 and represented that 15th district, which included portions of Harnett and Lee counties.
She was seeking a second term during a year that proved difficult for many Democratic candidates nationwide. Dan Page, on the other hand, a Republican, mounted a strong challenge during the 1994 midterms, a cycle in which Republicans gained ground nationwide.
However, under state law, when an election ends in a tie after a recount, the state must hold a new election to determine the winner. And according to the state Senate Journal from January the 25th, 1995, as a result of the tied election, there was a There was a new election and the session, the legislative session in 95 began without a representative from that district while officials worked to schedule a special election to break that tie. That election eventually would end up taking place on March 28th, 1995. That is when voters returned to the polls for a special election that produced a decisive outcome. Dan Page won the rematch and took office to represent the district.
However, both candidates would continue their public political careers after the contest. Elaine Marshall returned to public office in 1996, where she was elected the North Carolina Secretary of State. She became the first woman to be elected to a statewide executive office in state history. And if that name sounds familiar, well, she continues serving in that role today some 30 years later. After winning the special election, Page served in the Senate until 1999, where he would step aside to unsuccessfully run for Congress.
There remains a 23-vote margin in the race between current Senate leader Phil Berger and Rockingham County Sheriff Sam Page. We will have the official county canvas process. taking place tomorrow throughout the day.
So we'll have breaking news if it is relevant a Friday afternoon on our website, CarolinaJournal.com. And of course, we'll walk you through any appurtinent details coming up Monday morning right here on the Carolina Journal News Hour. If you work in university maintenance, Granger considers you an MVP because your playbook ensures your arena is always ready for tip-off. And Granger is your trusted partner, offering the products you need all in one place, from HVAC and plumbing supplies to lighting and more, and all delivered with plenty of time left on the clock so your team always gets the win. Call 1-800-GRANGER, visit Granger.com, or just stop by Granger for the ones who get it done.
It's 522. Welcome back to the Carolina Journal News Hour, Charlotte's FM News Talk 107.9 FM. WBT continuing our coverage. It has now been 17 months since Hurricane Helene affected portions of Western North Carolina, or I should say most of Western North Carolina. We remain pretty closely tied to what some of those recovery and relief efforts look like.
State officials and regional leaders warned this week that Western North Carolina still faces a significant funding shortfall for repair to damaged water infrastructure. This is even as long-term repairs along the Blue Ridge Parkway continue following destruction from Helene. Members of the Governor's Recovery Office for Western North Carolina, also known as GROW NC, gathered earlier this week at McDowell Technical Community College to review rebuilding progress across the mountain region. The advisory group coordinated Recovery priorities across western North Carolina, including local officials, lawmakers, business leaders, and nonprofit representatives. The meeting held both in person and virtually included monthly updates from state agencies, federal officials, philanthropic organizations, and regional leaders overseeing the recovery more than 17 months after the storm affected the region.
While officials pointed to progress in rebuilding roads, restoring tourism assets, and delivering disaster aid, they said that repairing drinking water and wastewater systems remains one of the most expensive and complex challenges facing the region. Officials from the North Carolina Department of Environmental Quality, that's NCDEQ, said that hundreds of millions of dollars have been directed toward infrastructure projects, but requests from local governments far exceed the funding that is available right now. Andy Miller, who is the Deputy Secretary at DEQ said, we're well on our way to over a billion dollars awarded to Western North Carolina, but there is still a substantial unmet need. Flooding and landslides triggered by Helene damaged treatment plants, sewer lines, pump stations, and distribution systems across multiple mountain counties, with some communities continuing to operate with temporary repairs, and they've been doing so now for nearly two years while awaiting permanent reconstruction. State officials said that three major funding streams are currently supporting recovery efforts.
That includes $75 million in emergency bridge loans to help local governments begin repairs while waiting for federal reimbursements. $27 million in state reserve grants were awarded earlier this year for construction projects tied to storm damage, and the largest sum of money, some $685 million in federal appropriations designated for the state's water infrastructure revolving loan program to support recovery. Though the first three rounds of funding, roughly $467 million, has been awarded through the federal revolving loan program, additional grants and bridge loans bring total water infrastructure funding directed to western North Carolina at over $569 million. Local governments have submitted more than $1.3 billion in project applications, leaving an estimated funding gap of roughly $640 million, even if all available funding, every single dollar that has been allocated, is laid out. Officials said that many of the proposed projects combine basic repairs with larger resiliency upgrades designed to protect the systems from future disasters.
The state's bridge loan program has also drawn relatively mixed participation, with some smaller municipalities hesitant to take out debt because of some of the uncertainty around reimbursements from FEMA. That's the federal approach. Emergency Management Agency. DEQ officials suggested that the North Carolina General Assembly could consider allowing loan forgiveness for portions of those loans not ultimately reimbursed through federal disaster aid. Governor Josh Stein joined the meeting virtually to provide an update on ongoing negotiations in Washington over additional disaster aid.
Stein said that he is advocating for $13.5 billion in additional federal recovery funding to support the rebuilding, telling the group, I'm encouraged, but encouragement doesn't put food on the table. We need actual funding and we're going to stay on this job until it is done. The governor said that he has met with White House officials and congressional leaders to push for the funding package, saying, I'm sure you all saw that the president is replacing former Secretary Christy Noam with Senator Mark Wayne Mullen as the Secretary of Homeland Security. But regardless of who the Secretary is, FEMA needs to act with great Urgency, approving and distributing funds for relief. Recent federal actions include $150 million in public assistance reimbursement and approval of 47 voluntary home acquisition projects under what is known as the Hazard Mitigation Grant Program, which totals about $11 million, according to Governor Josh Stein.
So, the water treatment systems and water facilities remain a major problem out west.
However, some other repairs are moving forward quite quickly. The Blue Ridge Parkway Superintendent Tracy Stauout said that the parkway sustained extensive damage during Hurricane Helene. No surprise there. It included 58 landslides across the route. And by last fall, about 400 miles of the 469-mile parkway had reopened.
Though roughly 40 miles between Linville Falls and Mount Mitchell does remain. Closed because of severe storm damage. The superintendent said that the National Park Service has made steady progress restoring access, noting that by the end of this calendar year, the Blue Ridge Parkway will be 100% open again. The parkway alone sustained about $1.7 billion in damage to infrastructure, historic structures, and natural resources, with recovery efforts including rebuilding roads, repairing trails, clearing debris, stabilizing streams and wetlands, restoring historic buildings, as well as reducing wildfire risk caused by storm-damaged forests, which obviously makes sense there when you talk about some of the major effects.
However, on the tourism front, local leaders warned that tourism losses are continuing to strain mountain economies while key travel routes and attractions remain partially inaccessible. Van Phillips told the advisory group that businesses in Mitchell County are seeing significant decline in visitations, noting that one of the county's top hotels is down about 50%. telling the group this is a big part of our economy. He urged the National Park Service to maintain clear communication about closures and detours so that communities can better promote tourism while repairs continue. You can read some additional coverage on Hurricane Helene and those recovery efforts in western North Carolina.
We have literally dozens of pieces on this. Our most recent one's headline, Helene Recovery Hindered by Water Funding Gap. It's 537. Welcome back to the Carolina Journal News Hour, Charlotte's FM News Talk 107.9, WBT. We've got some concerning fraud news across North Carolina this morning, as last week a federal judge sentenced four people tied to fake substance abuse treatment facilities in both Kinston and Goldsboro to 14-year prison sentences.
Those are both in eastern North Carolina. Prosecutors say that they were orchestrating a $12.7 million Medicaid billing scheme that used illegal kickbacks to lure patients into unnecessary services. The operation billed Medicaid for fraudulent claims between 2018 and 2023. The crime resulted in prison sentences, the permanent closure of facilities, and millions of dollars in fines and seized assets. U.S.
Attorney Ellis Boyle said in a press release issued back on March the 5th, this is shocking Minnesota Somali-style fraud right here in North Carolina. For too long, government has allowed grifters to steal taxpayer dollars with impunity. Here these vultures exploited particularly susceptible drug abusers trying to recover their lives and dignity. Shameful abuse and no remorse. They better learn, and everybody should get the message: cheaters never win.
End quote there, a very strong quote, I'll note from U.S. Attorney Ellis Boyle. In the first two months of 2026, 64 allegations of Medicaid fraud in North Carolina have already been reported to the North Carolina Department of Health and Human Services. Back last year in 2025, more than 386 allegations were reported through the entire calendar year. Brian Balfour, who is the vice president of research at the John Locke Foundation, told the Carolina Journal the Center for Medicare and Medicaid Services reports more than $37 billion in improper Medicaid payments were made last year nationwide.
Noting, however, that's just what they caught. The actual number is probably much higher. Cases like the one that we're talking about with individuals receiving prison sentences in both Kinston and Goldsboro illustrate the most visible form of Medicaid fraud, which is providers billing the program for services that were unnecessary or never provided. But policy analysts say concerns are also emerging around improper enrollment and potential fraud during the sign-up process itself. According to a 2024 report from the Paragon Institute, North Carolina is one of nine states where most Medicaid signups among those reporting income between 100 and 100%.
And 150% of the federal poverty level, exceeding the number of potential enrollees. State officials say that it is important to distinguish who is responsible when fraud occurs, with the North Carolina Department of Health and Human Services saying that fraud by Medicaid members themselves is the least common type compared with fraud involving providers or insurance brokers. It is noted that some instances of ineligible individuals enrolling in Medicaid are attributed to the federal facilitated marketplace known as the FFMD system, according to DHHS. North Carolina determines Medicaid eligibility using a system called either ePass or FFMD on healthcare.gov. The federal system assesses the applicant's eligibility and applies on their behalf.
While a broker assisted in finding Affordable Care Act plans, ACA plans, according to DHHS, in these cases, Medicaid and ACA applications may be processed simultaneously and Medicaid. Medicaid eligibility is not always finalized before the individual chooses a plan through the Affordable Care Act. The report also suggests that brokers and health insurers are contributing to the rise in improper Medicaid enrollment, as only an individual's name, birth date, and address are needed to sign them up for coverage. That's it, just those three fields. They also may have been recently removed from their plan and enrolled in another by brokers who earn commission by doing so, according to recent reports.
We've got an example of these weird enrollment practices in North Carolina. Kevin Eastle, a North Carolina native, says this happened to his family. One of his children has not once but twice been enrolled for Medicaid without his knowledge or consent when he enrolled himself and his family in health insurance plans through the federal marketplace system known as healthcare.gov. According to the Paragon Report, during open enrollment, typically in November and December preceding the coverage year, enrollees sign up for exchange plans. During this period, they likely or themselves with the assistance of a broker work through them on their application with estimating their household income for the following year.
During the 2025 enrollment period, which would have been happening in late 2024, the Istil family enrolled, or Kevin Istel enrolled his family on a plan through the healthcare.gov marketplace. He completed the process of picking a plan, filling out applications, and sending it in just a couple of days before the deadline. About two weeks later, he received a letter saying that he needed to provide documentation that his daughter did not qualify for Medicaid.
However, the letter provided no details on what kind of documentation was needed or who to contact, only that the documentation must be provided or his daughter could lose her coverage. That is when he reached out to a health insurance broker near Charlotte for assistance. The broker resubmitted the application on behalf of the family and sent documentation verifying that none of his children were eligible for Medicaid. At the end of February 2026, he received a notification that someone in his household had once again been enrolled in Medicaid.
So he reached out to the broker again who informed him that there was no way in which he could assist him at this point. This created a very significant rabbit hole process for Kevin Eastle and his family. He went through the process several times in 2024 and was going through them again. During his previous enrollments in Medicaid, he had received repeated notification that either his son or daughter was enrolled for specific plans.
However, he brushed them off as fraud or as automatically generated by the system. After hours on the phone with various agencies following the 2024 enrollment, he was finally able to talk to an employee in Wake County that was able to help him with the process. According to the Paragon report, the incentive to misreport income is amplified due to legal limits on what filers repay when they file their taxes. Due to these limits, the incentives to under-report income is increased, which could very clearly make somebody eligible for Medicaid. This was the primary concern when his children were enrolled in Medicaid without his knowledge or consent.
However, he emphasized to the Carolina Journal that he was not trying to cheat the system and was putting in his income accurately, saying, quote, I don't want to get in trouble. I'm not trying to scam the system.
So I'm very distinctly saying no Medicaid. I didn't sign up for anything. I didn't give anybody any authorization to file paperwork or do anything of the sort. It was a very, very odd that this is all going on through the same marketplace. The North Carolina Department of Health and Human Services already has systems in place to protect against fraud, waste, and abuse, which includes promoting more rigorous screening per providers, conducting audits, monitoring data and analytical systems, and utilizing the Medicaid Fraud Control Unit System to investigate and prosecute Medicaid fraud.
According to federal investigators, they say if an agency receives a complaint of Medicaid fraud or abuse from any source or identifies any questionable practices, it must conduct a preliminary investigation to determine whether there is a sufficient bias to warrant a full investigation. Brian Balfour with the John Locke Foundation said with any massive government program comes extensive fraud and abuse. Unfortunately, North Carolina is no exception, and increases in fraud come along with the rapidly growing Medicaid program courtesy of expansion. Politicians have spent decades promising to clean up fraud and waste in government and social programs.
However, still, the problem continues to cost taxpayers tens, if not hundreds of billions of dollars every single year. A very interesting story on a Medicaid fraud. A great story by our friend Katie Zender over at CarolinaJournal.com. You can check out and read the story with the headline: $12.7 million Medicaid fraud scheme exposes wider program concerns. A t-shirt and jeans, mac and cheese.
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Welcome back to the Carolina Journal News Hour on Charlotte's FM News Talk 107.9 WBT. I'm Nick Craig. Good Thursday morning to you. Well, some interesting news out of the North Carolina Capitol this morning. Governor Josh Stein, Senate Leader Phil Berger, and House Speaker Destin Hall have all announced the formation of a new Blue Ribbon Commission on Public Education.
This was announced on March the 10th, just a couple of days ago, tasking the group with studying the structure and implementation of the state's school system. This is a large body, it is a 30-member commission created via executive order from the governor, and it is charged with examining critical areas of education systems, including teacher training, student achievement, administrative operations, and accountability measures. With the governor saying in the press release on March the 10th, excellent public schools create meaningful opportunities for every North Carolinian to succeed. This commission represents a bipartisan commitment and an opportunity to make North Carolina's public schools the best in the nation. Members of the commission range from legislators and superintendents to business leaders as well as classroom educators.
The group will be co-chaired by Annie Faircloth, who is the president of Buffalo Investments and Lafayette Farms, as well as Dr. Don Martin, who is the chair of the Forsyth County Board of Commissioners. Republican legislative leaders say that the Commission's work is vital for the state's long-term economic health, with Senate leader Phil Berger saying, the educational opportunities in North Carolina open a world of possibilities for our citizens. It is imperative that we continue to work collaboratively to ensure North Carolinians have the skills that they need to enter the workforce. We need everyone, business leaders, educators, and policymakers, to come together to meet the real-world needs of our students.
I look forward to seeing the proposals from this group to suggest and improve education outcomes for all students. Destin Hall, who is the Speaker of the North Carolina House, echoed some of those similar sentiment, noting that the current landscape needs a frank assessment. He said North Carolina has the talent and the foundation to become a national leader in education, and we intend to do just that. By bringing top educators, business leaders, and elected officials to the same table, this new commission will take an honest look at what's working and what is not in our public schools. I look forward to collaborating with them to strengthen schools across our state.
Among the appointees are the University of North Carolina System President Peter Hans, State Board of Education Chair Eric Davis, and several sitting state legislators from both parties. The executive order dictates that the commission may report its findings and recommendations to both the governor and the General Assembly by December the 31st, so by the end of the calendar year. The formation of this group comes as public opinions and thoughts regarding the state's education system still face major problems. A recent Carolina Journal poll back in the month of January showed that 53% of likely voters were dissatisfied with the quality of education in public schools across the state. That compared to only 29% who said that they were satisfied.
That same poll showed that if money were no object, 46% of voters would choose. A private school for their child, while only 30% would select what they deemed a traditional public school. Voters also expressed strong desires for educational alternatives. The January poll found that nearly two-thirds of North Carolina voters supported tax-funded school choice scholarship programs through the Opportunity Scholarship Program or OSP. Additionally, 79% of respondents supported open enrollment policies that allow students to transfer to different public schools within the same district if a new school would provide a better fit for their child.
We will be keeping a very close eye on this brand new 30-member Blue Ribbon Commission on Public Education announced this week by Democrat Governor Josh Stein and Republican legislative leaders Phil Berger and Destin Hall. We'll have continued coverage of that as we continue to watch and see the work from them over on our website, CarolinaJournal.com. That's going to do it for a Thursday edition. WBT News is next. Followed by Good Morning, BT.
We're back with you tomorrow morning, 5-6, right here on Charlotte's FM News Talk, 107.9, WBT. At Verbo, we understand that even the best of plans sometimes need a little support, so we plan for the plot twists. Every booking is automatically backed by our Verbo care guarantee, giving you confidence from the very start. Whenever you need help, it's ready, before your stay, through the moments in between, and after your trip. Because a great trip starts with peace of mind.
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