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After two years and $72 million in spending, Project Kitty Hawk—the University of North Carolina System’s ambitious new online degree startup—has enrolled 639 students in 11 online programs.

Enrollment goals have been cut by half amid changing federal guidance, and a state audit released last month found the UNC System had violated “federal and state laws, rules, and regulations” that require it to monitor the nonprofit.

Its first CEO, Wil Zemp, resigned last April, about three weeks after The Assembly reported on Kitty Hawk. Almost immediately after his departure, the organization launched a review of expenditures. Current leadership has since adopted a stricter business travel expense policy, and in late September, after completing its expenditure review, returned more than $102,000 from purchases it deemed unallowable under its new rules. 

The disallowed purchases include $2,800 to a New Hampshire brewery, more than $21,000 to rent a Chapel Hill apartment, and $25,000 on a black-tie gala in Washington, D.C. It also included $4,250.17 spent at a Miami Ritz-Carlton related to a business meeting that the other party says never happened, as Pam Kelley reports.

A state audit found the UNC System failed to monitor its $97 million technology nonprofit, which has returned $102,000 in federal grant money for payments covering a five-star hotel stay and other unallowable expenses. 


Find Out What It Means to Me

On a windy Saturday afternoon in September, approximately 100 people filled the pews of Asbury United Methodist Church in Durham. But it wasn’t a congregation that gathered under the filtered light of the stained glass windows.

“When I say ‘Bull City!’ you say, ‘Our city!’” said Keith Bullard, a member of the Union of Southern Service Workers. “When I say, ‘It’s time!’ you say, ‘To make Duke pay!’”

The event marked the launch of “Duke Respect Durham,” a campaign to persuade the university to give more money to the city it calls home. Most private universities are nonprofits and largely exempt from the property taxes that fund K-12 schools, public safety, and infrastructure, even as they own large swaths of land and bring in billions in revenue. Duke Respect Durham wants the school to pay the city $50 million each year.

Duke says it already contributes tens of millions of dollars to Durham through taxes and community programs. Duke’s investments have been an economic lifeline for the region, officials say, and are integral to the city’s success.

A New Campaign Asks: Does Duke Respect Durham?

A local coalition is demanding Duke pay the city $50 million a year in lieu of taxes, the latest in long-simmering town-gown tensions.

The debate comes as the university celebrates its 100th anniversary, and highlights a question that has played out across the country: What does a university owe to its hometown?

Have a news tip for our team? You can reach us at scoops@theassemblync.com.


What We’re Reading

Forward Motion: CNN has filed a motion to dismiss North Carolina Lt. Gov. Mark Robinson’s defamation lawsuit against the cable news outlet, per Carolina Journal.

IDK: This year was the first presidential election under North Carolina’s new voter ID requirement, and it had much less impact than many expected, the New York Times reports.

Honored to be Nominated: Auditor-elect Dave Boliek told The N&O that he did not seek the new powers over the State Board of Elections that legislators voted to give him.

Doge Eat Doge World: The Triangle could see thousands of job cuts by the federal government as part of Elon Musk’s and Vivek Ramaswamy’s plan to slash what they deem to be wasteful spending, Axios reports.


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