June 15, 2011
Click here to view and here to listen to Dr. Michael Sanera discussing the City and County Issue Guide.
RALEIGH — Local governments will serve their communities best by focusing on core government functions, limiting spending and taxation, and protecting private property from unnecessary government intrusion. Those are key principles driving recommendations in the John Locke Foundation’s new City and County Issue Guide 2011.
The new guide arrives as local governments prepare for the new budget year that starts July 1. Candidates also are preparing to run for municipal offices across North Carolina.
“This guide covers topics ranging from taxes to transit, from smart growth to stadiums, from education to eminent domain,” said Dr. Michael Sanera, JLF Director of Research and Local Government Studies. “The common thread in the recommendations for each of these topics 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.”
The 40-page guide addresses 18 of the most important topics local governments must address. It tackles services local governments provide, steps those governments take to fund their services, and government policies that restrict land use and property rights. Sanera and the JLF research staff analyze key challenges linked to each topic.
For example, one section calls for local governments to follow four principles when developing land-use policies.
“First, modern land use must be based on simple rules that allow individuals to pursue their own plans for using their land,” Sanera said. “Second, decisions should be depoliticized. Third, local governments should avoid impact fees and adequate public facilities ordinances, which create rather than solve growth-related problems. Fourth, land-use policies should re-establish the rule of law.”
The issue guide also recommends that local government turn to voters before deciding to take on additional debt. “Local governments should put all debt to a referendum vote concurrent with a general election or primary election,” said Joseph Coletti, JLF Director of Health and Fiscal Policy Studies. “Before that vote, governments should report the full financing costs and expected repayment plan. Local budgets and financial reports should include a full accounting of debt.”
Another section warns local governments against targeting businesses for special subsidies. “Targeted tax breaks, cash grants, and other special deals for government-selected businesses burden other local businesses and citizens with the cost of those subsidies,” said Dr. Roy Cordato, Vice President for Research and Resident Scholar.
“Local governments should focus instead on making their communities conducive to economic growth and business investment by keeping property taxes, sales taxes, and business regulations and fees low,” Cordato added. “They should avoid implementing new taxes, and they should focus on essential government services — such as providing reliable sources of water and transportation — that accommodate the work force’s desired lifestyles and industry’s needs.”
Five simple rules should limit local governments’ use of eminent domain powers to take property away from private owners, according to the Issue Guide.
“Make sure no alternatives exist,” said Daren Bakst, Director of Legal and Regulatory Studies. “Negotiate in good faith. If a government plans to take property, take it for a ‘public use’ only. Do not take property directly or indirectly for economic development. Avoid economic development takings because they actually hurt economic development.”
Several key principles also can help county governments make better decisions about funding school-related programs. “Local government appropriations to school districts should be tied to performance-based measures and innovative practices that ensure sound expenditure of local tax dollars,” said Dr. Terry Stoops, Director of Education Studies.
“Local governments should monitor school appropriations closely and measure the effectiveness of the funding,” Stoops added. “Local governments should pay special attention to spending on school district personnel. The school budget process should be as transparent as possible. Plus local governments should minimize the amount of debt incurred for school capital expenses.”
The City and County Issue Guide complements JLF’s annual By The Numbers report, which ranks cities and counties based on the costs of running local government.
“Voters and taxpayers can use the Issue Guide as a resource when they question local government costs,” Sanera said. “Elected leaders can use the Guide to find savings. By following the Guide’s recommendations, local governments can limit the unnecessary growth that encroaches on freedom and digs deeper into taxpayers’ wallets year after year.”
The John Locke Foundation’s “City & County Issue Guide 2011” is available at the JLF website. For more information, please contact Sanera at (919) 828-3876 or [email protected]. To arrange an interview, contact Mitch Kokai at (919) 306-8736 or [email protected].