Business incentives are like lottery tickets, providing big rewards for governments if you don’t count the costs. Iredell County modeled the financial costs and benefits of an incentive offered in 2009 and showed a positive net present value for the incentives, but neglected to factor in the opportunity cost of forgoing the next best use for the funds and the likelihood the investment would have happened without an incentive.
The final budget for fiscal year 2011 spends $20.56 billion, $153 million more than the budget for fiscal year 2010. General fund availability in fiscal year 2011 excluding federal funds is $17 million less than was available in fiscal year 2010. A $7 billion shortfall (accounting for federal bailout funds, temporary taxes, pensions and retiree health benefits, etc.) in a $20 billion General Fund requires fundamental reform of state government.
North Carolina Attorney General Roy Cooper decided not to join a lawsuit challenging whether the recently enacted federal health care bill is constitutional. The Attorney General's legal analysis used to justify not taking action avoided the primary legal questions regarding the law's constitutionality.
Governments have been seeking ways to adopt or advertise their efforts at open government, sunshine, and transparency. Recent history is rife, however, with examples of how they have failed - such as Gov. Mike Easley's financial dealings and the hole in the state health plan.
Open government is just as important in a modern republic as it was two centuries ago. Larger bureaucratic states threatened to overwhelm the ability of citizens and their representatives to keep track of government.
In North Carolina, the government can invoke eminent domain and seize private property even if reasonable alternatives exist to using this power. A recent Senate bill (SB 600) would allow conservation easement holders to challenge takings in court by requiring the government to prove that no prudent and feasible alternatives exist to condemnation of properties encumbered by conservation easements.
North Carolina’s public schools continue to add administrative, non-instructional, and instructional support positions at rates that far exceed enrollment growth. Since 2000, North Carolina’s public school student enrollment (Average Daily Membership) has increased by approximately 13 percent, while school personnel has increased by nearly 18 percent.
North Carolina’s pupil/staff ratio decreased from nearly 8:1 in 2003 to just over 7:1 in 2006.
Even those commission members who would have wanted a proper definition of “meaningful services” had to oppose the weak definition provided to them by the legislative staff. The chair prohibited commission members from amending the definition.
The recommendation was so weak that it would have allowed municipalities forcibly to annex areas without providing water and sewer service.
North Carolina's little-known Beach Plan imposes an enormous fiscal liability on the state. Intended largely to provide windstorm insurance for coastal residents unable to find coverage elsewhere, the Plan has grown to become one of the nation's largest entities of its type.
posted November 17, 2008 by Dr. Terry Stoops, Joseph Coletti, Dr. Michael Sanera
During policy discussions, much is made of the greed of private individuals, but rarely is government greed mentioned. Government greed is the lust for power that consumes policymakers — the desire to do whatever it takes to stay in power and to give government more power. In the North Carolina legislature, government greed is alive and well. Ten policy examples discussed in this report reasonably attest to this lust for power.
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