The North Carolina Senate on passed legislation on April 8 to create a state-level department to tackle government waste and inefficiency, but a separate House proposal to expand the state auditor’s authority is raising questions over its scope and potential impact on private entities that receive public funds.

The DAVE Act passed the Senate floor in a 29-17 vote, with the support of all Republicans and one Democrat. The proposal would establish the Division of Accountability, Value, and Efficiency (DAVE) within state Auditor Dave Boliek’s office.

The bill requires each state agency to report to the division on how it spends taxpayer funds and detail all positions that have been vacant for at least six months. The state auditor will then report back to the General Assembly about whether any state agencies or offices should be dissolved and whether any positions should be eliminated.

“Funds sent to state agencies come out of the pockets of North Carolinians,” Senate Leader Phil Berger, R-Rockingham, said. “Requiring a review of state agency operations and staffing is the right thing to do to ensure that those tax dollars are not wasted.” 

The General Assembly would make final decisions on any needed cuts and changes based on the state auditor’s review.

During a committee meeting last week, Berger said the bill will need to be incorporated into the budget because it calls for the creation of additional positions within the auditor’s office.

“Empowering the state auditor’s office to do a full deep dive into state spending will shed light on what is and isn’t working at our state agencies,” said co-sponsor Sen. Steve Jarvis, R-Davidson. “In an era of increased focus on efficiency, this review will do a lot to help reassure our citizens that their tax dollars are being put where they are needed.” 

Democrats offered amendments and comments in opposition to the bill during a floor debate, arguing that the effort would force people out of their jobs.

“Are we creating an environment that encourages retention, or are we pushing people out by making them justify their jobs and their departments, which this bill does?” said Sen. Sophia Chitlik, D-Durham. “And that’s exactly what Elon Musk has done at DOGE. Our state and our state employees deserve better than that.”

The bill now awaits consideration in the House, where another proposal to give the state auditor additional authority was also advanced, amid bipartisan concerns from lawmakers like Rep. Hugh Blackwell, R-Burke, and Rep. Pricey Harrison, D-Guilford.

House Bill 549 would give the auditor broader access to state agencies’ databases, digital records, facilities, and property. Access would also be extended to private entities handling public funds or involved in government programs. That means any entity that receives state or federal funds would be subject to the review of the state auditor.  

“The Auditor and the Auditor’s authorized representatives may examine all books and accounts of any individual, firm, or corporation only insofar as they relate to transactions with any agency of the State,” the bill reads.

Questions remain over the broad House proposal, which could potentially threaten to undermine private-public partnerships. From farmers to churches and hospitals, countless entities accept federal or state funds for things like farm subsidies, shelters, and Medicaid, which means the auditor would be allowed to audit them.

As House Republicans seek to expand the auditor’s abilities, critics have called for further clarity in the drafted bill. During the House Judiciary 1 Committee on April 8, legislators offered many questions and expressed a willingness to amend the bill.