On the heels of a Republican takeover of the North Carolina General Assembly in November, Democratic Gov. Bev Perdue rolled out a broad-ranging plan to overhaul state government in an effort to reduce waste and fraud.

The big question mark, though, is whether it’s window-dressing or the forerunner of substantive change. So far, Republicans, who officially will take over the legislature Jan. 26, give the governor high marks for her approach.

“It’s a good plan,” said Rep. Norm Sanderson, a freshman Republican from Pamlico County. “It’s probably the first time that she’s been able to do that, with the change in leadership in Raleigh. I don’t think her plan would’ve flown very well with a Democratic majority.”

Incoming House Majority Leader Paul “Skip” Stam, R-Wake, also praised the revamp. “Overall, it’s a great idea,” he said. “It’ll save a couple hundred million [dollars] a year, and that’s a good thing. It doesn’t solve our budget problems, but it helps.”

Perdue and the incoming GOP majority — the first since Reconstruction — face a projected $3.7 billion budget deficit this year. Over the last two decades, inflation-adjusted spending has grown 1.5 times faster than population in North Carolina. Between the 2001 and 2011 fiscal years, the state budget has grown 46 percent.

Experts predict that hefty cuts and employee layoffs are imminent. A large chunk of the deficit is due to disappearing federal stimulus funds and more than $1 billion in expiring tax increases, stopgap measures that legislative Democrats used to stem the fiscal pain during the past few years.

Overhaul plan

As part of a strategy to reduce the budget, Perdue unveiled a state-government revamp in December. Among other changes, the proposal would merge the departments of Juvenile Justice, Corrections, and Crime Control Public Safety into one department, and the Department of Commerce would absorb the Employment Security Commission.

In addition, the Department of Administration would subsume Information Technology Services, the Office of State Personnel, and the Controller’s Office.

In moving ITS under the umbrella of the Department of Administration, “up to 100 computer service units will be closed and a private company will contract with the state to consolidate IT services into a centralized location, saving money and providing better service,” a press release from Perdue’s office said.

Perdue’s reforms would also cut “back office functions,” such as human resources, purchasing, training, and administration. In addition, Perdue called for a hiring freeze of non-critical positions in state government agencies, and she asked the legislature to review, and potentially revamp, 150 of the state’s 400 boards and commissions.

More details won’t be available until Perdue releases her budget, which could happen as early as February.

“State government must seize this opportunity to become a more streamlined, focused enterprise,” Perdue said in a statement. “We must be leaner, more nimble, more responsive to citizens and less bureaucratic as we focus our limited resources on our core missions.”

Independent of her reorganization plan, Perdue has requested budget cuts of up to 15 percent for state agencies. She’s also asked the new Republican-led General Assembly to take redistricting out of partisan hands by creating an independent commission and to impose session limits on the legislature, two ideas long championed by Republicans when they were in the minority.

GOP rejoinder

Sanderson said he would like to see other areas of state government, beyond what Perdue outlined in her plan, consolidated.

“State government is going to have to be run like any other Fortune 500 company. When things get difficult in tough times, you’re going to have to cut back,” he said.

Some Republican lawmakers are wary of the proposal. State Sen. Andrew Brock, a Republican from Davie County, compared the situation to the 1946 film It’s a Wonderful Life.

“Everybody panicked, and old man Potter got rich off everybody,” Brock said. “I see it the same way now with the budget being in such bad shape. I hope the General Assembly doesn’t panic and give the governor too much power. If you look at her history of writing the budget for the state, I don’t trust her financial judgment.”

Republican leaders have said their legislative priorities will be twofold — balancing the budget and drawing district lines for the new decade. Second-tier goals, among others, are to pass legislation that would require citizens to present valid identification cards prior to voting, and approve a bill to exempt North Carolina from mandates under the new health-care reform law.

Perdue’s politics

Perdue’s reorganization plan dovetails with her political strategy leading into her re-election campaign in 2012. A troubled economy has soured polling numbers for Perdue; her approval rating dipped to 25 percent before reaching the mid-30s by the end of last year.

If Perdue had faced a re-election campaign in 2010, it’s doubtful she would have staved off a Republican challenger. A Civitas Institute poll from late December gave 2008 GOP gubernatorial candidate Pat McCrory a 51-36 percent lead over Perdue in a head-to-head match for governor.

On Nov. 4, the GOP gained 16 seats in the House and 11 in the Senate. That gives Republicans a near veto-proof majority in the Senate, but not in the House.

So far, Perdue’s proposed government revamp is polling well with citizens. A survey from the Democratic-leaning firm Public Policy Polling found that 50 percent of North Carolinians approve of the plan, compared to 23 percent who oppose it. The poll found slightly stronger support among Republicans than Democrats — 52 percent to 50 percent.

N.C. State University political science professor Steven Greene said that Perdue’s chances in 2012 primarily hinge on how well the economy recovers and how nimbly she negotiates with Republican lawmakers

“The rubber will hit the road when Perdue has to actually work out compromise on legislation with the GOP-controlled legislature,” Greene said. “Certainly, her willingness to make some cuts and reorganization makes it more likely that she will have successful compromises. If she does and the economy picks up, she’ll be in good shape in ‘12.”

David N. Bass is an associate editor of Carolina Journal.