WILMINGTON – As I prepare for a speech tonight at UNC-Wilmington – an event that kicks off our statewide “Freedom Agenda 2002” tour (see here) – I can’t help thinking about a momentous decision that faces leaders of this community. According to a recent report in the local newspaper (see here) the New Hanover County Commission is considering the idea of joining with Cabarrus and Alamance counties in a lawsuit against the Easley administration. I hope they do it.
The issue, in case you’ve missed it, is the governor’s decision to seize tax sharing and reimbursement funds due city and county governments. His reasoning was that the state’s fiscal crisis demanded resolute action, and that as director of the state budget he had broad authority to shift money around to meet budgetary emergencies. Localities answered, I think correctly, that the governor does enjoy broad discretion over the state budget, but that these items aren’t really “on-budget” expenditures at all but are off-budget transfers of revenues directly to the jurisdictions to which the revenues belong (the state is acting merely as a collection agency).
After the administration’s initial seizure of funds, I thought that the state’s mayors and county commissioners responded with statesmanship and diplomacy. The results of their efforts consisted of a sneering dismissal of their suggested budget-savings alternatives by a mid-level staffer. Essentially, the Easley administration told them to go jump.
At this point, the only way for local officials to regain their bargaining position is to take a leap – into the legal arena. Experienced counsel has stepped forward, the issues are relatively clear, and other counties have already started the process. If New Hanover becomes another plaintiff, I think we might see the beginnings of a statewide revolution against fiscal mismanagement in Raleigh.
It’s well past time.