iRALEIGH — Gov. Mike Easley announced on Wednesday the creation of a standing committee of North Carolina business leaders who would advise him and the rest of state government on budgetary issues. This is a good idea — but not a great one.
Let me explain. In 2001 and 2002, the governor selected panels of corporate and civic leaders to come up with ideas for streamlining state government, improving its operations, and identifying issues to address in the state’s archaic tax code. The results were useful. Particularly in the case of last year’s budget-reform commission, headed up by First Citizens Bank executive Jim Hyler, the effort generated recommendations well worth pursuing, such as reforming the state employee health plan, refashioning the relationship between the state and localities, and rationalizing the administration of state agencies. Hyler is slated to serve on the new committee, along with a number of key corporate leaders in the banking and utility sectors.
A permanent panel will accomplish far more than a time-limited one, as well. Experience in other state suggests that having a state committee or agency charged with the task of finding and implementing budget savings and efficiency is a necessary condition for fiscal restraint. Without such a sustained and institutional presence on behalf of taxpayers, spending lobbies will usually prevail due to their superior knowledge of the system, access to policymakers, and disproportionate political pull.
So why isn’t Easley’s idea of a business advisory panel a great one? Because, based on the performance of the past two years, its purview is likely to be too limited. Hyler’s previous panel, for example, was charged only with devising ways of carrying out current state responsbilities more efficiently. It was not allowed to question policy decisions — should the state be in a certain business at all? — and so was forced to work around the edges of problems that cried out for a more direct solution.
Some years ago, when the GOP was briefly in charge of the North Carolina House, Rep. Rex Baker and other members pushed for the creation of a permanent state agency to pursue opportunities for efficiency, reorganization, and privatization within state government. Shortly thereafter, the political winds shifted, and the office was abolished.
This time around, any serious effort will start out with broad bipartisan support and with a mandate to recommend not only different ways of untying North Carolina’s fiscal Gordion Knots, but also, on occasion, Alexander the Great’s brilliant solution of a good clean swipe with a broadsword. Remember, this committee can’t actually make policy. Any recommendation it comes up with would have to pass muster with the governor and the General Assembly before it could be carried out. Why not, then, free the members up to study and proposed solutions for whatever relevant problems they wish?
That’s the way to turn a good idea into a great one.
Hood is president of the John Locke Foundation and publisher of Carolina Journal.