The 2015 session of the N.C. General Assembly convenes this month. Republicans again have supermajorities in both chambers, holding 74 of the 120 House seats and 34 of the 50 Senate seats.
They will meet to organize on Jan. 14 and then begin the real work Jan. 28 to adjourn at a date yet to be determined. What will they do in the months ahead?
Since 2011, conservative, free-market reforms have changed the direction of our state. The focus shifted to creating jobs and expanding the economy. We’re seeing results.
Comprehensive tax reform has lowered rates, job-killing regulations have been repealed, public schools are more accountable, school choice has expanded, infrastructure funding is based on need rather than political favors, and the state’s fiscal house is in order.
We have an improving economy, hundreds of thousands of new jobs, and a government accountable to taxpayers. The state is headed in the right direction. Lawmakers should not back down on any of these reforms.
The new year will bring additional opportunities to streamline government. More services need to be privatized. Further reductions in layers of bureaucracy and consolidation of programs make sense. When presented with a choice of expanding or shrinking government, legislators should choose the latter every time.
Unwise actions by past legislatures and tough economic times have depleted the state’s savings accounts. Any additional revenue for the next two years should be reinvested as savings. Every state agency should be required to adopt zero-based budgeting, going back and justifying every line item of spending rather than using last year’s expenditures as the starting point for next year’s budget.
Major new tax reforms may need to wait until the economy recovers further and revenues stabilize. However, two adjustments would bring investments in line with the goals of the reforms — increasing the per-child tax credit would encourage investment in human capital, and repealing the capital gains tax would eliminate double taxation on savings and investments.
Following last year’s landmark teacher pay raise, the focus moves from how much teachers are paid to how teachers are paid. A performance-based compensation system rewards the best teachers and ensures every student has an opportunity to succeed.
Many families also find options outside the traditional district schools best meet their needs. Charter schools need to continue to flourish, and vouchers should be available to more disadvantaged students.
To ensure low energy costs and sustain economic growth, the General Assembly needs to repeal the renewable energy portfolio standard that requires 12.5 percent of our energy supplies to come from expensive renewable sources. Hydraulic fracturing is on track, with rules to be completed in early 2015 and permits issued in early spring. Exploration of new energy sources should be encouraged, bringing with it increased economic activity and high-paying jobs.
Medicaid accounts for 18 percent of our state budget. It is the fastest-growing and most unpredictable part of our budget. Patients who receive their health care under Medicaid do not experience positive heath outcomes.
Medicaid reform should focus on quality, low-cost care that produces positive outcomes for patients. A full audit should be conducted to root out any fraud and abuse in the system.
Lawmakers should request waivers or block grants from the federal government to allow North Carolina to develop programs that best meet our needs. A more patient-centered program would allow patients to craft their care to best meet their individual needs, allow competition, and infuse accountability.
Some states have taken the bait from the federal government to expand Medicaid under Obamacare with promises that Washington will pay almost all the bills for the new enrollments. North Carolina has resisted and should continue to do so.
There are too many uncertainties to take action now. A new Congress is about to convene, the U.S. Supreme Court could gut much of the law, and a new president will be elected in 2016. We need to wait and see what direction the federal government takes on health care reform before even considering the expansion of Medicaid.
The General Assembly can expand free-market health care by repealing our onerous certificate-of-need law, which lets state-level bureaucrats decide when medical facilities can be expanded. North Carolina has one of the most restrictive certificate-of-need laws in the country. This system impedes competition, limits access to care, and drives health care costs up. Many states have done away with their certificate-of-need laws, and we should do the same.
The 2015 legislative session brings challenges and opportunities. Legislators should stay the course, continue reforms, and keep North Carolina on track to economic prosperity.
Becki Gray (@beckigray) is Vice President for Outreach at the John Locke Foundation.