Letter from Phil Kirk

Let's Implement the Efficiency Commission Plan

Government should be run like a business. How many times have you heard that? Largely as a response to the state’s financial crisis, Gov. Mike Easley early last year appointed the Commission to Promote Government Efficiency and Savings on State Spending. He selected NCCBI’s current chair, Jim Hyler, to lead the effort. Included on the 16-member group were Bill Coley, NCCBI’s second vice chair; Darleen Johns, NCCBI executive committee member; Watts Carr, NCCBI board member; and Rep. Bill Owens, Sen. Tony Rand, Ken Lewis, Phil Carlton and Tyler Fitzgerald, all NCCBI members.

The work of two major initiatives in this area from the ‘70s and ‘90s were used — Gov. Jim Holshouser’s Efficiency Study Commission that brought 75 business people to Raleigh for 10 weeks and the Government Performance Audit Committee (GPAC).

The commission has completed its work, as required by the Governor’s Executive Order. Its report lists many broad recommendations designed not simply to save money (although that is very important!), but to make government more efficient. There are no dollar figures attached to the recommendations.

However, savings of more than $25 million were realized through recommendations adopted by the Commission and the 2002 short session of the legislature in such areas as utility billing and usage, accounts receivable collection, contract renegotiations, motor vehicle enforcement and an efficiency grant program.

The commission was organized into three subcommittees — the Processes of Government, the Structure of Government and the Capital Management subcommittee.

Contained in the personnel recommendations are some controversial political issues. Examples include: the elimination of automatic special pay increases for members of the Highway Patrol, magistrates and some other court officials; prospectively eliminate longevity pay and instead reward excellent performance (a great idea!); allow more retirees to return to work without penalty; change some retiree benefits to mirror more realistic practices in the private sector; modernize personnel practices and administration; and reduce the number of employees. There are many suggestions for moving state government into the 21st century on a number of technology issues. Improved revenue collection and taxpayer compliance would result if several recommendations were implemented.

Considerable attention is given to privatizing additional state government services — a much-needed change that will likely incur the wrath of officials of the state government employees association. There are various shifts proposed from state oversight to local oversight, along with a number of common sense consolidations. These historic “turf issues” will result in considerable debate. Funding only one K-12 school administrative unit per county should be easily adopted, but it will take political courage by the legislature to do this.

Selling certain state properties, improving state aircraft operations, centralizing regional operations and closing some, and reducing the scope, size and numbers of boards and commissions are among the other suggestions. Zero-based budget, along with budget flexibility and incentive to control costs, are among the more positive recommendations.

The commission urges the State Budget Office to require agencies and departments to draw up an implementation plan within 120 days. The governor asked for specific follow-up by state agencies by Feb. 14. It also suggests the creation of a permanent independent entity to continue this important work.

Gov. Easley must be a forceful and enthusiastic leader on these issues if they are to be implemented. Absent that strong, visible advocacy, the hard, focused work of this commission will be another dust-gathering report on the bureaucrats’ shelves.

The business community must demand action from its public officials or state government will continue to muddle along, doing as well as it can under archaic practices and irregular, inconsistent funding patterns. North Carolinians deserve better than that!

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