21 ways to save

by Becki Gray, John Locke Foundation and NC SPIN panelist, February 5, 2015.

Shortly after Gov. Pat McCrory’s State of the State Address — probably before the end of February — he will follow the requirement in the state constitution to send comprehensive budget recommendations to the General Assembly, beginning North Carolina state government’s budget process.

The state’s economy should continue recovering, with modest but steady growth. The expected state General Fund budget will be in the neighborhood of $21 billion. Tax reform has spurred economic growth and lower unemployment, and increased state and personal income.

Yet revenue is only half the picture — the other half is spending. Government is more efficient and cost-effective thanks to recent spending reforms. Further spending reforms are needed to ensure state government’s core functions are adequately funded, efficient, cost-effective, and fiscally responsible.

Here are 21 suggestions for spending reforms in the 2015-17 General Fund budget:

1) In 2012-13, universities received $229.3 million in overhead receipts. A report of the latest numbers is due to the General Assembly March 1. All or a portion should be returned to the General Fund.

2) Last year a 10 percent budget reduction to the Department of Public Instruction resulted in elimination of five full-time and 48 vacant positions in an agency with over 1,100 employees. Every position should be evaluated for its impact on student performance. A 30 percent cut to DPI is realistic.

3) Consolidate community colleges, merge programs for better efficiency and quality, privatize some operations like administrative and custodial services, consolidate work force training programs, and create a joint purchasing consortium.

4) Instead of spending $1.4 million to equip four school buses per district with safety cameras, contract the service to a private company providing equipment and monitoring. Fund the program from penalties collected.

5) The UNC Board of Governors is looking at 34 of 240 policy and research centers on the state’s college campuses. Withdraw taxpayer funding from those not performing a core function of government.

6) Withdraw state funding from any nonprofit unable or unwilling to raise privately at least 25 percent of its operating costs.

7) Eliminate all positions in the Department of Health and Human Services that have not been filled for more than the last six months.

8) Reduce food stamp spending by $100,000 per year — the average in excess benefits paid over the last three years. Clean up the program to avoid wasting taxpayer money.

9) Cut General Assembly overhead costs by 10 percent. Set a good example for the rest of state government.

10) Privatize as many Department of Transportation operations as possible, using independent contractors for maintenance functions. Maintain a core group of highway inspectors at the supervisor level, and privatize the others.

11) Take stock of all DOT equipment and machinery. Keep only what is necessary to get the jobs done, eliminate vanity items, and sell the rest.

12) Consolidate or eliminate underused express bus services. Use taxi service to fill the need.

13) Nonprofits pay no sales tax on property and some operating expenses. Hospitals got $300 million in sales tax refunds last year. Restore an earlier Senate proposal capping sales tax refunds to nonprofits at $100,000 yearly.

14) Trim the attorney general’s budget by 20 percent. If Roy Cooper is not going to defend the state’s laws vigorously, his agency can handle a cut.

15) Adopt McCrory’s procurement transformation project, promising savings of $10 million a year. Expand it, and save even more.

16) Consolidate Department of Environment and Natural Resources district offices, eliminate duplicative administrative functions, and cut redundant field offices.

17) Repeal the waiver giving anyone receiving Medicaid, food stamps, or Work First Family Assistance a free fishing license and require every resident to pay the same $15 annual fishing license fee.

18) The state spends $342 million each year to manage operation, purchase, and maintenance of school buses. There’s no incentive for counties to find more efficient routes and save money. Introduce incentives for counties to operate at maximum efficiency. Consider the costs and benefits of bus replacement and maintenance rather than a blanket 250,000-mile replacement policy.

19) How many legislative liaisons does each state agency need? More than one per agency sounds excessive. The number of public information officers per agency could be cut, too.

20) Sell Jennette’s Pier, the state helicopter, ABC stores, and the zoo.

21) Follow a recent recommendation by State Auditor Beth Wood to consolidate the Board of Opticians with another agency such as the Board of Optometry, saving $65,000 in rent and administrative costs. Better yet, do away with the licensing of opticians entirely.

This is just a start. Where would you reform spending? Let me know.

http://www.carolinajournal.com/daily_journal/index.html