Policy Report

By the Numbers 2002: What Government Costs in North Carolina Cities and Counties is a publication of the Center for Local Innovation, a division of the John Locke Foundation. Its purpose is to inform North Carolinians about their local governments and promote debate and discussion about the future of city and county fiscal policy in North Carolina. It is not intended to advance or impede legislation before local, state, or federal lawmaking bodies.

Author Jon Sanders studies professor salaries across the United States and finds that the pay of North Carolina's college and university professors, when adjusted for cost of living, is comparable to the pay of faculty in other states. (Not available online.)

Summary: The University of North Carolina Board of Governors has proposed a capital spending plan calling for nearly $5 billion over the next decade to modernize and expand the system. To pay for it, UNC wants the authority to raise funds by the issuance of two kinds of bonds that would not be subject to voter approval. While there is undeniable need to renovate academic buildings, taking care of the worst needs over the next four years would cost about $1.1 billion and could be handled through the existing budget process if repair and renovation were made the top university priority. The need for a large-scale construction program is dubious and does not require the use of non-voter-approved bonds.

North Carolinians deserve a complete and accurate picture of how their public schools are doing relative to rigorous national and international academic standards. The state's current accountability system, the ABCs of Public Education, is a good first step but needs improvement to increase the reliability and usefulness of information provided to parents and taxpayers.

North Carolina's public school leaders are touting rising scores on state tests to prove that things aren't as bad as critics complain. However, the current method of calculating school performance misleads the public. The emphasis on "growth" shifts attention from true student achievement to a manufactured "feel-good" measure.

Author Doug Bandow looks at the ways in which government intervention into the provision of electric power has harmed consumers, and he recommends ways to make the system more competitive. (62 pages-not available online.)

Homeownership is a vital component to a stable society and a thriving economy. It is a well-known presumption that owning a home gives an individual a stake in his or her society. For example, according to a recent study by scholars at the University of Chicago and Harvard University, homeowners are 10 percent more likely than renters to work to solve local problems. Another consideration is that homeownership is also the most common form of savings for the average working family. A home is typically the largest investment most families have. By Jonathan C. Jordan and Michael Lowrey

North Carolina faces significant fiscal and economic challenges over the next two years. But it need not resort to higher taxes, a state-run lottery, higher debt, or gimmickry to balance its budget. Nor does North Carolina need to skimp on crucial needs such as education and highways. By setting firm priorities within state government, eliminating unnecessary or duplicative programs, and charging users of some services a reasonable price, state leaders can generate sufficient savings to invest in the future needs of the state.

Author Charles J. Sykes identifies a growing crisis in North Carolina higher education and suggests reforms to reward teaching, improve curriculum, and to spend scarce resources better. (40 pages-not available online.)

North Carolina has reached a crossroads in the delivery of mental health services. After decades of escalating budgets and haphazard growth, years of costly and controversial study, and promises to act that have yet failed to materialize, the state’s mental health system continues to suffer from a host of systemic problems. Only fundamental change in the structure and funding of the system will improve outcomes for patients and taxpayers.