|
 Easley
appoints former governors
to blue-ribbon commission charged
with finding $150 million in tax loopholes
Gov.
Mike Easley on Thursday appointed former governors Bob Scott
and Jim Holshouser to help lead a commission that will try to
raise $150 million in additional state taxes by closing
loopholes in current tax law. Scott and Holshouser will serve
with former state treasurer Harlan Boyles, the other co-chair
of the N.C. Efficiency and Loophole Closing Commission.
In addition to raising taxes by $150 million, Easley also said
he hopes to generate $300 million from spending cuts and
savings by state agencies and another $25 million in savings
through efficiency measures.
Easley directed the commission to concentrate its work in two
areas: 1) assessing ways in which state government can
generate savings by operating more efficiently, with an
emphasis on savings realized through the increased use of
technology; and 2) assessing strategies to limit revenue
loopholes that lack sufficient justification in light of the
current budget shortfall.
Easley also
tried to define what he meant by a loophole: “While they are
looking at making government more efficient, I have also
directed them to examine the state’s current revenue
structure with an eye towards closing loopholes that lack
sufficient economic justification. If a preference does not
help working families or keep North Carolina competitive, we
must look at recouping that revenue for the taxpayers."
The state
is facing a $791 million shortfall for the current fiscal year
and a projected $500 million revenue shortfall for 2001-02.
Scott and others said the commission would have to be careful
that eliminating tax preferences doesn't prompt industries to
move from N.C. Scott, governor from 1969-73, blamed tax cuts
passed in the 1990s for the state's budget problems. But
Holshouser, who followed Scott as governor, said it was hard
to blame budget cuts when state revenues continued to grow.
Easley said the commission will begin work on March 15 and
issue a report by April 15. In addition to Boyles, Scott and
Holshouser, he announced nine other members: former First
Union CEO Ed Crutchfield; former state Rep. George Miller
(D-Durham), former state Commerce Secretary Rick Carlisle;
Guilford Mills CEO Chuck Hayes; Dan Gerlach of the N.C. Budget
and Tax Center; UNC Board of Governors Chairman Ben Ruffin;
Darlene Johns, president of Alphanumeric Systems; former Wake
County Manager Richard Stevens; and Barbara Matula, former
director of health care services for the state Department of
Health and Human Services.
"We are looking at
every opportunity for savings," said Easley. "I am
confident that by looking at short-term and long-term options,
we can balance the budget and provide services more
efficiently for taxpayers."
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