| Legislative
Bulletin |
September
28, 2001 |
 |
NCCBI’s
call for government efficiency study
makes headway with special budget provision
NCCBI
was pleased when the General Assembly, in a special provision
included in the state’s two-year budget adopted last year,
heeded the association’s call for a study to discover
additional ways of improving government efficiency. NCCBI has
applauded the nearly $800 million in spending cuts implemented
by the governor and the General Assembly.
The provision states: “The Appropriations committees of the
Senate and House of Representatives may convene at least once
a month during the interim period between the 2001 General
Assembly and the 2002 Regular Session of the 2001 General
Assembly to study the structure, duties, and functions of the
various agencies and programs of state government. The review
by the Appropriations committees shall focus on ways to ensure
that State government functions efficiently and to generate
cost savings to the citizens of the State. The Appropriations
Committees shall apply zero-base budgeting principles in
evaluating the fiscal functions and funding needs of State
agencies. The Appropriations Committees shall consider the
recommendations of the Governor’s Efficiency Commission and
shall evaluate the feasibility of consolidating, eliminating,
transferring, or privatizing certain State programs,
operations, or entities where there is duplication of services
or functions or where the functions being performed are not
cost-effective.”
Easley
takes quick steps to tighten spending
Concerned
that state tax revenues aren’t coming in at the 4 percent
growth rate anticipated in the new budget, Gov. Mike Easley on
Thursday put in place some accounting tricks that will hold
down expenses in the short term and he took a bold step to
improve the state’s liquidity.
To make sure he has plenty of financial wiggle room should
state revenues fail to grow as much as planned, Easley said he
will maintain his earlier freeze on $142 million he withheld
from the state retirement system during the February budget
crisis in February. He also said he will dole out monthly –
rather than quarterly – funding for state agencies. The
governor also said he will continue the freeze on hiring new
state employees and maintain strict limits on travel expenses
by state employees.
Easley’s decision to sit on the $142 million earmarked for
the state employee’s retirement account isn’t sitting well
with State Treasurer Richard Moore. Moore says it’s his
fiduciary responsibility to ensure that the state fully funds
the retirement system, and he’s threatened to sue the
governor if he doesn’t release the money soon.
Return to Page One
|
|
|
