At a crossroads
It’s time for all of us to expect less of government

By Harlan E. Boyles
I am honored to be asked to offer some parting thoughts as I leave the office of State Treasurer, after 24 years in this capacity and before that, 16 years as deputy treasurer to the late State Treasurer Edwin Gill, my mentor, my friend, and truly a great North Carolinian. Altogether, it has been my great privilege and honor to serve the people of North Carolina some 49 years, for which I am indeed grateful and humbled.  

North Carolina is a great state, primarily because of our people. We have a well-deserved reputation for our industry, our thrift, our diligence and our resourcefulness. Because of this, we have witnessed much progress in the past half-century. Once termed the most deprived region in the nation, because of poverty and limited economic opportunities, today, we lead the nation in almost every measure of modern life especially as the most prosperous and most desirable region in which to live. Our roads are better. Our schools are better and continuing to improve. Our medical facilities are far superior today. Our people have accumulated a great deal of wealth.

The question for us now, and especially for those who will carry on, is whether we can sustain this great era of unprecedented growth and prosperity. I believe we can; however, we are going to have to make changes in the way we respond to the wants and needs of the people.

One of the significant changes of the past half-century is our attitude toward government. In those earlier years we expected very little of government. We asked government to build roads, keep the peace at home and abroad. Beyond these basic functions of civility we asked little else. Today, we expect government to be all things to almost everybody. Government at most levels has become the largest employer. It is the largest provider of health care. It operates the largest system of education. Government is involved in one way or the other in every aspect of our lives, if not advocating that we do or not do something, at least regulating the manner in which we do it.

There may be a limit to how much government can do, or should do for us. It is easy to lose sight of the fact there is a cost for every gesture or generosity, no matter how small. A huge portion of government expenditures these days is spent for a mindless array of programs that benefit a narrow but articulate and aggressive constituency whose main talent is acquiring public funds for its pet projects. Individually, the cost of these programs may be minimal. Collectively, however, they have become a major cost of government. Some of these expenditures are direct appropriations. Others are indirect subsidies in the form of tax exemptions and loopholes for special interest in our revenue base.

While a few may benefit during the short term by this apparent government largess, in the long term we all suffer because these little excesses, added together, are a major reason why the cost of government keeps going up and up. Worse, and even at a greater cost, is the erosion of respect for government that results when those outside the small circle of beneficiaries realize they are having to pay more than their fair share.

When government loses its credibility with the people it serves, that is the beginning of the end of its effectiveness. We have not come that far in North Carolina, but we are beyond the point of where we should have said enough is enough. In 1991 we undertook an exhaustive effort to examine the efficiency of our government operations. The authors of that commendable study found numerous ways to save over $300 million annually and make government more efficient. Surely, you might say these recommendations were adopted and government in North Carolina became better. The fact is that almost none of the recommendations of that study were ever implemented. Rather the study sits on a shelf today gathering dust. The reason is that there were more constituencies for those wasteful and ineffective programs than there were advocates for better government.

Quite candidly, we are at a crossroads in North Carolina. We have increased spending in recent years while cutting taxes. We have deferred major infrastructure needs to the point of where they are almost critical. Our reserve funds are almost exhausted. Governor Easley and the General Assembly face the awesome task of making crucial decisions that require substantial funding. They must do so without the benefit of new taxes. I don’t envy their challenge. Yet it behooves each of us to support their efforts.

One thing we can do, and should do, is to call for a major revision of North Carolina’s tax code that was written in the 1930s. Is there any part of our current strategies that remains the same after three-quarters of a century? Businesses that don’t modify their procedures to meet the new times don’t last long because new conditions require new solutions. Shouldn’t we expect the same of government -- to adapt to these changing times?

Despite these great challenges that our leaders face in the months and years ahead, I believe the future is bright for North Carolina. We have adequate resources, if those resources are allocated properly and appropriately. I am encouraged by the increased interest in government by our business leaders. That is the key to a better government. Get involved; and be part of the solution to the programmatic needs of a proud and growing state that we call home to seven and one-half million North Carolinians.

About the author: Harlan Boyles has served as State Treasurer since 1977. He announced his retirement last spring and will leave office this month, having earned the gratitude of millions of North Carolinians

Return to magazine index