| mySPIN |
 Was this the best expenditure of 0 million?
by Tom Campbell
January 8, 2009
North Carolina’s Council of State made quick work of approving 0 million in construction projects this week. Unfortunately, too few questions were asked as the Governor and other constitutionally elected members of the Council, with two exceptions, loudly boasted the approval would stimulate the economy and create 25,000 new jobs. It also increased state debt.
Putting the ballyhoo aside, permit us to ask the questions that should have been raised. Why were so few questions asked when the legislature approved, without serious debate, the incurring of this much debt last year? Why are we borrowing such a large sum of money without the approval of voters as our Constitution requires? This method of financing, called Certificates of Participation comes with a higher interest cost than General Obligation voter approved bonds. We will owe approximately billion in debt when borrowings for all approved projects are complete, with almost one-half that amount in non-voted debt. The last time voters approved borrowing was in 2001, the billion referendum consisting largely of university projects. Why are our leaders unwilling to consult with us on borrowing large sums of money?
Will this package stimulate our state’s economy as promised? Will it, in fact, create 25,000 new jobs? If so, when? News reports indicate that million of the debt will be issued this spring, another 0 million in the fall, but the bulk of the borrowing won’t come until 2010 or later. Knowing there is a delay between borrowing and construction, how much real stimulus will we feel immediately and could we have gotten a bigger bang for our bucks?
The legislature passed this package in the summer of 2008 before the economy took such a drastic plunge. We could argue whether these projects were the highest spending priorities when they were passed, but we should seriously question whether they are our highest spending priorities today. North Carolina is facing a huge budget deficit and resources are limited.
The projects approved include almost 0 million in new construction for UNC campuses, including 9 million for a library at the Centennial Campus of NC State, million for a school of dentistry at East Carolina, a matching million of UNC Chapel Hill’s dentistry school, another million for a geriatric center at East Carolina and million for an Energy Production Infrastructure Center at UNC Greensboro. 7 million will be devoted to expansion of the Museum of Natural Science and a new building for the Department of Environment and Natural Resources in Raleigh. 9 million is allocated to prison construction with the balance allocated to projects such as farmers’ markets, an oyster research facility, the Polar Bear exhibit at the NC State Zoo and purchases of land for conservation.
Are these our highest priorities? We have too many people without jobs; road congestion and deferred maintenance that make our roads among the worst in our region; too many children going to school in trailers; water, sewer and other infrastructure needs begging for expansion or replacement; too many children without health insurance and the list of needs goes on.
North Carolina has better uses for 0 million in spending than our leaders approved this week. If tough times require tough choices and more accountability, as Governor Perdue says, we needed to ask these tough questions before putting our state in so much debt. |
|
