If we're going to outsource, let's get it right first
Published February 26, 2014
Editorial by Wilmington Star-News, February 25, 2014.
State Rep. Susi Hamilton supports the concept of enlisting private enterprise to help recruit businesses to North Carolina, but she objects to approving sending the taxpayers' money to a "public-private" organization without a better plan for raising the "private" dollars that are supposed to be part of the package. Her questions at a recent legislative committee meeting were on the money – state officials need to nail down more specifics before committing any more taxpayer dollars.
As state Commerce Department officials explained their plans to privatize many of the functions government has handled, such as economic development, travel and tourism and the film office, Hamilton, D-New Hanover, peppered them with questions as to where the private money was coming from and how much it planned to raise. Commerce officials did not provide adequate responses.
Hamilton was a co-sponsor of the House bill that would have set in motion a process leading to the eventual transfer of several Commerce Department functions to a public-private organization. But the bill did not get to Gov. Pat McCrory's desk, largely because of a controversial change after it left the N.C. House.
The amended bill would allow the state to issue fracking permits and allot a share of proceeds from oil and gas exploration to the new entity.
Let's separate those issues, first of all. Fracking is a controversy unto itself, and carries some potentially significant environmental consequences that require fuller discussion. Second, any effort to transfer the public's money from the people's treasury must include a detailed budget, a target figure for private contributions and a road map showing how the nonprofit will reach its goals. The Commerce Department is not there yet.
On paper, the idea has some merit. By working together with private businesses, the thought process goes, North Carolina could be more effective in its economic development efforts.
But the reality may be different, especially if the Honorables fail to establish adequate oversight of the new partnership's spending and operations. That's why it is important to slow down and get it right. North Carolina's current economic development process has room for improvement, but it is not so "broken," as McCrory is wont to characterize the state of state government, that it necessarily requires a total overhaul.
The state could benefit from experiences in other states, which in some cases cast doubt on just how effective these public-private ventures are. Some have been rocked by scandal over how money is spent. In some states, the most significant accomplishment has been to remove public oversight of how taxpayers' money is spent.
The bill that still may be reconsidered this year contained a provision requiring the nonprofit to adhere to the state's open meetings and public records laws and provided for legislative oversight. But Rep. Rick Catlin, R-New Hanover, brought up some other potential concerns, including conflicts of interest and inevitable "growing pains" that could hobble recruiting efforts early on. Those must be addressed before handing over the key.
If the state is going to "privatize" a function of government, then the private sector must be invested. As Hamilton told the committee last week, "It's not a public-private partnership if only the public is committing money and resources."
http://www.starnewsonline.com/article/20140225/ARTICLES/140229775/1108/editorial?p=2&tc=pg
