Civitas Review

New Bill to Examine Burdensome Occupational Licensing Boards

Mar
26

North Carolina has so many occupational licensing boards and commissions, they can't even count them accurately. This fact was highlighted in a Civitas "Waste of the Week" feature last May:

The Attorney General’s office lists 55 Boards, while a legislative oversight committee lists 57. According to the audit, “When asked how state-level entities compile their Board listings, one entity responded that it initially received its listing from another state agency but it now receives updates by ‘word of mouth’ from Board administrators and chairmen.”

Indeed, a Civitas report in 2012 found more than 700 professions require professional licensing in NC, many of them are completely superfluous and can't be remotely defended on the (faulty) grounds of "public safety."

Fortunately, a bill was recently introduced to address this issue. Senate bill 361, sponsored by Fletcher Hartsell (R-Union) would form a commission to study the "feasibility of establishing a single State agency to oversee the administration of all or some of the occupational licensing boards" and "eliminating some occupational licensing boards."

This is a step in the right direction, one can only hope that the elimination of some licensing boards means eliminating the licensing requirements of those professions. Occupational licensing largely serves to create barriers to entry for new entrants to select professions, serving to restrict the supply and putting upward pressure prices of the services they provide. Such licensing disproportionately affects low-income people trying to enter a chosen profession, but lack the resources to attain the license.  

Progress NC Action tries to turn table on legislators; but fails.

Mar
25

progress NC action

Progress NC Action  is a left-wing political action and advocacy organization.  When lawmakers required DPI to assign a letter grade to every public school, like many other organizations, it didn't like it.

According to Gerrick Brenner, Executive Director of Progress NC, the results “said a lot more about the poverty rates of each school than they did about instructional quality.”

So Progress NC Action decided to change things up and grade every politician in the state based what they believe public schools need most: funding.  They made the results available at a web site, gradencpoliticians.com

The results make for a curious reading, especially when you realize that state appropriations for K-12 public schools have actually increased each of the past four years.

It’s also the first time I’ve actually seen an organization try to rank legislators by combining bills from previous sessions.  Doing so significantly reduces the ability to reasonably compare legislators since so few have been present to record all the votes under consideration.

Gradencpoliticians.com grades lawmakers based on how they voted on eight bills. Budget bills for years 2011,2012, 2013, and 2014, are included along with bills to cut pre-K funding, implement tax reform  — which Brenner re-defines as a $1 billion tax cut to public education — and another bill that allows guns in schools. What do guns in schools have to do with funding? Maybe about as much as one dealing with pre-K funding.   That's question you‘d have to ask Progress NC Action.

While you’re at it you might also want to ask why – if Progress NC Action is so concerned about funding cuts  — they failed to include education budget cuts made in 2010  ($222 million) and 2009  ($1.1 billion).  No mention was made of those reductions, even though the reductions were some of the largest made in the last decade.

It is interesting that the “analysis” somehow only included the time frame when Republicans wrote the budget.  We simply ask: why? Significant reductions were made to the education budget in 2009 and 2010 when Democrats controlled the Legislature and the Governor’s Office.

Is Progress NC Action cherry-picking the data?   You decide.  I think the budget data that's included — as well as data that is not — tells you all you need to know.

A Free-Market Needle in the Corporate Welfare Haystack

Mar
25

This year's legislative session in NC has been largely dominated by countless corporate welfare schemes coming from both chambers, including expansion of taxpayer giveaway programs and several proposals to extend targeted tax credits to politically-chosen industries.

A small ray of free-market light, however, poked its way through the crony capitalism clouds yesterday when SB 382 was filed. Sponsored by Bill Rabon (R-Brunswick), Kathy Harrington (R-Gaston) and Wesley Meredith (R-Cumberland), the bill directs the Board of Transportation to "issue a request for information (RFI) for the privatization of the North Carolina Ferry System."

The state premise behind the bill is stated: "The General Assembly finds that the privatization of the North Carolina Ferry System would provide a more cost-effective service model for the citizens of the State." 

Yes, finally. Something coming from the General Assembly showing at least an intent to lessen the political grip over all of our economic interactions. True privatization would mean complete separation from government ownership and direction, and allowing entrepreneurs to own and run the ferry system – with revenue coming not from taxpayer dollars but from voluntary interactions with customers and sponsors.

 

Senate Sales Tax Redistribution Plan: Are Rural County Schools Really Under-funded?

Mar
24

As hinted at last week, the Senate yesterday introduced legislation that would alter how sales tax revenue is distributed to counties across the state.

At a press conference yesterday, Sen. Majority leader Harry Brown discussed the reasoning:

We're talking about a system that been in place for a long, long time that I think is outdated and really has divided the state into two North Carolinas," Senate Majority Leader Harry Brown said. "Reforming our state's sales tax system will help ensure that all North Carolina counties benefit from tax dollars their own citizens pay so they have the local resources necessary to strengthen public education, attract new jobs and contribute to our state's economy."
Fiscal analysis of the bill projects the revenue impact on all 100 counties of this proposal, predicting the revenue impact in 2018-19 relative to last year's revenue distribution. The biggest loser percentage-wise would be Dare county, with seven other counties projected to lose out due to the distribution change.
Brown's claim, however, that lower-populated counties lack funding for public education warrants closer examination. For instance, prior Civitas research shows that the three of the five school districts with the highest per pupil expenditures are also three of the lowest population counties (Hyde, Tyrrell and Jones).  

NC Business Owner: Corporate Welfare is a "Smack in the Face" to Home-Grown Businesses

Mar
23

The Char-O just published this letter from a Cornelius business owner about the inherent unfairness of state government corporate welfare programs:

I wonder if the N.C. Legislature understands the “smack in the face” effect its incentives to lure new businesses to the state has on a business like mine that has been operating here for over 35 years, employing people and providing their benefits, building and rehabbing the very infrastructure needed to make ours a good place to live.

We started small, suffered boom times and almost bust times, sweated through recessions, and jumped through all the hoops governments can conceive for us – having to hire people just to do that alone.

I feel my business is a solid example of many good, small businesses in this state that people count on as an employer and the government depends on to help our communities thrive.

Yet when I read of the millions of dollars the state is willing to hand out to a company from another place to simply open up shop here, it makes me feel outraged that our legislators and governor don't seem to appreciate how unfair those incentives are for the thousands of small businesses that operate here with very little if any help beyond government infrastructure.

It not only feels unfair – it is unfair.

Politicians love to tout the easily seen "benefits" of corporate welfare programs at ribbon-cutting ceremonies. What is much harder to detect, yet equally as real, are the negative consequences of crony capitalism borne by businesses like this one in Cornelius. His business has fortunately survived, but how many more jobs could he have created if he wasn't forced to subsidize handouts for other, politically-connected businesses, some of which may even be his direct competitors? How many businesses go bankrupt trying to compete against businesses padding their bottom line with taxpayer handouts?

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