State Treasurer Dale R. Folwell, CPA, and the Local Government Commission (LGC) announced today that starting with the Jan. 7, 2020 meeting, the LGC will provide a call-in number for members of the media to monitor the monthly meetings of the commission. The new service is part of the Department of State Treasurer’s (DST) ongoing transparency initiatives across its divisions.
Created almost 100 years ago, the LGC provides financial assistance to more than 1,300 local governments and other public authorities in North Carolina. It is staffed by DST and approves the issuance of debt for all units of local government and assists them with fiscal management.
Any unit of government, water and sewer systems, and many publicly-owned hospitals and other entities, must seek LGC approval before borrowing money. In reviewing each proposed borrowing, the LGC examines many items including whether the amount being borrowed is adequate and reasonable for the projects and is an amount the unit can reasonably afford to repay. Once a borrowing is approved, the LGC is responsible for selling the debt (or bonds) on the unit’s behalf.
Additionally, the LGC staff oversees the annual independent auditing of local governments, monitors the fiscal health of local governments, and offers broad assistance in financial administration to local governments.
“When I raised my hand for the job of State Treasurer, I promised to have the most transparent department in North Carolina state government,” said Treasurer Folwell. “With health care costs rising steeply across the country, and the state’s citizens being asked to pay more in taxes for road construction, we believe there needs to be more light shined on the process.”
Recently, Treasurer Folwell called attention to the N.C. Department of Transportation’s (DOT) more than $2 billion in overspending and mismanagement, including $1.1 billion DOT improperly transferred from the Highway Trust Fund to the Highway Fund. In 2019, the LGC issued almost $1 billion in bonds for the DOT.
“Anytime the LGC approves debt, the people have a right to know where the billions and billions they spend on health care, roads and other projects are going,” said Treasurer Folwell. “Rising health care costs are partially due to the unprecedented level of building, borrowing and buying of competitors, financed by debt. Ultimately these actions and related costs make health care unaffordable for the average citizen. The LGC intends to ask some very tough questions of those who come seeking approval for more debt. I would encourage members of the media to listen in.”
DST will issue a media advisory prior to each meeting with call-in instructions. The number will be listen-only.
The Department of State Treasurer’s State and Local Government Finance Division handles the sale and delivery of all state and local debt and monitors the repayment of state and local government debt. More information can be found at the LGC’s homepage.