RALEIGH — North Carolina’s economy loses hundreds of millions of dollars each week it remains shutdown, resulting in anxiety for many citizens. Republican State Treasurer Dale Folwell believes that data-driven policies about how and when to reopen the economy can help alleviate these concerns.
“We need to have a meeting of the council of state, which is in the NC constitution,” explained Folwell. “That meeting has to be both transparent and data-driven because, until you get transparency and the right data, you can’t get the right policies in place. Until you get the right policies in place, you can’t properly alleviate the fears people have.”
Tax revenue for state and local governments has decreased dramatically since the shutdown began. “When people aren’t mobile, they can’t consume,” said Folwell. “When they can’t consume, it impacts everything at the state and local level in the form of sales, gas, and occupancy taxes that those communities depend on.”
These taxes are used for programs, such as pension plans. “As Keeper of the Public Purse, we at the Treasury manage about two hundred billion dollars,” said Folwell. One hundred million of that is for the pension plan.
“We’re pleased to report that our pension plan is only down about three percent for the year, which is phenomenal,” said Folwell. Pensions are funded on the local level. Cities, counties, and the state are sent a bill every year for these plans by the NC Treasury Department.
Folwell also believes that businesses in Anson County are put at a competitive disadvantage to those already open in South Carolina. “As people continue to desire to consume a haircut or a hamburger,” said Folwell, “They’ll go over the border to do that. Every time that occurs that’s fewer sales tax Anson County can use to balance their advantage.”
Governments, at all levels, at attempting to weigh the economic risks of remaining in lockdown against the health risks of opening up too soon. Folwell tested positive for COVID-19 in March and knows all too well the dangers the virus possesses.
“Having being hospitalized for five days,” said Folwell, “you find there’s a difference between being religious and spiritual.”
Despite his ordeal, Folwell insists it’s in the public’s best interest to reopen. “My experience made me even more committed to watching the pennies and the paper clips because everybody asks me about the medical virus, but now we’re in the first inning of the economic virus.”
Medical experts believe cases of COVID-19 will not peak until June and University of Washington Researchers predict more than 4,400 deaths will result from the virus by early August.
The Town of Wadesboro has 69.97 percent of its budget in reserves and Anson County has nearly 60. The minimum requirement in North Carolina is just eight. This means that both Wadesboro and Anson County are more prepared than most to deal with the financial fall out resulting from COVID-19.
“I want to take this opportunity to applaud the Wadesboro Town Council and Anson County Board of Commissioners,” said Folwell. “because they’ve already been doing the things they need to, which is watching the pennies and the paper clips. That’s why they have such high reserves.”
“People do not care about what political party you’re a member of,” said Folwell. “They just want their problems solved. Their problems right now are concerns over food as well as how and when they’re going to be able to go back to work.”
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