Adam C. Parker
37 Campbell L. Rev. 107 (2015)
ABSTRACT. This Article examines state oversight of local-government borrowing in the United States and focuses in depth on the North Carolina model. The Article considers (1) structures requiring prior approval before debt is issued by local governments; (2) different forms of state-takeover and emergency-aid provisions in case of a local-government fiscal crisis; and (3) ongoing audit and monitoring functions. Additionally, this Article discusses the history and structure of North Carolina’s Local Government Commission. Finally, this Article argues that the Local Government Commission’s model of ongoing monitoring, approval, and takeover authority is the preferable model of state oversight, as long as its authorities are limited to ensuring sound localgovernment debt practices.
AUTHOR. Adam C. Parker is an attorney at Sanford Holshouser LLP.