Latest / The SEANC View / State Auditor Dave Bullock on Transparency, Tech & DMV Reform
Transcript
- 0:00Before we get started with this week's episode of the Scenic View podcast,
- 0:03we want to take a moment to recognize Labor Day and the meaning it holds in our country's history.
- 0:08It is a day to honor the contributions of hardworking people who keep our communities
- 0:12and our state running strong.
- 0:14Here at Scenic, we're proud to represent the dedicated state employees of North
- 0:18Carolina, as well as the retirees whose commitment and service built the foundation we stand on today.
- 0:24This Labor Day, we celebrate you and we thank you for all that you do.
- 0:27Hello, friends, and welcome to another edition of the Scenic View podcast.
- 0:32I'm your host, Jonathan Owens, Communications Director here at Scenic.
- 0:36With me, as always, is Executive Director Artis Watkins, Suzanne Beasley,
- 0:40the Director of Government Relations, and Sam Klein, our podcast producer.
- 0:46These people that I work with.
- 0:48You're fine. You're fine. You almost made it through. Yeah, but they know us.
- 0:52It's Sam, y'all. We have an awesome show today. We have a distinguished guest.
- 0:57The State Auditor of North Carolina coming to join us. So let's just dive right into it.
- 1:03Music.
- 1:12Okay, well, we do have a busy week ahead of us next week. The Scenic Convention starts.
- 1:19Yesterday, we did our packing day, which is, I asked Lynn, because she's been
- 1:23here forever, how long have we been doing packing day? And she said at least her whole time.
- 1:28So that's 31 years.
- 1:31So she said probably 40 years. So packing day is when we pack up all of our
- 1:36bags and programs and things that we'll use for convention.
- 1:41Things we'll pass out to the delegates. 800 bags worth. It's a lot of work.
- 1:45And it's kind of a camaraderie thing for us. It is. I don't hate packing day.
- 1:50It was fun because even Brenda made a little comment whenever she realized I
- 1:54was right next to her. She was like, oh, she moves so fast.
- 1:57I got to speed up. And I'm like, it's like a race. Yeah. I know it is.
- 2:01Let's get competitive. Yeah. Yeah.
- 2:03Yeah, I think it's popular to say, oh, here comes packing day.
- 2:07Oh, it's going to be terrible. But I think everybody likes it.
- 2:09Yeah, we play some music, try and keep it upbeat.
- 2:13So if you're a delegate to the scenic convention, we'll see you in a few days.
- 2:16And we've got your bags packed.
- 2:18If you're not, get involved at your district and be a delegate next year.
- 2:23Yeah, we want to see you at the convention. The convention is awesome.
- 2:26And your programs were packed with love. We don't have a lot of budget talk
- 2:31to get into this week. Anything at all?
- 2:34Well, session convened on Tuesday. It was a skeletal session,
- 2:37so the entire General Assembly did not convene. It's not looking likely that
- 2:41we're going to have a budget.
- 2:42I did see a story that the Democrats held a press conference yesterday to urge
- 2:46Republicans to settle a budget.
- 2:49Yeah, and I did run into a couple of Democrats while I was trolling the building
- 2:53for anything on Tuesday. Day in that, I understood was, you know,
- 2:56they were trying to push some things along as much as they can.
- 2:59I don't think it's looking good. It's not. It's not.
- 3:02You know, it's huge. It's huge to state employees who are going to see their
- 3:05health care go up. And it's huge to retirees.
- 3:09And what I'm hearing is that it's the tax package. One chamber's not moving on it.
- 3:13And if they refuse to move on that, then they can't do anything else. So here we are.
- 3:18But isn't this year different than, say, last year where this is like a long session, right? Right.
- 3:23So this is the first, like, it seems like there is no budget, right?
- 3:26I mean, right now. No, I mean, so far, the mini budget is all we have out there.
- 3:31We don't have a budget, but there are things they're going to have to handle.
- 3:35You can do it, though, in a series of mini budgets.
- 3:39A mini budget with money for our folks would be something at this point.
- 3:42You look skeptical about that. I do, because a lot of things haven't been addressed.
- 3:47What you're going to do with the continuing tax reductions is,
- 3:50number one. You have to figure that out.
- 3:52Number two, are you still going to spend, what is it, almost $700 million on
- 3:56the opportunity scholarships? If you are, that money's off the table.
- 3:59What are you going to do about Medicaid that got expanded, and now you're not
- 4:03going to get those dollars back from the federal government? That is a huge...
- 4:08That's at least equal, I think, to what the opportunity scholarships after that
- 4:12and Hurricane Helene relief.
- 4:14You're trying to do that at the same time as all of this.
- 4:17So I'm skeptical of how the math would work.
- 4:20I think there's an awful lot of things people want to do, but it's not all possible
- 4:24under the current scenario.
- 4:27And our job as lobbyists is to point out that it might be nice to be able to
- 4:31give somebody things like opportunity scholarships or tax cuts.
- 4:35But you've got a workforce that you need to address if you want to keep decent
- 4:40people working for decent North Carolinians.
- 4:42That's right. You've got to do, you've got to take care of your business.
- 4:45Yeah. And if any other business you run, you know, if you don't take care of
- 4:49the employees, your business is going to suffer.
- 4:51You're not going to be as high quality as you could be. What is that all saying?
- 4:54The state is no different.
- 4:55Take care of your employees and they'll take care of you. The business,
- 4:58yeah. And the customers will suffer.
- 5:01Oh, 100%. The customers for the state are the taxpayers. That's right. Yeah.
- 5:05Well, we spoke a little bit about this in the interview with Dave Bullock,
- 5:09which we recorded before.
- 5:10But the big news today from the state treasurer's office is that he uncovered
- 5:14$170 million in unallocated funds.
- 5:18Now, that's confusing to everyone. Like, where do you find $170 million?
- 5:24I'm sure it's not as simple as it seems. Yeah, well, I mean,
- 5:27I think Auditor Bullock addresses it briefly when we interview him,
- 5:31but apparently Treasurer Briner's staff, and I don't know the details of it,
- 5:34I'm assuming he tasked them with, among other things, check everything out and
- 5:38make sure it looks good because we're keepers of the public purses, Dale Volley used to say.
- 5:41But at any rate, the treasurer's office found $170 million that had not been
- 5:46expended. So you can use it for limited purposes. You can't just put it anywhere.
- 5:51But there are certain programs that have been legislatively approved. You can use it on.
- 5:56You can use it to plug certainly certain proscribed holes.
- 6:02But couldn't you kind of launder that? Like, you could use it. Oh, dear.
- 6:08Follow me here. You must have watched too much Sopranos. Yeah.
- 6:13No, but like you could use that money to pay off one thing and use the money
- 6:16allocated for that in a different place. No. Is that not a thing? Am I being illegal here?
- 6:21Well, I mean, when they give you that money to be spent here.
- 6:25I know what you're saying, because when I read the article, the first thing
- 6:28I thought was, it'll be interesting to see where that money actually goes.
- 6:31And I'm sure that that is a question some people will ask.
- 6:34I'm sure journalists will ask as we move along through the process.
- 6:37Says, hey, whatever happened to that 170 million? Because that's not anything to sneeze at.
- 6:41But it's great that they found it. That's, yay, state employees.
- 6:45And thank you, Treasurer Briner. And Auditor Bullock seemed pretty excited about
- 6:49it because as he is about to talk to us in the interview about,
- 6:52you know, his goal is to try to find anywhere where there's not just waste or
- 6:56fraud or bad things, but also where there's good things, where we didn't necessarily spend everything.
- 7:01So we have a better idea, are we overfunding some things while we're choking out others? Yeah.
- 7:06And I guess I only bring that up because last week's episode was about premium
- 7:10increases and I could see someone, I mean, even I first thought this like,
- 7:14well, they found $170 million the week after they raised premiums.
- 7:18The comments on Facebook, I didn't look at the other platforms yet,
- 7:21but the comments on Facebook, the very first one, it's like,
- 7:24okay, well, can you apply this to the premium increases then?
- 7:27And that's probably not something that can happen.
- 7:29No. It's not, yeah. I will say, if this tells you guys how literal my brain
- 7:34takes things, when I first read it, I was thinking, how do you hide $170 million
- 7:39or just lose $170 million?
- 7:43Picturing $170 million cash just somehow in a storage closet that went missing.
- 7:48$170 million never went away. It just didn't get spent.
- 7:52It was just lingering. That's not a bad thing. Have you seen Breaking Bad?
- 7:56But, you know, now they're going to figure out where they put it.
- 7:58Well, you need to watch that. But I was just thinking of Huel laying on the big pile of money.
- 8:03See, I was just picturing someone opening a storage closet and just seeing stacks
- 8:07of money like, where did this come from?
- 8:09I'll tell you what, since we all just learned about this today,
- 8:13Suzanne and I will take a very good look at this and see if there's any way
- 8:16to apply that towards raises.
- 8:18I wish I could find $170 in my account.
- 8:22It's never a bad thing to ask because it's Skiff. But anyway,
- 8:26we're going to look at it anyway. So let's just go right to the state auditor's
- 8:30interview, and then we'll come back and have a little Gen Z moment and wrap up.
- 8:39Okay, we have a special guest in the podcast studio today.
- 8:43We are welcoming State Auditor Dave Bullock to the show. Welcome, Auditor Bullock.
- 8:48Well, I'm glad to be here. It's a really nice space, actually,
- 8:51particularly for a podcast.
- 8:53Sam did it by herself. Wow. Did really well. Very impressive.
- 8:57Thank you. So a lot of our members may not be as familiar with you as I know
- 9:02you just took office last year.
- 9:04So we want to give you a chance first to kind of introduce yourself to them
- 9:07and just tell us a little bit about Dave Bullock.
- 9:10Great. Well, yeah, and I am Dave Bullock. I'm honored to be the 21st state auditor
- 9:15of the state of North Carolina.
- 9:17I am originally from, well, I was born in Lincolnton, North Carolina.
- 9:22I've lived all over North Carolina.
- 9:24Yeah, I'm born in Lincolnton. My father was in radio and television,
- 9:29and so we moved around quite a bit.
- 9:31I spent time in Eden. I spent time in Greensboro.
- 9:34My formative years, junior high, which they had that. I'm 57 when I was coming
- 9:39along. Junior high and high school in Durham.
- 9:42And then went to UNC Chapel Hill for undergraduate. I knew I liked you. Yeah.
- 9:47That's why I commented on your shoe. I'm a Tar Heel. And we graduated there
- 9:52with a degree in journalism.
- 9:53And so I was a reporter and worked various different things and found my way
- 9:59to law school where I got a law degree and an MBA degree from Campbell University
- 10:03and went to work as a prosecutor.
- 10:05So I've been an assistant district attorney prosecuting traffic cases and all
- 10:10the way up to murder cases in Cumberland County.
- 10:13Left, went to private practice. So what got me, I did a lot of community service
- 10:18work, you know, served my church, raised our family in large respects in Fayetteville.
- 10:25Over the last 26, 27 years, four children, 26, 24, 20, and 15,
- 10:30and they were all born in Fayetteville.
- 10:33Got two that are off the family payroll, so they've made their way in the world and, you know,
- 10:41got into sort of broader public service when I was asked to serve on the board
- 10:46of trustees at UNC Chapel Hill and was elected chair of that board.
- 10:50And from there, because of the work that we were able to do with the administration
- 10:57there at UNC Chapel Hill on budget reform,
- 11:00and I tell the story about when I asked, well, why in the world would you want
- 11:04to be the state auditor and how did that come about?
- 11:06And it really came about through that work on the budget reform at UNC Chapel
- 11:10Hill was all started in orientation when the provost,
- 11:15who's the chief academic officer, was telling me and some other new members
- 11:19of the board about the budget at Carolina and the fact that there were 16 separate
- 11:25budgets actually running the university.
- 11:27They were run on 16 separate budgets, not 16 parts to a budget,
- 11:31but 16 separate siloed budgets, $4.4 billion a year.
- 11:37And I thought that was not efficient. I thought it wasn't really the right approach.
- 11:42And I also was concerned that it was the chief academic officer telling us about
- 11:46this and not a CFO, a chief financial officer.
- 11:49So long and short, we as a board really pushed and were able to work with both
- 11:55the legislators and our Board of Governors to change the way the budgeting was
- 12:01done at UNC Chapel Hill and ultimately across the UNC system.
- 12:05We consolidated to one single budget, a uniform all-funds budget.
- 12:10That's now the standard across the university system, and it started at UNC Chapel Hill.
- 12:16In our process, we discovered a $100 million structural deficit,
- 12:20and that required some belt tightening at the university level.
- 12:25We were able to do that in a short period of time and get to a zero-based budget
- 12:30and really good fiscal management through an all-funds budget and hiring a CFO
- 12:35to manage the budgetary functions of the university.
- 12:39And rating agencies, Standard & Poor's, for example.
- 12:42In the case of Carolina, rates universities and institutions and states for
- 12:47their credit worthiness and Standard & Poor's had raided UNC Chapel Hill after our budget reform.
- 12:54And there was a footnote in the bottom of that rating that actually made note
- 12:59of the new budget process at Carolina and the fact that our new budgeting process
- 13:04gave them increased confidence on the financial stability and position of the university.
- 13:10And so it was that sort of kind of nerdy footnote that really got me interested
- 13:16in running for state auditor because I saw the work that you could do to really
- 13:21move things forward and make things better through work and decisions on sort
- 13:26of areas that relate to finance.
- 13:28And so I hope that tells you a little bit about me. That's great.
- 13:33Some of that is brand new information to me. So it does kind of explain some
- 13:38of the interest you had in the job.
- 13:40And I'm sitting here listening to you thinking, I'm also surprised you didn't
- 13:43run for General Assembly because I think revamping budget processes does seem
- 13:47like it would start there. And I can fully see you enjoying the entire appropriations
- 13:52process. But apparently not, huh?
- 13:54Does anybody enjoy the appropriation process in the General Assembly?
- 13:59Yes, the nerdy financial people like you're talking about. Yes,
- 14:02some people love it. Yeah.
- 14:04And I know legislators. I mean, I would not love sitting down figuring it out,
- 14:08but I'm glad there are people that do. I know legislators that enjoy it.
- 14:11So, yeah, I guess that could have been a consideration. I really thought there
- 14:15was an opportunity also with the State Auditor's Office to reshape the focus of the office. Not.
- 14:22To give away what the auditor's office has traditionally been known for,
- 14:27which is really interagency work to make agencies accountable and to assist
- 14:34agencies in better financial management,
- 14:37but also enhance the role of the auditor to be more effective and more relevant
- 14:44to everyday North Carolinians.
- 14:45And that has been the mission that I've tried to bring to the office is to continue the traditions.
- 14:53Particularly as it relates to financial auditing across the state of North Carolina
- 14:57from the state auditor and the professional team that we have in the office,
- 15:02but to expand the role to be relevant to everyday North Carolinians.
- 15:07How can we as a state auditor do things in the realm of waste,
- 15:12fraud, abuse, and accountability, efficiency work that really affects average North Carolinians?
- 15:19You know, is there a way that the auditor's office can do that?
- 15:22And I believe we've hit on at least one way, and that was our audit with the
- 15:27Division of Motor Vehicles.
- 15:29Oh, yeah. Everybody wants to know what's going on with DMV for sure.
- 15:33And I think a lot of North Carolinians hear state auditor and they think it
- 15:37means they're getting audited by the state with reference to their taxes.
- 15:41Yeah, I get that a lot. I do. Yeah, I would think that would be a very scary
- 15:45sounding person to a lot of people.
- 15:47It's scary. You know, we don't want it to be scary, but we don't audit people's
- 15:51individual tax returns. That's for the IRS and the Department of Revenue.
- 15:55We are actually working on behalf of the taxpayer and looking across state agencies,
- 16:02organizations, and institutions at how taxpayer dollars and public funds are
- 16:07spent and asking the question and the approach that we've tried to take since
- 16:12the first of the year is really asking the question,
- 16:14what is the return on taxpayer dollars?
- 16:18For their investment in state government. Right.
- 16:20And I think that's the right approach because that doesn't presume that we're
- 16:26going in, number one, and looking for stuff necessarily that's wrong,
- 16:30that we're looking for. Right.
- 16:33We have, I think you can expect, again,
- 16:36we don't like to release the results of audits ahead of time,
- 16:39but I think you will see audits in the coming weeks that talk about positive
- 16:46things that are happening across state government,
- 16:49places where things are working really well, for example.
- 16:53So I think you'll see that. In fact, I'm sure you will.
- 16:56And there'll be some other audits that sort of point out some deficiencies and
- 17:01things where we can do things better as a state.
- 17:04The goal really is to be balanced and have an approach to ask that tough question.
- 17:09What's the return on investment?
- 17:10What are we getting for our money? And then are we being as efficient and effective
- 17:14as we can be in certain areas?
- 17:16And our state workforce, they have those concerns, too, because those folks
- 17:20know if there's money being wasted somewhere else. They know where the body
- 17:23is. Yeah, and it's less money on the table to do anything to benefit them.
- 17:27So this may be a good moment just to touch on the DAVE Act.
- 17:31Yeah. So you've been tasked with checking out all the agencies across North
- 17:35Carolina and, you know, deciding if there are places that need some attention
- 17:39or if they're doing good things.
- 17:41Like you just said, part of that language in legislation talked about cutting employees.
- 17:46So obviously that, you know, Rose, it's a red flag for all our folks when you
- 17:50start talking about cutting state employees.
- 17:52So can you give us some kind of idea of maybe going in with the things that
- 17:57you're going to do under the DAVE Act?
- 17:58What would that look like? And what would you be looking at if an agency did
- 18:02need cuts? We don't think anybody needs cuts with the vacancy crisis.
- 18:06But if you determine that, how would that look?
- 18:09Yeah. So the DAVE Act, of course, is sort of an affectionate name, I guess, if you're me.
- 18:16It worked out nicely. If you're me, it is. The acronym worked.
- 18:20It creates... I couldn't think your name wasn't any longer.
- 18:23Some things work out occasionally, right? But it creates the division of accountability,
- 18:28value, and efficiency in our office.
- 18:30It really, if you go in and sort of analyze the legislation,
- 18:35it doesn't create any additional authorities of the office.
- 18:41What it does is it sort of puts us on a defined mission and gives us resources
- 18:46to accomplish that mission.
- 18:47And if you look at the workforce within the state auditors, I've seen,
- 18:52and again, in terms of state employees and workforce, we've added 45. Yeah.
- 18:59Members to the state workforce. And we're in the process of doing that through
- 19:03the DAVE Act. And there will be state employees.
- 19:06We do use contracted services in certain instances, but for the work that we're
- 19:10going to try to do under, that we're going to accomplish under the DAVE Act,
- 19:14we're going to use state workforce, right?
- 19:16Employees that we're bringing on board at the auditor's office.
- 19:20So that's a good thing. We're actually adding that. And my commitment is to bring value to that ad.
- 19:26So we're going to monitor ourselves and create some really strong metrics on
- 19:31what type of results we get.
- 19:33But in terms of what to expect, when we've started the DAVE Act and we started
- 19:38with informational requests across all state agencies and asking them for information
- 19:44on their workforce, how many members of their teams do they have.
- 19:48How many openings do they have, what does that look like, what is their agency's mission.
- 19:52And we've got access to larger data sets across state government through the
- 19:59Office of State Human Resources, through the Office of Budget Management,
- 20:03and through Comptroller's Office.
- 20:05So we're going to take all of that data as well and sift that data.
- 20:10And we're going to use modern computer engineering and data analytics to take a look at that.
- 20:16Because I want to stop here and say, you know, my commitment has been to be
- 20:20data-driven on these approaches.
- 20:22And if you use the data and actually base it on objective data,
- 20:26and objective data is also not just numbers,
- 20:29right, which is why we've reached out to every agency individually and not just
- 20:35taken raw numbers from large data sets.
- 20:37We've reached out to individual agencies across state government and asked them
- 20:43specifically about their workforce and the leadership of those agencies about their mission,
- 20:48because numbers by themselves don't tell the story of what we're doing.
- 20:54And those numbers need to be put into context.
- 20:57And that's really important for us to be able to put numbers into context.
- 21:03Example is our DMV audit, and I'll harp on that because I'm really proud of
- 21:07the work that we've done so far.
- 21:09There's more work to be done on our DMV auditing, but I think we've shown a
- 21:14light on an issue of where state government, and I said this in the release
- 21:17of that audit, that it's an opportunity for state government to do something right.
- 21:21And we recommended additional resources. We recommended additional state employees to work.
- 21:27At the Division of Motor Vehicles. We also advocated for some increased efforts
- 21:33to try to fill vacancies and some increased flexibility at the DMV in particular
- 21:39for them to be able to fill those vacancies.
- 21:43And I think that's really important because, and as part of that.
- 21:47You know, in terms of a lot of our recommendations, we actually took the input
- 21:50of people, I mean, surprise, surprise, that actually do the work.
- 21:54We found out across the state and actually asked licensed examiners,
- 21:58hey, how can you better serve people? Got the real deal.
- 22:01Right? And we got a lot of good information on that.
- 22:04I was really, our team was really gratified with the information that they got and the suggestions.
- 22:10I mean, surprise, surprise, people who do it every day have good ideas. Yes, they do. Right?
- 22:15And I say that with sarcasm because I'm not surprised at all that people who
- 22:21do the job every day have good ideas.
- 22:23Well, we, you know, we talked to you about this when we had a private meeting
- 22:27with you a few weeks ago, which we're so appreciative of, and we learned a lot that day.
- 22:30And that's why we wanted to have you on so people can hear from you and learn
- 22:34more about what the auditor does, especially if they're state employees and
- 22:37wonder, really, what is this all going to mean for me?
- 22:39But with regard to the DMV audit, one of the things we said is,
- 22:42you know, the employees were going down there saying these things at the legislature
- 22:45for a very long time, you know, when we would have our little lobby days.
- 22:48And they've been telling multiple folks who were in charge over there these things.
- 22:53I'm glad that they got to tell their story to you and your team as well.
- 22:58But, you know, do you think this will stick in terms of, they've gotten a response
- 23:02in terms of some jobs from your audit, obviously not the amount we've heard
- 23:07for years that we needed to keep up with this growth of population.
- 23:10Do you think we're going to be able to keep that trajectory in DMV and then
- 23:14apply it to other agencies where we have not kept up with the population in terms of our staffing?
- 23:21Well, I think that's a multi-pronged question, really, if you unpack it.
- 23:25And with DMV, the real question, again, is how can we most effectively serve
- 23:31people across the state of North Carolina in an efficient, effective manner?
- 23:36Having people that are there available to serve one-on-one individuals because
- 23:41of the requirements, and it's really important.
- 23:43I mean, an ID today is really important. since 9-11 and the fact that we have
- 23:48these real IDs and that we as a state actually collect this data on behalf of
- 23:53the federal government that uses it for security purposes on airlines, etc.
- 23:58It's really important that we get that information correctly and that we do
- 24:03serve not only the individual in North Carolina,
- 24:06but serve the greater public by being a trustworthy source of data when it comes
- 24:12to the driver's license database.
- 24:15So that's really important. But we're going to have to, as a state, do a couple of things.
- 24:21One, we're going to have to, again, I'll go back to it, and I hate that I sound
- 24:24like a broken record, but we're going to have to ask, number one,
- 24:27what kind of return on investment are we getting?
- 24:29And when I say return on investment, we got to say, okay, is this a program
- 24:34that is necessary to move the state of North Carolina forward,
- 24:38either with social, emotional, human value that may not be easily calculated
- 24:44in economic terms, right?
- 24:46Because there are certain things that the state government does that you cannot
- 24:51necessarily equate to an economic value.
- 24:56It's quality of life, but not necessarily. Right, it's a quality of life issue.
- 24:58It doesn't always make you number one in business, right?
- 25:02For example. And then there's those that do make you number one in business, right?
- 25:06And number one in business helps, and we're very proud to be number one in business
- 25:09because that means there are jobs for our citizens, right?
- 25:12And it also makes North Carolina an attractive place for people to move in.
- 25:16I think the number is about 350 people a day that move into the state of North Carolina.
- 25:21So we do have tremendous growth.
- 25:23Florida, Texas, and North Carolina, probably your top three states.
- 25:27In fact, I think they are the top three states for growth. Some of it is our
- 25:31birth rate is high, but a lot of it is folks wanting to move here to North Carolina
- 25:36because of, as you say, the quality of life that we have here in our state.
- 25:40Not just geographically, but our state services and what we offer people.
- 25:45We're going to have to leverage technology.
- 25:47I mean, it's just going to be a fact of life.
- 25:50And I'll go back to the DMV, for example. I mean, the entire DMV is currently
- 25:55running, as we speak, on a skeleton that was built decades ago,
- 26:01and it has not been updated. It's a common refrain in state government.
- 26:05It is. In fact, I've had conversations with technology folks across the state,
- 26:09and we're actually looking at that in our office as something that we can assist
- 26:14with in terms of cataloging those legacy systems.
- 26:17And let's really get to the bottom of what we got and get a plan for modernization,
- 26:22because it's not going to be something that's going to happen overnight.
- 26:25Right. And it also we need input from people who actually are like the license
- 26:30examiner, people that are on the front lines that are delivering services directly
- 26:34to people of North Carolina.
- 26:36We need to get their input. I would say, for better or for worse,
- 26:39I mean, the recent rollout of the Odyssey system in the courts has not been
- 26:45as smooth as maybe it could have been.
- 26:47And I don't think the current leadership of the AOC did not start that ball rolling.
- 26:54But, you know, that ball got rolling and that Odyssey system got rolling.
- 26:58And someone who's worked in the court system, I don't know how many assistant
- 27:03district attorneys or clerks of court or judges who actually work in the courtroom
- 27:10were ever consulted on what was needed. I'd be shocked if they were.
- 27:15Right? Right. And that's an issue. So the technology implementation.
- 27:21Particularly when it relates to serving the public from a government function,
- 27:25really needs to start with the people that use it every day. And their input is key.
- 27:30We're going to be implementing new auditing software in our office.
- 27:34And we took a pretty simple approach. We got into office and found that there
- 27:38was already the beginnings of an RFP on the street for new auditing software. and I pulled it.
- 27:44I just pulled it, pulled it back and reissued it after we went to the auditor
- 27:48ones and asked them, number one, because I had seen this happen because I asked
- 27:54them, anybody ask you about this? They said, well, not really.
- 27:56I said, so we needed to do that. We needed to really ask our own folks what
- 28:00they needed and what would make their job easier.
- 28:03I'll give you an example of something that we've done. You know,
- 28:06I surveyed some of our folks and said, is there something that would make your life
- 28:12better in terms of not only your quality of work, your quality of life,
- 28:17the margin of time in completing your job day to day.
- 28:22And there was a computer program that they said, yeah, this would be great.
- 28:26The big five accounting firms use it and they do auditing and it'd be great.
- 28:31I said, well, why don't we have it?
- 28:33Well, it costs a lot of money. Found out about what it costs.
- 28:36And honestly, I can't remember the exact price, but it wasn't life changing
- 28:39amount of money. And I said, well, okay.
- 28:42And they said, well, you know, you're a pretty conservative guy.
- 28:44I said, well, yeah, just because you're conservative doesn't mean that you're
- 28:47not willing to invest money to get a return.
- 28:50Right. Spend money to get some productivity. I think it went something like this.
- 28:54Well, it costs an arm and a leg. And my response was, what's an arm and a leg worth to you, right?
- 28:59Right. And so we've implemented some of that software and actually had a strategic
- 29:05planning retreat and audit planning retreat with our, it was a day long,
- 29:10you know, sort of meeting. with our audit team.
- 29:13And they reported back to me that, you know, in their first usage of this particular
- 29:18computer product that uses functions that are AI related.
- 29:22It's not a chat GPT, not an outside sort of thing.
- 29:25It's an internal thing. It uses AI components.
- 29:29And two days worth of work that an auditor would spend on a particular project
- 29:34has now been condensed in our office to about two hours.
- 29:37Oh, wow. And so that type of leverage of technology, it doesn't displace people.
- 29:42What it does is, for us, it gives our team members the ability to now do their
- 29:48job more effectively because they're not worried about routine tasks. Right.
- 29:53They're worried about the analysis.
- 29:55And it also increases the volume of production that we're able to do.
- 29:59And the modernization of technology in state government is a chronic issue.
- 30:03I mean, just as it would be in nonprofits Profits are anywhere where resources are not infinite.
- 30:09And so it seems like as we talk to members, depending on where they work in
- 30:13state government, it's the have or have nots in terms of the technology.
- 30:16It really depends where you are.
- 30:17So I would assume y'all will find a lot of that, where we could spend a little
- 30:21more money but increase productivity volumes.
- 30:25And then as far as the people, I know you want to use the data to determine
- 30:28where you go with DAVE Act. One of the pieces of data that is the most striking
- 30:33is the vacancy rate across state government.
- 30:36And then in particular agencies, I know with prisons, we've heard it a lot,
- 30:40forever, not just right now, but this administration, with going back forever,
- 30:44that prisons report vacancies not based on the total amount of positions they've got filled.
- 30:52But in other words, if I'm out on workers comp, I'm still counted,
- 30:55even though I can't go be in that prison.
- 30:57So how would you deal with those kind of issues that may not be on their face
- 31:02visible to you as data? But if you.
- 31:06To talking to people, you'd find out, oh, the numbers are actually reported
- 31:09somewhat differently than they are.
- 31:11Well, I mean, I think you've hit on the rationale that I sort of explained as
- 31:15to why we're reaching out to individual agencies to contextualize numbers.
- 31:19And I think you've hit artists exactly of what I mean by contextualizing those
- 31:25numbers and putting it into context.
- 31:27That's really important because also you have situations where you might have
- 31:33vacancy rates And either the facility or the part of an agency,
- 31:39when you use corrections, for example.
- 31:42Might have a facility in corrections where the numbers necessary are either
- 31:47higher or lower than what the initial full-time employee allocation for that
- 31:54particular facility are.
- 31:56What we're hoping for as part of this is to also analyze with the management
- 32:02of individual prisons, for example,
- 32:05and ask that question, you know, how many full-time employees do you really
- 32:09need to be most effective and most efficient, right?
- 32:12And then the question becomes, what is the pay scale?
- 32:15Because that is an issue, I think, that we all struggle with in state government
- 32:21and in private industry, too.
- 32:24What's a proper pay scale, right? Well, how do we properly pay people?
- 32:27And, you know, I think it's, I'll give Secretary Stacey Meyer credit.
- 32:32She's working, I believe. I've met with her several times,
- 32:35and I know other members of the Council of State and agency heads have met with
- 32:39her about efforts to modernize and update and really find flexibility within
- 32:46the current Personnel Act.
- 32:48And we've worked with her on some issues in our own office that relate to the
- 32:53Personnel Act and how we can modernize it and be more flexible.
- 32:58I really just think there's going to have to be an effort.
- 33:01To look at more flexibility. I know I'm kind of repeating myself,
- 33:06but it goes to what I think would really help the commissioner at the DMV.
- 33:10And yeah, not only did he now get an additional 40 examiners, but he had 159 openings.
- 33:17And you can ask yourself the question, well, we're doing a certain level of
- 33:22work, but there's 159 openings.
- 33:24If we take those, maybe we pair back the number of positions and then look at
- 33:30allocation of those dollars in a different way, right?
- 33:34Pay competitively, you mean? Can pay competitively. You can also look at geographic pay scales.
- 33:40I know that's a very controversial topic, not just in state government,
- 33:44but probably in a lot of different industries.
- 33:47But, you know, let's face facts. It costs more to live in Mecklenburg County
- 33:51than it does in rural eastern North Carolina.
- 33:54Well, I mean, we've talked. Not that rural eastern North Carolina is a bad place
- 33:57to live. That's where I'm from. I love eastern North Carolina.
- 34:00But there are differences. They wouldn't probably mind being called more affordable
- 34:03either. But there's differences in affordability. You dealt with that in the
- 34:07university system as well.
- 34:08You've got some of our universities where folks say they just can't.
- 34:12If they're in a vacation area, they just can't afford to live within a reasonable
- 34:17drive of the university where they work.
- 34:18So, yeah, that's a big issue. Yeah, my wife served for eight years on the board
- 34:23of trustees at Western Carolina. So I know exactly what you're talking about.
- 34:27Western Carolina has a tremendous issue with housing for faculty.
- 34:32A lot of faculty live in the Asheville area or in the suburbs of Asheville,
- 34:38and they commute in 45 minutes to an hour every day because there's just no place to live.
- 34:43And the weather makes the commute hard. It does. There's no straight line.
- 34:47Right. You're out west. Well, while we have you, I don't want to miss the opportunity to ask you.
- 34:51So, you know, we've covered your DMV audit, and then we've covered some of the
- 34:55DAVE Act stuff and how state employees could be affected by your work and how
- 35:00they can be, hopefully, helpful to y'all in doing your work.
- 35:03But I also would be remiss if
- 35:06I didn't ask you about the things I asked you about before in your
- 35:09office that we've heard so much from folks
- 35:12over time about contracts the state has where employees see these contracts
- 35:17the state has with private business and we've had reports to us from things
- 35:22they've seen in these contracts that are sometimes very outrageous you know
- 35:25I don't know I haven't been in these contracts and nobody in the public can
- 35:29get in these contracts but you'll be able to get in these contracts.
- 35:32Is that part of the plan for DAVE Act work?
- 35:34Yeah, and that's part of the plan generally on accountability.
- 35:38Okay. And one of the broader issues across state government,
- 35:42and I think it relates directly to the contracts, is the metrics and what private
- 35:47industry calls KPIs, key performance indicators, and the lack of those in state contracts.
- 35:53I think is really important and people who
- 35:56contract with the state and are running
- 35:59successful businesses that are giving value to
- 36:03state government by way of contracting
- 36:07don't have a problem generally at least in the conversations that I've had over
- 36:12the last eight months in office don't seem to have a problem with meeting metrics
- 36:18or having metrics and key performance indicators in contracts for whatever reason,
- 36:24many of our contracts across state government lack metrics.
- 36:28Metrics are important. We got to measure the success. Again,
- 36:31it goes back to my broken record theme of return on investment.
- 36:35How do we know we're getting a return on investment if we're not measuring something?
- 36:40So there are areas where particularly austerity in contracts should be encouraged and important.
- 36:49There's also areas where we can encourage best practices.
- 36:54You know, for example, pretty large contract, and I'm just familiar with this,
- 36:58contract in Pender County, new bridge that went in Surf City over to Topsail Island.
- 37:05You know, they're a tricky one to build. Well, it was a tricky bridge to build,
- 37:09but there was an incentive plan in that bridge to finish that bridge early.
- 37:12And there was a bonus in that contract to finish that bridge early.
- 37:17And that contractor finished that bridge early and earned a fairly substantial,
- 37:23I believe it was a seven figure bonus to finish it.
- 37:27But they got it done quick.
- 37:30There is an example of sort of a metric, an incentive metric that's put into
- 37:34place in a contract to get something done quicker.
- 37:36So I think we need to focus on that, what helps things move more efficient quicker. Also,
- 37:44where are we spending money that we probably shouldn't be spending money?
- 37:48To your point, in anecdotal stories that I've heard as well about certain benefits
- 37:52in contracts that are seen kind of, why is that in there, right?
- 37:57And without there being a return on the investment, right?
- 38:01So anything that's in a contract with a contractor, and again,
- 38:04I've entered into contracts with folks and, you know, we're not perfect.
- 38:08We have mixed results sometimes.
- 38:10Sometimes I don't quite get the result that I was hoping for,
- 38:12and I'm learning that over the first eight months.
- 38:15So you have to be careful in whatever part of state government that you operate
- 38:20to make sure that you're holding contractor speech to the fire to get things done.
- 38:24I think employees just want to know that that's also, that you're not.
- 38:28It's just very important to look at state contracts as well.
- 38:33Because people think government efficiency is honing in simply on state workers
- 38:37and expecting that to be when that's not even the largest part of what's spent and done.
- 38:43There's a lot of value that private industry can bring to state government through
- 38:48well-drafted and really well-thought-out contractual relationships.
- 38:54I see that as a huge value. But we've already reported on some contracting.
- 38:59For example, there's a contract whose total value is about $1.5 billion with
- 39:05information systems over at DHHS.
- 39:08And that's a contract where I think DHHS is working really hard to sort of hone
- 39:15in on some metrics and looking at what they're getting in return for that particular contract.
- 39:22And from what I understand, they've got a good working relationship to try to
- 39:26hone in and make that work even better, particularly as they move into a new
- 39:31facility here at the fall of 25.
- 39:34Well, what about the, you know, I've spoken to everyone that'll listen for I
- 39:39don't know how many years about the secret contracts with the health plan and
- 39:43with investment managers in our retirement system.
- 39:46You know, it's a $120 billion retirement system with contracts that we can't
- 39:50see with our investment managers.
- 39:52So and it's six percent of the state employee salary going in to fund it every
- 39:56month when there have been times in our working career at Scenic where the state
- 40:00put in nothing, but the employees did have to keep putting in six percent every month.
- 40:04There was times some of those funds were escrowed and we had to take it to the
- 40:08Supreme Court to get that fixed.
- 40:09So people want to know that they're getting a good deal. And I think there is a lot of feeling there
- 40:15of positivity about Treasurer Briner really having very solid intentions to
- 40:19bring those health plan costs down and to base very, obviously,
- 40:23his track record on investing is great.
- 40:25But in terms of the transparency, the fact that these are huge,
- 40:29huge, the biggest public contracts we have, I think, would be health plan and
- 40:33retirement system, almost undoubtedly.
- 40:36Yeah. I mean, I think you raised some really valid points with respect to,
- 40:40particularly on the health plan and the contractual rates that our third-party
- 40:45payer is negotiating with providers.
- 40:47And that is a universal issue of what in fact our insurance companies and the
- 40:54third-party administrator in our case, what are they paying?
- 40:57What rates are they paying? Why are they paying a certain rate?
- 41:00And is that rate higher in some instances than even what a private insurance plan may be paying?
- 41:06And does that inadvertently affect the validity and the stability of the state
- 41:12health plan and the fund?
- 41:13Yeah, and raise costs for all North Carolinians. Right. So those are legitimate
- 41:17concerns. I will say this, you know, I know Treasurer Briner really well,
- 41:21and, you know, we've worked really well together as a team.
- 41:25You know, as of the recording of this, for example, he just announced the discovery
- 41:29of $170 million in And it was really skiff money, money that was sort of has
- 41:34already been allocated.
- 41:36And people won't know what you mean when you say skiff money.
- 41:39Well, it's money that's been allocated to a capital project already and just hasn't been spent.
- 41:45Or maybe the project, believe it or not, came in under budget and that money
- 41:49was not actually spent. So I think it happens.
- 41:52It can and it does, you know, and I think that that shows his hard work and
- 41:57intention of getting his team up to speed over at the treasurer's office to
- 42:01really work on behalf of taxpayers.
- 42:04You know, he he went and got legislation changed to give away authority and power on his own behalf.
- 42:11I mean, no longer is North Carolina a state that has a single trustee.
- 42:15There's going to be five trustees of the state retirement fund.
- 42:20And so that, I think, is a step toward more transparency because you're going
- 42:24to have people that are on a board.
- 42:28And I get what you're saying, but there are areas that we need to take a look
- 42:32at in terms of transparency.
- 42:34And that's something I've talked to the treasurer about.
- 42:38And so best I can tell you is a work in progress and more to come on that.
- 42:42Fair enough. We'd love to hear more at a later time when y'all have had more time.
- 42:46It's a lot to digest. I mean, seriously, these are huge issues with huge amounts of money.
- 42:51So it's got to be a little overwhelming. I know you're not overwhelmed,
- 42:55and I know you've got full confidence in your staff, which you've expressed a lot, which is awesome.
- 43:00But it is daunting, the sheer amount of stuff that's out there.
- 43:05And we've got a great staff. I mean, I was really blown away by the civil servants
- 43:11that work in the auditor's office.
- 43:13And I told you before, and I've told other folks, you know, I thought I'd have,
- 43:18I don't know, 60 or so resignation letters on my desk, and that didn't happen.
- 43:24And, you know, and I've said this, I think most folks that work in our office,
- 43:29and I can only speak to my experience, they don't really care what political party the boss is in.
- 43:35They just want somebody that's willing to show up for work every day,
- 43:38willing to support them in their efforts to serve the public.
- 43:42And is willing to put the office on a mission.
- 43:45All right. With a purpose. And we come in every day. And that's sort of our
- 43:49goal is we've been working through the strategies of our audit plans and how
- 43:53we're going to continue to build on some of the momentum that we've generated
- 43:58over the first part of this,
- 44:00of my administration in the last six,
- 44:02eight months. How are we going to build on that?
- 44:05So that our team knows, you know, when they show up on Monday morning,
- 44:08they know what they've got on their plate.
- 44:10They know what's ahead and they know what the goal is.
- 44:14Some structure makes everybody feel better. Yeah, and it is daunting because,
- 44:18you know, we're changing the culture at our office.
- 44:21Not that there was anything wrong with the culture before, but we just want
- 44:25to take it in a little bit different direction, modernize it,
- 44:28be more impactful to everyday North Carolinians while still maintaining our
- 44:34reputation and the tradition of the auditor's office having positive effect
- 44:39on agencies and interagency activity.
- 44:41So that's been a change. And there is a lot to look at.
- 44:45This new technology that we're bringing online, though, it's going to really help us.
- 44:49We're going to be able to, I am very confident that in the coming months and
- 44:56in the next year or two, you're going to be able to see increased transparency in terms of the dollars.
- 45:02You know, and we've done it in our own office. I put my budget online and I
- 45:05put our expenses online.
- 45:06So I don't feel like I can go ask other agencies to tell us how they're spending
- 45:12money without showing taxpayers how we're spending their money in the state auditor's office.
- 45:17So we put that out and we're going to have more dashboards. We have our Helene
- 45:21Spending Dashboard, which is our first effort to really bring a watchdog approach
- 45:26to the state auditor's office that's front and center.
- 45:29And we're showing taxpayers how their money is being spent.
- 45:33That dashboard is getting more and more robust. And I know folks,
- 45:37they kind of joke around and call me Dashboard Dave, and that's okay. I can live with that.
- 45:41I can live with that as long as it's— I love stuff like that.
- 45:45Right. I love it. So if you haven't been to the auditor's website—
- 45:48Go to it. Yeah, it's auditor.nc.gov. It is informative.
- 45:54Sign up for our newsletter and you'll get alerts when we release a new audit
- 45:58and you'll get our newsletter that comes out on now a regular basis where we're
- 46:02talking about things that we're doing and want people to be informed about what
- 46:06the auditor's office is all about.
- 46:08And if you have tips and we're wanting to, I think we're in the process of sort
- 46:14of expanding The typical tip line at the auditor's office, you can call the
- 46:18office and that's fine. Go to the website to get the number.
- 46:21If I gave it to you, you wouldn't remember it. It's easier just to put in the
- 46:24Google machine, North Carolina Auditor, and it'll pop up.
- 46:27You can go on the web or you can call in a tip and not just about waste,
- 46:31fraud, abuse, but how about some areas where you,
- 46:35if you're a state employee and you have some ideas about how your agency could
- 46:40run more efficiently, we'd like to hear about it.
- 46:42Because, again, we can roll that into our DAVE Act work because we want to hear
- 46:47from people who work for the state and are serving the public.
- 46:50How can we be more efficient?
- 46:51Not just I feel like we're wasting money here or there's fraud there. And that's important.
- 46:57Some people are going to be reluctant to reach out no matter where it's from.
- 47:01They're going to feel like either their IP address can be traced to them.
- 47:04And there is an ingrained thing in public employees that is you will get in
- 47:10trouble if you talk about stuff.
- 47:11I get that. I worked at the insurance commissioner's office,
- 47:16and I was an assistant DA, so I've been a state employee two times before.
- 47:21Being elected state auditor. So I certainly understand that.
- 47:25But best I can tell you, even with all the great technology that we're putting
- 47:29to use on our audit work, we're not tracing IP addresses.
- 47:33We don't have time to do that, nor do we have an interest in doing that.
- 47:37And we do get anonymous emails and we do answer them.
- 47:41I've developed a, put together a constituent service team in our office.
- 47:47And we're helping people, too, that may have frustrations in other areas of state government.
- 47:54It may not be in our lane, but we're endeavoring. If you contact our office,
- 47:58I've asked our constituent service team to do everything they can to help somebody
- 48:03that calls the state auditor's office with an issue.
- 48:05And we're doing that. And that's part of our service as well. But tips are important.
- 48:10And they really are. And we respond to all of them. and we look into every one
- 48:15of them. You'd be amazed. Y'all have heard it here.
- 48:18Call our office and go to the auditor's office. Yeah, absolutely.
- 48:21If at the end of the day, you simply don't feel comfortable doing that,
- 48:24contact Scenic and we will let the auditor staff know.
- 48:27We're happy to try to be of help in any way.
- 48:31We can't, we think state employees, again, will be one of your most valuable
- 48:35assets in terms of doing the work of safeguarding the public's money.
- 48:39We can't do it without them.
- 48:41Number one, state government doesn't work without people willing to serve the
- 48:45people and their fellow citizens.
- 48:47Let's just get that clear, right? And we know that. But we can't do our work
- 48:51at the state auditor's office to hold folks accountable without getting tips
- 48:54and information about things.
- 48:56And there's no guarantee that we're going to find anything as a result of every
- 49:00tip. And maybe there's nothing wrong here.
- 49:02Like, maybe there is nothing to see here. And that's fine. We're glad we will
- 49:06report back what we find.
- 49:08But oftentimes there is. And it's really important that we have vigilant folks
- 49:13who are working day-to-day across state government to let us know what they see.
- 49:18Well, thank you. It's such important work, and we really appreciate you taking
- 49:21the time to come talk to us and to our listeners about what it is y'all do.
- 49:26Hope you'll come back soon and let us know the latest and greatest out of the
- 49:30State Auditor's Office. I'm glad to do it. We'll be here anytime you ask.
- 49:34We'll see you next week at convention. Yes, be there. And I'll save my question
- 49:38on whether you think Bill Belichick will have a good season this year or until
- 49:43later. No, I want to know.
- 49:44He has to make the proclamation. Actually, the highest paid state employee,
- 49:49I believe. Oh, wow. That makes sense.
- 49:52He's the highest paid state employee. I would say better than six and six. There you go.
- 49:59How about that? That's all we can ask for these days. That means nothing to me. Does that mean 100%?
- 50:04No, that's good enough for a bowl, though. So, well, thank you so much for joining
- 50:09us. Oh, I get it now. Wins, losses.
- 50:12Yeah. I thought it was some sort of like very sophisticated.
- 50:17No. Okay. Wins and losses. Wins and losses. Well, I hope so.
- 50:20Yeah. You've been very generous with your time. I think we kept you a little over, but thank you.
- 50:25All your. Glad to be here. I'm glad. Thank you for having me. Okay. Thank you.
- 50:33All right. That was a great interview. I didn't know him very well,
- 50:36even though he is a state auditor, a member of the Council of State, and I should know him.
- 50:41I thought it was very personable. Yeah, I'm excited that he's coming to a convention
- 50:45and that our folks will get to hear from him there.
- 50:48And you guys get to hear from him here. Look, he's definitely taking the Office
- 50:53of State Auditor and making it something that people, more North Carolinians,
- 50:57will understand what it is.
- 50:59I think it's just always kind of been there. And most people just really don't know what it is.
- 51:03Yeah, and I think our discussion just shows that we can question,
- 51:06you know, politicians. Our elected officials, yeah. But we can also agree with
- 51:11them at times and get along with them.
- 51:13We all have to work together. It's not personal. None of this is ever personal.
- 51:17Like when we ask questions, we ask questions because we legitimately want to know the issue.
- 51:21Or we point things out because we legitimately think that's our duty to our
- 51:25members is to make sure people in power hear their concerns and get these things pointed out to them.
- 51:32Because there's legions of lobbyists
- 51:33pointing things out for big corporate interests and state employees.
- 51:39Have us, you know? So it's our job. And I think that almost everybody that we
- 51:44run across in politics understands that and they're fine with it as long as
- 51:49it's... Generally, we're open to the conversation.
- 51:50So, yeah. But I thought he was very open to anything we wanted to ask.
- 51:54And I really appreciate that. And he said he'd come back.
- 51:57So that's great because so many things to cover.
- 52:01You know, I was really encouraged by all the talk of technology and using it in the workplace.
- 52:07And, And, you know, the dashboards were pretty cool. I looked them up after
- 52:10our interview on his website.
- 52:13Moving with the times. Yeah. I did have a kind of a question I wanted to pose to you folks.
- 52:20There was a part where he was saying, you know, we have a lot of vacant positions.
- 52:24I'm just going to summarize, and it probably won't be perfect,
- 52:27but we have vacant positions, say, at DMV.
- 52:30What if we paid the people who are there more and were able to do that and infuse
- 52:36technology into the job and, you know, solve the problem? How do you think members
- 52:42would react to something like that?
- 52:43I think people would be fine with that where it would work.
- 52:46I think there will be situations where if you paid the people who are there
- 52:50enough, you wouldn't necessarily need more of them because their aptitude would be more.
- 52:56But there's other situations where you could increase the pay to where you're
- 53:00not having vacancies, but there's not a way technology can readily address it.
- 53:05And some things are face-to-face. You know, and like driver's license examiners,
- 53:10that is one of the easy ones.
- 53:13There is not a robot yet to get in a car with somebody and tell you if they're
- 53:16going to be a good driver.
- 53:18So just to clean that up a little bit, what I was saying, like,
- 53:20he was saying that he could introduce technology to make their work more productive, I guess, right?
- 53:26Sure. I mean, yeah, I think state employees. The technology should do that. Right. Yeah.
- 53:32And like I was saying, it's have and have nots in state government.
- 53:36There are agencies that have really great technology up to, you know,
- 53:40the latest and the greatest.
- 53:41There's others that are dealing with really antiquated stuff.
- 53:45And DMV was one that he covered very well in his audit about how people showed
- 53:49his staff what they're working with.
- 53:51And it was just not anywhere close to modern.
- 53:56I was also encouraged by how he said he was like he approached the auditor one
- 54:01positions at his office and asked them how they could do things better.
- 54:05Or, you know, he was willing to work with the state employees in the DMV office.
- 54:10It's important to hear from the people who do those jobs every day. Yeah. So...
- 54:14Hopefully that'll continue. And a great interview. We'll have him back and we'll
- 54:18see him at the convention as well. Yeah.
- 54:20Now let's move on to the Gen Z moment.
- 54:23What's going on? Since we were talking about money, finances.
- 54:27Budgeting, I figured we could talk a little bit about what Gen Zs are buying
- 54:32and what we like to spend our money on.
- 54:35So I found an article that kind of starts with something shocking to me.
- 54:40So Gen Zs make up about a quarter of the population, as we have previously discussed.
- 54:44And our spending power is likely to reach $12 trillion by 2030. That's too much.
- 54:56So as a global digitally native generation, Gen Z is interested in the environment,
- 55:04authenticity, and quality in its shopping habits.
- 55:08So some things that it kind of talks about is... I mean, is that like farmer's
- 55:13market? One thing is Gen Z is very quality conscious.
- 55:16We're prioritizing buying high quality items over those that are on sale or
- 55:21cheaper than the alternative.
- 55:22Oh, I'm calling shenanigans on that. Wait a minute. Not me.
- 55:26I'm always looking for a deal. I look at Amazon all the time and will buy the
- 55:31cheapest of what I can find. But.
- 55:33That's what I'm saying. There are a lot of people in my generation who do prefer
- 55:37to buy simple, basic items that are high quality, especially when it comes to clothes, for example.
- 55:45They want simple, basic items that are high quality rather than having to buy
- 55:50as much. I don't think they feel the need to have a ton of stuff like we did.
- 55:53They'd rather have a few. I think that is true of y'all.
- 55:57That's a good thing. That's true. I guess I was kind of thinking of the Amazon
- 56:02purchases where you buy the off-brand stuff.
- 56:04All kinds of things. But I guess maybe that's our generation doing that.
- 56:10Amazon Essentials. Yeah, Amazon Essentials. My daughter did go,
- 56:14was taken back to school shopping by her grandma, and she came home with like
- 56:18two shirts and a pair of pants.
- 56:20And I'm like, grandma's taking you out shopping. You need to get more than that.
- 56:24That's right. She's just not very materialistic. I guess you're right.
- 56:28They're really not. That's good. Yay. And a big thing that it also talks about
- 56:32is with the oldest members of Gen Z, approaching the age that we get married,
- 56:37buy a home, and have children, we're less concerned with those landmarks than previous generations.
- 56:43One of our top aspirations is global and domestic travel. We want to explore it.
- 56:49You and I had that conversation earlier today. Yeah, do it.
- 56:53Gather ye rose bullets while you may. Yeah. As me and Suzanne were talking about
- 56:58earlier, I'm young right now.
- 57:00I don't have kids. It makes it a lot more expensive to travel with kids.
- 57:04And so when I get the opportunities. And less fun.
- 57:08Not the same. When I get the opportunities to go places like Hawaii,
- 57:12which I'm going again, I'm going to take them.
- 57:15And I'm going to make the best out of it. Even if I'm sitting there saying,
- 57:19well, I'm kind of broke right now because I'm doing this big thing.
- 57:22The money comes back. The experiences don't. I think that is a big philosophy
- 57:26in our generation is that money will come back to me.
- 57:29Perfect. So they should all join Scenic because that's value. Yes.
- 57:34Another thing is that Gen Zs are very health conscious and are very prone to
- 57:41choosing health conscious products, such with desirable nutrients,
- 57:45ingredients or things that are eco friendly.
- 57:48So when it comes to beauty products, we look at cruelty-free,
- 57:52clean, natural fragrances, which maybe is part of the reason that,
- 57:57as we've talked about previously, Gen Zs are a little bit healthier than previous generations.
- 58:02Because we are looking at those all-natural options and those cleaner organic
- 58:07options. Well, y'all never drank out of the hose.
- 58:10I did. Did you? I lived in the country. Yeah. Well, you're one of the only ones. She's a country Z.
- 58:15I was living in outskirts of Nashville, Tennessee until I was 11.
- 58:19I was outside pretty much all day until mom said, okay, you can come in.
- 58:23They probably have bottled water there.
- 58:26Not where I was at. Yeah, because most of your generation, we put a water bottle
- 58:30around your dadgum neck and It acted like you could never find any water otherwise.
- 58:35No, my parents just sent me outside during the summertime, said, spend all day out there.
- 58:40You want some water? Drink from the hose. It's there. Mom and dad knew.
- 58:44A horse's drink from it. It's good enough for you.
- 58:47Well, you did mention the word engagement just a minute ago.
- 58:52Did something happen this week in pop culture that was important?
- 58:56My favorite people Taylor Swift and Travis Kelsey are officially engaged I cannot
- 59:03believe we didn't discuss that with Auditor Bullock.
- 59:07So Dave what do you think considering it was asked to the president of the United
- 59:13States we probably should have I mean it was funny because J.D.
- 59:17Vance you can see his face in the video and he's laughing like why is this a
- 59:21question I was watching BBC News and it was it was one of their headline stories. To Trump's credit.
- 59:29He's not always been the biggest Taylor Smith fan. No. He had a classy answer. Yeah.
- 59:34Yeah, I should have asked, instead of asking about the Belichick years at Carolina.
- 59:40I don't know. That was a valid ask. Yeah. Well, I just figured since he's been
- 59:44on the board of trustees, he would have some insight. Exactly. Taylor and Travis.
- 59:49Or is it Travis and Taylor? Oh, it's Taylor first, always. I did notice that
- 59:55Mama Kelsey, Donna, she was at the Biltmore house the day that the engagement was announced.
- 1:00:03So maybe she was scoping out a spot for the wedding. Maybe they'll get married
- 1:00:07at the Biltmore. That would be cool.
- 1:00:09Very cool. I bet that would be so expensive. This is my version of the royal wedding.
- 1:00:15This is true. This is my version of the royal wedding. Do you think it'll be televised?
- 1:00:21I don't know. I'd be happy if it was so I could watch it.
- 1:00:25But also, they do like to keep parts of their lives personal and private.
- 1:00:29So I would also respect that decision if they decided to keep that to a private ceremony for just them.
- 1:00:35What if they got married on the 50-yard line at the Super Bowl?
- 1:00:39I think that would be iconic.
- 1:00:42Just throwing that out there. It could be the halftime show.
- 1:00:44Especially if the Chiefs were back in the Super Bowl, just him in his Chiefs uniform.
- 1:00:48What if they weren't, though? Like, what if there's two other teams playing there?
- 1:00:53And the Baltimore Ravens were like, what? What is going on?
- 1:00:57Have Jason be the officiant. Well, that would be great.
- 1:01:01Okay, play my song. John's worky weird.
- 1:01:05Music.
- 1:01:10Say that when you're done with the gen z minute you're done with it like you
- 1:01:16don't even know we were wrapping up well apparently we were because you're like
- 1:01:19play my song he's like all right i was trying to transition from that to this
- 1:01:24i do want to also point out one more thing but,
- 1:01:27i would have thought that if taylor swift ever got engaged the way all of us
- 1:01:33would know about that would have been sam without question like i would have
- 1:01:36put my my life down on that it was john Yeah.
- 1:01:41Fun little fact. I was trying to have a 30 minutes away from my phone while
- 1:01:46I worked and just trying to work in peace during that time.
- 1:01:51That's why I was not the first one. I told you like on the teams.
- 1:01:57Yeah. And you didn't respond. So you may have you may have gotten it somewhere
- 1:02:01else. I'm telling you, John was right. I was on it, man. I jumped on it.
- 1:02:04I got it. I have found it curious that you have known Taylor information.
- 1:02:09I think it was just about as much as she has. Just saying. Well,
- 1:02:12you have a daughter. Daughter and a wife. And I had to tell them first, right?
- 1:02:17Well, it's fun is you also weren't the only one who texted me.
- 1:02:19Both of my friends, my brother's girlfriend texted me and said,
- 1:02:23how are we taking the news?
- 1:02:24And I was like, I'm ecstatic for them. I was ready to go out and buy a confetti
- 1:02:29cannon and be like, woohoo, go them!
- 1:02:34And then... I gave it five years. Oh, John. Oh, my God. No, I'm just kidding.
- 1:02:40I just wanted to say something shocking.
- 1:02:41What's our question, John? No, question of the week. So, convention's coming
- 1:02:45up. What's your favorite part of convention?
- 1:02:47Oh, I like at the end of the banquet when our staff, we kind of let our hair
- 1:02:53down and we dance with the band or the DJ, whichever it is. We just kind of get to let our hair down.
- 1:02:58We made it through the week. You know, successful convention.
- 1:03:01It's over, so we can just. Oh, it's so good whenever it ends. Yeah.
- 1:03:06I mean, not that it's bad, but like, it's like, I would just,
- 1:03:09Yeah, I mean, it's an exciting week. A lot of stuff happens. It's a busy, yeah.
- 1:03:13It's an extraordinary amount of organization and execution.
- 1:03:18It is a huge endeavor.
- 1:03:21So, yes, there's tremendous relief that it went okay.
- 1:03:24People will never know how much it goes into it. No, and that's the goal.
- 1:03:26You never want people to know everything that could have gone wrong or did and
- 1:03:30you handled and, you know, try to make it seamless.
- 1:03:33That's right. What about you, either one of you? I think one of my favorite
- 1:03:37things is when I'm crawling around on the floor in front of everyone taking
- 1:03:41pictures and I can make someone on the stage laugh or giggle.
- 1:03:47I love it because then I just get some of the best photos and they're super
- 1:03:52cool. You have to do a lot to get those pictures. Yeah.
- 1:03:54You put in that work. Shout out to Junior.
- 1:03:57He gave me knee pads to crawl around with this year because last year I went
- 1:04:01home and I had massive bruises all over my knees. Junior's our political action
- 1:04:07committee chair. You're human. Yeah.
- 1:04:09Good man. So he gave me some knee pads for this year, so I won't be crawling on straight floor.
- 1:04:14Yeah. Just for me, it's dancing. It's nighttime. We work so hard.
- 1:04:17You know, the delegates and the staff work so hard during the day.
- 1:04:21And at night, we dance. And I think that's just our thing. Compression.
- 1:04:26And my favorite part is Artis's Report. Thank y'all, everybody, for the part. No.
- 1:04:32No, my favorite part is either. It's the best hour and a half.
- 1:04:35It used to be the dozen cookies that you could get for room service.
- 1:04:39But they don't do that anymore.
- 1:04:40You can't do that. Those were the days. I'm sorry. I missed the days when I
- 1:04:44used to be able to get cookies and milk.
- 1:04:46They were so good, too. And it was cheap. It was like $5.99. Yeah.
- 1:04:49Now I want to go to Insomnia Cookies tonight. We need to get that back in our contract.
- 1:04:53But I think it's, well, I mean, it's obvious. Like, you know,
- 1:04:57it's a great, I have a great time there. I really do, even though it is a lot of work.
- 1:05:01But the pillows on the bed. I love the pillow.
- 1:05:05I just love that I can sleep in either bed. I usually end up in a room with
- 1:05:08two double beds and I will collapse onto one when I come in the room.
- 1:05:12And I'm like, I'm going to take a nap here for 20 minutes.
- 1:05:16And then I'll be like, okay, well, I'm going to bed now. And I like to be in
- 1:05:19that bed for sleeping. Yeah. But the pillows.
- 1:05:22I'm going to have to pay attention to the pillows. I love them.
- 1:05:25And my wife, Ashley, tried to buy me some for Christmas or something.
- 1:05:30Like, she went to, like, the Sheraton website, the real one in the pillows,
- 1:05:34and it wasn't the same. Not the same. It just wasn't the same. Really?
- 1:05:38Yeah. And it is. There's a variety of pillows. There's so many different sizes,
- 1:05:41too. You can find something that your head feels good on. The pillows are great.
- 1:05:45Even remember the pillow. Okay.
- 1:05:46I will say, every year my room looks like I'm set up there for a month because
- 1:05:50I'll bring my weighted blanket. I've got that set on my bed.
- 1:05:54I have my clothes on. She literally goes in for a week. Yeah.
- 1:05:57I need it. I can't sleep without my weighted blanket. Do y'all unpack your suitcases
- 1:06:01or do you just live out of your suit?
- 1:06:04I unpack things that are typically hung up so that they don't get wrinkly.
- 1:06:10That's about it. Yeah, your suits are hung up. But everything else,
- 1:06:12yeah, just live out of it. I am. Live out of the suit. Yeah.
- 1:06:14No. And then I always bring. You put it in the drawer?
- 1:06:16I started doing that a few years ago. But it just makes it a little cleaner.
- 1:06:20I'm going to lose stuff. Yeah. I'm going to lose stuff. So I have to maintain.
- 1:06:25I'll lose stuff if I take everything out. Well, I swear that I don't know what
- 1:06:30it was, but I think I lost something last year in that room because I took everything out of my suitcase.
- 1:06:36Well, clearly it wasn't that important,
- 1:06:38but I remember coming home and not being able to find something.
- 1:06:41I was like, oh, must be in the hotel. Oh, well.
- 1:06:44I had an expensive toothbrush and I left there two years ago and I got yelled at by my wife.
- 1:06:50I left my pillow from home. I used to bring my pillow. Don't think I didn't
- 1:06:55turn around and go right back to Greenfield.
- 1:06:57I sure did. I sure did. They held it for me. I went back and got it. But, yeah.
- 1:07:02So next week, we don't know exactly what we will be publishing or when,
- 1:07:05but we'll be doing something.
- 1:07:07We will. And we'll get something out to you guys to listen to live,
- 1:07:10or not live, but recorded at the convention.
- 1:07:13So stay tuned and have a great week.
- 1:07:16Music.