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Trust But Verify 
Open Government Is Better Government 
 J
oseph
C
oletti
D
eCember 
2009
POLICY REPORT
NC Transparency
 
trust but verify
 
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open government is better government
policy report
Trust But Verify 
Open government is better government 
 J
oe
C
oletti
D
ecember 
2009
Table of Contents 2 Executive Summary 4 Financial Transparency 8 Process Transparency 11 Regulatory Transparency 14 Conclusion 14 Notes 
The views expressed in this report are solely those o the author and do not necessarily refect those o the sta or board o the John Locke Foundation. For more inormation, call 919-828-3876 or visit www.JohnLocke.org.©2009 by the John Locke Foundation.
 
John locke foundationtrust but verify
 
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open government is better government
xecutive Summary 
Governments have been seeking ways to adopt oradvertise their eorts at open government, sun-shine, and transparency. Recent history is rie, how-ever, with examples o how they have ailed – suchas Gov. Mike Easley’s nancial dealings and the holein the state health plan.Open government helps build trust with tax-payers. Tools that improve openness with taxpayershave also helped government ocials and manag-ers better use their resources. Some state and localgovernments ound ways to save money throughimproved transparency.
Financial transparency 
is an important step to- ward open government. Online budgets, contracts,salaries, and check registers make inormation moreaccessible. Corporate nancial statements providea model in clarity and accessibility. Too many gov-ernment documents are not searchable in any way. When tied to outcome measures such as test scoresin education, this greater accessibility can providebetter insight about which government programs work and which ones do not.
Process transparency 
opens the closed doorselected ocials try to hide behind when dratinglaws. Putting bills online 72 hours beore debateand voting begin, instead o in the middle o thenight the day o a vote, would leave ewer surprisesin legislation. Five-year scal projections or stateand local budgets would also make clear the impactso program changes over time, not just or the yearor two a budget is in eect. Governments shouldalso take urther steps to publicize their meetingsbeorehand, record their proceedings, and makeminutes or archived recordings available online.
Regulatory transparency 
means making theproceedings o non-elected bodies as open as thoseo the legislature, county commissions, and towncouncils. Proposed regulations should be easier tond and understand or those with an interest. Thestate auditor or an independent body should per-orm any audits or perormance reviews. Reviewsshould cover not just how well an agency or pro-gram accomplishes its mission, but also whether themission is appropriate or government.
hy Transparency Matters 
Open government is needed or a healthy democ-racy. Yet much o how government operates is un-known.
Carolina Journal 
rst reported on Gov. Eas-ley’s nancial dealings in 2006,
1
but it took until Bev Perdue took oce and opened state police recordsor details to emerge.
2
The state spent as much as$226 million in excess cost or mental health ser-vices over three years. It took months or the coststo become large enough to gain attention and theull extent o the problem was not realized until thelegislature’s Program Evaluation Division presentedits ndings in July 2009.
3
The $250 million holeor 2009 in the state health plan also caught legisla-tors by surprise.
4
 
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