Table Talk Episode 18: A Conversation on Local Government, Fiscal Responsibility, and Community Growth | Eastern NC Now

    Host Stan Deatherage and co-host Down East Dave Hudson welcomed Mayor Pro Tem and City Council member Nicholas Fritz to discuss the challenges and opportunities facing the City of Washington and Beaufort County, North Carolina. The wide-ranging conversation covered local government spending, tax policy, education, economic development, immigration, and the role of elected officials in providing oversight of the bureaucratic class.

The Challenge of Government Reform and the "Square Wheel" Effect

    Councilman Fritz described government as a "square wheel", difficult to move and resistant to change. He noted that the bureaucracy is self-perpetuating, comfortable with the status quo, and reluctant to evolve. Stan Deatherage echoed this sentiment, drawing on his 25 years as a county commissioner, often in the minority, trying to push for conservative governance. He emphasized the difficulty of shrinking government without a true conservative majority on the board.

    Fritz acknowledged that he is fortunate to serve alongside fellow council members Joe Davis and Max Perreault, forming a conservative majority committed to fiscal discipline. Deatherage praised this dynamic, noting it was remarkable for the city of Washington, where voters have historically leaned less conservative.

Washington's Fiscal Crisis: A 28% Tax Hike and Mounting Debt

    Fritz explained that Washington's property taxes were raised 28% the previous year, which he said served as a wake-up call for the community. He described how the city's fund balance had dropped so low, to approximately $3 to $4 million, that officials feared triggering a state audit. To avoid that threshold, the city took on debt for relatively small projects, including a half-million-dollar loan for a splash pad.

    The city then continued borrowing for larger projects, a new police station, fire station, AMI (Advanced Metering Infrastructure) project, and other infrastructure improvements. Fritz estimated that city debt ballooned from roughly $4 million in 2021 to approximately $26 million by the end of the current fiscal year, exceeding 100% of annual tax revenue. He and his conservative colleagues have committed to not approving a budget that does not repeal the 28% tax increase, which will require significant spending cuts.

Philosophy of Government: Liberty vs. Expenditure

    Fritz articulated the conservative governing philosophy he shares with Davis and Perreault: "The city progresses not by how much the government does, but by how much the community does." He argued that liberty and government expenditure are inversely related, the more government spends, the less freedom citizens enjoy. Deatherage added that "the government cannot give back to you what it hasn't already taken," warning against politicians who make expensive promises in exchange for political support.

Washington's Stagnant Population and the Path to Growth

    Fritz highlighted a striking statistic: Washington's population has not exceeded its 1960 peak of 9,900 residents, yet the number of government employees and government spending have steadily increased. Deatherage noted a similar trend at the county level, where Beaufort County's workforce grew from roughly 290 employees to 430–440 without a corresponding population increase.

    Fritz argued that traditional economic development strategies, recruiting retail businesses or even manufacturers, have limited impact without population growth. Bringing a new sporting goods store or coffee shop simply redistributes spending among the same residents. Even a new factory employing 100 people is a drop in the bucket for a county of tens of thousands.

    Instead, Fritz proposed a population-growth-first strategy, modeled after towns like Winterville (which grew from 3,000 to 13,000) and Clayton (from 8,000 to 30,000). These communities attracted residents who work in nearby urban centers but prefer smaller-town living. Fritz sees a parallel opportunity: Greenville is growing by approximately 10,000 people per year, and Washington, with its waterfront location and lower cost of living, could capture a share of that growth. He also pointed to Chocowinity as a likely beneficiary given its proximity to the Greenville–Grimesland corridor.

Attracting a World-Class Private School as a Growth Catalyst

    Central to the council's growth strategy is recruiting a top-tier private school to Washington. Fritz described a school model where tuition is kept below North Carolina's school voucher amount, making it effectively free for any resident's child. The curriculum includes Latin and Greek, and graduates are well-prepared for college and professional careers.

    Fritz argued that such a school would be the catalyst that attracts developers, who will build new housing communities, which in turn attract higher-income residents. He noted that families relocating from Greenville will research local school quality first, and Washington currently does not rank well. A prestigious private school changes that equation.

    Deatherage strongly supported the idea, suggesting that vacant or underused public school buildings could be sold to the private school at a reduced price rather than being left to deteriorate. He argued that private school competition would ultimately improve public schools by ending what he called a "one-plus-century government monopoly" on education in North Carolina. He praised the General Assembly's school choice initiatives for making private education accessible regardless of family income.

    Both men emphasized that competition benefits everyone, children compete academically, teachers are motivated to teach at higher levels, parents become more engaged, and the community gains a more educated workforce that can attract additional economic opportunity. Fritz noted that approximately one in five children in Beaufort County are homeschooled, and the public school system has been losing roughly 100 students per year for at least a decade, evidence of strong parental demand for alternatives.

Public School Spending and the Case for Private Investment

    Deatherage provided context on education spending: when he first served as commissioner in the 1990s, approximately 7,200–7,300 students attended public schools; that number has dropped to around 5,500. Meanwhile, the Board of Education's budget is approximately $100 million, and the county spends additional millions on school buildings, including a $10.5 million facility. Fritz contrasted this with the private school model, where private investors fund the operation and provide a superior product without taxpayer-funded construction costs.

The Bureaucratic Class: Government's "Fourth Branch"

    A recurring theme was the power and self-interest of the bureaucratic class. Fritz recounted a city department head telling him bluntly: "You guys come and go. We're going to be here long after you're gone." Deatherage called the bureaucracy the "fourth branch of government" and the largest, noting that the average government employee earns 50% more in salary and benefits than the average citizen paying for that government.

    Hudson drew on his military experience to describe how bureaucracies perpetually seek to grow, justifying last year's budget to secure the same or more funding the next year. He emphasized that elected officials are the bosses of the bureaucracy and must provide clear direction and oversight rather than deferring to staff on policy decisions.

    Fritz proposed an innovative incentive: giving department heads a 5% bonus on any actual expenditure cuts they achieve. Currently, the incentive structure is backwards, departments that have surplus budget money at year's end rush to spend it on discretionary items rather than return it to the general fund. Flipping that dynamic could align bureaucratic interests with taxpayer interests.

County Government Responsibilities and Deatherage's Re-Election

    Fritz asked Deatherage to explain what the Board of County Commissioners actually does. Deatherage outlined key responsibilities: funding public schools (approximately $13–14 million annually plus building costs), solid waste management (with a call to resume recycling), maintaining the county hospital's remainder interest, managing government buildings (courthouse, libraries, community college), funding the sheriff's office (approximately $9 million annually), and administering social services.

    Deatherage expressed concern about approximately $1.5 million in annual grants to various groups and NGOs, arguing that this should be a private-sector function and that accountability for how the money is spent is often lacking. He cited the estimated $9 billion in fraud in Minnesota, much of it flowing through NGOs, as a cautionary tale.

Immigration: Legal vs. Illegal and Local Impact

    The conversation turned to immigration, with all three participants distinguishing between legal and illegal immigration. They affirmed that America is a nation of immigrants and that legal immigration benefits everyone. The issue, they argued, is the illegal entry and the government benefits extended to those who have not followed legal processes.

    Deatherage contended that caring for illegal immigrants is one of Beaufort County's biggest expenses through social services that provide food, housing, and education. He argued that while guest worker programs allowing laborers to come temporarily make sense, the influx of entire families creates enormous costs for education, welfare, and other services. He estimated approximately 15 million people entered illegally through various means during the Biden administration, at a cost he pegged at roughly half a trillion dollars in one year.

    Hudson added that the core issue is oversight, ensuring government benefits go to qualifying citizens rather than being diverted. He acknowledged that many immigrants are willing to work hard, often at jobs Americans decline, but emphasized that there is a legal pathway to accomplish this that benefits everyone through tax contributions and lawful participation in the economy.

Law Enforcement, the Second Amendment, and Civil Unrest

    The discussion touched on recent incidents of civil unrest, with the participants stressing the importance of respecting law enforcement and exercising Second Amendment rights responsibly. They argued that bringing firearms to protest situations is reckless and that citizens should use weapons only in a defensive capacity to protect their homes and families.

    Hudson provided historical context for the Second Amendment, noting it was established both for personal defense and militia purposes in a frontier nation that still faced threats from foreign powers. However, he drew a clear line: engaging armed law enforcement while carrying a weapon is not a legitimate exercise of Second Amendment rights.

    Deatherage expressed concern about the dangers facing law enforcement officers, particularly during late-night traffic stops, given the number of individuals on the road who may be unlicensed, armed, or have criminal backgrounds.