In this episode of Carolina Newsmakers, host Don Curtis interviews Brad Briner, who recently took office as North Carolina’s State Treasurer, succeeding Dale Folwell. Briner shares insights from his first several weeks in office, discussing his priorities, challenges, and plans for managing the state’s financial assets, including pension funds, the state health plan, and disaster recovery funds.
Transitioning Into the Role of Treasurer
Briner comes from a private sector background and acknowledges the learning curve involved in stepping into public service. While he expected certain challenges, he highlights his appreciation for the highly professional and dedicated staff already in place at the Treasury. This strong foundation has helped him transition into the role more smoothly than anticipated.
One of the most immediate tasks for Briner has been understanding and managing the state’s financial obligations. He describes the job as overseeing North Carolina’s balance sheet, including assets such as pension funds, the state health plan, and unclaimed property. Additionally, he has discovered smaller but significant financial responsibilities that fall under his office’s jurisdiction, such as administering a new $100 million hurricane relief fund.
Maintaining North Carolina’s AAA Bond Rating
Briner emphasizes the importance of protecting North Carolina’s AAA bond rating, which is a reflection of the state’s strong financial management. North Carolina is one of only 15 states with this prestigious rating, saving billions in interest payments over time. He stresses that maintaining this rating is his top priority, just as it has been for previous treasurers.
His management approach focuses on accountability and transparency. Each division within the Treasury is being evaluated based on key performance metrics. For Briner, the bond rating itself serves as a measure of success, as it signals the state’s financial health to investors and policymakers.
Managing the Pension Funds and State Health Plan
One of the largest responsibilities of the state treasurer is overseeing North Carolina’s pension system, which is valued at approximately $130 billion. The state’s pension plan is 89 percent funded, making it one of the strongest in the nation. However, Briner points out that investment performance has lagged behind comparable state systems, ranking near the bottom nationally. Improving the fund’s investment strategy is a top priority, and he plans to adjust asset allocations to enhance long-term returns.
The state health plan is another major financial concern. Covering over 760,000 state employees, retirees, and dependents, the plan faces increasing costs, outpacing revenue growth. Briner acknowledges the difficult reality of needing to raise premiums for the first time in eight years to keep the plan solvent. He is also focused on long-term cost controls, particularly in curbing healthcare price inflation.
Handling Disaster Relief and Infrastructure Needs
A key issue Briner has been tasked with is managing the recently allocated $100 million hurricane relief fund. His office has worked to streamline the distribution process, ensuring that municipalities receive necessary funding as quickly as possible without unnecessary bureaucratic hurdles.
Briner also discusses the financial strain placed on North Carolina’s infrastructure, particularly in response to natural disasters. While the state has significant reserve funds, ongoing road and bridge repairs will require substantial investment from the Department of Transportation.
The Role of the Local Government Commission
The Local Government Commission, which falls under the Treasurer’s Office, plays a vital role in ensuring the financial health of municipalities across the state. Established during the Great Depression to prevent counties from defaulting on debt, the commission now oversees municipal financial management and approves bond issuances. Briner describes its work as a combination of financial oversight and hands-on consulting, helping local governments maintain fiscal stability.
Addressing Unclaimed Property
North Carolina’s unclaimed property fund currently holds over $1.4 billion in unclaimed assets. The Treasurer’s Office actively works to return these funds to their rightful owners, distributing over $100 million annually. Briner encourages residents to check the state’s website, nccash.com, to see if they have unclaimed funds waiting for them.
Investment Governance and Future Plans
Briner outlines a key initiative to reform investment governance for the state’s pension funds. Unlike most states, North Carolina still follows a sole fiduciary model, where the treasurer has full control over investments. He advocates for a transition to a board of trustees model, which is the standard in 47 other states. This change, he argues, would create greater long-term stability and improve investment returns.
Looking ahead, Briner’s legislative priorities include securing additional funding for the state health plan, expanding disaster relief efforts, and ensuring that pension fund investments generate stronger returns. While he acknowledges the challenges ahead, he remains optimistic about North Carolina’s financial future.
