Meet the Senator: An Interview with Fred Smith

By Christa Gala

Meet the Senator

If you think you’re busy, consider North Carolina Senator Fred Smith. Not only is Smith at the helm of two companies—the Fred Smith Company and C.C. Mangum Company—he is also the chairman of the board at North State Bank and is serving his third term in the North Carolina senate. And, in 2008, he’s running for governor.

His decision to enter the race has a lot to do with what he’s learned from both business and politics. “I think the folks in power in Raleigh count on big government, and I think they’ve failed in what they need to deliver in many areas,” says Smith, a Republican. “The strength of our state is our people, and I think we need to be about empowering people.”

The Beliefs

Fred Smith is a self-made man. More than 20 years ago, he and his brother worked together in Johnston County farming and ranching. His brother decided to diversify and took the leap into homebuilding. Smith followed and today the Fred Smith Company is thriving, building Riverwood Golf & Athletic Club and LionsGate in Clayton, Tralee in Wilson’s Mills and Mingo Creek in Knightdale. Smith is also CEO for C.C. Mangum Company, which builds roads and bridges.

Over the years, Smith learned to navigate and survive the pitfalls small businesses often encounter. Those years stuck with him, and when his five grown kids came on board at the homebuilding company, he began to contemplate politics. “I just looked at the things that were going on and was influenced somewhat by the things I thought were positive and the things that maybe were not going the way I thought they should be,” Smith says. “I felt like I could make a difference if I got involved.” And he did. First as a county commissioner, now as a state senator and, if all goes according to plan, the governor of North Carolina.

His beliefs are straightforward and uncomplicated. Smith wants government to be both effective and efficient, which means streamlining some programs and being frugal with taxpayer dollars. He’s adamant that property rights be protected and that small businesses don’t suffocate before they have a chance to grow wings and take off. “All of these things we’ve worked hard to speak out about,” Smith says. “We want to make sure that small business has a chance to create jobs. The private sector creates close to 85 percent of the jobs we have in this state, and we want to make sure that business has a chance without excessive taxes, regulations or litigation to be able to succeed.”

But the General Assembly can be frustrating. Often it’s difficult just to find an audience for ideas. “It’s hard in Raleigh because the power structure is pretty closed,” says Smith. “One of the great things about being a county commissioner was that everyone had equal information. Everyone had equal opportunity.” But that’s not necessarily true in the General Assembly. “The majority party dictates the agenda, dictates what’s going to be voted on, and that’s something I don’t agree with,” says Smith.

The Growth

Smith’s experience as a builder has also influenced his opinions on the Triangle’s insistent growth. “We’re going to have growth,” he says. “The issue is having quality growth.” For Smith, quality growth means building communities with lots of open space and amenities and also to provide adequate infrastructure to accommodate new residents. “I think growth, done the right way, pays for itself. During the two years that I served as a county commissioner, we built schools and didn’t raise taxes. I think it’s because in Johnston County we were frugal with the taxpayer’s dollar. I think it can be done.”

But there are problems at the political level that interfere. Smith cites one example, where county commissioners must pay a portion of Medicaid expenses to the state. Smith thinks this burden should fall on the state alone, not local officials. “If the state was 100 percent responsible for Medicaid, then the pressure on county commissioners would be relieved and with the revenue stream they now have, they could build the schools and do the things they need to do and provide the infrastructure needed to accommodate our growth.”

Smith says the state has plenty of money, but that it sometimes doesn’t prioritize its spending. And, he points out, since most individuals and businesses must prioritize spending (maybe buying one thing now but waiting until the next year to purchase something else), then government should too.

“We have enough money,” says Smith, noting the state had a $2.8 billion surplus last year and will have $1.1 billion this year. “The issue is priority and to use the tax money for what it should be used for.

“We will try to make sure that the programs that are necessary are the best they can absolutely be. We will try to eliminate those programs that are not necessary to meet the needs of our people,” Smith continues. “The priority is to make good use of the tax dollars our people pay.”

One example Smith gives is to streamline the preschool education programs Smart Start and More at Four because they are similar in scope. “I think we need to take care of our children and prepare them for school, but I think we need to consolidate those two programs and that way we can save on administrative costs. There are a lot of little things we can do.”

The Secret

So, does this entrepreneur and politician ever feel overwhelmed by taking on the possibility of a new title? Not a bit. “The secret to any leadership position is to make sure you have the very best people that you can have to motivate, train, empower and to be able to get the job done and to make sure everyone has a crystal clear understanding about what you’re trying to accomplish,” Smith says. And something else makes Smith confident about his upcoming gubernatorial race: his passion for the job.

“Serving in the senate and serving the people of Johnston and Wake County has really been a privilege,” he says. “They’re good people.” For Smith, a businessman and a politician actually have a lot in common, whether they realize it or not. Both should be intent on improving the quality of people’s lives—whether consumers or constituents. In dual roles, Smith strives to do both.