RALEIGH, N.C. — State auditor Ralph Campbell's parting shot warns of fiscal and program failures if state government does not respond to rapid population growth, exploding health care costs and education needs from pre-school to grad school.

In broad terms, Campbell's staff recommended more attention to information technology, financial accountability and agency efficiency. However, the outgoing auditor's most prominent point addressed the need for better pay, benefits, and treatment of North Carolina's largest workforce -- state employees.

"If we do not take the kind of steps to attract the best workers we can to public service, then the public is not going to be well-served," Campbell said. "Our programs will falter and the people we need in every position from clerical jobs to top managers will find work elsewhere."

Campbell used software giant SAS as an example for state government. He recommended better pay, on-site day care and workout facilities for state workers.

Campbell wants the risk assessment to become a regular role of the auditor's office. Plus, he hopes state agencies and lawmakers will respond.

Campbell's 12 years as state auditor ends Saturday, when Republican Les Merritt takes over the office.