(RALEIGH) -- The economic turnaround will come sooner or later, but how does North Carolina prepare when it does? N.C. State University economist Dr. Mike Walden said Medicaid spending is a big budget item that deserves a closer look.

"We might want to rethink how we deliver those kinds of services and there are some states that have experimented with getting what are called exceptions from the federal government to deliver those services in a different way, perhaps a more efficient way," said Walden.

He added that education is another area where the state may need to figure out how to prepare students for the working world in a more efficient way. Walden said there are kids who know what they want to do for a living early in their teenage years, so high schools should re-equip to teach those students proper skills.

Walden also said tax reform deserves a close examination, but it is too hot of a political issue.