JOHNSTON COUNTY - U.S. Sen. Kay Hagan thinks the economy is on track to recovery, and she says health-care reform is a critical national goal.

Hagan, who took office in January, spoke with The Herald recently by phone.

The economy

“I think that the stimulus package is starting to work,” she said. “We're seeing some of those investments in infrastructure and transportation and education.”

The money from the federal recovery bill is starting to flow faster, and positive signs have begun to surface, Hagan said. But a job-market recovery will likely not come until later, she added.

“I think jobs will lag a little bit behind … but once again, we've got the stimulus money out there, and we're working hard to make sure we get the programs up and running,” Hagan said. “We're running swiftly along those lines.”

This recession is a lingering one, but North Carolina's workers could help pull the state ahead early, she said. “I think North Carolina has the most-eager workforce,” Hagan said. “I hear that from companies all the time.”

She sees education as a way to shorten the doldrums — and as a way to prevent another recession. Hagan has introduced a bill that would give schools money to teach personal finance to students in grades 6-12.

“Debt is good for you if you're investing in a long-term investment, but not good for paying for your everyday expenses,” Hagan said. “It's not rocket science; we just haven't taught it.”

Health care

Hagan believes health-care reform is linked to economic recovery. Changes to health care could help small businesses, she said.

“I think small business is having a hard time with the health-care costs,” she said. “We've got to drive down the cost of health care.”

Under President Obama's plan, a government-run program or nonprofit cooperative could compete with private insurance. For either to work, Hagan said, it must stabilize costs, ensure that people can use the plan and avoid adding to the federal deficit.

More money in health education could also drive down public health costs, Hagan said. She supports a bill that would give more money for diabetes education.

In recent weeks, some town hall meetings have echoed with protests against health-care reform. Hagan said that's all part of the process and that the dour economy likely stirred stronger emotions and doubts about health care.

“I think many people are concerned about health care,” she said. “I think it's important for the people in our country to be able to have discussions about any legislation, and you certainly have the right to do so.”

Hagan, a former state senator, said she has cherished her months on Capitol Hill. “It's pretty exciting time, and I am honored to be serving the people of North Carolina,” she said.