A common sense editorial from the Greensboro N&R
The News & Record has a solid editorial on the importance of supporting workers this morning that relies upon our own (well, the Budget & Tax Center’s) John Quinterno.
Editorial: Ways to aid workers
Friday, October 17
(updated 3:01 am)In tough economic times, it becomes even more important to ensure state programs are in place to help workers. The N.C. Budget and Tax Center wisely calls for continued support of two such programs — one in its early stages, one that’s long established — that do that.
One program it supports is the state’s development of “sector strategies” — job training designed to mesh with a region’s most acute employee needs.
The idea is not new: The concept led to the creation of community colleges. In our area, the Piedmont Triad Partnership has done much to promote the strategy, through a three-year, $15 million federal grant that links regional economic development with worker training. Through its WIRED program, the Piedmont Triad Partnership has promoted educational training in areas from logistics to nursing assistants.
Now, Gov. Mike Easley has created a “regional skills partnership” initiative run through the N.C. Commerce Department. That program has provided modest grants to several regions so they can plan how best to meet needs in the allied health industry.
The focus on health care is wise as it’s one of the state’s highest-growth industries. From 1999 to 2005, the state’s overall employment grew only by 0.2 percent, but allied health jobs — positions such as dental, pharmacy and physical therapy assistants — grew almost 46 percent in that time.
The regions’ deadline for plan submission to the state is December, which means that the program’s fate will be decided by the next governor’s administration.John Quinterno, a research associate affiliated with the N.C. Budget and Tax Center, is concerned about the modest program.
“I wouldn’t want it to get lost before it gets the chance to prove itself,” says Quinterno.
Let’s hope that the governor, whatever his or her party affiliation, will support this practical program.
Let’s also hope the next governor makes it a priority to maintain the strength of the state’s unemployment insurance system, which provides weekly payments for up to 26 weeks for those who lose jobs. If not, the system, facing increasing claims because of the poor economy, may go broke.
The center thinks that raising taxes is essential to keeping the system on sound fiscal footing. Now the payroll tax that funds the system is placed only on the first $18,600 a worker makes. Even a slight increase to that figure would bring in additional millions.
Also, the tax rate levied varies per employer, from zero to 5.7 percent, depending on the amount of funds in the system and the employer’s layoff history (more layoffs lead to a higher tax rate). The center recommends eliminating the zero rate as well as increasing the top rate.
No one likes raising taxes, but that’s better than what could occur without a tax increase: an insolvent system that would have to borrow money from the federal government, which then would have to be paid back with interest.
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