Sobering, common sense talk about North Carolina’s economy

Here are two excellent resources for those who want to know what is and has been going on in North Carolina’s struggling economy in recent years:

First is a new report released this morning by John Quinterno of the N.C. Budget and Tax Center (and The Progressive Pulse). Entitled What happened to the jobs? A tale of two economic cycles, the report describes in detail how North Carolina’s essentially jobless recovery of recent years has left it particularly vulnerable during the current recession. Quinterno makes a compelling case that things are going to be extremely tough in coming years – especially if the federal government fails to enact a sizable stimulus plan and North Carolina falls into the trap of trying to cut its way to a balanced budget. To quote:

Perhaps the single most devastating step that state leaders could take is to try to “cut” their way to a balanced budget since the cuts that would need to be made would come primarily in education and human services – the very services that people demand more of during a downturn. For instance, full-time equivalent enrollment in the North Carolina Community College System is on track to exceed the budgeted level by 5.5 percent. Because the state’s two-year institutions are funded on the basis of the prior year’s enrollment rather than the current year’s enrollment, this translates into $19.9 million in net unfunded enrollment costs.33 To accommodate the individuals preparing themselves for new opportunities, more, not fewer, resources will be needed. Given the magnitude of the potential shortfall, state leaders must consider a full range of revenue and spending tools to balance the budget in ways that do the least amount of harm.”

For those who’d like to actually hear some of John’s common sense analyses and prescriptions, check out this recent free ranging interview of John conducted by Raleigh media figure Don Curtis on his “For your information” show on State Government Radio.