A Cuts Only Approach without Raising Revenue Doesn't Work
Paul Krugman published a piece today entitled The Texas Omen that demonstrates the failure of modern conservative theories about budgeting. The theory that never raising taxes under any circumstances and just cutting spending can fix budget shortfalls and support economic recovery is not working. Texas, the state where this has been implemented most consistently, is now facing one of the worst budget gaps in the country and its ability to educate and train its future workforce has been undermined.
The entire piece is worth a read but one important point is the need in many states, North Carolina included, for policymakers to be sound fiscal managers and recognize the structural problems in state revenue systems that need to be addressed.