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Follow the money: How legislative leadership pays for its final budget

Earlier today, the North Carolina Senate gave final approval to the 2013-15 fiscal year budget. The House chamber is poised to follow suit later this afternoon. Throughout the budget debate, legislators have spent a considerable amount of time providing an overview of the final budget but continue to skip over how they pay for the proposal. This practice is not uncommon. How the state raises the billions of dollars that fuel the state budget gets relatively little scrutiny compared to the rest of the budget during the budget process.

But because the final budget includes tax cuts that will primarily benefit the rich [1] while significantly reducing resources to pay for vital services, examining how the state will make up for $683.8 million in tax cuts over the next two years and $2.8 billion over the next five years it is more important than ever.*

Here’s what you need to know regarding how legislative leaders chose to pay for the final budget:

The General Fund availability statement is summarized in the chart below.

Final Budget_Revenue Chart_July24 [2]


*These figures reflect the combined impact of the joint tax plan and repeal of the estate tax. However, the bill that included the tax plan also repealed the School Capital Building Fund, bringing the net impact to $524.4 million over the biennium.