Uncategorized

“White smoke” on Jones Street really a sign of leaking oil

SmokeIn an allusion to the signal that’s seen in the Vatican when the leaders of the Catholic Church elect a new Pope, at least one news media report this morning is talking about “white smoke” being visible on Jones Street. The story accompanying the headline, of course, is that leaders of the North Carolina General Assembly signaled over the weekend that they have agreement on the framework of a state budget deal. Assuming it really comes to fruition, the agreement comes a full month into the 2015 fiscal year.

A closer look at those puffs of smoke, however, reveals them to bear a notably blue tinge — that is, the kind one typically see with an engine that’s leaking oil and about to blow. As Alexandra Sirota details in the post immediately below and Chris Fitzsimon highlights in this morning’s “Monday Numbers,” one important impetus for the agreement would appear to be the latest calculations of the General Assembly’s Fiscal Research Division staff that the income tax cuts enacted last year are harming state budget revenues even more than had been officially forecast – i.e. more along the lines of what the Budget and Tax Center has been predicting all along.

So, keep in mind a couple of things this week as lawmakers and the Governor are falling all over themselves to issue statements of  self-congratulations:

1) Notwithstanding their rosy claims, the engine driving state government — the tax system — remains cracked and badly in need of an overhaul.

2) The current proposed solution — rolling up the window and ignoring the smoke — will provide only a temporary solution at best.

One Comment


  1. William Lundy

    July 28, 2014 at 9:52 am

    Darn…I was hoping we’d chosen a new governor. or budget director.

Check Also

NC business owner explains need for paid leave law

In case you missed it earlier this week, ...

Top Stories from NCPW

  • News
  • Commentary

Jim Womack has a reputation in North Carolina for being many things, but a conservationist isn’t one [...]

Just days after a North Carolina official tapped a Robeson County elementary for a controversial cha [...]

Two groups seeking state contracts to run struggling North Carolina schools have professional ties t [...]

North Carolinians will lose their “precious right to vote,” as U.S. Supreme Court Justice Ruth Bader [...]

The folks running the General Assembly reached a new low this week in their efforts to dismantle our [...]

National civil rights leaders call for the rejection of North Carolina’s Thomas Farr [Editor’s note: [...]

Budgets matter, both within government and inside each household across America, because they demons [...]

Why the legislature now operates this way and why it’s a big problem The North Carolina General Asse [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more