2018 Fiscal Year State Budget, NC Budget and Tax Center

Troubling signals from the NC Senate on budget priorities

The Senate is set to release this afternoon its proposed budget for how it envisions funding public investments over the next two fiscal years.

More tax cuts that largely benefit the wealthy and profitable corporations will likely be included in the Senate’s budget. The Senate has already put forth a tax plan that will cost $323 million for the upcoming fiscal year 2018, with the annual cost growing to $840 million within five years. The damage of the tax cuts is clear – state officials estimate that the Senate’s tax plan would create a $600 million budget hole within three years.

These choices stand in stark contrast to the priorities of North Carolinians. Take the issue of class size: Parents, teachers and students all want smaller class sizes, but adequate funding is needed to make that happen because state commitments to the classroom continue to fall short in nearly every area.  State lawmakers mandated class size reductions in K-3 classrooms but failed to provide the $338 million needed to meet this requirement. To be clear, North Carolina currently has the funds to ensure that students in lower grades are not in overcrowded classrooms. But the Senate is pushing for more income tax cuts for the wealthy and profitable corporations that will cost $323 million for the upcoming fiscal year. Without these costly tax cuts, North Carolina would have resources to fund the cost of reducing class sizing in our public schools.

The state budget is a reflection of our priorities and values as a state – we invest in things we actually care about and that we know generate positive outcomes for us all in the form of a stronger economy and increased well-being. The Senate’s priorities are not aligned with a vision for our state that delivers shared prosperity and opportunity to all.  Let’s hope they get on track.

Check Also

New budget a roadmap full of potholes and an unclear destination

A new BTC report highlights how the new ...

Top Stories from NCPW

  • News
  • Commentary

Congress has just a few days left this month to enact legislation that would address the immigration [...]

12.2 million - the number of people nationally who signed up for health care coverage using HealthCa [...]

Frenches Creek Finishing lies in the watery lowlands of Bladen County, near Lion Swamp, Conkill and [...]

Historical commission member weighs in on monuments, free speech Valerie Johnson is the Mott Disting [...]

The post That’s how ‘Humbug’ is done appeared first on NC Policy Watch. [...]

The solid citizens of Johnston County, N.C. – in a fateful quirk of geography – for several years ha [...]

Why North Carolina’s coal ash and mental health crises have a lot in common Two of the biggest stori [...]

The post Tax Cuts & Jobs Act for the 1% appeared first on NC Policy Watch. [...]

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