Education, NC Budget and Tax Center

Class-size reduction funding will remain uncertain with scheduled tax cuts

The NC General Assembly moved forward a proposal this week to address their unfunded mandate to reduce class sizes in Kindergarten through 3rd grade.

Its problems aren’t just its inclusion of various non-educational items irrelevant to the class-size debate, but also its failure to acknowledge that an adequate tax code will be required in order to fund the class-size reductions beyond Fiscal Year 2019-20.

Rather than putting a stop to the scheduled tax cuts that will go into effect on Jan. 1, 2019, the NC General Assembly’s plan is to allocate unappropriated balances at year-end in the next year and hope for available revenue in years past 2019.

That is another risky bet for North Carolina’s children and communities.

The sure thing would have been to stop the January 2019 tax cuts, which in a full fiscal year would mean an estimated $900 million to pay to reduce class sizes and make other investments in children’s educational success, such as funding NC Pre-K and addressing the school nurse shortage.

As it stands, reductions of just $400 million are planned for in the final budget passed this summer.

This means that it is unlikely that the revenue necessary to fund the class-size mandate will materialize without cuts to other investments in children and families.

A true commitment to our children’s educational success would put their well-being ahead of tax cuts.

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