In a joint press conference Tuesday, N.C House Speaker Thom Tillis and Senate President Pro-Tem Phil Berger gave a broad outline of their recently-reached compromise on the state’s $21.3 billion budget for the fiscal year that began July 1.

N.C. House Speaker Thom Tillis (right) and N.C. Senate leader Phil Berger (left) at Tuesday budget press conference

N.C. House Speaker Thom Tillis (left) and N.C. Senate leader Phil Berger (right) at Tuesday budget press conference

The Republican legislative leaders used the half-hour press conference to outline what the budget would do (teacher and state employee raises, avoid kicking some elderly and blind off of Medicaid) but didn’t delve deep into details abgoutwhat cuts could be seen in other arenas.

WRAL’s Mark Binker has a good run-down on what’s known about the budget proposal here. Click here to read Tillis and Berger’s press release.

The state’s teachers would get average raises of 7 percent, working out to approximately $3,500 per teacher, at a cost of $282 million. The teacher salary schedule would also be compressed from 37 steps to six steps, said Berger, the Senate leader.

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With a new school year approaching, many local school boards across North Carolina will join an effort to help end childhood hunger. For the 2014-15 school year the nation-wide Community Eligibility Program (CEP) allows high-poverty North Carolina schools to eliminate collecting school meal applications and offer breakfast and lunch to all of their students at no charge.

One in five American schoolchildren can’t count on getting enough nutritious food at home, which can have a negative impact on a student’s academic performance and development. Ensuring that children show up in classrooms each day fed and ready to learn increases the chances of students being more focused, attentive, and engaged.

At least 36 school systems across North Carolina have confirmed their plans to adopt CEP for the upcoming school year. (See map below) Some local school boards plan to adopt CEP district-wide while others will offer a universal meal program in selected schools within their district.

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A big kudos goes to these school systems that will adopt CEP next year. This serves as a positive step in helping ensuring that all North Carolina students are afforded a high-quality, enriching education.

A listing of all North Carolina school districts and individual schools that are eligible for community eligibility for the 2014-15 school year can be found via the NC Department of Public Instruction website.

This week has already featured several prominent pieces on North Carolina’s unemployment insurance cuts with the final assessment that many jobless workers have likely been harmed and a more balanced approach to trust fund debt based on evidence not ideology was needed.

On Sunday, the New York Times featured a piece by Justin Wolfers of the Brookings Institution that made clear the evidence just isn’t there to support claims made that North Carolina is experiencing an economic boom and job growth resulting from the unemployment insurance cuts. And while he correctly points out that there is too little evidence to draw conclusions about what is happening in the economy, Wolfers fails to acknowledge that the harm to jobless workers from the cuts is significant enough to raise alarm.

Yesterday, Jared Bernstein of the Center on Budget and Policy Priorities followed up in the Washington Post by highlighting this very fact: there has been very real harm from the cuts created for jobless workers who now have fewer weeks to find a job in a labor market with too few and fewer dollars to meet basic needs, as the Budget & Tax Center documented in our recent report.

And then the Economic Policy Institute released a report looking across the country at states that cut unemployment insurance benefits. The report concludes that these decisions were not fiscal in nature but political and have had no appreciable impact on labor force improvements and been completely lopsided in their approach, effectively requiring jobless workers to pay employer’s debt. Here are a few of their key findings that are illustrative for North Carolina:

  • States with solvent unemployment insurance trust funds (the funding mechanism for the unemployment insurance system paid into by employers) before the Great Recession were less likely to borrow from the federal government.  A states’ experience was not a differentiating factor for states borrowing activities.
  • States that remained solvent had not cut UI-dedicate state taxes nearly as deeply as did other states during the 2001-2007 period of recovery and expansion.
  • Eight of 35 states chose to address their unemployment insurance trust fund debt with cuts rather than taking a balanced approach. What most of the eight states share is a recent history of not supporting safety-net programs not more drastic fiscal challenges.
  • Across the eight states, unemployed workers lost an average $252 per week of curtailed benefits just so states could save roughly nine cents per covered worker per week in UI-state taxes.
  • There was no visible improvement in state labor market outcomes—when looking at employment-to-population ration—following cuts to UI duration.

Bottom line from all this national attention, North Carolina policymakers made the wrong choice and jobless workers are being hurt as a result.

Budget writers announced over the weekend that the Senate and House leadership agreed to a basic framework for a final budget deal. That framework includes a pay raise for teachers averaging roughly 7 percent and further cuts to the Medicaid program that provides health insurance and long-term care to children and adults who are poor, disabled, and elderly. There is no question that other vital programs and services will be cut due to a lack of adequate funding, resulting from lawmakers’ choice to make room for unaffordable tax cuts for the wealthy and profitable businesses in 2013.

While the full details of the final budget deal will not be released until this afternoon at 1:30pm, below are five things we expect to be true in the final budget deal: Read More

Veteran Washington Post columnist Dana Millbank gets things just about right in this new essay about the stubborn refusal of the state’s conservative political leaders to expand Medicaid under the Affordable Care Act. Millbank’s column was inspired by Belhaven mayor Adam O’Neal’s march to Washington that was designed to highlight the plight of his small town that lost its hospital thanks the state’s Medicaid decision:

O’Neal arrived on Capitol Hill carrying his hiking pole and wearing trail shoes, shorts and a “Save our Hospital” T-shirt. He was accompanied by about 250 supporters, most affiliated with labor unions, and by civil rights leaders. The hospital closure disproportionately affects African Americans. But Gibbs is white, and so is Crystal Price, who, with her young son, joined the mayor on the stage.

Price, 27 and an employee at Wendy’s, has no health coverage and spoke tearfully about her cervical cancer. “They don’t want to expand Medicaid, so families like mine .?.?. have to decide if we’re going to pay for our children’s health care or our own,” she said. “How many have to bury their loved ones, and how many children like my own will have to grow up without a parent because you want more money in your pockets?”

For O’Neal, any ideological doubts about Obamacare are dwarfed by the disgrace of a young working mother unable to get cancer treatment.

“I mean, that’s wrong,” he said. “Conservatives — everybody — should think that’s wrong.”

Read Millbank’s entire column by clicking here.