The $22.9 billion state budget proposed by the House for the upcoming 2018 fiscal year – and the $23.8 billion budget for the following year – reflects a missed opportunity to embrace smart public investments and prepare for federal uncertainty brought on by cost shifts in Medicaid and food assistance, among other core public program and service cuts proposed at the federal level.
The House budget would continue to move away from historic levels of investment relative to the state’s economic health. The 45-year average of state investments as a share of the economy is 6 percent, which has allowed North Carolina to sustain the foundations of its economy and make transformative investments in early childhood and career training, for example. Under the House’s proposed biennial budget, the level of state investments would remain below that 45-year average: In both years, investments would be held at 5 percent as a share of the economy.
The artificial constraints placed on the level and growth of state appropriations year over year mean that we are falling behind in good times, even as the population continues to grow and the costs of delivering education and health care, in particular, increase significantly faster than the cost of consumer goods and services.
Perhaps most concerning is what the path we are on will lead to: year after year of cuts and no economic boom to celebrate. Read more