NC Budget and Tax Center, Trump Administration

Four ways Trump’s budget will harm North Carolina

Smart public investments at the federal level can create jobs, raise wages, increase education, and help unlock economic prosperity for more people and places in our country. Here are four ways the President’s plan would take North Carolina in the opposite direction:

1. Trump’s budget on food assistance: Slashes food assistance by $193 billion over 10 years and shifts the cost of more than $100 billion in SNAP benefits, a longtime federal responsibility, to the states.

Effect on North Carolina: North Carolina is the 8th hungriest place in the US, with 15.9 percent of our people not always knowing where their next meal is coming from. In 2015, SNAP reached 1.6 million North Carolinians, targeting the most vulnerable folks to help ensure that older adults, veterans, and children get enough to eat each day. SNAP benefits help to stimulate the state’s economy too, pumping upward of $2 billion into the economy. On average, from 2011 to 2014, SNAP benefits lifted 175,000 North Carolinians, including 81,000 children, out of poverty.

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2018 Fiscal Year State Budget, NC Budget and Tax Center

Report: N.C. Senate fails to prepare for federal uncertainty, state’s growing needs

The Budget & Tax Center has released its initial analysis of the N.C. Senate’s budget proposal in a Brief, “N.C. Senate fails to prepare for federal uncertainty, state’s growing needs.” The Brief follows the money to detail missed opportunities for North Carolina in order to give more tax cuts to the wealthy and profitable corporations, and how the Senate pays for its budget with over-collections, federal money and reductions to the UNC system, Public Health, Housing Finance and Environment and Natural Resources, among other programmatic cuts.

You can read the analysis here.

NC Budget and Tax Center

N.C. invests little to prevent child abuse and ultimately pays a higher price

The Budget & Tax Center has released a new BTC Brief, “N.C. invests little to prevent child abuse and ultimately pays a higher price.” Reports of child abuse and neglect have increased 29 percent over the past 19 years in North Carolina, and the report outlines the importance of our fiscal decisions on the goal of protecting each child from abuse and neglect.

“The long-term impact of child abuse—and Adverse Childhood Experiences—is far-reaching; without a commitment to prevention and to effective systems and support for treatment, the effects of childhood abuse can generate a host of lifetime personal and societal costs.”

According to the report, the estimated annual nationwide cost of child abuse and neglect is $80 billion (2012 dollars), while North Carolina’s estimated annual share is $2.3 billion. As the report points out:

“A serious investment upfront to prevent child abuse is not only a moral imperative, it is more cost-effective than making investments after the fact to treat its costlier effects.”

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NC Budget and Tax Center

Report: Constitutional restrictions on revenue hurt state economies. So why is NC proposing one?

A new report from the Center on Budget and Policy Priorities (CBPP) shows how constitutional revenue limits, like the one proposed in North Carolina by the Senate, can impede state economies. From the report:

“A strong state economy requires high-quality public services like schools, public colleges and universities, and well-maintained infrastructure, among other services. Businesses need well-educated and qualified workers. They need convenient and well-functioning roads, bridges, and ports. And they’re more likely to locate in places with a good quality of life that includes publicly financed amenities like parks and libraries.

“Nevertheless, some states are considering building into their state constitutions restrictions on the growth of state revenue that makes such public investments possible. These restrictions can hurt a state’s ability to provide necessary services to its residents and businesses, putting at risk long-term growth and broadly shared prosperity.”

You can read the full report here.

NC Budget and Tax Center

NC tax policy right now, explained in GIFs

In case you haven’t heard, the North Carolina Senate has proposed a tax bill that they claim cuts taxes by $1 billion. They also claim that these tax cuts are mostly going to help middle-income folks out. These claims are both false.

The billion dollar claim is a rounding error that is nearly 20 percent off the mark.

And this tax cut is mostly going to help the wealthy and powerful corporations. Again.

Not to mention, lawmakers also want to permanently change our state constitution so we can’t change the income tax again in the future. That’s just locking in another giveaway to millionaires that cuts off a vital source of revenue.

These choices would mean we won’t have enough to pay for the stuff that makes North Carolina great. Like roads. And schools. And protecting our environment. What happens the next time we have a big storm like Hurricane Matthew that we need to rebuild from? Read more