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Dean BakerEarlier this week, we cross-posted a brief essay by one of the nation’s best economists, Dr. Dean Baker of the Center for Economic and Policy Research, in which he thoughtfully and professionally dissected and demolished the claims made by a Raleigh conservative think tanker in a Wall Street Journal piece. The think tanker’s central claim was that the state’s harshest-in-the-nation cuts to unemployment insurance had spurred all kinds of wonderful economic results in North Carolina.

Apparently not content to be put in his place just once, the think tanker posted a fairly snarky attempt at a response yesterday and today, with an almost audible virtual sigh, Baker took to his keypad (and the CEPR blog) to provide a few more lessons in basic economics. We’ve cross-posted his addendum below:

Addendum:

I see John Hood has replied to my post. Apparently he thinks that if we play games with the start and end dates we can say cutting benefits worked.

Okay, I don’t know what games they play in North Carolina, but let’s just remember what is at issue. The argument for cutting benefits was that if the state pushed people off unemployment insurance (UI) they would be motivated to get a job. We know that North Carolina pushed lots of people off UI. The question is whether there is any evidence this led more people to get jobs.

That gives us two numbers to focus on, Read More

The latest news story from NC Policy Watch Courts and Law Reporter Sharon McCloskey — “All white and overwhelmingly male: Latest departure leaves NC federal courts among lest diverse in the nation” — contains a lot of information that will leave caring and thinking people frustrated and even ticked off, but this passage stands out:

James Beaty, the lone African-American judge on the state’s federal district court, stepped down from his position on the state’s Middle District – which covers the areas from Durham to Winston-Salem – moving to senior status at the end of June.

The result?

North Carolina has one of the whitest and least diverse groups of federal district court judges in the country.

That’s a perception problem for the courts at the very least, particularly given that the ugliness of racial politics has resurfaced in North Carolina.

As Andrew Cohen points out in his article in The Atlantic last November, asking why there aren’t more black judges in the South:

“Indeed, at a time when minorities are being disenfranchised by Republican officials in Florida and Alabama and other Southern states, the continuing lack of black representation on our federal benches sends another strong message of a tolerance for unequal justice.”

And if that doesn’t get you fired up, check out this graphic: Read More

This morning’s edition of Setting the record straight over on the main Policy Watch website has some rare praise for the surprisingly progressive rhetoric emanating from state budget negotiations this week. But it also takes lawmakers to task for their failure to seize upon the most obvious solution to their inability to find a way to fund the essential services (i.e. teachers and health care) that they have prioritized. The best answer to the General Assembly’s budget dilemma, of course, is to halt next January’s scheduled tax cut that will primarily benefit the rich:

“According to the best and most recent estimates, the 2013 tax cuts – which overwhelmingly favor the state’s most wealthy taxpayers – are costing the state more than $500 million in foregone revenue in the fiscal year that began last week. Add to this the fact that the cuts have caused a downward revision of revenue projections by another $190 million and the gap may well balloon to more than $700 million.

Even if lawmakers left these cuts in place, however, and merely stopped the implementation of a yet another round of tax cuts scheduled to take effect next January, the state would still realize $300 million in additional revenue in calendar year 2015 – more than enough to make a significant dent in the education shortfall and solve innumerable problems in the current negotiations.”

Meanwhile, this morning’s lead editorial in the Charlotte Observer has another quick fix proposal — at least on teacher pay: Read More

In case you missed it, WRAL.com had an instructive story last night entitled “NC education spending on a decades-long slide.” The story reported that the percentage of the North Carolina budget dedicated to K-12 has been falling steadily:

“WRAL News reviewed budget numbers for the last 30 years and found that the percentage of general fund dedicated to K-12 classrooms has been on a long, slow slide, even as the total dollars for education increased.

In 1984-85, the $1.89 billion authorized for public education accounted for 43.7 percent of the budget. A decade later, the $4.08 billion authorized in the budget was 42 percent of the 1994-95 budget. By 2004-05, the state was spending $6.52 billion on public schools, which accounted for 41.1 percent of the state budget.

The slide has accelerated in recent years because of the national recession, and the $7.9 billion authorized in the 2013-14 budget meant only 37 percent of the general fund was earmarked for public schools. Even with the North Carolina Education Lottery chipping in money for school construction and early childhood education, per-pupil spending has dropped since the lottery started eight years ago.”

And, of course, as the Budget and Tax Center has reported repeatedly, K-12 funding has fallen in absolute terms as well in recent years when one adjusts for inflation.

The bottom line: There’s no way North Carolina is going to get to where it needs to get if it stays on this track. Moreover,  even under the House and Senate proposals to raise pay, the long-term decline remains unaddressed.

Senator Bob Rucho of Mecklenburg County

Senator Bob Rucho of Mecklenburg County

As Clayton Henkel and Lindsay Wagner report in the posts below, negotiations over teacher pay have taken what appears to be a positive turn this week at the General Assembly with the announcement that the state Senate is willing to back down on its demand that teachers choose between a pay raise and their right to a measure of due process when it comes losing their jobs.

It’s welcome news, but news that is tempered by the fact that Senators apparently kept their fingers crossed behind their backs while they made the offer. Senate Education Committee chairman Jerry Tillman also told reporters Lynn Bonner and Jim Morrill that the matter of teacher due process (i.e. “tenure”) would be back:

“’We’ll get rid of tenure in 2018,’ he said. ‘That issue will be settled.’”

Perhaps even more frustrating than Tillman’s statement in the aftermath of yesterday’s negotiations, however, were the comments of his Senate colleague and fellow conservative fire-breather, Bob Rucho.

When asked about the Senate’s consistent refusal to budge on its plan to pay for teacher raises by firing thousands of teacher assistants (a plan that even Senate President Pro Tem Phil Berger hinted might finally be on the way out) Rucho was his usual  aggressive self. As Morrill and Bonner reported: Read More