This blog post is the first post in our week-long 2016 Raise the Bar blog series that will recap the state of the North Carolina budget and make the case for reinvestment so that all North Carolinians have a fair shot to get ahead.
Next Tuesday, state lawmakers will return to Jones Street for the start of the Short Session. The primary focus of the session will be to make adjustments to the second year of the two-year budget that lawmakers approved last year. That means that lawmakers have an opportunity to strengthen economic security for all North Carolinians and help build a more robust economic recovery.
Seizing that opportunity, however, will require lawmakers to refocus on evidence-based fiscal policies that are smart, targeted, and equitable—rather than policies that lead them further down the tax-cut and tax-swap paths that they’ve pursued. As a reminder, state lawmakers once again chose last year to cut taxes that primarily benefit the wealthy and profitable corporations, while also expanding the sales tax to new services like maintenance, repair, and installation, effectively further shifting the tax load onto middle- and low-income taxpayers.
Those tax decisions are closing the doors of opportunity for some North Carolinians and won’t fix what is wrong with our state’s economy (like too few jobs and a boom in low-wage work). The tax plans since 2013 will reduce revenue by more than $2 billion annually when fully implemented, cutting off pathways to greater economic success like early childhood development, public schools, affordable health care, supports for older adults, and community economic development while also failing to boost the economy or create the jobs North Carolina needs.
Below are four key points about the current state budget that would be good for lawmakers to reflect upon as they head into the new budget season. Read more