Category: Falling Behind in NC

The untold story of Governor McCrory’s budget proposal

April 4, 2013 at 11:26 amCategory:Falling Behind in NC | NC Budget and Tax Center

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Governor McCrory’s budget proposal, while representing a small step toward overall reinvestment, fails to fully support crucial public investments and North Carolina’s most vulnerable residents, according to a new report from the Budget & Tax Center. The Center also released a companion factsheet that highlights the report’s analysis of five important issues that remain part of the untold story on the proposal. The five points are summarized below. Read More…

A quick note on the superior “compared-to-what” budget baseline

March 21, 2013 at 1:55 pmCategory:Falling Behind in NC | NC Budget and Tax Center

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It is true that the Governor’s budget proposal reinvests in some programs and services to achieve an overall increase in General Fund appropriations.  This reinvestment was made possible by improvements in the availability of revenue under current law, the reliance on tuition increases and fees, as well as reductions in other areas of the budget. However, state investments in most areas of the budget are failing to keep up —let alone make progress back to pre-recession levels of spending.

There are two primary vantage points for analyzing the Governor’s budget proposal and making comparisons over time.  One method is to measure his proposal against the current law budget, which reflects the actual dollars that were appropriated last year per the final FY2012-13 budget.  The other method measures his recommendations against the continuation—or base—budget, which reflects the dollars needed in the next year to maintain current service levels.  The latter comparison provides a better sense of what is necessary to maintain residents’ current experience of public service because it accounts for the changing costs required to deliver the same level of services approved by the previous General Assembly. The chart below contrasts the Governor’s budget proposal to each of these vantage points. Read More…

Budget Preview: North Carolina’s transportation budget faces long-term $60 billion shortfall

March 14, 2013 at 5:36 pmCategory:Falling Behind in NC | NC Budget and Tax Center

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North Carolina’s transportation system helps form vital social and economic structures by connecting people to services, jobs, and other opportunities across the state and beyond. Although North Carolina has been known as the Good Roads State, its transportation system is under considerable pressure due to aging infrastructure, increasing demand, and declining revenue sources that are failing to keep pace with rising costs to maintain and improve the system.

Just last August, the North Carolina Department of Transportation confirmed that there is a large and growing gap between transportation needs and funding. They released a report estimating that the state is facing a $60 billion shortfall for transportation improvements through 2040, and that the state needs to come up with $32 billion just to keep the status quo. Ultimately, legislators control the purse strings as well as revenue options so solving this budget shortfall is largely up to them. Read More…

Budget Preview: More demand for health and human services budget, fewer dollars

March 5, 2013 at 10:19 amCategory:Falling Behind in NC | NC Budget and Tax Center

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Since the Great Recession and well-into the economic recovery, the state’s commitment to the well-being and safety of North Carolinians has wavered. The current FY2012-13 state budget provides the proof because it falls far short of investing adequately in the health, safety, education, and economic security of families and their children in the state. The budget’s shortcomings in the health and human services (HHS) infrastructure affect North Carolinians at nearly every life stage and can literally impact their longevity and vitality.

HHS funding aims to ensure that the state’s future citizens thrive early, seniors have access to quality and affordable health care, people with disabilities have the supports they need to contribute to their communities, and that food consumed by diners is safe. The HHS budget totals nearly $4.7 billion, making up 23 percent of the total General Fund budget. And, funding for this section of the budget is down by 8.3 percent compared to pre-recession levels (FY2007-08). The figures below highlight the top 3 ways the HHS budget is falling behind anticipated demand for services. Read More…

Funding Cuts to Public Education Threaten State’s Leadership Position Among Southern States

February 27, 2013 at 3:25 pmCategory:Falling Behind in NC | NC Budget and Tax Center

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This week has been deemed Education Week by legislative leaders, who have invited superintendents, principals and teachers from across the state to Raleigh to discuss public education issues. As education leaders and teachers share their thoughts and concerns regarding public education, funding has been a key part of that conversation.

With consistent improvement in proficiency rates, National Assessment of Educational Progress (NAEP) scores, and graduation rates over the past 20 years, North Carolina has long been recognized for its commitment to public education – both K-12 education and higher education. However, significant cuts made to K-12 and higher education in recent years threaten to erode the leadership position the state has achieved among southern states. As lawmakers work to craft and approve a biennial budget for FY 2014-15, investment in public education will be a central part of the budget debate.

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