NC Budget and Tax Center

NC Budget and Tax Center

This week marks the 50th anniversary of the Immigration and Nationality Act, which helped to make the United States into a more diverse and economically vibrant country. At the same time however, there is a bill (HB 318) sitting on Governor McCrory’s desk that would make it harder for immigrants to integrate into local communities, make police work more difficult, and hurt North Carolina’s reputation on the global stage.

The Immigration and Nationality Act of 1965 is one of the most important pieces of legislation in our nation’s history. The Act put immigrants from all countries of origin on equal footing, ending a quota system that essentially ensured most new immigrants came from Europe. This shift in policy allowed immigrants from around the world to realize the dream of joining the American experiment, and helped to fuel the last fifty years of economic growth in our country.

Graphic for Post - Immigrant Entrepreneurs Countries of Origin

Examining immigrant business owners’ countries of birth illustrates how opening immigration up to non-European counties has strengthened our economy. As the chart shows, immigrant proprietors have come to North Carolina from all over the world.

The immigrant business community is not just broad, it is deep as well. In North Carolina, immigrants make up less than 8% of the population, but own more than 20% of the main street businesses. In many communities, both rural and urban, immigrant entrepreneurs have helped to revitalize crumbling downtowns and neighborhoods. Read More

NC Budget and Tax Center

The General Assembly used a few of the last hours of the 2015 session to cut back how long unemployed North Carolinians in economically distressed counties can receive food assistance. Even though this weeks’ labor market data show that 9 out of 10 counties have more out of work people than job openings, the new rule would cut unemployed people off regardless of how hard it is to find work. The change could take food off more than 100,000 tables across North Carolina, and will pull money out of already struggling local economies, a doubly bad deal.

The one-sentence provision in the ratified bill (see section 16.a) permanently prevents the state from seeking to extend food assistance for people who can’t find work in their local economies, except in times of emergency. The federal Supplemental Nutrition Assistance Program (SNAP) allows states to temporarily waive a three-month time limit for unemployed childless adults who live in areas where few jobs are available.77 waiver counties - Updated for Blog Post

Recognizing that cutting off food aid to areas where there aren’t enough jobs hurts entire local economies, North Carolina sought this waiver for 77 of our 100 counties earlier this year. If the Governor signs this measure and SB119 into law, the ban on the waiver would go into effect in July 2016. Without the modest support of SNAP (formerly known as food stamps), between 85,000 and 105,000 North Carolinians would be subject to the three month-time limit and potentially will not be able to purchase food at their local grocery stores, depressing consumer demand further and driving use of food banks already stretched to capacity. Read More

NC Budget and Tax Center

Amidst a flurry of legislation during this session’s waning hours, one provision added to HB 318 last week that would restrict how local communities deal with immigration will be heard in the House. As is so often the case with last minute bills, the real costs of this measure are not well understood, and they could be major.

The provision in question (on pages 5 and 6 of the bill) would invalidate local identification or policies that support local law enforcement efforts to achieve their goals for public safety and community building. This provision seems designed only to prevent local communities from implementing common-sense measures that protect public safety, and it could have negative consequences for local economies and local budgets.

Local public safety officials in Greensboro joined community leaders yesterday to caution state policymakers against moving ahead with this legislation.  They cited in particular the challenges it will have in helping immigrants report crimes and the likelihood that it will increase arrests as police will be unable to identify community members. A Burlington police officer shared: “If they limit the type of ID that we can accept, you’re gonna have a whole lot more people that are arrested and booked into jails tying up valuable law enforcement resources.” Read More

NC Budget and Tax Center

North Carolina is the fifth hungriest state in the nation. Yet, the state Senate gave tentative approval to a bill that unnecessarily restricts food aid for childless adults who are very poor and live in areas where jobs are scarce—regardless of how hard they are looking for work.

States can temporarily suspend work-related time-limits on federal food aid for areas with sustained high levels of unemployment. North Carolina officials applied for a waiver in July for 77 of the state’s 100 counties due to a severe lack of jobs available that hampers North Carolinians’ ability to meet the work requirements (see map below). The Senate measure, however, would permanently ban the state from pursuing this option irrespective of how local economies are faring or whether employment and training opportunities actually exist.

Between 85,000 and 105,000 unemployed childless adults in North Carolina would lose food aid in 2016 because they can’t find a job if legislators prohibit the Governor’s administration from seeking a new waiver.*   Read More

NC Budget and Tax Center

The Connect NC Bond Act does not appear to be driven by a single coherent vision of how to use state investments to support economic growth. As can be seen below, the House and Senate versions put out over the last month have varied enormously over the total size of the bond and the type of projects to be funded. Concerns over cutting taxes while going farther into debt aside, the bond act shows that there is no single guiding star by which the legislature is sailing.

BOND PROPOSAL - pie charts2-LAND

To be fair, some of this is just the legislative process in action. When you’re making a multi-billion dollar sausage, there’s going to be lots of back and forth on the ingredients. Still, while the bond bill outlines how important investments are to our economic future, it reveals relatively little consensus on what those investments are or how to make them.

Here are a few of the major changes to the bill compared to what the House presented last month (For a complete breakdown of how the bond package has changed, see the document below): Read More