Falling Behind in NC

Falling Behind in NC, Uncategorized

North Carolina has dropped one place since last year to rank 35th in the nation according to an annual KIDS COUNT data report about the overall well-being of children in the United States. This data report determines and ranks states on the basis of performance in sixteen level indicators across four domains; economic well-being, family and community, health, and education.

North Carolina’s drop to the 35th spot largely results from the state’s lackluster performance in improving its economic well-being. Currently, North Carolina is ranked 38th in the nation for economic well-being, three spots below last year’s ranking. This data report breaks down economic well-being into four categories, each of which North Carolina failed to show any progress. The KIDS COUNT State Profile for North Carolina reports that twenty-six percent of children are impoverished and thirty-four percent of parents lack secure employment in this state alone. Accordingly, in North Carolina, the amount of children living in households with high housing burden costs has seen a four percent increase since 2005, and ten percent of teens are currently not working or in school.

In comparison to last year’s report, Read More

Falling Behind in NC, NC Budget and Tax Center

This is the fourth post of a week-long blog series that seeks to uncover just how far behind North Carolina’s current services levels are compared to pre-recession levels as well as how far behind the state would fall if the House and Senate tax plans were implemented. Previous posts are available here, here, and here.

North Carolina’s revenues are slowly recovering but still deeply damaged by the recession. Regaining the ground that we have lost will be more difficult in the coming years because state lawmakers are pursing deep and lopsided tax cuts that will put at risk the critical public services that help build the engines of long-term economic growth.

There is much ground to be regained in North Carolina’s public education system, which prepares our children for the jobs of the future and participation in civic engagement.

North Carolina is investing less in public education than when the recession began. Total state funding declined by 10 percent since the 2008 fiscal year while enrollment increased by 2 percent—a modest but steady rate. This means that there are $883.1 million fewer dollars (adjusted for inflation) in state funds available today for education compared to 2008 despite having 31,000 more students to educate. Read More

Falling Behind in NC, NC Budget and Tax Center

North Carolina’s revenues are slowly recovering but still deeply damaged by the recession. Regaining the ground that we have lost will be more difficult in the coming years because state lawmakers are pursing deep and lopsided tax cuts that will put at risk the critical public services that help build the engines of long-term economic growth.

It is unquestionable that there is a lot of ground to be regained—especially when it comes to investing adequately in the health, safety, education, and economic security of families and children. The current state budget for health and human services (HHS) is proof. Read More

Falling Behind in NC, NC Budget and Tax Center

For more than a century, North Carolinians have pooled their resources to invest in great achievements, including a statewide K-12 system, the oldest public university system in the country, transportation infrastructure and a lot more. Taxes matter for the economy and society that we all enjoy so how the state government raises the billions of dollars that fuel the state budget is very important.

And, the ability of the state tax system to grow with the economy and keep up with the cost of public services and the changing needs of the population is critical. Yet, this continues to be a missing part of the debate over the impact of tax plans under consideration

Senate and House leadership say that their plans merely slow the rate of state spending to around 3 percent and 4.5 percent, respectively, compared to the long-run average of 4.8 percent. A 1.5 percentage point drop and a .3 percentage point drop in the revenue growth rate sound innocuous at first glance, but further analysis shows just how devastating this would be. Read More

Falling Behind in NC, NC Budget and Tax Center

Thanks in large part to the rebound in the personal income tax, North Carolina is finally experiencing a slight uptick in revenues as the tepid economy slowly improves. Yet, at the first sign of revenues recovering, state lawmakers are pursuing tax policies that will pull back investments prematurely. North Carolina is already in a hole, and the tax plans being debated would make it very difficult for the state to dig itself out, make progress on unmet needs, and move forward.

These tax plans cut taxes for the wealthy and profitable businesses at the expense of everyone else. Proponents claim that these deep and lopsided cuts will create jobs and benefit everyone, but research simply does not support this conclusion. Read More