NC Budget and Tax Center

We keep hearing that North Carolina’s economy is turning around. But while it’s true that we’re slowly making progress in replacing the jobs lost during the Great Recession, the bad news is that the overwhelming majority of these new jobs just don’t pay enough to make ends meet. In fact, many don’t pay enough to keep workers out of poverty, despite working full time. Check out the latest Prosperity Watch for details.

In a bizarre turn of events, the House Committee on Appropriations met today to review and vote on a new spending plan for the upcoming fiscal year. The bill passed in what appears to be along partisan lines, and it heads to the House floor tomorrow. For the most part, the new spending plan leaves in place the second year (FY2015) of the two-year budget that lawmakers already approved last year. The changes are mainly geared toward moving lottery dollars into the General Fund, boosting pay for teachers and state employees, and adjusting the education budget.

See the NC Budget and Tax Center’s statement on the budget here.

The day started with Governor McCrory and Speaker Tillis holding a joint press conference at 1pm to make an education announcement. It was revealed that House leadership planned to unveil a new spending plan that doesn’t rely on raising additional lottery dollars generated from increased advertising.  What wasn’t mentioned at the press conference is that the new plan relies on more lottery dollars to finance pay raises, those dollars just aren’t generated from relaxing the advertising rules. Those dollars just happen to be the result of revised lottery projections under current rules. In other words, the budget is still relying on a source of funding that is unstable and regressive. Read More

The new House budget is a shell game not a financial plan.

It moves money around without addressing North Carolina’s growing needs and promoting broad prosperity.

It shows once again that the tax plan adopted last year lowers our state’s horizons, making it impossible to meet priorities of all North Carolinians like quality education, healthy communities and a growing economy.

The proposal continues to rely on lottery dollars – putting too big a burden on those least able to afford it, and betting on what has proven to be an unreliable source of money over time.

It is essential that state lawmakers pass a budget that both meets our state’s growing needs today and lays a financial foundation to do so tomorrow.

To catch up — and keep up — with the needs of families, halting the income tax cuts scheduled for January 2015 would be a great start.

In an unexpected move on Monday, Governor McCrory directed state agencies to prepare for budget cuts in case lawmakers fail to iron out a budget deal before the fiscal year ends in six days. Art Pope, the Budget Director at the Office of State Budget and Management, laid out the budget guidelines in a two-page memo that orders agencies to plan for the worst-case- scenario between the Senate and House budgets. Here is a summary of the directive:

  • Agencies must take the highest cut (for the entire agency rather than on a line-item basis) that is presented in either the Senate or House budget.
  • The rule above doesn’t apply to spending associated with Teacher Assistants (TAs), which is cut in half under the Senate budget. This would mean that spending for TAs would remain at the levels in the FY2015 budget that is already on the books (see note below on the biennial budget process). This is in contrast to the Governor’s own budget, which cuts funding for TAs by nearly $20 million.
  • Filled positions that are eliminated in either the Senate or House budgets should be treated as such. Similarly, vacant positions that are eliminated in either of the proposals shall not be filled.
  • No pay raises are authorized. Nor are any expansion items in either of the proposals.

The Governor, Senate, and House already put forward their respective budgets. Now, those differences are being ironed out in what’s known as the conference process where the Senate and House leadership come together to strike a final budget deal. Because the conference process is dominated by legislators, the Governor is more or less shut out of the process—especially now because of the veto-proof majorities in both chambers. The budget memo represents a way for the Governor to pressure the legislative leadership to iron out their differences in a timely fashion. It also serves to demonstrate the worst-case scenario’s deleterious impact on the average North Carolinian.

Even if lawmakers throw their hands up in the air and leave Jones Street without striking a final budget deal Read More

Today, in Washington DC, hundreds of business leaders, workers, moms and advocates from around the country will be discussing what needs to change to make work something that works for our 21st century families at the White House Summit on Working Families (you can live-stream it from the link.)

It’s the first time a conversation like this has happened at such a high level. And thanks in large part to Women AdvaNCe, North Carolina will have a strong, loud voice at the meeting.

We’re expecting the Tar Heel delegation to be 28 strong. Women AdvaNCe has been working in targeted counties to bring the conversations about pay equity, paid earned sick leave and the need for stronger family support and worker protections. Now they are going to tell Washington what they think.  Twenty-three women from six different counties—from Alamance, Durham, Guilford, Orange, Wake, and Robeson counties—will be providing feedback on these issues and more in Washington. Another five of us will be attending through MomsRising, the North Carolina Families Care coalition and the NC Justice Center.

“The number of women in today’s U.S. workforce has grown to 47%, and many women serve as both their family’s breadwinner and primary caregiver,” said Mary Swann Parry, Director of Advocacy at Women AdvaNCe.  “Today’s families need workplace flexibility with supports like paid sick and family leave, so that parents don’t have to choose between staying home with a sick child or going to work so that they can afford to buy groceries. It’s about economic stability.”

Lack of paid sick and family leave also hurts business, according to Durham’s Laura Helms Reece, CEO at Rho, Inc. “It is not financially smart to lose people to bad policies,” she said. “It is more expensive to hire someone else than to offer current employees those sick days.”

Reece participated in a recent round table discussion led by Women AdvaNCe in preparation of the D.C. Summit, where working women and business leaders gathered to discuss how NC businesses and policymakers can help close the leadership gap for women in North Carolina.

Expect to hear a lot more about the need for workplace policies that make good business sense and that don’t force parents to choose between putting food on the table and letting a sick child recuperate at home with mom. Local laws are being passed around the country to provide this basic protection.

 

Not only is Women AdvaNCe planning a local summit on September 26 related to these issues of equity, but they and others like Working America and MomsRising are working in coalitions like NC Women Matter, NC Women United, and North Carolina Families Care to raise our voices so families aren’t forced into impossible choices.