NC Budget and Tax Center

2015 Fiscal Year State Budget, NC Budget and Tax Center, Raising the Bar 2015

Raising the Bar in North CarolinaThis post was written by Michael C. Behrent, associate professor of history, Appalachian State University and is part of the Raise the Bar series featuring expert views on the North Carolina budget debate.

Is our state government doing all that it can to offer North Carolinians the affordable, high quality education they need to secure twenty-first century jobs? Based on data in a recent report from the Center on Budget and Policy Priorities, the answer is clearly “no.”

Affordable public education in North Carolina is a right. Our state constitution states that the legislature must ensure that “the benefits of The University of North Carolina and other public institutions of higher education, as far as practicable, be extended to the people of the State free of expense.” Yet today, free public education is little more than a distant memory. To make matters worse, our citizens find themselves in a college crunch: they are being asked to pay more and more for public universities that are providing less and less.

According to the report, since 2008, tuition at North Carolina’s public universities has grown by 35.8% (or $1,759). The main reason? The 2008 recession, which cut the flow of tax dollars into state coffers at the very moment when many people were choosing college over a grim job market. As state funds dried up, most public universities turned to tuition hikes as an easy fix.

Yet the recession doesn’t bear all the blame: many state legislatures, including North Carolina’s, took advantage of the budget crisis to push questionable ideological agendas. Specifically, they rejected a balanced approach that would combine spending cuts with tax increases, preferring to slash budgets. Universities thus had little choice but to ask students to pay the balance. Read More

2015 Fiscal Year State Budget, NC Budget and Tax Center

As an exercise in reflecting the state’s priorities, the House budget falls short. North Carolinians know that ensuring our children’s education is of the highest quality, that our communities can thrive and that our public services—from courts to transportation to environmental inspections—are effective and efficient means committing to fund those things together.

The House budget, like the Governor’s budget before it, assumes that the state can’t afford to invest. But our current availability is limited by policymakers’ own tax choices that reduce resources that support the foundations of an economy that will work for everyone. Policymakers already allowed a second round of tax cuts for profitable corporations and wealthy taxpayers go into effect in January and will cut taxes again for profitable corporations because revenue collections exceeded expectations and met the trigger for further tax cuts. Because the trigger threshold was set arbitrarily low, however, meeting the trigger does not reflect the realities of needs in our communities.

This choice—to hold back the state from reinvesting by prioritizing tax cuts over building a stronger economy—means that there is a lot missing from the House budget. In light of the historic decline in revenues resulting from the recession and its aftermath, policymakers have effectively curbed the state’s ability to reinvest due to tax cuts. The result is missing investments that can mean the difference for children, families, businesses and communities in doing well in our state and the missed opportunity to grow our economy stronger and more competitive.

Here are five missing investments that the Budget & Tax Center has identified: Read More

NC Budget and Tax Center

Another round of tax cuts for corporations, extended tax breaks for selected industries, and considerable fee hikes for families and businesses are included in the tax and budget package that the House leadership unveiled yesterday afternoon. Because tax changes affect the level of state resources that are available for investment, lawmakers must decide on its tax priorities ahead of approving their budget bill for the upcoming 2015-17 biennium. The House Finance committee tweaked the tax changes last night and now the budget bill is moving through the committee process with the expectation of a final vote on the House floor by Friday.

How the state raises the money that supports public schools, health care, courts and other core supports to the economy and communities should get just as much scrutiny as the spending side of the budget debate—but this is rarely the case. Examining how lawmakers pay for the budget is important in light of the 2013 tax plan that continues to drain resources, which otherwise could have been used to build opportunity and replace the worst cuts enacted since the economic downturn.

The House leadership pays for its FY2016 budget proposal in the following way: Read More

NC Budget and Tax Center

The House budget continues to ask less from the state’s wealthiest taxpayers and profitable corporations and more from everyday North Carolinians while underinvesting in the foundations of a strong economy.

By failing to pause the corporate income tax cuts and also prioritizing further tax breaks to big business, policymakers are missing the opportunity to build opportunity and ensure that where you are born does not determine your ability to do well as an adult. Investments in early childhood, education, job training, health care, and public safety ensure that North Carolina’s communities thrive.

While the House budget reflects some of these investments, there are many others—school nurses, affordable housing, professional development for teachers, community economic development—that don’t receive the funding needed to truly make an impact on people’s lives.

NC Budget and Tax Center

This piece was originally featured on Women AdvaNCe’s blog and is cross-posted here.

Working Tar Heel moms are never off the clock. From laboring at the workplace all day to tucking kids in at night, we put in a lot more than a full day’s work. Much of the work is tireless, thankless, and unpaid. But for the paid work, every dollar moms work for is hard earned. These are some of the many reasons why we celebrated moms this week.

Flowers and breakfast were great, but this Mother’s Day we needed to keep our sights on what’s happening in Washington, D.C. Congress can help 750,000 moms right here in North Carolina by making permanent improvements to tax credits that put money back into the pockets of moms who’ve earned it. Without action from Congress, these credits expire at the end of 2017.

The state’s economy is experiencing a boom in low-wage work—a trend that is falling disproportionately hard on women. For more than 21 million working moms across the country, including 763,000 in North Carolina, the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) are important tools that help them make ends meet in today’s economy. By offsetting income and sales taxes, these credits boost income, support work, and reduce poverty—especially among children.

Allowing moms to keep more of what they earn also helps keep poverty in check. Read More