2017 Fiscal Year State Budget, NC Budget and Tax Center

Initial review of Governor’s higher ed budgets that fail to ensure affordable higher education

Here are key highlights from Gov. McCrory’s proposed higher education budgets.

Community College System

Consists of 58 community colleges across the state serving all of North Carolina’s 100 counties.

The community college budget follows a larger trend of failing to boost public investment in the state’s education pipeline, with the exception of some additional funding for one-time bonuses, equipment upgrades, and a locally-driven initiative to promote post-secondary success. After years of steady increases in tuition, the proposed budget does not reverse this trend, failing to make post-secondary training and education at community colleges more affordable.

  • Funding provided for discretionary one-time bonuses, maximum $3,000, to selected state employees at NC community colleges ($29.4 million).
  • Savings recognized due to decline in enrollment ($26.2 million).
  • Funding provided for locally-determined support services to help ensure students earn a credential or degree ($16.6 million).
  • One-time funding provided to upgrade and maintain instructional equipment at NC community colleges ($7.5 million).

UNC System

Consists of 16 four-year public universities across the state serving more than 220,000 students, as well as the NC School of Science and Mathematics. Read more

2017 Fiscal Year State Budget, NC Budget and Tax Center

Initial review of Governor McCrory’s modest budget for Natural and Economic Resources

Governor McCrory’s proposed budget for Natural and Economic Resources (NER) devotes additional funds for some critical needs. If the legislature acts on his recommendations, it would mean more support for apprenticeship programs, main street revitalization in rural North Carolina, removing underground gas storage tanks, and handful of other laudable goals.

That said, Governor McCrory’s budget is trapped into modest aspirations. Having gone along with several rounds of expensive tax cuts, and being preoccupied this year with increasing teacher pay, there’s not much left over for anything else. Some good ideas are included in the Governor’s NER budget, but it isn’t a visionary plan for North Carolina’s economic, cultural, and natural future.

Selected line items from Governor McCrory’s proposed NER are listed below:

Read more

2017 Fiscal Year State Budget, NC Budget and Tax Center

Initial review of Governor’s K-12 education budget: Falls short of ensuring public schools have adequate resources

Gov. McCrory’s proposed revised budget for K-12 education for the upcoming fiscal year maintains the status quo for public investments in public schools. Under the Governor’s budget, state funding per student remains well below pre-recession spending when adjusted for inflation and schools will continue to be hurting for resources.*

Teacher pay is just one thing on a long list that needs to be addressed so that public schools are able to deliver a top-notch education to all students. And while additional funding for pay increases for educators is much welcomed, this increase is largely delivered as one-time bonuses. As the only major component of the Governor’s education budget that is possible under the tax-cut constrained reality, it leaves far more needed to ensure every child’s access to a quality education.

Consequently, the Governor’s proposed budget once again challenges schools to do more with fewer resources and support despite heightened expectations regarding student achievement.

Here are key items in the K-12 education budget. Read more

2017 Fiscal Year State Budget, NC Budget and Tax Center

Follow the money: The Governor’s budget keeps phased-in income tax cuts on the books, proposes no further rate changes, and leaves nearly $5 million on the table

Today, Governor Pat McCrory unveiled a budget proposal for the 2017 fiscal year that provides modest funding increases to support early learning, education, mental health, and inconsistent pay bumps for teachers and state employees. His $22.3 billion budget proposal represents a 2.8 percent—or $600 million—increase over the current 2016 fiscal year budget.

The Governor’s budget proposal, in large part, is one that stays the course. That’s because his ability to replace the worst cuts from the economic downturn and address pressing needs is severely constrained by the recent tax cuts that he signed into law. His proposal allows these tax cuts—which primarily benefit profitable corporations and the wealthy—to continue to phase in as scheduled. All told, recent tax cuts are expected to cost more than $2 billion annually once all tax cuts go into effect.

That price tag is coming at the expense of providing pay raises and cost of living adjustments for all workers as well as strengthening education, public health and safety, and the other building blocks of a strong economy. His proposed modest levels of reinvestment are a small fraction of what is needed to realize his own stated principles of preparing for future growth and helping those who are struggling in today’s economy, as noted in the NC Budget & Tax Center’s public statement.

In fact, his budget would keep state support for services below pre-recession levels, when adjusted for inflation. That would be fine if public needs had shrunk. But they have grown. Read more

2017 Fiscal Year State Budget, NC Budget and Tax Center

Delivering efficient, effective, equitable public services

The operations of government and the targeted deployment of public services for public goals is the purpose of the General Government budget area.

In year’s past, the General Government area of the budget has supported important investments in affordable housing development and the supports to managing efficient and effective core functions of government.

Here are a few of the key items to highlight in the General Government budget:

• Creates a statewide network that develops and leverages existing NC entrepreneurial management talent and recruits investors, entrepreneurs and managers to NC ($2.5 million).

• Translates University research and development for commercialization through non-profits or housing entities ($2.5 million).
• Provides funding to conduct a School Facility Needs Assessment for low-wealth counties (despite an existing assessment indicating that $8 billion is needed for school construction). In 2013, lawmakers eliminated a dedicated school construction fund via the corporate income tax revenue in order to pay down the cost of the income tax rate cuts ($1 million).

• Funds to support access to permanent, community-based integrated housing for individuals with disabilities, directly supporting Olmstead Settlement ($5.5 million). Provides no additional funding for the Housing Trust Fund or the Workforce Housing Fund, despite pressing needs.

• Provides additional funding for the Human Relations Commission, which lawmakers placed on a continuation review last year ($788,076).

• Expands elections outreach to help ensure fair elections (but leaves in place recent election law changes such as Voter ID) and implements a new campaign e-filing process (more than $900,000).