News

The NC House gave unanimous approval Tuesday to legislation that would study the idea of fixed tuition in the University of North Carolina system. Under the bill proposed by Wilkes County Rep. Jeffrey Elmore, the UNC Board of Governors would study the idea of guaranteeing undergraduates a set price for four-years of their college education.

Elmore told his colleagues the idea is to help address the rising costs of higher education. He notes that over the past 30 years, tuition and fees have increased 225% at public four-year universities across the United States.

House Bill 657 would have the Board of Governors fully examine the idea and report back to the legislature in February. Currently more than 300 colleges and universities offer a fixed tuition program.

The bill now moves to the state Senate for consideration. To hear Rep. Elmore explain the bill in his own words, click below:

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Commentary, Justice Denied for McCollum and Brown
Henry McCollum listening to evidence of his innocence. Photo by Jenny Warburg / Courtesy of North Carolina Coalition for Alternatives to the Death Penalty.

Henry McCollum listening to evidence of his innocence. Photo by Jenny Warburg / Courtesy of North Carolina Coalition for Alternatives to the Death Penalty.

It has now been 222 days since  since Governor Pat McCrory received a formal request for a pardon from Henry McCollum and Leon Brown, two Robeson County men who both spent 31 years in prison for a rape and murder they did not commit.

Brown and McCollum, both struggling to make ends meet, need the pardon so they can receive the financial compensation from the state for their wrongful incarceration for more than three decades.

McCrory applauded the exoneration of the two men last September and said he was ready to receive their application for a pardon. It was filed September 11th of last year, 222 days ago.

No word from McCrory about why he continues to deny the two men the justice they deserve but he has been busy with things he apparently thinks are more important.

Today he attended the North Carolina Fit Family Press Conference.

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NC Budget and Tax Center

The March employment numbers out today show another month of positive, but relatively lackluster economic performance in North Carolina. The unemployment rate in North Carolina has now been essentially flat for the last five months and the number of unemployed North Carolinians has actually increased in the first three months of 2015.

According to analysis of the latest labor market data by the Budget & Tax Center, employment levels have edged up in the last year, but are still well below the pre-recession norm. In fact, a smaller share of North Carolinians have a job today than during the worst of the recession that followed the 9/11 attacks.

“The North Carolina economy has been idling along for several months and continues to be weaker than it was in 2007,” said Patrick McHugh of the North Carolina Budget and Tax Center. “The worry now is that we’ll see a new normal, with lower levels of employment and paychecks that don’t go as far.”

Other highlights of the March data include:

  • Unemployment rate not making gains: After falling dramatically from 2009 through the third quarter of 2014, the state and national unemployment rates have flattened out in recent months. Even while the state continues to add jobs, growth is not enough to push unemployment below the 5% threshold that most economists see as the top-end of a healthy labor market. Part of the flattening out may be attributable to people coming back into the labor force, which would be good news. However, it is still troubling to see the labor market falling well short of full employment.
  • Still more North Carolinians out of work than before the Great Recession: Even though the ranks of the unemployed have declined over the past year, there are still more than a quarter-million North Carolinians looking for work, approximately 10% more than at the end of 2007.
  • Percent of North Carolinians employed still near historic lows: March numbers showed 57.5% of North Carolinians were employed, which is up 1 percentage point from March 2014. However, this still leaves North Carolina well below the level of employment that was commonplace before the Great Recession. In the mid-2000’s, employment levels were generally between 62% and 63%. Moreover, the level of employment in North Carolina has fallen behind the national average, when the state was generally at or above the nation in the pre-recession period.

For more context on the current state of the North Carolina economy, check out a recent report that reviews the last seven years of economic data and the Budget & Tax Center’s weekly Prosperity Watch platform.

 

NC Budget and Tax Center

Members of the Kansas Center for Economic Growth are visiting North Carolina this week to share what has happened in Kansas following massive tax cuts signed into law by Governor Brownback back in 2012. Kansas has become a case study of the grave consequences resulting from a dogged pursuit of tax cuts as an economic growth strategy. The results are not that good.

In 2012, Kansas enacted tax cuts that were considered among the largest ever enacted by any state. Tax cut proponents in other states – including North Carolina state lawmakers – held Kansas up as a model to be replicated. Accordingly, North Carolina state lawmakers followed Kansas’ path and passed huge income tax cuts in 2013 that largely benefited the wealthy and profitable corporations and significantly reduced available revenue for public investments.

For Kansas, the reality in the wake of the costly tax cuts has been nothing to write home about. Here are some low-lights of Kansas’ experience, accordingly to the Center on Budget and Policy Priorities.

  • Deep income tax cuts caused large revenue losses. Kansas’ tax cuts last year cost the state more than 10 percent of the revenue it uses to fund schools, health care, and other public services, a hit comparable to a mid-sized recession. The revenue loss is expected to rise to 16 percent in five years if the tax cuts are not reversed.
  • The tax cuts delivered lopsided benefits to the wealthy. Kansas’ tax cuts didn’t benefit everyone. Most of the benefits went to high-income households and taxes were even raised for low-income families to offset a portion of the revenue loss.
  • Kansas’ tax cuts haven’t boosted its economy. Since the tax cuts took effect at the beginning of 2013, Kansas has added jobs at a pace modestly slower than the country as a whole. Furthermore, the earnings and incomes of Kansans have performed slightly worse than the U.S. as a whole as well while the number of registered business grew more slowly in 2013 than in 2012.

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Commentary

Editorial pages and good government advocates are weighing in this morning in praise of the U.S. Supreme Court’s decision to send North Carolina’s gerrymandered legislative maps back to the state Supreme Court for further review. This morning’s Fayetteville Observer calls the decision a “setback” for gerrymandering and concludes this way:

“We don’t know how this will be settled, but it reminds us that the creation of a nonpartisan redistricting commission is the real solution that we need.”

Meanwhile, Raleigh’s News & Observer terms the ruling a “voter victory.” It also notes that:

“Redrawing legislative and congressional districts is a task that ruling parties take on after a census. It’s true, as Republicans have claimed, that Democrats drew districts to their advantage when they were in power, but they did not go to the extremes the GOP did.

Think of how much time and trouble and money the state could save if it established a bipartisan commission to draw districts every 10 years. But don’t expect that to happen while Republicans continue to enjoy being in power after 100 years out of it.”

And for more details on how a nonpartisan solution is within easy reach of the General Assembly, turn over to the right side of the N&O editorial section and read this op-ed by Common Cause board member and retired N.C. State professor Larry King in which he explains how GOP lawmakers like Representatives David Lewis and Bert Jones have done one of the all-time flip flops on the issue. As King explains:

“Republican Party leaders need to let the democratic process play out. This is legislation they have long championed. North Carolina Republicans remember all too well how frustrating it was when their voices weren’t heard because of gerrymandered districts. Redistricting reform ensures this never happens again. It’s time to end gerrymandering once and for all in North Carolina, and it starts with letting H92 be heard in committee.

The residents of North Carolina deserve no less.”