Archives

2015 Fiscal Year State Budget, NC Budget and Tax Center

The 2015 state budget for creating jobs and growing the economy doubles down on the wrong turn taken by the legislature on economic issues over the last year. First it was the decision to continue to last year’s ill-advised tax cuts for the wealthy instead of investing in job training and education—the real building blocks of sustainable economic growth. Then it was the decision to privatize the business recruiting activities of the Department of Commerce—despite evidence from other states these initiatives produce more scandals than jobs—and eliminate regional planning initiatives that helped small communities coordinate their economic development efforts.

And now the state budget completes this trifecta of poor choices for economic development by spending more of our state’s limited resources on programs that are both ineffective at creating jobs and are overwhelmingly targeted to the wealthiest urban areas of the state instead of the more distressed areas in rural North Carolina.

Read More

Falling Behind in NC, NC Budget and Tax Center, Poverty and Income Data 2013, Poverty and Policy Matters

New data released by the US Census highlight the pervasiveness of poverty nationally and in North Carolina. In 2013, one in six North Carolinians lived below the federal poverty rate – less than $24,000 a year for a family of four and  $12,000 a year for an individual. For communities of color, the poverty rate is far worse: 32.5 percent for Latinos, 28.9 percent for American Indians, and 28 percent for African Americans.

These daunting poverty rates highlight that far too many individuals and families across the state face economic hardship. The persistence of poverty has been accompanied by a rise in income inequality, which poses consequential implications for the overall economy and North Carolina’s state economy. The bulk of economic gains from the ongoing economic recovery have flowed to a small group of high-income earners. In the first three years of the economic recovery, the top 1 percent of income earners captured 95 percent of the income gains nationally. Here in North Carolina, income for the top 1 percent of income earners in the state grew by 6.2 percent from 2009 to 2011 while the bottom 99 percent saw their income decline by 2.9 percent. The latest US Census data show that this early post recovery trend is likely to hold. By 2013, the top 20 percent of households in North Carolina captured more than half of all income earned by all households in the state (see graphic below). Read More

NC Budget and Tax Center, Poverty and Income Data 2013

Poverty remained high in North Carolina last year, according to new Census Bureau data released today. The new data highlights that many people have not benefitted from the state’s weak economic recovery and that North Carolina must do more to help struggling people afford basics like decent housing, nutritious food, and reliable child care, and transportation.

One in five North Carolinians lived in poverty in 2013, equating less than $24,000 a year for a family of four. The median annual income in North Carolina adjusted for inflation did not rise between 2012 and 2013 and is lower now compared to 2009 when the official economic recovery began. Yet other sources show that incomes at the top have grown and the gaps between the top and bottom and top and middle have widened.

North Carolina lawmakers have yet to rebuild what was lost during the recession. Throughout the economic recovery, they have either made deep cuts to or provided inadequate investments for early childhood development, public schools, the UNC System, and nonprofits promoting job and business development in the state’s economically distressed areas. These are key services that invest in people’s future and build a strong economy that offers all families the opportunity to thrive. Lawmakers have also dismantled services that help people get back on their feet when they are struggling, including unemployment benefits, job training programs, and the Earned Income Tax Credit that makes work pay and helps parents avoid raising their children in poverty.

The new Census data shows that progress towards eliminating poverty in the state is stuck: Read More

Tracking the Cuts: The Dismantling of Our Public Schools

trackingCuts-web-600Members of the Chapel Hill-Carrboro Board of Education approved a budget last week that eliminates 22 teacher assistant positions, thanks to a $911,000 budget shortfall handed down by state lawmakers.

According to chapelboro.com:

Assistant Superintendent for Support Services Todd LoFrese said that while the state budget would allow Chapel Hill-Carrboro Schools to shift some money back into hiring TAs if so desired, the legislature slipped in some additional rules that would have resulted in eight more teacher losses than the school system could handle.

Chapel Hill-Carrboro also had to cut 4.5 gifted specialist positions and eliminate some custodial positions.

According to the Raleigh News & Observer, the city’s school system was able to move those TAs into other vacant positions, but classrooms in grades 4 and 5 will have to cope with less instructional support.

State budget cuts also forced Randolph County Schools to make reductions in force: that district cut 30 media assistant positions for the upcoming year.

RCS’ Public Information Officer Tim Moody said the district does have other vacancies available and it’s possible some of those media assistants were able to step into those jobs, but he wasn’t sure how many.

Each school in the district lost a media assistant position.

Gov. McCrory signed a 260-page budget bill earlier this month that spends $105 million less than what was previously budgeted for teacher assistants, even though he has repeatedly said he would only sign a budget that preserves all TA positions. 

School districts around the state are reporting that they have been forced to eliminate teacher assistants’ jobs and other positions thanks to budget shortfalls passed down to them by state lawmakers.

Do you know of budget cuts school districts are coping with as they begin the academic year? Send me an email at lindsay@ncpolicywatch.com 

Uncategorized

Following a presentation today to educators and advocates at an NC Chamber of Commerce event, Gov. Pat McCrory told reporters that if local school districts do not hire people to fill vacant teacher assistant positions, then that action can’t be characterized as a result of a budget cut to TAs handed down by state lawmakers.

“If at the end of this legislative session, if they [LEAs] had teacher assistants in place—in positions—they should all be rehired, based upon the budget,” said McCrory. “If they were vacant or they were using that money for other reasons, you cannot then call that a cut, because they weren’t using the money for teacher assistants.”

Prior to signing the appropriations bill last week, Gov. Pat McCrory said that the fact that this budget preserves all teacher assistants jobs contributed to his decision to sign off on it.  

But according to the CFO of the N.C. Department of Public Instruction, Philip Price, the 2014 budget that the Governor signed actually spends $105 million less on TAs than what was planned for the upcoming year, which means local school districts will take a 22 percent hit to their teacher assistants – on top of huge cuts to TAs over the past several years. 

Lawmakers have said that this budget simply a reshuffles money that school districts were already spending on other things, like teachers, and that districts could choose to shuffle the money back to TAs if they want.

But years of under funding teacher assistants and public education as a whole has left school districts with little choice but to slash TA positions or leave them unfilled. Some districts have been forced to make the difficult decision of using teacher assistant money for badly needed teacher positions, thanks to state disinvestment. 

McCrory said folks should take a closer look at the language in the budget, which he says should allow local school districts to preserve teacher assistant jobs.

“If you were a teacher assistant last year, you should be rehired this year,” said McCrory.