The 2013 tax plan continues to rear its ugly head. The final budget deal released late last night is yet another reminder that the state cannot afford cost of the tax plan that primarily benefits the wealthy and profitable corporations. If the state could afford those deep revenue cuts, budget writers would not be relying on more federal dollars and lottery revenues to make their budget balanced nor including another round of harmful budget cuts and policy changes to early childhood education, public schools, higher education, and social programs. But, those are the conditions North Carolinians will be facing over the next year as we enter year six of the official economic recovery.
While the budget delivered on its promise to provide an average 7 percent teacher pay raise, that boost in much-needed pay came at the expense of dollars needed to pay for other state priorities—even within the public education budget for programs that serve at-risk students, for example. And unfortunately, it’s just a snapshot of what we should expect to see in future years. Meanwhile, other states are moving full steam ahead and replacing the most damaging cuts made during the aftermath of the recession.
The cost of North Carolina’s personal income tax cuts will be much higher than previously expected, at least $200 million more each year. Read More