ICYMI, the editorial page of the Greensboro News & Record pulled no punches this weekend in an editorial excoriating state senators for their last minute proposal to hamstring local governments when it comes to use of the sales tax for public services and structures at the local level. Here’s an excerpt from “Oddest idea yet”:

Republican state senators canceled a floor vote on a confusing sales-tax bill Thursday until they could get their stories straight. Which means it might not return.

Of all the heavy-handed directives the legislature has pushed down on local governments in the past couple of years — airport and water system takeovers, de-annexations, local redistrictings, elimination of privilege licenses — this one might be the most illogical.

The measure, which originated in the Senate Finance Committee without notice Wednesday, was presented as a means of giving counties additional tax flexibility. With voters’ approval, they could add to the local sales tax, designating revenue to schools or transportation projects.

But the strings attached tied everything in knots.

The legislation put restrictions on how new revenue could be spent — for education or for transportation, but not for both. It put a cap on the local sales-tax rate. And, perhaps most baffling, it required that if a county raised the sales-tax rate, it would have to raise it all the way to the cap….

The half-baked sales-tax bill, which also includes unrelated provisions boosting economic development efforts, was yanked from the calendar before the Senate adjourned for the weekend. Senators will return to Raleigh Monday, but the wacky sales-tax proposals ought to vanish as quickly as they appeared.

For more information on the proposal in question, click here for succinct summary.

NC Budget and Tax Center

Local communities across North Carolina are already feeling the impact of recent tax policies and budget decisions made by state policymakers. A recent news article quotes a Pitt County commissioner lamenting disapproval with the state pushing off on local governments what they should be funding. Indeed, the tax plan passed last year results in self-imposed budget challenges today that will continue for years ahead, resulting in continued state funding cuts to core public investments that serve as the foundation of economic prosperity.

We at the Budget & Tax Center have traditionally talked about the net revenue loss under the tax plan, but that masks something important that happened when policymakers overhauled the tax code. The tax plan passed last year shifts responsibility for funding core public investments to local governments, in part, by recapturing some of the shared revenue from state sources that went to local governments to meet their obligations.

One example of this shift was the decision to repeal and eliminate the allocation of a portion of corporate income tax revenue dedicated to the School Capital Building Fund (SCB Fund), created in the late 1980s to assist local governments in meeting their public school building capital and technology equipment needs. Prior to the tax change, a portion of revenue generated from the state corporate income tax went to the SCB Fund. That practice ends under the tax plan. Over the next five years, this tax change takes away $382 million from local governments who used the revenue to improve education facilities in their communities. Read More


Blatantly contradicting past passionate positions is nothing new for the current conservative leadership of the General Assembly. Whether it’s the abandonment of their once deep concern for transparency in budgeting or their amnesia when it comes to political gerrymandering,  the folks running the show on Jones Street today can do a “180” on a supposedly principled position faster than you can say “Mr. Pope is on line one.”

This week’s classic case in point is the issue of “local control” and the once deep concern that conservatives supposedly had for assuring that as much power as possible be vested in the governmental bodies that were “closest to the people.” As it turns out, this formerly fervent belief was really more like a rough guideline — especially when it comes to the matter of local governments imposing the business taxes that they see fit.

Today, editorials in both the Wilmington Star-News and Fayetteville Observer rightfully take the General Assembly to task for their recent action in advancing a bill that would cap local privilege license fees on all businesses at $100.

Here’s the Observer: Read More


Road crewsThere was a great cartoon in the New Yorker magazine a couple of years back in which a man whose house is on fire stands next to it with a bucket in his hand, waving away arriving firefighters and saying “No thanks–I’m a libertarian.” As North Carolina endures another major winter storm today and tomorrow, it’ll be interesting to see how many conservative, anti-government Tea Partiers have such a thing to say about the public services and structures that will save lives, bind our society together and expedite recovery.

The guess here is the number will be very small. When it comes to natural disasters, even the far right seems to forget its hate of government and all things public — if only temporarily. For some reason, all of the “government = slavery” talk and rants about monstrous commie plots seems to go by the wayside when roads need to be plowed and basic safety and utilities need to be delivered or made possible. Who wants to listen to Limbaugh when there’s a big snowstorm blowing?

While it would be tempting, however, to attack and deride anti-government folks for their hypocrisy at such a moment, we would all do better over the coming days to simply welcome them back into the communal fold. So hang in there, stay warm and keep an eye on your neighbors — whatever their political beliefs. Maybe just maybe, the experience of coming together during a crisis will even remind a few  of our conservative fellow citizens that society fares much better when it hangs together on warm and sunny days too.


This was released today…

An open letter to Governor McCrory from local elected officials opposed to sweeping restrictions on women’s health

July 25, 2013 

The Honorable Pat McCrory
Office of the Governor
State of North Carolina 

Dear Governor McCrory,

As municipal and county elected officials, we write to oppose SB353, the omnibus abortion bill titled Health and Safety Law Changes.

SB 353 is not only an intrusion into the deeply personal and private health care decisions North Carolina women and their families face, but also an intrusion into the affairs of local governments who want to ensure that health plans offered to their employees, to the extent possible, cover their health care needs. Read More