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This is the 4th post of a Budget and Tax Center blog series on public services and programs that face cuts in the budget process or have been underfunded in past years. See the other posts here and here and here.

Chances are schools across North Carolina will continue to rely on outdated textbooks and limited resources for classroom supplies for the upcoming school year. The Senate budget approved last week fails to provide additional funding for these two classroom areas in the wake of dramatic state funding cuts to both textbooks and classroom instructional supplies in recent years.

Since the 2009-10 fiscal year, state funding for textbooks has been cut by 81 percent, down from $119 million when adjusted for inflation to around $23 million for the current school year. As for classroom materials and instructional supplies, state funding has been cut by nearly 47 percent since FY 2009-10, down from $90.7 million when adjusted for inflation to around $50 million for the current school year. Local schools systems have been challenged with replacing these state funding cuts with other funding sources or continuing the trend of doing more with fewer resources.

K-12 ed_Textbook & Classroom Supplies
Inadequate state funding for textbooks means the continued use of outdated textbooks, and in some cases schools have resorted to making photocopies from textbooks to ensure that students have learning materials. Diminished funding for classroom instructional materials has meant teachers having to reach into their pockets to buy supplies for classroom instruction.

The decision to not restore funding for textbooks and classroom material and supplies in the Senate budget comes on the heels of policymakers passing a tax plan last year that significantly reduces annual revenue for public investments now and in the years ahead. Policymakers now face huge revenue shortfalls for the current budget as well as for the upcoming 2014-15 fiscal year budget, which are driven by the tax plan passed last year. This foregone revenue could have help boost investments in our public schools.

As House budget writers work to put together their proposed budget, restoring funding for textbooks and classroom supplies would represent a positive step in promoting a quality education for all North Carolina students. Revenue options are available to responsibly demonstrate this commitment. Policymakers should stop the additional income tax cuts slated to go into effect January 2015. Doing so would allow for greater investments in the state’s future workforce, and in turn, the Tar Heel state as a whole.

ff3072013We’re just a couple of weeks into the 2014 session of the North Carolina General Assembly, but the annual legislative silly season has already commenced. Not familiar with silly season? That’s the time of year in which legislative leaders force their members to work all kinds of silly, late night hours in order to limit media coverage and handicap/wear down those who might want to criticize or contest their agenda (i.e. the minority party).

Usually, silly season doesn’t start until there have been several months (or, at least, several weeks) of actual, semi-normal  legislative process, but this year, in keeping with the current majority’s increasingly pathological aversion to sunlight and transparency, it’s starting just days after the session itself commenced. The Senate is kicking silly season off today with a wholly unnecessary Friday afternoon session, followed by an even more unnecessary post-midnight session early tomorrow morning, during which it will ram though its destructive 2015 budget proposal.

And lest you get the mistaken impression that lawmakers will actually be working longer hours during silly season, rest assured that this will almost certainly not be the case. Read More

Golf ball on teeState lawmakers are rushing through a bevy of important and destructive bills during the 2014 short session — often with remarkably little process or debate.  The Senate is even going so far as to take the most important bill of the session — the 274-page budget bill — from its moment of unveiling to final passage in just 48 hours. Meanwhile, House Speaker Thom Tillis threatened his chamber with a rare Friday session if they didn’t speed along a bill to legalize fracking.

Ah, but happily, the mad rush doesn’t apply to all matters. According to an announcement emailed out early this afternoon by the House Commerce and Jobs Development Committee, that august body will be devoting two full hours of precious short session time next Thursday to the subject of golf. This is from the announcement:

“NORTH CAROLINA HOUSE OF REPRESENTATIVES
JOINT COMMITTEE MEETING NOTICE AND BILL SPONSOR NOTIFICATION
2013-2014 SESSION

You are hereby notified that the House Committee on Commerce and Job Development will meet as follows:

DAY & DATE: Thursday, June 5, 2014
TIME: 10:00 AM
LOCATION: 544 LOB
COMMENTS: This is an informational meeting. The objective of the NC Golf Economic Impact meeting is to review the historic and ongoing economic contributions golf has made to the state. When examined in a historic context one reaches a simple conclusion: NC has been very good for golf and golf has returned the favor in kind. Read More

Senate leaders are looking at major cuts to health and human services programs that serve the poor, disabled and elderly in order to pay for teacher raises and fund Medicaid to required levels.

DHHSThe North Carolina chapter of the AARP has a good rundown here on what some of the proposed cuts will do, and the group says it is “disheartened to see the Senate budget proposal doesn’t value our state’s older adults and those who are blind and disabled.”

The state’s doctors are also concerned about the cuts to Medicaid system, and how it will affect some of the most vulnerable North Carolinians.

Robert Seligson, the head of N.C. Medical Society, denounced the state Senate’s budget proposal Thursday, saying it offers “no solution to the big challenges we’re facing in Medicaid.”

“Patient care under the Senate plan will suffer, especially for the aged, blind and disabled citizens of our state, who will no longer be eligible for Medicaid if the Senate has its way,” Seligson said in a statement.

Read More

Yesterday evening, members of the Senate Finance Committee gathered to consider a modified version of House Bill 1050 (HB 1050) which includes repealing the local privilege tax. A repeated claim by proponents of the tax repeal is that additional revenue from the local sales tax – resulting from the tax plan passed last year – will make up for the revenue lost from repealing the local privilege tax.

A closer look at a fiscal note provided by the General Assembly’s Fiscal Research Division, however, highlights that the math simply doesn’t add up to support this claim.

Fiscal Research estimates that a full repeal of the local privilege would result in nearly $63 million in less revenue for cities and counties across the state. Revenue from an expanded local sales tax is projected to bring in an about $10.9 million in additional annual local revenue and sales taxes from online sales via Amazon is expected to bring in around $2.9 million – for a total of $13.8 million in local revenue from an expanded sales tax.

Local Privilege Tax Repeal

It is clear that $13.8 million in additional local sales tax revenue is not sufficient to replace $63 million in lost revenue from the repeal of the local privilege tax. Less revenue means local governments will likely be further challenged with providing its residents with core public services and an attractive quality of life.