As noted in this space last Friday, the rules of the North Carolina House of Representatives clearly require that lawmakers refer the conference report on the 2016-17 budget to a standing committee for review prior to the full House vote that is scheduled for tomorrow.

House Rule 44(b) states that:

“a conference committee report which includes significant matters that were not in difference between the houses, shall be referred to a standing committee for its recommendation before further action by the House.”

House Speaker Tim Moore

House Speaker Tim Moore

The obvious point of this rule is to prevent lawmakers from cooking up new law changes that were not included in either of the original versions of the bill passed by the House or the Senate and then inserting them in to a conference report that’s negotiated and drafted in secret. It is, in other words, a modest but important rule to assure a modicum of sunshine and transparency so that rank and file lawmakers, the news media and the public at large can have at least some idea of what the hell it is that’s being voted on.

Though everyone is still sifting through the massive 429 page document, here are two significant matters that are in the conference report that were not in either version of the budget passed previously:

#1 – As Chris Fitzsimon pointed out this morning, the conference report includes a new and hugely destructive provision to undermine light rail plans in the Triangle.

#2 – A new, out-of-whole-cloth change to state law on the number of so-called terminal groins that will be allowed along the coastline (see page 207 of the report).

These are both extremely important law changes that were never approved by either House throughout the eight month-long legislative session. Read More

NC Budget and Tax Center

As part of ongoing negotiations to produce a state budget, state lawmakers would like to provide more tax cuts to North Carolina taxpayers. This tax proposal, while unclear in the details (is it another reduction to the already low 5.75 percent personal income tax rate?), would offset the increase in various DMV fees included in the budget passed by House members.

A refundable state Earned Income Tax Credit (EITC) is a great way for state lawmakers to fulfill their desired goal of ensuring working families aren’t paying more as a result of their budget choices. The EITC provides a modest boost to the wages of low- and moderate-income workers, which will help offset additional costs resulting from an increase in DMV fees. Prior to its elimination in 2014, more than 927,000 North Carolinians claimed the state EITC, with working families in each of the state’s 100 counties benefiting from the tax credit.

State lawmakers’ reported agreement to provide $110 million in tax cuts to offset the DMV fee hikes is close to the value of the state EITC. For FY 2013, prior to its elimination, the state EITC cost around $101 million, which is less than the tax cut target agreed to by state lawmakers. The EITC is the best targeted tool to address the upside-down nature of the state’s tax code. Better than an increased standard deduction, the tax credit is proven by years of experience and research to effectively target working families who earn low wages so that they can make ends meet, support their children’s healthy development and boost the economy.

If state lawmakers are serious about correcting the imbalance in the state’s tax code, a refundable state EITC is the most effective way to support children and working families and help spur economic activity in local communities across the state.


Right-wingThere are a lot of bad explanations that have been advanced to justify various acts of the state’s conservative political leadership in recent years.

There’s been the “it’s all Bev’s Fault” excuse in which every problem in (and experienced by) state government — including the Great Recession and its aftermath — is attributed to former Governor Bev Perdue. One can also substitute President Obama here as well, except of course, when one is discussing the national economic recovery (all the good parts of which are, naturally, attributable to conservatives and/or fracking).

Then there’s “the Democrats did it too” excuse. As was explained here, this is most typically used to justify lack of transparency or process, but it can also work to justify gerrymandering, education cuts and a slew of other promise-breaking transgressions. Naturally, previous conservative promises to change the way things are done in Raleigh cannot be mentioned when using this explanation.

And, of course, who could forget the “things are just fantastic now here in the Old North State” explanation. This is invariably trotted out when the latest unemployment report reveals another bump in the rate or new data emerge on the state’s yawning and growing gap between haves and have nots.

Lately, however, there’s been a new contender and it’s been used regularly by lawmakers and right-wing think tankers to justify the last minute, out-of-thin-air  emergence of completely new legislative proposals several months into the legislative session and long after the supposed deadline for the introduction of new bills. This is the “that issue has been discussed for a long time” excuse. You know how this goes:

Reporter: What do you say, Senator (or conservative commentator) to those who argue it’s simply wrong and an evasion of the rules to introduce a series of immensely important constitutional amendments (or a 50 page bill to wreck state environmental laws) weeks after the session was supposed to have ended and months after the supposed bill introduction deadline?

Lawmaker (or commentator): Well, now, you know that issue has been out there for a long time and been discussed in lots of venues. I think everyone knows what the debate is all about and you can rest assured it will get a full going over.

To which all a body can say in response is, “is that so?” By such logic, government doesn’t really need any rules or process at all.

After all, Read More

NC Budget and Tax Center

North Carolina officials will soon have spent all available financial incentives the state offers to businesses that are considering locating or expanding in the state. Each year the state awards millions of dollars in subsidies to businesses through its Jobs Development Investment Grant (JDIG) program.

The state is now one project announcement away from spending all of the $22.5 million in funding allocated to JDIG for the current year, accordingly to state Commerce Secretary Sharon Decker. Governor McCrory is being urged by proponents to call a special legislative session before January 2015 to increase funding for the JDIG program. Yet, this is coming at a time when state revenue collections are $62 million below projections for the first quarter of the current fiscal year as the cost of the tax plan passed last year continues to increase. The reality is that absent additional revenue, increasing funding for the JDIG program means cuts in other areas of the state budget to pay for the additional spending.

Secretary Decker states that “Tax reform has helped us because we are no longer the highest in the Southeast, and that is great” and goes on to assert “But, we will not be competitive for those jobs without JDIG.” Yet, it is tax reform that was supposed to spur job creation and boost the economy, but is nevertheless hindering our ability to invest in JDIG and core public services that are stronger determinants of sustainable job creation and economic growth. State revenue collections are $62 million below projections for the first quarter of the current fiscal year and as we have written elsewhere, the cost of the tax plan for the current fiscal year could be more than $1 billion. The tax plan passed last year, sold as a job-creation package, reduced the state’s personal and corporate income tax rates to largely benefit the wealthy and profitable corporations. Still, more corporate subsidies are being asked for in the name of job creation.

Read More


The Alliance for a Just Society along with Action NC released a report today titled “The Promise of Quality, Affordable Health Care for Women: Is North Carolina Delivering?” The answer, in a word, is no.

Overall the report gives our state a C- on women’s health when looking at a range of measures from health outcomes to access. Most abysmal is the state’s ranking on health insurance coverage. There we merited a D-. The uninsured rate among non-elderly women in NC is nearly 17 percent. There are also tremendous racial disparities in uninsured rates. Nearly 19 percent of black women are uninsured in the state, according to the report, and almost 39 percent of Latinas are uninsured. Our state ranks 50 out of 50 for uninsured rate among Latinas.

The grades don’t climb much higher from there. On women’s access to health services we earned a mediocre C and on health outcomes we get a C-. This is a report card we might want to hide in the couch cushions.

But there’s good news that could boost our lackluster scores. As the report recommends, expanding Medicaid would put a major dent in our uninsured rate, help close the health disparity gap, and improve outcomes.

NC lawmakers once famously claimed that Medicaid expansion has nothing to do with women’s health. This report card, and hundreds of thousands of women across the state, beg to differ.