Archives

NC Budget and Tax Center, Poverty and Income Data 2013

North Carolina is enduring a painfully slow economic recovery. There are too few jobs open for all of the people looking for work, and the majority of the new jobs available pay wages so low that families can’t make ends meet. The ongoing economic hardship is evidenced in new data released last week by the Census Bureau. Statewide, the poverty rate held steady at 17.9 percent in 2013, with more than 1.7 million North Carolinians living on incomes below the federal poverty level. That’s about $24,000 annually for a family of four—certainly not enough to pay all the bills, much less get ahead.

However, just looking at statewide averages can mask the concentrations of hardship in particular geographic communities. A large and growing body of research shows that where one lives can determine if one has access to the educational and employment networks that can pave a pathway to the middle class. Because place is deeply connected to the opportunity structure, it important to analyze county-level (as well as neighborhood-level) variances in poverty.

Of the 40 counties in North Carolina for which 2013 data is available, 15 are urban and 25 are rural (based on population size).* Nine of the ten counties with the highest poverty rates were rural counties, which continue to face job loss and struggle with the consequences of the exodus of manufacturing jobs. The highest county-level poverty rate was in Robeson County, where nearly 1 in 3 residents lived in poverty. In fact, Robeson County consistently ranks as the poorest county in the state and as one of the poorest in the nation. Read More

Uncategorized

jobseconomyDon’t get us wrong; it’s almost always great whenever a new employer is creating jobs in North Carolina. And the phenomenon of politicians claiming credit for job creation is nothing new; everyone likes good news and wants to be around when it’s delivered.

That said, today’s press release from the office of Governor Pat McCrory announcing the expansion of a plastics manufacturer in Henderson County borders on the ridiculous. This is from the release:

“Governor Pat McCrory and N.C. Commerce Secretary Sharon Decker announced today that Elkamet Inc. is expanding its North Carolina manufacturing operations in Henderson County.  The company plans to create 20 new jobs and invest more than $2.5 million over the next three years in East Flat Rock…. Read More

Uncategorized

In Kansas, tax reform isn’t exactly playing out the way some lawmakers had hoped.  The state that Grover Norquist once called “the starter gun for tax competition” has passed a series of income tax cuts over the past year with the stated goal of eventually eliminating income taxes altogether in the near future.  This “race to zero” is well underway in several states with conservative governors and legislatures.  Here’s a quick look at how that’s working out so far for Kansas:

A $2.5B budget shortfall

The Kansas Legislative Research Department is projecting a $2.5 billion revenue hole through 2018 because the legislature has yet to figure out an effective way to replace lost revenues as a result of the income tax cuts.

A threatened credit rating

Last month, a state court ruled that the Kansas legislature was breaking the law by underfunding public schools as a result of the income tax cuts, which prompted Moody’s Investors Service to warn of a negative credit risk for the state.

Less funding for public services

Concerns over the state’s credit rating aren’t the only thing that should give Kansans pause.  By starving public schools and other services critical to economic success, the state is jeopardizing future growth. Read More

Uncategorized

Some people took offense at yesterday’s attempt at satire regarding the aftermath of Hurricane Sandy. In response to which all a body can say is: Would that they had taken offense to the real world actions of the North Carolina General Assembly on the subject of destructive Atlantic Ocean phenomena!

And speaking of the policy implications of the disastrous weather of recent days, this morning’s Weekly Briefing (“Who ya’ gonna’ call?”)  uses Hurricane Sandy and its aftermath as a means of raising the subject of our societal investment in public structures and systems and providing a reminder of how absolutely essential they are for the well-being of our economy and society generally.

Uncategorized

In case you missed them, there were two very different but equally powerful history lessons that were made available online in recent days:

#1 – The first came from a professor of history, Duke University’s William Chafe, whose op-ed in Raleigh’s News & Observer provided a refresher course on the close link between the rise and fall of the middle class and our ebbing and flowing societal commitment to public investments.

#2 – The second came from author Larkin Warren whose piece for the New York Times (“I Was a Welfare Mother”) provides a powerful refutation of those who seek to “divide and conquer” or simply ignore the Americans who find themselves, at times, “dependent” on public assistance.

Great stuff.