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McCrory budgetGov. Pat McCrory held a formal signing ceremony to herald his approval of the new FY 2015 state budget this morning. The signing took place around a fancy old desk that was set up in front of some red carpeted stairs in the Governor’s mansion with a group of legislators and administration officials standing in the background. It was, in other words, a moment of gubernatorial pomp and circumstance — a moment in which the Governor was positioned to rise above the political fray and strike a statesmanlike pose.

Unfortunately, the Guv couldn’t help himself and in the middle of the ceremony — without any prompting from the media — decided to take cheap shots at his opponents. Read More

Veteran Raleigh journalist and political observer Steve Ford is out with a new and convincing look at the new state budget (i.e. the one the Governor said he’d sign before he actually got around to the business of reading it). It’s a full-length read but, as is always the case with Steve’s takes, definitely worth a few minutes of your time. Check it out below:

Revenue-starved budget rattles and rolls
By Steve Ford

The debate is familiar: State government is too big. No, it’s too small.

People in the too-big camp typically think government – the state agencies and institutions that North Carolinians support with their taxes — is too expensive. That it tries to do too much in the way of regulating business. That it saps individual initiative with aid to folks who should be working harder to help themselves and makes everyone else pay.

Across the philosophical fence are those who view robust regulation, robust social programs – including public education – and a fair tax structure generating a steady stream of revenues as cornerstones of a government that properly serves the public interest.

In the real world, of course the divide is not always so stark. But the contentious process by which the N.C. General Assembly has settled upon a new state budget highlights the opposing viewpoints. The budget now before Gov. Pat McCrory, who has said he will sign it into law, is one that could be accompanied by the slogan, “We did the least we thought we could get away with.”

Even though it calls for raising and spending $21.1 billion during the current July-to-June fiscal year, this is another small-government budget, relatively speaking — in keeping with the preferences of the conservatives who control the House and Senate and their Republican ally in the governor’s office. Read More

TeachersHeadline-hunting legislative leaders got what they wanted and needed (for now) with yesterday’s latest budget announcement. They wanted the story to be first and foremost about big teacher raises and it appears pretty clear that they got that. Media outlets around the state are reporting that central component of the proposed budget agreement this morning and millions of North Carolinians are waking up to the news — even if it’s frequently tinged with skepticism.

The problem with this story, of course is that, by all indications, the pay raise is being purchased at an enormous price — i.e. big cuts everywhere else –including education — along with tiny and inadequate pay raises for other public employees (including education personnel).

In short, though many details remain to be seen, the central and disastrous driving force behind this year’s budget — last year’s regressive and backward-looking tax cuts remain in full force. As budget analyst Tazra Mitchell wrote here yesterday:

There are better choices available that will put North Carolina on a stronger path to recovery for children, families, and communities across the Tarheel state. For starters, lawmakers need to face the reality that we can’t afford further tax cuts and stop the income tax cuts that are scheduled to go into effect next January. Doing so will save approximately $100 million in the current fiscal year and $300 million in the 2015 calendar year. These revenues would go a long way towards reversing the most damaging cuts that were enacted in the aftermath of the Great Recession. That’s a short-term fix.  A longer term fix requires restoring the progressive personal income tax structure so that revenues are stable and more adequate.

The only saving grace of the budget is this: the message it sends to progressives. As dreadful as the budget is — both for the near and long term — it does serve to remind progressives of the power of advocacy. Read More

SmokeIn an allusion to the signal that’s seen in the Vatican when the leaders of the Catholic Church elect a new Pope, at least one news media report this morning is talking about “white smoke” being visible on Jones Street. The story accompanying the headline, of course, is that leaders of the North Carolina General Assembly signaled over the weekend that they have agreement on the framework of a state budget deal. Assuming it really comes to fruition, the agreement comes a full month into the 2015 fiscal year.

A closer look at those puffs of smoke, however, reveals them to bear a notably blue tinge — that is, the kind one typically see with an engine that’s leaking oil and about to blow. As Alexandra Sirota details in the post immediately below and Chris Fitzsimon highlights in this morning’s “Monday Numbers,” one important impetus for the agreement would appear to be the latest calculations of the General Assembly’s Fiscal Research Division staff that the income tax cuts enacted last year are harming state budget revenues even more than had been officially forecast – i.e. more along the lines of what the Budget and Tax Center has been predicting all along.

So, keep in mind a couple of things this week as lawmakers and the Governor are falling all over themselves to issue statements of  self-congratulations:

1) Notwithstanding their rosy claims, the engine driving state government — the tax system — remains cracked and badly in need of an overhaul.

2) The current proposed solution — rolling up the window and ignoring the smoke — will provide only a temporary solution at best.

Barbara Dell Carter

Second grade teacher Barbara Dell Carter

Do you remember Barbara Dell Carter?

She’s the second grade classroom teacher at John Cotten Tayloe Elementary School in “little” Washington, who I visited late last summer while she dutifully prepared her classroom for the first day of school.

As she straightened up her books (many of which she procured through her own means), Carter told me of her fears of facing yet another year without a dedicated teacher assistant (TA), not to mention how to cope with a state budget that dealt significant cuts to other areas of the classroom.

She is worried. Not the back-to-school jitters kind of worried; she has deep-seated concerns about the challenges she will face this year as educators grapple with a public school budget that spends $500 million less than what was spent in 2008.

Five years ago, the teacher assistant who is now sitting in Carter’s classroom preparing instructional materials would typically spend the entire day, every day, with Carter during the school year. That teacher assistant would help her manage 21 or 22 seven-year-old children who need to go to the bathroom, get fed, learn a lesson at a slightly slower or faster pace, or go to the nurse’s office, among many other possible situations, all throughout the day.

Now, that teacher assistant will be shared among four or five other classrooms. So maybe Carter will have a colleague help her manage her classroom for just an hour each day.

Maybe.

Read More