Tag: state budget

Deep revenue losses will mean fewer dollars available for health and human services amidst growing demand

June 26, 2013 at 3:53 pmCategory:Falling Behind in NC | NC Budget and Tax Center

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North Carolina’s revenues are slowly recovering but still deeply damaged by the recession. Regaining the ground that we have lost will be more difficult in the coming years because state lawmakers are pursing deep and lopsided tax cuts that will put at risk the critical public services that help build the engines of long-term economic growth.

It is unquestionable that there is a lot of ground to be regained—especially when it comes to investing adequately in the health, safety, education, and economic security of families and children. The current state budget for health and human services (HHS) is proof. Read More…

Slowing growth in state spending would have serious consequences

June 26, 2013 at 8:04 amCategory:Falling Behind in NC | NC Budget and Tax Center

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For more than a century, North Carolinians have pooled their resources to invest in great achievements, including a statewide K-12 system, the oldest public university system in the country, transportation infrastructure and a lot more. Taxes matter for the economy and society that we all enjoy so how the state government raises the billions of dollars that fuel the state budget is very important.

And, the ability of the state tax system to grow with the economy and keep up with the cost of public services and the changing needs of the population is critical. Yet, this continues to be a missing part of the debate over the impact of tax plans under consideration

Senate and House leadership say that their plans merely slow the rate of state spending to around 3 percent and 4.5 percent, respectively, compared to the long-run average of 4.8 percent. A 1.5 percentage point drop and a .3 percentage point drop in the revenue growth rate sound innocuous at first glance, but further analysis shows just how devastating this would be. Read More…

Senate leader changes his tune on budget negotiations

June 25, 2013 at 1:09 pmCategory:Uncategorized

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Phil BergerIt’s funny how a little water under the bridge and a change of jobs can alter one’s perspective on public events.

This is from a 2009 News & Observer “Under the Dome” story about then-Senate Minority Leader (and current Senate President Pro Tem) Phil Berger slamming budget negotiations between House and Senate leaders — mind you, this was during a period of profound budget crisis in which the Great Recession was pummeling the state’s economy and tax revenues:

“Senate Republican leader Sen. Phil Berger said it’s another example of Democrats’ incompetence that the state doesn’t have a budget 14 days into the fiscal year.

‘For the average person, when they have a deadline and they need to get something done, they are held accountable,’ said Berger, an Eden Republican, at the weekly Republican news conference.”

Now flash forward to 2013. This is from a “Dome” story posted this morning: Read More…

Stop-gap spending measure heads to the Senate floor

June 25, 2013 at 11:42 amCategory:NC Budget and Tax Center

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As expected, the Senate Appropriations Committee passed a stop-gap measure this morning that will keep the state government running during the first 30 days of the next fiscal year that starts on July 1st. The closed-door negotiations over the tax plan continue to hold up the budget process, prompting legislators to miss the June 30th deadline for passing a two-year spending plan.

The resolution permits state agencies to spend up to 95 percent of their authorized budgets from the current fiscal year. The Office of State Budget and Management is tasked with determining how to trim the other 5 percent. Budget writers claim that a reduction is required to make up for a projected spike in Medicaid checkwrites resulting from a switch to a new payment system that will begin on July 1st.  In an unusual move, the measure also appropriates additional dollars to address the Medicaid shortfall by using unspent dollars, overcollections, agency reversions, and a portion of the TANF block grant. Read More…

Former N&O’er still cranking out excellent editorials

June 25, 2013 at 8:16 amCategory:Uncategorized

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The current chief editorial writer for Raleigh’s News & Observer, Ned Barnett, has been doing an excellent job since taking over the position a few months back (click here for a great recent example).  But if you ever find yourself missing the insights of Barnett’s predecessor, Steve Ford, you will be happy to know that Ford is still producing some excellent essays over at the website of the North Carolina Council of Churches.  

This one from last Friday about the current state budget and tax debate is worth your time.