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As Chris Fitzsimon noted this morning, the lack of sunlight and opportunity for public input on a new round of tax cuts currently under construction in the state Senate is truly outrageous.

Now there’s more news on the black hole that is the Senate in this story by Mark Binker at WRAL.com entitled: “Crucial legislation can be crafted behind closed doors.”

As Binker reports, Senate Republicans are literally drafting the state budget behind closed doors with literally no opportunity for public input: Read More

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It was North Carolina Thom Tillis who infamously described his political plan for North Carolina as an effort to “divide and conquer” those who opposed the conservative move to repeal much of the progress of the 2oth Century, but this morning it sounds like it will be Tillis’ frequent political nemesis, Senate leader Phil Berger, who will be pushing the “divide and conquer” strategy in the days to come.

According to news reports, the Senate will roll out a new proposed budget today that will offer public school teachers sizable raises in exchange for giving up their career status (i.e. their right not to be fired without at least some good reason). And while details are still emerging, it seems a certainty that such a potentially costly plan will be funded with new and painful cuts to other important public structures and services (e.g. health care for the poor, higher education and the justice and public safety system).

In other words, it appears the Senate will propose a “divide and conquer” budget today — one that divides and pits teachers against each other and that divides and pits public education against other vital public functions.

Meanwhile, over in the House, Speaker Tillis is probably consulting with his legal team over his options to sue from copyright infringement.

Falling Behind in NC, NC Budget and Tax Center

This afternoon, Governor McCrory released his $20.99 billion 2015 fiscal year budget for the period that runs from July 2014 to June 2015. His proposal creates more problems than it solves, failing to take prudent steps that would put North Carolina’s budget on a more sustainable path. Similar to his budget proposal last year, his new spending proposal follows suit and fails to catch up—let alone keep up—with the needs of kids, working families and communities in many areas of the budget.

The Governor’s budget was constrained in major ways—which were self-imposed by state lawmakers last year when they decided to cut taxes. The state is facing a revenue shortfall of $191 million in the 2015 fiscal year (not to be confused with the nearly half-a-billion shortfall for the current 2014 fiscal year that ends in June). The driver of these revenue shortfalls—despite an economic recovery—is the series of tax cuts that Governor McCrory signed into law last year that was already estimated to drain available revenues to the tune of $437.8 million in the 2015 fiscal year.

As we reported last week, estimates suggest that the revenue losses from the tax plan, particularly stemming from the personal income tax changes, could reach $600 million next fiscal year.

Yet, rather than prudently recommending the halting of future tax cuts that are scheduled to go into effect in January 2015, the Governor chose to keep this next round of tax cuts in place despite the diminished revenue picture. As we warned last year, North Carolina cannot afford to pay for tax cuts that primarily benefit the wealthy and profitable corporations at the expense of teacher layoffs, growing waiting lists for critical public services, and higher tuition rates.

State spending under the Governor’s proposal would continue to remain well below pre-recession levels, as illustrated in the chart below, even though spending over the base budget would slightly increase. All areas of education funding fall short of what was called for in the continuation budget. Tax cuts are making it harder to regain lost ground. Read More

NC Budget and Tax Center

The Governor’s budget irresponsibly jeopardizes North Carolina’s future economic prospects.

There are two main reasons: it uses one-time money that won’t be there in years to come, and it makes cuts in key areas that are the building blocks of a strong economy.

Self-inflicted revenue shortfalls resulting from the tax plan enacted last year mean fewer dollars to build a strong foundation for the state’s economy and improve the lives of all North Carolinians. The Governor’s use of one-time money and cuts to key areas, like higher education and health, are shortsighted and harmful to the state’s long-term stability and growth.

The Governor should put forward a responsible plan to pay for his priorities by stopping any further tax cuts from going into effect and urging legislators to re-examine the tax decisions made last year.  Next year’s financial gap has the potential to grow even larger as the costs of personal income tax changes are felt. State policymakers would do well to plan for that impact and its potential devastating effect on families and the state’s economy.

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Thom TillisNorth Carolina House Speaker Thom Tillis headlined a press event at the General Assembly this morning that was supposed to be about kicking off the 2014 legislative session but that, at times, felt a lot like a part of Tillis’ U.S. Senate campaign.

There will plenty of time for dissecting the details of what was said at the event, but there was at least one familiar conservative talking point repeated by Tillis that deserves to be debunked immediately and often.

Namely, it is utterly absurd for legislative conservatives (or anyone else for that matter) to argue — as the Speaker did at at least one point — that Democrats imposed more significant cuts on state services (like public education) back in 2009 and 2010 than have been imposed since the GOP assumed control of the General Assembly  in 2011 and the Governor’s mansion in 2013. This is like blaming FDR for the plunge in federal spending during the Great Depression.

Earth to Speaker Tillis: Yes there were large and problematic state budget cuts in 2009 and 2010, but that’s mostly because state revenues had literally dropped like an anvil as a result of the global Great Recession. Read More