NC Budget and Tax Center

The General Assembly used a few of the last hours of the 2015 session to cut back how long unemployed North Carolinians in economically distressed counties can receive food assistance. Even though this weeks’ labor market data show that 9 out of 10 counties have more out of work people than job openings, the new rule would cut unemployed people off regardless of how hard it is to find work. The change could take food off more than 100,000 tables across North Carolina, and will pull money out of already struggling local economies, a doubly bad deal.

The one-sentence provision in the ratified bill (see section 16.a) permanently prevents the state from seeking to extend food assistance for people who can’t find work in their local economies, except in times of emergency. The federal Supplemental Nutrition Assistance Program (SNAP) allows states to temporarily waive a three-month time limit for unemployed childless adults who live in areas where few jobs are available.77 waiver counties - Updated for Blog Post

Recognizing that cutting off food aid to areas where there aren’t enough jobs hurts entire local economies, North Carolina sought this waiver for 77 of our 100 counties earlier this year. If the Governor signs this measure and SB119 into law, the ban on the waiver would go into effect in July 2016. Without the modest support of SNAP (formerly known as food stamps), between 85,000 and 105,000 North Carolinians would be subject to the three month-time limit and potentially will not be able to purchase food at their local grocery stores, depressing consumer demand further and driving use of food banks already stretched to capacity. Read More


The Charlotte Business Journal reports that MillerCoors will close its brewery in Senate President Pro Tem Phil Berger’s hometown of Eden. This is from the CBJ story:

“The closure will affect 520 workers at the brewery, which opened in 1978 and is one of Rockingham County’s largest employers.

Rockingham County Manager Lance Metzger said after the company made the announcement to its employees, they were allowed to go home for the day to spend time with family.

MillerCoors expanded its Eden plant just four years ago with the addition of about 70,000 square feet of warehousing space, and at that time employed about 600 at the plant.”

Meanwhile, Senator Berger will hold a presser this afternoon at 3:00 to tout his latest austerity state budget — you know, like the last two, which were supposed to have turned North Carolina into a job-creating juggernaut. One wonders if he’ll take the opportunity to highlight the new state law (which started in the Senate) that makes unemployment insurance even harder to collect.

Meanwhile, Governor McCrory is on top of things at this critical juncture in state policy debates. His office has distributed one press release today — an announcement that the Guv and First Lady will host an “adopt a pet” event next month at the Governor’s Mansion.


unemploymentThere was a fine op-ed in this morning’s edition of Raleigh’s News & Observer by an unemployed man from Salemburg named Bobby Parker about the sorry state of North Carolina’s bottom-of-the-barrel unemployment insurance system. And make no mistake; it is sorry. As a result of legislation passed in 2013, North Carolina’s once middle-of-the-pack system is now near the bottom in the nation in just about every category.

Consider the following stats from the U.S Department of Labor:

• Only 15% of the unemployed received benefits for the first quarter of 2015. This was 47th in the country.
• NC has an average weekly benefit amount of $231.30/week which ranks us 47th in the country.
• The average duration of benefits is 12.9 weeks, which ranks us 45th in the country.

Here is where things stood before the changes contained in House Bill 4 hit:

• 39% of the unemployed received benefits during the second quarter of 2013. This placed 24th in the country.
• NC had average weekly benefit amount of $301.06 which ranked 25th
• The average duration of benefits was 15.9 weeks, which ranked us 31st.

But wait, as Mr. Parker (and yesterday’s Progressive Voices contributor Steve Ford) explain, things are about to get worse. It turns out that even with the precipitous fall documented above, state lawmakers want to demand more from the unemployed by increasing their work search requirements. Here’s Mr. Parker:

“Now, state leaders want to make sure that you’re not sitting on your duff lapping up that $350 to lavish on, say, utilities to power your Internet job search, gas to get you to an interview or … food?

So they’re ready to require the unemployed to make and record at least five contacts per week with potential employers. Currently, the state requires two such contacts per week.

Simple and reasonable enough? Well, yes, it would be if those contacts were likely to be productive. But even with the current mandate of two, I find myself applying for jobs that I know I’m not going to get because I don’t have the experience or skills that match the available work.”

As Ford explains, the bill to make this all happen now sits on Governor McCrory’s desk awaiting his signature. He has until next Thursday to decide what to do — thus making it almost certain that not only will North Carolina make its scrooge-like system even stingier, it will do so during the week that is designed to honor workers of the nation. All in all, it’s an apt gesture from a group of politicians who almost never miss a chance to remind average workers of how little they are valued.


As state leaders deride the unemployed as lazy good-for-nothings and slash their insurance benefits, the news about finding a job job remains discouraging for a large swath of North Carolinians. Here’s the latest sobering news about the “Carolina Comeback” from economist Patrick McHugh:

“Unemployment is still a major problem in North Carolina. The headline unemployment rate has inched up from 5.3% to 5.9% since the beginning of the year, but that still doesn’t tell the whole story. When people who have been forced out of the job market since the Great Recession by a lack of job openings are included, the actual unemployment rate is still in double digits, almost twice what is commonly reported. This gap between the official unemployment rate and the reality on the ground can skew the policy conversation, making it look like the good times are back when that’s not really the case.

The US economy has improved since facing down the prospect of complete collapse a few years ago, which has buoyed employment prospects in North Carolina. However, any talk of a complete recovery is grossly overstated. There are likely more than 230,000 North Carolinians who would like to work, but don’t show up in the official figures. When those “missing workers” are included, the total tally of North Carolinians who can’t find a job rises past half a million. Read More


unemploymentVeteran Raleigh News & Observer political reporter Rob Christensen, a confirmed centrist who has sometimes frustrated progressives down through the years with his extremely high tolerance for conservative policy blather, is right on the money this morning with a new and powerful takedown of the state’s Scrooge-like unemployment insurance policies.

In addition to explaining and dissecting the state’s U.I. system and the recent conservative-designed changes that have made it the “stingiest…in the country” in succinct terms, Christensen takes an important  extra step and speaks from the heart in the conclusion to his essay:

“So why are our political leaders behaving this way when most of their constituents punch a clock or fill out a time card?

Here are several thoughts. Businesses bankroll most of the legislator’s campaigns and finance a battery of lobbyists on Jones Street. There is almost no one to speak for people who get laid off.

There is also a view among some conservatives that unemployment insurance is, in the words of the Civitas Institute, “paying people not to work.’’

This view, I might add, is contrary to my life experience. Three of my grandparents worked in a textile mill. My father was a factory worker. I worked in a textile mill and other manufacturing plants in my early years.

I have known lots of hard working people – family, friends, neighbors, and colleagues – who have been laid off. It is a terrifying experience. You don’t know how you will take care of your family or meet your mortgage payments. Often your self-esteem takes a beating. The modest amount of unemployment insurance doesn’t even begin to cover living expenses.

There are apparently some people who believe the American worker is a slug just waiting for a chance to sit on his or her duff. I think they are wrong. I believe most Americans just want a chance to earn a decent living.”

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