2009 - 2011 North Carolina Budget Highlights

Increased Taxes with Cuts in Education, Jobs, and Health and Human Services

CLEVELAND COUNTY NEWS -- North Carolina District 111 house representative, Tim Moore reflects on his week in Raleigh, highlighting the passage of the budget in the North Carolina House of Representatives:

"This has been a very interesting week with the vote on the budget, Senate Bill 202. I received a copy of the full budget on my desk at 10:00 Tuesday morning and the first vote was Tuesday afternoon with much debate on the House floor. We took the second vote Wednesday afternoon (66 yes, 51 no).

"Here are copies of:

• Senate Bill 202 Text
• Senate Bill 202 Table of Contents Committee Report (details of budget changes)

The budget passed along party lines with all Democrats voting for the budget, and all Republicans voting against the budget. I voted against the budget because of the tax increases and many budget cuts that I thought were harmful and unnecessary. Below is a short breakdown of some of the budget cuts and taxes:

"The budget raises taxes by more than $990 million. Much of this new revenue will be raised through a one-cent sales tax increase. Everyone in North Carolina will pay this tax, and it is a regressive tax⁽¹⁾.

"An income tax surcharge is included: 3% on individual income for those married and filing jointly with an income of over $250,000; 2% on individual income if making between $100,000 and $250,000 married filing jointly. Also, there is a 3% surcharge on corporate income. Education will have $225 million in cuts that will be passed down to the Local Education Administrations (LEAs) to make the cuts locally. (The average class size for grades K-3 will not change). Funding for 200 literacy coaches has been eliminated that is a $12 million cut. The funding for math textbooks in grades 6-12 has been delayed, and a moratorium may happen on all new textbooks.

"For those interested in dual enrollment/Huskins courses: The budget bill does eliminate funding for the general education (excluding math, science, and technology), physical education, and college success skills courses offered to high school students through the dual enrollment and Huskins programs. These courses will no longer generate State funding through budget FTE. If a community college wants to offer these courses to dual enrollment and Huskins students, then the colleges may charge an amount sufficient to cover the costs of the courses. This reduction does not impact courses provided to students of Early and Middle College High Schools.

"Health and Human Services: funding for Smart Start will be reduced by $16 million, $3 million is cut to local mental health services providers, the Division of Medical Assistance community support services is cut by $65 million, $40 million is cut in state funding for services provided through local providers, Medicaid provider rates are reduced, and there are other cuts to Health and Human Services.

"Higher Education: The Legislative Tuition Grant for students attending private colleges has been reduced by $100 (from $1,950 to $1,850). Increases tuition at all UNC institutions (increase is of the lesser of $200 or 8%). Cuts will also be made that will effect senior and middle management, low-enrollment degree programs, speaker series, etc. ($72.9 million cut).

"Community Colleges: The supplemental funding for programs that provide assistance to developmentally disabled adult students by teaching life skills has been cut by $1.2 million. Community Colleges across the state have a $14 million cut, but it cannot hurt the programs that retrain out-of-work folks. A tuition increase will be implemented.

"State jobs: 2,191 jobs will be cut in 2009-2010, but most of these are vacant positions. State employee salaries remain the same for the most part in the budget. There are provisions that allow the increase in salary due to a promotion or other increase in duties and responsibilities. Automatic step increases for teachers, principals and assistant principals, magistrates, assistant and deputy clerks of court, and members of the State Highway Patrol are suspended for the biennium.

"I fought very hard to keep Cleveland Correctional open, but along with six other prisons, it will close. This is a loss of 50 jobs and is the last thing we need in our county. The House and Senate leadership said the correction officers could find other jobs in other prisons. Excise taxes: Beer 8/10-cent per can, Liquor 5%, Wine 4-cents per bottle, 10-cent cigarette tax.

"Unemployment in our state and in Cleveland County remains high, and these taxes will only make it more difficult for our already struggling families, the disabled, and our businesses. A recession is not the time to raise taxes. This budget is the same level of spending by state government as the recently completed fiscal year. The Democratic leadership with this budget did not reduce the level of actual spending at the state level.

"There were many other bills on the House calendars this week. A couple we voted on were: Senate Bill 990, Increase Penalty/Timber Theft, increases the criminal penalty for cutting, injuring, or removing another's timber resulting in damages that exceed one thousand dollars. House Bill 1117, Sex Offender Can't Drive Bus with Children, provides that the Division of Motor Vehicles shall not issue or renew commercial drivers licenses with endorsements that qualify a person to drive a commercial passenger vehicle or school bus for anyone required to register under the sex offender and public protection registration programs.

"As always, please feel free to contact us with any concerns or comments you may have. We look forward to hearing from you. You can reach us at our Raleigh number at 919-733-4838 or you can e-mail us at timm@ncleg.net or Moorela@ncleg.net.
Best Wishes,
Representative Tim Moore
Serving Cleveland County"

(1) A regressive tax is applied uniformly taking a larger percentage from low-income individuals, thus imposing a greater burden on the poor than on the rich due to the inverse relationship between the tax rate and the taxpayer's ability to pay as measured by assets, consumption, or income.

Finally, it is good to hear from our Legislators in Raleigh. Their news gives us insight to what is really taking place in the North Carolina General Assembly.