By Tazra Mitchell
Public Policy Fellow
The two-year budget approved by the North Carolina Senate falls far short of what is needed to meet the needs of children, working families and communities, and will continue to
hamper North Carolina’s full recovery from the Great Recession. Instead of investing adequate resources in schools, health care, public safety and the other building blocks of a strong and enduring economy, the Senate chose to leave room for tax cuts for the wealthy and profitable businesses that will cost $770.2 million in lost revenue over the next two years, and an additional $229.8 million in the third year, according to a preliminary analysis.
In the 2014 fiscal year, which begins July 1, the state would spend $1.9 billion — or 8.5 percent—less than the last state budget approved before the onset of the Great Recession, taking account of inflation. As such, it would continue to badly underfund vital public services that North Carolina residents and businesses rely on every day.