JUST RELEASED: TAX CUTS HURT EDUCATION FOR ALL
North Carolina’s ability to make public investments crucial to promoting widespread prosperity and a growing economy will be sharply constrained for at least the next two years. As a result, ensuring high-quality learning and education opportunities for all North Carolina children and students remains a challenge. Check out the new BTC brief at this link.
The budget North Carolina will live under through June of 2017 will sharply constrain the state’s ability to make public investments crucial to promoting widespread prosperity and a growing economy.
The reason: tax cuts. All of the tax changes in the recently adopted state budget will reduce available revenue for the biennium by $841.8 million. Those are resources the state will not have for public education, community economic development, the court system, and other vital services that helped deliver broad economic gains to North Carolinians in the past.
Within four years the annual cost balloons to over $1 billion each year because of the phase in of rate reductions for individual taxpayers and profi table corporations. At this critical point in the state’s uneven and slow economic recovery, policymakers chose to deliver greater benefi ts to the wealthiest few rather than build a solid foundation that supports opportunity for many.
Click on the image below for a chartbook explaining tax cuts, state spending, and other major impacts of the final state budget proposal.
For more on the budget and process:
ABOUT OUR STATE BUDGET WORK
The state budget is a reflection of North Carolina’s values and commitment to supporting economic opportunity and investing in the state’s future. The Budget and Tax Center produces rigorous analysis of state budget proposals to determine if they adequately fund public structures and services, particularly those that promote shared prosperity, quality education, and healthy communities.
Public Investments – Every year, the Budget and Tax Center produces a report on each of the state budget proposals—from the governor, the NC House and the NC Senate—and one on the final budget. We analyze the budgets to determine if they make adequate investments in education, health and human services, the courts and public safety, transportation and the environment. Legislators often refer to our analyses during budget debates, and public officials and progressive organizations throughout the state rely on our reports to help them understand the state budget and what it means for their communities and issue areas.
Fiscal Responsibility – The Budget and Tax Center is the only research organization that looks not only at what investments the state is making but also how it pays for them. In addition to our tax analysis, we look at how decisions about savings, fund transfers, and the use of one-time money affect the state’s long-term fiscal health. The Budget and Tax Center also monitors the transparency and accountability of the budget process.
Human Impacts – The budget makes a difference in our everyday lives and the vibrancy of our communities. The Budget and Tax Center works to engage with communities on the budget and its impacts and monitor and document how it is affecting North Carolinians.