Spending & Taxes

The Columbus County commissioners are asking voters to approve a sales-tax increase on November 4. This report identifies nearly $14.2 million in revenue and savings the county could use to meet its needs — almost 15 times the amount that the proposed tax increase would produce.

The Guilford County commissioners are asking voters to approve a sales-tax increase on November 4. This report identifies nearly $65.3 million in revenue and savings the county could use to meet its needs — more than four times the amount that the proposed tax increase would produce.

For the second time, the Tyrrell County commissioners are asking county residents to approve a tripling of the land-transfer tax (from 0.2 to 0.6 percent), this time on November 4. This report identifies over $6.4 million in revenue and savings the county could use to meet its needs — almost nine times the amount that the proposed land-transfer tax increase is estimated to produce.

Despite claims to the contrary, North Carolina’s new drought management bill does not expressly prohibit the regulation of water use from private wells. In fact, the bill likely authorizes regulation of water use from private wells.

North Carolina’s relatively high tax burden in the region has not improved the state’s schools, roads, health, or crime as much as would be expected. Per-capita personal income growth also lagged, though population grew faster in N.C. than in most other states.

During the last legislative session, the North Carolina General Assembly voted to reestablish the Committee on Dropout Prevention and add $15 million to the existing $7 million for dropout prevention grants. The purpose of the dropout prevention grants is to raise the graduation rate. Among districts receiving grants last year, 27 of 38 had a declining graduation rate from the 2006-07 school year to the 2007-08 school year.

The North Carolina General Assembly approved a $21.4 billion budget for fiscal year (FY) 2009, up 3.4 percent from FY 2008, with $21.2 billion in appropriations for operating expenses, up 4.0 percent. As usual, the final budget was prepared behind closed doors by the House Speaker and President Pro Tem of the Senate with minimal involvement from all but a dozen legislators of either party and little opportunity for the public or other legislators to review spending proposals before a final vote.

North Carolina’s government-controlled auto insurance system is unfair to good drivers because it overcharges them in order to subsidize some of the state’s more risky and dangerous drivers. Every auto insurance policy written in the state has a hidden tax – which averages 6 percent – that goes to the government-mandated, privately run insurance pool. Download PDF file: North Carolina’s Unfair Auto Insurance System (544 kb)

The North Carolina House passed a $21.35 billion budget for fiscal year (FY) 2009, with $21.18 billion for continuing operations, which would be increases of 3.3 percent and 3.7 percent, respectively, from FY2008. Teachers would receive an average 3.0 percent pay increase and state employees 2.75 percent. Those raises would total $367 million.

Our public schools are struggling to meet the needs of special-needs students throughout North Carolina. During 2006-07 school year, less than 50 percent of high-school students with disabilities graduated in four years. A legislative analysis found that the state would save at least $3 million a year in the cost of educating special-needs students, so long as at least five percent of the special-needs students in public schools transfer to a private provider or facility.