Spotlight Report

Since the 1940s, over a million wells have used hydraulic fracturing (“fracking”) safely. The chemicals used are about 99 percent water and sand. The rest is a blend of chemical additives, most of which are found in typical household and personal care products.

For fiscal year 2014-15, North Carolina’s General Fund budget rose 2.2 percent to $21.1 billion. It funded an average teacher salary increase of 7 percent, one of the largest pay raises for North Carolina teachers in a generation, and created a Medicaid contingency fund of $186.4 million.

Medicaid’s fundamental flaws stem from the way in which it is funded, as both state and federal government share the total bill. If Medicaid’s federal share was transferred to North Carolina as an annual block grant, it would allow lawmakers to exercise more control over the program and create a stronger incentive to sort out system waste and abuse.

North Carolina passed a law during the 2014 legislative session taxing the liquid used in electronic cigarettes at an additional 5 cents per milliliter. This tax will hurt small businesses and violates the most important principle of good tax policy—neutrality. The North Carolina General Assembly should repeal the electronic cigarette tax.

Reverse logrolling applied to the current state budget would result in a General Fund budget of $20.6 billion and a $667 million surplus, which would allow legislators more flexibility when discussing spending priorities, including teacher pay increases. It would also allow enough to be set aside in savings and reserves to avoid any unforeseen shortfalls in the next fiscal year.

This study synthesizes findings from 888 articles published since 1990. Based on these, we can say that in recent years North Carolina has been moving in the right direction on school reform. Policymakers should continue the momentum and resist attempts to backtrack.

Officials from Haywood County have proposed an increase in the county’s occupancy tax by 50 percent, which would disadvantage Haywood compared to surrounding counties with lower rates. Taxation is justified only for necessary purposes of government. Tourism promotion is not such a function and can best be served by the private sector.

Most studies find that lower levels of taxes and spending, less-intrusive regulation, and lower energy prices correlate with stronger economic performance. The implications of this research track well with recent public policies adopted in North Carolina. Judging from the available empirical evidence, North Carolina’s new policy mix is likely to result in stronger economic growth in the coming years.

The North Carolina Map Act virtually freezes property development within proposed road corridors and can encumber and devalue property indefinitely. North Carolina should protect the constitutional property rights of its citizens by repealing or reforming the Map Act.

The NC General Assembly should create two permanent commissions charged with raising the quality and rigor of state standards, curricula, and assessments. Each commission should employ a large and diverse group of stakeholders and should modify or replace the Common Core State Standards, specify content that aligns with the standards, recommend a testing program, and provide ongoing review.