The North Carolina General Assembly faces a critical choice about the state’s fiscal direction: whether to extend nearly $500 million in tax increases that politicians had previously promised were “temporary,” or to find additional savings to balance the FY 2003-04 budget. Since the taxes were originally imposed in 2001, North Carolina’s business growth has fallen short of the Southastern average and its tax rates remain among the highest in the region and the nation. And according to the Tax Foundation, North Carolina's state/local tax burden has risen to 25th in the nation in 2003, up from 36th in 1998.
posted March 31, 2003 by Dr. Roy Cordato, Don Carrington, John Hood
North Carolina faces significant fiscal and economic challenges over the next two years. But it need not resort to higher taxes, a state-run lottery, higher debt, or gimmickry to balance its budget. Nor does North Carolina need to skimp on crucial needs such as education and highways. By setting firm priorities within state government, eliminating unnecessary or duplicative programs, and charging users of some services a reasonable price, state leaders can generate sufficient savings to invest in the future needs of the state.
Ground-level ozone, often referred to as smog, is front and center on the policy agenda of environmental groups and legislators at all levels of government. Over the past several years, high-profile studies published by the American Lung Association, the Public Interest Research Group (PIRG) and the Clean Air Network (a consortium of environmental advocacy groups) have claimed that ozone is having a severe impact on public health, both nationwide and in North Carolina. These reports have gotten a great deal of media attention but very little media scrutiny.
Gov. Mike Easley has proposed an annual cap on the growth of state spending in North Carolina that would be tied to personal income growth. In considering the idea, lawmakers should examine recent data that show state spending caps to be effective particularly if they rebate excess revenues to taxpayers and enjoy constitutional, rather than just statutory, authority. Without a spending cap, it is likely that fiscal discipline will disappear as the state’s economy recovers.
All middle school teachers in North Carolina have to teach physical science, which is required for middle school students in NC public schools. Unfortunately, over 80% have never taken a physical science course and many of those who have, have taken a course that is of no help to their students. Naturally, with their limited backgrounds, they hare heavily dependent on the materials they are given to teach from. In addition, in many instances these materials form the teacher’s own introduction to the subjects. It is especially important, therefore, that the textbooks and other materials that teachers and students are forced to use get it right.
North Carolina lawmakers are once again coming to Raleigh to grapple with a projected deficit exceeding $1 billion. A close examination of fiscal trends demonstrates that excessive spending, not inadequate revenue, is the cause and that the state budget continues to be bloated with wasteful or low-priority expenditures. Policymakers must show courage, be willing to apply fundamental principles, and target major areas of state spending for savings and reform.
The National Board for Professional Teaching Standards (NBPTS) is a private organization formed in 1987 with the goal of establishing standards for teaching effectiveness and certifying those teachers it identified as especially capable. NBPTS has written standards that purport to show what accomplished teachers “should know and be able to do” and has established a certification procedure that relies on videotapes, portfolios and written essays. There are currently more than 16,000 National Board certified teachers in the United States, more than 20% of them in North Carolina.
posted January 6, 2003 by Erik Root, Michael Lowrey
By the Numbers 2003: What Government Costs in North Carolina Cities and Counties is the fourth in a series of studies that examine local taxes, fees, and charges in every North Carolina communities. Charlotte ranks first among major cities in combined local government costs per person, with Hickory, Durham, Wilmington, and Cary rounding up the top tier. Among large urban counties, Durham and Mecklenburg have relatively high costs as a percentage of personal income.
Former Indianapolis Mayor Stephen Goldsmith said that one of the greatest challenges facing local government is how to do more with less. This is certainly true for local governments in North Carolina. In the past two years, they have had to adjust to significantly more stringent budgetary constraints. This was brought on, in large part, by Governor Easley’s decision to withhold state reimbursements to counties and municipalities. Because of this localities are being forced to find innovative ways to balance their budgets.
After months of delay, the state legislature has enacted a revised FY 2002–03 budget that differs little from the plan originally proposed by Gov. Mike Easley in May. Lawmakers adopted nearly all the governor's $543 million raid on local government reimbursements and highway funds, changing only what percentage will be made up with a sales tax increase. Taxpayers are the big losers—entering the second of what promises to be three straight years of huge tax hikes.
