General Assembly

RALEIGH – North Carolina legislators employ a “spend and tax” budget policy that paves the way for regular tax hikes, according to a new John Locke Foundation Policy Report.

Economic growth has given the General Assembly $2.4 billion more to spend. Higher sales and income taxes have contributed to this surplus. The Senate adds $1.4 billion in new spending, and relies on nonrecurring revenues for $400 million in new recurring obligations. Drawing on the John Locke Foundation’s Freedom Budget 2005, this paper offers an alternative budget that would end the sales tax and income tax increases from 2001, eliminate Medicaid’s burden on counties, and keep spending growth to 4.3 percent – all within the limit of population growth and inflation.

RALEIGH – N.C. legislators should close the books on two “temporary” taxes, now that those taxes have helped generate a $2.4 billion state budget surplus. That’s a key finding in…

RALEIGH — With pivotal legislative elections just weeks away, likely voters in North Carolina are critical of recent actions by Gov. Mike Easley and the General Assembly on taxes, local…

Gov. Mike Easley and the General Assembly face half-billion-dollar budget deficits (at least) for FY 2000-01 and FY 2001-02. But the problem need not become a crisis. State leaders now have an opportunity to restructure government programs and rethink state responsibilities. Budget savings previously recommended by Locke analysts would yield nearly $600 million this year and $743 million next year enough to close the gap without raising taxes or increasing state debt.