spend and tax

Gov. Mike Easley and the General Assembly continue the spend-and-tax cycle, increasing the General Fund $1.8 billion, 9.5 percent, over last year. General Fund spending on operations reaches $20.7 billion in FY 2007-08, a 43 percent increase in just five years, similar to the five-year period through FY1997-98.

House members approved a $20.3 billion budget for fiscal year (FY) 2007-08, up 7.6 percent from FY 2006-07; 1.5 times the 5.1 percent combined rate of inflation and population growth. Proposed spending is $1.4 billion ($158 per person or $632 for a family of four) higher than in FY 2006-07. Nearly all of the increase is in K-12 education, even though dropout rates have been increasing.