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Click here to view and here to listen to Sarah Curry discussing the John Locke Foundation’s proposal for a Taxpayer Bill of Rights. RALEIGH — While North Carolina’s…

The budget proposal outlined here reduces appropriations in fiscal year (FY) 2009-10 to $18.8 billion, $2.6 billion less than the final budget for FY 2008-09, and similar to the budget for FY 2006-07. In this proposal, per-capita spending adjusted for inflation of $1,969 remains higher than in FY 1997-98 or any year before.

RALEIGH — The John Locke Foundation’s “Back to Basics” state budget proposal would shave 10 percent of total spending from North Carolina’s budget plan. It also would set state…

This report documents the change in locally generated revenues of 98 North Carolina counties* and the 30 largest N.C. cities between 2002 and 2007. Locally generated revenues increased faster than population and inflation in 96 of 98 counties and 24 of 30 cities. In Union County, revenue increased 48 percent faster than population and inflation over five years. For that reason, many counties and cities are having financial difficulties because they have spent taxpayer revenues on unnecessary or low-priority projects.

Tax revenue in North Carolina is volatile because of the dependence on income and sales taxes. Proper budgeting would account for the rise and fall in tax revenues over time.

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.

Six weeks into fiscal year 2005-06, the General Assembly has a budget proposal from the conference committee. It includes $17.2 billion in spending (up 7.9 percent from 2004-05), over $700 million in higher taxes and fees, and $681 million in extra collections. This spending is well above the governor's spending cap. A constitutional tax and expenditure limit would provide the best insurance against permanent tax increases from reckless spending.