Monday, August 2, 2021

Play

Hundreds of thousands of Medi-Cal recipients are paying monthly premiums when they donít have to; Dr. Fauci predicts the pandemic will get worse.

Play

The Texas voting rights fight gets star power; lawmakers stage a sit-in as the eviction moratorium expires; and Senators work overtime on infrastructure.

Experts Predict Looming Budget Crisis in North Carolina Following Tax Cuts

Play

Tuesday, November 18, 2014   

RALEIGH, N.C. - North Carolina lawmakers are likely enjoying some downtime after the legislative session and midterm election, but experts predict a tough session waiting for them on their return to Raleigh.

A report from the Office of the State Controller indicates tax revenues are down by almost $400 million compared with this same time last year - a six percent drop in revenue. Alexandra Sirota, director of the North Carolina Budget and Tax Center, says it's not a problem the State Assembly will be able to ignore in January.

"This is a serious issue," she says. "It's self imposed in that policymakers chose to reduce our revenue. Now they're going to have to make choices about some pretty deep cuts."

Sirota and others believe the decreased revenue is a result of personal and corporate income tax cuts. Additional tax cuts will take effect Jan. 1, unless lawmakers call a special session to stop the cuts from taking place. State revenue is expected to get a boost in the form of sales tax revenue from holiday shopping.

Opponents of North Carolina's recent tax cuts point to the problems experienced in Kansas, where large tax cuts have resulted in significant cuts to public education and have not resulted in a growth in the state's economy as its governor predicted. Gerrick Brenner, executive director of Progress North Carolina Action, believes North Carolina could share a parallel experience with Kansas if action isn't taken.

"There's been a windfall for the wealthy and for corporations," says Brenner. "Some people have actually had their taxes go up if you're at the lower income brackets. And who is going to pay for this budget mess? It's going to be our public schools, our universities, and vital services that need state funding to function."

Brenner notes Governor Pat McCrory promised in his 2013 State of the State address that tax reform would not result in less revenue for the state.

Sirota says her analysis indicates the state will have to cut programs or raise taxes in order to balance the budget, as mandated by the state constitution.

"What we're seeing is that fewer dollars are coming in because the tax plan that was passed gave significant tax cuts to the wealthy and profitable corporations," she says. "As a result, we don't have the money to make investments for a stronger North Carolina."


get more stories like this via email

Of the Massachusetts users who consulted the website 'iFixit.com' last year, 23% of searches were for cellphone repair guides, and 17% were for laptops. (NorGal/Adobe Stock)

Social Issues

ROSLINDALE, Mass. - A new report finds Massachusetts residents would rather repair electronic devices than send them to landfills, but manufacturers …


Social Issues

DENVER-During the COVID health emergency, the federal government made school meals available for free to all students, regardless of their financial …

Social Issues

HELENA, Mont. - COVID-19 is underscoring the importance of ensuring that people's estates are in order, but estate planning can be be tricky for …


New Mexico Voices for Children says, as in many states, families of color in New Mexico were hit hard by the pandemic, in terms of school closures and job losses. (nappy.co)

Social Issues

ALBUQUERQUE, N.M. - Pandemic fallout still has U.S. states clawing their way back to normalcy, and New Mexico believes its decision to provide more …

Social Issues

AMARILLO, Texas - The American Farm Bureau Federation hosts more than 100 college level chapters across 35 states, but this is the first time its …

According to FBI data, U.S. law enforcement agencies made an estimated 1,558,862 drug related arrests in 2019. (Adobe Stock)

Social Issues

ELIZABETH CITY, N.C. - As activists mark more than 100 days of protest since the April 21 death of Andrew Brown Junior - killed outside his Elizabeth …

Health and Wellness

GREENSBORO, N.C. - Local health departments that rely heavily on Advanced Practice Registered Nurses say the costly contract requirement that they be …

Social Issues

SACRAMENTO, Calif - Hundreds of thousands of Medi-Cal recipients who experienced financial hardship during the pandemic are paying monthly premiums …

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member and audience-supported news source since 1996 Copyright © 2021