Better spending plan
Published May 20, 2015
Editorial by Greensboro News-Record, May 20, 2015.
When Gov. Pat McCrory submitted his proposed budget to the legislature in early March, the state was still in the grip of winter gloom. Like brown lawns and bare trees, revenue forecasts also gave little hint of new growth just around the corner.
Since then, spring burst forth in its glory and tax collections surged. So, in its proposed budget revealed this week, the N.C. House of Representatives took a more generous turn.
The House and governor both want to raise starting pay for teachers to $35,000. The House would add 2 percent pay raises for all state employees as it proposes to increase state spending by 6 percent overall. It includes adding money to state reserves.
The House would restore a tax deduction for senior citizens’ medical expenses. Eliminating that benefit was a painful blunder. It pulled in more revenue but gave thousands of die-hard voters a nasty shock: The Republicans’ “tax reform” cost them money. House members aim to correct that mistake.
Also restored would be millions of dollars in film incentives and money to pay for historic property restoration. Dropping those favors sent movie and TV productions to other states and got rid of a tool used to revitalize small towns and inner cities.
The House would spend money to improve state ports at Wilmington and Morehead City. Trade contributes heavily to the North Carolina economy, and it’s better to move more of it through state ports. They need upgrades.
Overall, however, there still aren’t enough investments. North Carolina must restrengthen its universities and community colleges and do more to make sure children are ready for post-secondary education. Quality early childhood learning is still unavailable to many children, and high numbers never get on track in the primary grades. This summer, Guilford County Schools is faced with reading camp cuts. Legislators insist that third-graders should read well before advancing to fourth grade, but they’ve never provided enough resources to fund the summer programs needed to help slower learners catch up.
The House also suffers from the attitude that some state services should pay for themselves. One example is the directive that state parks, museums and attractions such as the N.C. Zoo in Asheboro implement “dynamic pricing,” a concept that amounts to charging whatever the market will bear. The “market” is not a monolith, and people of modest means should have the same opportunity as well-to-do residents to enjoy public facilities. There’s nothing dynamic about ticket prices that leave some families outside the park gate.
The $400 million revenue windfall for the current fiscal year gives budget writers some hope that revenues will continue to be strong. They are wisely investing a little more in people, infrastructure and savings.
Yet with more corporate tax cuts coming, it’s questionable whether revenues will continue to grow enough to pay for further needed investments.
It would be better to freeze corporate tax rates and make sure a lush, green spring doesn’t dry up in a summer drought.
