Gov. Pat McCrory offered a sunny outlook for North Carolina in his State of the State address, as governors should do.
“Our people are resilient and our future is bright,” he proclaimed Wednesday night.
McCrory cited the falling unemployment rate and “swift action” in response to crises: an Ebola scare, the Dan River coal-ash spill and a flu epidemic. He boasted about deep tax cuts.
Yet, he pointed to plenty of work ahead. He didn’t report that the state’s resources are lacking.
The governor noted the state this year will pay off its debt to the federal government for unemployment benefits — three years early. This was accomplished through small tax increases on employers and by cutting off benefits for thousands of unemployed workers.
“Now in North Carolina, not only do we balance our budget, but when we have a debt, we cut up the credit card and pay it off,” McCrory said.
Minutes later, he asked the legislature to charge $2.5 billion to that credit card he just cut up.
The governor was addressing real needs: About half the money would pay for highways, bridges and other transportation infrastructure; the other half would repair or tear down state buildings that are in poor repair.
He offered no idea for paying off this new debt. Nor for buying “a clear and concise job-creation toolbox,” which he needs to compete with other states but didn’t clearly explain. What exactly does he want? We’ll find out later.
Lack of revenue threatens all initiatives. Thanks to the cuts the governor touted, state tax revenues for the first six months of the fiscal year fell $468 million short of what they were a year earlier, according to the Office of State Controller. With North Carolina supposedly enjoying an economic recovery, tax revenues should be increasing so the state can invest in roads, education and other needs.
The governor also called for another pay raise for teachers, which they deserve. But where does the money come from?
He mentioned finding efficiencies in state government. At the same time, McCrory proposed adding two new cabinet-level agencies, one for Military and Veterans Affairs, the other for Information Technology.
Perhaps his Medicaid reform proposal will improve care and save money, as he hopes. He needs cooperation from the legislature, which he didn’t get last year. He made a Super Bowl reference: “Let’s not take another pass this year. Let’s run it up the middle and win a victory for families across North Carolina.”
Will he recommend Medicaid expansion? He’s still ambiguous: “If we bring a proposal to cover the uninsured, it will protect North Carolina taxpayers. And any plan will require personal and financial responsibility from those who would be covered.”
Fine. Do it, Governor. A healthier population will be a more productive population, more attractive to businesses.
There is a sunny future for North Carolina, but it still waits behind a few gray clouds.
