Cooper Says We Have Enough Money for 18% Spending Increase, But Not Enough For Scheduled Tax Cuts | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Paige Terryberry.

    Governor Cooper released his recommended budget for the biennium today. The General Assembly has already begun budget writing, and the Governor's recommendations, in this case, are purely political.

    Even so, it is worth examining what our state budget could look like should the Governor have his way.

    This budget tackles numerous topics, including Leandro and Medicaid Expansion which are not discussed here. Below are a few fiscal highlights:

    Increase State Spending by 18% in the First Year

    The recommended budget offers a $32.95 billion baseline for the upcoming fiscal year. This is an 18% increase from our current budget, which clocks in at $27.9 billion. This would be the largest year-over-year spending increase in the state's history. The second year of the biennium recommends appropriating $34.23 billion. This second-year spending number is generally increased during the short session budget adjustments.

    Increasing spending commitments on the eve of a national recession is unwise. An 18% increase is particularly egregious.

    It is important to remember that although Gov. Cooper articulates the spending as "investments" in crucial programs or updates to the state's infrastructure, 88% of the state budget goes to paying people.

    Calls for spending increases are more politically alluring than calls for restraint. But in the end, expanding government harms North Carolina families who will foot the bill.

    Increase State Employee Pay

    The recommended budget would implement a 5% across-the-board cost-of-living increase to state employees in the first year followed by a 3% increase in the second year. One-time bonuses would be offered on top of that.

    Teachers would see a 16.6% pay raise under the Governor's two-year budget, with 10% coming in the first year. Teacher pay is a recurring topic in North Carolina. However, any discussion of teacher pay must account for the increasing cost of teacher benefits (health insurance, retirement, etc.).

    Moreover, paying teachers or state employees based on job performance rather than years of service could greatly improve the state employee pay issue.

    After Gov. Cooper vetoed pay increases numerous times, the last biennium budget increased pay for most state employees. Pay increases are important, but it is also key to note that these are recurring budget items and incur long-term liabilities for the state budget.

    Deny Scheduled Tax Rate Cuts

    The Governor's recommended budget would implement a two-tiered progressive tax rate. Because it's politically implausible to raise taxes, the Governor's plan would halt tax reform for higher-income families ($100,000 threshold for single filers; $200,000 for MFJ) at the current rate of 4.75%. Families below that income threshold would see their personal income tax rate decrease to 4.5%.

    The currently scheduled tax rate cuts would go to 3.99% by 2027 for anyone paying income taxes in North Carolina.

    While claiming, on one hand, to invest in businesses, the Governor's recommended budget would stop the scheduled phase-out of the harmful corporate income tax rate. This would be to the detriment of North Carolina workers who bear the burden of the tax. A higher corporate income tax results in lower wages and fewer jobs.

    Gov. Cooper's administration has no qualms with an almost 20% expansion of state spending on the eve of a recession. That the administration can applaud government expansion while disregarding tax cuts to North Carolina businesses and workers is telling of their priorities. Thankfully, this political budget is dead on arrival.

poll#178
Considering the current overwhelming obstacles inflicting stress upon America's working class: rampant inflation; energy insecurity; supply chain turmoil; banking failures; foreign policy disasters; government corruption; (DEI) Diversity Equity Inclusion narrative, with WOKE extremes practiced; Climate Change ideology; intractable crime wave in Leftist cities; wide open border by executive design; a permanently discredited Legacy Media; failed or failing education industry, just to name a few of the many: Who should Americans blame?
  Donald J. Trump
  Joseph R. Biden
  Leftist controlled Congress for the last 4 years.
  Bloated, incompetent bureaucracy weaponized and poorly managed
  The electorate, US, for putting these fools in elected office that utterly fail
277 total vote(s)     What's your Opinion?

Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )



Comment

( March 22nd, 2023 @ 11:11 am )
 
Three things that I have learned, and truths that YOU should know about Authoritarian Cooper; he is:

1. Weak on Math;

2. Weak on Liberty;

3. Weak on the Constitution(s).



Supreme Court Can Right a Wrong in Voter ID Rehearing Statewide, John Locke Foundation Guest Editorial, Editorials, Government, Op-Ed & Politics, State and Federal Cooper’s “Opportunity” Budget Finds Billions for Teachers and Staff; Little to Nothing for Families who Want an Educational Option.


HbAD0

Latest State and Federal

President Joe Biden’s Small Business Administration (SBA) was subpoenaed by the House Committee on Small Business on Tuesday over alleged efforts to “register Democrat voters” in Michigan, a vital battleground state in the 2024 election.
The 2024 second primary election will be held statewide on Tuesday, May 14, 2024. In-person early voting ends at 3 p.m. Saturday, May 11, in all 100 counties.
North Carolina Department of Health and Human Services (NCDHHS) began sending out letters last week to up to 300,000 people who are enrolled in Medicaid’s limited Family Planning program and now qualify for full NC Medicaid benefits
The ‘Ragin’ Cajun’ lived up to his old nickname in a recent video, scolding and berating younger Americans and telling them all the horrible things he believed would happen if former President Donald Trump won another term in the White House.
Ford Motor Company revealed this week that it lost more than a hundred thousand dollars for every electric vehicle that it sold during the first quarter.
Oscar winner Mira Sorvino and other Hollywood stars reacted to a decision by the New York Court of Appeals to overturn Harvey Weinstein’s 2020 rape verdict.
Speaker Mike Johnson (R-LA) and former President Donald Trump ripped NBC as “weak” and “an absolute disgrace” after the network dropped former Republican National Committee Chair Ronna McDaniel four days after announcing her hiring as a contributor.
Liberal comedian Bill Maher praised Florida Governor Ron DeSantis this week for taking the fight to Disney over their sexualization of children.
Virginia Gov. Glenn Youngkin vetoed 30 gun control bills on Tuesday afternoon, using his perch as a Republican governor to restrain Democrats from taking the state in a leftward direction despite the party having taken full control of the legislature in November.

HbAD1

 
Back to Top