The Devil’s in the Details: Senate Budget Cuts vs. Revenues
The final legislative budget, which was approved by both the Senate and House this past weekend, is currently on Governor Perdue’s desk for consideration. The failure of the new leadership to address the state’s fiscal challenges with a balanced approach that includes revenue will impede North Carolina’s fragile recovery, placing additional pressure on local governments and communities. Throughout the budget process, the North Carolina Budget and Tax Center has contrasted budget cut options identified by NC General Assembly joint appropriations subcommittees with revenue options that would preserve decades of public investment in the economic and social advancement of North Carolina. The analysis of the final legislative budget demonstrates the significant opportunity to secure North Carolina’s future that is foregone when revenue is not part of the approach.
|The NC Senate budget includes
the following cuts …
|… but instead of making cuts,
|Health & Human Services|
|Justice & Public Safety|
|Total Cuts: $981.9 million||Total Revenue: $988.3 million|
—Text: Alexandra Sirota, Director, NC Budget and Tax Center; Chart: Brenna Burch and Edwin McLenaghan, Public Policy Analysts, NC Budget and Tax Center
Spending cuts are based on NC Budget & Tax Center calculations and data provided by the NCGA Fiscal Research Division’s Senate Appropriations Committee Report on the Continuation, Expansion, and Capital Budgets available at http://www.ncga.state.nc.us/fiscalresearch/budget_legislation/budget_legislation_pdfs/2011-05-31_MoneyReport_Final.pdf
Revenue options are based on NC Budget & Tax Center calculations, data provided by the Institute on Taxation and Economic Policy (ITEP), and the NC Department of Revenue’s Biennial Tax Expenditure Report available at http://www.dornc.com/publications/nc_tax_expenditure_report_09.pdf
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