Report: Gov. Perdue’s budget defies most pessimistic predictions, preserves vital investments
But the proposal still costs thousands of jobs and backs corporate tax cuts that are unlikely to boost North Carolina’s economy, says a comprehensive analysis prepared by the NC Budget & Tax Center
RALEIGH (March 1, 2011) – Gov. Beverly Perdue’s budget defied the most pessimistic expectations of advocates by avoiding deep personnel cuts in education and health and human services, a report from the NC Budget & Tax Center finds, but the proposal also costs thousands of jobs while backing an ill-advised corporate tax cut.
In a comprehensive and balanced assessment of Perdue’s budget released this morning, the NC Budget & Tax Center said that “several key recommendations of this budget deserve praise,” particularly the governor’s appropriate and fiscally sound use of one-time savings to reestablish the Mental Health Trust Fund ($75 million) and replenish the Rainy Day Fund ($150 million).
While the report notes that the state sales tax remains a disproportionate burden to low-income North Carolinians, the governor’s decision to extend the current state sales tax at 5.5 percent also “provides the boost in revenues needed to sustain key state services and avoid even deeper cuts in education and health and human services.”
The report takes a dim view of the Governor’s corporate tax cut proposal and widespread elimination of jobs, however.
“Corporate tax cuts are unlikely to spur significant job growth,” said Alexandra Forter Sirota, BTC director and one of the report’s authors.
Perdue’s budget also relies heavily on the elimination of up to 5,800 state positions – some vacant and some filled – as well as cuts in funding to local governments that could result in the elimination of as many as 4,100 non-teacher positions in North Carolina public schools.
FOR MORE INFORMATION, CONTACT: Alexandra Forter Sirota, BTC director, 919.861.1468, email@example.com; Brenna Burch, Policy Analyst, 919.856.2176, firstname.lastname@example.org; Jeff Shaw, director of communications, 503.551.3615, email@example.com.