Rob, we obviously are going to agree that North Carolina’s state government is riddled with unjustified and counterproductive subsidies for businesses and economic-development programs. But we are likely not going to agree with what should be done with the fiscal capacity that excising corporate welfare would free up.
As I noted in my initial piece, we have seen dramatic growth in HHS spending over the past decade, much of it in the mid- to late-1990s when the economy was humming. Let?s face it: politicians got annual windfalls of state revenue, in part due to a ?progressive? tax structure that kicks households into higher tax brackets during periods of rapid growth. The politicians chose to create new programs, including those within HHS (Medicaid expansions and Smart Start come to mind). Now, slower rates of growth off of these high baselines are being called ?cuts.? In context, they are not.
I don?t necessarily endorse the priorities within HHS that some of the House budget writers appear to be setting. But I do think it is reasonable not to continue to increase new programs, such as More at Four and Health Choice, when we have other pressing needs to address, including budgetary balance and tax relief. And I think we need to be willing to reexamine the program expansion of the mid-1990s.
