Spotlight Report

An overriding budget: FY 2011-13 budget review

posted on in City & County Government, Economic Growth & Development, Spending & Taxes
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Key facts:

  • The final budget for fiscal year 2012 avoids an $850 million tax increase Gov. Bev Perdue sought, which means $200 less in taxes per household.
  • General Fund spending totals $19.5 billion, two percent less than Gov. Perdue’s original, $19.9 billion proposal.
  • In K-12 education, excluding the transfer of More at Four, the final budget spends just 0.6 percent less than Gov. Perdue’s proposal.
  • The state budget does not eliminate any teacher positions. County commissions and local school boards will decide if any teachers or teacher assistants lose jobs.
  • Budget writers expect two proven programs in Medicaid (managed care and mental health waivers) to generate more savings without adverse health outcomes.
  • Another Medicaid saving games federal reimbursement rules to generate $1.3 billion in additional federal payments to hospitals and other providers.
  • Income-tax changes could make future tax reform easier to accomplish.
  • Proposed spending for fiscal year 2013 is $400 million higher, but has no provision for the rainy-day fund or a fund balance at year’s end.

 


Spotlight 411 An overriding budget: FY 2011-13 budget review

Joe Coletti is Director of Oversight Staff for the NC House Majority. Joe is a former Senior Fellow at Locke. Here, he examined fiscal and tax policy. He previously headed the North Carolina Government Efficiency and Reform initiative… ...

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