Spotlight Report

An overriding budget: FY 2011-13 budget review

posted on in City & County Government, Economic Growth & Development, Spending & Taxes
Featured Image

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… ...

Donate Today

About John Locke Foundation

We are North Carolina’s Most Trusted and Influential Source of Common Sense. The John Locke Foundation was created in 1990 as an independent, nonprofit think tank that would work “for truth, for freedom, and for the future of North Carolina.” The Foundation is named for John Locke (1632-1704), an English philosopher whose writings inspired Thomas Jefferson and the other Founders.

The John Locke Foundation is a 501(c)(3) research institute and is funded solely from voluntary contributions from individuals, corporations, and charitable foundations.