Spotlight Report

Budget for Growth: JLF plan redirects funds, cuts taxes to create jobs

posted on in Spending & Taxes
Featured Image

•  For the last 30 years North Carolina has seen spending grow three times faster than population and inflation.
•  Implementing a new tax system for North Carolina, JLF’s consumption-based USA Tax of 6 percent would remove the personal, corporate, and inheritance taxes.  Applying the free market spending priorities within JLF’s alternative budget would save nearly $500 million in the next budget year and more than $1 billion over two years while dropping the sales tax to 4 percent and reducing the franchise tax 60 percent in fiscal year 2014-15.
•  Removing state aid for special interests and non-government functions would save the state more than $80 million and redirect that to the Savings and Reserves account.
•  The bottom-line spending figure for JLF’s 2013-14 General Fund budget plan is $20.1 billion, $490 million less than the governor’s proposal. JLF would decrease General Fund spending by 0.2 percent, compared to McCrory’s 2.2 percent increase. Total state spending would decrease in both plans.
•  In the second year of the two-year budget plan, JLF’s proposal would spend $560 million less than McCrory’s plan. General Fund spending is $1.05 billion less in the Locke Foundation plan than in the McCrory plan over the course of the two-year budget cycle.
•  This budget offers 19 specific policy recommendations in K-12 education, early childhood programs, public safety, Medicaid, transportation, and state employee benefits. Among them: eliminate class size mandates, revise NC Pre-K income eligibility criteria to target children with the greatest needs, re-establish drug courts, divert mentally ill individuals into community-based care rather than jails, cut Medicaid services not required by the federal government, and require state employees to pay a portion of their health care premiums.

Spotlight 433 Budget for Growth: JLF plan redirects funds, cuts taxes to create jobs by John Locke Foundation

Sarah Curry is Director of Fiscal Policy Studies at the John Locke Foundation. Previously, she worked for the North Carolina State Senate as a research assistant for the chairs of the Senate Agricultural Committee and headed the research efforts for… ...

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.