Although state revenue estimates are growing at the rate of about $100 million each month, the North Carolina House managed to pass a $17.1 billion budget that requires even higher taxes than the Senate’s bill. Spending would grow 7.5 percent. Despite this, some representatives claim that the budget is a model of fiscal responsibility because it ties recurring funds to recurring obligations. Fiscal responsibility does not require $778 million in new taxes or $376 million in transfers and new fees. “Reverse logrolling” in the conference is the last best hope for the General Assembly to become responsible.
by Joseph Coletti
Senior Fellow, Fiscal Studies, John Locke Foundation