posted October 5, 2010 by Dr. Terry Stoops, Joseph Coletti, Dr. Michael Sanera
Guilford county commissioners are asking for an $11.6 million tax increase at a time of high unemployment. In 2008, they twice asked voters to pass a tax increase, but by large majorities, the voters turned them down. To illustrate the commissioner’s inability to manage spending and the debt, the county will exceed its debt guideline every year from 2012 to 2016.
Business incentives are like lottery tickets, providing big rewards for governments if you don’t count the costs. Iredell County modeled the financial costs and benefits of an incentive offered in 2009 and showed a positive net present value for the incentives, but neglected to factor in the opportunity cost of forgoing the next best use for the funds and the likelihood the investment would have happened without an incentive.
North Carolina has the infrastructure to expand online course offerings significantly. Districts that enroll few students in online courses generally have a higher per-pupil expenditure than those that enroll a higher number of virtual school students.This report offers several recommendations, including introduce virtual charter schools; expanding online course offerings from private and for-profit companies, community colleges, and universities; and developing off-site high school campuses.
The final budget for fiscal year 2011 spends $20.56 billion, $153 million more than the budget for fiscal year 2010. General fund availability in fiscal year 2011 excluding federal funds is $17 million less than was available in fiscal year 2010. A $7 billion shortfall (accounting for federal bailout funds, temporary taxes, pensions and retiree health benefits, etc.) in a $20 billion General Fund requires fundamental reform of state government.
Over the past year the focus of North Carolina’s Joint Legislative Committee on Tax Reform has been almost exclusively on whether to expand North Carolina’s sales tax to include services. Following sound principles of tax reform, however, the focus should be on whether the tax base is what economists call neutral, and whether the tax conforms with the principles of justice, rooted in a respect for liberty and freedom of choice. At a combined average state and local rate of 7.98 percent, North Carolina’s sales tax rate is virtually tied with Tennessee’s rate of 8 percent as the highest in the Southeast.
A bipartisan majority passed (30-16) a gimmick-laden budget that would increase spending by $100 million over the current budget plan and $900 million more than actual spending in fiscal year 2009. The budget relies on $3 billion in one-time fixes, including $1.6 billion in federal stimulus funds and more than $1.2 billion in temporary tax hikes.
A state law that mandates racial/ethnic balance for charter schools contradicts another law that requires charter schools to use an enrollment lottery when applicants outnumber available seats. It is impossible for charter schools to use random (lottery) and non-random (affirmative action) student selection mechanisms simultaneously.
This glossary defines and explains terms used in the consultant's report, "Diagnostic & Approach Report" (DAR), which contains recommendations for implementing Raleigh's newly approved 2030 Comprehensive Plan.
posted March 4, 2010 by Kamen Nikolaev, Dr. Roy Cordato
In 2002 the State of North Carolina passed what was officially titled “Improve Air Quality/Electric Utilities,” which became better known as the Clean Smokestacks Bill (CSB). When the CSB was passed in 2002, it was estimated to cost $2.3 billion.
Proposed spending for FY 2010 is $20.4 billion, $775 million more than actual spending FY 2009. Gov. Bev Perdue cut $1.7 billion in spending during fiscal year (FY) 2009 without causing further hardships in the state.
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