• John Locke Update

    Four Key Differences Between the House, Senate, and Cooper Budget Plans

    posted September 13, 2021 by Paige Terryberry
    The North Carolina General Assembly is still finalizing a two-year budget. Budget proposals from the House, Senate, and governor would have varying effects on North Carolina’s fiscal future. Spending restraint, tax cuts, and considerable savings would contribute to more opportunities and bigger paychecks for North Carolina families.
  • John Locke Update

    House Budget Plan Features Tax Cuts, Assertive Infrastructure Spending, and Pay Raises

    posted August 11, 2021 by Paige Terryberry
    The House budget plan, per previous agreement, would spend about the same total amount as the Senate plan. Differences exist, however, primarily with a less aggressive tax cut plan and more aggressive pay raises to teachers and state employees. Similar to the Senate plan, the House proposal would set aside significant funds in the Savings Reserve and Capital Infrastructure funds.
  • John Locke Update

    Now is not the time for new programs or debt

    posted January 27, 2021 by Joseph Coletti
    An uncertain economic time is not good for borrowing. If the state takes out debt and the post-COVID economy turns out to be smaller, then debt capacity will shrink and the debt will end up taking more from other priorities. If the economy recovers quickly, then the state would have more money available for capital anyway.
  • John Locke Update

    State revenue picture continues to improve

    posted November 23, 2020 by Joseph Coletti
    North Carolina state government continued to have strong finances seven months after the economy first began to slow in March. Budget writers should nevertheless be cautious about adding spending commitments, however.
  • John Locke Update

    North Carolina’s COVID-19 Response: State Budget

    posted March 16, 2020 by Joseph Coletti
    Our budget stalemate may have an unexpected and unintended benefit. Because the General Assembly and Gov. Roy Cooper could not agree on a new budget, state government has been operating…
  • John Locke Update

    States and Families are Saving for the Future

    posted August 30, 2018 by Joseph Coletti
    While the federal government’s deficit and debt grow, it seems families and state governments have become better savers during the current recovery. North Carolina’s budget picture is improving, with revenues…
  • John Locke Update

    The Rest of the State Budget

    posted June 28, 2017 by Joseph Coletti
    By now you know the major points of the state budget: it spends $23 billion in the first year and $23.6 billion in the second year, reduces the tax rates…
  • Research Report

    Don’t Tap Rainy Day Fund: State Package Overstates Proper State Relief Role

    posted December 13, 2001 by Don Carrington
    State lawmakers are being asked to tap the rainy day fund to finance hurricane relief. They should look more closely at the details of the administration proposal. It provides large windfalls to businesses, farmers, homeowners, and others far beyond what is needed to alleviate immediate suffering and repair public infrastructure. A relief plan reflecting better priorities could be financed with budget savings, so the rainy day fund could be used to repay $240 million in illegal taxes.

rainy day fund by Author