Write your rep now! STOP MASSIVE state Budget CUTS!

[PACMAN]

On Friday morning, June 5th, I had the privilege of participating in a conference call hosted by State Representative Tricia Cotham. She arranged the call to communicate to her constituents her grave concern over the proposed state budget cuts for North Carolina in 2010.

The proposed cuts to education, health and human services, capital infrastructure, justice and public safety would be devastating. The reduction, delay or elimination of these services will have a severe and immediate impact on the most vulnerable citizens of our state, and over time will negatively impact each and everyone one of us and our communities, particularly in Charlotte East. The cuts will have far reaching effects that will not only be felt this year, or for the next several years while our economy recovers, but will impact a generation. This immediate reduction in expenditures will create new problems that will have a ripple effect, and eventually be felt across every demographic and geographic area of our state. These problems will only result in further economic and social costs that in the long term will far outweigh the fiscal benefit of the short-term reduction in expenses. This is particularly true in Charlotte East.

Other solutions (such as increasing revenue) must be found - these are essential services that cannot be cut this drastically. Below is additional information and a partial list of the proposed cuts. This budget will go before the State Senate for vote on Tuesday June 9th. Please consider contacting your State Representative and Senator by Monday to share your concerns about these cuts. Go to http://www.ncleg.netand in the right hand column you can look up your representatives and their contact information. State budget questions may be directed to Representative Cotham (Tricia.Cotham@ncleg.net). Please forward this email as you see fit and feel free to track this issue at http://www.eastsidepac.com/forum/viewtopic.php?f=35&t=231

Proposed budget cuts for the NC State House subcommitee 2010 budget
1.8 billion in cuts to Education, including:
Reduction in the number of teachers by at least 12,000, this number likely to be increased by 18,000.
ALL teacher assistants to be fired after 3rd grade.
Cuts to the number of social workers to handle discipline issues in schools.
Class size increase by 2 additional students per class.
50 school nurses to be fired.
7% of all janitors, bus drivers, and cafeteria workers to be fired.
Termination of assistance for school with a concentration of children living in poverty.
Elimination of Learn and Earn.
Elimination of 350 administrators, principals & vice principals, increasing the workload from 750 to nearly a 1000 students per administrator

From Higher Education:
19% increase in Community College tuition.
8% increase in University tuition.
Continuing education fees will be doubled.
12 million dollars cut from cancer research.

From services to the vulnerable:
20% reduction in our already troubled mental health system.
Closures of rape crisis, abuse, and sexual assault centers across the state.
The victim legal assistance program will be cut, as well as other legal services for the poor.
Elimination of 25 district attorney positions and public defenders.
85 vital positions within the juvenile justice system will be cut including juvenile court counselors.
Cuts health insurance to children, increasing burden on emergency rooms, which will cost society more money.
Reduction in the reimbursement rate for Medicaid. Mecklenburg Hospitals alone will lose 35 million.
Hospice and elderly home care cut by 50% - meaning that we will deny the elderly sick assistance with bathing, meals, and clothes.
Elimination of physical and speech therapy from Medicaid.
Elimination of dental healthcare programs for children.
Cuts to nursing homes assistance, many of those that who take care of our elderly will be fired, those that remain will be paid less.
Cuts to job placement services for those suffering from mental health conditions, increasing homelessness and further dependence on government services.

Additional losses:
Termination of 500 public employees working in transportation.
Millions of dollars in law enforcement costs to be passed to counties already faced with their own budget crisis.
8 prisons to be closed, including one in Union County. This will create overcrowded prisons and many lost jobs.

Other information sources:
Budget proposal for education
http://www.ncleg.net/fiscalresearch/subcommittee_reports/House%20Ed%20Approps%20Subcommittee%20Complete%20Report%20and%20Provisions%202009_06_04.pdf

[pianotech]

I read through this e-mail and have to say that with the exception of law enforcement and roads, I vehemently disagree. Tax increases restrict economic growth and in the long run always end up decreasing tax revenue intake. These spending cuts are hard choices but in the long run they are the right choices. North Carolina is already one of the highest taxed states in the South East. If North Carolina is to remain competitive in the business community we absolutely have to hold the line on taxes or even cut taxes to encourage more growth and attract new business away from other higher taxed states. These spending cuts are a good start and a responsible act to the future growth and sustainability of our state. Law enforcement and roads spending must be increased to sustain the attraction of new private business growth which is the only hope for increasing state tax revenue.

Make the cuts Tricia. We are strong. We will survive and prosper if the state returns it's focus to it's most basic primary jobs of law enforcement and roads.

The only alternative in regard to raising revenue in the short term is for the state to liquidate assets. There are vast expanses of land the state owns which it is not maintaining.

[WonderWoman]

WRONG - WRONG - WRONG!

"Tax increases restrict economic growth and in the long run always end up decreasing tax revenue intake" - this is FALSE!

NO ONE has proposed or even hinted at an across the board tax increase. Taxes should considered being raised on those making over $250,000 and other revenue sources such as sin taxes and luxury taxes should be increased or implemented. This is a reply from Senator Dan Clodfelter on this: "I'm right there with you. As you may have read this week, I am a primary architect of a proposal that would reform the state's tax system in a way that would raise additional revenue to avoid some of the massive cuts but would also reduce tax rates for everyone by eliminating all the swiss cheese of special exemptions and exclusions."

"North Carolina is already one of the highest taxed states in the South East. If North Carolina is to remain competitive in the business community we absolutely have to hold the line on taxes or even cut taxes to encourage more growth and attract new business away from other higher taxed states" - again, FALSE!

I have lived in six states and by far NC has the lowest taxes. Well you get what you pay for - that is why, for example, our public schools were already in distress even without these possible cuts.

"We are strong. We will survive and prosper if the state returns its focus to its most basic primary jobs of law enforcement and roads" - and once again, FALSE!

Speak for yourself and not for those who you apparently care not for or know nothing about. Not every citizen of NC or every geographic area is strong - many are already struggling terribly and any reduction in these BASIC and ESSENTIAL service WILL BE DEVASTATING! How dare the previous poster imply that only law enforcement and roads are the "basic and primary" jobs of the state? How can anyone deny that access to quality and affordable education and healthcare are not basic rights? It is the responsibility of our government to ensure that every person, regardless of demographic, should have access to these basic necessities.

I am deeply saddened and angered by the previous posters comments which I feel are based in selfishness and ignorance. If you lack the decency to care that every citizens has access to proper healthcare and education than you should at least have the intelligence to realize that we ALL pay the price in the long run. A child who does not get an adequate basic education from his/her public school will be impacted for the rest of his/life - their career options and earning potential are decreased and therefore their ability to make the greatest possible contribution to society is diminished - this affects us all. When any person is denied affordable access to healthcare they are forced not only to live a lower quality of life but must use the ER for their care - we all know (or should know) that this costs every tax payer much more in the long run. These are just two examples.

These cuts would degrade our state and set us back years and THIS would put us at a competitive disadvantage with other states, not taxes!

[Troop97Kilgo]

I read through this e-mail and have to say that with the exception of law enforcement and roads, I vehemently disagree. Tax increases restrict economic growth and in the long run always end up decreasing tax revenue intake. These spending cuts are hard choices but in the long run they are the right choices. North Carolina is already one of the highest taxed states in the South East. If North Carolina is to remain competitive in the business community we absolutely have to hold the line on taxes or even cut taxes to encourage more growth and attract new business away from other higher taxed states. These spending cuts are a good start and a responsible act to the future growth and sustainability of our state. Law enforcement and roads spending must be increased to sustain the attraction of new private business growth which is the only hope for increasing state tax revenue.
Make the cuts Tricia. We are strong. We will survive and prosper if the state returns it's focus to it's most basic primary jobs of law enforcement and roads.
The only alternative in regard to raising revenue in the short term is for the state to liquidate assets. There are vast expanses of land the state owns which it is not maintaining.

While I respect the opinion of people trying to be fiscally conservative, because I am, I think there needs to be a realisitc perspective of priorities here. Roads & police are not the only basic priorities of the state, nor should they be. In fact, Education & healthcare are the highest priorities of the state which are basic human needs. Education is the largest single expenditure by the state.
I do not believe that good roads are the primary conisderations of the average person or business attracted to North Carolina. Typically when a family moves, their top priorities are schools, healthcare, and safety. -basically human services. However roads are defintiely secondary for those moving to a new area. Any conversation with Hugh McColl or other CEOs will lament the struggles of their business to attract an educated skilled labor-force. Business leaders constantaly list education as a priority for them and the children of their potential labor-force.
All of that said, If you look at the amount of education & healthcare cuts being proposed it is unprecedented in our state. These are not minor cuts that will trim the fat off of a bloated wasteful government. These cuts are very deep and will severely damage these core services in our state. Yes the vulnerale populations of children and seniors will suffer, but it wont just be the poor people. Everyone will feel these cuts. Public education for all children will suffer quite a bit. For those that struggle financially or have challenges, these services willbe stripped bare. That is unnacceptable. That is not good for the children, for business, for the justice system, or for our future tax burden. If NC is to remain competitive it has to have basic human services, and a healthy and educated workforce.
As far as selling "unmaintained land", that is typically considered "forest". Many natural resources are finite, and many others are hard to replenish. Selling off land to industries that wil deplete those resources is not in the long-term best interest of the state.
The human services that are on the cutting board will require some tax increases. However, from the conversations I have had with those drafting the budget, the increases are not intended to replenish ALL of the funds. There has to be a compromise in order to ensure that these services which will be negatively impacted will still be of acceptable quality.

[pianotech]

Hey WonderWoman. I think we're being duped anyway. They are purposely aiming cuts at the poor, the needy, and children for the purpose of raising taxes so they don't have to cut the really important stuff like raising Black Beard's pirate ship and other comparative luxuries. Indeed they think we are stupid and in fact you are very wrong to assume that any tax on anyone in this state does not ripple out to everyone. Increasing taxes on those who make over 250K is especially worrisome to me as those are key job producing people. When the movers and shakers start shaking and moving out of the state to lower taxed more business friendly states we will have far worse problems and may ACTUALLY need to make draconian cuts to services to the poor, needy, and children instead of cowardly holding them up like political shields.

I'm certainly not being selfish or ignorant on this issue. There are too many examples of wealthy tax payers and job producing business's fleeing New England to come here. History will repeat itself. North Carolina will become they place from which people with the ability to create jobs flee. When goods are not selling in a store you don't inprove sales by raising prices. Likewise when jobs are being lost you don't raise taxes. This is basic classic economics 101.

Unfortunately, when politicians want more money for their frivilous pet projects the threaten old people and children. Welcome to classic North Carolina politics 101.

[WonderWoman]

I am sorry but I don't find anything of substance in what pianotech has said. It is he who is using scare tactics or who perhaps has been the victim of scare tactics and now perpetuates them. We are talking about basic necessities here - period. My husband and I don't earn anywhere near $250,000 - he has taken a pay cut this year and I have reduced hours - and yet despite this I recognize the importance of these services and would even be willing to pay higher taxes myself to ensure that those who have less than we do still have enough.

[Troop97Kilgo]

To clarify what WonderWoman is talking about, the major portion of the tax increase Tricia Cotham has proposed is an increased income tax on those who make $250,000 or more. Acording to Rep. Cotham this would not make up the entire budget shortfall, just minimize the damage. I dont think slashing education, health care, police, transportation, prisons, and DA's is the way to go. Nor do I think it is frivolous spending. The bottom line is there will be cuts. the one's proposed are just too severe to ignore. Esp in east Charlotte, which will be disproportionately affected. We are not talking about everyday funding cuts. These are on a historic level and the sheer magnitude must be factored in

Schools are already suffering here... Do I even need to elaborate on this.
Police - crime - prisons - justice sytem ...Do I even need to elaborate on this.
Healthcare: Considering the median income, there are children who will lose basic care. east Charlote is home to more in Charlotte also has the highest senior population of than any region of the city.
And when we talk about jobs, east Charlotte is home to so many health care workers, police, & teacers due to its affordability. When those jobs go...

When we talk about college tuition going up we are defintely scaring away fortune 500 companies. Nevermind the services those people will need or professionals who want their children to have access to quality education & affordable colleges.
When the economy is bad taxes go up. When taxes go up there is a downstream effect, just as there is when you cut "social" programs. The answer lies somewhere in between. There needs to be some tax increase to make sure the core infrastructure of our state is in place. It will not be, if these cuts are as severe as the ones proposed. 18,000 teachers cut and that's not going to hurt east Charlotte? It will and much more than most areas.

[PACMAN]

McCrory blasts House tax proposal
Charlotte Mayor Pat McCrory this morning ripped a tax proposal by N.C. House Democrats that would raise some income taxes to help close a $4 billion budget shortfall.
The House is considering a $940 million tax package today that would raise the sales tax and income taxes for those earning more than $200,000 a year.
"It's the last thing you need to do during a recession," he said. "The income tax is the most harmful tax to raise because you're only punishing those who are actually working ... This hurts our economic development efforts here in Charlotte, North Carolina ... when there's a cheaper place to live."
McCrory, last year's GOP gubernatorial nominee, said he worries that raising income taxes on the affluent could drive businesses from North Carolina.
Asked how he would deal with the record shortfall, McCrory offered no specifics but referred back to his 2008 campaign.
In October, when forecasters predicted a $2 billion shortfall, McCrory and Democrat Bev Perdue both said they opposed tax hikes and would convene expert panels to identify cuts and efficiencies in state government. Perdue Monday called on the House to include new taxes in its budget.
Tax policy will be part of McCrory's speech Friday at the GOP state convention in Raleigh.

http://campaigntracker.blogspot.com/2009/06/mccrory-blasts-house-tax-proposal.html

[PACMAN]

N.C. House weighs higher taxes
Plan under review would boost the sales tax and increase income taxes on the state's wealthiest.
By Benjamin Niolet and Lynn Bonner
Staff Writers
Posted: Tuesday, Jun. 09, 2009

Lt. Gov. Beverly Perdue, Democratic gubernatorial candidate, speaks during the North Carolina Coalition for Lobbying and Government Reform ethics forum Raleigh, N.C., Tuesday, Sept. 16, 2008. (AP Photo/Gerry Broome)
The state House will consider today a $940 million tax package that would raise the sales tax and increase the income tax on the state's wealthiest residents in an effort to offset deep budget cuts to education and social services.

House Democrats, who control the chamber, met privately for two hours Monday evening debating whether to balance a $4 billion deficit with cuts alone or to include new taxes. The state deficit has grown to nearly 20 percent of the current budget, and erasing the shortfall with cuts alone would set state spending at a level it last adopted in 2006.

The House tax plan will be heard in a key committee this morning. The plan would:
Raise the sales tax by a quarter-cent.
Add warranties, installations, repairs and other services to the sales tax rolls.
Raise the income tax rate from 7.75 percent to 8.25 percent on residents who make between $200,000 and $500,000 a year.
Increase the income tax rate from 7.75 percent to 8.5 percent for residents who earn more than $500,000 a year.
Raise the tax on a pack of cigarettes by 25 cents.
Democrats in the House have been resistant to raising taxes, while Senate Democratic leaders and Gov. Bev Perdue have said the cuts required to avoid new taxes would be crippling to state services such as education.
Perdue issued a statement Monday calling on the House to include new taxes in the budget.
The tax increases would need 61 votes to clear the House.
Democrats would need most of their 68 members to support the taxes, since Republicans are likely to vote “no.”
Rep. Paul Stam, the House minority leader, said the state could roll back spending to 2006 levels without raising taxes.
“I think that we're in a severe recession, and the last thing we should do is have people pay more taxes,” said Stam, an Apex Republican. “It would be hard for me to imagine more than one person [in the Republican caucus] at most voting for a tax increase.”
The new taxes would be used to offset cuts such as a plan to increase the average class size by two students or to cut services to the mentally ill or to reduce payments to Medicaid providers.
“It is a direct relationship between revenue raised and projects restored,” said Rep. Paul Luebke, a Durham Democrat and co-chairman of the committee that will consider the taxes this morning.
After the Senate approved its budget proposal, which was based on a $500 million tax package, the state saw its revenue collections drop even more sharply.
The recession has put people out of work, which means the state collects less in income tax. Consumers are buying fewer items, which cuts into sales tax revenue, and businesses are making less money, which has diminished the state's take in corporate taxes.
The House budget proposals that have been made public include no new taxes, and they slash spending across state government.
Rep. Tricia Cotham, a Charlotte Democrat, said the state cannot avoid budget cuts but also cannot afford to gut essential programs.
“It's our responsibility to protect the most vulnerable people,” Cotham said. “It's not good policy to punish and devastate the most vulnerable people, and I'm committed to protecting them.”
Republicans in the House and Senate have questioned whether the House Democrats were trying to scare up support for a tax increase.
The House plans to vote on the full budget proposal this week.
Whatever plan the House adopts, its differences with the Senate proposal would have to be negotiated before a final budget is approved.

http://www.charlotteobserver.com/politics/story/770880.html

[pianotech]

Hey Troop97Kilgo,
Do you realize that this tax increase will place North Carolina as the 7th highest for the top two levels in state income tax and 2nd highest in the nation for sales tax rates? Corporate exectutives consider these things seriously when deciding whether to locate operations in our state. We might as well call this tax increase the "We'll never attract any more corporate business to North Carolina tax".

The budget does not in any way shape or form have to be cut on the backs of the poor, the needy, or the children. These are but the sick twisted tactics being used by our cowardly immoral and highly corrupt political hacks we've elected. There are plenty of other things that can and should be cut that are not on the list. To raise our taxes to national disgrace is to accerate our downward spiral for a very temporary grasp on the staus quo. Holding children up as poltical shields to preserve non essential spending as is being done here is as low a tactic as I have ever seen. Dispicable!

[Troop97Kilgo]

Regardless of where you get your stats, most of the stats on tax rates by state are using 2008 data, as opposed to 2010 data which is based on projected revenue and expenditures. So one can't simply take a sales tax rate from 2008, add the proposed increase in a particular tax rate and then deduce where North Carolina will fall on a scale of 50 states. The reason is that North Carolina clearly isn't the only state feeling hard times. More likely than not most states will see a reduction in revenue, and will make up some of that revenue through tax increases somewhere. That means we can't compare where NC falls until all that is hashed out. Another good indicator of taxes is the tax burden, which takes into account the overall tax a person would expect to pay in a state and then rates the states based on the overall tax.
As far as corruption I assume it exists in all states, and have not found a way to compare them.
When it was all said & done, the House proposed a budget with zero tax increase that slashed spending to prepare for an estimated $4 billion shortfall. There are cuts all over that budget. not just to the segments Tricia Cotham found unnacceptable. The items she found unacceptable were to programs that she felt cuts were so drastic that a minimum standard of quality could not be met for basic human services. The proposal for increased revenue through taxes is something like $980 million. About 1/4 of the shortfall. So there is defintiely a reduction in spending planned from 2009, but hopefully enough to save basic human services.
I think North Carolina has done a great job of attracting business. We currently have several fortune 500 companies moving operations to NC even in this economy. Businesses struggle to find regions with an educated workforce and the services families need to stick with their companies. Businesses take into all of those factors as well as taxes when moving. I know that NC is doing a good job of staying competitive with our neighbors. NC is well known for our abundance of affordable public Universities & CPCC has been one of the best community colleges in the country for decades. This is a great asset for NC and it would not be wise to lose that edge. That said as is typical during recessions we will proably see some tax increases. And considering having an infrastructure that is sound and logical, I think a tax increase will have to be considered.

[PACMAN]

As of today June 10, 2009, the proposed revenue package has been reduced from $980 million to roughly $784 million by removing all the sin taxes on beer, wine, cigarettes, etc. Sin taxes are are taxes that the general public finds more acceptable than the increased income tax of people who make over $200,000. Apparently most of the democrats & republicans in the House opted for keeping the tax increases on inome of the rich over sin taxes. I find it quite confusing actually, particularly from the republican aspect. (That's not intended to start partisan bickering - simply seems unusual that republicans would opt for inome tax increase over sin taxes. Simply trying to understand the reasoning)