A state budget crisis has a new governor hamstrung, legislators flummoxed, state agencies fearful of reductions, taxpayers fretting over future tax increases, and state lottery opponents afraid they’ll lose their issue. Changing Course IV, a publication of the John Locke Foundation, proposes a biennial budget for North Carolina that would calm the fears of the taxpayers and lottery opponents. It would exacerbate those of the state agencies, however.
Compared with Gov. Mike Easley’s proposed budget for the next two fiscal years, the Locke budget would save the state nearly a billion dollars in Fiscal Year 2001-02 and over a billion dollars in FY 2002-03.
In suggesting the budget savings, the Locke Foundation cites the N.C. Constitution. In its “Declaration of Rights,” the Constitution grants that, along with the rights of “life, liberty and the pursuit of happiness,” all people are “endowed by their creator with the right to the enjoyment of the fruits of their labor.”
“It is incumbent upon North Carolina officials, when formulating tax and budget policies, to see to it that this right is preserved,” the report states. “The state is obligated to perform its basic functions efficiently while leaving to the people as much of the ‘fruits of their labor’ as possible to use for their own ‘enjoyment.'”
For higher education, the Locke Foundation’s budget proposal would save $96.1 million the first year and $100.7 million the second in the UNC base (continuation) budget and $39.9 million (first year) and $94.4 million (second) in the expansion budget for UNC. The Locke’s budget reductions would exceed the legislature’s request to UNC to cut $125 million without cutting instruction.
Also, the reductions outlined in Changing Course IV would save $14.3 million the first year and $22.2 million the second in the base budget for community colleges, as well as $9.8 million (first year) and $29.8 (second) in the expansion budget for community colleges.
The Locke Foundation also proposed delaying the issue of the higher education bonds, which would save the state $64.3 million in FY 2001-02 and $98 million in FY 2002-03.
Dr. Roy Cordato, co-author of the proposed budget, said it would end a recent trend in government overexpansion.
“Our alternative is based on the premise, supported by state spending trends over the last decade, that our budget problems are not caused by stingy taxpayers but by a government that has been unwilling to accept any constraints” Cordato said. “North Carolina citizens face the highest tax burden in the southeast. Yet Governor Easley, as evidenced by his proposals for a state lottery and to ‘close tax loopholes,’ clearly believes that more of our citizens income and wealth needs to be transferred to Raleigh.”