The Civitas Institute believes discussions about state government spending must begin with an examination of priorities. Unless government takes every penny a citizen earns, there will always be a limited amount of taxes available for state government. Legislators are charged with making wise decisions in prioritizing the state’s needs and allocating money in the most efficient and effective ways.
Everyone agrees that education, health care for the sick, disabled and elderly, public safety, and good roads should be at the top of the state’s priority list and should be funded.
However, as lower priorities are evaluated, available revenue may not exist for these programs. That’s when legislators need to evaluate low priority programs and ask the question: Are these programs important enough for taxes to be raised to fund them?
Current budgeting practices are backwards. It doesn’t make good management or fiscal sense to start allocating funds for low priority items, run out of money and then claim taxes must be raised to provide for top priority items like education, health care, public safety and roads.
The highest priority functions of state government should be funded first, then, low priority programs evaluated on a case-by-case basis with consideration given on whether or not taxes should be raised to fund them.
Some people say the North Carolina economy has not recovered and additional taxes are needed to fund vital state programs. Others say there is sufficient revenue in the $1 billion surplus, so there is no need for new taxes. In a recent statewide Civitas poll, 76% of respondents said there was no need for new taxes.
Yet, included in this year’s budget are items that make a sane person wonder: Are these programs worth raising taxes to fund? Where should the following items rank on the state’s priority list?
Should taxes be raised for …
• Promotional funds for an entertainment complex in Roanoke Rapids developed by Randy Parton, brother of country music star Dolly Parton — $750,000?
NOTE: Funding to promote tourism for the entire state totals $500,000.
Should taxes be raised for …
• The William and Ida Friday Institute for Educational Innovation — $3,800,000?
NOTE: This is a duplication of the Friday Center in Chapel Hill, being built at N.C. State with private donations, now turning to taxpayers for staff, operations and maintenance.
Should taxes be raised for …
• The James B. Hunt, Jr. Institute for Educational Leadership and Policy — $1,000,000?
NOTE: The mission is to “engage governors and other leaders in strategic efforts to advance and sustain state-level education reform.” The Hunt Institute works with only four states — Kansas, Pennsylvania, Wisconsin and Virginia — all with Democrat governors.
Should taxes be raised for …
• The Dean Smith Center annual operating budget — $1,076,494?
A recent statewide Civitas poll found that 72% of respondents are not willing to raise taxes to fund foundations like the Friday Center, Hunt Institute and the Dean Dome.
Should taxes be raised for …
• A second Policy Development Analyst for the Lieutenant Governor’s office when the Lieutenant Governor doesn’t set policy — $104,772?
NOTE: It is understood the Lieutenant Governor might be running for Governor in 2008.
Should taxes be raised for …
• A vehicle research center for automotive testing services that includes a 2.5-mile closed-loop test track, laboratories, garages and office space — $7,500,000?
NOTE: State taxpayers would provide start-up costs. Rep. Michael Wray (D-Northhampton) owns land through which an access road to the center would be built.
Should taxes be raised for …
• Public funding for financially unstable major airlines instead of the funds going to roads and maintenance, as was intended — $350,000?
Should taxes be raised for …
• DOT signs for Roanoke Island tourist attractions — Unlimited funds?
NOTE: Anyone who has visited Roanoke Island and the Outer Banks knows there are signs that clearly mark such attractions as the Lost Colony, Elizabeth II, NC Aquarium and the Elizabethan Gardens.
Should taxes be raised for …
• The CIAA annual tournament promotion — $500,000?
NOTE: The CIAA consists of 12 HBCU schools, one third are not North Carolina schools. In 2004, it was the third highest attended conference basketball tournament in the nation (behind the ACC and the SEC), drawing more than 104,000 fans. The tournament receives extensive coverage on all ESPN networks. The tournament moves from Raleigh (where it received no promotion money) to Charlotte for the next three years. Surely Jim Black would not have used his clout to lure the tourney to his hometown.
Should taxes be raised for …
• A slush fund for House & Senate leadership to reward their supporters — $30,000,000?
NOTE: The fund was originally intended as a DOT reserve fund set aside for emergency road safety projects before the leadership changed it into a slush fund.
In a recent statewide Civitas poll, 74% of the respondents would rather eliminate this kind of slush fund than pay additional taxes, especially an extra tax on candy.
Should taxes be raised for …
• The Global Transpark in Kinston — $1,600,000?
NOTE: Since 1993, North Carolina has spent $52 million on the Global Transpark, that by official job count, employs 200 people. Other reports put the number closer to 45.
In a recent statewide Civitas poll, 85% of the respondents oppose raising taxes to support the Global Transpark.
Should taxes be raised for…
• Awarding funds to corporations to encourage them to locate plants in North Carolina — $48,860,000?
NOTE: The General Assembly recently passed a five-year extension to the William Lee Act and the Job Development Investment Grant.
In a recent statewide Civitas poll, 62% of the respondents do not favor raising taxes for corporate give-aways.
Should taxes be raised for …
• Unlimited funds for services to non-English speaking students — Unlimited funds?
NOTE: North Carolina provides extra spending for students with special needs, but the funding is limited. AtRisk/Alternative Schools receive $200,000, children with disabilities get an extra $2,838.39, and spending for academically gifted students is set at $926.55 per child. North Carolina spends $4,775 for a child in K-3 with no special needs. However, unlimited funds are available for non-English speaking students. Where does that leave other educational priorities?
As budget discussions continue and excuses for raising taxes by more than $1 billion are advanced, the Civitas Institute will continue to examine priorities in government spending, and will be asking the question: Should taxes be raised for …?
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