This update comes from our friends at the NC Justice Center *Blog Editor Note*
GOV’S BUDGET: BTC Analysis Shows How Easley Pays for It
Analysis by the NC Budget & Tax Center explains how Governor Easley found the money to pay for his spending priorities in his recently released budget proposal.
The proposal includes nearly $400 million in spending reductions. For example, Governor Easley cancels a scheduled increase in reimbursement rates for Medicaid health-care providers – a cut that may be difficult to swallow given rising health-care costs. He also gets rid of plans to cover inflationary cost increases for items like public-school textbooks and supplies. The governor uses the available money to pay for teacher and state-employee pay raises and to shore up his signature education initiatives.
This will likely set up a contentious process as the budget moves through the General Assembly. Legislators will have their own priorities this election year, and there isn’t enough money available to make everyone happy. Stay tuned to NC Justice News for updates of the budget process.
Ø BTC Reports: The Governor’s Proposed Budget – Revenue Slowdown Forces Difficult Choices
Ø Asheville Citizen-Times: Editorial -- Tweaks Needed, but Easley's Budget Priorities Sensible
Ø Fayetteville Observer: Accounting -- The Debate over Dollars is not Substitute for Funding Mental Health
Ø News 14: Sin Taxes Becoming Popular Proposals
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HOUSING: Budget Should Prioritize Housing Issues
The governor’s budget includes a small increase in funding for foreclosure prevention counselors and the same level of funding for the Home Protection Pilot Program, but more needs to be done. It does not include any funding increase for legal service providers who defend homeowners against foreclosure, nor does it increase funding for the Housing Trust Fund (HTF), which provides financing for the construction and rehabilitation of affordable housing.
As the nation faces a foreclosure crisis and growing numbers of families have trouble finding affordable housing, it would make sense for the state to put resources into both foreclosure prevention and the HTF. Homeowners need help from non-profit counselors and legal service providers. The Home Protection Pilot Program, which helps laid off workers avoid foreclosure, is also essential and should be made available statewide. In addition, putting more money into the HTF would not just increase the supply of affordable housing; it would also create jobs and give struggling parts of the state an economic boost.
Ø TAKE ACTION – Let your state legislators know they should make stopping foreclosures and creating affordable housing priorities in the budget
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EDUCATION: Funding Committee Makes Recommendations
The Joint Legislative Study Committee on Public School Funding Formulas met last week to finalize proposed legislation for the 2008 Session. Draft bills include legislation that will rename the Low-Wealth Supplemental Fund to the County Baseline Assistance Allotment, and another bill to allocate $3 million to increase funding for identifying and educating academically gifted students.
Most importantly, the committee plans to submit legislation to create a long-term study of the state's numerous public school funding formulas. The study committee already has the funds necessary to complete the study. These formulas provide money to school based on myriad criteria and are in desperate need of being updated and simplified.
Ø BTC Reports: What Does a Sound, Basic Education Cost? It is Time to Find Out
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TRANSPORTATION: Committee Heads Down the Same Old Road
The General Assembly’s 21st Century Transportation Committee is recommending that the state issue a bond for up to $1.75 billion for transportation and use almost all of that money to build new highways. But most North Carolinians would benefit much more if the state focused its transportation dollars on improving and repairing existing roads and bridges.
The American Society of Engineers gave North Carolina roads a “D,” and this disrepair costs North Carolina drivers an estimated $1.7 billion a year in vehicle repairs and operating costs. In addition, North Carolina’s bridges rank as the 11th worst in the United States, according to the American Automobile Association. Focusing on new construction instead of maintenance is what got North Carolina into this situation in the first place.
Ø Progressive Pulse: Confusions out of the 21st Century
Ø Justice Center: At the Crossroads -- Recommendations for the Future of Transportation in North Carolina
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WORKFORCE DEVELOPMENT: Worker Shortage Looming
A new report shows boosting the resources of the NC’s community colleges will be essential to address a coming workers shortage. The NC Center for Public Policy Research finds community colleges will have to produce 19,000 more graduates each year to fill the demand for labor over the coming decade. That’s a 75% increase over the current graduation numbers.
Ø NC Center for Public Policy Research: Community Colleges are Key to Addressing Transition In State’s Economy, says Center
Ø Raleigh News & Observer: Worker Shortage Predicted
The report says the state should expand educational opportunities for the growing population of immigrants – both documented and undocumented – in order to fill this need. Coincidentally, the report came out the same week NC’s community colleges closed the doors to undocumented immigrants. System President Scott Ralls says the State Board of Community Colleges changed its open-door policy because the Attorney General’s Office told them they had to. However, Ralls said the colleges would happily reopen their doors to undocumented immigrants if the advice changes, because, “I believe that broadly available education has more social benefit than social cost.” Here, here, Dr. Ralls.
Ø Raleigh News & Observer: Colleges Await More Advice on Illegals
Ø Raleigh News & Observer: Point of View – Misinterpreting ‘Public Benefits’
Ø Asheville Citizen-Times: Editorial – Decision Unfairly Penalizes Illegal Immigrants’ Children
Ø Raleigh News & Observer: Editorial – A Chance Denied
Ø Charlotte Observer: For the Record – Don’t Deny Them Education
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WORKERS RIGHTS: Unionization Increases Wages
Unionization significantly boosts the wages of workers across the income spectrum, with low-wage workers seeing the greatest benefit, according to a report from the Center for Economic and Policy Research. The report, The Union Advantage for Low-Wage Workers, shows union membership in North Carolina boosted the wages of low- to middle-income workers by between 11% and 14% from 2003 to 2007. Unionization raises the wages of the typical low-wage worker by 20.7% nationally.
Unionization increases workers’ bargaining power in the labor market and helps to restore the balance of power in the employer-employee relationship. State lawmakers should remove the barriers to unionization that exist in North Carolina, and the first step must be the repeal of the law that prohibits public-sector workers from engaging in collective bargaining.
Ø NC State AFL-CIO: Unionization Increases Pay of Low-Wage Workers
Ø Center for Economic and Policy Research: The Union Wage Advantage for Low-Wage Workers
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EVENTS: People of Color Day, Crucial Conversation, and Mike Farrell
Three important events are coming up this week and next. The NC NAACP and the NC Association of Community Development Corporations are holding the People of Color Justice and Unity Legislative Day at the Legislative Building on May 28.
Ø NC Policy Watch: Calendar Event – People of Color Justice and Unity Legislative Day
NC Policy Watch and Common Cause North Carolina are holding a Crucial Conversation luncheon on “Big Money in Local Politics.” The discussion will look at why it cost so much to run in city council and mayoral races and ways North Carolina can make local politics affordable.
Ø NC Policy Watch: Crucial Conversation – Big Money in Local Politics
The North Carolina Justice Center welcomes Mike Farrell – AKA BJ Hunnicutt from M*A*S*H – for a reading of his book, Just Call Me Mike: A Journey to Actor and Activist. Join us Friday, May 23 at 7 p.m. at Quail Ridge Books & Music.
Ø Quail Ridge Books: Mike Farrell Book Signing
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