Tuesday, May 13, 2008

News from NC Justice Center

NC Justice Center
PO Box 28068
224 S. Dawson St.
Raleigh, NC 27611
www.ncjustice.org




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May 13, 2008 – In this edition:
Legislative Update
· Gov's budget includes teacher pay raises, regressive tax increases
· Help families and boost the economy with an EITC increase
· Improving workplace safety becomes a priority

In the News
· Trying to inject common sense into immigrants and education debate
· Court rules with consumers over payday lenders
· Health care for children threatened by Dole bill
· New Farm Bill increases funding for Food Stamps
· US House seeks to address foreclosure crisis

STATE BUDGET: Teacher Pay Raise, Regressive Tax Increases
On Monday, Governor Easley released his proposed budget for the upcoming fiscal year, which will begin July 1. It includes a 7% average pay raise for teachers and another 1.5% increase plus a $1,000 bonus for state employees. Governor Easley’s proposal includes funding for several initiatives that support low-income working families, including funds to keep children’s health insurance enrollment open, for child-care subsidies for low-income working families, and to help families facing foreclosure. Noticeably absent from the governor’s plan is funding to address the state’s growing affordable housing shortage.
The governor’s plan relies on $150 million raised by increasing cigarette and alcohol taxes. While it’s good news that the governor recognizes the need to raise revenues in order to fund important investments, it’s unfortunate that low-income taxpayers are being asked to pay more than their fair share of the bill. Just last year, the governor and the General Assembly acted to eliminate the state’s top income tax bracket, which was paid exclusively by the state’s wealthiest taxpayers – a tax that, if reinstated, would raise approximately the same amount of revenue as the two regressive tax increases included in the Governor’s proposed budget.
The Justice Center’s Budget and Tax Center will have a full analysis of Governor Easley’s budget proposal in next week’s newsletter.
Ø NC Policy Watch: Fitzsimon File – The Budget Debate Begins
Ø Office of the Governor: The North Carolina State Budget – Recommended Adjustments
Ø Raleigh News & Observer: Easley Proposes $21.5 Billion Budget
Ø TAKE ACTION: People of Color Legislative Day - May 28

TOP
SUPPORTING WORKERS: The Argument for an EITC Increase
North Carolina may not have much money to work with this year, but it makes sense to target any available dollars at the state’s working families, who are most hard-hit by the weakening economy and the rising prices of food, gas and health care.
Increasing the state Earned Income Tax Credit (EITC) would provide a much-needed economic stimulus for these families and North Carolina’s economy. In 2007, state lawmakers adopted a refundable version of the federal EITC worth 3.5% of the federal credit. This year, an estimated 845,000 NC households will be eligible for the new credit. As it currently stands, around $48 million will circulate to households in all 100 counties, and the average household benefit will be $56.
Almost all of the money from an increased state EITC would flow directly to North Carolina’s cities and towns as the families who benefit spend the additional income on basic necessities in their local economies. Increasing North Carolina’s state EITC is a smart, targeted investment that will put more money into the hands of low-income working families who need the most help.
Ø BTC Brief: A Boost for Families Who Need It the Most
Ø Charlotte Observer: Who Pays NC Taxes?
TOP

WORKER SAFETY: Easley Proposes Reforms, New Funding
Kudos to Governor Easley for his aggressive response to the recent Charlotte Observer series on the unsafe working conditions poultry workers often endure. He’s calling for the state to hire occupational health nurses and industrial hygienists to visit poultry plants, examine workers and ensure they are being treated properly. He also wants the state to provide funds so the Department of Labor can fill inspector jobs and other positions now frozen due to federal funding cuts. In addition, the governor is calling for legislation that will require large poultry plants to keep licensed nurses or physician’s assistants on site and to keep better records of workplace injuries.
Ø Charlotte Observer: Easley to Seek Poultry Changes
TOP

IMMIGRANTS’ RIGHTS: Standing Up for Fairness and Logic
Last week, Governor Easley, the Raleigh News & Observer, and the Charlotte Observer all tried to inject a little common sense into the debate over undocumented immigrants and higher education. Both papers pointed out that very few undocumented students attend NC’s universities or community colleges, and that those who do must pay out-of-state tuition, which more than covers the costs of their education.
What North Carolina should be doing is looking at ways to expand access to higher education. We know what makes good neighbors – a sense that we’re all invested in the well-being of the state and that we have opportunities to work our way toward better lives. That’s why closing doors to hard-working young people hurts us all.
Ø TAKE ACTION – Join El Pueblo and the Adelante Education Coalition for their Access to Higher Education Lobby Day – Tomorrow at the State Legislature!
Ø Charlotte Observer: Editorial – Academic Question
Ø Raleigh News & Observer: Editorial – Class and Borders
Ø Raleigh News & Observer: Easley Supports College for Illegal Immigrants
TOP

PAYDAY LENDING: Court of Appeals Sides with Borrowers
For years, the Justice Center has been working to get money back for the thousands of North Carolinians who were charged illegally high fees by payday lenders. Last week, this effort got new momentum with a ruling from the state Court of Appeals.
Back in 2004, Justice Center attorneys filed five class-action lawsuits on behalf of consumers. One of the payday industry’s primary arguments against the suits was that each contract signed by consumers included a prohibition against class-action suits.
Then earlier this year, the state Supreme Court ruled that such prohibitions are unconscionable in certain circumstances. The appeals court ruled the Justice Center’s suits must now go back to the trial court to see if these cases fall under those circumstances. We’ll keep you posted.
Ø Progressive Pulse: Another Setback for Predatory "Payday" Lenders
TOP

HEALTH CARE: Dole's Plan Worse for NC's Children
A children's health bill introduced by Senator Elizabeth Dole would actually roll back coverage for children in North Carolina. It doesn't provide enough money to cover the children currently enrolled in NC's Health Choice program, and it would block the new NC Kids' Care program, which is a discount child health insurance plan for working families.
Last year, Dole voted against child health coverage twice – the second time against a compromise bill that concentrated most of the new money coming to states on lower-income children.
Ø Progressive Pulse: Dole Scrambles for Political Cover on Health Insurance for Children
TOP
FOOD STAMPS: NC Families Could Get More Money for Food
The 2008 Farm Bill includes numerous improvements that will help low-income Americans put food on the table. It provides more than $10 billion over ten years in increases to nutrition programs. That includes $7.8 billion for the Food Stamp Program, $1.26 billion for the Emergency Food Assistance Program, and $1 billion for programs that provide free fruit and vegetables to kids in schools with high shares of low-income families.
This bill will also raise and index for inflation the standard deduction and minimum benefit of the Food Stamp Program. That means for the first time the purchasing power for Food Stamps will keep up with inflation year to year.
All in all, these changes will bring $14 million to North Carolina in 2009 and $242 million over the ten-year period. However, President Bush has threatened to veto the bill.
Ø Center on Budget and Policy Priorities: Farm Bill Conference Agreement Contains Significant Domestic Nutrition Improvements
Ø New York Times: Congress Agrees on Farm Bill as Bush Veto is Threatened
Ø Asheville Citizen-Times: Report – A Third of NC Families Struggling to Pay Bills
Ø Coalition on Human Needs: Vote on Passage of the Farm Bill Expected This Week
TOP

FORECLOSURE: Bills Could Help Families and Communities
President Bush is also threatening to veto two housing bills designed to help homeowners and communities impacted by the foreclosure crisis. One bill would let the Federal Housing Administration insure up to $300 billion in loans over four years to refinance the mortgages of debt-strapped homeowners. The Congressional Budget Office estimates the bill would generate about 500,000 refinanced mortgages over the next five years and cost roughly $2.7 billion. The second bill would create a $15 billion loan and grant program so states can buy and spruce up foreclosed properties.
Both bills are better than the Senate’s so-called "Foreclosure Prevention Act," which would do little to help struggling homeowners. There's much more that could be done to help struggling homeowners and communities, but that would require overcoming the strong political muscle of the financial sector.
Ø National Community Reinvestment Coalition: Legislative Analysis
Ø New York Times: Defying Bush, House Passes Broad Housing Bill



Catch NC Policy Watch’s radio show News & Views with Chris Fitzsimon each Sunday at 7:30 a.m. on WRAL-FM (101.5) and WCMC-FM (99.9), or find a station near you.

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