North Carolina Democrats unveil budget priorities
(The Center Square) – Small business recovery, better state roads and criminal justice reform are among the top spending priorities for North Carolina legislative Democrats.
Members of the Senate Democratic Caucus made allocation requests to Republican budget writers this week that call for using federal and state funds to support businesses.
“I believe that Republicans and Democrats, alike, have the same goal in mind this session,” said Senate Minority Leader Dan Blue, D-Wake. “We want to see a budget come to the floor that all 50 members can support and that the governor will sign.”
The General Assembly must create a state spending plan for the next two fiscal years during this legislative session. Each fiscal year starts July 1 and ends June 30 the following calendar year. Lawmakers must consider changes to recurring funding and one-time allocations. Appropriations committees may start budget deliberations as early as next week.
Republicans hold the majority in both chambers and leadership positions on the appropriations committees. Democrats said business stimulus funding and restoring the state’s Earned Income Tax Credit could power drive the state’s economic recovery.
Earned income tax credits can be used cut the amount of taxes someone owes and could result in a tax refund increase. The amount of the credit varies based on how much a person makes and the number of dependents.
State earned income tax credits can be coupled with the federal credit for low-income taxpayers to reduce their state income tax liability, according to the Internal Revenue Service.
North Carolina implemented an earned income tax credit in 2007 at 3.5% of the federal credit and increased the rate to 5% in 2008. It was reduced to 4.5% in tax year 2013 before being eliminated in 2014. Critics of earned-income credits believe they can increase tax filing errors.
Senate Democrats want to spend $400 million in American Rescue Plan Act funds to help small businesses recover from economic loss from the COVID-19 pandemic. Another $20 million should be injected into a program for minority-owned businesses, they said.
Democrats also have asked Republicans to set aside $8 million to help farmers improve water quality. They want Republicans to prioritize dam maintenance and landslide hazard mapping in the state’s spending plan as well.
“By making these investments and others, we will ensure that every North Carolinian has clean and safe water and air, along with healthy land that is central to our agricultural economy,” said Sen. Mike Woodard, D-Durham.
Democrats also recommended spending $31 million on general road maintenance and $5.6 million on bridge repairs.
North Carolina’s highway system was ranked 14th in the nation for its cost-effectiveness and condition in the Reason Foundation’s 25th Annual Highway Report.
North Carolina has the largest state-owned highway in the nation. The state manages most of its more than 80,000 miles of roadway, except for subdivisions and other local roads.
Senate Democrats said they support Republicans and Gov. Roy Cooper’s plans to use federal aid for broadband expansion and stimulus grants for parents. They also want to add 1,500 new seats to the state’s pre-K education program and secure higher pay for teachers and corrections officers. Their proposed plan also could curtail public safety costs by investing $11.6 million in reentry programs to reduce recidivism.
Disclaimer: This content is distributed by The Center Square
