Budget Raises Taxes During Recession and Cuts Per Pupil Education Funding
Raleigh – Governor Bev Perdue has consistently pledged to North Carolina citizens she will not sign a budget that raises taxes on working people or cuts funding for education. The budget passed yesterday by the General Assembly does both.
As a candidate and as governor, Governor Perdue has solemnly promised she would not support raising taxes on working families during a recession. The budget places an increase in the regressive state sales tax squarely on the backs of all citizens.
Governor Perdue pledged as a candidate, “I don’t believe that you can raise taxes in an economy with folks struggling the way they are.” (News and Observer 10/23/08). The budget increases the state sales tax to 5.75 percent from 4.75 percent – an increase of 20 percent. The total tax increase in this budget is almost $1 billion this year and $1.3 billion next year.
Governor Perdue earnestly promised that the budget would increase funding for education. The Governor stated in her State of the State Address, “And yes, even in these tough times…we will increase per-pupil spending in our public schools.” She would clearly renege if she signs the budget currently on her desk. Under the bill adopted by the legislature, per pupil spending by the state is cut by 4 percent from $5,523 to $5,090. (See calculation below.)
“The Governor promised our citizens she would never sign a budget that raises taxes on working families during a recession and cuts per pupil spending,” said Rep. Paul Stam (R-Wake). “Her signature on this budget would break both of these of promises. I call on Governor Perdue to reject this budget and insist the legislature adopt a fiscally responsible bill consistent with her pledges to the people of North Carolina.”
|
Public Schools FY 2009-10 Per-Pupil General Fund Funding Comparison |
|||||||
| Option 1: 08-09 Authorized GF vs 09-10 Proposed GF | |||||||
|
2008-09 Authorized Budget |
2009-10 Budgeted General Fund |
||||||
| K12 |
$8,355,945,293 |
$7,456,261,240 |
|||||
| ADM |
1,476,566 |
1,464,914 |
|||||
| $/ADM |
$5,659 |
$5,090 |
|||||
| Option 2: 08-09 Expenditures vs 09-10 Proposed GF, plus Federal Funds
(THE DEMOCRATS’ BUDGET TALKING POINTS) |
|||||||
|
2008-09 Adjusted Budget |
2009-10 Budgeted General Fund |
2009-10 ESF* |
2009-10 IDEA & Title I** |
2009-10 State + Federal |
|||
| K12 |
$8,154,545,293 |
$7,456,261,240 |
$379,668,352 |
$333,578,650 |
$8,169,508,242 |
||
| ADM |
1,476,566 |
1,464,914 |
1,464,914 |
||||
| $/ADM |
$5,523 |
$5,090 |
$5,577 |
||||
The Real Per Pupil Comparison
$8,169,508,242
– 333,578,650**
– 60,000,000***
$7,776,000,000 ADM÷1,464,914 = $/ADM $5,308
Decrease of $215/student or a 4 percent DECREASE
* replaces state $
** does not replace state $
*** diverted from public schools – corporate income tax Availability Line 35, Sec. 2.2(f) of the Conference Report
