Column for May 15, 2008

The new state budget sounds good...or does it?

I was reading with great interest about the proposed budget for the State of North Carolina. Governor Easley recently announced the new state budget. Truthfully, if the figures that I have read are accurate, there are some things I like to see in the budget...at least on the surface. Dig a little deeper and you will see the fallacy of the claims being made.

The first thing is that we as a state are looking at proposed surplus a $152 million. Based upon past performance, I wonder how long it will be before our state legislators spend that surplus, just as they have every other one. Instead of applying that surplus towards public debt or other proposed public funding projects, several huge surpluses, some over one billion dollars, have been spent on pork barrel projects or other frivolous spending sprees.

Governor Easley is playing with figures to claim to be providing a pay increase for teachers in North Carolina. Each year we hear about raising the pay of NC teachers to the national average. Here in NC, the average teacher pay is about 6.9% behind the national average. It is an annual mantra we hear in NC, that we must raise the pay of our teachers to match the national average.

Sorry, but by the very definition of an average, there are some higher, some are lower. NC happens to be on the lower side. So what? Teachers, though they often have a difficult and valuable job, only work some nine months out of the year. I don't get three months off every year, nor do the majority of Americans.

Next, the North Carolina average salary takes into account counties such as Martin, Bertie, and other small, poor, rural areas. Obviously, pay in these areas will be lower than say in Charlotte or Raleigh. That just makes sense. To use rural areas with comparatively few students to argue that all teachers should get an increase based upon an average is no different than comparing states like Arkansas against New York for standards of living and pay to form the national average.

The 4% average pay increase proposed for state employees is really a misnomer. It is a numbers ploy. Basically, the 4% is really only a 1.5% increase plus a $1000 bonus. The numbers game is that this should average out to almost 4% for many employees. Again, it is a numbers game and is being falsely represented. Many employees will earn higher, many lower. Ergo, the claim is specious at best.

There are a couple of tax increases set in this budget. What is really onerous about these tax increases is that the proposed budget takes into account the idea that the proposed tax increases will be passed. If the legislature deems it inappropriate to increase taxes, then the proposed budget surplus is moot.

I am absolutely no fan of tobacco use. I know that this region is "tobacco country". I just find there are few things in life more disgusting than cigarette smoking. As much as I find smoking offensive and stupid, I find the concept of freedom something to be protected. Ergo, I am not one to eliminate any and all smoking, much less heavily tax tobacco products. Yet higher taxes on tobacco is exactly what is proposed by the Governor.

The State of North Carolina is often hypocritical in its stances. First, it promotes agriculture here in the state. Farming tobacco is a part of said agriculture. While supporting farmers, the state is at the same time discouraging the use of the very product raised in North Carolina. Further taxation is effectively a further deterrent of consumption. Each pack of cigarettes sold in North Carolina currently nets the state 35 cents in taxes. The proposal is to take that total to 55 cents per pack. The increased taxes on tobacco products will allegedly fund pay increases for school teachers and administrators. When you tax something, you discourage its consumption or often change behavior. Thus, I am dubious as to the validity of this proposal.

On the surface the claim of a $396 million cut in the general fund is a great thing. However, the overall budget is going up by 870 billion dollars. If spending truly is to be cut, then the budget would not increase, especially in an alleged economic slow down. The government is increasing its staffing and budget, yet the economy is supposedly slowing down. Why would the Governor grow the size of bureaucracy when he should be shrinking it?

Another thing that bothers me is that the state is increasing the budget to the UNC college system by $34.6 million. Yet it is Governor Easley himself that is causing the increase in costs to the state collegiate system. It is Governor Easley who is supporting the idea of allowing illegal aliens to attend our college system. This costs the taxpayers money, just as aliens do in our primary education system. We, the people are subsidizing their education, and these costs will only go up. Instead of looking to educate those who do not even belong in this country to begin with, we could be trimming our budget and/or opening such educational slots to legal citizens.

It would seem to me that if we will in deed have a budget surplus, just as I do when I have one, that some bills would be paid off and my cash flow output would be lessened to a degree. Then again, if I spent my money the way the State of North Carolina does, I would spend that surplus on things I do not need and go further into debt for things I should not buy. I would end up bankrupt whereas the state will tax and borrow more money to meet its shortfalls and create false surpluses.

Don't buy the budget claims on the surface level. Read a little bit and do not be fooled by the rhetoric.