Governor Perdue and the ruling Democratic majority in Raleigh were to be facing another budget crisis this year. The question was how they would handle it. Last year, we saw some serious tax increases and limited cuts.
But 2010 is an election year. So Governor Perdue came through with a budget that does not increase taxes as she did last year. This is a classic North Carolina Democrat move-- increase taxes during off years, hold them constant during an election year. There are indications that the state legislature will go along with her, for the most part.
She is, however, increasing vehicle registration fees, which is the equivalent of a tax increase.
But we are already seeing some reaction. Some might question the wisdom of across-the-board cuts. It would seem more wise to select for cuts those programs and expenditures of lower priority.
Mitch Kokai points out that stimulus funding is being used to pay recurring expenses. Medicaid is left relatively untouched. Some reports suggest education cuts; but one suggests education was being protected from cuts compared with other agencies.
Brian Balfour says that actual expenditures according to the new budget would actually be increasing. He describes how Perdue, who is touting cuts this year, dodged the question as to why they were not delivered last year when taxes were increased.
It appears, therefore, that Perdue's new budget does not address the fundamental structural problems we have in North Carolina-- overtaxing and overspending-- that are driving away new jobs. It is a raw political document that tries to preserve as much spending as possible while avoiding the appearance of a tax increase in an election year.
Vehicle registration fees jumped by about 50% within the last 3 years- if my memory serves me correctly. I could research to be sure if I had the time. But I am busy complying with governmental regulations. Productive work is about ended for lack of available time.
Posted by: Ken Hill | April 21, 2010 at 04:53 PM
Ken, it would not necessarily surprise me if the fees had been raised that much. For this crowd, life is one big revenue grab.
Posted by: Joe Guarino | April 21, 2010 at 08:46 PM
Also a few years ago, the DMV very quietly had Commercial (weighted) renewals on an 11 month cycle- did it for 3 consecutive years. But the fee charged was for 12 months.
Posted by: Ken Hill | April 22, 2010 at 11:42 AM