Char-O: Democratic budget increases spending in the midst of recession

Little lemonade to be made from this lemon

State legislators in Raleigh on Wednesday put the final touches on a new state spending plan that does something remarkable: It authorizes an increase in General Fund spending in the midst of an extended recession. Depending on your political inclinations, that’s either an irresponsible stewardship of the public’s resources or a courageous commitment to protecting those least able to protect themselves.

While we differ with the way the House and Senate put together their 2009-10 budget plan, we believe lawmakers made a good-faith attempt to meet the state’s most pressing needs. They wound up with a $20.4 billion budget that, despite cuts, still emphasizes education.

That’s approximately $100 million more than the state spent in the year that ended June 30. …

It also raises $990 million in new taxes, most of it through a 1-cent increase in the sales tax and a tax surcharge on North Carolinians making more than $60,000 a year, as well as new fees. Though Gov. Bev Perdue said she opposed burdening working families with higher taxes, the plan does just that. And it uses about $1.4 billion in federal recovery funds to cover shortfalls in education, medical assistance payments, child care programs and other social programs. That’s a budget hole waiting to happen when the one-time stimulus money runs out, and may force lawmakers to make cuts in programs they now regard as sacred cows. …

This budget includes the layoffs of about 700 state workers, including 350 positions in mental health and substance abuse services. It also closes seven small prisons and cuts 187 jobs there. The local school cuts are sure to lead to more teacher layoffs. …

Click here for the full editorial from the Charlotte Observer…

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