The Convenant with North Carolina’s Children is reporting very distrubing developments.
According to an alert sent this afternoon:
- The most recent revenue proposal would reduce the revenue target from $990 million down to $450 million! Obviously, if such a package was implemented, legislators would have to make an additional $540 million in cuts to the current spending package. The people of North Carolina cannot afford $540 million more in cuts to education, health care, and public safety.
- Additionally, another revenue proposal under consideration would implement ONLY temporary taxes. This proposal is short-sighted and insufficient. State economists predict that revenues won’t rebound to last year’s level for another five years. Furthermore, at the end of next year, we’ll run out of all federal stimulus funds (we’re currently using $1.3 billion in stimulus funds to address the budget shortfall).
- Also, we are hearing that many House members are beginning to slide on their commitment to raising any revenue at all. For instance, Rep. William Wainwright, a co-chair of the House Finance Committee, now believes that revenues should not be part of the equation. He’s slipping and we know that others are, too. Without any new revenue, we could be back to facing a cuts-only approach with up to $990 million more cut from the latest version of the budget.
TO PRESERVE VITAL INVESTMENTS IN CHILDREN AND FAMILIES, YOU MUST TAKE ACTION NOW.