Continue N.C. Budget Reform

Position: The General Assembly should continue reforming the state's budget process begun in 1991. Fiscal expenditures should not be based on revenue projections, but rather should be based on some other measure such as the amount of prior calendar year revenues, plus growth and inflation, as an example. The rainy day fund should be continued for unanticipated needs. Moreover, the budget should be approved to meet statutory deadlines for local governments and local school systems.

Explanation: Revenues for the State of North Carolina have increased each year, even in times of recession. The increases, however, have not always been uniform. Budget estimates based on the anticipated percentage growth in state revenues have fluctuated greatly. With the present size of the state budget, even a 1% error in the revenue estimates can be a big problem.

The natural tendency in the political process is to keep taxes as low as possible, and to provide the most services possible. Once a program has been established, there is great reluctance to ever dismantle it, especially after staff is hired, and the program develops an even wider constituency. In the minds of those who administer and who benefit from the program, it becomes almost impossible to remember the time when the program did not exist. The state has made some efforts to review programs on a regular basis and cut out unnecessary programs and positions.  However, state government continues to grow and efforts to streamline government must continue to be improved.

Contingent Fee Audits

Defining "Doing Business" In North Carolina

Property Tax Exemptions For Construction In Progress And Product Samples

Machinery Tax And Sales Tax

Change The Net Economic Loss (Nel) Carryover

Remove Credit Balances From The Definition Of Unclaimed Property

Remove Inventories From Franchise Tax Base

Sales Tax Discount

Single Sales Factor

Proposed Model Unclaimed Property Act
Allow an R&D Credit for the Actual Amount of N.C. Expenditure