N.C. Budget Reform
Position: The General
Assembly should continue reforming the state's budget process begun in
1991. Fiscal expenditures should be based on some other measure than
revenue projections--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 in a timely manner to meet statutory deadlines for local
governments.
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, a 1% error in the
revenue estimates is a big problem. The lack of precision in revenue
estimates has been a major factor in recent budgetary problems.
The natural tendency in the
political process is to keep
taxes as low as possible and to provide the most programs possible. Once a program has been
established, there is great reluctance to ever dismantle it,
especially after staff is hired, and the pro-ram 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. One would not have to look back too far in the past
to see that there are literally hundreds of programs and agencies run
by the state government that did not exist ten years ago. This puts
great pressure on the economists who have the responsibility to
estimate government revenues each year.
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Session Limits
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Four Year Terms For
Legislators
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Judicial Selection
And Retention In North Carolina
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Annexation
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