JOINT CAUCUS PRESS RELEASE

FOR IMMEDIATE RELEASE

  March 19, 2009

GOVERNOR'S BUDGET TAXES FAMILY BUDGETS 

After release of the Governor’s budget proposal on Tuesday, Senate Republican Leader Phil Berger (R-Rockingham) and House Republican Leader Paul Stam (R-Wake) held a press conference on Thursday to discuss the Governor’s proposed budget and answer questions from the Press.

Republicans noted several things about the budget proposal.

·        Government spending increases by half a billion dollars. Spending for 2008-09 will total $20.3 billion; her budget proposes spending $20.9 billion in 2009-10.

·        There is a structural deficit of at least $1.7 billion.

·        New taxes and fees of over half a billion dollars. Over the next 2 years it raises taxes and fees by $1.2 billion. A recession is not the time to raise taxes on North Carolina’s families.

·        The budget continues spending growth; rates of growth are not justified by economic conditions. Her budget protects and perpetuates growth in government budget at the expense of family budgets. The Budget forecast of revenue growth in excess of 5% in the second year and may be overly optimistic.

·        Adoption of this budget will cost jobs. Many jobs lost will be in manufacturing, particularly in the Triad area.

·        It fails to take advantage of Republicans savings proposals.

·        Continues the Democratic education policy: problems in education are solved by throwing more money at those problems. Expands drop out prevention grants which are of questionable value and does not expand career technical education – an established way to dramatically improve the drop out rate.

“After weeks of statements and pronouncements about the coming painful reductions and cuts in personnel and programs what we see is a budget proposal that increases spending,” said Senator Berger. “There is a need to cut state spending – this proposal protects ongoing government spending and further stretches family budgets with increases in taxes.”

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