Last week, Gov. Bev Perdue proposed an increase in the state sales tax, taking more than $800 million out of the pockets of North Carolinians. She tries to sell the plan as a tool for education funding, but she fails to offer any meaningful strategy ensuring the money will be spent wisely. The governor's proposal would result in a 15 percent increase in the state portion of the sales tax, negatively affecting every level of society. Now is not the time to raise taxes - especially on single moms, senior citizens and the unemployed. The governor will say "It's just a penny." It is not a penny. It is $800 million from the pocketbooks of people, many of whom are just making ends meet. Moreover, $320 million will be paid by our state's job creating engines - mostly small businesses.
The legislature has taken positive steps for education over the past year. Despite inheriting a $3 billion structural deficit from the governor's last budget, we passed a balanced budget that actually resulted in an increase in the number of state-funded teaching positions. And we did it without raising taxes.
The governor's call to raise taxes without a plan to improve our schools is evidence that she is satisfied with the status quo and believes it's simply a matter of more money. Legislators disagree. The governor needs to avoid management debacles, such as the hundreds of millions of dollars in waste caused by a new HHS information system and a mismanaged motor fleet. There is plenty of room to more wisely spend the tax revenues we already receive before we increase the burden.
We must work to understand how 16 school systems spend below the state per-pupil average and have graduation rates above the state average. We must fund classroom resources and not ineffective bureaucracy. We must remove the burdensome framework imposed on local school systems. The governor should consider the notion that government can do more to improve education outcomes without demanding more taxpayer dollars.
North Carolinians are desperately fighting their way out of a recession. Tax cuts and economic reforms spearheaded by this General Assembly are improving the economy, and raising taxes before we realize the full extent of a recovery is reckless. We should demand that government function efficiently, rather than demanding that our citizens pay more for basic necessities. We will continue to improve our education system, including potentially freeing up more funds for productive uses for early childhood education and classroom resources, but we will do so without imposing a regressive tax increase on our citizens.
