NCGA Prioritizes Corporate Tax Breaks Over Education

NCGA Prioritizes Corporate Tax Breaks Over Education

NCGA Prioritizes Corporate Tax Breaks Over Education

Are you aware of the deep cuts to education that have taken place so that corporations can receive tax breaks?
North Carolina used to support school capital by allocating a portion of corporate income tax and lottery revenue, but recent tax and funding decisions by lawmakers have dramatically reduced state investments in school construction and repairs.
From 1987 to 2009, the state dedicated approximately 7.25 percent of corporate income tax revenues to school capital through the Public School Building Capital Fund (PSBCF). When the Great Recession hit, the General Assembly decided to redirect PSBCF funds to fill the large budget shortfall created by the economic downturn. Then, in 2013, lawmakers decided to eliminate the corporate income tax transfer altogether to pay for part of the cuts to corporate and personal income tax rates.
Diverting the allocation between FY 2009-10 and 2012-13 meant $342M less in school construction funding. If the state had maintained the corporate income tax policy that existed before 2013, it would have generated an additional $576 million in funding for school construction through the 2017-18 Fiscal Year.

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