Quick Thoughts on Governor Perdue's State of the State Address
This was the best speech I ever heard Bev Perdue make.
Well written. Well delivered. Positive and hopeful tone in hard times.
Her assessment of where North Carolina is today may be a bit optimistic but she certainly delivered it well. She made an impassioned case for continued economic incentives to lure new business. Her corporate tax cuts to 4.9 percent threw Republicans a bone, but will also made great friends in the business community. The capital access program she proposed will be enthusiastically embraced by small businesses who cannot get loans. Perdue didn’t explain how the 46 million dollars in federal funds will be leveraged into 800 million in loans, but it sounds good.
We will wait for the budget to hear how the governor plans to consolidate 14 state agencies into 8 and how much money that will save, but if adopted, will be the largest reorganization of state government since The Great Depression. The early retirement initiative is a two-edged sword. Employees who have attained necessary retirement tenure obviously are paid higher salaries than those who have fewer years of service, but they also have the greatest experience.
Perdue laid down the gauntlet to legislators: No cuts to classroom teachers or assistants. There were no details for how to define excellent teachers or how to rid the state of less than the best, but if she can deliver on this she will win many parents.
Perdue’s career and college program proposals for high school juniors to receive two years’ free tuition at community colleges are ambitious but give positive direction for how to improve career and technical education for our students who will not get a four year degree.
No state of the state speech can fill in all the details so we will obviously wait to hear how Governor Perdue plans to pay for these programs and where cuts will be made. But the tone of her speech was spot on and she hit the right notes in this 38 minute address. We will talk about this on NC SPIN this week and await the budget later in the week.
Bev Perdue painted a picture of a North Carolina we all want to be true and we applaud her for an excellent effort.
I agree completely. Best speech she has ever given. I await the numbers. For example, how many revenue dollars will the corporate income tax cut take out of play? I agree with her strong focus on economic development and education - and the reference to China's looming threat to our economy. But, at the end of the day, I do not think the General Assembly can "cut" its way out of the deficit problem without devastating consequences for essential programs and services. It will have to be more creative than that - and will have to look at how to generate more revenue to offset the cuts. This is going to be an historic session of the General Assembly.
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The focus should not be how many revenue dollars will be lost. The best example of economic growth is what President Reagan did in 1981. He cut the top tax rate to an average of 25%. As a result, revenue to the government doubled, and the second largest expansion of the middle class in our history ensued. Spending has been, and continues to be, the problem. The budget must be balanced for our state to remain solvent. Basic macroeconomic theory tells us that when the private sector is allowed to keep more of the money we earn, saving and investment increases. The free market has not been truly free since the 1920's, and desperately needs to be unleashed once more for liberty and prosperity to thrive. This is what the current General Assembly understands. However, our Legislature is going to need the ideology to change at the federal level as well to complete the needed reform. I firmly believe the essential programs and services you mentioned have only compounded the problem, and have added to the dependency society we live in today that did not exist 40 years ago. In addition, fraud and waste are rampant in the social programs, and have been overlooked for far too long.
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Agreed!
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A lot of good talk and promises, but where are all these jobs our government keeps talking about? Education is the foundation of our children's future, but that's not the only issue on the table!
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As long as we are saddled with a "progressive" income tax system, let's use it in conjunction with this "free" tuition program. Give the kid a grant, but the parent must show the N.C. Dept. of Revenue that the kid has a passing G.P.A. at a community college to qualify for a tax deduction, instead of just handing out the money. At least that may cut down on the "WASTE, FRAUD, AND ABUSE.
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