From: Action for Children North Carolina
Governor Perdue’s 2012-13 budget proposal, released this morning, makes the children of North Carolina a clear priority. Particularly in education and early education, the budget restores some of the cuts made last year, by proposing a three-fourths of a cent sales tax increase, a temporary measure that was eliminated by the General Assembly in 2011.
K-12 Education
In K-12 education, the Governor’s budget proposes an eight percent ($562 million) increase over the 2012-13 budget provisionally approved by the General Assembly last year. The Governor’s education budget would:
- Save or create 11,000 education positions, including teachers, teacher assistants and others
- Give teachers and principals a pay raise for the first time in several years (1.8% and 1.5% respectively),
- Lower class size in grades K-3 by one (to 1:17 in Kindergarten and 1:16 in grades 1-3)
- Restore some funding for the schools for the deaf and blind ($3.5 million),
- Restore funding for teacher training, including mentoring, teaching fellows, the NC Center for the Advancement of Teaching and the Teacher Cadet program ($15.8 million)
About half of the increase in education spending would replace federal education funds that will run out later this year.
The Governor’s education budget would also invest in the community college ($53 million) and UNC systems ($145 million), including $35 million in student financial aid.
Early Education
Governor Perdue’s budget would invest 16 percent ($43 million) more in early education. The plan increases funding for NC Pre-K by $25 million, which would add more than 4500 more slots, and invests an additional $18 million in Smart Start. These investments help offset the cuts made to these programs last year.
Juvenile Justice
The Governor’s budget proposes no additional cuts to Juvenile Justice programs.
Health Care for Children and Pregnant Women
The budget proposes no cap on Health Choice enrollment, meaning the program is fully funded to enroll as many qualified children as apply. Enrollment is expected to increase by 5.5 percent to 153,000 children.
There is no rate reduction proposed for Medicaid providers, which will allow more pediatricians and specialists to continue serving Medicaid patients. There are also no further cuts to optional Medicaid services (primarily for adults).
Funding for key maternal and child health priorities is included, such as the March of Dimes, teenage pregnancy prevention and the Safe Sleep program. Also included in the Governor’s budget is $350k for the high-risk pregnancy clinic at ECU, a priority that was eliminated in last year’s budget. Public health overall sees a proposed $10.8 million increase.
Other Health and Human Services Agencies
Central Management: $8.6 million investment in non-profits previously funded through federal dollars, including Boys and Girls Clubs, Child Advocacy Centers, maternity homes, food banks and others.
Public Health: $10 million investment in tobacco cessation programs previously funded through the Health and Wellness Trust Fund
Social Services: A reduction of $9 million seems to be based on caseload reductions and changes in federal funding, and should not impact access or services for children.
Mental Health: $8.5 million administrative budget cut, described as savings from transitioning Local Management Entities (LMEs) to Managed Care Organizations (MCOs); $10 million investment in local in-patient beds, $1.8 million for the START teams (crisis intervention); $3.5 million to fully staff the new Cherry hospital
House budget expected as soon as next week
General Assembly leadership, which has already been working on a budget plan, has reiterated that it will not include a restoration of the increased sales tax, so the House and Senate will be working with $760 million less in revenue than the Governor. The House is expected to pass its budget within days of the start of the legislative session, next Wednesday, May 16.