This week’s guest writer, Emilee Higdon, is an educator in Macon County and serves as a Forum Local Ambassador for the Western Region. She takes a closer look at the tax amendments on the ballot in November and what they mean for her community.
We are officially in the “-ber” months, and you know what that means… the midterm election is upon us! It can feel like each election we are being handed the wheel of a moving car speeding down the highway, and our choices shape the direction of the next leg of the journey. In some ways, this is an appropriate metaphor. Our decisions do shape the next phase of our county/state/country. But it can also be difficult to quantify what exactly it is that we are voting for or against. This fall, there are two important amendments on the ballot that can and will affect local disaster relief, schools, infrastructure, and the livelihoods of individuals across the state. Let’s take a deeper look into what the amendments are aiming to do, and what that actually looks like in the lives of North Carolinians.
So, what’s on the ballot this November?
Lowering tax rates sounds good. It sells well to voters, and on the surface, looks like more money in your pocket. But the problem with lowering taxes is that it leaves less tools for legislators to help communities. Both major amendments on this November’s ballot are related to taxes and are positioned as “tax cuts”, so let’s look at the realities that can come from these amendments.
First up: an amendment to cap the state income tax at 3.5%. Right now, North Carolina has a 7% ceiling on income tax rates, although the current rate is much lower– lower, in fact, than the proposed cap with further planned cuts to come. This tax cap would mean that any future increases couldn’t happen. Why would that be a problem? Well, let’s say something hugely impactful happens in our state, like a massive weather event, and some of our neighbors need extra support. This amendment limits legislators’ opportunities to support those communities. It becomes less of a question about wanting to lower state taxes, and more about restricting the state’s ability to ever increase them. The money from these taxes specifically goes towards schools, health and human services, public safety, and transportation and infrastructure. If there is ever a need in our state for one of these operations, this tax cap takes away the state’s ability to respond appropriately.
Next up: an amendment to limit increases in property tax by local governments. These taxes are another source of financial support for local communities that would be severely limited by this decision. School districts on average get 26% of their funding from local governments, and the vast majority of this comes from property taxes. Even more troublesome, this amendment is unclear about the actual limits required. This detail would have to be ironed out in later legislation, leaving a lot of questions for voters. In a similar fashion, the danger of this amendment is how it limits the ability to respond to the needs of North Carolina constituents by elected leaders. Overall, this amendment is unclear and problematic for local communities and stakeholders.
State Policy, Local Impacts
Although these amendments are on the November ballot, schools are already feeling the pressure. As an educator in Macon County, I can already see how local funding is struggling to keep up with the needs of our students and school community. Our classroom budgets are up in the air, and we are expecting to have to look for other ways to get classroom supplies. We’ve already started asking community members to help supply our classrooms with basic supplies, like tissues and books, through wishlists and social media. Local funding is supporting 128 positions, including 33 teachers, in our district. If the 3.5% income tax cap amendment passes, we will see the pressure increase for local governments to finish funding our schools. If the property tax cap amendment passes, county governments will be completely hindered in their ability to fund schools. In Macon County specifically, 50% of our local funding comes from property taxes. These amendments would have immediate and detrimental effects on local schools, infrastructure, health services, and more.
Although it may feel dramatic, each election truly is like being handed a small piece of the country’s future and being asked not to drop it. We cannot afford to forget our neighbors, children, and friends when we vote this November.
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