PROMOTING WISE CHOICES FOR SHARED PROSPERITY

On the Chopping Block

Click on the map below to learn more about the impact of state budget cuts in your community.

Western North Carolina Charlotte region Piedmont-Triad region Research Triangle region Southeast North Carolina Eastern North Carolina Northeast North Carolina Northeast North Carolina Eastern North Carolina Southeast North Carolina Research Triangle region Western North Carolina Piedmont-Triad region Charlotte region
  • Western North Carolina region

  • Current unemployment rate: 9.4% [ ii ]
  • By 2013, projected job loss from budget cuts: 5,113 [ vi ]
  • Piedmont-Triad region

  • Current unemployment rate: 9.2% [ ii ]
  • By 2013, projected job loss from budget cuts: 7,318 [ vi ]
  • Southeast North Carolina region

  • Current unemployment rate: 10.1% [ ii ]
  • By 2013, projected job loss from budget cuts: 4,261 [ vi ]
  • Charlotte region

  • Current unemployment rate: 9.2% [ ii ]
  • By 2013, projected job loss from budget cuts: 7,979 [ vi ]
  • Eastern North Carolina region

  • Current unemployment rate: 9.7% [ ii ]
  • By 2013, projected job loss from budget cuts: 4,156 [ vi ]
  • Research Triangle region

  • Current unemployment rate: 7.8% [ ii ]
  • By 2013, projected job loss from budget cuts: 9,242 [ vi ]
  • Northeast North Carolina region

  • Current unemployment rate: 10.3% [ ii ]
  • By 2013, projected job loss from budget cuts: 1,624 [ vi ]
  • North Carolina

  • Current unemployment rate: 9.4% [ i ]
  • By 2013, projected job loss from budget cuts: 30,000 [ v ]

Counties: Alamance, Caswell, Davidson, Davie, Forsyth, Guilford, Montgomery, Randolph, Rockingham, Stokes, Surry, Yadkin

  • As a direct result of the state budget, more than 258 teaching positions have been eliminated in the Piedmont region, and 1,897 school-related jobs have been cut. [1]
  • Rural counties are finding it harder to cope with the loss of state funds than some of their urban neighbors because they have a much smaller tax base from which to draw additional revenue to fill the gaps [2]. In Montgomery County, a relatively small community with approximately 28,000 residents, $1.2 million in state funding was cut out of the local education budget and 31 education jobs have been lost [3]. “When you’re looking at a rural county like mine, there’s no way there’s enough tax base here to cover for such a massive loss of state funds.” [4]
  • Winston-Salem and Forsyth County Schools have been forced to cut 127 teaching positions and 222 jobs overall as a result of the NC budget. Class sizes in middle and high schools have grown, and already overburdened teachers are finding themselves taking on more responsibilities to make up for the loss of staff. Donny Lambeth, chairman of the local Board of Education, is concerned about burning out remaining teachers and staff, and says that the cuts will force the district to take a step backwards in student achievement. “The real impact of these budget cuts will be felt for years.” [5]
  • Cuts to Smart Start and More at Four mean that at least 440 fewer children in Guilford County will receive the programs’ early childhood development services in 2011-2012, while 80% of families with an enrolled child will be forced to pay a fee – in some cases, as much as 10% of their annual income. “If you’re a family making $16,000 and you’re required to pay 10% of your gross income to participate in pre-kindergarten, I’m not certain I, as a parent, could come up with $1,600 to do so. That obstacle has been put squarely in front of those families,” says John Pruette, who oversees More at Four in the Department of Public Instruction. [6]
  • Officials at UNC-Greensboro noticed that an unusually large number of students had not returned this fall and began contacting some to find out why. In most cases, it turned out that some combination of the economy, rising tuition, and a lack of available financial aid contributed to their decisions. According to UNC-G Chancellor Linda Brady, many students and families are making difficult decisions about whether they can afford a university education, and some are finding that they cannot. “Some of them indicated they were transferring to a community college because it was cheaper.” [7]
  • Two public universities in Winston-Salem are feeling the impact of state budget cuts. UNC School of the Arts in Winston-Salem has eliminated more than 21 jobs and laid off 7 staff members. “I am extremely saddened that it has come to this. Losing people who are valuable to this organization is the most painful part of this process,” said UNCSA Chancellor John Mauceri. [8] Winston-Salem State University has eliminated 11 positions and cut allocations for adjunct professors in half to cope with the loss of state funds. Fewer courses will be offered and full-time professors will find themselves with heavier workloads, which will affect their ability to conduct research and student advising outside of the classroom, according to Gerald Hunter, vice chancellor for finance and administration at WSSU. [9]
  • Public-sector job losses are slowing the economic recovery across the state. In July, 5,800 of 6,600 lost jobs in the Greensboro-High Point metro area were government jobs. “We’re seeing thousands of public sector jobs being lost across the state’s metro areas and only hundreds of private sector jobs replacing them,” says Allan Freyer, an analyst with the N.C. Budget & Tax Center. “This negative job trade-off is a recipe for increasing unemployment, not economic recovery.” [10]
  • Medicaid recipients are beginning to see services reduced and eliminated as a result of $354 million in cuts to the program approved by lawmakers in the NC budget. Eye exams and glasses for enrolled adults have already been cut, but reductions to services such as dental treatments and physical therapy are likely in the coming months. Richard Gottlieb, president of Senior Services in Winston-Salem, doubts the cost-effectiveness of the cuts and is concerned about the public health impact: “They may seem like innocent cuts on the surface, but cumulatively, they are likely to lead to higher health-care costs later and potentially the loss of independence for many residents.” [11]
  • These cuts were not inevitable but a choice. By maintaining the temporary tax package, which included the penny sales tax and a surcharge on high-income earners, or looking at reform-minded revenue, lawmakers could have avoided many of these deep and wide-ranging cuts.


    Sources:

    1. [1] Department of Public Instruction – August 31st, 2011
    2. [2] Charlotte Observer – June 20th, 2011
    3. [3] Department of Public Instruction – August 31st, 2011
    4. [4] News & Observer – June 19th, 2011
    5. [5] Winston-Salem Journal – June 27th, 2011
    6. [6] News & Record – June 26th, 2011
    7. [7] News & Observer – October 9th, 2011
    8. [8] News & Record – July 21st, 2011
    9. [9] Winston-Salem Journal – July 4th, 2011
    10. [10] News & Record – August 27th, 2011
    11. [11] Winston-Salem Journal – August 30th, 2011

Piedmont-Triad region by the numbers

North Carolina leaders have slashed public investments at the same time that we’re struggling through the Great Recession. Below are some key data points on what’s happening around the state as a result.

A weak recovery

  • Regional unemployment rate:
    9.2% [ii]
  • N.C. jobs shortfall:*
    532,500 [iv]

Job losses from budget cuts

  • By 2013, estimated regional jobs impact from the FY 2011-12 and FY 2012-13 state budgets:
    7,318 [vi]
    jobs will be lost.
  • Number of educator jobs lost this region:
    1,897 [vii]

Community distress [viii]

  • Highest county poverty rate in this region:
    Montgomery county at 22.6%
  • Highest child poverty rate in region:
    Caswell county at 35.3%