Ken Goodman, Chairman of Main Street Democrats
It’s not often that State Treasurer Janet Cowell engages in a public discourse on pending legislative affairs. Usually, she is busy with her day-to-day job of managing the state’s money, the state employee health plan, the state employees retirement system and the local government commission.
So when she sends a letter to all 170 lawmakers voicing her opposition to a series of constitutional amendments, it may be a good thing for the General Assembly to take notice.
The State Treasurer is warning lawmakers that a series of constitution amendments that set caps and limits on income tax levels, state budget spending and an emergency reserve account will be seen in a negative light by credit agencies on the national financial markets in New York and Chicago.
State Treasurer Janet Cowell said she was opposing Senate Bill 607 “Constitutional Amendment Tax Legislation” because she wanted to protect the state’s AAA credit rating. “Due to the potential limitation on a state’s financial and budgetary flexibility, this type of legislation is typically viewed negatively by the rating agencies,” said Ms. Cowell.
“Governance/Flexibility is an important category considered by rating agencies and is currently one of North Carolina’s strongest factors,” Ms. Cowell continued. “Losing the state’s coveted ‘AAA’ credit rating would expose North Carolina to impair the State’s ability to promote itself for economic development purposes,” wrote Ms. Cowell.
As we all know, North Carolina has a long history of responsible fiscal management. We are only one in 10 states that have a ‘AAA’ credit rating by all three major credit rating agencies. The passage of this legislation poses a real danger to our finances and our state’s fiscal reputation.
The State Treasurer is right. We need to heed her warning and act in a fiscally responsible manner. We can set goals to limit the growth of government, invest money in our rainy day fund and cap our income tax schedules.
But we shouldn’t cut off our nose to spite our face. Before we go down a path we can’t easily correct, let’s take some time to really think about the consequences and understand the repercussions.
PAID FOR AND AUTHORIZED BY THE NC MAIN STREET DEMOCRATS PAC
We are most fortunate to have Janet Cowell as our State Treasurer. She has the education, experience and background to do her job and she does it VERY WELL. The General Assembly members need to listen AND adhere to her advice. If they don’t, NC will be in yet another fiscal mess and it will effect all the citizens who DON’T need yet another uncalled for problem brought on by actions of those who don’t know what they are dong. Yet again–woe is us.
In response to David Reid’s comments above — he is absolutely right. The damages already done to education and health care defy belief. And I read in the local paper Apodaca “laughingly” responded to legislative criticism. The real laugh will be when the entire state goes down in the name of better government. We are not on the brink of a calamity; we are in the midst of it and going further down quickly.
“Governance/Flexibility is an important category considered by rating agencies and is currently one of North Carolina’s strongest factors,”
This is spin and false speak! Government Taxation limits will restrict taxation and will require Government fiscal responsibility, this is not a negative!
Allowing Credit reporting agencies to sucker the Citizenry into supporting their existence is paramount for their survival. Their misdirection on the negatives relating to debt is the corner stone of their survival. Black mail is also in their bag of misleading trickery. If you don’t have debt to prove you can payback debt you must be a high risk! This leads to out of control debt & spending!
This logic is historically and fundamentally false! The taxation required as a result of unrestricted spending forces ever increasing taxation to support this unsustainable debt. Unlimited and unrestricted Government taxation and the resulting spending have placed every U.S. Citizen in debt for over $55,000.00 of Federal debt! $165,000.00 for a family of three! We do not need North Carolina to add to this debt burden.
Don’t be fooled by the Government spinsters, debt is bad! We must eliminate as much Government related debt as possible only then can North Carolina & the Federal Government function within their Constitutional boundaries. Only then will independence, prosperity and liberty return.
But I thought we were supposed to be running our state like a family runs its budget? Why we want a family to do anything that could lower their credit by putting a cap on the amount they can earn?
This states is pitiful as far as leadership is concerned. Will the voters ever wake up and see where this state is headed. DESTRUCTION!!!!
Not when Art Pope and Bob Luddy are pulling the strings and shoving their money into the pockets of their “lapdog” legislators. Money is speech, you know.
She is, of course, quite correct, but don’t hold your breath for the General Assembly to actually think about these issues. All they see is “downsizing” government. Not sure which is worse, Donald Trump’s supreme belief that he is qualified to be president of this country or watching the train wreck that passes for serious legislation in the NC Senate. This has not been a good day in Raleigh for this state.
Love your comments. Thank you.