Posted on 02/18/2006 5:32:29 AM PST by TaxRelief
RALEIGH, N.C. — North Carolina can take on more than $214 million in new debt annually for the next 10 years and remain financially sound, the state treasurer said in a report Thursday.
The report from State Treasurer Richard Moore recommends a 4 percent ratio of debt service to state revenues as a prudent target debt level, or $214.4 million a year for each of the next 10 years.
The figures are part of his yearly debt affordability study, given to Gov. Mike Easley and legislators.
Last year's study recommended no new debt for the next three years given a similar 4 percent debt-to-revenue ratio. The new forecast is a sign of North Carolina's improving financial picture, Moore said. Higher-than-expected revenue growth is one of the reasons for the change, he said.
"However, there are compelling reasons to refrain from authorizing new state debt until the state makes more progress in other areas of fiscal management," the report said, such as increased unreserved balances in the state's general operating fund.
North Carolina now has a top triple-A bond rating from Fitch and Standard and Poor's ratings agencies. Moody's Investors Services rates North Carolina at the firm's second-highest rating — Aa1 — and gives it a positive outlook.
(Excerpt) Read more at rockymounttelegram.com ...
I'm smelling a shell game in re debt-to-revenues gambit.
What I'm seeing amounts to "unionizing" but without the "union label".
It is so typical for this state.
Big time shell game with money. But at least some of the papers are starting to catch on to the highway fund scam.
Alia, can you share some of the details you have so far, so we can help you dig?
However, the debt to revenue structure is a way to raise the state's "credit status". When a state's credit status gets higher ratings, this means more "investors" (whether private or corporate, state or fed) are enticed.
How some of the incentives are worked is that the businesses come into NC but pay only 1/2 of the taxes. While on its face, it means "more jobs" for the local guy, it also means the "local guy" ends up picking up the tab on the other 1/2 of the taxes "due".
Short-term, it's like the proverbial "squirrels running the engine" cartoon scenario; looks like busy work, and the engine is running; but it has a limited life cycle.
And in re "what businesses" come into the state under the "incentives" program.. means... the state bureacrats basically get to pick "WHO' that is. What businesses get the "okay".
At moment, I've nothing specifically to assert here, as in "names and numbers".
However, as some of you know, I'm HEAVILY ANTI-LOTTERY. I've gotten to study this one up reallllly close in CA (Rob Reiner's godzilla).
I saw stats which showed the majority of "lottery" purchasers were in the low-income category. Simultaneously, these "low-incomers" get a zillion welfare hand-outs under multiple category names. So, effectively what you've got is an "employment" program for those involved with running the lottery. But what does the little guy get? Money in/money-out and all from the same source. There's no actual employment boon, in real terms, for the little guy. He, the little guy, gets an "entitlemenent/dependency" schematic wrapped in a package called "YOU MAY BE THE LUCKY ONE". The scenario does NOT actually benefit the little guy at any level except possibly in terms of social discourse: something to talk about and get little perks of "excitement" over. Who won.. who got closer numbers, etc.
NC is a stunningly beautiful state. I'm in love with its people and how they live their lives.
It seems to me that the Democrats in the state "bank" on Fort Bragg funds in order to shelter some of the shell games they do.
There's absolutely no reason businesses shouldn't wish to operate in NC EXCEPT -- EXCEPT that taxations are inordinately HIGH. That, in and of itself, is a major negation factor for corporations and employees.
So, back to the "business drawing" methodology that I see as coming from the NC Democrats... since they get to "choose" which businesses come here.. it amounts to a shell factor. A "union" effect but without the "union label".
But it is so wrong!!!
NC Repubs, IMHO, might consider looking into what Arnold is doing in CA. I've checked out the actual knowledge/abilities base of the average Joe I've come to know in NC (throughout) -- these folks are so sharp. Their skill base blows my mind. Never saw anything quite like this talent in CA (sure, different markets). NC has got the resources to do these types of markets.
And regardless of what top-drawer "experts" say about NC Education? I ain't budging. Y'all (we'all) in NC are getting a vastly superior education over those in CA at all levels K-university. But, for how long will this continue. In order for NC to stay on its proper/substantive education path and avoid the "CA pitfall" (indoctrination programs in lieu of education) -- there's got to be a tangible, burgeoning market base towards goal -- that of economic equilibrium.
I do not! see the NC Dems offering such a goal. Just more paperwrapping over the same old "high taxation" schemes. This is NOT good.
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