Pre-recession spending and today’s budget

We hear a lot about the need to return spending to pre-recession levels. And spending grew a lot just before the recession. The budget grew 8.9% in fiscal year 2006-07 and another 9.0% in fiscal year 2007-08.

What doesn’t get mentioned is that the Democratic General Assembly and Democratic Gov. Bev Perdue then had to cut state spending 10.8% in fiscal year 2009-10 and another 0.7% in fiscal year 2010-11 even as they raised taxes and took more federal money.

The current budget bill is not perfect, but its commitment to saving, refusal to take on open-ended commitments for new debt or Medicaid expansion, and relatively restrained growth in spending is the best insurance against devastating budget cuts or tax increases when the economy slows.

Joseph Coletti / Senior Fellow

Joe Coletti is a senior fellow at the John Locke Foundation focused on fiscal policy issues. He previously headed the North Carolina Government Efficiency and Reform initiativ...

Reader Comments