Just because North Carolina is facing a budget crunch doesn’t mean state lawmakers’ hands are tied. With fresh ideas, state government can create a better future for working families without substantial new spending.

The NC Budget & Tax Center (BTC) has compiled Working Concepts , a list of innovative initiatives to improve the lives of North Carolinians at little to no cost. In certain cases, these policies would actually increase revenue while enhancing quality of life. Common threads run through each of the initiatives. They will help state and local governments spend each dollar more efficiently, assist workers by creating high-quality jobs and more effective transportation solutions, and empower political leaders with forward-thinking tools to help low- and moderate-income families.

At a time when the state is facing massive demographic changes and growth, meeting the challenges of a new era requires new approaches. The following recommendations from the BTC, a project of the NC Justice Center, will address some of North Carolina’s most critical and pressing concerns — without busting the budget.

• Modernize the State’s Transportation Finance System – Closing a loophole in the state’s vehicle sales tax, enacting some reasonable increases in the Highway Use Tax, and reforming vehicle registration fees could raise considerable revenues. These funds increase the state’s debt capacity enough to pay for a large transportation bond. This would enable North Carolina to fix its deteriorating transportation infrastructure, invest in public transportation, and fund refundable tax credits for low-income households to offset the tax and fee increases. Read more

• Fund Metropolitan Transportation Based on Road Use – The current transportation funding system is not coping with rapidly increasing costs and spiraling transportation demand, including calls for more public transportation. Unfortunately, taxing road use using GPS technology is still many years away. What can be done now is assessing fees on real property based on the amount of traffic the property generates. Such a property-based traffic fee is an ideal metropolitan area revenue source for both public transportation and road construction or maintenance that could also supplement existing taxation sources. Read more

• Grow a “Green” Workforce – To realize the environmental and economic benefits of the emerging “green” economy, North Carolina must develop a workforce skilled in vital technical fields. Building such a workforce requires the state to reinvigorate the community college system’s technical training programs and help to create the market for appropriately skilled workers. Read more

• Guarantee Paid Sick Days – Working families are struggling to meet the competing demands of work and family. Giving every worker the opportunity to earn a reasonable amount of paid sick time will benefit families and their employers, who will have more reliable, healthier workers who are less likely to leave. Paid sick days will also improve public health by reducing the spread of illnesses. Read more

• Integrate Economic Development and Workforce Education – Growing industries across North Carolina are struggling to find workers with the technical skills taught at the state’s community colleges. Additionally, North Carolina has thousands of low-wage workers who, with appropriate education, could fill their needs. Integrating economic development and workforce education through “sectoral partnerships” could ensure the supply of skilled workers demanded by industries. Read more

• Link Business Subsidies to Adequate Wages – North Carolina spends more than $100 million a year subsidizing businesses that all too often don’t pay their employees enough to sustain a family. Business subsidies should be viewed as an investment in the state’s economy, and state leaders must make sure taxpayers are getting good-paying jobs for their money. Read more

• Maximize Investments in the Unemployment Insurance System – Financing the state’s unemployment insurance system in more adequate and equitable ways would allow the system to better assist jobless workers and distressed local communities. Ensuring that all employers pay a fair share and that the system is funded for the long-term would maximize the system’s ability to mitigate the effects of economic downturns. Read more

• Empower Local Elected Officials to Make Revenue and Spending Decisions – North Carolina’s counties are facing new challenges, like greater demand for schools, deteriorating infrastructure and increased responsibility for road maintenance and construction. Yet, the state legislature has failed to provide local leaders with sufficient authority to raise new revenue. Local leaders in all 100 counties should be given the authority to enact a slate of progressive revenue options and the flexibility to spend the revenue in a way that works best for meeting the needs of their communities. Read more

• Equip Lawmakers to Make Better Informed Tax Policy Decisions – North Carolina’s lawmakers do not have the tools nor are they required to properly evaluate the impact of tax policy proposals that come across their desks. The result is ill-informed tax policy debates that do not take into consideration the effect proposed changes would have on their constituents. The state should build the capacity to analyze the impact each proposed tax change would have on North Carolinians, divided by income groups, and then require this information to be attached to every revenue bill introduced. This “tax incidence analysis” would lead to improved policy-making. Read more