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North Carolina's
Criminal Justice Policy Brief
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NC Legislative Building, Raleigh
Session Begins May 12, 2010 |
NC Budget Picture: Good News.... Bad News
Revenues-Could be Worse The most recent state revenue report finds the state only $45 million less than what was expected for February of 09-10. That's the good news. The bad news is that the overall picture would have been significantly worse without a one-time revenue source that has improved the gap in the short term.
State budget managers expect to end the 09-10 fiscal year with a budget that is in balance due to the additional steps the Governor has taken to hold back funds throughout the budget year. That is more good news!
Still, the economy is not picking up as rapidly as originally projected. Sales tax collections continue to disappoint and consumers are expected to remain cautious. Collections are $125 million (11%) below target. In addition, withholding taxes are down by $145 million.
Employment- Starting to Improve
Good news can also be spotted in the employment picture. Although the unemployment rate remains high, the total decrease in raw numbers of unemployed persons may have finally bottomed out. Some companies are also starting to pay bonuses, which is also a good sign.
Economic forecasts have grown more pessimistic for the 2010-2011 budget. A 3.2% baseline growth was originally projected and that may not materialize as quickly as expected.
The turnaround in the employment picture is slower than projected and the pace of recovery has been pushed forward. While budget leaders have not yet agreed to a revenue adjustment for 2010-2011,
that appears to be the direction they are headed.
What Does it All Mean?
Programs funded by state government can probably expect another round of cuts to be discussed when the Legislature reconvenes in May. Legislators may need to find several hundred million dollars to make ends meet. Rep. Mickey Michaux, Appropriations Chair told the Associated Press earlier this week that "Right now it's just not looking good at all." Still, that figure is nothing like the $2 billion dollar shortfall the state was reeling over 12 months ago and it represents a small percentage of the total state budget.
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Finding a job is tough for everyone in this economy, but it's doubly hard on offenders attempting to re-enter the economy. We were pleased to see the Committee on Poverty Reduction and Economic Recovery addressing this concern in their March meeting.
For Employees The Committee heard one piece of new information that we hope will be useful across the state. The Employment Security has started a "Former Offenders Initiative." The new initiative will provide a trained offender specialist staff in 70 of the state's ESC offices. These will not be new positions, but will designate a "go to" person in each ESC office for offenders to receive the following services:
a) Job referrals
b) Referrals to other services
c) Job seeking skills
The ESC is also hiring three new statewide positions to help serve as a resource to local ESC offices and to help develop job resources statewide. These new coordinators are:
Jim Korth - Raleigh - 919-733-4896
George Anton (Western offices) - 828-466-5535
LaFonda General (Eastern Offices) - 919-731-7950
In addition, the Department of Correction has received a grant for 10 new positions that will enhance the ESC's work. These positions will help the ESC improve it's ability to coordinate with the Department of Correction.
25% of people coming to the ESC have obtained jobs in the past, so while it's far from a sure thing, it's one more important resource.
For Employers
The following programs are available to employers who are hiring offenders:
Federal Bonding Program - The bonding program guarantees that if a person steals from the employer, the employer can get their money back.
Work Opportunity Tax Credit - These tax credits are available to employers of 11 target groups, including ex-felons, vocational rehab recipients, summer youths and veterans. The tax credit pays up to 40% of the first $6,000 in wages if an employee is retained for 400 hours. An ex-felon is defined as someone with a hiring date not more than 1 year after the date of the conviction or release from prison.
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Cowell Recommends Keeping Debt Down
Construction Dollars in Short Supply
State Treasurer - Janet Cowell
Janet Cowell, the State Treasurer, presented the state's debt picture to legislators this week. It's not a pretty picture! The treasurer doesn't anticipate any significant additional borrowing until 2013, when $626 million should be available.
Since all of the state's prisons are now built with borrowed dollars, it will be difficult for the General Assembly to address the projected 2012 gap of 2,800 prison beds solely by new construction. That gap is anticipated to grow to 8,500 beds by the end of FY 2018-19.
It's not as though the state hasn't been investing in prison beds, though. Over 3,450 beds are currently under construction and expected to come on line in the next two years.
This is a perfect time to be "smart on crime" by shifting state resources to less expensive community-based resources that can help reduce the state's recidivism rate. It is also a time to revise the sentencing structure to increase work release and other transitional options.
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Building Knowledge & Finding Help
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Upcoming Conferences & Events
NC StreetSafe Task Force Meeting
April 22, 2010
June 24, 2010
Locations TBA
Joint Legislative Committee on Offender Reintegration
March 18, 2010
Room 643
Legislative Office Building
Raleigh, NC
Charlotte Community Justice Coalition Conference
April 30 - May 1
Charlotte, NC
State & National Research Findings
The Long Reach of American Corrections
CJPC Staff & Volunteers
Lao Rubert
Executive Director
Nathaniel Boston
Volunteer Office Aide
Patricia McDonald
CJPC
Board of Directors
Linda Weisel
Postconviction Attorney
Dr. Peter H. Burian
Duke University
Classical Studies Professor
Dr. Jarvis Hall
NC Central University
Civic Engagement Director
Edd Gulati-Partee
Self-Help Community Credit Union
Information Technology
Sheria Reid
Institute of Government
Policy Analyst
CJPC is a partner organization
of the following:
Blueprint NC
HK on J Progressive Coalition for Social Change
"A Movement Not a Moment"
North Carolina Center for Nonprofits
North Carolina
Coalition for a Moratorium on Executions
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Contact Us!
Mailing Address:
Post Office Box 309
Durham, NC 27702-0309
(919) 682-1149
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