How do NC legislative candidates want to spend your extra tax money? Here’s what they say.

North Carolina had a more than $6 billion tax revenue surplus this year.

The General Assembly chose not to spend it on new tax cuts or significant raises for state employees and teachers when lawmakers passed a budget bill in July, instead squirreling away money as they worried about an imminent recession and inflation. Months later, inflation continues to rage at more than 8%.

When The News & Observer sent out questionnaires this fall to candidates in all 170 legislative races, we asked about the revenue surplus and how they think it should be spent. We received 126 questionnaire responses for our 2022 voter guide. Several candidates, including those in leadership, are unopposed on the ballot.

For swing districts in the Triangle that both Republicans and Democrats responded to, we looked at candidates’ answers about how they would spend the revenue surplus. The 2023 General Assembly long session is also when the legislature will pass its next two-year spending plan, so whoever wins their race will vote on the next state budget.

Here is how we posed the question, with candidate responses below:

“At a time when costs are rising, state government has a surplus. How should it be used?”

Batch vs. Cavaliero in southern Wake Senate race

Senate District 17, in the southern Wake County suburbs, is a swing district.

Sen. Sydney Batch is the incumbent Democrat running for election. She was appointed to the seat after losing her House race in 2020. Her Republican opponent is Mark Cavaliero. In the 2020 presidential election, Biden won the district by 5%.

Batch: “Our state surplus should be used to increase teacher and non-certified pay, as well as increasing state employees’ salaries. We also need to invest in capital improvements in our aging schools across North Carolina. Additionally, we need to fully fund the Leandro plan so that every child in North Carolina receives a sound basic education,” Batch said.

Cavaliero: “Inflation is at a 40 year high right now, so during the next budget cycle we should evaluate the impact of inflation and the economic downturn to make sure budget decisions are prudent for the current and projected environment.

“We should also evaluate critical areas like education and infrastructure to make sure we’re both demanding accountability and investing properly for future success. After that, surpluses should be returned to the taxpayers. It’s your money.”

Sykes vs. Bode in northern Wake County Senate race

One of the most high profile Senate races this year is for District 18 in northern Wake County, another swing district.

There is no incumbent.

Republican candidate E.C. Sykes and Democrat Mary Wills Bode are vying for the seat. Both campaigns feature attack ads against each other, and Skyes’ residency has been challenged. Biden won the district by 3%.

Bode: “I support a healthy rainy day fund. However, in order to build a stronger North Carolina, the excess surplus, consisting of our citizens’ hard-earned money paid in taxes, should not be hoarded, but rather wisely invested in job creation initiatives to continue to grow our economy, infrastructure to support our rapidly growing state, and our education system so every child is prepared for a productive and purposeful career.”

Sykes: “Increased investments in NC infrastructure are critical to continuing our economic growth. The legislature’s implementation of a reduced tax structure and cost controls fostered the financial strength NC currently enjoys. I support continuing the strategy by further reducing taxes to help the hard-working families and preserving the emergency reserves.”

Paré vs. Kelly in southern Wake County House race

Another Triangle race getting attention is House District 37. Incumbent Republican Rep. Erin Paré is being challenged by Democratic candidate Christine Kelly. Biden lost the district by less than 3%.

Paré: “We should allow taxpayers to keep as much of their hard earned money as possible, and take a cost-wise approach to state spending.

“In recessionary times, the creation of an Inflationary Reserve was the right and responsible thing to do. I support balancing additional tax cuts with investments in school security, transportation and infrastructure, and continued broadband expansion to benefit education and economic growth. We need to raise teacher pay and be the top in the southeast for teachers.”

Kelly: “Our state government must ensure that all our schools can provide a quality education for all students. This starts with having excellent schools available across our entire state. As recently as December 2021, the NC Education Lottery announced they will allocate $812 million over the next 2 years to help counties build and repair schools.

“Federal funding, the issuance of bonds, and the current tax rate could help fund additional, much needed programs for public schools.”

Reives vs. Petty in Chatham County House race

House District 54 is between incumbent Democratic Rep. Robert Reives, who is also the Democratic minority leader in the chamber, and Republican challenger Walter Petty. Biden won the district by 7%. The campaign has included contentious responses to attack ads from each candidate.

Reives: “We should be investing that surplus money into the programs that are currently underfunded, primarily education. That money could also go toward providing direct relief to North Carolinians.”

Petty: “Any surplus over the amount needed to fully fund a ‘rainy day emergency fund’ should be returned to the taxpayers.”

Kyle Ingram contributed to this story.

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