News-Record.com

Thursday's lead editorial.

One thing you can say for Gov. Mike Easley: He’s sticking to his word.

He repeatedly has promised to raise teachers’ salaries to the national average. He also has vowed to fix the state’s mental health system.

His $21.5 billion budget would do both. It would raise teachers’ salaries by 7 percent, up to the national average. It also provides $66 million for mental health reform.

But Easley can’t fulfill his promises without the General Assembly’s backing. And he’s not likely to get that.

In a troubled economy (and during an election year), lawmakers probably won’t support Easley’s proposal to increase the so-called sin taxes.

Easley wants to raise the cigarette tax by 20 cents to pay for the teachers’ salary increase and to raise alcohol taxes to pay for mental health reform.

Teacher pay
In the last three years, public school teachers in our state have seen their salaries increase three times. That has provided about a 17 percent pay increase. Easley argues that another increase is needed for their pay to equal the national average. But just comparing salary figures without considering other factors provides a false picture.

The John Locke Foundation in Raleigh annually compares states’ average teacher pay but adjusts for cost of living, teacher experience and pension contribution. Its latest study found that North Carolina teachers’ pay is above, not below, the national average, ranking 10th-best in the nation.

Even if a pay increase were justified, Easley’s payment method isn’t. Why should a cigarette tax pay for teachers’ salaries? Shouldn’t money collected from smokers be directed instead toward health programs?

Mental health reform
At least Easley’s suggested increase on alcohol taxes has more of a connection to the mental health reform it would pay for.

Still, Easley’s proposal — 4 cents more on a can or bottle of beer, 3 cents on wine, 4 percent on liquor — might not be the best way to pay for needed reform. The state already taxes beer at a higher rate than most states. Maybe instead of increasing taxes, program cuts are in order. Surely, in a $21.5 billion budget there’s a way to find $66 million for the needed reform.
Highway Trust Fund

One good thing Easley has proposed is to divert less out of the Highway Trust Fund. State legislators have become accustomed to creative ways of financing. One of their more egregious acts has been to move Highway Trust Fund revenue into the general fund. Easley has recommended a $25 million reduction from the expected $172.6 million transfer, a first step in phasing it out.

But why take years to end the transfer? Over the next 20 years, the state faces $65 billion in transportation projects. Easley should end the diversion of highway fund money — and leave a legacy honoring fiscal responsibility in government.