Reduced Income From Fines And Fees Means Bad News For School Budgets

With fewer cars on the road and court dates delayed, the state is taking in a smaller amount of fines and fees than normal. 

Car registration fees, gas taxes, and vehicle sales tax have taken hits. Officials say that general revenue from courts is also being wiped out due to closures. Data from The Office of State Budget and Management shows these revenue sources — which feed into the state's school system — have been reduced by $30 million.  

The North Carolina Department Of Transportation is projecting a half-billion-dollar loss for this coming fiscal year, lowering its anticipated revenue from $4 billion to $3.5 billion. 

According to the News & Observer, these shortfalls in civil penalties and other collections are exposing the state's dependence on fines and fees as a revenue source. North Carolina is the sixth most fee-dependent state in the country, which critics say translates to those with less paying more. Court fees in particular disproportionately impact poorer communities and communities of color.

Analysis from the Brookings Institution indicates that higher corporate tax rates and reconfigured individual income taxes would provide a more stable and equitable revenue source.