news-record.com

RALEIGH (AP) — A rare statewide public hearing Tuesday to seek comments on how to manage North Carolina spending during the state's worst fiscal crisis in a generation brought pleas not to cut programs for children, schools and the poor.

Several dozen speakers told House budget-writers in person or through technology to protect what they called necessary services and benefits during this budget cycle, including community college tuition breaks for prisoners and longevity pay for educators.

"I know that these are tough times," Laveta Weatherington, an art teacher in the Pitt County Schools, said by video conference at Martin Community College. "Please don't add this burden to the teachers."

Earlier Tuesday, Gov. Beverly Perdue announced that she would force state workers to take a 0.5 percent pay cut from their annual salaries through the end of June as April 15 tax collections were worse than projected.

The news meant lawmakers likely will need to find another $1 billion in spending cuts or additional taxes to close a budget hole entering the new fiscal year July 1, or a $4 billion-plus budget hole. That's nearly 20 percent of the $21.4 billion spending plan approved last summer by the Legislature.

House Speaker Joe Hackney said the size of these numbers make clear that nearly every portion of state government will face some pain in the coming budget.

"We've always tried to enact a budget that is aligned with the priorities of North Carolinians," Hackney, D-Orange, said at the start of the meeting. "In these extraordinary times, we need additional direction from you in making these difficult decisions."

Perdue presented a two-year budget proposal in March. The Senate's version of the plan approved three weeks ago became the target for many speakers, who urged House members to reject what they call the more onerous cuts.

Several speakers opposed cuts to early childhood education programs, saying it would be an unwise short-term solution as more families than ever are depending on subsidized child care while mothers and fathers must look for work.

"The slowing economy does not seem to be slowing the birth rate," said Sarah Norris of Castle Hayne, who operates a child-care center.

Beth Palmer of Raleigh said her twin boys are more outgoing and speak more clearly since they attended a More at Four program, which allows at-risk 4-year-olds to attend preschool for free. A Senate budget provision would reduce funding for the More at Four preschool program by 25 percent and consolidate it with an initiative that rates child care centers.

"They have blossomed into little chatterboxes," Palmer said. "It would be a great loss to future children if you changed the program in any way."

Other speakers took a broader approach, asking that services for the mentally ill be protected and low-income workers not be burdened by higher taxes that affect them disproportionately.

Melinda Lawrence, executive director of the North Carolina Justice Center, said it was time to reform the tax system. The Senate Finance Committee floated a plan last week that would reduce overall rates while expanding the number of services subject to the sales tax. But Republicans and others have criticized the plan because it also would raise overall revenues by $1.1 billion over two years.

"There are families all over this state struggling to meet their basic needs," Lawrence said. "The day has come for a vision and courage in developing a reformed revenue system for the state of North Carolina."

But few participants who stood up to speak asked that the state's budget be cut further or said it was too big.

A few hundred people gathered at the primary committee meeting in the auditorium of the North Carolina Museum of History in Raleigh, but others also participated at 10 community college campuses to participate by video conference. The event also was shown on the Internet.

The committee also has received nearly 2,000 e-mails in advance of Tuesday's meeting, said Rep. Doug Yongue, D-Scotland, a committee co-chairman.