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RALEIGH — School systems would choose how to cut their own budgets under a spending deal that House and Senate leaders reached Monday night.

The state budget is more than a month overdue, and the budget compromise still faces two days of votes in the House and Senate, which could begin today.

“There are jobs lost,” said Rep. Henry “Mickey” Michaux said. “A lot of them are vacant positions, but there will be live bodies lost.”

Budget writers could not say how many state workers might lose jobs under the $18.7 billion plan because final details were still being drafted by the legislative staff Monday night.

Even if the budget passes this week and Gov. Bev Perdue agrees to it, public schools will still face uncertainty as the end of August and start of the traditional academic calendar approach.

School systems will be asked to cut their budgets enough to reduce total public school education by 5 percent from last year’s mark. The state Department of Public Instruction will determine exactly how much each school system will be cut.

Budget writers ordered that schools not allow the number of students per classroom in kindergarten through third grade to rise.

Otherwise, school systems will have a great deal of latitude in how they cut their budgets. For example, they will be allowed to spend money for new textbooks on teacher salaries or shift teaching and teaching assistant positions between grades.

Guilford County Schools Superintendent Maurice “Mo” Green has heard the rumblings coming from Raleigh but he says it’s still too early to tell how the budget will shake out and how that might change things here.

“I don’t know whether it’s the best scenario, in part because I’ve not seen what the details are,” Green said.

The education language was a critical part of winning support from Gov. Bev Perdue , who delivered a veto threat two weeks ago that scrapped a near-deal on the budget. She had advocated for less severe education cuts.

“While sacrifices will be made, I still believe the General Assembly is moving toward consensus on my budget priorities, and a budget agreement is within sight,” Perdue said through a spokesman Monday.

Michaux and other House lawmakers said that Perdue had signed off on the deal. Senate President Pro Tempore Marc Basnight , a Manteo Democrat, said she had not.

“But will she be there? My guess would be yes. The options are not good should you try to change this budget by veto,” Basnight said.

Lawmakers used a variety of methods to balance the budget, including cutting programs in virtually every agency. Those cuts would have been bigger, say the Democrats who control the House and Senate, were it not for federal stimulus funds. Republicans have complained those funds have not been properly accounted for in the budget.

Even with federal help and cuts, budget writers have agreed to raise taxes $1 billion. Those tax increases include:

Surcharges on the income taxes paid by high income earners.

A 1-cent increase in the sales tax.

Hikes in tobacco and alcohol excise taxes.

So-called “click through” taxes to certain online purchases.

To win support from the Senate for the tax deal, House leaders had to agree to send tax writers back to work this fall to draft a plan that would lower the rate on income and sales taxes while broadening the base of items that would be taxed. Senators had wanted to push such a change this year but ran out of time.

Basnight said he hoped the legislature would return for a special session to vote on a tax reform package “before Christmas.”

The vote on the current budget deal may be dicier in the House. Three key mid-level House leaders will be absent from House sessions this week.

At the same time, a coalition of Democratic representatives lead by Rep. Nelson Cole of Reidsville has been resisting the addition of alcohol and tobacco taxes. He said Monday he was told the budget could pass.

“I’ve been told they got enough votes to pass the budget,” Cole said. “I assume they can count, for a change.”

Cole had pushed the idea of legalizing and taxing video poker machines. And he argued that adding taxes tobacco, beer and wine would hurt local businesses.

Rep. Hugh Holliman , a Lexington Democrat and the majority leader in the House, said the budget would pass.
“It’s closer than we like, but we’re double- and triple-checking,” Holliman said.

Staff writer Brian Ewing contributed.

Contact Mark Binker at (919) 832-5549 or mark.binker@news-record.com