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NEWS

$19 billion budget given tentative approvals

Wednesday, June 30, 2010
(Updated 1:41 pm)

RALEIGH — Two House lawmakers from Greensboro provided some of the most vociferous objections to the $19 billion budget the House and Senate tentatively approved Tuesday.

In the end, neither Rep. John Blust, a Republican, nor Rep. Earl Jones, a Democrat, could hold back passage. The House voted 66-49 in favor; the Senate, 31-16. Both chambers must, and almost certainly will, vote a second time today to make the budget deal official.

Gov. Bev Perdue, a Democrat, said in a statement she would sign the budget once it is passed, calling it “a clear win for the people of North Carolina.”

Among the budget’s highlights, it:

* Gives businesses that make less than $1 million a year a credit to offset the annual unemployment taxes they pay.

* Avoids cutting teaching positions, in part by shifting around proceeds from the state lottery.

* Saves $50.7 million by remaking a program that provides in-home services to disabled adults and rewriting the rules to allow fewer people in the program.

The budget spends about $500,000 less than Democratic budget writers anticipated last year, although it still drew ire from Republicans for being both spendthrift and not properly accounting for federal stimulus funds. Lawmakers in both parties acknowledge that next year the state could face a $3 billion shortfall.

Democrats control both the House and Senate, and the budget passed both chambers along mainly partisan lines. In the Senate, Sen. Stan Bingham, a Denton Republican who represents parts of Guilford County, was one of two Republicans to cross party lines and back the budget.

In the House, one Republican, Roger West of Marble, voted for the budget and two Democrats, including Jones, voted against.

“This budget is not good enough. We can do better,” Jones said, winding up the first of three pitches he made to reject the budget and insert language legalizing and taxing video poker into the bill. The games, he said, could produce $50 million a month in revenue for the state and offset cuts made to human services such as in-home personal care services.

“There really is ... really no appetite to have us move in the direction you would have us go,” Rep. Paul Luebke, a Durham Democrat, told Jones.

Jones, who lost his primary this spring after campaigning heavily on the video poker issue, pushed back, calling the budget “unacceptable” and urging colleagues to vote against the measure.

While Jones blasted colleagues for not raising enough revenue, Blust argued that the budget spent too much and reflected few Republican ideas.

“You just don’t want to hear some of our proposals,” Blust said, directing his frustration at Democratic leaders and calling the budget “rigged.”

Democrats shot back that Republicans had not fully participated in the budget process and were imposing unrealistic expectations on the state.

“Saying that we should both cut taxes and find a couple billion dollars in cuts is like telling us that you can drink chocolate milk every day and you might lose weight — it ain’t going to happen,” Raleigh Democrat Rep. Deborah Ross said in response to Blust’s comments.

Most of the debate on the House floor was focused on how the state had accounted for $518 million in supplemental Medicaid money that Congress has vacillated on providing. The budget lays out eight specific cuts to make if only part or none of the additional federal funding materializes.

“You can’t spend wishes and you can’t appropriate hope. We don’t have the money,” Lincolnton Republican Rep. Johnathan Rhyne Jr. said.

Democrats said it only made sense to give the governor flexibility in dealing with money that may or may not come from Congress.

“The budget does the best that it can do to address the multiplicity of needs we have in our state,” said Rep. Alma Adams, a Greensboro Democrat and one of the lead budget writers in the House.

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

 

Accompanying Photos

File photo (News & Record)

Photo Caption: North Carolina legislative building in Raleigh.

In the budget

Among the provisions in the state budget are:

*  $1 million in new funding for the N.C. A&T-UNCG Nanoscience School, which will allow the program to hire staff as planned in previous years.

*  $1 million in new funding for additional faculty and staff for the A&T engineering school.

*  Permission for UNCG to spend approximately $17 million in previously unused borrowing to build an underpass that will connect the campus to the Lee Street area.

*  $175 million in borrowing: $55 million will buy research equipment for the university and community college systems; $120 million will be split between the universities and the rest of state government for the upkeep of buildings.

*  Elimination of $11.9 million for replacement school buses in the 2010-11 school year.

*  Saving $30 million by raising community college tuition by $6.50 per credit hour for in-state students and by $7.20 per hour for out-of-state students.

*  Reduction of funding for Smart Start early childhood program by 2.5 percent, or $5 million.

— Staff and Wire Reports

Comments

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casper

June 30, 2010 - 8:50 am EDT

Lets not take our medicine now, lets push it until next year when the 3 billion dollar deficit hits. Lets do our best to mirror the financial mess in California, New York, and Greece. This is typical Liberal Ideaology and is destroying our future generations. REMEMBER IN NOVEMBER..............

rockinghamgal

June 30, 2010 - 9:46 am EDT

Sure, let's raise the community college tuition so that all of the out of work residents of North Carolina and their children cannot better themselves with education. Thanks Bev's boys and girls in Raleigh! Smart thinking.

igliigli

June 30, 2010 - 9:51 am EDT

UNC's and NC State's response to the budget cuts is to waste even more money on sports.

drewwes01

June 30, 2010 - 12:50 pm EDT

Why the reference to UNC and NC State sports? Has there been some recent news about their sports departments blowing through public money?

I agree that the state should not appropriate public tax dollars to benefit sports programs/departments at public universities. I believe those departments should be self-sustaining if they are to operate. (the thought that the state of NC plays UNC-CH $1mm to upkeep the Smith Center is incredible considering the revenue generated by the UNC bball program) But if the athletic programs are self-sustaining they can continue paying big salaries and building new facilities. They generate large sums of revenue and people donate significant amounts of money for athletics.

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