The Senate hit the snooze button again tonight with yet another continuing budget resolution, H1504. It reduces spending a little more than the last, taking it from 85% to 84% of levels in last year's budget. (Fiscal staff says the lower level is a better match to actual revenue estimates.) 

The Senate version of H1504 is also open-ended, just like their last CR.  And – déjà vu – the House still doesn’t like the idea.  House Finance Co-Chair Paul Luebke says his side wants a date certain, preferably in July.

"We’re moving very, very close. So it’s just a question of whether one week will be enough, or if we need to go on the side of caution and go for two weeks." 

Luebke confirmed what other sources have said: the spending plan (the “long sheet”) is pretty much hammered out, but they can’t finish up till the two Finance teams come to terms on how to raise $990M.  And it doesn’t sound like there’s much progress on that angle.  The House made a tax package offer Saturday, but the Senate declined to come back early Monday to discuss it.  They’re meeting again at 8:30am Tues.

Luebke also said he isn't optimistic about the House's appetite for sin taxes.  That and more here. (3:47)

Overheard

Lt. Gov. Walter Dalton copped to a little gavel envy at tonight’s joint session.   After adjourning the Senate, he was heard on a mike telling House Speaker Joe Hackney, "Man, that's thing's loud!  That’s authority!"

Weekend highlights

• The N&O’s Joe Neff and David Raynor had a great exposé Sunday on the misdirection of victim restitution payments. State Attorney General Roy Cooper felt compelled to respond to it today. (And why on Earth did the N&O give a hospital food story more real estate than this on Sunday's  front pager? I'm asking seriously.)
• Charlotte’s Gary Wright also had an excellent piece on the administrative screw-up that led to the release of serial killer Patrick Burris, who promptly killed 5 people.    
• Also at the Char-O, Mark Johnson says the new Nag’s Head pier is taking a beating from budget critics on both sides of the aisle.
• Jack Betts considers temporary taxes and permanent reform.  
• And disgraced financier Bernie Madoff gets to serve his time in NC, but former Speaker Jim Black doesn't.

Feline update

For those of you who were interested in the Capital Kittens, there’s one more piece of good news: the mother cat was caught this weekend by the intrepid Roberta Stavredes, and has been since been reunited with her brood.  The kittens have all been placed, but Mama still needs a good home.  If you can help, talk to Roberta at the front desk.  

Comments? Drop me a line.

No, not THE budget.  Finance chairs are planning to meet Saturday (and possibly Sunday) to work on a compromise tax package.

The "Budget" I'm referring to is one of the four tiny kittens who've been camped out with their mom in front of the legislature for the last week.  This afternoon, rescue volunteers came out with traps and tuna and rounded them up, much to the relief of their fans.  (The kittens were living just yards from Jones St.)  

I did a story about it for this afternoon; if you missed it, it's here.

All four kittens already have homes, thanks to the tireless advocacy of front-desk staffer and tour guide Roberta Stavredes.  She's the hero of this story.  She's been feeding the cats twice a day, burning up the phone lines to find them homes, and tracking down a rescue group to help get the feline family out of harm's way.   

Thanks, too, to Deb and Laura with IAR, who spent a long, hot afternoon out front, waiting for the kitties to bite.  The mother cat hadn't yet been caught as of this evening, but they say they'll keep coming back till they catch her, too.   (If you're inclined, they welcome donations.)

The last kitten to be adopted? "Budget," of course.  And the scrappiest of the bunch?  That'd be "Speaker."  (He's the one pitching a fit in my story.)

Sometimes the jokes just write themselves.

Comments?  Drop me a line.

It does a Body good

The Senate held onto its title at today's legislative milk-chugging contest, but not by much.

The annual event, put on by the Ag Dept., is a publicity stunt for NC’s dairy industry.  "Chugging" is kind of a misnomer, though - it’s more like a two-round sipping relay, with each member taking turns  slurping milk through a straw, one pint at a time.

Before an enthusiastic crowd of about a hundred lawmakers, lobbyists, and staffers, the House team of Roger West (R-Cherokee), Arthur Williams (D-Beaufort), and anchor David Lewis (R-Harnett) faced off against last year’s Senate champs Bob Atwater (D-Durham), Joe Sam Queen (D-Haywood), and anchor Andrew Brock (R-Davie).  (Longtime competitor Dewey Hill served as House coach this time after losing track of his pints last year.)

Lewis and Brock went mano-a-mano.

“Andrew,” Lewis said, popping the plastic ring on a milk bottle, “This is the sound [crack] of your defeat.”

Brock just shook his head. “You can talk the talk, but you gotta walk the walk.” 

“The Senate sucks!” Lewis shot back.

Unfortunately for Lewis, he was right.  The final leg of the contest was a head-to-head between the two Republican anchors, and in the end, Brock won out – by one slurp.

Delayed? Check. Derailed? ...

Supporters of annexation reform are getting a little frustrated with the hurry-up-and-wait progress of H524.  After a stop-and-go couple of weeks, the bill finally made it to the House floor today, only to hit another detour when Budget chair Mickey Michaux asked for a fiscal note.

Michaux moved for the measure to be sent back to Approps. The bill’s bipartisan sponsors argued against re-referral, pointing out that a fiscal note could easily be prepared without removing the bill from the calendar.  But other Dems argued that the measure needs “some changes” affecting the title of the bill, which can only happen in committee.

The re-referral vote was a tie – 59-59.  Speaker Joe Hackney, who only votes to break a tie, cast an Aye vote to send it off to Approps.

Michaux said on the floor he could move the bill through Approps pretty quickly. But after session, he said it would probably take “a couple of days” for fiscal staff to figure out how more money the Local Government Commission would need for the software and staff to handle its proposed annexation oversight role.

Republican sponsor Edgar Starnes (R-Caldwell) thinks he knows why Dems wanted to send the bill back to committee. “I know there are some Democrats on this floor who won’t vote for the bill with a referendum in it,” he said after session.  Makes you wonder what they’re planning in Approps.

Back at the ranch (or duplex, or etc.)

Anti-annexation advocates say they’re tired of getting the runaround at the statehouse.   Rowan County Barbara Earley helped to fend off a Salisbury annexation of her home last year.  She's been to Raleigh five times in the past two weeks to support H524.  Earley thinks people who are about to be annexed should have some say in the matter. And she thinks lawmakers are trying to wear her out.

"We’re really perplexed. We’ve come here so many times and been put off. It’s time consuming, it’s expensive, you know…but we’re not gonna give up.  We will never give up."

H524 would limit how cities can use forced annexation, and give opponents a way to fight it via referendum.  It could return to the floor for a vote next week.

A little less “conversation”

Lawmakers are one vote away from modernizing some of the state's divorce laws.

NC is one of just a handful that allows a betrayed spouse to sue his or her spouse’s lover, even after the couple has separated.  Any offending “third party” can be sued for alienation of affection or criminal conversation (a/k/a adultery) right up till the day the divorce is final. 

H1110 sponsor Melanie Wade Goodwin says “hearts-balm torts” were part of English common law, and came over here with the colonists. .

"They are torts that are based on the concept that spouses – in most cases, women – are the property of their husbands.  And with the evolution of our society and different attitudes about the role that women play, these are outdated torts that need to be done away with."

Goodwin’s bill doesn’t quite do away with the laws, but it would limit their reach. Her measure would end third-party liability as soon as a married couple separates and no longer lives together.   The measure passed the Senate today by a wide margin; House concurrence could happen as soon as Thursday.

Comments?  Drop me a line.

Governor Bev Perdue today rolled out a tax hike proposal roughly double what’s on the table in 612.  She says her plan is the “only roadmap” or “pathway” to a balanced budget that avoids deep cuts to education and other vital services.

"I believe it’s critical – and I really do fundamentally believe it’s critical - that this state remain true to public schools and to education, and that the general assembly has an obligation to act on behalf of all those kids… I urge our friends in the GA representing folks across this state to go to work, and to do this job quickly."

One of the key points of Perdue’s plan is a one-year, one-cent sales tax increase. The state’s last “temporary tax” lasted about 6 years. When the AP’s Gary Robertson asked why voters should believe this one would be shorter-lived, Perdue responded, “Because I’m the governor.” 

Perdue’s press op only lasted about five minutes. You can hear the whole thing here.

"Meh"

House and Senate budget negotiators were largely unimpressed by Perdue’s call for a $1.6B tax package.   Senate Maj. Leader Tony Rand (D-Cumberland) said the governor’s input is always welcome, but also noted that negotiators don’t really need to be urged to “go to work,” having been at it since January.   He also says any solution that doesn’t involve major tax reform would just be “smoke and mirrors.”

"This is a different time. None of us have ever really experienced a time like this.  And I have said and will continue to say it is far more important what we do here than how quickly we do it."

More from Rand here (6:34).

On the House side, Senior Budget Chair Mickey Michaux (D-Durham) said the governor’s plan doesn’t seem to offer any new ideas - just a combination of various House and Senate tax proposals that are already in dispute.

"I just wish she’d come out with it a lot sooner than today…We’ve been at work all along.  She’s just proddin’ us along, that’s all."

Michaux predicted a rocky road in the House for Perdue’s recommended sales and cigarette tax hikes, and called her $1.6 number “not realistic.”   His unedited comments are here (4:02).

Family (Bow) Ties

WRAL is reporting tonight that Rep. Ty Harrell (D-Wake) is on the receiving end of a divorce filing that alleges he was unfaithful on multiple occasions.   Harrell told WRAL the filing “came totally out of the blue,” but says he and his wife are focused on the well-being of their sons.”  More here. 

Derailed? 

The Eminent Domain bill, H1268, took an unexpected detour today.  Despite strong bipartisan sponsorship, the House voted 60-56 (mostly party-line) to send  the measure back to House J2 on a motion by Lucy Allen (D-Franklin).  Dem leaders lined up to support the re-referral, citing concerns about amending a potential constitutional amendment on the House floor.  Chief sponsor Skip Stam (R-Wake) says he's baffled by the reversal - and he's not betting on whether it'll make it back to the floor this year, either.

Comments?  Drop me a line.

Governor Bev Perdue just sent a letter to lawmakers along with this menu of tax changes she says would raise $1.6B. 

Some highlights:

• One-year temporary sales tax increase of 1 cent.
• Cigarette tax - 50 cent increase per pack. 
• Beer up by 2 cents; wine, 8 cents; liquor, 2%.
• Sales tax would be expanded to cover new services, ranging from cosmetic surgery to car repairs.
• Individual income tax rates would actually fall slightly for all but the very wealthiest. 
• The corporate tax rate would fall by an entire percent in 2011.

Check out the whole thing here.  It's interesting.

The Gov will be speaking about it at 3:15pm. I'll let you know what she says.

Comments? Drop me a line.

Roadblock

A few days off haven’t put state lawmakers any closer to a budget deal.  House Senior Budget Chair Mickey Michaux (D-Durham) says the House and Senate hit an impasse before the Fourth of July weekend, and as of tonight, talks had not resumed.  Both sides agree on the need to raise taxes, but differ on which taxes they should raise.  And Michaux says they don’t agree on how to spend the new revenue, either.

"The hang-up is how we want to divvy up the money. We had divvied up the money – we put money into education, health and human services, and JPS, because they took the bigger cuts. The Senate wants to put more money into education, and less money into HHS and JPS. And that’s where we are."

Michaux and fellow House budget chair Alma Adams (D-Guilford) say House negotiators are ready to go whenever the Senate decides to return to the table. The budget deadline is July 15th.

S/he said,  s/he said

A measure headed for the Governor’s desk would be the first step toward making state laws gender neutral.  S870 directs the General Statutes Commission to identify places in state law (including the Constitution) where the masculine pronoun is used.  The panel would recommend substitute wording that isn’t gender specific; lawmakers would decide whether to accept the new wording. 

Critics of the idea say the Constitution shouldn’t be subject to political correctness.  But Rep. Deborah Ross (D-Wake) says maybe it’s time for the revered document to catch up to the 21st century. 

"An example would be -- the Governor is referred to as "he" throughout the entire Constitution, and we have a female governor right now."  

Ross explained that the gender-neutral language would not involve "he or she," or, heaven forbid, the dreaded "s/he."  She says the GSC would try to substitute the title of the position where gendered pronouns are currently used.

But that assurance wasn't enough to keep the dreaded "political correctness" from rearing its head, leading to an entertaining exchange between Ross and Rep. George Cleveland (R-Onslow).  Ross suggested that Cleveland would prefer not to have a female governor.  Cleveland responded that he doesn't have a problem with the "female race."  The back and forth is here (3:52).

Ross says the project (at least the initial phase of it) won’t cost the state any money, since the commission isn't paid for its work. But it could be years before they complete the task. 

(And yes, the Governor is expected to sign it, in case you were wondering.) 

Imminent Domain?

House lawmakers are expected to open debate Tuesday on a constitutional amendment to limit the government’s powers of eminent domain. 

Current law allows municipal and state government to force land-owners to sell private property that’s needed for a public purpose, like a road or a jail.  But in 2005, the US Supreme Court decided that economic development was among the "public uses" for which eminent domain could employed.  House Minority Leader Skip Stam (R-Wake) couldn't disagree more. 

"People want to be secure in their homes and their property, and one thing they don't want to have to worry about is that their property will be taken for other than a public use, for example taking their property and giving it to someone else for economic development."

Stam’s proposed amendment would ban governments from taking private property for the purpose of handing it over to a third party.  A similar proposal in 2007 sailed through the house 104-15, only to wither on the vine in a Senate committee.  This year's version, H1268,  also has dozens of bipartisan co-sponsors and was expected to sail through in similar fashion.  But it was pulled from tonight's calendar, Stam says, after he got word House Dems were getting antsy about supporting it. 

Stam joked he hopes his fellow prime sponsor,  Sen. Dan Blue (D-Wake), can "calm the natives" in the majority caucus.  

"And if the problem is just that I'm the sponsor, they should remember that even a stopped clock is right twice a day."

If the legislature approves H1268, the amendment would go before voters on the primary ballot next May.

Comments? Drop me a line.

(I was hoping to post the roundup this morning, but got tied up putting out a series of fires.  Sorry about that!)

The AP’s Gary Robertson has a nice synopsis of the various competing tax packages proposed to backfill state budget cuts.

Greensboro’s Mark Binker weighs the impact of campaign donations on the budget-writing process.

At the VA Pilot, Catherine Kozak looks at a rather odd House budget provision that would cut funding to one NC park and change the oversight of another. 

Binker also had a great red-tape story about stimulus money and state bureaucracy.  Classic.

Winston-Salem’s James Romoser posted a good overview of the annexation reform debate in House Finance last week. 

The N&O’s Tommy Goldsmith explains the backstory behind this nasty ad by home care advocates upset with Senator Doug Berger.   

And also at the N&O, Andy Curliss says the Easley scandal could spur further ethics reforms. 

(Next Mon., I promise to try to get this thing posted by noon.)

Comments? Drop me a line.

After two and a half years of spending my Sunday mornings here at the Tavern, I've decided to move the Roundup to Monday mornings.  My apologies to those of you who've enjoyed reading it on Sundays, but I'm looking forward to having a little more weekend in my weekend.  Hope to see you here tomorrow!

Time out

Senate Finance co-chair David Hoyle confirmed today budget negotiators will be taking the weekend off after a week which accomplished little besides a deadline extension. Hoyle says the Senate and House are still far apart philosophically, and for now at least, that’s not likely to change.

Governor Bev Perdue called on lawmakers today to get on the stick and pass a budget – a time-honored gubernatorial tradition that means pretty much zip as far as the talks in 612 go. Hoyle was deferential, but not optimistic.

"Her idea and ours are different. I respect her, love her, she’s a dear friend.  But you know, we’re in tough times. We’re gonna do the best we can do. "

Hoyle's unedited comments are here.

Earlier this week, House Speaker Joe Hackney made the case for the House’s position.  That’s here.

So there

Most of us onlookers were mystified by Sen. Maj. Leader Tony Rand’s decision to delay pretty much everything on the Senate’s 5-page calendar today.  Senators and staffers blamed it on budget talks, but a source who ought to know says it was actually an intercameral pi**ing contest.  

The Speaker and the Pres Pro Tem are said to have met this afternoon and "all is well now." So, okay, then. 

Baby Daddy (not?)

The AP’s Mike Baker caught former Edwards aide Andrew Young entering the federal courthouse in Raleigh today, where a grand jury is meeting to weigh allegations that Edwards misused campaign money to underwrite his affair with campaign videographer Rielle Hunter.

Edwards has denied any wrongdoing, but the NYT reports Young’s book proposal says Edwards offered to “take care” of his aide “for life” if Young would claim paternity of Hunter’s baby.  Like sands through the hourglass…

On the agenda:

Thursday kicks off with a regular crowd-pleaser: Annexation Reform (H524) is up in House Finance at 8:30AM.  C0-chair Paul Luebke said today the committee has no intention of rehashing the arguments covered in J2 last week. They’re aiming to move it out in one day.  Listen here.

Comments? Drop me a line. 

Tonight’s edition brought to you by the letter F:  I’m being assisted by a foster kitten, Fergus, so please forgive any R4tttttttttttttttt typos I miss. 

Fifteen it is

A week of drama notwithstanding, there wasn’t much shouting today as the Senate agreed to the House’s 15-day continuing resolution.  The Senate had argued for an open-ended deadline extension, but Senator Linda Garrou told her colleagues today it wasn’t to be.

"The House asked that we put a – what you might call a “drop-dead date” on here, and  I may just drop dead by that point if we don’t get something done."

The Governor signed the CR late this afternoon. The new budget deadline is July 15th.

Four-legged

It’s a big week for pets on Jones St. Today, the House approved a measure (S467) aimed at easing overcrowding at county animal shelters by allowing county governments to enter into placement agreements with local rescue groups, with no liability for the animals at those outside placements. 

The bill also requires a minimum 3-day hold for impounded animals (other than feral cats) statewide, and requires all shelters to be open at least 4 hours on 3 days a week to let people come in to search for lost pets.  Pets housed offsite must have photos available at the shelter for public inspection.

State HSUS spokesperson Amanda Arrington supports the bill. She says some counties have already enacted ordinances allowing offsite placement. The current bill would let all counties try it.

"I think that it’s a good thing because we have so many great rescue groups around the area. And this allows them to pull some of the more adoptable animals from the shelter and ease the overcrowding for them."

The measure passed the House almost unanimously, and is headed back to the Senate for a final vote.

Four-legged, Part II

Senate Finance today narrowly approved S460, a measure that would require state licensing of puppy mills.  The measure defines a “commercial” breeding operation as 15 breeding females and 30 puppies, not including hunting, herding, or “show” dogs.  It’s a series of loopholes a dog could drive a truck through, never mind a breeder. But advocates say it’s a start.

The measure would ban the breeding of female dogs younger than 18 months and older than 8 years, and would require commercial breeders to get a vet health certification before breeding eligible females. In addition, big breeders would be required to have all dogs seen by a vet at least once a year, and comply with minimal care standards yet to be determined by the Ag Dept.

If this sounds like a no-brainer to you, you might be surprised by the fervor of the opposition.  Lobbyist Joe McClees told the committee today that stories of puppy mill abuses are “fluff,” that existing laws are tough enough, and that this proposal is the first step in a plot by PETA (animal rights activists) to eventually outlaw owning any pets whatsoever.

Bill supporters say all three above arguments are untrue.  If you don’t remember the horrors of the last two NC puppy mill raids, they weren’t “fluff.”  Wayne County Animal Control chief Vicki Faulkner helped rescue nearly 300 dogs from squalor in Goldsboro earlier this year. She told lawmakers today that puppy mills are a pervasive problem, and that current law doesn’t do enough to prevent abuse.

"The statute only covers neglect and abuse at a criminal level, and doesn’t prevent this from happening again in the future,. The intent of this law is to be proactive – to prevent situations from getting to the level of criminal origin, such as animal cruelty."

As for existing laws, there really aren’t any.  Breeders who sell to pet stores or other businesses are regulated by the USDA, but those who sell direct to the public are subject to no federal or state regulation whatsoever.  And, supporters say the PETA connection is nothing more than blatant fearmongering by the measure’s opponents.

Still, plenty of Senators have clearly spent more time listening to those opponents than reading the actual bill.  One Senator after another asked sponsor Don Davis (D-Wayne) about PETA’s involvement and the specter of animal rights.  Andrew Brock (R-Davie) even asked whether a neighbor would have to pay a fee if his backyard dog got pregnant.  

But the best line of the day came from Steve Warren, arguing against the bill on behalf of NC’s AKC-affiliated “dog clubs.”  He says commercial breeders are business owners like any other, but they’re being unfairly demonized.

"In England, they have another name – puppy farmers. That may be a more accurate description. North Carolina farmers are more like – they’re like most citizens, they’re law-abiding and pay their income taxes."

One is forced to assume he’s talking about farms like this, since no one’s writing bills to protect free-range golden retrievers. But here’s the irony: factory pork and chicken farms undergo inspection for animal health.  Puppy mills?  None.

The measure may or may not make it onto the Senate floor, depending on its level of support among Democrats. 

Farewell

Today was the last day on Jones St for veteran NCNN reporter Matt Willoughby.  He’s been around the place for twenty-some years - as long as the most senior legislators – and covering it fulltime for Capitol Broadcasting.for more than ten, making him the de facto den father of the press corps.

Matt announced earlier this month he’d taken a buyout from NCNN.  Today, a host of friends gathered to see him off in the 1300 court. (Okay, some probably came for the cake, but still.)   Matt’s charming wife, Kim, was there as well.

Matt says he doesn’t know what he’ll do next. But he’s too young to retire, and since Kim probably doesn’t want him hanging around the house on a long-term basis, I’m betting we’ll see him going to work for some politico or other sometime soon.  We’ll miss you, Matt.

Comments? Drop me a line.