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Friday: Fits and starts
posted at 2007-07-20 23:58 | Last modified 2007-11-14 10:38
Bully pulpit
Gov Mike Easley waded into the state budget debate Friday with an executive order for 114M in education spending. Easley said he wouldn't have intervened if he'd had any indication state lawmakers were close to an agreement. But there isn't, and they aren't, so he did.
Easley added insult to injury by accusing lawmakers of wasting time, and threatening to veto any proposal to use the quarter-cent temporary sales tax proceeds "willy-nilly." He wants to see the tax revenue earmarked for scholarships for low-income students and tax cuts for low-wage workers. If lawmakers send him anything else, he says he won't sign it.
And, Easley added, in the time it would take him to NOT sign the bill, legislators could miss out on the chance to extend the temporary taxes beyond July 31st, which would mean they'd go back to the table with about 300M less to throw around.
The Gov also reiterated his call to keep Medicaid reform within the budget bill, and said lawmakers opposed to the land transfer tax option are "scared of realtors."
Oh, really?
Unsurprisingly, lawmakers were less than receptive to Easley's pugilistic tone. House budget chief Mickey Michaux questioned Easley's understanding of the legislative process and even called him "antsy" for good measure.
Michaux insists budget negotiations are being conducted in a "timely manner." When I pointed out they were already a month behind schedule, Michaux replied that, thanks to the continuing resolution passed last month, the state hadn't had to put any essential business on hold. (Okay, fair enough...but if I told the IRS the Feds could function without my tax payment, do you think they'd let me pay late? Hey, I'm just askin'.)
On the Senate side, budget co-chair Linda Garrou informed a gaggle of reporters that the budget is "complicated" - an explanation she apparently felt excused her from having to answer messy questions about caucus politics. You can hear the whole exchange here. (For the record, I don't think the IRS would let me use the "It's complicated" excuse, either.)
Garrou also scoffed at Easley's comment on realtors, saying that Senators aren't afraid - they simply appreciate realtors' contribution to the state's economy. (Especially the political sector, perhaps.)
Senate leader Marc Basnight joined the fray Friday afternoon. He says while he supports Medicaid reform, it doesn't belong in the budget because it's a policy issue, and "you people" (aka the press) "say we shouldn't do that in the budget." (This from a legislator whose middle name is "special provision.")
Basnight said that while most of his caucus supports the House proposal to give counties the option of a transfer tax, 7-9 Senate Dems say they can't support it. So passing it would require Republican help - something he says "won't happen" if the transfer tax remains part of the budget.
What's next?
At this point, each side is waiting for the other to blink. House negotiators are holding fast to the transfer tax option the Senate doesn't like. The Senate is holding on to the temporary sales and income taxes as its bargaining chip. And Easley's threatening a veto if he doesn't get his way.
In the middle of it all is Medicaid relief - something Easley says has to happen this year, and not just as one-time relief, either. The punchline? We could all be on Jones Street for a very, VERY long time.
I'll be on Headline Saturday this week with WRAL's David Crabtree and Cullen Browder, Greensboro's Mark Binker, and the N&O's Melanie Sill and Barry Saunders for a half hour roundtable. You'd be amazed how fast a half-hour can go with six folks around a table. It airs at 7:30pm Saturday on WRAL (5).
Commens? Drop me a line.
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