Document Actions
Monday Late Edition: House budget
posted at 2007-05-07 23:55 | Last modified 2007-11-14 10:38
At long last, House budget writers got the pieces assembled for their proposed biennial spending plan, released today. It's due in Finance Tues AM - and maybe PM, too. Co-chair Paul Luebke said tonight he's expecting a lively and spirited debate.
Here's the bill itself, and here's the report.
Highlights:
Bottom line: 20.3 Billion, a bit more than Easley's 20.1 billion proposal. (But then, the House had 260 million more to work with, thanks to the "April Surprise.")
A little less spending than the Gov. on education, justice, and health and human services. A little more - okay, quite a bit more - for rural economic development.
Would extend the remaining half of two "temporary" taxes started in 2001. That amounts to a quarter percent sales tax and a matching quarter percent income tax for the state's wealthiest earners. (NOT a popular idea in the Senate.)
Employee raises would be the same as the Governor proposed - 5% (average) for teachers and community college faculty and staff, 4.4% for K-12 principals and assistant principals. All the rest would get 2.5% plus a one-time bonus of $400.
An Earned Income Tax Credit for low-wage workers
$60 million for Medicaid relief for counties. It's better than nothing, but it's still a whole lot less than counties wanted.
Look, Ma, no bonds
The House plan apparently includes NO bonds. At least, I couldn't find any. Everything the Governor financed with general obligation bonds, the House wants to cover through COPS - certificate of participation financing.
You can find a full explanation here; but in a nutshell, while a bond borrows money up front and then pays it back, COPS financing lets investors pay to build something, then make their money back (plus) from leasing the facility back to the state.
That may sound like a semantic differentiation, but it isn't. Bonds cost less, but are harder to get because they require voter approval. COPS cost more, but don't require voter approval.
So where are the bonds? On the way, most likely. There's no shortage of good causes clamoring for a stake in the state's long-term debt capacity - conservation, water, prisons, roads, school construction. I'd guess the complete absence of bonds from the House budget is a hint we'll see a separate House proposal for a bonds package (probably a pretty big one) in the near future.
Other oddities:
The budget includes $6,000,000 to endow a challenge-grant reserve fund for one "distinguished professorship" (in pretty much any area but sports) at each of the 16 UNC system campuses. Are we really facing a shortage of these? (This is the same UNC system that just cut more than 100 middle management positions as an efficiency measure.)
The House plan also earmarks $750,000 (non-recurring) for an unidentified "illegal immigration" initiative. From the report:
58. Governor's Crime Commission:
Funding for a grant to the North Carolina Sheriff's Association for technical assistance and training associated with immigration enforcement. Funding for this purpose is contingent upon the passage of legislation associated with this initiative.
I'm not sure at this point what that "associated legislation" might be. But I'm sure we'll hear more soon.
Comments? Drop me a line.
& Newsletters
