Tues: Money, Money, Money...

Created by Laura Leslie
posted at 2010-06-01 22:16 | Last modified 2010-06-02 11:18

Slipping the surly bonds

The Senate will vote Wed on S1378, a $451M bond package aimed at boosting higher ed programs in science, tech, engineering, and health care. The 20-yr “special indebtedness” package doesn’t require voter approval. Here’s how the spending would break down:

Repairs & Renovations Fund – $130M 2010-11 – $70M for UNC, $59M for other facilities
Equipment – $55M 2010-11 – $22M to UNC system, $33M to community colleges
NCAT new engineering bldg – $20M in 2010-11, $84M in 2011-12 = total $104M
NC State engineering bldg 4 – $20M in 2010-11, $141M in 2011-12 = total $161M

The measure cruised through Senate Finance today, largely on the strength of its bipartisan sponsorship by Alamance Dem Tony Foriest and Wake Republican Richard Stevens. Foriest says the state could save 30% by building now during the recession. He says it’s a targeted investment in R&D and a future workforce that could keep the state from becoming part of the 21st century Rust Belt left behind by offshored manufacturing jobs.

"Higher education projects at both the university and community college level are focused on engineering, we’re focusing on science and technology, we’re focusing on health care," Foriest told the committee. "And these mirror, I believe, the industries that North Carolina would like to engage in in the future.”

Stevens was more blunt: “We can’t afford not to do this. "

Stevens says the state can afford the debt. But some of his fellow Republicans disagree. Minority Leader Phil Berger (R-Rockingham) says no one thinks fostering science and tech jobs isn’t a good thing to do, but this just isn’t the time for the state to take on more debt. "We’re looking at a 3 billion dollar hole next year. And we’re talking about borrowing more money that’s going to increase that hole next year by 18 to 20 million dollars. Now, would you do that in your personal life?"

As you’d expect, the bond package has strong support from the institutions it would benefit. The roll-call measure’s being fast-tracked by Senate leadership, which means votes Wed and Thursday – whether or not Davie Republican Andrew Brock gets the answers he didn't get today about how community colleges use the resources they have now. (Because hey, why would you want to know that, right?)

Hey, buddy, can you spare half a billion?

House Approps takes up the budget Wed morning at 9am. The printed bill came out today. Finance co-chair Pryor Gibson (D-Anson) said this afternoon the plan is to vote it Thursday, stay late, and take a final vote just after midnight Friday. After that, it goes back to the Senate, which won’t concur, and then off to committee.

Trouble is, Congress has left a gaping hole in the numbers. Last week, the House stripped out a provision that would have extended federal Medicaid assistance to states for an additional six months. That’s worth about $489M to NC – money the state Senate counted on in its budget, too.

You can’t blame them for expecting it. More than 25 states wrote the ARRA extension money into their budgets. But NASBO head Scott Pattison says recent debt crises in southern Europe have fueled rising Congressional concern about deficits. What looked like a sure thing in April got a lot less popular in May.

According to the grapevine, House budget writers worked late Thursday on Plan B, a contingency budget $489M smaller than the spending plan they’ll roll out tomorrow. But don’t expect to see it unless Congress fails to pass the extension.

In reality, it probably won't come to that. The FMAP extension was included in the (US) Senate budget, so it’s “in contention” (aka “fair game”) in conference committee. And let’s face it - the odds of congressional Dems hanging half their state-level peers out to dry in an election year is pretty darned slim.

But still...

In the House Finance budget hearing today, Minority Leader Skip Stam (R-Wake) pointed out the elephant in the room: "Since we’re the Finance committee, can we recommend a bill that on its face is unbalanced by $400M? I’m not making a speech, I’m asking the question.”

Finance co-chair Paul Luebke (D-Durham) answered tersely, “Yes, I believe we can.”

Hear the whole exchange here:

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Luebke’s fellow Finance co-chair Jennifer Weiss (D-Wake) was a little more forthcoming.

“There’s been an understanding that it was under consideration," Weiss said. "But we were hopeful. And I think just in the past couple days we’ve got the bad news. I tend to be an optimist, and I’m still hopeful… We are going to move forward with our budget projections, and if we have to have contingency planning, we will have contingency planning. But at the end of the day, when the House and Senate get together and agree to a conference report, we will have a balanced budget.”

So there you go. If you don’t want the Hons to be here in August, this might be a really good time to write your Congressperson.

Honors

In honor of Memorial Day, Sylva Dem Phil Haire took a moment today on the House floor to recognize a familiar Jones St figure, Zeb Alley. Sure, he’s one of NC’s top lobbyists, but you might not know he’s also a decorated Korean War veteran. Haire's comments are well worth a listen.