 |
|
JUNE
11, 2004 |
ISSUE
No. 6
|
2004
SHORT SESSION
|
Published
every Friday during legislative sessions exclusively
for NCCBI members
|
No
tax hikes or cuts on the table
as budget battle moves to the Senate
The
budget battle shifted to the Senate this week after the House
wrapped up its deliberations Tuesday with a 95-18 final vote
on its $15,849,844,954
spending plan. Observers expect the Senate will tinker with
the House blueprint but not push for wholesale changes. Senate
leaders hope to have their version of the budget out for a
floor vote by the end of next week, which would keep the
legislature on track to adopt a spending plan by the start of
the new fiscal year on July 1.
The House budget bill, H 1414 2004 Appropriations Act-1,
doesn’t raise any taxes or cut any, either. It doesn’t
include Gov. Mike Easley’s proposal to cut corporate taxes
for small businesses by exempting their first $20,000 in
income from the tax. The House plan increases state spending
by about $350 million over current levels, with more than half
of the additional outlays earmarked for education. Most other
details about the budget were as previously reported (see
June 4 Bulletin).
Several charts at the end of this newsletter provide a
line-item view of the House budget. Of note, the House budget provides
a flat $1,000-a-year raise for state employees and an average
2.3 percent raise for public school teachers. It includes $59
million to reduce third-grade classes to 18 pupils and funds
another 1,000 slots for the More at Four prekindergarten
program, two of Easley’s pet projects.
Some Republicans again criticized the budget on grounds that
it relies heavily on revenue -- Rep. Paul Stam (R-Wake) put
the figure at nearly $1 billion -- that will disappear next
year, including the additional half-cent state sales tax and
the 8.25 percent state income tax on highly compensated
individuals. Advocates for the poor complained that the
budget cuts $16 million from childcare subsidies.
“I commend the House for their action to protect
education,” said Easley. “We have made great progress over
the past three years toward eliminating the achievement gap,
and this plan provides the resources to continue that
progress. We will continue to work with the legislature
through this budget process to provide a final plan that
reflects North Carolina values and meets the needs of all our
citizens. This budget is still a work in progress and,
traditionally, there are oversights that will be corrected as
the House and Senate come together on a final package.”
The House
passed the budget after considering 13 amendments and
rejecting most of them, including one by Rep. Stephen LaRoque
(R-Lenoir) that would have transferred control of the Global
TransPark to the state Commerce Department. It went down
75-44. Another failed amendment would have removed a 7 percent
increase for community college tuition and eliminated the
$1,000 pay raise for the governor, Council of State members
and state department heads (see chart on page 9 for
salaries of top state officials).
House Speakers
Richard Morgan and Jim Black said the lopsided vote adopting
the budget is proof that their power-sharing coalition is
holding steady.
Key
Senate panel endorses money for One North Carolina Fund
The
Senate is poised to follow the lead of the House and give Gov.
Mike Easley $20 million in emergency funding for the One North
Carolina Fund, so-called “walking around money” he can use
to close important economic development deals. The Senate
Appropriations Committee on Thursday favorably reported S
1169 Emergency Funding for One NC & NEIT.-AB (Dalton),
the companion measure to a House bill that easily passed that
chamber on May 24. Both measures also include $4.1 million for
a community college worker-training fund.
Legislative
Actions
Senate
OKs $520 million measure to buy land for parks
The
Senate gave third-reading approval Thursday to legislation
that would allow the state to borrow up to $520 million to
purchase private land for state parks or to protect military
bases from development. S 1064 Finance Parks and Heritage,
which was approved by a vote of 35-9, would authorize the
Clean Water Management Trust Fund to issue up to $350 million
in debt; the Parks and Recreation Trust Fund, $105 million in
debt; and the Natural Heritage Trust Fund, $65 million, to buy
land. The debt would be created through certificates of
participation, which require no voter approval. The money
would be repaid through a portion of funds already generated
by the deed stamp tax and a portion of revenues from
specialized license plates. Supporters say North Carolina
needs at least $65 million to buy nearly 20,000 acres
immediately to create two new state parks, protect Lake James
in Burke County and insulate Camp Lejeune and Fort Bragg.
 The
House Finance Committee on Tuesday favorably reported S
1063 Eliminate IRB Wage Standard (Hartsell), a measure
that would eliminate the wage standard in the use of
industrial revenue bonds.
Under current law, companies using IRBs, which offer
below-market interest rates, to purchase land and equipment
must pay wages at 10 percent above the local county average.
The bill’s sponsor, Sen. Fletcher Hartsell (R-Cabarrus) said
manufacturing companies and economic recruiters say the
standard is difficult to meet because the bonds often go to
companies that can’t afford to pay wages above the going
rate. The measure, which already has passed the Senate, now
goes to the full House for consideration.
The
House Education Committee voted 20-14 Tuesday to pass a
resolution authorizing the General Assembly to consider a bill
that capping out-of-state student enrollment at UNC System
campuses at 18 percent. The bill, H 1540 Enabling
Resolution/UNC/Out-Of-State Students, would not apply to
the N.C. School of the Arts in Winston-Salem.
The
Senate gave second- and third-reading approval Wednesday to S
1223 Health Insurance Innovations Commission. A companion
bill, H 1463, received second-reading approval Wednesday in
the House.
The
Senate gave second- and third-reading approval Wednesday to S
1219 Dry Cleaning Solvent Cleanup Act Amendments, and sent
the measure to the House.
The
House Transportation Committee on Wednesday favorably reported
a bill that would allow North Carolina drivers to go 13 years
between visits to the DMV if they renew their licenses online.
The measure, H 1394 8-Year Drivers License/Internet DL
Renewal, now goes to the full House for consideration.
Under the measure, the five-year license renewal for most
adult drivers would be extended to eight years. Drivers with
relatively clean traffic records and no recent additional
restrictions on their license could then renew online for
another five years.
State
Government
Penalties
assessed, collected by Labor Department fall sharply
The
amount of penalties assessed by the N.C. Department of Labor
against employers dropped by about half in the past two years
and the amount of penalties collected plunged by about
two-third, according to a year-end report recently issued by
Labor Commissioner Cherie Berry, as indicated in the chart
below:
DOT
activates ‘smart work zone’ on I-40 near Winston-Salem
The
N.C. DOT has finished installing sensors under the pavement on
I-40 in Forsyth and Davie counties to detect traffic
conditions and relay real-time information to message boards
that will alert motorists of alternate routes and delays.
Known as a smart work zone, it is the first in the state west
of I-95. When delays occur, the traffic messages and delay
times are displayed on the message boards in five-minute
increments. If delays reach more than 25 minutes, motorists
are advised to take a detour route, which is displayed on the
message board. Since 2002, the DOT has implemented smart
work zones in Cumberland, Johnston, Nash, and Halifax
counties.
Names in the
News
Ballance
resigns from Congress; special election eyed
Cong.
Frank Ballance (D-1st) resigned his seat in Congress
Tuesday, saying the myasthenia gravis neuromuscular disorder
has is suffering prevents him from carrying out his duties.
Ballance, 62, was diagnosed with the condition in February.
Gov. Mike Easley said he would consult with the state Board of
Elections before calling a special election, as required by
the U.S. Constitution and state law to fill a vacancy in the
U.S. House. Ballance was elected to the U.S. House in 2002,
after former U.S. Rep. Eva Clayton retired from the seat she
had held for a decade. Five Democrats, including former state
Supreme Court Justice G.K. Butterfield of Wilson, and two
Republicans, have filed to seek Ballance's seat.
Dr. Aldona
Wos, a Greensboro physician and one of President Bush's
chief North Carolina fund-raisers, will be the Ambassador
Extraordinary and Plenipotentiary of the United States of
America to the Republic of Estonia. Wos, 49, is Bush's state
finance co-chair. Dr. Wos currently serves on the United
States Holocaust Memorial Council. In addition, she also
serves as a member of the United Way of Greater Greensboro
Board of Directors. Earlier in her career, Dr. Wos served as a
consultant for The Port Authority of New York and New Jersey
and maintained a private medical practice for eight years in
New York, New York. She earned her M.D. from the Warsaw
Medical Academy.
Dr.
Robert Bridges, former Wake County schools superintendent and
an education and management consultant, was named the fourth
recipient of the Jay Robinson Leadership Award given jointly
by the Public School Forum and Wachovia Corp. Dr.
Bridges, the first chair of the Raising Achievement and
Closing Gaps Commission, is credited with moving North
Carolina forward in its effort to close the achievement gaps
among diverse student populations. Commenting on the
award Phil Kirk, chairman emeritus of the State Board of
Education and chair of the Forum’s Jay Robinson Award
Committee, said, “Bob Bridges, like Jay Robinson, waded in
waters few wish to enter. He was clear in his message as chair
of the Raising Achievement and Closing Gaps Commission that,
‘if we are going to close achievement gaps, we must change
the way we do business in the village.’ His statement serves
as a lasting theme for North Carolina’s statewide
initiative.”
Pam
Wortham was named deputy state treasurer and director of
the Financial Operations Division for the Department of State
Treasurer. Wortham is only the second woman to be named a
deputy treasurer. As CFO for the department, Wortham will oversee the state’s banking
operations and well as departmental accounting and fiscal
operations. Treasurer Richard Moore appointed Janice Burke the
first female deputy treasurer in 2003.
Economic
Development
Wire and
cable maker expands in Tarboro
Superior
Essex Inc. (SESX) said it would expand its facilities in
Tarboro, creating 130 new jobs and about $9 million investment
for the state. Superior Essex, one of the largest wire and
cable manufacturers in the world, is the first recipient of a
Job Development Investment Grant (JDIG) in a Tier 1 rural
county. The company manufactures and supplies copper and fiber
optic communications wire and cable products to telephone
companies, distributors and system integrators. Officials said
the expansion would generate a cumulative gross state product
value of about $1 billion and produce a positive cumulative
net state revenue impact of $45.8 million. Headquartered in
Atlanta, Superior Essex has 16 manufacturing facilities in the
United States, Mexico and the United Kingdom that employ about
3,000 people. Since locating in Tarboro in 1999, Superior
Essex has invested $23 million. They employ 235 people.
Tarboro operations include a 300,000-square-foot building, a
warehouse and maintenance. New positions include opportunities
for product testers, machine operators, maintenance and
management and will have an average salary of $28,800 per
year. Under the terms of the agreement, a 10-year grant will
be established. For each year in which the company meets the
required performance targets, the state will provide a grant
equal to 60 percent of the personal state withholding taxes
derived from the creation of new jobs. If the company creates
the jobs called for under the agreement and sustains them for
10 years, the agreement could yield maximum benefits to the
company of as much as $930,000 over the life of the grant.
Pergo Inc. said it would
spend $36 million expanding its laminate flooring
manufacturing facility in Garner and create 86 new jobs.
The company will receive $100,000 in One N.C. Funds, as well
as support from Wake Tech Community College, the Town of
Garner and Progress Energy. Pergo has 227 in North Carolina
and its North America corporate headquarters in Raleigh.
The
Raleigh-Durham-Chapel Hill area ranks third in the nation in
biotechnology, according to a study by the Milken
Institute, behind San Diego and Boston. The Triangle also was
ranked fourth spot in life sciences, including pharmaceuticals
and medical devices.
NCCBI
News
Executive
Committee holds retreat
The
NCCBI Executive Committee held an all-day meeting Wednesday to
review and update the association’s internal and external
priorities. Chair Barry Eveland hosted the meeting at IBM in
Research Triangle Park. Executive Committee members used
laptop computers to contribute their input during discussion
on issues, and their thoughts were displayed on screen for
others to read. After several hours of discussion, the leaders
agreed to continue NCCBI’s focus on government efficiency,
lower taxes and strengthened economic development programs.
The Executive Committee also re-dedicated itself to improving
services to members.
Seated on the left side of the table in the picture above,
from left, are Graham Denton of Charlotte, the Bank of America
executive and second vice chair of the association; Duke Power
executive Ellen Ruff of Charlotte; Sara Lee executive Jerry
Cook; Stephen Miller of Asheville, the Biltmore Co. executive
and first vice chair of NCCBI; and former chair John McNairy
of Kinston. Seated on the right side of the table, from left,
are Eveland, NCCBI President Phil Kirk, and Mary Clara Capel
of Troy, the Capel Inc. executive. Other executive committee
members attending the session included R.V. Owens of Nags
Head, Robert Stolz of Charlotte, Steve Stroud of Raleigh,
Jordy Whichard of Greenville, Paul Wiles of Winston-Salem, and
Smedes York of Raleigh.
Kirk addresses high school graduates
"Business
people tell me frequently that they are looking for employees
who can work together, people who can get along with each
other, and people who can communicate effectively both
verbally and in writing," NCCBI President Phil Kirk told
the graduating class at East Rowan High School on May 28.
"It is through co-operation, not conflict, that you will
achieve your greatest successes." Kirk, a graduate of
East, said, "You can do anything you wish to do, have
anything you wish to have, and be anything you wish to be. You
don't know what you can really do until you try. All you have
to do is to act on your dreams." He encouraged the
seniors at East and also during a baccalaureate speech to
Enloe High School students in Raleigh to "use your
ability. Don't
let life be a passive experience. Take the time to reach out
to those in need. Take the time to serve others. Stand up for
what you believe in and become a volunteer."
|
How the House voted on third reading for H 1414 2004 Appropriations Act-1
|
Total Votes:
113 Ayes: 95 Noes:
18 Not: 5 Exc. Absent:
2 Exc. Vote: 0
| Ayes:
|
Reps.
Adams, Alexander, Allen, B., Allen, L., Baker, Barbee,
Barnhart, Bell, Black, Bonner, Bordsen, Bowie, Brubaker,
Carney, Church, Clary, Coates, Cole, Crawford, Culp,
Culpepper, Cunningham, Daughtridge, Decker, Dickson,
Earle, Eddins, England, Farmer-Butterfield, Fisher, Fox,
Frye, Gibson, Gillespie, Glazier, Goforth, Goodwin,
Gorman, Grady, Hackney, Haire, Harrell, Hill, Hilton,
Holliman, Howard, Hunter, Insko, Jeffus, Johnson, C.,
Johnson, L., Jones, Justus, Kiser, LaRoque, Lewis,
Lucas, McAllister, McComas, McGee, McLawhorn, Mitchell,
Moore, Morgan, Munford, Nye, Owens, Parmon, Pate,
Preston, Rapp, Ray, Ross, Sauls, Saunders, Setzer,
Sexton, Sherrill, Starnes, Steen, Stiller, Sutton,
Tolson, Walker, Warner, Warren, Weiss, West, Williams,
A., Williams, K., Wilson, C., Wilson, G., Womble,
Wright, Yongue
|
| Noes:
|
Reps.
Allred, Blackwood, Blust, Capps, Creech, Daughtry,
Dockham, Ellis, Gulley, Holmes, Luebke, McHenry,
McMahan, Rayfield, Rhodes, Stam, Walend, Wood
|
|
Details of the House
budget
General Fund availability statement
|
|
|
|
|
|
|
|
Unappropriated
Balance from FY 2003-2004
|
$145,664,254
|
|
|
Emergency Appropriation
|
(24,100,000)
|
|
|
Projected Reversions from FY 2003-2004
|
198,300,000
|
|
|
Projected Overcollections from FY 2003-2004
|
150,000,000
|
|
|
Beginning
Unreserved Credit Balance
|
469,864,254
|
|
|
Credit to Savings Reserve Account
|
(117,466,064)
|
|
|
Credit to Repairs and Renovation Reserve
|
(100,000,000)
|
|
|
Adjusted
Beginning Unreserved Credit Balance
|
252,398,190
|
|
|
Revenues
Based on Existing Tax Structure
|
14,716,866,500
|
|
|
Nontax
Revenues
|
|
|
|
Investment Income
|
86,020,000
|
|
|
Judicial Fees
|
136,730,000
|
|
|
Disproportionate Share
|
100,000,000
|
|
|
Insurance
|
53,900,000
|
|
|
Other Nontax Revenues
|
261,517,607
|
|
|
Highway Trust Fund Transfer
|
242,586,830
|
|
|
Highway Fund Transfer
|
16,166,400
|
|
|
Subtotal
Nontax Revenues
|
896,920,837
|
|
|
Total
General Fund Availability
|
15,866,185,527
|
|
|
Adjustments
to Availability: 2004 Session
|
|
|
|
Internal
Revenue Code Conformity
|
(2,600,000)
|
|
|
Tobacco
Payments Decline-Tobacco Trust Fund
|
(5,000,000)
|
|
|
Tobacco
Payments Decline-Health/Wellness Trust Fund
|
(5,000,000)
|
|
|
Adjustment
to 911 Wireless Fund
|
(3,720,573)
|
|
|
Reserve
for Tax Law Revisions
|
(2,950,000)
|
|
|
Transfer
from Fire Safety Loan Fund
|
250,000
|
|
|
Transfer
from Veteran's Home Trust Fund
|
500,000
|
|
|
Transfer
from IT Services Internal Service Fund
|
2,180,000
|
|
|
Subtotal
Adjustments to Availability:
2004 Session
|
(16,340,573)
|
|
|
Revised
General Fund Availability for 2004-2005 Fiscal Year
|
15,849,844,954
|
|
| |
|
|
|
|
|
|
|
Change
in appropriations from current budget levels
Amounts in parentheses indicate a reduction
in funding from the current fiscal year
|
|
|
|
|
Education
|
|
|
Community
Colleges System Office
|
$28,407,571
|
|
Department
of Public Instruction
|
127,395,755
|
|
University
of North Carolina System
|
46,548,176
|
|
|
|
|
Health
and Human Services
|
|
|
Department
of Health and Human Services
|
|
|
Office of
the Secretary
|
(7,440,839)
|
|
Division of
Aging
|
3,681,000
|
|
Division of
Blind Services/Deaf/HH
|
(30,000)
|
|
Division of
Child Development
|
1,925,000
|
|
Division of
Education Services
|
10,873
|
|
Division of
Facility Services
|
(450,000)
|
|
Division of
Medical Assistance
|
(81,879,913)
|
|
Division of
Mental Health
|
(10,713,000)
|
|
Division of
Public Health
|
4,696,000
|
|
Division of
Social Services
|
(5,011,948)
|
|
Division of
Vocation Rehabilitation
|
(1,479,294)
|
|
Total
|
(96,692,121)
|
|
|
|
|
Natural
and Economic Resources
|
|
|
Department
of Agriculture and Consumer Services
|
75,538
|
|
Department
of Commerce
|
|
|
Commerce
|
1,161,000
|
|
Commerce
State-Aid
|
1,750,000
|
|
NC
Biotechnology Center
|
5,000,000
|
|
Rural Economic
Development Center
|
144,000
|
|
Department
of Environment and Natural Resources
|
|
|
Environment and Natural Resources
|
(218,339)
|
|
Department
of Labor
|
364,216
|
|
|
|
|
Justice
and Public Safety
|
|
|
Department
of Correction
|
(11,444,276)
|
|
Department
of Crime Control and Public Safety
|
3,414,793
|
|
Judicial
Department
|
7,760,075
|
|
Judicial
Department - Indigent Defense
|
10,500,000
|
|
Department
of Justice
|
361,923
|
|
Dept. of
Juvenile Justice/Delinquency Prevention
|
2,326,114
|
|
|
|
|
General
Government
|
|
|
Department
of Administration
|
2,448,330
|
|
Office of
Administrative Hearings
|
90,476
|
|
Department
of State Auditor
|
(200,000)
|
|
Office of
State Controller
|
(99,429)
|
|
Department
of Cultural Resources
|
5,622,311
|
|
Roanoke
Island Commission
|
(32,731)
|
|
State
Board of Elections
|
1,472,412
|
|
General
Assembly
|
(779,579)
|
|
Office of
the Governor
|
|
|
Office of the Governor
|
(99,037)
|
|
Office of
State Budget and Management
|
148,427
|
|
OSBM - Reserve
for Special Appropriations
|
350,000
|
|
Department
of Insurance
|
|
|
Insurance
|
4,062,654
|
|
Insurance -
Volunteer Safety Workers' Comp.
|
(1,734,000)
|
|
Office of
Lieutenant Governor
|
0
|
|
Department
of Revenue
|
(2,161,737)
|
|
Rules
Review Commission
|
(3,185)
|
|
Department
of Secretary of State
|
(110,389)
|
|
Department
of State Treasurer
|
|
|
State Treasurer
|
424,708
|
|
State
Treasurer – Fire/Rescue Squad Retirement
|
370,000
|
|
|
|
|
Transportation
|
|
|
Department
of Transportation
|
(228,056)
|
|
|
|
|
Reserves,
Adjustments And Debt Service
|
|
|
Reserve
for Compensation Increases
|
237,900,000
|
|
State
Health Plan Reserve
|
(7,800,000)
|
|
Escheats
Fund Repayment - Global Transpark
|
19,654,487
|
|
Retirement
System Payback
|
16,000,000
|
|
Salary
Adjustment Fund
|
(376,576)
|
|
Job
Development Incentive Grants Reserve
|
4,000,000
|
|
Senate
Bill 100 Compliance
|
(11,813,949)
|
|
Mental
Health, Developmental Disabilities and
|
|
|
Substance Abuse Services Trust Fund
|
8,500,000
|
|
Debt
Service
|
|
|
General Debt Service
|
(83,648,480)
|
|
Federal
Reimbursement
|
460,432
|
|
|
|
|
Total
Current Operations - General Fund
|
$320,024,666
|
|
Who
Makes the Most?
Salaries
of top state officials now and with proposed $1,000
raise, ranked by total income
|
|
Office
|
Current
Salary
|
With
Raise
|
State
Controller
|
$130,078
|
$131,078
|
|
State
Chief Information Officer
|
130,000
|
131,000
|
|
Chairman,
Employment Security Commission
|
129,913
|
130,913
|
|
Governor
|
118,430
|
119,430
|
|
Chief
Justice, Supreme Court
|
118,430
|
119,430
|
|
Chairman,
Utilities Commission
|
116,405
|
117,405
|
|
Associate
Justice, Supreme Court
|
115,336
|
116,336
|
|
Chief
Judge, Court of Appeals
|
112,452
|
113,452
|
|
Judge,
Court of Appeals
|
110,530
|
111,530
|
|
Judge,
Senior Regular Resident Superior Court
|
107,527
|
108,527
|
|
Administrative
Officer of the Courts
|
107,527
|
108,527
|
|
Lieutenant
Governor
|
104,523
|
105,523
|
|
Attorney
General
|
104,523
|
105,523
|
|
Secretary
of State
|
104,523
|
105,523
|
|
State
Treasurer
|
104,523
|
105,523
|
|
State
Auditor
|
104,523
|
105,523
|
|
Superintendent
of Public Instruction
|
104,523
|
105,523
|
|
Agriculture
Commissioner
|
104,523
|
105,523
|
|
Insurance
Commissioner
|
104,523
|
105,523
|
|
Labor
Commissioner
|
104,523
|
105,523
|
|
Commissioner
of Banks
|
104,523
|
105,523
|
|
Members
of the Utilities Commission
|
104,523
|
105,523
|
|
Judge,
Superior Court
|
104,523
|
105,523
|
|
Secretary
of Administration
|
102,119
|
103,119
|
|
Secretary
of Correction
|
102,119
|
103,119
|
|
Secretary
of Crime Control and Public Safety
|
102,119
|
103,119
|
|
Secretary
of Cultural Resources
|
102,119
|
103,119
|
|
Secretary
of Commerce
|
102,119
|
103,119
|
|
Secretary
of Environment and Natural Resources
|
102,119
|
103,119
|
|
Secretary
of Health and Human Services
|
102,119
|
103,119
|
|
Secretary
of Juvenile Justice / Delinquency Prevention
|
102,119
|
103,119
|
|
Secretary
of Revenue
|
102,119
|
103,119
|
|
Secretary
of Transportation
|
102,119
|
103,119
|
|
State
Personnel Director
|
102,119
|
103,119
|
|
Assistant
Administrative Officer of the Courts
|
98,216
|
99,216
|
|
Director,
Museum of Art
|
95,240
|
96,240
|
|
Chief
Judge, District Court
|
94,912
|
95,912
|
|
Chairman,
Alcoholic Beverage Control Commission
|
92,946
|
93,946
|
|
Commissioner
of Motor Vehicles
|
92,946
|
93,946
|
|
Judge,
District Court
|
91,909
|
92,909
|
|
Executive
Dir., NC Agricultural Finance Authority
|
90,470
|
91,470
|
|
Chairman,
Parole Commission
|
84,871
|
85,871
|
|
Members
of the Parole Commission
|
78,356
|
79,356
|
|
Executive
Director, Agency for Public Telecomm.
|
78,356
|
79,356
|
|
|
|
|
|
