Legislative Bulletin

September 28, 2001


See these financial charts providing more detail:

State starts the year with empty bank accounts
How the state divides $8.3 billion in education funds
A closer look at the higher tax rate on the rich and not-so-rich
Detailing the salaries of top government officials, who get no raise this year


Highlights of the state’s new $14.5 billion budget
and charts examining revenue and expenditures


General Assembly limits lobbying by government agencies
Some legislators charged this summer that state agencies were wasting taxpayer money by hiring contract lobbyists and using staffers to monitor legislative activities. That criticism is forcefully expressed in a special budget provision limiting the resources that agencies can devote to lobbying. The provision reads: “No principal state department may use state funds to contract with persons who are not employed by the state to lobby the General Assembly. No more than two persons in each principal state department and constituent institution of the University of North Carolina may be registered to lobby the General Assembly or designated as legislative liaisons pursuant to this Article."

New limits placed on using state-owned airplanes 
Another flap developed recently when a Commerce Department official drew attention for making repeated flights around the state to help disperse hurricane relief assistance. In some instances, driving would have been as quick. That apparently lead to a special budget provision spelling out who can use state aircraft and for what purposes. The provision reads: “No airplane or helicopter operated or maintained with state funds may be used to transport any member of a board or commission to or from a meeting of the board or commission to which that member is appointed unless: (1) The member is an elected official or head of a principal state department who serves on the board or commission by virtue of his or her office; (2) The member is traveling with another member who is an elected official who serves on the board or commission by virtue of his or her office; (3) The member is traveling on an airplane or helicopter that is flying to a particular destination for official state business other than a meeting of a board or commission; or (4) The director of the Office of State Budget and Management has approved the use of the state airplane or helicopter as an exceptional circumstance. The director of the Office of State Budget and Management shall report to the chairs of the Appropriations committees of the Senate and House of Representatives by Dec. 31 each year on the use of state aircraft in the prior year pursuant to subdivision (4) of this section.”

More detail on the fall “sales tax holiday”
To ease the strain on the family budget at back-to-school time, the budget includes a provision exempting from sales taxes many items bought for school use. The “sales tax holiday,” an idea copied from several other states, will begin at 12:01A.M. on the first Friday of August and continue through 11:59 P.M. the following Sunday.

Here are the items that will be exempt from sales tax during that period:       
Clothing with a sales price of $100 or less per item.
Clothing accessories (hats, scarves, hosiery, handbags) worth $100 or less per item.
Footwear with a sales price of one $100 or less per item.
School supplies, such as pens, pencils, paper, binders, notebooks, textbooks, reference books, book bags, lunchboxes, and calculators, with a sales price of one hundred $100 or less per item.
Computers, printers and printer supplies, and educational computer software, with a sales price of three thousand five hundred dollars $3,500 or less per item.

The exemption allowed by this section does not apply to the following:
Sales of jewelry, cosmetics, eyewear, wallets, or watches.
Sales of furniture.
Sales involving a layaway contract or a similar deferred payment and delivery plan.
Sales of an item for use in a trade or business, or rentals.

How the House voted on the budget
Democrats for (61): Adams, Alexander, Allen, Baddour, Barefoot, Bell, Blue, Bonner, Boyd-McIntyre, Church, Coates, Cole, Cox, Jim Crawford, Culpepper, Cunningham, Dedmon, Earle, Easterling, Edwards, Fitch, Fox, Gibson, Goodwin, Hackney, Haire, Hall, Hensley, Hill, Holliman, Hurley, Insko, Jarrell, Jeffus, Lucas, Luebke, McAllister, McLawhorn, Michaux, Miller, Nesbitt, Nye, Oldham, Owens, Redwine, Rogers, Saunders, Smith, Sutton, Tolson, Tucker, Underhill, Wainwright, Warner, Warren, Warwick, Weiss, Womble, Wright, Yongue
Republicans for (1): Buchanan
Republicans against (55): Allred, Arnold, Baker, Barbee, Barnhart, Blust, Bowie, Brubaker, Capps, Carpenter, Clary, Creech, Culp, Daughtry, Davis, Decker, Dockham, Eddins, Ellis, Esposito, Gillespie, Grady, Gray, Jim Gulley, Harrington, Hiatt, Hilton, Holmes, Howard, Johnson, Justus, Kiser, McComas, McCombs, McMahan, Miner, Mitchell, Morgan, Morris, Pope, Preston, Rayfield, Russell, Setzer, Sexton, Shubert, Starnes, Teague, Thompson, Walend, Walker, Weatherly, West, Connie Wilson, Gene Wilson
Democrats not voting (1): Hunter
Republicans not voting (2): Excused absences -- Mark Crawford, Sherrill

How the Senate voted on the budget
Democrats for (31): Albertson, Ballance, Basnight, Clodfelter, Cunningham, Dalton, Dannelly, Garrou, Gulley, Hagan, Harris, Jordan, Kerr, Kinnaird, Lee, Lucas, Bill Martin, Metcalf, Miller, Odom, Plyler, Purcell, Rand, Reeves, Robinson, Larry Shaw, Soles, Swindell, Thomas, Warren, Wellons
Republicans against (14): Allran, Ballantine, Berger, Bingham, Carpenter, Carrington, Forrester, Foxx, Garwood, Hartsell, Horton, Moore, Rucho, Bob Shaw
Democrats not voting (4): Excused absence -- Carter, Hoyle, Bob Martin. Paired in favor: Weinstein
Republicans not voting (1): Excused absence -- Webster (paired against)


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