Sunday, May 11, 2008; Posted: 07:46 AM
"The goal is eight weeks," said Rep. Rick Glazier, a Fayetteville Democrat. "We should be able to finish fairly quickly."
The session begins Tuesday. With less money available, lawmakers will have little room to pad some of their priorities, such as enhancing teacher pay and supplementing dropout prevention programs.
Two areas sure to receive attention this session are transportation and mental health. Last year, lawmakers came to Raleigh with a $2 billion surplus and applied $1.8 billion of new spending to a record $20.7 billion budget.
This year, a sour economy has left a much smaller surplus. A third-quarter budget report released last week projects a $152 million surplus from income tax, sales tax and other sources at the end of the fiscal year June 30. The current budget also is expected to leave $400 million in unspent money.
Lawmakers use so-called "short" sessions in even-numbered years to make midyear adjustments to the biennial budget. They usually save drastic cuts, tax increases and other controversies for long sessions in odd years.
State employees normally get an annual raise -- a 1 percent increase costs about $100 million.
Gov. Mike Easley's chief budget adviser, Dan Gerlach, said the surplus is $67 million less than projected, which will require cuts. In Easley's budget, to be released Monday, Gerlach said most of the cuts will come from making state agencies reduce costs and tighten spending.
None of the cuts would be felt in the classroom or in human services, he said. There are also no plans for university tuition increases.
There is still room for teacher and state employee raises, a new drought team in the Department of Environmental and Natural Resources, probation and parole staff and added support services for military families, such as helping pay college tuition for children who lost parents in combat.
The governor's budget is a non-binding recommendation for the General Assembly.
Gerlach declined to reveal specific amounts of cuts or new spending, but said the governor's budget is 4 percent above the current spending plan, which would top $21 billion.
A large expense to be debated is the amount to spend on the state's highways.
A transportation study group is asking lawmakers to consider a $2 billion bond package that would require voter approval in November.
Lawmakers approved debt last year for water and sewer projects that did not need voter approval, but they withheld new money for roads.
Meanwhile, the gap between available highway funding and the need to keep pace with growth is reaching mind-boggling numbers. The state Department of Transportation estimates that $65 billion for road projects will be needed in the next 30 years.
Both Senate party leaders -- Democrat Tony Rand of Fayetteville and Republican Phil Berger of Rockingham County -- have endorsed spending for highways. Berger wants at least $2 billion, while Rand says "as much as possible."
"We'll look at it in the context of all our other monetary issues. What's the funding potential? What can we do?" Rand said. "How can we 'securitize' our income stream and build as much as possible? Infrastructure is a good investment. It has a stimulus effect."
Rep. Paul Stam, the House minority leader, also supports a $2 billion plan for roads. He and Berger say the General Assembly should stop the annual $172 million transfer from a highway reserve fund into the state's general fund to help pay for education, public health, prisons and most other agencies. The transfer began years ago and was meant to be temporary.
The Republican leaders say the money, which comes from the state gas tax, would be enough to cover annual bond payments.
Gerlach said the governor's budget does not include bond money for transportation, but it does begin a phase-out of the annual fund transfer.
If a bond is approved by voters, the money would be used over several years, going to state road programs and matching federal funds for U.S. and interstate highway expansions to relieve congestion and make roads safer.
Glazier also supports bond money for roads, but he said lawmakers will debate the amount.
He said the General Assembly will also address mental health. Recent news reports in Raleigh cast doubt on the effectiveness of mental health spending. Glazier suggests a long, thorough review.
"There should not be a knee-jerk reaction to the mental health reform problems," Glazier said. "But there should be a serious attempt to get a grip on both the structure of mental health and the resources available."
He said more substantive reform should be considered next year.
Rand agrees that mental health needs scrutiny. "We need to stabilize the mental health system to make sure money goes where it needs to go," he said.
The governor's budget takes away money from mental health administation and provides more for services, Gerlach said.
Among other issues awaiting lawmakers is a proposed moratorium on forced annexation. Rep. Joe Boylan, a Moore County Republican, is among a group of lawmakers expected to propose a one-year ban on the law that lets cities take in surrounding unincorporated areas. A House committee is recommending a statewide moratorium until June 30, 2009, which would give lawmakers time next year to change the law.
Residents forced into a city by annexation oppose having to wait years for water and sewer connections while having to pay city property taxes immediately.
About 42,000 Fayetteville residents were unwillingly annexed in 2006, and the annexation of the Gates Four subdivision is pending. Annexations also are pending in several surrounding counties.
In another expected bill, Rep. Margaret Dickson, a Fayetteville Democrat, said she intends to bring camera enforcement of red-light traffic violations back to Fayetteville. Cumberland County schools support the bill. Associate Superintendent Ricky Lopes said the ticket revenue would provide up to $600,000 for the school system.
The revenue was used until 2006, when the state Appeals Court said the funding formula was unfair to Fayetteville because revenue failed to cover the city's expenses after the school system received 90 percent of the revenue. Lopes said Dickson's bill has a formula that would not cost the city.
Staff writer John Fuquay can be reached at fuquayj@fayobserver.com or (919) 828-7641.
To see more of The Fayetteville Observer, or to subscribe to the newspaper, go to http://www.fayettevillenc.com/. Copyright (c) 2008, The Fayetteville Observer, N.C. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
    |
   |
