Legislative budget writers on Monday checked the fine print of the two-year state budget, sorting out final details like eliminating funding for a short-lived public schools CEO.
The double-checking meant most legislators were unlikely to receive their own review copies of the nearly 300-page document until hours before the first of two days of vote on Tuesday.
House and Senate Democrats completed a tentative budget agreement for the next two years late Friday. After talks with Gov. Beverly Perdue’s staff over the weekend, negotiators combed through the spending plan again to make sure the language matched the agreed details.
“We’re trying to get something within the available resources that we can all live with,” said Sen. Tony Rand, D-Cumberland. Perdue, who last month forced legislators to redo an earlier deal after expressing her disfavor, said lawmakers are “moving toward consensus on my budget priorities and a budget agreement is within sight.” Perdue must sign the budget into law. She has not threatened a veto.
Lawmakers have proposed spending about $19 billion for the fiscal year that started July 1, not including more than $1 billion in federal stimulus money that would help ease the state’s worst fiscal crisis in a generation. Lawmakers also proposed $990 million in additional taxes in the current year and $1.3 billion next year.
Deeper spending cuts were staved off by the tax increases, federal stimulus funds, and a decision to grant local public school superintendents flexibility to move money from textbook purchases or other uses to teacher salaries promised to stave off , legislators said.
“I can’t tell you how many teachers would have been cut if we had not put money back in,” said Sen. Linda Garrou, D-Forsyth, one of the Senate’s top negotiators. Republicans contend the spending cuts were more managable than Democrats characterized and higher taxes aren’t necessary because government has operated without them for the past month.
A late wrinkle discussed Monday was that public universities planned to make scholarships to needy students that were $12 million more than the General Assembly planned to spend. Negotiators said the extra money would have to come from shaving the margin for error on the $19 billion budget to just about $10 million, said Rep. Mickey Michaux, D-Durham, a top House negotiator.
Legislators also decided Monday to eliminate $200,000 in salary for the position of state public schools chief executive officer. Perdue filled the post this spring with former Cumberland County schools superintendent Bill Harrison. Harrison decided last month he will retire from his $265,000-a-year job after a Wake County judge ruled in a lawsuit
filed by state Superintendent of Public Instruction June Atkinson.
The judge ruled the state board of education violated the state constitution by creating an overarching public education executive and giving Harrison that job, rather than leaving day-to-day operations to Atkinson, who was elected to her post. The proposed budget would raise the sales tax rate by a penny so that most consumers would pay 7.75 percent through mid-2011. A new income tax surcharge would apply to profitable corporations and individuals whose taxable income topped $60,000. Cigarette and alcohol excise taxes would go up, though some House Democrats still hoped to block that condition.
In education, the proposed budget would drop earlier plans to cut teaching positions in kindergarten through third-grade classrooms, but direct superintendents to increase class size in higher grades or find other savings. The deal also would close seven small or aging prisons, and close the Samarkand Youth Development Center for female delinquents in Moore County.
North Carolina, Connecticut and Pennsylvania are the only remaining states without a budget more than a month after the fiscal year started July 1.
