|
By Scott Nicholson
The North Carolina Senate has adopted its version of
a state budget that’s nearly a billion dollars lower than
the one submitted three weeks ago by new Gov. Beverly Perdue.
Goss |
The Senate’s version has an operating total of $20.03
billion, with an expected increase to $21.28 billion for the
2010-11 fiscal year. The budget passed by a 32-16 vote and now
heads to the N.C. House of Representatives, which will likely
lead to compromises in joint legislative and conference committees.
Perdue’s budget proposal of nearly $21 billion included
some state job cuts, with the Senate plan making slight reductions
to education by raising the average class size by two students,
as well as making cuts in Health and Human Services and public
safety. The Senate budget also relies on spending from the American
Investment and Recovery Act to make up $3.4 billion revenues
in the coming year and $1.8 billion the year after.
“The cuts are made in any number of places,” said
N.C. Sen. Steve Goss (D-Watauga), who voted for the budget.
“It’s been a very difficult process and is obviously
a challenging time for everybody.”
Goss lamented the cuts, particularly in transportation, where
he chairs the highway appropriations committee, but said it
was important to make tough choices now that limited long-term
consequences.
“We had some tough decisions to make that will affect our
district,” he said, saying infrastructure was one of the
keys to economic recovery. “One choice was to cut maintenance
(for roads). During the downturn in this economy, the most important
thing we could do is keep our roads maintained. We had to take
some money from secondary roads construction. We felt it would
be catastrophic cutting the maintenance budget.”
He said there had been talk of a House of Representatives plan
to move money from transportation to human services.
“I’m adamantly opposed to any House plan to take transportation
money,” Goss said.
The N.C. Senate budget also saved $330 million by expanding
class size, a move that had been opposed by educator associations.
“We didn’t want to do that, obviously,” Goss
said. “It’s a temporary measure, we believe. The revenues
that will be coming in shortly will show the results for the
first quarter of this year and that’s normally a key quarter
for revenues. I’ve heard reports of up to $1 billion in
additional shortages.”
Overall university funding was cut, leaving the University of
North Carolina Board of Governors to sort out how that money
will be distributed among the university system, as many agencies
will have more leeway in determining their own budgets and cuts.
Goss said there could be room for Appalachian State University
to get funds for its planned nursing program. Currently, Appalachian
State University is budgeted at $149.3 million, with a slight
increase projected for 2010-11.
The budget proposes cutting about 700 state jobs, while Goss
said other positions would be vacated through retirement. Other
education projects were also cut, including preschool programs
that had been favorites of former Gov. Mike Easley.
“More at Four and Smart Smart are tremendous programs and
we had to cut funding there but we’ll continue to fund
them as much as we can,” Goss said. “Those are very
important.”
Goss said the projected increases for the 20010-11 fiscal year
are optimistic, though he hopes the economy will recover quickly
enough to ease pressure next year. He believes growth will remain
flat for at least another year.
“Personally, I can’t see how it will be that much,”
he said. “We are hopeful we’re nearing the bottom
here. As long as we’ve been in a downtourn, the number
has been volatile. It wouldn’t surprise me if it was $20
billion (next year) by the time all is said and done.”
Despite the cuts, Goss said his second budget process has been
educational, especially given the relative financial health
of two years ago. The budget battles have launched a review
of the overall tax structure and opened debate about long-term
revenues and spending.
“We’re looking at a complete reform in tax structure
for the long term to broaden the tax base and cut corporate
and individual income tax for those making $50,000 or less per
year,” Goss said. “There are tax breaks and incentives
for small businesses in there as a job -creation measure. I
think people will understand as long as they believe we’re
trying to be fair in the process.”
Goss said as chairman of the transportation committee, he was
careful not to place pork or personal projects in the funding.
“Every number we have to cut, it affects people,”
he said. “We certainly never want to see anyone suffer.
“We can learn lessons from this that we can cut the fat.
The budget in my view has grown too fast and we’ve used
up the ‘rainy day’ fund. The governors (Perdue and
Easley) have stepped in and make cuts and legislators will have
to follow that example.”
The complete Senate budget can be downloaded at http://www.ncleg.net/Sessions/2009/Bills/Senate/PDF/S202v3.pdf.
|
Get Firefox