House Budget Proposal Moves Forward
The House is currently working on the budget and expects to have
one passed Saturday morning. The House proposal includes nearly
$800 million in new taxes and fees along with $1.3 billion in stimulus
money to help bridge the nearly $4.5 billion budget shortfall.
Proposed House Increases
| Income tax on earners making more than $200,000 |
$257 million |
| Combined Reporting |
$18.5 million |
| Sales Tax on Warranties, Installations, Repairs |
$176 million |
| Sales Tax on Courier Services |
$25 million |
| Sales Tax on Digital Products |
$13 million |
| Sales Tax on Amusements/Movies |
$24 million |
| Franchise Tax on LLCs |
$59 million |
| Modify Corporate Income Tax Formula |
$6 million |
| Change Bank Interest Deduction |
$2.6 million |
| Increase Liquor Tax by 1.5% |
$8 million |
| Increase Sales Tax by .25 cents |
$195 million |
The House’s tax proposal differs from the plan currently
being worked on in the Senate by Senator Daniel Clodfelter. The
Senate proposal would expand what items can be taxed, but at the
same time would lower the income and sales tax rates.
While the
increase in taxes in the House budget does not restore funding
for all job cuts, it helps avoid almost 2,600 teacher layoffs
in kindergarten through third grade.
Restored Education Funding
| 2,590 K-3 Teacher Jobs |
$139 million |
| 600 University System Jobs and 1,300 Course Offerings |
$75 million |
| 350 School Counserlo and Social Work Jobs |
$19.4 million
|
| 350 Principal, Assistant Principal Jobs |
$17.6 million |
| At-Risk Students |
$70 million |
| Low Wealth Counties |
$4.8 million |
| Tuition Waivers for Public Safety Personnel, Senior Citizens |
$16.3 million |
| Community College Jobs |
$10 million |
| Flexibility for Local Education Agencies |
$2.9 million |
Restored Health and Human Services Funding
| Smart Start |
$20 million |
| Medicare Provider Rates |
$65.8 million |
| In-Home Personal Care Services |
$34 million |
| Medicaid Physical, Occupational, and Speech Therapy |
$15.6 million |
| Adult Optical Services and Supplies |
$3.2 million |
| Adult Dental Coverage |
$15.9 million |
| Dental Services (Medicaid) |
$3.7 million |
| Prthotics and Prosthetics (Medicaid) |
$2.3 million |
| Eliminate Emergency Room co-payment |
$2.9 million |
| Greater Medicaid Case Management |
$23.4 million |
| Eliminate Enrollment Fee for Medicaid Providers |
$1.5 million |
| Child Care Subsidies |
$4 million |
We are hope to have a budget sent to Governor Perdue before the
start of the new fiscal years, which begins July 1.
Texting While Driving
The Senate this week passed House
Bill 9, banning texting or emailing
while driving. The popularity of text messages among young drivers
and the prevalence of “smart phones” with email capacity
have created potentially deadly driver distractions. An April 2008
study by Nationwide Insurance found that 73% of drivers admit using
a cell phone while driving and 20% of drivers admit to texting
while driving.
A 2007 study by Clemson University found that drivers who are
texting or are distracted by MP3 players are 10% more likely to
leave their lanes then drivers who are not. 80% of all car crashes
and 65% of near-collisions occurred when the driver was distracted,
primarily by the use of cell phones or other electronic devices,
according to a 2008 study by Virginia Tech Transportation Safety
Institute.
In passing this legislation, North Carolina is joining a growing
list of states that have already outlawed texting while driving.
Thirteen states plus the District of Columbia either have a ban
in place or a ban will go into affect by the end of 2009.
House Bill 9 now heads to the Governor to sign before it will
go into law.
Drug Paraphernalia
We also passed House
Bill 722, which strengthen drug paraphernalia
laws. Convenience stores throughout our state have been selling
harmless-looking little roses and pens in glass tubes, which
can then be turned into pipes to smoke crack or methamphetamine.
Under
this bill, these “tube roses” must be placed behind
the counter.
The legislation also moves “splitters” behind the
counter as well. Splitters are small plastic tubes in which a cigar
is inserted and a small blade inside the tube slices the cigar
lengthwise so that the tobacco can be removed and replaced with
marijuana.
Under this bill, retailers must keep a record of individuals who
purchase tube roses or splitters. This bill passed the Senate unanimously.
Emergency Management and Disaster Mitigation
We also approved a wide range of Emergency Management and Disaster
Mitigation legislation this week. These are all pieces of legislation
that was developed between the Division of Emergency Management
and the Joint Legislative Study Committee on Emergency Management
and Disaster Recovery, of which I am a member.
These bills will help North Carolina, the second most hurricane
prone state, be better prepared for and deal with emergencies and
disasters when they arise. It is all part of a wide modernization
of the State’s emergency management capabilities.
House
Bill 377 – Authorize Emergency Management Certification
Program. This bill creates an emergency management certification
program to help train local authorities to better prepare them
to deal with emergencies and disasters.
House
Bill 379—Allows Mutual Aid Between State and Local
Government. The Governor of North Carolina already has the authority
to establish mutual aid agreements between North Carolina, other
states, and the Federal Government. This bill allows the Governor
to establish similar agreements between the State and local governments.
The agreements allow for the exchange of supplies, equipment, personnel
among other items in the event of an emergency.
House
Bill 380—Strengthen Local Emergency Management Capabilities.
This bill allows counties and municipalities to create joint emergency
management agencies between the counties and municipalities, or
between two or more counties.
House
Bill 381—Expand Division of Emergency Management Authority.
This establishes the Division of Emergency Management as the lead
agency for the coordination of information and resources in the
event of an emergency or natural disaster.
It is important that we improve the State’s capabilities
to act in the event of emergencies or natural disasters, especially
now as we enter into the start of Hurricane Season.
Well Testing
Earlier this week, the Senate voted for confer with the House
version of Senate
Bill 141, Limit Well Water Testing for Volatile
Organic Compounds (VOC’s). VOC’s are chemical compounds
found in landfill leachates, leaks for underground storage tanks
and some naturally occur in soil. While VOC’s are hazardous
to our health, it is not necessary to test every newly constructed
well for their presence. Under this legislation, new wells will
only need to be tested for VOC’s only if the local health
department finds the need to do so pursuant to the rules created
by the Commission for Public Health.
The bill now heads to the Governor to be signed into law.
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