The Raleigh Report
From the Office of Cullie Tarleton
May 4, 2009
Governor Bev Perdue received the latest information about our revenue picture last week and announced that the state collected $1 billion less in taxes than had been anticipated. The Governor had to take quick action to make up the shortfall, since our constitution requires that the state end every fiscal year with a balanced budget. In this case, she has two months to find $1 billion in savings, in addition to the $2.2 billion for which she had already planned. That forced her to turn to salaries. Personnel costs make up about two-thirds of the state’s total yearly budget.
The Governor made a number of decisions to balance the budget, including pulling money out of our reserve funds. Part of Gov. Perdue’s solution is to withhold one half of one percent of the annual salary of each state employee, including teachers. The total savings for the salary plan amounts to $65 million. Legislative leaders and leaders in the judicial system have agreed that employees in our branches will participate in any reductions or furloughs the Governor orders. This applies also to the salary I receive for being a state legislator as it should. I’d like to say that this will be all that will be required but frankly, I expect we’ll see both voluntary and involuntary furloughs. I can’t overstate the seriousness of the situation. In fiscal year 09-10 we’re looking at a $4 billion revenue shortfall. That’s 20% less than the 08-09 budget. There will have to be deep cuts made in order to have a budget that’s balanced against expected revenues.
There has been some confusion about the Governor’s order. Simply put, it applies to all state employees. The money will be deducted in equal amounts over the next two months. To calculate the total amount of the reduction, divide your yearly salary by 200. That is the total amount of the deduction. In exchange, each employee is being given an additional 10 hours of leave time for this calendar year. In addition, the plan will not negatively impact insurance, vacation, retirement, or longevity pay.
Decisions such as these are not easy and we know these are difficult times, but if the Governor had not acted the state would not have been able to meet its financial obligations, including its payroll.
We also heard from some of our state residents this week during a rare budget public hearing. For nearly three hours, we were fortunate to hear from people with interests in education, the environment, our prisons and our tax code. Budget-writers in the House welcome this guidance and we anticipate your input will help us craft a better budget.
Thank you as always for your interest in our state and please contact me if I can be of any assistance.
Education
School officials would be required to make a reasonable attempt to notify a parent or guardian before administering corporal punishment on a student under a bill that passed the House this week (HB 442). The legislation also would allow parents in school districts that permit corporal punishment to exempt their child from corporal punishment all together. If enacted, the law would not outlaw the practice of spanking entirely. Almost one half of North Carolina’s 115 school districts permit spanking as a means of punishment. I don’t support corporal punishment and I’m glad we passed this bill that allows parents to make the decision. The bill is now in the Senate.
Miscellaneous
Automated calls to protect the public health, safety, or welfare would be allowed under proposed legislation that came out of the House this week. The system is intended to inform telephone subscribers that they have purchased products or medication that may be subject to a safety recall; that the telephone subscriber has not picked up a filled prescription drug or that an account maintained by the telephone subscriber may be subject to potential fraudulent activity. The calls could not be used for any commercial purposes. The bill (HB 1034) now goes to the Senate.
Legislation that would provide a Survivor’s Alternate Benefit for survivors of law enforcement officers killed in the line of duty passed the House this week (HB 766). If enacted, the principal beneficiary of an officer who has completed 15 years of service would be entitled to the survivor’s benefit should that officer be killed in the line of duty. The bill is now in the Senate.
Notes
Members of the General Assembly welcomed the University of North Carolina at Chapel Hill men’s basketball team this week to officially honor them for an outstanding season culminating in the 2009 NCAA Division I Championship (HJR 1517). The team won the 2009 NCAA Division I Championship by defeating Michigan State with a score of 89-72, the largest margin in a title game in 17 years. Carolina grads in the House (and there’s lots of them) were excited (as we all were) to have the team present.
Members of the General Assembly officially honored the fallen members of the Salisbury Fire Department with a House Joint Resolution on Thursday (HJR 690). On the morning of March 7, 2008, the Salisbury Fire Department responded to a fire at the Salisbury Millwork. While working to extinguish the fire, two members of the Salisbury Fire Department, Victor Anthony Isler, 40, and Justin Edward Monroe, 19, lost their lives. I had a resolution last week honoring the life and service of Wade Brown of Boone who passed away a few weeks ago at the age of 101 (HJR 909). Wade was a former member of both the House and the Senate and had also served as Mayor of Boone.
The Land for Tomorrow coalition visited the General Assembly on Wednesday. “The Coalition is a statewide partnership of concerned citizens, businesses, interest groups and local governments urging the General Assembly to protect the state's land and water resources before they are irreversibly lost.” Several folks visiting were from Watauga and Ashe Counties. It was good to have them in Raleigh. For more information, please visit: http://www.landfortomorrow.org/.
2009 DOT maps are available. Email me at culliet@ncleg.net if you like to have one mailed to you.
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