The Raleigh Report
From the Office of Cullie Tarleton
June 1, 2009
Last week, we continued the difficult task of writing the House budget for the coming fiscal year. In an attempt to shore up our state’s expected $4.6 billion shortfall, House members are considering a number of money-saving measures. As a member of the House Education Appropriations Sub-Committee, I’ve received numerous emails regarding the proposed cuts in the education budget. They are painful cuts but unfortunately necessary if we are to meet our budget numbers. I realize we’re making decisions that affect people’s lives. Certainly none of us takes any pleasure in the decisions we’re having to make. We continue to be committed to education as hard as that may be to believe right now. Education will take fewer cuts (as a %) than some other areas but there will be deep cuts all across state government. It is challenging to decide where and how to save money, but these hard decisions are unavoidable if we are to meet our Constitutional duty to balance the budget in the face of a 20 percent drop in revenues. After the House votes on its budget, conferees will be appointed to develop a final budget that will then be presented to both the House and the Senate.
Many important, effective and popular programs are going to be eliminated or severely cut back as we refine our budget over the next few weeks. At the same time, we may have to increase some fees. I continue to oppose any new taxes and hope none will be forthcoming.
These budget saving measures may be painful in the short term, but they are necessary if we are to protect programs and services that enable us to provide a quality education at all levels, meet the health needs of our most vulnerable persons, maintain and cultivate jobs, and keep us safe in our homes, neighborhoods and schools.
We are trying to spur the economy when we can and protect people’s investments in their homes. This week, we approved several bills that could help the state attract new investment and new building. I have included some information about those bills below.
I hope you will contact me if you have questions, or if I can be of service. Thank you as always for your support and your interest in our state.
Economy
The House approved a bill this week that may help North Carolina bring in a new company that would be required to invest $1 billion. The bill (SB 575) changes the way corporate income tax liability is calculated for multi-state taxpayers by considering only the company’s sales in the state when determining their tax bills. The existing formula also accounts for companies’ property holdings and payroll. The change applies only to companies that invest $1 billion or more over a nine-year period. No company in the state currently qualifies for the incentive. The proposal also requires companies to locate in one of the state's poorest counties, provide health insurance, meet a wage standard, and forego other state grants or tax breaks before they can qualify for the incentive. I supported the bill but told our caucus that I’d be a lot more enthusiastic if the new business was coming to Ashe or Watauga.
Counties and municipalities in North Carolina would be authorized to provide development incentives in exchange for reductions in energy consumption under a bill that passed the House this week (SB 52). More specifically, counties and municipalities would be able to grant incentives to a developer or builder if they agree to construct a new development or reconstruct an existing development in a way that significantly reduces energy consumption.
The State Treasurer’s office would be given more flexibility to increase investment income and better manage risk under a bill that passed the House this week (SB 703). The bill would allow the treasurer to invest up to 5 percent of the state’s portfolio in commodities such as timber, real estate and treasury inflation protected securities, or TIPS. The bill does not allow investments in derivatives or other risky assets.
Notes
Congratulations to L. F. (Junior) Anderson of Jefferson who has been re-appointed by Governor Purdue to the N C Forestry Council.
I signed on to a letter last week that will be sent to our federal congressional delegation calling on them to sponsor and/or support federal legislation that will end the coal mining method known as mountain top removal. It’s a horrible method of coal mining. It’s bad for the environment and it’s especially bad for the people who are most affected by this method of coal mining. Hopefully we can stop it by passing federal legislation.
Miss USA, Kristen Dalton, visited Raleigh this week to address members of the General Assembly. The reigning beauty queen is from Wilmington, and is a student at East Carolina University.
|
