Governor Beverly Perdue signs NC Budget

Perdue signed $19 billion state budget into law Friday without posting action to North Carolina State Website

NC GOVERNOR NEWS -- Breaking her promises to the people and members of the Democratic Party, Governor Beverly Perdue signed the North Carolina's $19 billion state budget into law Friday quietly without posting the action to the North Carolina State Website, which is designed as a clearinghouse for State press and media. However, maybe Governor Perdue thought her signing of the State budget was not as newsworthy as her signing of House Bill 1481 awarding $950,000 in Green Business Fund Grants that she did publicize on the same day?

Therefore, now that Governor Beverly Perdue has signed the 2009 - 2011 North Carolina state budget into law, the following highlights of the budget outlined by NC House Representative Moore will take effect:

The budget will raise taxes by more than $990 million. The majority of this new revenue will be raised through a regressive sales tax increase of one-cent. And will mostly affect suffering on low income families due to the inverse relationship between the tax rate and their ability to pay the increased rate as measured by their assets, income, and consumption.

An income tax surcharge of 3% on individual income for those married and filing jointly with an income of over $250,000, while a 2% applies to individuals earning income between $100,000 and $250,000 married filing jointly. Corporate income receives a 3% surcharge.

Education will have $225 million in cuts that will be passed down to the Local Education Administrations (LEAs) to make the cuts locally. (The average class size for grades K-3 will not change). Funding for 200 literacy coaches has been eliminated that is a $12 million cut. The funding for math textbooks in grades 6-12 has been delayed, and a moratorium may happen on all new textbooks. The budget does eliminate funding for the general education (excluding math, science, and technology), physical education, and college success skill's courses offered to high school students through the dual enrollment and Huskins programs. These courses will no longer generate State funding through budget FTE. If a community college wants to offer these courses to dual enrollment and Huskins students, then the colleges may charge an amount sufficient to cover the costs of the courses. However this reduction does not impact courses provided to students of Early and Middle College High Schools. A tuition increase will be implemented in Community Colleges and supplemental funding for programs that provide assistance to developmentally disabled adult students by teaching life skills has been cut by $1.2 million. Community Colleges across the state have a $14 million cut, but it cannot hurt the programs that retrain out-of-work individuals.

The Legislative Tuition Grant for students attending private colleges has been reduced by $100 (from $1,950 to $1,850). Increases tuition at all UNC institutions (increase is of the lesser of $200 or 8%). Cuts will also be made that will effect senior and middle management, low-enrollment degree programs, speaker series, etc. ($72.9 million cut).

Health and Human Services funding for Smart Start will be reduced by $16 million, $3 million is cut to local mental health services providers, the Division of Medical Assistance community support services is cut by $65 million, $40 million is cut in state funding for services provided through local providers, Medicaid provider rates are reduced, and there are other cuts to Health and Human Services.

State jobs will be cut by 2,191 positions in 2009-2010, but most of these are vacant positions. State employee salaries remain the same for the most part in the budget. There are provisions that allow the increase in salary due to a promotion or other increase in duties and responsibilities. Automatic step increases for teachers, principals and assistant principals, magistrates, assistant and deputy clerks of court, and members of the State Highway Patrol are suspended for the biennium.

Six prisons including Cleveland Correctional will be closed releasing more convicted sex offenders back to society only to dodge registration with the NC Sex Offender Registry.

Furthermore, the practice of the University of North Carolina to pay large salaries to administrators who resign to return to teaching positions (Golden Parachutes) survived the budget knife. According to the News and Observer, this policy has cost NC taxpayers more than $8 million over the past five years. The House overwhelmingly adopted a provision to eliminate these extraordinary payments throughout state government. However, the budget recently signed by Governor Perdue continues these golden parachutes.

An amendment to the budget to prohibit these so-called "transition payments" sponsored by Representative Hugh Blackwell of Burke County passed the House 68-45, but, the House members of the conference committee ignored their obligation to advocate for the House position on this provision.

UNC administrators who "retreat" back to faculty teaching positions retain their previous higher salaries as they prepare to assume new responsibilities. This practice gained widespread attention recently as the Mary Easley scandal at NC State University exposed the salary retention packages of former provost Larry Nielsen ($149,350) and former chancellor James Oblinger ($210,000). Over the past five years a total of 117 UNC system administrators took advantage of these lucrative deals.

Commenting on the recent back peddling of the Democrat leadership, House Republican Leader Representative Paul Stam of Wake County said, "During the recent budget debate, we heard many legislators pledge to ferret out unnecessary spending and waste. Yet a House provision to eliminate pay for state employees who are no longer doing the work failed to be supported by the Democrat leadership. This is inexcusable during a recession when Democrats are forcing $1 billion of new taxes on our citizens."

Finally, we as North Carolina citizens and voters can only learn from our leadership's conniving and dishonorable actions, and hopefully reject this present administration in 2012, that is if we can survive financially that long with this present NC state budget.