Not the Republicans' First Rodeo
Republican leaders in the legislature have set a blistering pace (for legislatures) in the early days of The General Assembly and have already tested their ability to move legislation through committees to passage on the floor. More importantly, they are demonstrating they know how to play the political game.
Senate Bill 13 is Exhibit A. Senate President Pro Tem Phil Berger, Senator Richard Stevens, Appropriations co-chair, and other leaders correctly recognized that the huge looming budget deficit for next year needed to be attacked from all angles. Any savings realized from this year’s budget would offset next year’s projected deficit, but our Constitution doesn’t allow the Governor to change approved appropriations except when there are threats the budget will be out of balance at year’s end. So Republicans set out to provide that authorizing legislation and, time being of the essence, needed to pass legislation quickly to have greatest impact before the June 30 end of the fiscal year.
Governor Perdue was comfortable making 400 million dollars in cuts, but Senate leaders wanted more. When the Governor balked, Stevens and Senate Republicans decided to help her find additional funding. SB 13 identifies some 165 million in savings from about 20 accounts, including $67.5 million from the Golden Leaf Foundation, $11.7 million from the Health and Wellness Trust Fund, $13.6 million in various unspent appropriations, $3 million from Job Development Investment Grants and $5.2 million from the One North Carolina Fund. Added together these reductions and transfers could reduce next year’s projected budget gap by as much as $1 billion. Make no mistake: No one is pretending it will be easy to cut $2.7 billion, but it is a far less onerous task than cutting $3.7 billion.
The Governor made it clear she didn’t like the Senate’s additional proposals, saying, "I am truly surprised that Senate leadership is considering taking North Carolina’s jobs money as a way to balance the budget. It won’t work – and what’s more, our people won’t work if we can’t bring new companies and new industries to our state. We have many hundreds of new jobs in the pipeline right now, and they depend on that money. If we don’t win those projects, those jobs go somewhere else. It’s that simple.”
Senate President Pro Tem Phil Berger demonstrated his leadership’s knowledge of the political process by responding, “These cuts represent immediate steps to help close the gap between spending and revenue. While everything remains on the table, it is our belief these measures will minimize negative impacts to our classroom teachers and state employees.”
The battle lines are drawn. Should the governor consider vetoing SB 13 because she doesn’t like the cuts being made or risk losing classroom teachers and state employees? Checkmate.
Republicans may be new to being in charge but it is clear this isn’t their first rodeo.
Dear NC Blogger,
Very good and informative newsletter. Now, let the games begin to determine how much of an impact the new legislature will have.
Thank you and keep those newsletters coming.
Resepctfully,
George T. Riley
SSG, US Army Veteran
Unemployed
Reply to this
To veto or not to veto -- that is the real question. Even a veto won't necessarily mean unpopular cuts to education or gov't, though. The Gov will likely present a balanced budget by including huge "sin tax" increases and revenue from "electronic sweepstakes," regardless of whether they have a chance of making it through the legislature or will actually deliver the projected dollars. Then it's on the new majority in the GA to make the unpopular cuts -- potentially even more of them if she vetoes S13 (her justification would, of course, be protecting jobs). Or, they can pass the tax increases and fight amongst themselves about legalized, state-run video poker. You're right -- the rodeo's on and both sides appear to be off to a strong start!
Reply to this
Tom,
It's time our Governor understands the proper role of govt in our lives. It's role is to keep its grubby hands off, lower business and personal taxes to make NC more hospitable to business, and then leave well alone. Let these businesses grow and flourish on their own.
Corporate welfare is just wrong. Paying businesses to come here is unfair to existing industry and to small businesses. Who wants to throw money to employers with under 50 employees? Small businesses employ the vast majority of people in this country and Perdue has walked away from them.
That's okay with me. Let her continue to ignore them. Let the conservatives scoop them up in the next election, as in the last. To Perdue, "business" is only big ____ (fill in the blank).
Katy
Katy's Conservative Corner
Reply to this
After 20 plus years as a DOT employee ,our unit has less than half the employees that were working when I started. I'm not in a supervisory position ,so I'm nowhere near the salary that if it was cut and I was forced to start paying a part of my health coverage that it wouldn't create a major hardship .Will Gov. Perdue and others share the burden by taking less in salary ? Only time will tell I guess. .
Reply to this