First Full Week of Legislature Underscores Philosophical Conflicts

RALEIGH – The change in North Carolina politics was on full display in the new General Assembly’s first full week of work. Republicans pushed a limited-government agenda against Democrats asserting the ability of state government to solve social and economic problems.

“Republicans ran on a pretty clear agenda,” said N.C. State University political science professor Andy Taylor, of November’s election. “They got a pretty clear victory, and so they’re moving ahead.”

Republican leaders signaled a new direction in three high-profile areas: fiscal policy, education, and health care. Sen. Richard Stevens, R-Wake, ushered the Balanced Budget Act of 2011 through the Senate. It faces one more procedural vote before moving to the House. Stevens also sponsored the No Cap on Number of Charter Schools bill. Meantime, House Majority Leader Paul “Skip” Stam, R-Wake, pushed greater school choice by sponsoring the Tax Fairness in Education Act. He also introduced the lightning-rod Protect Health Care Freedom bill.

Balanced Budget Act of 2011

The philosophical differences were highlighted in Senate Bill 13, the Balanced Budget Act of 2011. It would claw back money appropriated to dozens of state funds and divert the savings to next year’s budget. Among the funds are those used for business incentives, including Golden LEAF, the Tobacco Trust Fund, One North Carolina, and Job Development Investment Grants.

Republicans argued government spending does not create jobs, and that funding for these grant-making entities should be returned to the General Fund. Sen. Bob Rucho, R-Mecklenburg, castigated Democrats over what he called the failed policy of their past leadership.

“You punished the people who are working,” Rucho said Thursday. “You put $1.3 billion in new taxes on them. You also took $1.6 billion in stimulus for ongoing expenses.” Stevens says rescinding the money will not affect the funds’ endowments or any economic incentive negotiations.

“This is in no way going to shut down One North Carolina. Anyone who tells you that is wrong,” Stevens said.

Democrats disagreed, saying the bill would freeze job recruitment in the state. “Those of us in the rural part of the state depend on this money,” said Sen. Doug Berger, D-Franklin. “The first major piece of legislation we’re moving through the Senate removes our tools for job creation.”

Stevens said the bill could strip about $800 million from the state’s now estimated $3.4 billion deficit. It also could be the first bill Gov. Bev Perdue will veto, although she has not stated her final decision.

Education reform

Two bills would give North Carolina parents more power to choose how their kids will be educated. They are Stevens’ charter school bill and Stam’s tax credit bill.

Senate Bill 8, the No Cap on Number of Charter Schools bill, would remove the limit on the number of charter schools in North Carolina, now set at 100, and do much more. The most recent version of the bill also would create a North Carolina Public Charter Schools Commission. The commission would operate independently of the State Board of Education, overseeing current charters and approving applications for new ones. The bill also would give charter schools more access to state education funding, both for operations and capital spending.

Democrats raised many objections to the bill, primarily a concern that new charters schools could discriminate against low-income students and racial minorities. Democrats’ proposed remedy: Require the schools to provide students transportation and food.

Republicans countered that many current charter schools effectively serve economically disadvantaged students who are not succeeding in traditional public schools.

The bill is in the Senate Committee on Education and Higher Education. Committee Co-Chairman Jerry Tillman, R-Randolph, said he intends to have the committee vote on the bill in the next two weeks.

Stam introduced House Bill 41, Tax Fairness in Education. It would provide a $2,500 tax credit to parents who take their children out of public schools and put them in private or home schools. The bill was filed Thursday and has not been referred to a committee.

Health care

The House passed House Bill 2, the Protect Health Care Freedom Act, by a 66-50 vote. Two Democrats — Rep. Bill Brisson, D-Bladen, and Rep. Jim Crawford, D-Granville — joined Republicans in supporting the bill.

The bill allows people to opt out of the federal health care reform law’s requirement that every American purchase health insurance by 2014, while compelling Attorney General Roy Cooper to join a multi-state lawsuit challenging the constitutionality of the federal law.

Democrats opposed to the bill said it would create unnecessary costs and unintended consequences. The bill was referred to the Senate’s Judiciary II Committee.

NCSU’s Taylor calls these bills low-hanging fruit. The charter school cap, for instance, has gotten some Democratic support.

Major legislation later in the session will be more difficult to usher through, he said.

“The real big issue is going to be the budget,” Taylor said. “I’ll be interested to see how a gay marriage amendment to the constitution might play out and also redistricting.”

Anthony Greco is an associate editor of Carolina Journal.