The state budget will dominate attention in the legislature this week. The House announced plans to vote on the budget bill Tuesday and Wednesday. It passed out of committee in the middle of last week.

“The committee action is critical to our goal of putting North Carolina’s expenses in line with revenues,” Speaker of the House Thom Tillis, R-Mecklenburg, said in a news release after the committee vote.

The budget would keep a fundamental promise Republicans made during the 2010 election campaign by eliminating the one-cent sales tax addition enacted in the current two-year budget. Gov. Bev Perdue’s budget proposal recommended keeping 75 percent of that tax.

Republicans also targeted state-sponsored organizations created as a result of the national tobacco settlement. It would capture the $68 million normally given to Golden LEAF. The foundation uses the tobacco money to dole out grants for a wide range of projects in the state. The GOP budget also would eliminate the Tobacco Trust Fund and Health and Wellness Trust Fund. The two funds receive the other half of North Carolina’s tobacco settlement money.

Republicans say they were able meet one of Perdue’s requirements by keeping all state paid teaching positions. Democrats cry foul saying cuts to other local school budgets will require districts across the state to lay off teachers.

Tillis’ spokesman says the House will pass the budget this week. It then will move to the Senate — where it’s unclear how many changes, if any, will be made. Eventually, it will reach Perdue’s desk. There is a distinct possibility she will veto a first pass at the budget.

The House also is scheduled to deal with a bill already vetoed by Perdue — a revised version of a bill reforming the state health plan, on the calendar for Monday.
Perdue vetoed the first bill, calling it “in effect a tax on teachers.” In Perdue’s veto statement, she also said the “tax” would “be a tremendous step backward for North Carolina, and we know clearly that teachers will flee the profession at a time when education is most critical to the future of this state.”

What she calls a tax in fact would require teachers and all other state employees to pay as little as $10.86 a month for health insurance and as much as $22.85, depending on the plan they’re enrolled in and the budget year. Teachers and state employees pay no premiums for health coverage.

The Senate passed a revised version of the bill, requiring state employees to pay nearly identical fees as in the version Perdue vetoed.

Tillis’ spokesman says the speaker and the governor spent the weekend in negotiations over the reform.

He also said GOP leaders are working to find a compromise with Perdue on extending unemployment benefits to about 37,000 North Carolinians on extended benefits.

The General Assembly passed a bill extending benefits to 99 weeks for those affected. It included a separate section that would have cut state spending by 13 percent if a new budget is not in place by July 1. Perdue vetoed that bill because it would neuter her ability to use a threatened veto as a negotiating tool with legislative leaders.

Tillis’ spokesman says House Republicans are open to reducing the percentage cut or length of time the continuing resolution would be in place. He pointed out the position is not an all-or-nothing proposition.

Major legislation

House Bill 98, Breweries to Sell Malt Beverages on Premises, Rep. Chuck McGrady, R-Henderson

House Bill 483, DNA Samples/Additional Felonies, Rep. Justin Burr, R-Stanly

House Bill 129, Level Playing Field/Local Government Competition, Rep. Marilyn Avila, R-Wake

Senate Bill 215, State Treasurer’s Investments, Sen. Tom Apodaca, R-Henderson

Senate Bill 354, Rental Property/Lithium Battery Smoke Alarms, Sen. Stan Bingham, R-Davidson

Committee hearings

Public hearings on redistricting will continue at the end of the week. Redistricting is the process the state goes through to redraw the lines between political districts. It’s done after every census. You can find more information on this week’s public hearing across the state at this link.

Anthony Greco is an associate editor of Carolina Journal.