RALEIGH – Gov. Pat McCrory says he’d veto any North Carolina budget plan on his desk that raises teacher pay dramatically like the Senate wants because it would mean huge cuts elsewhere to pay for it.
McCrory told The Associated Press in an interview Thursday he’s not going to risk key government services and allow Medicaid reductions to accept the Senate’s average 11 percent pay offer. The original Senate proposal cut funding for thousands of teacher assistants to pay for it.
Senate Leader Phil Berger (R-Rockingham) issued the following statement Thursday:
“I’m disappointed by the governor’s threat to veto the largest teacher pay raise in state history and surprised by his demand for a budget without cuts to teacher assistants and Medicaid – given that his own budget included almost $20 million in cuts to teacher assistants along with significant, though ultimately achievable, cuts to Medicaid.
“The governor has been unable to sustain any of his previous vetoes in the Senate. It would be more helpful for him to work with members of both chambers of the legislature, since his unwillingness to listen to those who have an honest disagreement with him on spending priorities in favor of staging media stunts and budget gimmicks is a major reason the budget has not been finalized.”
The governor is siding with the latest House offer to raises teacher pay on average by 6 percent, up from 5 percent. He says 6 percent is about as far as he can go and feel comfortable.
The two chambers are negotiating budget adjustment for the year that started July 1.http://chapelboro.com/news/state-government/mccrory-threatens-senate-budget-veto/
Tonight at 7:00, the Orange County Board of Commissioners holds a work session (at the Southern Human Services Center) to continue discussing next year’s fiscal budget – including, perhaps most notably, the question of funding for Orange County’s two school districts.
The current proposal (with no property tax increase) includes a $2.9 million combined increase in spending for Orange County Schools and Chapel Hill-Carrboro City Schools – but the two districts face a combined shortfall of around $7 million. Local officials are also watching the budget debate in Raleigh, where legislators are considering at least one proposal that would eliminate funding for teaching assistants in grades 2 and 3 (among other things).
Many local residents have called on county commissioners to raise the county’s property tax rate to fully fund the school districts’ budget requests, but county officials have been reluctant to raise a rate that’s already relatively high (fifth-highest of North Carolina’s 100 counties).
With all of that (and more) in mind, WCHL’s Aaron Keck sat down on Tuesday with County Commissioner Penny Rich, who’s also a parent in the Chapel Hill-Carrboro district.
Listen to their conversation.
At its meeting on Monday, June 9, the Hillsborough Board of Commissioners is scheduled to vote on the proposed budget for fiscal year 2015.
The proposed budget includes no property tax or water rate increase, but does include an 8.8 percent increase in sewer rates to help pay for the $19.8 million upgrade to the town’s wastewater treatment plant. Other highlights of the proposal include $600,000 budgeted for design work on the Phase II expansion of the West Fork Reservoir and $176,520 for debt payment on Phases II and III of Riverwalk.
Hillsborough mayor Tom Stevens joined Aaron Keck on the WCHL Afternoon News this week to talk about the budget and long-term plans for the town of Hillsborough.
The board’s meeting will begin at 7:00 on Monday evening, in the Town Barn at 101 E. Orange Street.http://chapelboro.com/news/local-government/hillsborough-mayor-talks-town-budget-town-future/
Three major, and controversial, decisions have been made in the North Carolina General Assembly this past weekend: the Senate’s new spending plan, teacher pay raises, and the fracking bill.
The Senate has decided upon a new $21.1 billion spending plan for 2014-15 this weekend. Democrats were displeased with how quickly the decision was made, as it allowed for minimal negotiation. They seemed to be in consensus that the Senate was only interested in hearing their own approval, rather than the perspectives of the general public.
As part of this new budget plan, legislators also desire to encourage teachers to give up their tenure in exchange for an 11% raise in pay. Teachers, in response, are disagreeing with the motion as they desire more protection from unfriendly politics that surround schools presently. These raises are also planned to be gathered from cuts that would come from public school spending.
Other states are allegedly not attempting this swap of pay raise for tenure. Democrats agree that this action is not for the benefit of the teacher’s, but more of a cover-up for legislators’ inability to manage money wisely.
The fracking bill, completely supported by the House Republicans, is now on its way to be signed by Gov. Pat McCrory, who is more than ready to help get it passed. While Democrats were clearly unhappy with the bill, they failed to halt the process. Instead, they were able to add a few minor alterations to the bill as compromise before being sent to Gov. McCrory.
Many North Carolinians fear what the fracking might mean for chemicals that could get into well water, as well as how the Senate now seems to have the ability to override local governments in relation to how the fracking will be carried out.
As of now, there seems to be a great deal of controversy with each major decision processed by the General Assembly of North Carolina this past weekend. The uncertainty regarding the decided amount of the budget has some questioning how things are going to get better now. The risky move of raising teachers’ salaries whilst eliminating assistants and tenure is causing a rift of displeasure from educators of North Carolina, and unfavorable fracking plans that may affect local businesses in a way that they are unwilling to comply with the Senate’s decision.http://chapelboro.com/news/local-government/general-assembly-check/
The North Carolina General Assembly is meeting in “short session” this year – but there’s been no shortness of controversy.
At the center of debate last week was the budget proposal released by State Senate Republicans, which includes more than $400 million for a significant hike in teacher salaries – but that raise comes (among other things) at the expense of massive cuts to teacher assistants in grades 2 and 3.
Already facing a multi-million-dollar shortfall, officials at Chapel Hill-Carrboro City Schools say the Senate’s proposal would likely force the district to make even more cuts than they were initially planning – unless they can persuade County Commissioners to dig even deeper into the pool of local money. (Fully funding the budget requests of both the county’s districts would almost certainly necessitate a tax increase, though, which County Commissioners and county staff have been reluctant to impose.)
Meanwhile – though it hasn’t received as much media attention – local municipalities across the state are also contending with the repeal of a business privilege tax, which the AP reports could cost municipalities a total of $62 million statewide. Governor Pat McCrory signed the repeal on Thursday.
With those and other issues in mind, WCHL’s Aaron Keck invited Chapel Hill Mayor Mark Kleinschmidt and Chapel Hill-Carrboro City Schools Board member James Barrett to the studio on Thursday, for a pair of conversations about the local impact of recent actions at the NCGA.
Local elected officials say they’ll have to cut services, especially in the school systems, to make up for the budget cuts, which County Commissioner Penny Rich says were done to hurt the local governments.
“We know that the state is purposefully taking money away from school systems to make us suffer,” Rich says. “It’s not to make something better; it’s to make us suffer and to make us spend our money.”
Budget discussions between Orange County and the schools systems begin Tuesday.
Chapel-Carrboro school board member James Barrett says these cuts are moves by legislators that go against what the state constitution says is our foundation.
“Our state constitution is very clear that the responsibility of providing a sound education for all of our students lies in the general assembly, and they are passing on that,” Barrett says.
While raising taxes increases the amount of money going out of a household budget, former Mayor of Carrboro and Register of Deeds candidate Mark Chilton says cuts to the state budget have done more harm.
“There (are) a lot of households whose household budgets have been hit hard by the legislature as well,” Chilton says. “Up until a few months ago, I was working in the nonprofit sector, and every day seeing people come into our office who were single moms who were just barely scabbing it together with whatever resources they could find. We’re seeing the resources available declining rapidly. It puts people in some very tough situations.”
Federal cuts piled on the state cuts with things like reduced food stamp funding healthcare benefits. Rich adds that the cuts are sending more people below the poverty line.
“We turn more people in our county into working poor, instead of knowing that we can help them get above that,” Rich says. “We talked a little bit about public education, but it’s also (about) higher education. I have a son who’s at App State: the first semester, his food plan was not taxed; the second semester, his food plan was taxed. How are we helping our families in North Carolina let their kids get higher education?”
Chapel Hill Town Council member Ed Harrison says the General Assembly cut off the legs of the local governments when it not only cut the budget, but it also reduced the authority of the governing bodies.
“For a city or town, particularly, because we do not have home rule—nor do counties—that’s been the major impact, because we entered the session without having home rule and the General Assembly majority just piled on higher and deeper,” Harrison says. “They took away what little authority we thought we had, in some cases. For instance, in the City of Durham case, the ability to control who gets their water and sewer.”
What’s the solution? Council member Lee Storrow says the move that Raleigh is making now is just for show.
“In Orange County and across the state, local governments are having to find ways to increase revenue or increase taxes,” Storrow says. “ So it’s easy to say, at a superficial level, ‘look how great it is that we haven’t raised taxes’, but they’re just passing the buck onto local leaders and local governing bodies.”
He says with state and local elections right around the corner, there are places where Democrats can sneak in and take back part of the legislature.
“I appreciate the importance of finding creative solutions, and that’s incredibly valuable,” Storrow says. “But if we want to maintain the values that we care about in Orange County and in North Carolina, we are going to have to do work to support candidates who are in winnable districts, who can help move the legislature in a different direction.”
Rich says until that’s accomplished, the local governments have to show whatever support they can to those who are taking hits from the budget cuts.
“It’s really important that we get behind these people and they should know that we’re going to be there for them, even though monies are cut,” Rich says. “Can we set up some public-private partnerships? Can we get someone to donate paint? Can we support something like that? So, the money is the most important, but if we can’t give them money, we’ll be there for them to direct them to the right people that can help them with donated good.”
***Listen to the Raleigh to Orange Forum Hour***
Click here for all of the 2014 Community Forum stories.http://chapelboro.com/news/2014-community-forum/take-back-budget/
The push and pull of budget negotiations between Raleigh and Chapel Hill has begun again as 2014-15 budget talks have begun, and the state’s budget director, Art Pope, says the UNC system is asking for too much.
The Board of Governors sent the legislature a budget request 11.3 percent greater than that of the 2013-14 fiscal year. Pope replied saying that “it simply is not (a) realistic” request. He also said the request made by UNC was based on needs when it should have been a true budget. However, President Tom Ross said he and the University had a statutory duty to present the needs.
In December, the Office of State Budget and Management sent out a budget instruction letter asking all state agencies to submit a budget reduction and expansion request. In that, it needed to “equate to a net savings of a minimum of two percent of the agency’s 2014-15 certified appropriation.”
Pope said the Board of Governors should reconsider its request and submit a “more realistic proposal.”
To read the response by Pope to the Board of Governors, click here.http://chapelboro.com/news/unc/art-pope-slams-unc-systems-budget-needs-2014-15/
RALEIGH – North Carolina Department of Commerce officials say the state is ahead of schedule in paying off its debt to the federal government.
“It’s been a good year in terms of paying off the debt,” says Division of Employment Security assistant secretary Dale Folwell. “We’re almost $100 million ahead of expectation.”
That’s important, he says, because “as long as this debt’s outstanding, employers in North Carolina–or future employers who are thinking about coming here–have to pay a higher federal unemployment tax.”
Following the recessions of 2001 and 2008, North Carolina borrowed heavily from the federal government to pay state unemployment benefits. By January of this year, the resulting debt had reached $2.5 billion—third highest in the nation behind only New York and California.
Governor Pat McCrory made paying off the debt a priority, and researchers estimated that the debt would be reduced to about $2 billion by the end of the year—but Folwell says it’s now even less than that, about $1.87 billion.
The focus on debt reduction came at the expense of other programs, but Folwell says the debt puts North Carolina at a competitive disadvantage when it comes to attracting new businesses or retaining existing ones, so paying it off is important—and it’s equally important to prevent it from happening again.
“Paying off the debt–we can’t stop there,” he says. “We have to build a surplus, so that no one ever gets in this situation again.”
If the latest projections hold, the state will pay off the debt in full by November of 2015.http://chapelboro.com/news/state-government/nc-ahead-schedule-paying-federal-debt/
WASHINGTON — A sweeping vote by conservative Republicans controlling the House and President Barack Obama’s Democratic allies has sent a bipartisan budget agreement to the Senate, where it will encounter stronger but probably futile resistance from the GOP.
The modest package passed by the House would ease the harshest effects of another round of automatic spending cuts set to hit the Pentagon and domestic agencies next month. Supporters of the measure easily beat back attacks on it from conservative organizations that sometimes raise money by stoking conflict within the Republican Party.
Democrats who were upset that the bill does not extend jobless benefits for the long-term unemployed suppressed their doubts to advance the measure to the Democratic-led Senate, where Obama’s supporters appear set to clear it next week for his signature.http://chapelboro.com/news/national/house-gop-conservatives-help-propel-budget-bill/
WASHINGTON — House Republicans are rallying behind a modest budget pact that promises to bring a temporary halt to budget brinkmanship in Washington and ease automatic budget cuts that would otherwise slam the Pentagon and domestic agencies for a second straight year.
President Barack Obama and Senate Democrats also are praising the measure negotiated with House Budget Committee Chairman Paul Ryan, the Wisconsin Republican who has morphed, however briefly, from an uncompromising small-government stalwart into a dealmaker eager to claim a partial victory on the budget.
The deal Ryan negotiated with Senate Democratic counterpart Patty Murray would preserve the bulk of tough agency spending cuts the GOP won in a 2011 showdown with Obama, while reducing the chances of a rerun of the partial government shutdown.
It’s set for a vote Thursday.http://chapelboro.com/news/national/house-republicans-get-behind-budget-agreement/