The state House and Senate are finishing their work on budget, tax, and social issues before the session ends this summer. At press time, the House budget proposal is still working. The approved Senate Budget cuts:

•     $100 million from the Rural Center, Golden LEAF, regional economic development boards, and the Bio-Fuels Center

•     $83 million from established economic development boards, to be replaced with $17 million for a new program in the Commerce Department

•     $400+ million from education: removing the cap on class sizes; eliminating teacher tenure; cuts to Pre-K; and taking Lottery funds away from education programs

•    Approximately $100 million in job creation funds

•     Medicaid reimbursement to rural hospitals, benefits and reimbursement rates, and increased co-pays

•     Funding for road and bridge construction and maintenance

•     All funding for legal services for prisoners

•     All funding for public financing for judicial campaigns

Nathan Ramsey, State Representative, District 115, Buncombe County.
Nathan Ramsey, State Representative, District 115, Buncombe County.

The Senate budget would also close the Buncombe Correctional Center (BCC), Buncombe Juvenile Detention Center (BJDC), and the Julian F. Keith Center. BCC houses inmates within five years of being released; more than 100 volunteers work with the inmates to help them reintegrate into the community. Ramsey writes in his newsletter, “If this facility closes, families will be forced to travel east to visit their loved ones, and it will be much more difficult to find jobs for the inmates if they are located in Rutherford or McDowell Counties. Facilities like BCC actually save taxpayers money in the long run by reducing the re-incarceration rate.”

The BJDC in Swannanoa houses juveniles under age 16 awaiting trial in Western North Carolina; many could face round-trip travel times of up to eight hours for court appearance.

The Keith Center annually serves more than 4,000 individuals with substance abuse and mental health diagnoses, employing 200 staff. Says Ramsey, “If this facility closes…many of these individuals will end up in emergency rooms or county jails; I cannot see how, in the long term, this saves state dollars.”

Tax Reform

Republican sponsors believe that House Bill 998 will result in $1.2 billion less in revenue over five years. The plan would lower personal income taxes to a flat rate of 5.9%, eliminating the tiered rates of 6.0%, 6.75%, and 7.75%. Cuts to personal income taxes would total $1.9 billion over five years, while 80% of North Carolinians will likely be faced with $250 million in higher sales taxes and other fees. A person whose net taxable income is $18,000 would save $18.00; someone with a taxable income of $500,000 would save as much as $8,000 per year—money that would no longer be available to support schools, safety, or healthcare for North Carolina citizens.

Redistricting

During the first week of June, redistricting trials began to determine if race was the driving influence in the formation of congressional and legislative districts in 2011. A three-judge panel heard from redistricting experts and politicians to examine whether Republican state legislators’ approval of voting district maps sought to illegally pack black voters, who historically favor Democratic candidates, into certain districts to improve Republican odds in other districts.

Democratic voters and civil rights and voting advocacy groups contend that dozens of districts across the state should be struck down. GOP leaders are seeking to have the lawsuits thrown out. Judges have not set a date to rule on the motions.

Racial Justice

The Senate voted to repeal the 2009 Racial Justice Act on a party-line vote of 77-39. SB 306 strikes the Racial Justice Act from state law, voiding all pending cases for relief under the statute. The 2009 law allowed death row inmates to seek to have their sentences commuted to life without parole if they can prove to a judge that racism played a role in their sentencing.

House member Susan Fisher (D-Buncombe), said, “The Racial Justice Act protected the death penalty’s administration from prejudice and provided tools to address historical and systematic discrimination in our justice system. By repealing the Racial Justice Act, the majority denies our state the opportunity to confront past racism and live up to the ideal of equal protection under the law, and invites racial discrimination back into our justice system and our courtrooms.”

Education Vouchers HB 944

The House Education Committee voted 27-21 to provide vouchers worth $4,200 a year for students to attend private school. The most recent version of the measure would set aside $10 million for 2,000 scholarships for 2013-14 and $40 million for 7,000 more students in 2014-15. The bill exempts private schools from accountability measures required of public schools.

Ramsey stated in his e-newsletter, “While the sponsors’ intent to improve opportunities for our students is admirable, I am opposed to HB 944 because it takes resources away from our public schools when school budgets are strained.”

HB 786: NC Immigration Bill Advances to House floor

A bill granting driving privileges to North Carolina residents who are living in the country illegally, and authorizing police to detain those reasonably suspected of living in the country illegally, is headed to the State House floor. The bill also includes new E-Verify rules for government contractors and some tougher criminal justice provisions.

NC Unemployment

About 70,000 long-term unemployed workers will lose benefits July 1. A state law enacted last February repays federal money borrowed during the recession by capping weekly benefits at $350 (previously $535) and limiting benefits to between 13 and 20 weeks, down from six months. By cutting benefits, the state will lose economic activity worth as much as $1 billion over the next year.

Fair Lending

The Senate has passed a bill allowing consumer lending companies to charge much higher interest rates while eliminating many protections for borrowers.