February 6, 2003

New Session, New Leadership

WELCOME to the third year of the Living Income email Update (LIU)! The LIU provides timely regular analysis of the North Carolina General Assembly and how its activities affect low- and middle-income North Carolinians trying to make a living income. The update primarily follows the budget as it winds its way through the legislative process. There is particular attention paid to Health, Social Services, Public Education, Tax System, Unemployment Insurance, and Housing with links to more information regarding certain consumer issues of particular importance to low and moderate income North Carolinians. You can always add or remove your name from this update by e-mailing Sorien Schmidt.

In this Living Income Update:   

• NEW SESSION, NEW LEADERSHIP

• US HOUSE TAKES UP TANF REAUTHORIZATION BILL

• NEW JUSTICE CENTER POLICY BRIEF

• BTC Reports - NORTH CAROLINA IS NOT A "HIGH TAX" STATE

NEW SESSION, NEW LEADERSHIP

The 2003 Session of the NC General Assembly began on January 29 and only days after Representative Michael Decker (Forsyth) a religious conservative Republican switched to the Democratic party making the House an even split of 60 Democrats and 60 Republicans. For the first time in over 100 years a Speaker of the House was not elected on the first ballot cast. In fact, it took nine ballots before co-speakers were elected for the first time in state history. Representative Jim Black (D-Mecklenburg) was relected to share speaker duties with Representative Richard Morgan (R-Moore). They have agreed to alternate days presiding over the full House. Each committee will have equal numbers of Republicans and Democrats and presumably equally shared leadership. Supposedly, however, only Democrat William Culpepper will lead the powerful rules committee. Other power sharing arrangements, the rules themselves and committee assignments are still unknown. I expect this will be potter of how many contested or partisan issue will go - a long difficult path with many attempts at resolution and many, even unique, compromise solutions. It will be a year of extensive operational manuevering.

In sharp contrast the Senate easily reelected Marc Basnight (D-Dare) as President Pro Tempore again, continuing his record length leadership of that body. The Senate has already named its leadership and assigned members to committees. Click here to see the complete list of Senate Committee assignments. Some key leadership positions are as follows:

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US HOUSE TAKES UP TANF REAUTHORIZATION BILL

A Bill nearly identical to the one passed in 2002, was entered in the US House last week (HR 4). The House leadership intends to not take the bill through the usual committee process and to put it up for a vote on the floor of the House as early as this Thursday. The bill increases all work requirements substantially while at the same time limiting what activities can be counted toward work. The bill does not provide more TANF money to help state's meet these requirements nor does it provide enough money for the Child Care and Development Fund to continue even the number of child care subsidy slots currently available. The Administration estimates that there will be at least 200,000 fewer child care subsidy slots under HR 4, but several national groups think this estimate is low. See http://www.cbpp.org/2-5-03tanf.htm. for more information. Encourage your Congressional Representatives to vote against HR 4 and to insist that more money is allocated for child care and TANF. Expect bill summaries to be posted soon at Center for Law and Social Policy and at Center for Budget and Policy Priorities. The real action will be in the Senate and is expected to get moving in March.

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NEW JUSTICE CENTER POLICY BRIEF

With the new session the Justice Center has begun issuing the new NC Policy Brief each Monday of session. The brief is available at the Justice Center website - www.ncjustice.org - or you can have it emailed directly to you by the editor Rob Schofield. To get on Rob's email list or to learn more, contact him directly at rob@ncjustice.org. You will receive a link to the last NC Policy Brief with each of these LIU emails. To see the inaugural edition of NC Policy Brief, "Five Affordable Policy Solutions... in a Time of Recession and Fiscal Crisis" go to http://www.ncjustice.org/PolicyBrief/PB_0205_03.pdf.

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BTC Reports - NORTH CAROLINA IS NOT A "HIGH TAX" STATE

In its first issue of the 2003 session the NC Budget and Tax Center reports that Census Data shows that North Carolina is not a high tax state. How North Carolina's revenue system compares to other states is important to understand as policy makers review NC revenues in order to modernize the system and to try to address the third year of multi-billion dollar state deficits. To read the complete BTC Reports go to http://www.ncjustice.org/btc/2003reports/03_jan_1Rpt.pdf.

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