NC Justice Center's Living Income Initiative E-mail Update

April 24, 2003

The Living Income Initiative is a special project of the NC Justice and Community Development Center. It is
supported completely through contributions and foundation support. You can contribute directly by mail at
Living Income Initiative, P.O. Box 28068, Raleigh, NC 27611. Email us at sorien@ncjustice.org

ALERT! CALL STATE SENATORS NOW!

LIVING INCOME EMAIL UPDATE

Last week the House passed its version of the budget. This is the earliest a budget has passed either house in 20 years. Not to be outdone by the House, the Senate is now intending to pass their budget by the end of next week. First votes should be taken on Monday. Senators have been told to cut the same amounts as cut by the House in Education, Justice and Public Safety and Health and Human Services. The House budget cut $927m in programs, services and staff, $91m more in cuts than in the Governors budget. There has been no public discussion about whether or how to raise more money. Without new revenue the Senate must cut the same amount as cut by the House. Whether they cut the same items or others, the cuts will be devastating if made at these levels. Some of these cuts are in addition to three years of cuts already made to these same or related a programs. SEE BELOW FOR MORE DETAILS.

NOW IS THE TIME TO CONTACT KEY SENATORS
ABOUT THE BUDGET AND THE NEED TO RAISE MORE REVENUE.

LET SENATORS KNOW:

THE CUTS UNDER CONSIDERATION ARE UNACCEPTABLE AND WILL INJURE MANY VULNERABLE NORTH CAROLINIANS;
THE CUTS WILL COST THE STATE MORE IN THE LONG RUN;
SENATORS MUST SAVE SERVICES by RAISING REVENUE


CALL OR EMAIL THE FOLLOWING KEY SENATORS AS SOON AS POSSIBLE!

Appropriations Committee on Health and Human Services:

  Sen. William Purcell, Co-Chair Billp@ncleg.net 919-715-0690
  Sen. Eric Reeves, Co-Chair Ericr@ncleg.net 919-715-6400
  Sen. John Kerr Johnk@ncleg.net 919-733-5621
Senate President Pro Tempore
 

Marc Basnight

marcb@ncleg.net (919) 733-6854
Full Appropriations/Base Budget Committee
  Co-Chairman Sen. Linda Garrou lindag@ncleg.net (919) 733-5620
  Co-Chairman Sen. Walter H. Dalton walterd@ncleg.net (919) 715-3038
xxx Co-Chairman Sen. Kay R. Hagan kayh@ncleg.net (919) 733-5856

OR CYBERLOBBY: YOU CAN ALSO CONTACT SENATORS THROUGH THE COVENANT WITH NORTH CAROLINA’S CHILDREN’S CYBERLOBBYING SITE

GO TO: http://capwiz.com/cwncc/issues/alert/?alertid=1847371&type=ST

Simply enter your zip-code in the “Take Action Now” box and press “GO.” You can write your letter yourself, or use some or all of the language provided.

ADDITIONAL EXPLANATION

SENATE VOTING ON BUDGET ON MONDAY

The Senate, working from the House plan, is now preparing their version of the budget. Not to be outdone by the House, they intend to pass a Senate budget by the end of next week. There has been little public discussion about which cuts the Senate intends to take. At 10:30am on Monday (April 28), the budget is to be released to the Appropriations subcommittees in the morning and to full Appropriations in the afternoon for approval. On Tuesday and Wednesday, they plan to pass the budget on the Senate floor.

THERE HAVE BEEN NO PUBLIC DISCUSSIONS IN THE SENATE ABOUT REVENUE

Similar to the House process, Senate appropriations leaders are writing the budget based on a set level of revenue but there have been no public discussions about from where they will get the money. The state is still facing a budget deficit of over 1 billion dollars. To maintain current programs and balance their budget, the House found, froze or raised $769m and cut $927m. Rumors are that the Senate will raise/find at least as much money, but similar levels of cuts will be necessary. Except for increases in fees, no new revenue increases have been publicly considered. (The House discussed, but did not vote on, an increase in the cigarette tax.) If the Senate does not raise more revenue then they must make the same level of cuts as made in the House budget.

SENATE BUDGET MUST CHANGE CUTS OR THEY ARE FINAL

If a cut is made in both the House and Senate budgets, then it is final. This is because the rules limit discussion between the House and Senate when they are negotiating one final state budget. Under the rules, only those items that are not the same in both budgets may be changed during final budget negotiations. This means that if the Senate does not restore some of the devastating cuts made in the House budget, then those cuts become final.

CUTS UNDER CONSIDERATION

ELIMINATE Medicaid Coverage of 19 and 20 year olds
ELIMINATE Medicaid Coverage for Some Pregnant Women and Infants Under One
ELIMINATE Transitional Medicaid for Families Working Their Way Off Welfare
FREEZE Health Choice Health insurance for children
REDUCE per pupil Funding for Students with Limited English Proficiency
CUT Smart Start Local Partnerships for Children and the State Partnership for Children
ELIMINATE Intensive Home Visitation
REDUCE per pupil spending for Students at Risk of Failing Public School
CUT funding to local Public School Systems
Also under consideration are cuts in Mental Health funding.

THERE ARE OTHER OPTIONS TO RAISE REVENUE
Delaying the child credit and the marriage penalty fix - $54m
Increase tax on cigarettes by 50 cents (to national median)
(For more information contact Pam Seamans, Executive Director
of the NC Alliance for Health at 919-403-9204 or
pamseamans@nc.rr.com )
- $308m
Close Machinery Tax Loophole - $178.5m
4% Corporate and Personal Income Tax Surcharge - $350m

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CONTACTS & LINKS

Living Income Email Update and Advocacy
Sorien K. Schmidt 919-856-2151 sorien@ncjustice.org
Living Income Research and Grassroots Campaigns
Elizabeth Jordan 919-856-3185
Living Income Grassroots Education and Organizing
Sheila Kingsberry Burt 919-856-3194
Elaine Mejia
NCJCDC Budget & Tax Center
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