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This
week has been busy but not pleasant regarding budget negotiations.
In a matter of three days the Senate moved from rejecting the House’s
proposal to raise less revenue and make more cuts, to agreeing to
it this morning. Here are events as they have unfolded thus far:
| June
11: |
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Senate
puts forward budget that freezes all current taxes that are
set to sunset on June 30 and also increases tax on alcohol and
tobacco.
This
proposal is in response to increases in the state budget deficit
as economy continues to stall and state revenues come in less
that expected in earlier budget versions. Senate plan still
makes budget cuts but restores most egregious cuts made in House
proposals.
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June
16: |
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House
puts forward new plan that freezes only some of current taxes
and refuses to increase alcohol and tobacco taxes. House proposal
makes over $120m more in budget cuts than Senate plan. Senate
promptly rejects this proposal.
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Thursday
June 19 and
Monday
June 23: |
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Senate
declares that it is clear a budget will not pass before June
30, the end of the current fiscal year, and that they must freeze
sales tax and upper income tax bracket to avoid a loss of $384m
more revenue dollars. Senate passes a continuing resolution
that would continue current state budget past June 30 and freeze
these taxes.
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| Tuesday,
June 24: |
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House
rejects the continuing resolution. Governor Easley issues press
release stating, “I am meeting with the two speakers this
afternoon to help them resolve their differences. The House
defeat of the continuing resolution puts them on the brink of
creating a state budget crisis of their own making that is totally
unnecessary, especially considering that their budget proposal
is not balanced.”
House
puts forward their fourth budget proposal which freezes sales
tax and upper tax bracket, but does not delay the increase of
the child credit and marriage deduction. House does not raise
cigarette or alcohol tax. House plan cuts $180m more than Senate
plan in first year (State Fiscal Year (SFY) 2003-04) and cuts
over $500m more than Senate plan for SFY 2004-05. For first
year House proposes cutting $21m more in education and $60m
more in Health and Human Services, with cuts mushrooming to
$97m and $161 million respectively in the second year. House
agrees to many of the Senate’s special provisions but
much still in dispute. Privately, Senate leaders indicate they
are outraged at this proposal and will not make this level of
cuts.
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Wednesday,
June 25: |
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Governor
holds press conference declaring that House can’t get votes
to raise the cigarette and alcohol tax and asks them to again
consider delaying the increase in child credit and marriage deduction,
which drain more money from state coffers. Senate responds in
the media, "With no support from him [the Governor] for alcohol
or cigarette taxes, it pretty much eliminated any effort for us
to argue with the House," Basnight said. He said the goal
now is to protect education, economic development and human services
as best as possible with the available revenues.
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| Thursday,
June 26: |
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Legislative
leaders announce that they are working to complete a budget before
Tuesday, July 1, the start of the next fiscal year, and will be
working all weekend. Legislative leaders are working around the
clock to come to an agreement on what to cut. |
We know
that North Carolinians have sent over 16,000 emails to legislators
saying Save Services, Raise Revenue. In addition, thousands have called,
written, emailed and faxed their representatives about NOT cutting
specific programs – such as Smart Start, TEACH program for child
care workers, adult home specialists, Medicaid, education programs
for public school students who have limited English ability or who
are at risk of failing school – and these have been ignored.
Instead of raising revenue to save services, state leaders are choosing
to raise NO NEW REVENUE and instead CUT SERVICES AND PROGRAMS. This
is the fourth year state programs and services have been cut. This
is the third year that state jobs will be cut to help balance the
budget. While the conservative wing of the Republican party does not
officially hold any position of leadership, they have won the war.
If you
would like to write your state legislators to let them know your feelings
and thoughts about this you can go to the Covenant
with North Carolina’s Children cyberlobbying site and use
their message or compose your own.
If you
would like to write a letter to the editor of your local paper–
perhaps more helpful that writing legislators at this point –
go to click
here to find links to many North Carolina newspapers.
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