Greetings, friends! The last two very busy weeks have been filled with budget meetings in committees. I anticipate that next week will be just as busy as the budget is debated on the House floor prior to a vote.
On Wednesday, our Appropriations committee spent nine hours to hear 105 proposed amendments to the budget. Many people involved in the budget process have commented on the efficiency of this year's process, and attributed the overall expediency to the groundwork that had been laid in the various subcommittees. By the end of April, we are where the process usually is in June. We started early, and have worked hard throughout the session.
This year's budget process has been the most honest, transparent and open one that has been seen in the last decade. From the onset of our budget meetings, decisions have been made with openness and transparency. The House budget has been built from the bottom up in an effort to "right size" state government. We absolutely must reduce spending, reduce the tax burden and shrink the scope of government and this budget turns us in that direction.
After a decade of tax increases that have given our state the highest tax burden in the Southeast, this budget offers the single-biggest tax cut in North Carolina history. By balancing the budget without increasing tax rates, we are restoring over $1.5 billion into the private sector.
This is all about improving jobs and the economy. After the last tax increase, unemployment and bankruptcies in our state went through the roof. The Tax Foundation lists our state among the ten worst in the nation regarding how taxes and regulations affect the jobs climate. This budget is a step toward reversing that ugly distinction.
For the first time in many years, members and the public have had the budget for almost a week to study, rather than receiving it late night prior to the day of floor debate. I applaud our leaders for doing this. The budget is available to the public on-line and you may go to the NCGA website at www.ncleg.net to view the entire budget.
Some of the highlights of the budget bill to date are as follows:
Education
We have funded teaching positions in K-12 to the fullest level - every teaching position in the state has been funded. Our budget also accounts for projected enrollment growth, whereas the governor's proposed budget did not. We funded every position in K-12 except for some of the teacher's assistants. Many superintendents across the state have already made priority decisions to remove many of the TA positions. However, in our budget we have also given superintendents the flexibility to save dollars where they can, rather than making every local spending decision from Raleigh. This budget avoids the huge unfunded mandates to the counties that the Governor's budget had proposed. Such mandates could have likely added three to four cents to our county's tax rate. I personally told her budget director that this was unacceptable. Among other things, her budget would have shifted responsibilities from the State to local education agencies for workers compensation, tort claims, and school bus replacement. These mandates alone would shift $74.5 million of state operating responsibilities, and our county taxpayers cannot afford this. This budget shifts emphasis from the bureaucracy to the classroom. It reduces the Department of Public Instruction agency budget by 16%. For years, legislative leaders continued to believe that throwing money at education is the only necessary solution. This is about more than money; this is about reversing the trend of continued increased spending, fueling more bureaucracy, and decreasing outcomes. This budget requires that at least 65% of “education” money actually be spent toward the classroom.
Health & Human Services
Over half of all budget reductions in HHS have been achieved through savings, including swapping federal block grant funds to replace state funds to the extent possible. This will cause no loss of services. All HHS treatment facilities, schools, mental health hospitals and contract beds have been preserved. We have laid the groundwork for future healthcare innovation and reform; better management and utilization of services; and made substantial progress toward the goal of bending the cost curve for medical and mental health services in North Carolina. We also recognize the cost savings when people use community public health centers when possible rather than hospital emergency rooms. For this reason, we restored the funding to Public Health centers that the governor’s proposed budget had cut.
Justice & Public Safety
The budget creates a new Department of Public Safety, which combines the Departments of Crime Control and Public Safety, Juvenile Justice and Delinquency Prevention, and Correction. A net reduction of 7% was achieved by eliminating over 800 vacant positions and reducing administrative costs in all six agencies.
Transportation
Funding for maintenance and construction of the existing road system has been increased by $670 million over the biennium. The neglect of road maintenance as the Highway Trust Fund has been raided has been a sad commentary, as our state used to be known as the "Good Roads State". The budget begins the process of removing politics from transportation funding by removing all urban loop projects from statutes and moving them to the Mobility Fund.
General Government
The budget achieves savings through reduction of operating costs, administrative reductions, and elimination of vacant positions. It fully funds the building reserves for new DHHS buildings. It eliminated 17 positions from the General Assembly and 13 positions from the Governor's office.
Natural & Economic Resources
We have reduced operating budgets across agencies and eliminated programs to achieve almost 23% in savings. We also provide nonrecurring funds to promote job creation and economic development.
Fees
The budget includes some reasonable fee increases which only help to recoup the costs for state government providing a service. The fees are not designed to generate a profit for government. Fees are, by definition, only applied to those who use the service. Most people believe this is only fair, rather than increasing taxes on everyone to further subsidize these services.
Just the Facts
There will of course be those liberal detractors of the budget that are pushing for a continued policy of tax increases and higher spending. Our budget spending is up almost 50% in only seven years! This is unsustainable, and we were not elected to continue such irresponsible spending. But, here are two items of misinformation that we hear.
1) Liberals in Raleigh are saying this budget hurts jobs by laying off state employees. For many reasons, this is not true. The budget downsizes some areas, and eliminates approximately 18,500 positions (thousands of which are vacant). The normal attrition rate of state positions is 30,000 per year... read this again, we lose 30,000 jobs a year through natural turnover and attrition. It bears note that North Carolina's state government jobs are reported to be well above average in number, and have grown considerably at a time private sector jobs have considerably declined.
2) Liberals in Raleigh are saying this budget cuts too much and will ‘take our state back to the dark ages’. One legislator said ‘it is draconian’. This is also not true. This budget is equivalent per capita in real, inflation adjusted dollars to the budget from fiscal year 2003. That means that if the budget had simply grown annually based on inflation plus population growth, this is where we would be. If this budget is 'draconian', the same must be said for the 2003 budget (which was passed by a Democratic House, Senate, and Governor). Clearly, any hysteria is all political in nature.
We cannot continue on the spending path we have been on. Many of our dedicated funds (Highway Trust Fund, Rainy Day Fund, etc.) have been borrowed, and our State Treasurer says we cannot continue to borrow more. Our State Health Plan is insolvent, with a shortfall of $515 million (and a actuarial shortfall of $33 billion). There are many responsible choices restored in this budget - too many to list. One is that we are once again fully funding the "Rainy Day" emergency fund as it was designed. The recent barrage of tornadoes has reminded us that we need to be ready for such emergencies.
In short, we cannot continue to spend what we do not have. This budget represents a step in the right direction as we attempt to get North Carolina’s fiscal house in order.
Finally, as mentioned, our state has seen devastation over the past two weeks in the aftermath of storm damage from widespread tornadoes. Major damage and destruction barely missed the legislative complex but is very evident in downtown Raleigh. I want to encourage each of you to do what you can to help our tornado victims, no matter how small. Many of these victims lost virtually all their belongings. We are very fortunate in our district to have been spared from the total devastation these storms produced in other parts of the state.
Thank you for allowing me to serve you in Raleigh. With all of the death and damage we have seen in North Carolina and through the southeast, let us all remain thankful for all we have and for the blessings that have been bestowed upon us. I encourage you to remember the National Day of Prayer on Thursday.
Take care and God bless. Bert
May 2, 2011
April 20, 2011
Highlights as the 100-Day Agenda Proceeds
The legislature continues to work for needed progress in many areas. The “100 day agenda” seems to mirror the majority of our citizens according to surveys. It is a foremost objective to make our state much more attractive for businesses to create jobs! This means reversing the former policy of regular tax hikes to fuel increased government spending. We inherit the largest tax burden in our region of the country, which is stifling our families and businesses in this struggling economy.
We are committed to balancing the budget by reducing spending, despite the cry from some in Raleigh to raise taxes again. It is a fact that the last tax increase in 2009, in the midst of the Great Recession, was followed by the largest recorded job losses and foreclosures since the Great Depression. We must work to reverse that course, even amidst criticism from certain interest groups opposed to reductions in their programs. We must learn to prioritize limited resources, and spend within our means.
State government is divided as the governor opposes this agenda. This has never been more obvious than the past week, when the governor issued a string of vetoes and threatened more. It is clear that the lines are being drawn as the 2012 elections will determine whether there will be a real change in the state’s direction. I maintain that the borrow, tax and spend policies of the past decade are not sustainable.
This week, the House and Senate passed a continuing resolution budget. If the final budget were not passed by June 30, this would allow the Governor to continue funds for spending by state departments at a level that would balance the new budget without raising taxes. It is a measure intended to provide a level of certainty for state employees and the public. People do not want a standoff such as we have seen in Washington. However, the governor vetoed this legislation - a troubling sign. Several bills were recently passed to reduce unnecessary regulatory burdens on small businesses. A new Joint Commission on Regulatory Reform is also holding meetings across the state to address this matter. The nonpartisan Tax Foundation ranks North Carolina in the bottom ten in the country regarding the tax and regulation environment that affects job creation. We cannot afford to continue to lose jobs as we have.
The House and Senate have passed bills to help meet the demand for more charter schools. About 20,000 students remain on waiting lists as their parents want this choice. Public charter schools are less funded than traditional public schools, so this would also free more money per pupil for the traditional schools. It is a win-win situation. We are hopeful to pass a law this year, but it will require some Democratic support from either the governor or a few House members to override a potential veto.
Other bills are being passed to protect private property rights. Many address abuses regarding forced annexations. We expect to pass a comprehensive reform bill this year. Also, the House Judiciary Committee (on which I serve) passed the “Eminent Domain” constitutional amendment bill to protect private property rights.
The vast majority of NC voters surveyed believe that a voter ID law will help protect the integrity of elections. The House Elections committee has passed this bill, but there was vigorous opposition and the vote was divided on straight party lines. Our bill is modeled on the Indiana and Georgia laws that were upheld in the Supreme Court.
We took a step toward better government by passing a constitutional amendment bill that would limit the Speaker or President Pro Tem to no more than two consecutive terms. Too much power is not a good thing, as has been evidenced unfortunately. Speaker Tillis and President Pro Tem Berger are to be commended for leading the effort on this good bill. The Governor cannot veto a constitutional amendment.
These are just some of the recent highlights. There is much in Raleigh that needs to be addressed. We will do what we can in a reasonable time frame, given the restraint of divided government. We remain hopeful that we can accomplish enough this year to put our state on a better track. Please pray for wisdom for us as we proceed.
We are committed to balancing the budget by reducing spending, despite the cry from some in Raleigh to raise taxes again. It is a fact that the last tax increase in 2009, in the midst of the Great Recession, was followed by the largest recorded job losses and foreclosures since the Great Depression. We must work to reverse that course, even amidst criticism from certain interest groups opposed to reductions in their programs. We must learn to prioritize limited resources, and spend within our means.
State government is divided as the governor opposes this agenda. This has never been more obvious than the past week, when the governor issued a string of vetoes and threatened more. It is clear that the lines are being drawn as the 2012 elections will determine whether there will be a real change in the state’s direction. I maintain that the borrow, tax and spend policies of the past decade are not sustainable.
This week, the House and Senate passed a continuing resolution budget. If the final budget were not passed by June 30, this would allow the Governor to continue funds for spending by state departments at a level that would balance the new budget without raising taxes. It is a measure intended to provide a level of certainty for state employees and the public. People do not want a standoff such as we have seen in Washington. However, the governor vetoed this legislation - a troubling sign. Several bills were recently passed to reduce unnecessary regulatory burdens on small businesses. A new Joint Commission on Regulatory Reform is also holding meetings across the state to address this matter. The nonpartisan Tax Foundation ranks North Carolina in the bottom ten in the country regarding the tax and regulation environment that affects job creation. We cannot afford to continue to lose jobs as we have.
The House and Senate have passed bills to help meet the demand for more charter schools. About 20,000 students remain on waiting lists as their parents want this choice. Public charter schools are less funded than traditional public schools, so this would also free more money per pupil for the traditional schools. It is a win-win situation. We are hopeful to pass a law this year, but it will require some Democratic support from either the governor or a few House members to override a potential veto.
Other bills are being passed to protect private property rights. Many address abuses regarding forced annexations. We expect to pass a comprehensive reform bill this year. Also, the House Judiciary Committee (on which I serve) passed the “Eminent Domain” constitutional amendment bill to protect private property rights.
The vast majority of NC voters surveyed believe that a voter ID law will help protect the integrity of elections. The House Elections committee has passed this bill, but there was vigorous opposition and the vote was divided on straight party lines. Our bill is modeled on the Indiana and Georgia laws that were upheld in the Supreme Court.
We took a step toward better government by passing a constitutional amendment bill that would limit the Speaker or President Pro Tem to no more than two consecutive terms. Too much power is not a good thing, as has been evidenced unfortunately. Speaker Tillis and President Pro Tem Berger are to be commended for leading the effort on this good bill. The Governor cannot veto a constitutional amendment.
These are just some of the recent highlights. There is much in Raleigh that needs to be addressed. We will do what we can in a reasonable time frame, given the restraint of divided government. We remain hopeful that we can accomplish enough this year to put our state on a better track. Please pray for wisdom for us as we proceed.
March 4, 2011
Regulatory Reform and Other Legislative Reforms
In this historic and extremely challenging session of the General Assembly, we remain committed to moving our state toward fiscal stability and order.
We recently passed Senate Bill 22 into law, which provides a stopgap on job-killing state government regulations. Meanwhile, the Joint Committee on Regulatory Reform is meeting throughout the state, hearing from citizens and determining which burdensome small business regulations we can eliminate.
The House passed Senate Bill 109, freeing hundreds of millions of dollars that can be used for job retention or taxpayer refunds. We also passed House Bill 2, which if not vetoed by the Governor, would put North Carolina in opposition to the job-killing mandates of the Federal health care bill. North Carolina is the only state in the Southeast that is not part of the 29 states legally challenging these mandates which judges have been declared unconstitutional but will end up in the Supreme Court. We are continuing to work diligently on reforms in areas such as education and elections. These include lifting the cap on charter schools. Also, a bill was passed that would end some unnecessary and ineffective testing – a bill strongly favored by parents and teachers.
A sad commentary on Raleigh politics was the condition of the State Health Plan for teachers and all state employees. The neglect and mismanagement had led to insolvency of this plan – a disgrace and a slap in the face to the state employees. The new majority inherited a plan with a current $515 million shortfall, and a longer term actuarial shortfall in excess of $33 billion.
This week the House concurred with the Senate and passed SB 265, which not only revives the health plan but incorporates many provisions the State Employees Association of NC (SEANC) has been asking for over the years. The SEANC representative at our committee meeting made a strong statement endorsing the plan. The SEANC newsletter counteracts much of the political posturing this issue has created among some politicians and special interest groups. As a supplement to this newsletter, I will forward you a copy for those that would like to see it.
Regarding election reforms, there are several bills filed that would help ensure a more fair process and the Voter ID bill would help ensure the integrity of our elections. Surveys consistently indicate that this is favored by over 80% of NC voters. We have also passed bills that seek to address North Carolina’s laws related to a citizen’s Second Amendment rights. The concealed carry laws have reportedly been a huge success, and there is evidence of reduced crime involving guns since they have been in effect.
As a strong supporter of Second Amendment rights, I find myself continuing to remind people that gun-restricting laws will only restrict law-abiding citizens’ rights! The criminals will carry their guns regardless of the laws. Last week we passed the Unborn Victims of Violence Act, as many parents and grandparents of victims emotionally watched in the gallery. At least 35 states reportedly have similar laws, including California since 1969. Republicans have been introducing the bill for 25 years, but the Democratic leadership would never allow a vote. It passed with a 75-vote veto-proof majority. I was delighted to co-sponsor this bill.
I am on the House Government Committee. Many of our bills have dealt with forced annexation abuses across the state. Some of these situations have been tying up our courts as citizens attempt to fight these abuses. North Carolina annexation laws are among the most anti-citizen in the nation. We are attempting to address these individual situations in progress, while we are also taking up broad annexation reform going forward. The Speaker appointed me to two other special committees that I am delighted to serve on. The House just elected eight new members to the UNC Board of Governors; I was on the Nominating Committee. I am also especially pleased to serve on the Redistricting Committee. We are just now getting all the necessary census data to carry out the important task of drawing fair and legal congressional and legislative districts.
On a final, happy note, I was delighted to spend time this week with several classes of students from our area as they visited the General Assembly. It is always a rewarding experience to work with children. I also enjoyed the well attended Townhall Meeting that we had this morning in Wentworth. It is good to know so many citizens that are interested in participating in a civic discussion with their representative. As always, I appreciate your prayers as I continue to do my best to serve the citizens of Rockingham County and North Carolina. It is an honor and privilege to represent you in the legislature.
We recently passed Senate Bill 22 into law, which provides a stopgap on job-killing state government regulations. Meanwhile, the Joint Committee on Regulatory Reform is meeting throughout the state, hearing from citizens and determining which burdensome small business regulations we can eliminate.
The House passed Senate Bill 109, freeing hundreds of millions of dollars that can be used for job retention or taxpayer refunds. We also passed House Bill 2, which if not vetoed by the Governor, would put North Carolina in opposition to the job-killing mandates of the Federal health care bill. North Carolina is the only state in the Southeast that is not part of the 29 states legally challenging these mandates which judges have been declared unconstitutional but will end up in the Supreme Court. We are continuing to work diligently on reforms in areas such as education and elections. These include lifting the cap on charter schools. Also, a bill was passed that would end some unnecessary and ineffective testing – a bill strongly favored by parents and teachers.
A sad commentary on Raleigh politics was the condition of the State Health Plan for teachers and all state employees. The neglect and mismanagement had led to insolvency of this plan – a disgrace and a slap in the face to the state employees. The new majority inherited a plan with a current $515 million shortfall, and a longer term actuarial shortfall in excess of $33 billion.
This week the House concurred with the Senate and passed SB 265, which not only revives the health plan but incorporates many provisions the State Employees Association of NC (SEANC) has been asking for over the years. The SEANC representative at our committee meeting made a strong statement endorsing the plan. The SEANC newsletter counteracts much of the political posturing this issue has created among some politicians and special interest groups. As a supplement to this newsletter, I will forward you a copy for those that would like to see it.
Regarding election reforms, there are several bills filed that would help ensure a more fair process and the Voter ID bill would help ensure the integrity of our elections. Surveys consistently indicate that this is favored by over 80% of NC voters. We have also passed bills that seek to address North Carolina’s laws related to a citizen’s Second Amendment rights. The concealed carry laws have reportedly been a huge success, and there is evidence of reduced crime involving guns since they have been in effect.
As a strong supporter of Second Amendment rights, I find myself continuing to remind people that gun-restricting laws will only restrict law-abiding citizens’ rights! The criminals will carry their guns regardless of the laws. Last week we passed the Unborn Victims of Violence Act, as many parents and grandparents of victims emotionally watched in the gallery. At least 35 states reportedly have similar laws, including California since 1969. Republicans have been introducing the bill for 25 years, but the Democratic leadership would never allow a vote. It passed with a 75-vote veto-proof majority. I was delighted to co-sponsor this bill.
I am on the House Government Committee. Many of our bills have dealt with forced annexation abuses across the state. Some of these situations have been tying up our courts as citizens attempt to fight these abuses. North Carolina annexation laws are among the most anti-citizen in the nation. We are attempting to address these individual situations in progress, while we are also taking up broad annexation reform going forward. The Speaker appointed me to two other special committees that I am delighted to serve on. The House just elected eight new members to the UNC Board of Governors; I was on the Nominating Committee. I am also especially pleased to serve on the Redistricting Committee. We are just now getting all the necessary census data to carry out the important task of drawing fair and legal congressional and legislative districts.
On a final, happy note, I was delighted to spend time this week with several classes of students from our area as they visited the General Assembly. It is always a rewarding experience to work with children. I also enjoyed the well attended Townhall Meeting that we had this morning in Wentworth. It is good to know so many citizens that are interested in participating in a civic discussion with their representative. As always, I appreciate your prayers as I continue to do my best to serve the citizens of Rockingham County and North Carolina. It is an honor and privilege to represent you in the legislature.
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