N.C. budget talks could go on into August

Close, but no cigar.

It seems likely that after weeks of work and intense debate, the N.C. General Assembly will not have a completed budget by the end of July.

With the previous continuing resolution expiring Wednesday, a new resolution extending the budget deadline was needed.

To keep the state government from grinding to a halt, the General Assembly voted to extend the resolution at its current levels through August 5.

The legislation was sent to the governor for his approval.

The many differences between the House and Senate budgets and the governor’s continued input into the negotiations have served to lengthen the process much further than originally expected.

Budgets have been finalized between June 30 and Sept. 12 for the past four sessions, and this year appears to be no different.

All three parties in the negotiations continue to discuss how much to spend in the final budget, debating whether there is a need for a spending cap.

Gov. Mike Easley has asked the leadership of the General Assembly to maintain the budget within his spending cap.

The cap sits $16.3 million above that of the Senate’s version, and it is $137 million less than the House’s figures.

The final numbers will help the rest of the General Assembly complete their portions of the budget, said Rep. Marian McLawhorn, D-Pitt.

“When the agreements are reached, we’ll be able to move through the process very quickly,” she said.

As legislators work to finalize the budget, the prospect of a state lottery hangs in the balance.

Many lottery advocates claim the money is necessary to improve education.

But Sen. Dan Clodfelter, D-Mecklenburg, opposes the legislation and said it will not help North Carolina in the long run.

“It has a net negative impact on economic activity,” he said. “It’s just simply moving money from one person’s pocket to another’s — that creates no wealth.”

Also, both the House and the Senate are moving to increase the cigarette tax in their respective budget proposals, but a difference of 10 cents has created great tension.

The Senate version had an increase of 35 cents per pack, whereas the House version increased it by only 25 cents.

Such an increase in taxes is sometimes necessary, said Rep. Verla Insko, D-Orange.

“The most important reason is the higher tax you have, the fewer people start smoking,” she said. “It’s a good source of recurring revenue.”

Tuition autonomy, education funding and health care also continue to plague the process.

With such a plethora of issues to squabble about, the process might continue late into August and even through September.

The debate will end though, said Sen. Charlie Albertson, D-Duplin.

“Of course, everyone thinks they have the answer,” he said.

“A decision will have to be made.”

Contact the State & National Editor at stntdesk@unc.edu.