Conferees
Working to Assemble Final Budget Document
House and Senate
conferees hope to quickly resolve differences in
budget bills that have passed each chamber,
setting the stage for a possible adjournment of
this year's legislative session within a week or
so. The only major item in disagreement is
whether to give most state empl (except classroom
teachers) a 5 percent pay raise, as the House
wants) or a 3 percent raise, as the Senate
prefers. The Senate is reluctant to go along with
the bigger pay raise out of a fear that that
state employees health plan is facing a huge
deficit next year. Both budgets envision state
spending of just over $14 billion for the year
that begins July 1.
The few other substantial differences in the
House and Senate budgets don't appear to be
dealbreakers. The House and Senate budgets both
propose a $30 million contribution to the Clean
Water Management Trust Fund, but the Senate
includes a provision that would increase state
funding for the program to $100 million a year by
2003, with the money coming from the General Fund
at the start of a fiscal year instead of from
unspent money at the end of the year.
Also, the Senate dropped a House proposal to
increase the N.C. Court of Appeals from 12 to 15
judges. A House plan to cut $2.7 million for UNC
Hospitals was removed by the Senate, which also
added $1.2 million for N.C. A&T State
University to match federal funds. The Senate
budget includes $2 million for the Department of
Commerce's Industrial Competitiveness Fund, the
same amount Hunt proposed. The House budget
includes just $1 million for the fund.
Chairing the Senate conferees are Sens. Aaron
Plyler (D-Union), Beverly Perdue (D-Craven) and
Fountain Odom (D-Mecklenburg). Chairing the House
conferees are Reps. Ruth Easterling
(D-Mecklenburg) and David Redwine (D-Brunswick).
Railroad Bill Advances
After a $61
million buyout by the state of private
shareholders, the North Carolina Railroad is now
a publicly-owned entity, but the General Assembly
is moving to allow the railroad to operate more
like a private enterprise. Legislation that
passed the Senate last week and is now before the
House empowers the N.C. Railroad board of
directors to run the business, not the state
Department of Transportation or the Board of
Transportation. That bill, S.
1183 NCRR Amendments, sponsored by Sen.
Walter Dalton (D-Rutherford), passed the Senate
42-0. A companion House bill, H. 1515, is being
sponsored by Rep. Walter Church (D-Burke). Both
make the NCRR board accountable only to the
General Assembly. At stake is who gets to make
decisions regarding the 200-foot-wide,
317-mile-long strip rail corridor that runs from
Morehead City through Raleigh and Greensboro to
Charlotte. The legislation grants quick-take
condemnation power to the NCRR board and the
right to deal quickly with encroachments. It also
gives the railroad dividends from its new lease
with Norfolk Southern. Deputy Transportation
Secretary David King thinks it is a good bill
because it will allow the state to move more
quickly to implement fast-rail service.
Bill Imposes New
Restrictions on Lobbyists
The
House Rules Committee on Wednesday favorably
reported a Senate-passed bill that would require
lobbyists to keep lists of every bill they lobby
legislators and filed detailed reports after the
legislature adjourns each year. The bill also
would require lobbyists to report lobbying
activity that occurs between legislative
sessions. on amid concerns that the measure just
creates more paperwork. The bill, S.
109 Lobbyist Disclosure, was introduced by
Sen. Brad Miller (D-Wake) and was passed by the
Senate last year. Speaking to the House
committee, Sen. Miller said the increased
restrictions and disclosures on lobbyists would
give the public a more complete picture of how
laws are made.But committee member Rep. Ed
McMahan (R-Mecklenburg) said the measure would do
little beyond create a mountain of paperwork for
lobbyists. The measure now goes to the House
floor.
Mental
Health Bill Advances
The
House Select Committee on Health Care Delivery on
Wednesday amended and then favorably reported a
bill intended to make hospitals and nursing homes
take greater care with patients suffering from
mental illnesses. The amendments to H.
1520 Restraints in Facilities, sponsored by
Rep. Verla Insko (D-Orange), diluted several
provisions of the bill opposed by hospitals and
the medical community. As originally written the
bill would have required hospitals and nursing
homes to report all deaths of patients who had to
be restrained in any way and imposed restrictions
on the use of physical and medical restraints. As
amended, it requires facilities to report deaths
when restraints are involved, but not in cases of
accidents, homicides or suicides. Also eliminated
was a provision that would subject facilities to
steep fines for not reporting deaths. The full
House was scheduled to take up the measure
Thursday.
Measure Helps Towns Pay
for Sewer Projects
The state Senate gave final
approval Monday to a bill that would make $200
million in state bond money available to towns as
grants to improve their water and sewer systems.
The measure, S1381
Reallocate Water Bond Funds, sponsored by
Sen. John Kerr (D-Wayne), reallocates the money
from the $800 million water and sewer bonds
approved in a 1998 voter referendum. Under Kerr's
bill, $146 million in bond proceeds would be
transferred to programs providing water and sewer
grants to local governments. The remaining $54
million would go to the Rural Center for Economic
Development for grants for sewage projects. Sen.
Kerr said the change from a loan program to
outright grants will mean an increase of 150
water and sewer projects begun by local
governments. The bill now goes to the House.
Toll Roads Bill Stalls
The state House balked
Tuesday at the idea of private toll roads, voting
105-8 to return to the Finance Committee a bill
that would allow three private and three
state-owned toll roads as pilot projects. The
action came on a floor vote on H.
1630 Toll Roads, sponsored by Rep. Jim
Crawford (D-Granville). Several questions arose
over granting private developers the use of state
condemnation powers. The vote all but killed the
bill for this year.
Legislation on Video Poker
Machines Moves
With South Carolina's ban
on video poker machines about to take effect,
legislative leaders in North Carolina are
expressing support for bills that would limit the
number, location and pay-off of video poker
machines that might migrate across the state
line. A Senate bill, S.
1542 Video Poker Machines Illegal, sponsored
by Sen. Allan Wellons (D-Johnston), makes it
illegal to have more than three poker machines at
one location and creates a $100 privilege tax per
machine. A House proposal also sets a
three-machine limit but imposes a $1,000
privilege tax and annual licensing fees. The
three-machine limit is intended to exclude video
poker parlors. South Carolina has banned video
poker parlors effective July 1. Senate President
Pro Tem Marc Basnight said he wants to outlaw
pay-offs, which now are capped at $10 worth of
prizes or coupons.
UNC Projects Clear Hurdle
The House
Finance Committee on Tuesday favorably reported a
bill authorizing the construction and financing,
without appropriations from the General Fund, of
several self-liquidating projects proposed by the
UNC System. The legislation, H.
1853 UNC Nonappropriated Capital Projects,
allows the UNC System to proceed with these
projects:
Appalachian State University
New Dining Hall - Supplement $ 9,569,744
Steam Distribution/Return System-Reconstruction $
3,109,200
East Carolina University
Diabetes Building - Planning $ 500,000
West End Dining Hall - Supplement $ 5,089,700
North Carolina School of the Arts
Technology Infrastructure - Residence Halls $
1,000,000
North Carolina State University
Expansion of Parking Facilities $ 9,000,000
Centennial Campus Infrastructure $18,780,000
Centennial Campus Tenant Upfits $ 6,750,000
The University of North Carolina at Asheville
New Residence Hall - Supplement $ 3,720,800
The University of North Carolina at Chapel
Hill
Sonja H. Stone Black Cultural Center $
9,000,000
The University of North Carolina at Charlotte
Alumni Center $ 3,300,000
The University of North Carolina at Greensboro
Parking Deck $11,000,000
The University of North Carolina at Pembroke
Dining Hall Addition $750,000.
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