2001: Longest Session of N.C. General Assembly
Barbara Ann Hughes, PhD, RD, LDN, FADA
AAUW NC Public Policy Chair, State Issues
It is almost Thanksgiving at this writing and the N.C. General Assembly
continues to meet in Raleigh. Several items must be finalized before the
longest session in N.C. history ends.
While most Americans were focused last year on the presidential election,
another important campaign was conducted, virtually outside the view of all
but the most absorbed political junkies. According to Article I, Section 2
of the U.S. Constitution, every 10 years a national census is conducted to
determine how many representatives each state is apportioned, resulting in
new boundaries being drawn for most Congressional districts. N.C. has, due
to population increase, gained one new House seat. The Senate has passed
its legislative redistricting bill, but the House is still having trouble
with theirs. House Democrats are a few votes short of a plan that will
satisfy the majority of voting members. Hopefully, a new version will be
passed by Nov. 1, then both houses must pass each other's bills.
Republicans in both houses oppose the new district lines and it is a
certainty new suits will be filed, throwing both plans into the court
system to see if they comply with the federal Voting Rights Act. Due to the
lateness in getting both plans completed, January 2002 candidate filings to
run for office and the May 2002 primariescould be delayed.
The House and Senate passed a budget/revenue package on Sept. 21. The
revenue package includes a half-cent sales tax increase for the State
General Fund. The State will continue to pay reimbursement to counties. At
the end of two years, when the sales tax increase sunsets, the counties may
pick it up and keep the proceeds. The revenue package also includes a half
percent increase in income tax on the highest income earners, which sunsets
after three years. A tax on HMO premiums and liquor was added; the luxury
tax cap on automobiles was removed. The marriage penalty was eliminated,
the child tax credit increased, and a back-to-school shopping season sales
tax break created.
Loophole closings occurred in the revenue package, creating a tax on the
satellite industry comparable to that on cable TV; out-of-state and
in-state long distance calls were taxed the same, and tax on in-state calls
has been decreased from 6.5 to 6%. The tax credit for middle-income parents
who pay for their children's health insurance was eliminated. The revenue
package is supposed to generate one billion dollars over the next two
years. Revenue collections during the first quarter of our state fiscal
year are dismal and significantly lower than estimated. Governor Michael
Easley has directed all agencies, except education, to cut 4% from their
current budgets.
On the spending side, the Governor successfully initiated his plan to
reduce class sizes in grades K-3 in low-wealth, low-performing school
districts. About $6.5 million was designated for his "More at Four"
pre-kindergarten program. Community Colleges saw a slight rise in their
per-hour registration fee. The University System received a 9%
across-the-board tuition increase in addition to the individual
campus-initiated increases.
The Health and Human Services Department has worked hard to reduce their
budget, however, the Legislature created a $45 million trust fund for
people with mental health and substance abuse issues, to upgrade facilities
and move patients from institutional to community-based treatment. The
number of children from low income family who can be enrolled in the Health
Choice Insurance program was increased. More money was allocated to provide
breast and cervical cancer Medicaid coverage for uninsured women under the
age of 65. The Osteoporosis Prevention Task Force was extended for this
fiscal year. The general Government section of the budget increased the
funds for local domestic violence has been moved from a stand-alone agency
to become part of the Council for Women.
The Department of Health and Human Services is allowing programs to compete
for new Early Head Start funds to serve low-income families with children
under age three and pregnant women in select service areas. Local public
agencies, non-profits, and for-profit agencies are eligible to receive
funds, including current Head Start and Early Head Start grantees.