Back

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.