Archive for June, 2009

METER EATER

Wednesday, June 24th, 2009

That humming sound from your electric meter soon will be tallying up the additional cost of a state sales tax. Sen. David Hoyle, senior chair of the Senate Finance Committee, proposed a 6.25 percent tax on electrical bills to House Appropriations Chairs late last week. It would produce about $1 billion in revenue, according to estimates from the Fiscal Research Division.

Gov. Perdue on Wednesday told House and Senate Appropriations chairs she want $1.5 billion in new revenue to save public education positions. The House version which was rejected by the Senate would have added just $740 million. The House did not have a “sin tax” provision for tobacco or alcohol assessments.

Manufacturers who would be hit hard by an electricity tax will be exempt, Hoyle confirmed this week.

ROOM TAX PROCEDES: Last Wednesday the Senate Finance Committee approved a one-cent increase in the Hickory-Conover hotel occupancy tax. The bill was presented by Rep. Ray Warren who represents Hickory and was approved on a voice vote without the support of Sen. Austin Allran who is still seething over his recent primary battle with Ms. Kitty Barnes.

Sen. Dan Clodfelter, presiding chair, turned to Allran and said, “I assume you will be handling this on the Senate floor?” Allran blushed and shook his head.

On Tuesday, the full Senate approved with Hickory tax with only six “no” votes. Allran’s was among them, surprising even some of his Republican colleagues.

HOMOPHOBIA ON PARADE: The power of the fundamentalist right wing in North Carolina politics was evidenced this week when the House took up a bill to prevent bullying in public schools. Known as the School Violence Prevention Act, the bill requires school systems to adopt a policy that makes bullying a punishable offense in schools. Race, religion, physical characteristics, gender, and sexual orientation were included in the bill. Republicans jumped on the issue and submitted floor amendments in an effort to gut the bill. Earlier in the day, legislators were bombarded with emails from fundamentalists who had been told by their pastors that the bill would promote homosexuality in schools.

Rep. Ray Warren did not vote on the bill, promising constituents he would not do so. But that did not stop the rash of phone calls and emails. Rep. Mark Hilton reportedly sent emails to Alexander County ministers and snake-handling Republicans Monday night advising them that the bill would have been defeated had Warren supported the bill. It was not true, but that did not matter to Hilton who will be working to defeat Warren next year. On Tuesday, when the bill was up for third reading, Warren and his seat mate, Rep. William Brisson of Dublin, were absent. Brisson had voted against the bill Monday night. Other Hickory area representatives joined the GOP caucus to oppose the bill, even supporting a bizarre amendment from Rep. John Blust which would authorize corporal punishment on children identified as bullies. (That included Rep. Jonathan Rhyne of Lincolnton, an attorney.)

The bill passed by one vote.

Still, some wonder how ministers who call themselves Christians could fight a bill aimed at attacking pain inflicted on children. Perhaps Rep. Hilton has the answer.

REMEMBERING LOYD MULLINAX: Four days before he died at age 92, Loyd Mullinax renewed his driver license. He was active all his life, right to the end.

Hundreds of friends reflected on his career: prominent financial executive, mayor of Newton, state legislator. Everyone who knew him had fond memories.

Now there is talk about his son, Robert, a former judge, prominent attorney, mayor of Newton. Will he also take his father’s path of the State House of Representatives? His district now is represented by ultra-conservative Mark Hilton who focuses on social and sex issues. Mullinax is respected by the community that looks as the priority issues of economic development, jobs, climate change, quality of life. Democrats and independents make up the majority of the district’s registration. Mullinax could be an effective candidate and more effective representative.

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LONG MESSY ROAD

Tuesday, June 16th, 2009

In the early morning hours of Saturday, the North Carolina House of Representatives rolled out a proposed 2009-2011 spending plan for state government. It appropriates just over $18 billion for services and operations and includes proposed new tax revenue of about $740 million. And no one seems to be happy with the results.

But the task is not over. It goes to the Senate which will reject the budget and conferees from House and Senate will be named to work out a compromise plan. They will be working toward a June 30 deadline. If they don’t make this deadline, 10,000 state employees will be without a job—at least until a budget is adopted.

Last Tuesday, the House Appropriations Committee began the process of rolling out a spending plan. The impact of the recession has taken its toll and budget writers were working with a shortfall of $4 billion. Thousands of teachers and their assistants were losing their jobs and pre-school programs were taking huge hits. Tuition waivers at community colleges were eliminated, along with hundreds of position. Medicaid recipients were facing cutbacks and elimination of homecare services. Eight state prisons were to be closed and thousands laid off in the Corrections and Public Safety area. The list was long and the results painful.

The marathon of presentations was interrupted by the normal House session, followed by caucuses for party members. Democrats were having a hard time coming up with a consensus for new revenue. Republicans were looking at strategies to win 2010 elections, painting Democrats as inept managers. There would be no bipartisan efforts to solve problems.

At 8 p.m. the Appropriations Committee convened to run over 50 amendments. Some were offered by Republicans who had no intentions of voting for a budget. In the meantime, the House Finance Committee was crafting a new revenues package to avoid “draconian” cutbacks to education, healthcare, and public safety.

By 10 p.m., the Finance Committee adopted a package that had a quarter percent sales tax increase, and income tax increases on persons or couples with income over $200,000 a year. It would raise another $740 million. The Appropriations Committee wrapped up it work at 11 p.m.

WHERE IT GOES: Education receives another $355 million to avoid teacher layoffs and larger class sizes for third grade and under. Tuition waivers are restored to community colleges and some UNC programs are restored. Health and Human Services will be able to shore up Medicaid and preserve homecare, dental care for children, and other programs for indigent children with the extra $290.6 million. Five prison closings were avoided with $75 million given to Justice and Public Safety. Other government services, including building maintenance, gets $15 million.

NOW COMES THE SPIN: Are Democrats cold and ruthless by adding new taxes in a recession? Or are they trying to protect services for people who need them more than ever in difficult times? Are Republicans advancing conservative principles, demanding that everyone share the pain? Or are they cynically playing on the ignorance of thousands of voters who don’t understand the consequences? And will the General Assembly lose competent, hard-working Democrats as the price for protecting education?

The spin machines will crank up in the fall.

THE LARRY AND JOE SHOW: Two weeks ago right-wing opponents of taxes brought John McCain’s Joe-the-Plumber to the Legislature for a rally. Last week GOP Rep. Thom Tillis of Cornelius rolled out Larry-the-Landlord at the House Finance Committee. According to Tillis, Larry is struggling and cannot afford the government and tax burdens imposed by Democrats. Republicans see Tillis as a rising star in their ranks who will head up their efforts to recapture control of the House in 2010.

…AND IN 2010…Two well-known and respected Democrats have expressed an interest in the 96th House District seat held by Rep. Mark Hilton. They are arguing that Democrats, Independents, and moderate Republicans make the seat winnable. Hilton’s core supporters are church fundamentalists who focus on social issues and homophobia.

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HOW SOON THEY FORGET

Monday, June 8th, 2009

More than 10 years ago, Gov. Jim Hunt announced a goal to boost pay to North Carolina public school teachers up to the national average. As a result, the Legislature approved annual raises of 6 to 8 percent each year. The state economy was growing and so did the state budget.

But as the state’s economy struggles and budget revenues shrink, public school teachers seem have lost touch with reality. Thousands of orchestrated emails are jamming the computers in offices of the legislators. “I’m tired of you balancing the budget on the backs of teachers,” is a typical comment. The whining gets more shrill by the day. In the meantime, unemployment in the private sector remains high and people are losing their insurance and retirement savings.

One wonders about those teachers who have a four-years education and who write to legislators about a dress code for teachers and students. They don’t seem to realize this is a local issue.

Last week, budget writers were analyzing education appropriations (48 percent of the budget) that reflects 11.4 cuts to public education, 11.6 decrease for community colleges, and 11.2 percent for universities. Cuts for Health and Human Services programs are even deeper. Budget writers also are looking at closing nine state prisons.

IS THERE AN OPTION? The dramatic cuts are a response to a $4.6 billion loss of revenue due to the recession. Appropriations chairs are working on a $17.4 billion spending plan, down from last year’s $21 billion. Dental care for needy school children: gone. Home care for poor elderly who want to stay in their homes: out. More at Four for pre-school children: dramatically reduced. Some members of the House Appropriations chairs have introduced racial overtones in the cuts. Not a happy picture.

Look for a “temporary” sales tax to be introduced. One cent would raise about a billion dollars. Taxes on alcohol and tobacco could raise another $600 million—maybe less. Some say a tax increase will hurt Democrats in the next election, as Republicans will vote against any tax and use this as 2010 ammunition. Many of the Republican voters will include teachers who are complaining about cuts.

SAD REPORT: Betty Clodfelter Black, wife of imprisoned former Speaker Jim Black, has been diagnosed with ALS or Lou Gerig disease. Friends report her health has declined dramatically in a short period of time. Friends of Black in the Legislature have written to President Obama asking him to pardon Black so he can be at his wife’s side. Betty and Jim are 1959 graduates of Lenoir-Rhyne. Black was sentenced to seven years in prison for paying former GOP Rep. Michael Decker to switch parties. Aggressive Republican prosecutors pushed for maximum sentences and many Democratic and Republican legislators privately say political influences prevailed and justice was not blind.

ANOTHER GOP EXIT: Rep. Bonner Stiller of Brunswick County unexpectedly announced his resignation last week, effective June 15. Personal and business conflicts were cited as the reason. Bonner is a moderate and popular with members of both parties. He defeated Rep. David Redwine, a Democratic appropriations chair, in 2002.

Rep. Cary Allred of Burlington resigned last Monday amid an investigation by the Ethics Committee and charges of speeding 102 miles per hour.

RECOVERING: Jennifer Houser, wife of Revenue Department governmental affairs specialist Michael Houser, is recovering from injuries sustained when her car was struck by a speeding vehicle driven by an 18-year-old who was killed. The couple’s infant daughter was in the car and was not hurt. Jennifer and Michael are natives of Catawba County and graduates of Fred T. Foard High School.

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STANDING ALONE

Monday, June 1st, 2009

The N.C. House of Representatives last week approved a bill authorizing Hickory and Conover to add a penny to the hotel occupancy tax. Visitors now will pay 6 percent on the hotel bills, still far below other cities competing for conventions and trade shows. Only Rep. Ray Warren, sponsor of the bill, voted for the levy. Rep. Mark Hilton opposed the bill and Rep. Mitchell Setzer was not present. Both are Republicans.

The cities asked for the levy to finance a parking deck adjacent to the Hickory Convention Center. Additional parking is needed to keep such events as the MDI Food Show, the N.C. Cattleman’s Association, and the Catawba Valley Pottery Festival. These events fill up the hotel rooms and bring new business to restaurants.

The bill now goes to the Senate. N.C. Senator Austin Allran, who faced criticism on tax bills during his last election, will not present the bill to the Senate Finance Committee or the Senate floor. It is assumed that Jack Cozart of the lobbying firm employed by Hickory will find a sponsor. Allran has said he will not “hurt” the bill but he will not
vote for it.

HOMESICK: A lot of members in the General Assembly are ready to go home. The budget crisis is taking its toll. During a recent meeting of Education Appropriation chairs and senior Appropriation Chairs led by Rep. Mickey Michaux, the tension was obvious. At one point Rep. Michaux asked the education chairs—Reps. Ray Rapp and Marian McLawhorn—to leave the room. “We’re getting ready to go to war,” a frustrated Michaux allowed.

It is predicted that the House will consider a $17.5 billion budget proposal next week and send it to the Senate by June 12. The conference work will take at least two weeks. House Speaker Hackney and Senate President Pro-Tem Basnight would like to shut down the session soon after a final version is adopted.

CLOSING THE GAP: The Senate version of the budget included $20 billion in spending, but that was before the April tax collections were reported (down 40 percent). Senate Finance Chairs Dan Clodfelter of Charlotte and David Hoyle of Gaston are still working on a new tax overhaul—the first in 75 years. Reportedly, the tentative plan will add $600 million for schools or healthcare. House leaders still insist there will be no new taxes.

A 12 percent reduction in UNC appropriations, 20 percent cutbacks in health services for the needy, and teacher layoffs in public schools may cause lawmakers to consider new revenue. At least that is what the Senate hopes.

FAREWELL…BUT NOT FONDLY: The bizarre episode of Rep. Cary Allred came to an end today (June l) when Allred cleaned out his office. The Alamance Republican embarrassed the GOP leadership when he showed up at a Monday evening session with the smell of alcohol. He embraced a female House page from his district…some say very passionately. He admitted that earlier he had been stopped for speeding but was allowed to continue without a ticket when he identified himself to the patrolman as a member of the Legislature. After the publicity, the patrol gave Allred a ticket for speeding 102 miles and hour.

House Speaker Joe Hackney ordered the Sergeant at Arms to investigate the incidents and most of the damaging responses came from his fellow Republicans. Rep. Setzer wrote than in his eleven years in the legislature he had never witnessed anything so unsettling. This infuriated Allred who finally decided to resign last Friday. Never at a loss for words, Allred quoted Gen. Douglas McArthur’s passage “Old soldiers never die, they just fade away.” Then Allred added, “I bid thee a fond farewell.”

HUFFMAN-HILTON MATCH? Catawba County Sheriff David Huffman was walking the halls of the Legislative Building last week. He told lobbyists that a poll shows him winning over 60 percent of the Catawba County Republican vote in a primary race with Mark Hilton. Hilton is in the inner circle of conservative Republicans that took over the county’s party organization in April. This is thought to spell trouble for moderate officeholders. Huffman is not a snake handler.

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