1. Capitol
Commentary
419B Legislative Office Building
Raleigh, NC 27603-5925
(919) 715-3009 – ruths@ncleg.net
February 21, 2011 Legislative Update Raleigh, NC
It’s going to take some time to pore over the 327-page, $19.9-billion budget
proposal that Gov. Perdue unveiled last week, and really understand all its
implications for our state government system. What I think is immediately
clear, however, is that this proposal is much more conservative than the one
that she would have presented had voters not elected a GOP majority in the
state legislature last fall. And that is certainly a win for the taxpayers of North
Carolina. Two examples of the rightward shift:
The proposal cuts the corporate income tax rate from 6.9 to 4.9
percent, which I believe will do more than any economic incentive
program we have to make North Carolina more attractive to new
businesses. Perhaps more importantly, it will give much-needed relief to
existing businesses, which are often not eligible for such economic
incentives.
It slashes 10,000 positions from the government payroll, including
6,000 that are currently vacant. It cuts most programs between 7 percent
and 15 percent, and it consolidates 14 state agencies into eight.
There are, however, a few disappointing items in the Governor’s proposal:
It extends the “temporary” sales tax that the Democrat-controlled
legislature passed in 2009. At the time, the Governor herself promised a 1 of 2
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skeptical public that the one-cent increase would not be renewed when it
expired in July 2011, but now she’s suggesting we simply lower it
slightly to 75 cents
2. It shifts financial responsibility for some programs to local
governments. For example, counties would bear the cost of replacement
school buses – estimated to be nearly $57 million a year. That’s a lot for
local governments – including Mecklenburg’s -- that are already facing
their own budget crises.
The release of the governor’s budget proposal marks the start of weeks of
hearings and negotiations that will lead to the passage of a final budget by
June 1. In this third full week of session, I and many other legislators were just
settling into a routine and cranking up our productivity. I’ve now memorized
the seating chart for all GOP members in the House chamber – an important
part of my job as Majority Whip. And I feel I’ve adapted to my “new normal,”
which is much busier – and frankly a lot more fun.
I chaired my first Environment Committee meeting last week, and I very much
appreciate the positive reinforcement I received from many of you for the
work I’m doing there. I’ll keep you posted on important issues being
deliberated by the committee, and if you’d like to follow along yourself, click
here to go to the committee’s homepage.
I’d love to hear your thoughts on any state environmental issues or – once
you’ve had some time to mull it over -- the Governor’s budget proposal.
Please feel free to contact me at (919) 715-3009 or by email at
ruths@ncleg.net or samuelsonla@ncleg.net.
Best wishes,
Ruth Samuelson, Majority Whip
NC House of Representatives, District 104
Mecklenburg County
http://www.ruthsamuelson.com
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