RALEIGH, N.C. (AP) — A key North Carolina House committee on Wednesday approved a Republican budget proposal that critics say makes avoidable cuts in public education and health programs but that GOP leaders argue protects classroom teachers and health services for the poor.
The House Appropriations Committee debated for more than seven hours and voted on more than 70 amendments before it approved the $19.3 billion spending plan for the new fiscal year on a voice vote.
The full House will vote next week on the bill, which would spend $600 million less than what Democratic Gov. Beverly Perdue proposed for the year starting in July.
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House Republican leaders told budget-writers to spend $1.4 billion less than Perdue offered in six key funding categories, largely the result of a GOP decision to let temporary taxes approved by Democrats in 2009 expire this year — costing the state $1.3 billion in additional revenues.
The gap between the House and Perdue plans narrowed because Republicans say they would spend more than the governor would on the state's retirement system and rainy-day and government building repair reserves. An accounting change also shifts more than $190 million to fund the state Highway Patrol into the general operating fund.
"We're not doing it by raising tax rates," said House Majority Leader Paul Stam, R-Wake.
Democrats argue that keeping some of the taxes would avoid double-digit percentage spending cuts in public education that the GOP budget proposes and the potential elimination of more than 18,000 jobs throughout state government and local school districts.
"You don't have to be as vindictive in this budget as you are," said Rep. Mickey Michaux, D-Durham, who was the senior budget-writer in the House the past four years before Republicans won the majority last fall. "What you have passed is very draconian."
Stam countered such complaints by saying the budget figures being tossed around exaggerate the size of the spending cuts, which he said are actually about 6 to 7 percent lower than what the state is projected to spend in the fiscal year ending June 30. He also said most of the public school cuts would be absorbed through regular turnover and retirements.
The budget isn't "draconian," Stam said. "It's right-sizing."
Committee members managed to shift money around departments to restore money for 20 prison chaplains, promote the state's wineries and preserve funds for historic sites and arts grants. They rejected Democratic proposals to remove a proposed ban on health grants to Planned Parenthood and a potential $75 fee for student driver's education.
Committee rules require that each adopted amendment that spends more money must include the same amount in spending cuts, creating difficult choices. The prison chaplains were saved with $1.15 million found keeping open more vacant positions in the Department of Correction. Rep. John Torbett, R-Gaston, decided to take more than $2 million from a trust fund for low-income housing to restore the arts and history money.
Rep. Winkie Wilkins, D-Person, who voted for the amendment in part to preserve a state historic site in his area, said he calls the full Appropriations Committee budget meeting "the craziest of all legislative days" because colleagues are scrambling to find money to preserved favored programs.
"Everything is about a balancing act. You're never going to find the perfect place to grab some money," Wilkins said. "You pretty well know that in the end this (bill's) going to pass, and if I can help make it a little bit better somewhere, then I've helped."
The House budget proposal is likely to go next week to the Senate, which will create its own version. The two chambers are seeking to pass a compromise measure to present to Perdue by early June.
The House plan would provide no pay raises for state employees or teachers for a third consecutive year as lawmakers have struggled to fill billions of dollars in budget gaps since the height of the Great Recession. Furloughs are possible but not required.
Funding for teacher assistants in second and third grades would be eliminated in the House plan, a move that the Department of Public Instruction estimates could eliminate 8,800 positions, but local school districts aren't required to spend that money on staff. Local school districts also would be required to find another $42 million in combined cuts on top of $305 million in automatic reductions.
Republicans have focused on their commitment to provide state funds for every public school teacher currently funded by the state.
The budget "protects the core need for education and that is the classroom teacher," said Rep. Bryan Holloway, R-Stokes, co-chairman of the House education budget subcommittee. "They do have flexibility, and they can move and shift money around."
The UNC system also would have to find another $467 million in reductions that system officials have predicted would result in the loss of 3,200 faculty and staff positions and eliminate 240,000 class seats.
While funding for mental health programs would fall by $58 million, Medicaid services the state provides but aren't required by the federal government would be preserved, as long as other cost savings are realized.
The bill would abolish two of the funds that receive half of North Carolina' share of the national tobacco settlement and place their money in the state's general operating fund. Lawmakers also would take nearly $68 million annually heading for the Golden LEAF Foundation, which gets the other half of settlement funds, for the next two years.
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