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| From your contract lobbyist -----Original Message----- Budget negotiators are continuing their work. It sounds like they will finalize the budget next week. SB 1216 - DSS Disclosure of Information/Abuse/Neglect AN ACT allowing local departments of social services to share confidential information with other child protection organizations when the confidential information is needed to protect a child from abuse and neglect. This is a recommendation of the NC Child Fatality Task Force. The bill was approved on Thursday in House J-IV. (Click on the bill number to view the text of the bill) Failure of talks delays budget Vote on compromise to wait for holiday By David Ingram JOURNAL RALEIGH BUREAU Friday, June 30, 2006
RALEIGH State legislators failed to reach an agreement last night on an $18.9 billion budget for the state's next fiscal year. They put off a final vote on the plan for at least another week because of the holiday weekend, even though the current fiscal year ends tonight. Negotiators from the House and Senate have been exchanging proposals for two weeks, mostly behind closed doors. They continued all day yesterday until about 10 p.m. , when senators left the office suite where negotiators had been meeting. They would have had to reach an agreement last night to have any hope of approving a budget near the start of the fiscal year. "There are those of us who've been here night after night who'd like to get this done," said Sen. Linda Garrou, D-Forsyth, one of the Senate's chief budget writers. "We'd like to birth this baby, but we'll just have to see." The major obstacle to an agreement, negotiators said, was a disagree-ment about how much to spend onvarious building projects around the state. Proposals for a capital budget have ranged from about $150 million to $250 million, including money for state universities, hospitals, museums and office buildings. Even more money would go toward a renovations fund and a "rainy day" fund. Legislators are also considering issuing bonds for other projects. Among the spending proposals are: ? $3.5 million for the Center for Design Innovation at Winston-Salem State University . ? $2.3 million for a classroom building at the University of North Carolina at Greensboro . ? $1.8 million for an education building at Appalachian State University. ? $1.3 million for a library at the N.C. School of the Arts. ? $1 million for a classroom building at N.C. A&T State University . ? $768,225 for a student center at WSSU. Rep. Joe Hackney, D-Orange, the House majority leader, said that negotiators are also hung up on a final tax package, including proposed tax cuts, and several nonbudget policy issues that senators want to put in the budget. The two sides said they have reached a tentative agreement to give state employees a 5.5 percent raise, up from the 5 percent that senators and Gov. Mike Easley wanted. But Hackney said that negotiators will look at everything again before they reach a final agreement. "Nothing is done until it's done," he said. Hackney also said that House members will push to continue negotiations today, even if the Fourth of July holiday prevents legislators from approving the budget until late next week. "I think it's important that we try to reach an agreement by the end of the fiscal year. When you vote on it is probably less important," he said. State government is not in danger of shutting down Saturday because legislators approved a two-year budget last summer. The spending plan under consideration would only adjust that plan. The $18.9 billion package would also raise teacher pay and increase spending for most state agencies. Negotiators have agreed on putting $14 million into a fund for mental-health projects and on increased spending for mental-health programs. A separate group of negotiators is working toward a compromise on tax cuts, particularly on the rate reduction of the 8.25 percent income tax bracket for the highest wage earners. The House also is adamant about a tax credit for small businesses that provide health insurance for their employees, but the Senate would prefer to delay the credits until next year. Negotiators agree on a quarter-cent drop in the sales tax, which was increased "temporarily" in 2001 by a half cent. Spending for capital projects has become a priority this year because legislators have about $2 billion available for new spending and tax cuts next year. Much of the surplus is a one-time windfall, making building money more attractive than money for ongoing programs. Easley, a Democrat, and Senate leaders have said that the money should be spent on a few, major projects. House members have said that much of the spending should be spread out for planning purposes, even if they don't have a way to pay the full price tags. "We're very, very close," Garrou said. "I'm just disappointed that we don't have a resolution still." • David Ingram can be reached in Raleigh at 919-833-9916 or atdingram@wsjournal.com • The Associated Press contributed to this report. This story can be found at: http://www.journalnow.com __________________ Lori Ann Harris PO Box 26974 Raleigh , NC 27611 919-832-2648
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