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Legislative Consortium Members,
I thought you might want to know the climate of the GA since my last update sent out on Thursday outlining the budget passed by the Senate. As you will remember, there were serious cuts in Medicaid to elderly, disabled, and blind, increases in the Medicaid co-pays, reductions in the personal care services while at the same time there were tax breaks for corporations and for the wealthiest NC citizens. In addition, they included the lottery in the budget along with a 35cent tax on cigarettes.
The House members and public in general have reacted very negatively to the budget. Below are some excerpts from the media reporting on the budget:
"They get you coming and going."
Sen.
Tom Apodaca , R-Henderson, noting that the $17 billion Senate
budget plan passed Thursday includes a $4 increase in genetic disease
screening fees for newborns and a higher sales tax on caskets.
The Charlotte Observer, 05/05/05
Not that it makes any difference to Senate leadership, but most everyone from every persuasion is unanimous in saying the budget and the process for putting it together are the worst ever witnessed. Just some of the complaints include:
Decisions made by a handful behind closed doors.
Rolling significant legislation such as the lottery and university governance into the budget.
Obvious "spin" or positioning of items to make them look more favorable.
Revenue and expenditure legislation contained in the same document.
Personal "perks" for leadership in special provisions
Failure to allow Senators proper time to review the lengthy document before voting on it, as well as maneuvering to stifle debate and amendments on the floor.
Total insistence that party members vote party lines or fear retribution.
We could go on for more time that you want to read, but the bottom line is the budget is flawed and the process is corrupt.
TO THE HOUSE : The $17 million Senate budget proposal, already criticized by Republicans, Democratic Gov. Mike Easley and advocates for the poor, is already taking shots from the House after winning third-reading approval on a party line 28-20 vote. House budget writers, who are certain to craft a competing spending bill, say they are particularly worried about Medicaid reductions that could leave thousands without health insurance. House members also told The Associated Press that they are upset with the Senate's proposed cuts to courts that help drug offenders and families, language that could rupture the fragile coalition that passed a lottery in the House, and changes to the state's taxes they deem unfair to low- and middle-income residents. The budget is due to be on Easley's desk for signature by July 1, but disputes among the House, Senate and the administration may force negotiations deep into the summer. (Gary D. Robertson, THE ASSOCIATED PRESS, 05/05/05 ).
The
Fitzsimon File. Friday's May 6, 2005
The most baffling part of the mock Senate budget debate
this week was the explanation of the bill by the people who put it together.
Many of the comments made you wonder if the Senators were talking about the
same bill that was on the Senate calendar.
Claims by one budget writer that the budget "provides services for those who need them the most" must come as news to the 65,000 people who are blind or disabled who will lose services under the Senate plan. That is unless there are people that Senate leaders believe are more deserving of help than the blind and the disabled. Oh wait there are, folks that earn $800,000 a year.
...Then there was the heartstring-tugging reassurance by another Senate leader that we can't let the torch of progress go out in North Carolina , that we have to "give people a prayer and a chance."Â Â Wonder what kind of chance? Maybe the chance for seniors to be forced into institutions because the budget cuts off their home health services.
...Another member of the super-double-secret-budget-writing cabal actually contradicted herself in the same speech, on the one hand reminding us all what a tough, tight budget year it was that forced Senate leaders to make tough decisions, and then later boasting that the budget was able to cut taxes on business and the state's wealthiest citizens.Â
Health Choice was added at the last minute after Senators not in the small group that wrote the budget actually had a chance to read it. But all may not be lost . It is not just advocates for the poor that are shaking their heads at the Senate's reverse Robin Hood plan. The sheer absurdity of the proposal seems to have awakened House leaders to the human service crisis in the state.
House Speaker Jim Black said in one news report, "I don't want to cut the money for the blind and disabled. My goodness. How heartless is that?" My goodness is right. Now the House has the chance to have a heart and a brain and make some long overdue investments in the people of the state.
Senate's budget plan presents a tough sell 5-5-05 News & Record
...The $17 billion plan raises state spending by about $1 billion. That's a 6 percent boost, which doesn't seem unreasonable when balanced against the state's population growth, increased school enrollment, greater demands for post-secondary education, escalating medical costs and the need to grant modest pay hikes to teachers and other state employees. …The budget's authors found $800 million in new revenues, but they also threw in some tax cuts. The mixture favors the wealthy, who will realize a drop in the top income-tax rate, and businesses, which will reap a reduction in the corporate income tax. Meanwhile, a sales-tax boost enacted in 2001 and scheduled to expire this year will be made permanent. That represents a 1 percent hit on the shopping budgets of everyone in North Carolina , including people who are out of work or otherwise facing financial difficulties. …The largest tax hike will be beneficial, however. The budget raises the cigarette tax from a nickel to 40 cents per pack. That will generate revenue for the state but also discourage young people from smoking. The Senate's budget includes the lottery, a move intended to avoid a separate vote on North Carolina 's foray into state-sponsored gambling. Unlike the lottery measure already approved by the House of Representatives, this version anticipates use of some lottery revenue to supplant rather than supplement existing school-construction funding. The budget is on a fast track in the Senate, but it would be a better package without a lottery, with a lower sales tax and without the tax break on high incomes. No one can like everything in a $17 billion bill, but this one has a lot to dislike
Highlight Legislative Bills:
House Bill 1087 (Clarify Definition of Social Worker). Many of you have expressed interest in what is happening with this bill! Our Association along with the State DSS is still in discussions with NC-NASW to develop compromise language for the bill.
HB 782 (Facility Quality Improvements). Our Association has been knee deep in negotiations with DFS and the Department’s legislative liaisons to find compromise on this bill as well. It is moving along well and most likely the bill will be on the calendar to be heard in committee next week.
Medicaid Bills There are quite a few Medicaid bills that provide relief from the county share of Medicaid through different formulas. Most are still in committee while legislators look for ways to fund it. Now that the Senate has put out their budget that did not include this relief, the County Commissioners Association will be looking to the House to take the bold step of including it in their budget.
H1551 (Pre-Service Training Exempt/Certain CPS Workers) – This bill is set to be heard on the calendar in the Health committee on Thursday May 12.
S 875 (Funds for CPS Workers) – The Senate included in their budget $2 million toward the $5 million we asked for in this bill. We are working in the House now to have an additional $3 million added into their version of the budget.
Reminder that May 16 th May 20 th we will be in Ocracoke for Association's our Annual meeting. I will provide you with an update of the "happenings" the following week. As always, please call me if you need some additional information.
Thanks,
Karen
