House passes $18.6 Billion budgetRALEIGH -- The state budget approved early today at the House provides residents the first real look at how deeply the recession may affect services and programs across North Carolina.
The House passed the bill 64 to 54 on its first vote about 11:30 p.m. The chamber then took a final vote after midnight on the $18.6 billion budget that includes $780 million in new taxes. It passed 64 to 53, sending the bill to the Senate. The budget also includes some $3 billion in cuts to programs that were funded in the current year's budget. The cuts are offset by $1.3 billion in federal stimulus money. Those funds disappear in following years, effectively pushing the deficit forward.
That proposal dwarfs cuts proposed by Gov. Beverly Perdue and the Senate; they advanced budget proposals before revenue dropped precipitously.
The House would cut thousands of teacher jobs to raise class sizes from fourth grade through high school. It would reduce funding to a host of social services and close eight small prisons. It would raise university tuition and reduce financial aid programs. It would reduce funding for group homes and early childhood programs.
"We've gone to the brutal level," said Rep. Hugh Holliman, a Lexington Democrat and the House majority leader.
House Republicans have tried to weaken or erase the tax increases, and criticized Democrats for whipping up fear about devastating budget cuts to build support for new revenue.
"They say you're voting against cuts and advocating for putting teachers out of jobs. I say hogwash," Rep. Thom Tillis, a Cornelius Republican, said Friday night. "There is hundreds of millions of dollars that could be cut without harming citizens."
Rep. Curtis Blackwood, a Matthews Republican, received this week an unsigned, scrawled letter from a third-grader, who also drew a crying stick-figure girl and asked that no teachers be fired.
Protests and lobbying blitzes by groups and constituencies that would feel the budget cuts have been a frequent occurrence at the General Assembly as the budget vote neared.
Democrats, who control the House, have said their tax proposal would mitigate the worst cuts. Someone has to cope with the deficit, said Rep. Rick Glazier, a Fayetteville Democrat.
"Governing requires us to do that. It doesn't give us the ability to cop out of the tough decisions this time," Glazier said.
Rep. Paul Stam, an Apex Republican and the House minority leader, said the state could find better ways to cut, such as ending millions of dollars in incentives to lure companies. The taxes are not necessary, he said.
"Don't say you're going to do it because you had to. It was a choice," Stam said.
The budget would increase the statewide sales tax by a one-quarter of 1 cent. It also would apply the tax to new items, such as digital downloads of music or ringtones. It would tax repairs and maintenance to a car, and courier services such as FedEx. It would increase the income tax on the state's wealthiest residents and apply a tax to limited liability companies.
"People who are going to pay more taxes are going to have better schools for their children," said Rep. Deborah Ross, a Raleigh Democrat.Once the House adopts a budget, a compromise must be negotiated between the House and Senate. After that compromise, Perdue must sign the budget.
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