Budget Update
From today's paper: this story talks about items specific to Guilford County.
As you'll read, the most important difference between the House and Senate budget from High Point's perspective is some tinkering with funding for the furniture market. The Senate set aside $1 million for marketing the semi-annual market. The House changed that money to be for marketing all state industries, including the furniture industry.
For a broader perspective, our print edition turned to our friends at the Associated Press. Here's there story on Friday's budget release (after the jump):
NC House subcommittees restore Senate cuts, expand UNC reductions
By GARY D. ROBERTSON
Associated Press Writer
RALEIGH, N.C. (AP) - The House rolled out the meatier portions of its proposed two-year budget Friday, restoring Medicaid reductions approved by the Senate but failing to greatly expand funding for at-risk students.
The budget subcommittees also ordered a 2 percent spending reduction at University of North Carolina campuses and university programs, twice the size of reductions the Senate wanted in most cases. UNC campuses also would receive $12.7 million less to pay for enrollment growth this fall, particularly for distance education programs.
If the enrollment change becomes law, "students would likely face larger classes, fewer course sections and restricted access to degree programs and student services," UNC President Molly Broad said in a statement.
The House, the Senate and Gov. Mike Easley will negotiate a final spending plan after the House approves its version, possibly next week. The new fiscal year begins July 1.
Overall education spending by the House was $57.4 million less than the $9.5 billion approved by the Senate last month. Budget-writers, in turn, want to spend $4.1 billion on human resources, $97 million more than the Senate.
The House education subcommittee eliminated a Senate provision that could have eliminated more than 2,400 teacher assistants. Instead, the spending plan reduced slightly the teacher-student ratio in seventh grade, at a cost savings of $10.5 million.
"We have so many problems in middle school, we don't need fewer positions in there," said Carolyn McKinney with the North Carolina Association of Education.
Advocates pushing for more money for at-risk students following the landmark Leandro court decision were disappointed that a new special fund created by Easley would only receive $22.5 million for 16 school districts. The Senate had raised the amount to $47.5 million.
The price tag to meet the Leandro requirements of a "sound basic education" for all students is estimated at more than $200 million.
"This is woefully inadequate," said Greg Malhoit, one of the attorneys in the Leandro lawsuit. House members are "positioning themselves for a constitutional collision with the courts if this is adopted."
About $30 million was set aside to boost funding for poor school districts, nearly twice what was sought in Easley's budget proposal. Rep. Jim Crawford, D-Granville, co-chairman of the House Appropriations Committee, said the budget will help meet the Leandro requirements by spending more money to recruit teachers.
In Medicaid, the House eliminated a Senate provision that would have generated $53 million in savings by moving 57,000 elderly, blind and disabled patients from their combined Medicaid and Medicare coverage to Medicare only. Advocates argued that 8,000 additional people would have been left with no medical coverage.
Senate legislation that would have reduced or frozen Medicaid reimbursement rates for physicians and pharmacists was also removed.
"Overall, it's an improvement," said Sorien Schmidt with the Covenant for North Carolina's Children.
Rep. Beverly Earle, D-Mecklenburg, a co-chairwoman of the House Appropriations Committee, said her colleagues tried to be fair to all sections of state government given a potential $1 billion budget shortfall.
"I think you just do the best you can," Earle said. "We're just trying to spread the hurt."
The House this week approved a separate tax package that would generate $562.2 million in additional money for next year, but it didn't contain a cigarette tax increase, like the Senate approved.
Earle and Crawford said the spending in the subcommittee reports approved Friday didn't include money for a cigarette tax increase.
Earle said she was hopeful that the House would match the Senate increase to 40 cents per pack. The current nickel a pack tax is the lowest in the nation, but House Democrats were still trying to corral enough votes for a 35-cent hike.
Other changes in the proposed House budget include: