Budget Update
From our friends at the Associated Press, this update on the continuing effort to piece together a state budget:
RALEIGH (AP) -- House and Senate leaders left for the weekend with no finance package yet in place to pay for a two-year budget for state government. An informal agreement between some House and Senate Democrats to reduce the income tax and the sales tax took a hit this week after a meeting with Gov. Mike Easley.
The governor would prefer the sales tax remain at 7 percent for most consumers, and House Democrats won't get behind a reduction in the highest marginal income tax rate like the Senate wants unless it comes with a tax cut for low- and middle-income workers.
"I think the understanding is leave the sales tax and as is and leave the higher income tax as is," Rep. Edd Nye, D-Bladen, one of the top budget conferees. When asked if that was Easley's view, Nye responded: "I think so."
Nye said the House and Senate are now trying to reach an agreement on an increase in the cigarette tax. The House approved a 25-cent increase in its budget, but the Senate agreed to a 35-cent increase.
Several House Democrats have said they can't support anything higher than a 25-cent increase. Teen-smoking prevention advocates are still seeking a much higher tax -- as high as 80 cents.
Comments (2)
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When are NC public school teachers going to know about salaries for 05-06. Seems our university colleagues are going to get the big bucks as usual. I guess we are doomed since our governor thinks more of increasing NC's clout with NASCAR fans than our state's teachers.
Posted on July 18, 2005 7:06 PM
Helen:
That has been and remains the $100,000 question down here. As of now (and I'm writing this on Monday 7/18) the impasse remains. Although I would say that educators seem to do better under the proposed Senate budget than under the House version, but it's all relative.
Posted on July 18, 2005 7:19 PM