Hackney and Basnight on the budget
House Speaker Joe Hackney and Senate leader Marc Basnight briefed reporters on the budget deal the two chambers brokered earlier today. Here is video of their opening remarks.
Basnight talked about the $90 million set aside for teacher bonuses - causing Hackney to chuckle - and Hackney discussed funds for the mental health system:
Gov. Mike Easley had asked for $45 million in recurring cuts to the budget, trimming from spending targets that had been in place a month ago. The legislature came up with $30 million by delaying two tax cuts - one the elimination of the gift tax and the other an expansion of the EITC.
Hackney and Basnight said that the $45 million in cuts were unnecessary but that they were trying to make Easley happy. Except they came $15 million short of what Easley wanted. Here's the discussion on that piece:
Teachers got a 3 percent average raise in the budget. Teachers at the lowest three rungs of the salary scale will get a $1,100 bump in salary. Teacher salaries have been been a major emphasis for Easley and the legislature didn't give him exactly what he asked for. Also, fuel costs have been a concern. More on that:
The budget will authorize about $850 million in borrowing over the next four years and spend another $109 million in cash to build buildings around the state. Much of that will go toward the university system. If you're into public financing discussion, this is the video for you:
Two terms you may or may not know from that discussion:
COPS: Certificates of Participation. Government borrowing that does not require voter approval.
2/3 Bonds: When a government in North Carolina pays back a bond, it can (within two years) go out and borrow again 2/3 (two-thirds) of the amount it has repaid.