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February 22, 2013
Threats to Children's Economic Security: Attack on EITC Passes House, Governor Signs Unemployment Insurance Reductions, Payday Lending Returns
Greetings!
Attack on Earned Income Tax Credit Passes House
H.B. 82, which would reduce the EITC from 5 percent of the federal credit to 4.5 percent, passed its final vote in the House this week and was sent on to the Senate Finance Committee. An amendment to extend the credit another five years failed. Limiting the credit will reduce payments to N.C. families by $11 million this year. The EITC is scheduled to sunset at the end of 2013, which would mean $100 million coming out of the pockets of low-income, working families.
A recent report by the N.C. Budget and Tax Center found that nearly 907,000 North Carolinians in all of the state's 100 counties claimed the credit in 2011. Reducing and ultimately eliminating the EITC would shift the tax load to the state's lowest-earning families and could push more children into poverty.
The House vote on the EITC comes at the same time that the House Finance Committee has signed off on a bill that would repeal the state estate tax, which currently applies only to those with estates valued at more than $5.25 million -- only one in 500 estates in N.C. Elimination of the tax would reduce tax collections by an estimated $52 million next year, and roughly $300 million over five years. The estate tax bill has moved on to the House Appropriations Committee. A bill was also filed in the House this week to create a new tax credit -- for families who homeschool their children (H.B. 144).
Governor McCrory Signs Unemployment Insurance Reductions into Law
Governor McCrory signed H.B. 4 into law on Tuesday. The new law will limit the amount of maximum unemployment insurance benefits per week to $350, reduce the duration of benefits from 26 weeks to 12-20 weeks, on a sliding scale, and eliminate some reasons people can receive unemployment insurance after leaving a job. North Carolina currently has the 5th highest unemployment rate in the nation, and these changes are the most draconian yet enacted in any state. The bill will take effect on July 1.
Bill to Allow Payday Loans Introduced in the Senate
Payday loans, which are cash advances for workers in between paychecks, were outlawed by N.C. lawmakers more than a decade ago, but S.B. 89 would allow payday lenders back into North Carolina. Payday loans can trap cash-poor working people into a cycle of debt, and many end up paying far more in interest than they ever borrowed. The bill would allow lenders to loan as much as $500 for up to 35 days and charge up to 15 percent interest. Advocates are concerned that the consumer protections included in the bill aren't strong enough -- other states have the same provisions and they have proven ineffective. Rules committee chair is co-sponsor. Other sin leadership in Senate are opposed and quietly trying to round up opposition. Bill was supposed to come up as early as next Tuesday but it's been postponed for now. Division among leadership in the Senate on this bill.
No Medicaid/No Exchange Bill Goes to Conference Committee
S.B. 4, prohibiting Medicaid expansion in N.C. and the formation of state-based Exchange, will have to be worked out in a conference committee, after the Senate voted this week not to concur with the House changes to the bill. The bill would prevent 500,000 people from receiving health insurance coverage, which would be fully paid for by the federal government for three years and at 90 percent thereafter.
The conference committee members, appointed on Tuesday, include:
- Rep. Burr, Chair
- Rep. Dollar
- Rep. Avila
- Rep. Brisson
- Sen. Apodaca, Chair
- Sen. Rucho
- Sen. Hise
- Sen. Harry Brown
A petition with 10,000 signatures was delivered late last week to Governor McCrory, asking him to veto the bill, and a rally by health professionals was held outside a clinic in Greensboro. Governor McCrory has expressed his support of the bill. Florida Governor Rick Scott, one of the fiercest opponents of the Affordable Care Act, this week joined other Republican governors in deciding to accept federal dollars to expand Medicaid in his state. He was quoted as saying, "I cannot, in good conscience, deny Floridians access to health care."
Governor's State of the State Speech
In his State of State Address on Monday, Governor McCrory said his administration would focus on improving the economy, making education more results-oriented, and making state government more efficient. The Governor said that tax reform would be a priority, and that he is looking to lower personal and business income taxes, close loopholes for "special interests," and be revenue neutral. Critics said the governor failed to offer specifics for policy or a tax plan and expressed concern that education "reform" might end up being just more cuts to schools. The speech came across as more moderate than McCrory's early actions as Governor -- including supporting the unemployment insurance cuts and the No Medicaid/No Exchange bill -- would suggest.
North Carolinians Support Gun Control
A poll has found that 51 percent of North Carolinians support banning assault weapons, while 41 percent said they would oppose such a ban. Fifty-four percent said they support Congress passing stricter gun laws, while 40 percent opposed any such move. The survey of 600 likely North Carolina voters by Public Policy Polling was conducted Feb. 7-10 and had a margin of error of plus or minus 4 percent.
Relevant Bills Acted on This Week
Key bills affecting children that were acted on this week at the General Assembly are listed below. Health
S.B. 106: Home Birth Freedom Act and S.B. 107: Decriminalize Direct Entry MidwiferyWould regulate the practices of Certified Professional Midwives in North Carolina. Midwifery is currently allowed in clinic and hospital settings. These bills would allow midwives to practice in private homes. Filed. S.B. 106 referred to the Committee on Health Care, then Finance Committee if favorable. S.B. 107 referred to the Judiciary I Committee. Economic Security
H.B. 144: Homeschool Education Income Tax Credit
Creates a new tax credit of $1250 per semester for families who are homeschooling children. Filed.
Child SafetyWould make it a felony to intentionally fire a gun in a building with the intent of harming or scaring someone. Filed.
Would prohibit the issuance of drivers licenses to applicants who are legally present in North Carolina through the Deferred Action for Childhood Arrivals (DACA) initiative. Filed. H.B. 109: Require Safety Helmets/18 and UnderWould allow adults (over age 18) to operate or ride as passengers on motorcycles without helmets, provided the operator of the motorcycle has had a license for at least a year or passed a safety course and is covered by sufficient medical insurance. Does not change helmet laws for children. Referred to Transportation Committee, if favorable, Judiciary Subcommittee B. S.B. 91: Prohibit Expunction InquiryWould prohibit employers, educational institutions or government units from requesting information from an applicant for employment or admission regarding an arrest, charge or conviction that has been expunged from the applicant's record. Referred to Judiciary II Committee. H.B. 18: Youth Skin Cancer Prevention ActWould raise the minimum age for use of tanning beds from 14 to 18. Teenagers ages 14 to 17 are currently permitted to tan with parental consent and children 13 and younger are allowed only with a doctor's prescription. Use of tanning beds, particularly in childhood, has been linked to skin cancer. The House Health and Human Services Committee delayed the vote on Tuesday morning until they can gather more information. An industry representative and a dermatologist testified before the committee. The bill will be heard again next week and has been serially referred to the Regulatory Reform Committee. H.B. 105: Require Pulse Oximetry Newborn ScreeningWould require newborn screening for all infants for certain heart conditions. Endorsed by the Child Fatality Task Force. Referred to the Committee on Health and Human Services and scheduled to be heard next week. H.B. 75: Kilah's Law/Increase Child Abuse Penalties (S.B. 70) Would increase penalties for felony child abuse. Passed Judiciary Committee and referred to Appropriations. EducationWould require that the State Board of Education mandates instruction in cursive writing and memorization of multiplication tables as part of the standard course of study. Filed. Expresses the intent of the Legislature to move from funding textbooks to funding only digital learning media by 2017, to take a survey of internet connectivity in public schools, to allow a portion of lottery funds going to education to be used for digital learning in schools, and to set standards for digital competency for teachers and staff. Advocates have concerns about the ramifications of these bills for the many children without internet connectivity at home. H.B. 44 was referred to Senate Committee on Education/Higher Education. H.B. 45 is in the Appropriations Committee. H.B. 97 is in the Education Committee. H.B. 23 has passed the House and been referred to the Senate Education/Higher Education Committee. Companion bills for all four were filed in the Senate this week and referred to the Education/Higher Education Committee ( S.B. 118, S.B. 119, S.B. 120, S.B. 121).
Aims to funnel high school and community college students towards career and technical education (and thus away from higher education). Governor signed into law.
Friday Conference Calls
Action for Children and the Covenant with North Carolina's Children hold Friday morning conference calls to update you on the week's happenings at the General Assembly. Updates include bills and budget actions. To join:
- Fridays, 11 a.m.
- Dial 1-800-582-3014 and enter passcode 882011141#
Click here to add this call to your calendar.
Recent Reports
Early Education: There are more than 12 million infants and toddlers in the United States, many spending their most vulnerable years in circumstances that place them at risk developmentally. Many fall behind their peers even before they enter a prekindergarten classroom. National Baby Facts, Zero to Three's recent release, tells the story of how these youngest children in the United States are faring.
Child Health and Safety: Victims of bullying at school, and bullies themselves, are more likely to experience psychiatric problems in childhood, studies have shown. A new study published in the journal JAMA Psychiatry on Wednesday found that elevated risk of psychiatric trouble extends into adulthood, sometimes even a decade after the intimidation has ended. The study followed 1,420 subjects from Western North Carolina who were assessed four to six times between the ages of 9 and 16 and again during young adulthood - at ages 19, 21 and between 24 and 26 - using structured diagnostic interviews. Calendar and Events
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