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March 22, 2013
Governor Releases Budget Proposal
Greetings!
Governor McCrory Releases Budget
The budget Governor McCrory released on Wednesday makes some investments in areas important to children, including 5,000 additional slots in N.C. Pre-K, a small salary increase for teachers (1 percent), a small appropriation for youth tobacco use prevention and cessation ($1 million, vs. $17 million a couple years ago), and funds for more foster care youth to benefit from higher education. However, the budget does not invest enough in children's programs to bring them back up to the levels before the recession. Over 3,000 teachers assistants in the 2nd and 3rd grade would be eliminated under the plan, in order to hire 1,800 teachers. The Governor also proposes to close five prisons in the eastern part of the state, as well as a detention center for youth.
According to our friends at the N.C. Budget & Tax Center, the budget assumes the current tax system would stay in place, which suggests the Governor is not prepared to support an overhaul of the tax system. His budget calls for the elimination of the estate tax, which means a loss of $52 million in revenue.
- Click here to read Action for Children's summary of the Governor's budget proposal
- Click below to see line-by-line breakdowns of the Governor's budget in:
The Senate budget proposal is expected by mid-May, soon after April 15 tax collection numbers are released, and the House's version after that.
Tax Reform Bills Filed The Legislature has started discussing tax reform with the filing this week of two reform-related bills in the Senate.The bills are expected to be followed by a larger Senate tax package in the next few weeks. - SB 363: Business Tax Reduction and Reforms would repeal the corporate franchise tax and instead levy a "business privilege tax" on all business with limited liability. The plan would also eliminate local privilege taxes, which the N.C. League of Municipalities opposes, estimating that cities would lose $70 million a year.
- SB 394: Lower Tax Rates for a Stronger NC Economy is a revenue-neutral, comprehensive tax reform bill that proposes a flat personal income tax rate of six percent and a corporate income tax rate of six percent for all businesses. The top personal income tax rate is currently 7.75 percent and the corporate income tax rate is 6.9 percent. The plan proposes lowering the state sales tax rate from 4.75 to 4.5 percent and broadening the tax to include more services. The bill also makes changes to the franchise and state and local privilege taxes similar to those proposed in SB 363 (above).
Unemployment Rate Increases Slightly
North Carolina's unemployment rate rose 0.1 percent to 9.5 percent in January, well above the national average of 7.7 percent. The state is adding jobs consistently, but the number of job-seekers is also increasing as people continue to move into the state.
Senate Leaders Introduce Second Public Education Reform Bill
Senate leader Phil Berger introduced SB on Tuesday, which would replace teacher tenure with employment contracts of up to four years (or one year for those employed fewer than three years), introduce merit pay, rework teacher and school evaluations, and reform reading instruction. The bill follows a school reform bill last session that addressed focusing on reading more in the early grades, among other issues.
Relevant Bills Acted on This Week
Key bills affecting children that were acted on this week at the General Assembly are listed below.
Health
Requires HHS to conduct a systematic Medicaid reform. Filed and referred to House Health and Human Services Committee.
SB 347: Study Unified Health System
Directs the Department of Health and Human Services to study the state's publicly-funded health system, including indicators of population health, the quality of available data about health and health services, an evaluation of the health services delivery structure and governance models (including mental health), and recommendations for strengthening North Carolina's system. Filed and referred to Senate Health Care Committee.
Child Safety
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. Passed the House, was received in the Senate and referred to the Senate Rules Committee.HB 217: Criminal Law/Procedure AmendmentsAmong other changes to criminal law, establishes that, upon motion by the prosecutor, juveniles alleged to have committed a Class B1 through Class E felony will be transferred to the superior court for trial, as in the case of adults. Currently, juveniles are transferred to Superior Court at the discretion of the judges; this bill would move that discretion to the prosecutors. The bill was heard in the House Judiciary B Subcommittee this week but no vote was taken. A vote is expected in the next couple weeks.SB 45: Incapacity to Proceed Amendments (H.B. 88) Makes changes in law regarding juveniles' capacity to proceed with a case. Passed the House with changes and was received in the Senate for concurrence. Will be heard on the Senate floor next week. HB 183: Allow Hospitals to Test Blood for DWIMakes blood and urine samples taken in hospitals admissible in adjudicatory hearings in juvenile court. Passed the House and referred to Senate Judiciary II Committee.
HB 17: Gun Permits/Confidentiality
HB 17, which was originally titled Gun Permits/Restaurants & Confidentiality, has been stripped of the section that would have allowed gun owners with concealed carry permits to carry guns in restaurants and bars. The bill now just calls for confidentiality of information about concealed handgun permits and pistol purchase permits. Passed second reading in the House; third reading scheduled for next week.This bill picks up HB 17's former provision to allow gun owners with concealed carry permits to carry guns in restaurants. It also makes it unlawful for felons to possess ammunition, any device intended to be used as a weapon, or any concealed weapon. Filed. HB 385: Youth Accountability Task ForceEstablishes a task force to determine options for transitional housing for delinquent juveniles exiting youth development centers, among other issues. Filed and referred to House Judiciary Subcommittee C. Education
Expresses the intent of the Legislature to move from funding textbooks to funding only digital learning media by 2017 and to set standards for digital competency for teachers and staff. Signed by the Governor.
Would allow charter schools to prioritize admission for siblings and children of staff. Passed second reading in the House; third reading scheduled for next week.
Would clarify that members of either household of a child in a homeschool have authority to determine the course of the schooling. Passed the House, was received by the Senate and referred to Senate Committee on Education/Higher Education. Also SB 189.
Requires the State Board of Education to take certain steps to improve education for children who are deaf or hard of hearing. H.B. 317 was referred to the House Education Committee.
Would end the requirement for certain education reports, including the disadvantaged student supplemental funding report, the state board report on personal education plans, and the child nutrition standards report, among others. Passed the Senate and received in the House.
Education reform overhaul that would add funding to the system, increase teachers' salaries, focus on reading, provide incentives for the lowest performing schools and much more. Filed and referred to House Appropriations Committee.
SB 361: Excellent Public Schools Act of 2013
Aims to maximize instructional time, strengthen teacher education programs and licensure requirements, establish merit pay, assign school performance grades and reform teacher contracts. Of particular concern to education advocates is the grading of schools based entirely on proficiency, rather than student growth, which could create a two-tiered system within the public schools. Filed and referred to Senate Committee on Education/Higher Education.
SB 374: NC Public Schools Budget Flexibility Act
Allows local school boards to more easily transfer funds to cover needs, and allows for class sizes to be increased at the discretion of the local school board. Filed and referred to Senate Committee on Education/Higher Education.
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.
Calendar and Events
Join us as we convene on behalf of N.C.'s children. The day will include an issues briefing, rally and opportunity to visit legislators. Click here to register.
Hands of Protection Second Annual 5K Walk, April 20th, Smithfield.
Walk to prevent child abuse.
Second Chance Lobby Day, April 23 rd from 9-5 at the N.C. Legislative Building Sponsored by the NC Second Chance Alliance Today is the last day for the extended early bird registration rate.
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