Legislators to finish budget today

By NICOLE CARTRETTE

The final vote on the state budget is expected today. The $18 billion-plus piece of legislation will reach the governor’s desk this afternoon or tomorrow, officials said.

Medicaid relief

A one-time cap of the Medicaid county share emerged from a tug-of-war between differing Senate and House proposals. An estimated $537,225 is Columbus County’s portion of the relief.

If the House had won, Columbus County would be one of several counties, with a high Medicaid eligible population, sharing $34 million in additional targeted relief.

“A freeze at 2005-06 levels is better than no relief,” Columbus County Commission Chairman Kip Godwin stated in a press release. Godwin indicated the county was appreciative of Rep. Dewey Hill and Sen. R.C. Soles, Jr.’s hard work.

“We only wish the other members of the House and Senate could have been as supportive of permanent Medicaid relief for counties or, at least, temporary targeted relief for the hardest hit counties, like Columbus,” Godwin said. “The cap will have very little impact” on the county budget, he said.

The county budget appropriates $5.4 million for Medicaid. The program is likely under-budgeted by $400,000, “even with the new cap”, Godwin said.

“We have set up a study commission to resolve the issue,” Soles said.

Close license office

The Tabor City driver’s license office is one of 13 Department of Transportation (DOT) offices that will close under the budget.

Two new mobile units priced at $460,000 will be purchased for the DOT.

Soles said one of the units will be used in Tabor City and offer more services than what is currently available in Tabor City. Driver’s license and license plate services will be available.

District Attorney

Judicial district 13 (Brunswick, Bladen, and Columbus) will receive additional funding to provide for an additional assistant district attorney.

Special appropriations

Local organizations didn’t get any special appropriations from the short sessions budget compromise because the Speaker did not allow any, Hill said earlier this week.

The Columbus County Arts Council, the Chadbourn Depot, the N.C. Forestry Museum, the town of Sandyfield, and the Town of Bolton are among those who will likely have to look for those appropriations in the long session.

Although amendments may be made to the budget, Hill said funding cannot be moved from one major area to another. He said if money is designated for education it must stay in education.

Hill explained that there will be some amendments proposed to the budget, but “ninety-nine percent will fail.”

Pay raises

An 8-percent average salary increase for teachers is included in the budget.

In October 2005, the American Federation of Teachers ranked North Carolina 23rd with an average teacher pay of a little more than $42,000.

A survey conducted by the organization reports that compensation for teachers from 1994 to 2004 increased at a slower rate than other professionals after factoring in inflation, said a press release dated Oct. 6, 2005.

A 6-percent salary increases, on average, and one-time 2-percent bonuses go to community college faculty. Most other state employees receive a 5.5 –percent pay increase.

“It’s never enough,” Soles said, indicating it was better than past salary increases.

Tax cuts

The 7-percent sales tax decreases by one-fourth of a cent on Dec. 1. Consumers will now pay a 6.75 percent tax on purchases due to the state’s portion dropping from 4.5 percent to 4.25 percent.

Income taxes drop from 8.25 to percent to 8 percent for those in higher income brackets.
Small business owners are eligible for a $250 tax credit per employee for health insurance coverage.

Landfill moratorium

The House stood its ground on landfills and succeeded in taking the landfill moratorium out of the budget. The Senate backed the proposal to impose a two-year moratorium on new landfills in the state.

Soles and Hill both indicated they do not want North Carolina to become a dumping ground for other states.

Soles said that there is momentum in the legislature to pass the moratorium in a bill separate from the budget.

“The fact that it hasn’t passed doesn’t mean it won’t pass,” Soles said.

Gas tax

Capping the gas tax was controversial, Hill said. At one point the measure was out of the compromise only to be put back in later.

Drivers will pay no more than 29.9 cents per gallon in state taxes at the capped rate now in the budget.