House Approves Budget

After over 10 hours of debate and consideration of nearly 40 amendments, the House of Representatives approved a $19.3 billion spending plan by a margin of 72-47 and sent it to the Senate late last week. Five Democrats joined the House Republican caucus in approving the measure.  Elected officials must balance the budget while facing an estimated $2.5 billion shortfall between projected and actual revenues collected.  In contrast to Governor Bev Perdue's proposed spending plan, revealed in February, the entire House budget spends roughly $600,000 less and allows for the expiration of the temporary sales and income tax increases on July 1, 2011 as mandated when enacted in 2009.  Governor Perdue's proposal extended three quarters of the 1 cent temporary sales tax increase.  Click here to access the complete text of the budget, House Bill 200.  Click here to access the accompanying money report document.

With a Republican majority in both the House and Senate, the dynamic between the legislature and Democratic Governor Bev Perdue, who must approve the final spending plan, promises to be interesting.  If the budget is vetoed by Governor Perdue, the legislature can attempt to override her veto by a 3/5ths majority vote of each chamber.  The Republicans in the Senate have the necessary numbers (a 31-19 majority) to override a gubernatorial veto; however, House Republicans have a slimmer, non-veto proof majority (68-52).  The number of necessary votes needed in the House to override a veto is 72, which makes the five Democrat votes for the spending plan this week critical to the Republican's agenda.  It is anticipated that the Senate will move quickly to approve their own version of the budget, with Appropriations Committee meetings already scheduled for this week.  The Senate's spending plan is expected to vary from that of the House, and a joint conference committee with members from each chamber will be appointed to hammer out the differences.  Once a final budget is complete, the legislature will send the document to Governor Perdue for her approval.

Redistricting

Following the decennial collection of the U.S. Census data in 2010, state lawmakers are undertaking the laborious process of redrawing the U.S. House, N.C. House and N.C. Senatorial districts from which public officials are elected in order to ensure equal representation by population.  Although North Carolina saw the fifth highest numeric population increase since 2000, it was not enough to warrant an additional congressional district.  The General Assembly is close to completing their series of public hearings to accept public comment on the redistricting process.  After a series of statewide public meetings, there is a final public hearing on Monday, May 9 at 4:00 p.m. in 643 Legislative Office Building.  Click here for more information on the redistricting process or to submit written comments online.

Annexation Reform

An expected vote on a measure to reform the way property owners are involuntarily annexed by municipalities was stalled last Thursday in the House Finance Committee.  The committee discussed House Bill 845, which has the support of anti-annexation groups, and ran out of time to vote following a lengthy debate on how to address lower income neighborhoods that wish to be annexed.  The measure, which has already been approved by the House Rules committee, is expected to be heard again this week.

Municipal Broadband

The House gave final approval to a measure last week that loosens territorial restrictions for municipalities that own and operate internet broadband systems.  House Bill 129 seeks to "level the playing field" between the five cities in North Carolina that have chosen to compete with private communications providers.  The bill, which aims to ensure that taxpayer monies are not subsidizing private industry competition, now heads to Governor Perdue's desk.

For more information, contact:

Allison Waller, Policy Advisor
allison.waller@nelsonmullins.com
 Mobile: 704.957.3728 | Office: 919.329.3883 | Fax: 919.877.3799