Weekly Legislative Update
Overview
Lawmakers continued filing legislation this week amid an increasing pace of committee meetings and budget reviews. Governor Beverly Perdue (D-Craven) is reportedly close to publishing her recommended budget and will address a joint session of the General Assembly next week. Governor Perdue signed into law legislation needed to allow for appointment of her selection as Chair of the Board of Education this week. At the Legislature, bills prohibiting smoking, appointing Commissioners to the Utilities Commission, and dealing with local issues advanced in the process.
The State Budget remains the focus of the legislative process as lawmakers continued hearing presentations from State Government agencies this week. The agencies are working to minimize cuts to their budgets as North Carolina faces a widening financial shortfall. The presentations at joint meetings of Appropriations Subcommittees were held on a wide range of topics this week. The reviews come amid anticipation that Governor Perdue will publish her budget recommendations for next fiscal year in the coming weeks or days. Usually, a Governor's budget will be published to coincide with a State of the State address to a Joint Session of the General Assembly. This year, Governor Perdue is scheduled to address the General Assembly on Monday, March 9th when the Senate members will join their House colleagues in the House chamber.
Governor Perdue's remarks are likely to be dominated by economic and budget concerns. The Governor's staff has been preparing lawmakers, state agencies, and interested parties for a budget that makes deep cuts to current funding levels. The Governor's office most recent target has been a reduction of $3.6 billion from the current year budget, a cut of nearly 20%. The Governor has also hinted that new taxes on cigarettes and alcohol may be included in the budget recommendations. Outside of the State budget, the Governor's remarks will likely also take note of increasing unemployment in the private sector. The latest reports from the Employment Security Commission of North Carolina measured the state unemployment rate at 8.7%, the highest rate since June 1983.
Governor Perdue signed into law legislation (Senate Bill 198) that will accommodate her appointment of a new Chair of the State Board of Education. At a signing ceremony in Raleigh this week, Governor Perdue voiced her support for the newly appointed Chair and Schools CEO Bill Harrison. The legislation was needed because current law restricted the number of school employees who can be members of the Board of Education. Mr. Harrison is also the head administrator of Cumberland County schools. The legislation has been the subject of an obscure but growing dispute between Superintendent June Atkinson (D-Wake) and the Governor's Office. In response to the legislation, Superintendent Atkinson has asked the General Assembly to clarify her role as the sole leader of schools in North Carolina, suggesting that the appointment of Mr. Harrison is a usurpation of her role as a statewide elected official. In news recent news reports Dr. Atkinson has suggested that the change may prompt a lawsuit or at the very least should be put to the voters in a Constitutional amendment. Despite Dr. Atkinson's objections the legislation passed overwhelmingly in the House and Senate, and was signed into law by Governor Perdue as her first legislative act as Governor.
Outside of budget meetings, legislative work was light this week aside from action on a handful of local bills. Local bills are those that affect the laws of fewer than fifteen (15) counties, and often deal with changes in one city or town. Under North Carolina's relatively centralized governance of counties and municipalities, local issues ranging from weed ordinances, golf cart regulation, annexation, and charters, among others, must be approved by the General Assembly. Unlike public bills, local legislation does not need the signature of the Governor to become law.
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.