The Daily Southerner, Tarboro, NC

State News

June 30, 2009

House OKs stopgap spending; no budget

RALEIGH — The state House on Monday night approved a spending measure to keep North Carolina government running while giving the Legislature extra time to approve a more detailed plan for the next two years.

The House voted 93-23 to allow Gov. Beverly Perdue and state agencies to spend even though there’s no final budget in place once the new fiscal year begins Wednesday.

“We have not yet reached any agreement on the budget. So we’ve got to keep state government operating,” said Rep. Mickey Michaux, D-Durham, senior co-chairman of the House Appropriations Committee and a chief budget negotiator.

The bill returns to the Senate, which must accept the House changes or do some quick negotiating. Perdue must sign it into law.

The biggest difference between the House and Senate versions is how long they last.

The House version would expire July 15, giving the two sides two more weeks to work out a plan. The Senate version sets no expiration date.

House Democrats prefer a shorter window because they believe a deadline will speed up compromises on the chambers’ tax and spending plans. Another stopgap plan could be approved if there’s no agreement by July 15. The Senate doesn’t want to waste time on another extension.

“I certainly we hope we won’t be doing it over after two weeks,” said House Speaker Joe Hackney, D-Orange.

There was certainly no urgency late Monday. The Senate adjourned before the House passed the stopgap plan and went home. Such extensions aren’t unusual since the Legislature hasn’t approved a budget bill by July 1 since 2003.

The House’s temporary plan also adds proposed tuition increases that would take effect immediately at the state’s community college system. They are likely to generate more than $40 million in additional revenues next fiscal year.

All “no” votes Monday night came from Republicans, some of whom were concerned about the tuition increase.

“I don’t want to be raising their fees ... if I don’t feel we’ve done everything we can in the budget realm to prevent having to go back to the struggling students,” said Rep. John Blust, R-Guilford, who voted no.

Democrats in both chambers still remain at odds over how to raise nearly $1 billion in additional taxes.

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