Budget Goes To Governor

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Budget Goes To Governor

Special Report - June 22, 2012
The State Legislature has sent its 2012 budget to Governor Beverly Perdue (D), after both the House and Senate gave final approval to a compromise budget bill early Thursday afternoon. Governor Perdue has 10 days to decide whether to sign or veto the budget. Should she veto it, the House and Senate would each need to garner a three-fifths majority—72 representatives and 30 senators—to vote to implement the budget over her veto. The $20.2 billion plan is the result of negotiations between House and Senate leaders to develop a single budget using pieces of the House proposal and the Senate proposal.

The House voted 71–45 to approve the compromise version of HB 950—Modify 2011 Appropriations Act. The Senate approved the compromise budget by a 30–15 vote. Original versions of the budget, drafted by each chamber, passed the Senate and House by 30–19 and 73–46 votes, respectively.

Among the highlights of the negotiated budget are:

Providing 1.2 percent raises for teachers and state employees without using one-time funds.
Capping the state gasoline tax at 37.5 cents per gallon, lower than the current 38.9 cents per gallon, for one year.
Budgeting an additional $274 million for Medicaid and setting aside $100 million in a Medicaid reserve fund.
Earmarking $3.5 million for elementary literacy programs as part of $27 million to implement many of the education reforms included in SB 795—Excellent Public Schools Act.
Higher education scholarships and financial aid, including $4.5 million for need-based scholarships for private school students and $18.6 for need-based financial aid for UNC system students.
Requiring local school districts to identify $360 million in discretionary cuts.
Cancelling $143.3 million in local school district budget cuts and restoring $251 million in previous education cuts.

Notable absences in the budget include:

The absence of compensation for victims of North Carolina’s former forced sterilization program.
The absence of a scholarship funding corporate tax credit laid out in
HB 1104—Scholarships Funding Corporate Tax Credit.
Ends funding for the North Carolina Teaching Fellows Program.

Related resources:
Budget Conference Underway - June 18, 2012
Senate Approves Education Reforms - June 5, 2012
House Approves 2012 Budget - June 4, 2012
Education Committee Approves Reforms - May 30, 2012
State Spending At Highest - May 18, 2012
Governor Vetoes State Budget - June 13, 2011
House Passes State Budget - May 6, 2011
House Takes Up Budget - April 29, 2011
Legislative Highlights - April 21, 2011