Legislative Reports
Title: Legislative News from Jones Street - July 24, 2009
Date: 07/24/09
Legislative News from Jones Street
July 24, 2009
Greetings from the office of the North Carolina State Board of Education.
Many of you have most likely been trying to decipher the news media accounts of exactly what is happening with the budget process at the General Assembly and the governance issue at the Department of Public Instruction. On Thursday, July 23, following caucuses by both the Senate and the House, the majority of the members of the General Assembly were under the assumption that there was an agreement of a finance package that would provide the needed $990 million revenue for the $19 billion proposed budget. The tentative agreement called for a 1-cent increase in the sales tax, a 2 percent surcharge on personal and corporate income tax liability, a tax on items downloaded over the Internet, a 10-cent per pack increase on cigarettes, an increase in the beer excise tax of about 5 cents per six-pack, a 4-cents per bottle increase in the excise tax on wine and a 5 percent hike in the tax on liquor. The sales tax hike was estimated to raise $803.5 million of the total needed for the proposed budget. Also, an income tax surcharge of 2 percent on state income tax was proposed. Governor Perdue called the Senate and the House leadership early Friday and stated that she would not support a plan with an "across-the-board" income tax surcharge that would "raise income taxes on the working families and the middle class" and "without an additional $200 million to plug public school cuts." The development halted the passage of a state budget.
Following the Governor's announcement, the Senate stated they would "start over." Sen. David Hoyle, Sr. Finance Co-Chair of the Senate Finance Committee stated they would develop a new revenue plan. The House made similar conciliatory comments.
Both chambers adjourned and planned to begin meeting anew on Monday, July 27.
Historically, as painful and difficult as the 2009 budget process and legislative session appears, it is not without precedence for the biennium budget process to linger into August or September. According to legislative statistics from 1965 through 2008, provided by Gerry Cohen, director of the Bill Drafting Division of the General Assembly, one regular session adjourned in April; two in May; three in June; 12 in July; four in August; one in September; and the longest - 2001, extended from Jan. 24, 2001-Dec. 6, 2001.
The second major event that impacts the Department of Public Instruction was the ruling on the governance issue. Superior Court Judge Robert Hobgood ruled on Friday, July 20, that the North Carolina Constitution gives state schools Superintendent June Atkinson authority to run the Department of Public Instruction. Dr. William Harrison was named the Chief Executive Officer of the Department of Public Instruction by Governor Perdue shortly after she assumed office. Judge Hobgood stated, "The General Assembly and the State Board of Education do not have the power, without a constitutional amendment, to deprive the duly elected superintendent of public instruction of her inherent power as chief administrative officer of the State Board of Education." The judge's ruling meant the role of Chief Executive Officer was null and void. Dr. Harrison was appointed to the North Carolina State Board of Education and unanimously elected the Chairman of the State Board simultaneously with the appointment as CEO of the Department of Public Instruction. Following the judge's ruling, Dr. Harrison issued a statement announcing his retirement effective Aug. 31, 2009 from the position of CEO of the department but will continue as Chairman of the North Carolina State Board of Education.
Governor Perdue and the attorneys from the Attorney General's office are reviewing the judge's ruling and have not yet decided if there will be an appeal.
Bill Activity Week of July 20-24
* HB 23 Strengthen Child Labor Violation Penalties. Ratified, presented to the Governor.
* HB 192 Child Witness Testimony/Procedures. Ratified, presented to the Governor.
* HB 311 Continue School Construction Funding. Ratified.
* HB 385 Pub Sch Activity Bus Use/Stecoah Valley Ctr. Ratified.
* HB 412 Advisory Council on Indian Education. Placed on House calendar for July 27, 2009.
* HB 661 City Managers on School Boards. Signed by the Governor, Ch. SL 2009-321.
* HB 804 Amend Law Re: Personal Education Plans. Conference Committee appointed.
* HB 1078 Rept Sch Viol to Super./Req. Notif. Policy. Senate committee substitute concurred in House.
* HB 1452 Local Government Code of Ethics. Passed 3rd reading in the Senate. Placed on House calendar for July 27, 2009.
* SB 65 Amend Computer Solicitation of Child. Ratified, presented to the Governor.
* SB 658 Modify Supp. Retirement Board/Furloughs. Ratified.
* SB 689 Modify DPI Reptg. Reqts./Bldg. Code/High Sc. Signed by the Governor, Ch. SL 2009-305
* SB 708 Amend the Compulsory School Attendance Law. Placed on Senate calendar for July 27, 2009.
* SB 894 UI/School Teacher Related Amendments. Re-Referred to House Committee on Finance.
* SB 960 Ensure Accountability Re: Stimulus Funds. Passed Senate 2nd and 3rd readings. Passed 1st House reading. Referred to House Committee on Energy and Energy Efficiency.
* SB 969 Amend Purpose/Child Placing/ Child Care Laws. Passed 2nd and 3rd readings in the House.
* SB 1069 Joining Our Business and Schools Commission. Ratified, presented to the Governor.
* SJB 1108 4-H Program 100th Anniversary. Ratified, Ch. Res 2009-28.
We will update you as the budget and the finance package continues to be developed.
Thank you.
Chris Minard
Legislative Liaison
North Carolina State Board of Education
Title: Legislative News from Jones Street - July 24, 2009
Date: 07/24/09
Legislative News from Jones Street
July 24, 2009
Greetings from the office of the North Carolina State Board of Education.
Many of you have most likely been trying to decipher the news media accounts of exactly what is happening with the budget process at the General Assembly and the governance issue at the Department of Public Instruction. On Thursday, July 23, following caucuses by both the Senate and the House, the majority of the members of the General Assembly were under the assumption that there was an agreement of a finance package that would provide the needed $990 million revenue for the $19 billion proposed budget. The tentative agreement called for a 1-cent increase in the sales tax, a 2 percent surcharge on personal and corporate income tax liability, a tax on items downloaded over the Internet, a 10-cent per pack increase on cigarettes, an increase in the beer excise tax of about 5 cents per six-pack, a 4-cents per bottle increase in the excise tax on wine and a 5 percent hike in the tax on liquor. The sales tax hike was estimated to raise $803.5 million of the total needed for the proposed budget. Also, an income tax surcharge of 2 percent on state income tax was proposed. Governor Perdue called the Senate and the House leadership early Friday and stated that she would not support a plan with an "across-the-board" income tax surcharge that would "raise income taxes on the working families and the middle class" and "without an additional $200 million to plug public school cuts." The development halted the passage of a state budget.
Following the Governor's announcement, the Senate stated they would "start over." Sen. David Hoyle, Sr. Finance Co-Chair of the Senate Finance Committee stated they would develop a new revenue plan. The House made similar conciliatory comments.
Both chambers adjourned and planned to begin meeting anew on Monday, July 27.
Historically, as painful and difficult as the 2009 budget process and legislative session appears, it is not without precedence for the biennium budget process to linger into August or September. According to legislative statistics from 1965 through 2008, provided by Gerry Cohen, director of the Bill Drafting Division of the General Assembly, one regular session adjourned in April; two in May; three in June; 12 in July; four in August; one in September; and the longest - 2001, extended from Jan. 24, 2001-Dec. 6, 2001.
The second major event that impacts the Department of Public Instruction was the ruling on the governance issue. Superior Court Judge Robert Hobgood ruled on Friday, July 20, that the North Carolina Constitution gives state schools Superintendent June Atkinson authority to run the Department of Public Instruction. Dr. William Harrison was named the Chief Executive Officer of the Department of Public Instruction by Governor Perdue shortly after she assumed office. Judge Hobgood stated, "The General Assembly and the State Board of Education do not have the power, without a constitutional amendment, to deprive the duly elected superintendent of public instruction of her inherent power as chief administrative officer of the State Board of Education." The judge's ruling meant the role of Chief Executive Officer was null and void. Dr. Harrison was appointed to the North Carolina State Board of Education and unanimously elected the Chairman of the State Board simultaneously with the appointment as CEO of the Department of Public Instruction. Following the judge's ruling, Dr. Harrison issued a statement announcing his retirement effective Aug. 31, 2009 from the position of CEO of the department but will continue as Chairman of the North Carolina State Board of Education.
Governor Perdue and the attorneys from the Attorney General's office are reviewing the judge's ruling and have not yet decided if there will be an appeal.
Bill Activity Week of July 20-24
* HB 23 Strengthen Child Labor Violation Penalties. Ratified, presented to the Governor.
* HB 192 Child Witness Testimony/Procedures. Ratified, presented to the Governor.
* HB 311 Continue School Construction Funding. Ratified.
* HB 385 Pub Sch Activity Bus Use/Stecoah Valley Ctr. Ratified.
* HB 412 Advisory Council on Indian Education. Placed on House calendar for July 27, 2009.
* HB 661 City Managers on School Boards. Signed by the Governor, Ch. SL 2009-321.
* HB 804 Amend Law Re: Personal Education Plans. Conference Committee appointed.
* HB 1078 Rept Sch Viol to Super./Req. Notif. Policy. Senate committee substitute concurred in House.
* HB 1452 Local Government Code of Ethics. Passed 3rd reading in the Senate. Placed on House calendar for July 27, 2009.
* SB 65 Amend Computer Solicitation of Child. Ratified, presented to the Governor.
* SB 658 Modify Supp. Retirement Board/Furloughs. Ratified.
* SB 689 Modify DPI Reptg. Reqts./Bldg. Code/High Sc. Signed by the Governor, Ch. SL 2009-305
* SB 708 Amend the Compulsory School Attendance Law. Placed on Senate calendar for July 27, 2009.
* SB 894 UI/School Teacher Related Amendments. Re-Referred to House Committee on Finance.
* SB 960 Ensure Accountability Re: Stimulus Funds. Passed Senate 2nd and 3rd readings. Passed 1st House reading. Referred to House Committee on Energy and Energy Efficiency.
* SB 969 Amend Purpose/Child Placing/ Child Care Laws. Passed 2nd and 3rd readings in the House.
* SB 1069 Joining Our Business and Schools Commission. Ratified, presented to the Governor.
* SJB 1108 4-H Program 100th Anniversary. Ratified, Ch. Res 2009-28.
We will update you as the budget and the finance package continues to be developed.
Thank you.
Chris Minard
Legislative Liaison
North Carolina State Board of Education