North Carolina State Board of Education

Legislative Reports

Title: Legislative News from Jones Street - July 31, 2009

Date: 07/31/09


Legislative News from Jones Street
July 31, 2009

Greetings from the office of the North Carolina State Board of Education.

The week culminated with both the House and Senate finance negotiators reporting they were close to finalizing a revenue package. Sources have indicated items being considered are a 3 percent surcharge on state income tax liability for married couples filing jointly with incomes of more than $250,000 per year, and a 2 percent surcharge for married couples filing jointly with an income range of $100,000 - $250,000 per year. The previous proposal was limited to a 2 percent surcharge that would have applied to all North Carolina state income taxpayers. The other items are reportedly left unchanged: a 1-cent increase in the sales tax, a tax on items downloaded from the Internet, a 10-cent per pack increase on cigarettes, an increase in the beer excise tax of 5 cents per 6-pack, a 4-cents per bottle increase in the excise tax on wine and a 5 percent hike in the tax on liquor.

Governor Perdue has communicated quite clearly that she would consider not supporting the budget if the class size increase remains in the proposed budget. The Governor is advocating for a discretionary cut. However, superintendents and school systems are strongly opposed to a discretionary cut.

A third continuing resolution was approved on Thursday (July 30). The continuing resolution has components that differ from the previous two: a) it allows those receiving state funds to use funds that are in agreement in the original Senate and House budget recommendations, b) it provides LEAs with the flexibility to use federal American Recovery and Reinvestment Act of 2009 (ARRA) funds to employ teachers, school personnel and others, and c) it has no expiration date.

The budget negotiators are working today (Friday) and have plans to continue through the weekend if necessary, with the hope of finalizing the budget and presenting it to their respective chambers during the Monday evening session. The Senate and House have indicated they would like to pass the final budget by the end of next week.

Bill Activity Week of July 27-31

* HB 23 Strengthen Child Labor Violation Penalties. Signed by the Governor, SL 2009-351.
* HB 187 Encourage Policies to Facilitate Graduation. Signed by the Governor, SL 2009-330.
* HB 192 Child Witness Testimony/Procedures. Signed by the Governor, SL 2009-356.
* HB 205 Lottery Act Changes. Signed by the Governor, SL 2009-357.
* HB 209 Sex Offender Registry/Liberties with Student. Received a favorable report in the Senate Judiciary I Committee.
* HB 311 Continue School Construction Funding. Presented to the Governor 7/24/2009.
* HB 412 Advisory Council on Indian Education. Passed 2nd and 3rd Reading in the Senate.
* HB 582 Special Education Changes. Signed by the Governor, SL 2009-331.
* HB 817 Establish NC Financial Literacy Council. Referred to Senate Committee on Judiciary I.
* HB 1078 Rept. Sch. Viol. to Superintendent/Reg. Notif. Policy. Presented to the Governor 7/28/2009.
* HB 1117 Sex Offender Can't Drive Bus with Children. Received a favorable report in the House Appropriations Subcommittee on Transportation, placed on calendar for 8/3/2009.
* HB 1274 State Health Plan Blue Ribbon Task Force. Passed 2nd and 3rd reading in the Senate.
* HB 1471 Counties & Schools Share P.E. Equipment. Signed by the Governor, SL 2009-334.
* SB 65 Amend Computer Solicitation of Child. Signed by the Governor, SL 2009-336.
* SB 346 Kannapolis Deannexation/Expedite Schools. Postponed to 8/4/2009.
* SB 860 Student Protection Fund/Proprietary Schools. Received a favorable report in the House Finance Committee, placed on calendar for 8/3/2009.
* SB 708 Amend the Compulsory School Attendance Law. Presented to the Governor 7/29/2009.
* SB 894 U/I School Teacher Related Amendments. Passed 2nd and 3rd Reading in the House.
* SB 955 Bicycle Lights at Night. Received a favorable report in the House Judiciary I committee, placed on calendar for 8/3/2009.
* SB 960 Ensure Accountability Re: Stimulus Funds. Received a favorable report in the House Committee on Energy, and Energy Efficiency, placed on calendar for 8/3/2009.
* SB 962 Probationary Teacher Appeals. Signed by the Governor, SL 2009-326.
* SB 1028 Volunteers to Support Acad. Success in School. Ratified.
* SB 1069 Joining Our Business and Schools Commission. Signed by the Governor, SL 2009-339.

We will be monitoring the budget as it develops and will post an update if there is tangible progress.

Chris Minard
Legislative Liaison
North Carolina State Board of Education




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