North Carolina Budget update, from the desk of Rep. Jon Hardister.

NC House Update - May 2015

This is an update on the work that we are doing in the NC House. Our focus over the last few weeks has been on the state budget. 

State Budget Moves Forward

This week the House passed a $22 billion spending plan for the coming fiscal year. The budget has now been sent to the Senate for consideration. After that, it will be sent to a conference committee where a final plan will be formulated. 

As you can imagine, crafting a state budget is a complex process. The original version of the House budget had too many tax incentives and overall spending was too high. Therefore, we took the initiative to scale-back spending and reduce the size of the budget.

Several tax credits were reduced or eliminated from the budget. We also reduced grants and decreased proposed fee increases. Taking this action resulted in a roughly $250 million reduction in spending. After these changes were made, I felt comfortable voting to move the budget forward.

For the record, I would like to see us move away from arbitrary tax credits and focus on lowering overall tax rates. As I've said before, the Historic Preservation Tax Credit is a logical exception (it is appropriate for the government to play a role in historic preservation), but most other tax credits should be phased-out. It is my hope that we can make this happen as the budget process continues.

Although the House budget is not perfect, it is an overall good plan. The budget will continue to be amended as it moves through the Senate and goes to a conference committee. When the process is completed, I am confident that we will have a responsible budget that funds the core services of government.

Here are some highlights from the budget:

• Provides a 2 percent pay increase for teachers, highway patrol officers and other state employees.

• Increases base pay for teachers from $33,000 to $35,000 (6 percent increase).

• Provides an increase in education funding to account for enrollment growth.

• Enhances K-12 textbook funding.

• Continues support for the teacher assistant program.

• Provides funding for teachers to move forward on the pay step system.

• Requires study of methods to utilize technology in classrooms.

• Restores medical expense deductions for senior citizens.

• Allocates more funding for Justice and Public Safety, which will support our justice system and promote the safety of our citizens (modernize courts, law enforcement training, replace outdated vehicles, etc.)

• Provides responsible capital expenditures in the UNC system (projects were prioritized according to necessity).

• Provides tuition assistance for veterans at UNC schools and community colleges.

• Provides funds to repair the historic Battleship North Carolina and sets aside funding to advocate tourism.

• Reinstates the Historic Preservation Tax Credit, which will help to preserve our history and generate investments.

• Allocates funds to modernize DMV operations, which will improve service to the public.

• Funds $2 million to complete the Union Square nursing school in Greensboro.

• Funds Medicaid enrollment without expanding the system.

• Sets aside $200 million for the Rainy Day Fund, which brings total savings to $851 million.

• Provides an additional $20 million for the NC Emergency Response system. 

Of course, I will provide you with updates as the budget process continues. I will only cast an affirmative vote on the final budget if I believe it is in the best interest of our taxpayers.