Legislative Update from Rep. Frank Iler – July 30, 2013
Last week started early for legislators in both the House and Senate. The House, which normally meets for session on Monday at 7:00 P.M., actually met last Monday at 4:00 P.M. Most of us had meetings and caucuses earlier in the afternoon to attend. Therefore, many had to leave for Raleigh by 9:00 A.M. It was just a taste of the long daily sessions, which would last until Friday.
The budget was finally agreed to by the House and Senate conference committees, and came to the House floor for final approval. Senate Bill 402 – Appropriations Act of 2013 is the budget for the biennium, the two year period from July 1, 2013 to June 30, 2015. It outlines spending in all departments of government. It totals $20.6 billion for 2013 – 14 and $21.0 billion for 2014 – 15. This is an increase of 2.7% and 4.5% respectively over the $20.1 billion previous fiscal year 2012 – 13 actual spending. To say the budget is cut when it has an average increase of 2.25% per year is incorrect. There are provisions that many of us don’t like, but the vote is a yes or no on the entire package, not each item. A budget that provides for the essential services of state government and gives our average hard-working families a tax break earned my vote, and it passed its final vote Wednesday by 65 – 53.
Within the budget, the biggest expense is education, which is 56% of the total budget at $11.5 billion for 2013 – 14 and $11.7 billion for 2014 – 15. Education in kindergarten through 12th grade makes up the biggest part of that at $7.9 billion and $8.0 billion per year. K – 12 spending is increased over 2012 – 2013 actual spending by 2.1% in 2013 – 14 and 4.5% in 2014 – 15. Again, this is not a cut, but an increase, which is in line with student enrollment growth and inflation. One big item that should benefit all educational institutions, including community colleges and universities is the elimination of the Management Flexibility Reduction or “Flex – cut.” This was a shell game played in previous budgets that said we will fully fund your enrollment growth, but during the year we expect you to send back from 2% to 5 % of your funds. This budget is designed to stop that practice.
Another major part of the budget that is usually unknown by the average citizen is the growing Medicaid payments number, but it is right there in the Health & Human Services budget under Medical Assistance. The prior budget of $3.1 billion was actually overspent at $3.5 billion in 2012 – 13. The budget had to be increased to $3.5 billion in 2013 – 14 and $3.6 billion in 2014 – 15. This explosive increase of almost a billion dollars in the next two years took much-needed funds that could have been used in education or other vital areas.
Many other important bills that had been in the works for the last six months came up for final votes last week. House Bill 74 – Regulatory Reform Act of 2013 changed a few of our most restrictive regulations. House Bill 589 – Election Reform created the voter photo ID, which most states now have. It also changed about 50 items in the 1000 page election law book to fall in line with most states. One is same day registration, which very few states have and which gave the local board of elections too little time to verify the legality of registrations. The human trafficking bill passed unanimously. The immigration bill, which I could not support, passed and may be vetoed by Governor McCrory. House Bill 937 – Amend Various Gun Laws passed 73 – 41 and was sent to the Governor.
It was a long week with sessions lasting past midnight and an unusual Friday session, but we adjourned for the year, unless we are called back for veto overrides. I will attempt to communicate as needed on our activities in the NC General Assembly. Thanks for all your comments on these articles.