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Vajda: Eszter Vajda, Host
McCullen: Kelly McCullen, Legislative Week in Review
Henry: Johanna Henry, Legislative Week in Review
Easley: Governor Mike Easley
Betts: Jack Betts, Charlotte Observer
Black: Rep. Jim Black, (D) Speaker of the House
Hackney: Rep. Joe Hackney, (D) House Majority Leader
Kiser: Rep. Joe Kiser, (R) Minority Leader
Berger: Sen. Phil Berger, (R) Minority
Basnight: Sen. Marc Basnight, (D) President Pro Tempore
Michaux: Rep. Mickey Michaux, (D) Durham County
Adams: Rep. Alma Adams, (D) Guilford County
Rand: Sen. Tony Rand, (D) Majority Leader
Ross: Rep. Deborah Ross, (D) Wake County
Glazier: Rep. Rick Glazier, (D) Cumberland County
Garrou: Sen. Linda Garrou, (D) Co-Chair, Appropriations Committee
Smith: Sen. Fred Smith, (R) Johnston County
Foley: Lisa Foley, Driver
Davis: Charles Davis, Driver
Graham: Bill Graham, N.C. Conservatives United
Jenkins: Berry Jenkins, NC Go!
Miller: Sen. William Miller, (R) Forsyth County
Bland: Sen. Pete Bland, (D) Craven County
Spear: Rep. Timothy Spear, (D) Washington County
Smith: Barry Smith, Freedom Newspapers
Johnson: Mark Johnson, Charlotte Observer
Bolton: Kerra Bolton, Asheville Citizen-Times
Vajda: Coming up the General Assembly convenes with a surplus in revenues. And Governor Easley presents his proposals on how to spend it. We will also take a look at this session’s hottest issues and Johanna Henry meets a group fighting gas tax increases and others who say it won’t lower gas prices. That and more next.
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[THEME MUSIC]
Vajda: Good evening everyone, I’m Eszter Vajda.
McCullen: And I’m Kelly McCullen. Governor Mike Easley rolled out his near $19 billion budget proposal this week. We will crunch the numbers and hear reaction.
Vajda: Plus another bill to ban video poker machines is now in the hands of House members. But first we begin with what is on the agenda for the short session.
The session kicks off with extra cash for lawmakers to spend in a budget, bills left undecided from last year, and questions about House Speaker Jim Black will lead the House.
The 2006 session kicks off with questions about how recent investigations into the campaign finance activities of Speaker Jim Black will influence regular proceedings.
Betts: I think that the main thing that everybody is watching for is to see how this House functions given that its leader for the last three-and-a-half sessions is so strongly under fire.
Vajda: Jack Betts has been a member of the Capitol Press Corps and a columnist for the Charlotte Observer for three decades. He says things took a bad turn for the speaker after he helped squeeze the lottery through House chambers last summer.
Betts: Things seemed to go down hill after that with the revelations about a former staff member who worked for one of the lottery companies and one of the speaker’s nominees to the lottery commission turns out not to have disclosed that he had a business relationship with that company. And things have kind of turned sour for the speaker.
Vajda: Over the past few months the State Board of Elections held hearings into alleged campaign contribution violations and referred the case to the Wake County district attorney. But speaker Jim Black says that the investigations will not impact his leadership.
Black: We are going to have a great session. Our economy has rebounded because of the work we have been doing in the past creating jobs and helping companies that we already had to expand. That is what we are focusing on and that is what we will continue to focus on. That is my job. I have been speaker for eight years. I am still the speaker.
Vajda: Despite the speaker’s confidence, there is some question his ability to lead. He has been under close scrutiny by not only law enforcement officials but also the public. Several newspapers have called for the speaker to give up his gavel and members of his own party have called for the speaker to step aside.
Black: I am not going to be distracted. There are those who are trying to distract us but we are staying on track.
Vajda: Still some lawmakers say they are worried about the session.
Kiser: Well, I have never seen another session where there is so much uncertainty as we step into it.
Berger: I just think that it probably would be best for the State of North Carolina at this point for him to step aside, not necessarily resign all together but step aside. It has gotten to be a serious distraction.
Vajda: However long lawmakers stay this session, many agree that changes need to be made to the state’s campaign finance and lobbying laws.
Hackney: Well, I think there is a bit of a loss of confidence and I think we need to respond to it.
Vajda: To help ease some of the concerns, the speaker has set up a select committee on ethics and governmental reform to recommend changes to the General Assembly.
Black: We have some gray areas that are sometimes misunderstood. And we need to clarify the rules and regulations.
Vajda: House Majority Leader Joe Hackney co-chairs the committee. It is divided into three sub-committees: ethics, lobbying, and campaign finance. He predicts there will be a wide range of reforms this session on all of those fronts.
Hackney: There is a bill lowering the amount of cash that one can accept from $100 to $50. There is a bill regulating the use of campaign money, what you can use it for. There is a bill that addresses the problem about blank payee lines on checks.
Vajda: Another proposal would ban all gifts from lobbyists to lawmakers.
Hackney: It is likely that the committee will recommend a bill for no gifts from lobbyists, no dinners, no drinks.
Vajda: Other items on the table are a complete overview of laws surrounding so-called 527s, or electioneering communication which are tax-exempt groups and putting more teeth into ethics rules. But some lawmakers warn against too many restrictions on lobbyists and say there is no need to go overboard with campaign finance laws.
Kiser: You know I really believe that we have enough campaign laws if we will follow them and use common sense. I don’t know many people that have ever filled in the blanks on checks and I think we know that wasn’t right.
Vajda: The short session is also a chance for lawmakers to tweak the budget. Some predict a surplus this year, an amount that is still up in the air. So where will the extra money go? Lawmakers say much of it will be used to take care of business as usual.
Basnight: Well, education, economic development, mental health programs, employee salaries, teachers and state employees, repairs and renovations, the upkeep of our buildings, reserve for unforeseen emergencies that may occur or disasters.
Kiser: There are a lot of our departments with the increase in fuel prices of the schools for instance, running their school buses. It is going to eat a major hunk of that up. And by the time we get our budget made I expect things that are necessary are going to take a large part of that.
Vajda: Republicans are calling for budget writers to be fiscally responsible and for an end to the so-called temporary half-cent sales tax.
Berger: I’d like to see some consideration given to tax relief. You know we have been promising the people of North Carolina since 2001, or at least the legislature has been promising since 2001, when taxes were temporarily, so-called temporarily, raised that those were temporary taxes. And I’d like to see us keep those promises.
Vajda: But most Democrats say this is not the time to cut back on collecting revenues.
Basnight: You can repeal it but then you also repeal any of the initiatives that create jobs and opportunities in the state.
Vajda: Jack Betts adds that there will be some reforms to the way the budget bill is negotiated.
Betts: I think we will see at least for a period the end of orphaned appropriations that magically appear late in the session in appropriations bills. I think we will see that committees will be required to have checked off on every single appropriation. I think legislators will be given more time to study the budget bill before it comes to a vote on the floor. And I think those are all pretty good reforms that should have been done long ago.
Vajda: Most lawmakers agree this will be a short session but with these and other items still on the table some predict the session could go on well into the end of summer.
McCullen: A three-chair person rules committee will guide legislation through our State House this session. Speaker Jim Black’s triple appointment replaces former Rules Chairman Bill Culpepper. Representatives Mickey Michaux, Nelson Cole, and Mary McLawhorn run the committee. Rules Co-chairman Mickey Michaux met us on the House floor where he is the point man.
Michaux: What we want to do is come in and get out. We are pleased with the budget, you know, appropriations that we have but we know that we’ve got to do it right and we’ve got to come in here and get out and that is what, as rules said it, one of the things that I am going to be pushing for is getting our job done and getting out of here on time.
McCullen: A number of bills were introduced on opening day, among them legislation raising the state minimum wage by $1 per hour. House members passed a minimum wage bill last session but it was tagged onto a provision giving tax credits to help small businesses offer employee health insurance. The bill is still alive but Representative Alma Adams says the minimum wage deserves sole consideration.
Adams: I want to go back to that with a stand-alone bill that doesn’t get bogged down with other things, that people can really focus on and hopefully we can get the support to get it out.
McCullen: Opponents say a minimum wage hike will hurt small business.
Berger: There are a lot of people in small business who feel like that there is going to be a ripple effect of increase in the minimum wage so that if they’ve got someone who is not making minimum wage presently but would be at or close to what the new state minimum wage would be, that they will be forced to bump the salary of those people, may end up having to lay people off.
Vajda: In other news Republicans and Democrats in the Senate agree video poker machines should be banned in the state. Now this is the fifth time they have passed such a bill but in the past it hasn’t survived in the House. Critics say Speaker Jim Black has blocked attempts to bring it up for [a vote]. Proponents point to recent criminal activities in Cumberland County for a reason to ban it.
Rand: We thought it was important that we go forward now. We recently had an incident in Fayetteville where a million dollars in cash were seized. We just think it is time we get rid of video poker.
Vajda: Speaker Jim Black says he will allow the bill to be taken up in the House this session. Contributions made to the Black campaign from the video poker industry were one of the issues investigated by the State Board of Elections earlier this year. And that brings us to our question of the week: Should video poker machines be banned in North Carolina? Email us at LegWeek at UNC-TV.org and we will have responses next week.
A bill [House 1844] that sets up ethic guidelines for the executive branch passed a House Judiciary Committee. The measure aims at stopping conflict of interest between lawmakers and those they regulate. Bill sponsors say this is one of the most important ethic bills that will pass this session.
Ross: North Carolina is one of the only states in the country that does not have in law what the rules of the game are on ethics for its executive branch. We’ve done it by executive order, not every department has adopted the executive order. The executive order has not been fully enforceable.
Vajda: Under the measure lawmakers would have to go through mandatory ethics training. The bill is expected to be voted out of the House on Monday.
McCullen: The House Select Committee on sex offender registration laws outlines a recommendation for strengthening the state’s sex offender laws. The proposed bills would authorize satellite tracking of very high-risk offenders and require the Division of Motor Vehicles to check the national sex offender registry when drivers renew or receive new driver’s licenses. It would also force offenders to be photographed at least yearly and register in person at county sheriff’s departments.
Glazier: We don’t want to do anything that is unconstitutional. But there is a policy objective and you get to the point that you want to try to get the policy objective resolved and then make sure that the way you are remedying it is consistent with the state and federal constitution and we did that in this case.
GOVERNOR EASLEY’S BUDGET PROPOSAL
McCullen: Governor Mike Easley revealed his budget before lawmakers could open session on Tuesday. It is his first budget under a budget surplus and it focuses on education.
Governor Mike Easley’s opening day budget proposals aim at boosting public education spending by $6.7 billion on K-12, the universities and community colleges.
Easley: This is the strongest education budget ever seen in the history of North Carolina. And I think we have been able to make these investments because of our fiscal discipline, because of the way that we have held in the reins on spending and continued to make necessary cuts.
McCullen: Governor Easley wants an average 8% teacher pay raise for public schools. He also proposes funding for expected enrollment increases and more money for low-wealth school districts.
Easley: I think it is very important we continue to fund low-wealth school districts. They do need those dollars to attract and keep teachers. They need it also for other items in the schools.
McCullen: The Easley budget would give community colleges $807 million. It covers enrollment growth, offers 8% faculty and staff pay hikes, and $3.9 million for distance learning, that is an 8% funding increase. The UNC system receives nearly two-and-a-quarter billion dollars for enrollment growth, financial aid, and scholarships for nursing and teaching students. Easley proposes $4.2 billion for health and human services and includes $58 million for mental health reform and providing childcare for 96,000 children. But the governor expects some negotiation regarding mental health funding.
Easley: We will continue to work with the legislature on these issues. These issues are—mental health issues are very complex. There will be some give and take on that as we go forward I am sure.
McCullen: The governor calls for $1.8 billion to continue upgrading justice and public safety, $9.5 million for court personnel, $5.5 million for court technology, and $10 million for improving public safety communications.
Easley: We are increasing personnel as we need to; it is long overdue. But we don’t have to increase personnel as much as we would have if we had not made the investment in the technology.
McCullen: The governor also requests a freeze on gas tax increases and a one-quarter cent sales tax reduction. The budget proposal raises state employee salaries by 4%.
Vajda: The governor’s proposals now go to the Senate. Co-Chair of Appropriations Linda Garrou says overall she is happy with the governor’s version of the budget. Still the senator says there will be changes made to his version.
Garrou: Well, we would probably look at doing the income level which really affects small businesses and we know that we’ve got about 38,000 small businesses in North Carolina that file in that category. And we want to be sure that they know that we support what they are doing because we know they bring jobs and good things to the State of North Carolina.
Vajda: Meanwhile Republicans say the governor is not being fiscally responsible in his spending.
Smith: He said he wanted a spending cap of $5.6; he is spending almost 10% more which just totally makes the cap a joke. And I think that if we are going to be responsible to create an environment for jobs and for businesses we’ve got to have more discipline, we’ve got to have a better system the way we spend the taxpayers’ money.
Vajda: Once the Senate passes the budget bill it heads over to the House where members get to put their input into the process. Now as a matter of full disclosure, 45% of UNC-TV’s budget is funded by the General Assembly.
GAS TAX
About a thousand people gathered Tuesday in Raleigh near the legislative building to protest the state’s gas tax. Salisbury Attorney and North Carolina Conservatives United Chair Person Bill Graham held the event with music and barbecue. The rally ends a four-month petition drive. Graham says 70,000 people signed his anti-gas tax petition.
McCullen: Johanna Henry sat down with the key players on both sides of this gas tax debate.
Vajda: Johanna, what does this mean for North Carolina drivers?
Henry: Kelly and Eszter, the stop the gas tax folks rallied on Tuesday to roll back the tax to last year’s level. That would save you at least three cents for every gallon of gas that you buy. Now if you fill up your tank say 15 gallons each week that puts 45 more cents in your pocket. It may seem like only a drop in the bucket or the gas can, but that is not really the point they say. The state’s take of pumped up gas prices is fueling fury all around North Carolina.
Foley: I think about what else I could be doing with all of this money and you know I am like, “Oh that is a new pair of shoes or you know that is a nice dinner,” and I think, “Oh but it has to go for gas now.” Whereas before it used to go for other things, you know, more fun things definitely.
Henry: But is that the price we pay for paving and plugging pot holes?
Davis: It is what pays for the roads.
Henry: So do you mind it so much?
Davis: I don’t like the price of gas; it keeps going up. But I don’t think the tax has really gone up that much; it is a small part of the overall price.
Henry: It may be a small part of the price, but it is the part Bill Graham is talking about.
Graham: The public is not getting what they are paying for and that is fundamentally unfair and I think everyone knows it.
Henry: Bill Graham, a Salisbury attorney, is the chairman of North Carolina Conservatives United. The organization collected 70,000 signatures petitioning lawmakers to lower the gas tax. Graham says citizens are paying a high price for a poor product. In other words, drivers aren’t getting the roads they paid for. He says mismanagement is the real problem.
Or is it something that unfortunately the taxpayers are going to just have to eat, and if not the taxpayers, who can eat it?
Graham: The taxpayers ultimately bear the burden. But there ought to realize a benefit from the burden that they are bearing. Better management and a reasonable tax, I don’t think the people disagree with. But continuing to raise the tax on the people is just fundamentally unfair. If they don’t do something now we are going to have the highest gasoline tax in the country and yet we will drive on some of the worst roads.
Henry: By state law the gas tax is set at a flat rate of 17.5 cents per gallon plus a fluctuating rate that is 3.5 cents per gallon or 7% of the average wholesale price of motor fuel, whichever is greater. That number is recalculated every six months and now sits at 12.4 cents per gallon. Last week Governor Easley asked the General Assembly to freeze the variable part of the tax. According to the Department of Revenue the current state tax for every gallon of gas is 29.9 cents. It is money that is supposed to be used to build and repair North Carolina roads. Graham says that money is taking a detour.
Graham: They have raided the trust fund, the legislature has raided the trust fund to the tune of over $4 billion. They are not spending the money they are collecting from the pump on the roads. And we think that if they go back and revisit this formula, go back and look at the practices of raiding the trust fund for the highways, that we would see a lot better performance and value for the dollars that we are paying.
Jenkins: We would just hope if Mr. Graham doesn’t like the gas tax and thinks it is unfair, what is his solution, what is his answer? Recognize that we have to maintain our system. How would he suggest we do it?
Henry: Berry Jenkins is a founding member of NC Go!, an organization dedicated to improving funding for North Carolina transportation. He says no one likes a tax but cutting money to maintain roads is not the answer.
Jenkins: We’ve been so proud in North Carolina for many, many years of being known as the good roads state. We have used that motto over and over in North Carolina but we are rapidly approaching the point where I am not sure we can say that any more.
Henry: Jenkins says even ignoring cracks and small craters for a short time will be a big mistake.
Jenkins: A good analogy is just like if you start to have tooth decay; you can go to a dentist and get the cavity filled but if you don’t do that and you neglect it, pretty soon you are talking about a root canal, a crown, or dental implants.
Henry: The folks at NC Go! would like you to remember the next time you stop for gas, the change you pay at the pump might be the most fair way to tax those who use our roads the most.
Jenkins: The gas tax is based on the number of gallons you consume, you know, at every fill-up and that is a reflection of how many miles you drive. Typically that likely reflects the weight of your vehicle; the more the weight of the vehicle the more gas you will use, so you are going to pay a higher amount of money. So it is a very fair tax.
Henry: North Carolina has a higher gas tax than Virginia, South Carolina, Tennessee, and Georgia. But Jenkins says that is not an apple-to-apple comparison.
Jenkins: Somebody said it is a orange and orangutan—it is even bigger than an apple and an orange.
Henry: North Carolina has the second largest state-maintained highway system behind Texas. Jenkins says other states get their highway money from property taxes, higher new car sales tax, and other fees. This chart from the Department of Motor Vehicles shows that if you compare the cost of owning and driving a car in North Carolina, Virginia, South Carolina, Tennessee, and Georgia for one year and add in gas tax, sales tax, registration and other fees, South Carolina is the cheapest state at $180.70. But North Carolina comes in second at $305.63.
And while some drivers may fill up in Virginia or South Carolina instead of stopping inside our borders, Jenkins says we are a state with many tourists and some still fill their tank here and help pay for the roads they just used.
Jenkins: The gas tax that is being questioned, that is the only way we have to collect any money from folks that are driving through our states and using our road system.
Henry: But until gas prices drop, NC Go! says the state tax may be the scapegoat for drivers’ frustration over fuel prices. Since the state has a $2 billion surplus, Bill Graham announced at the rally he would like to see at least half of that money given back to the gas taxpaying citizens. Back to you.
LEGISLATURE RENNOVATION/NEW SENATORS
McCullen: The Senate opens session with a new look this week, it is the first chamber renovation since the current legislative building opened back in 1963. A white background now replaces those familiar golden rings, the Senate seats are monogrammed, and Senators may purchase them when they leave office to take them home. This whole process took eight years from design to finish.
Rand: While it was wonderful when it was done, it was time for it to be re-done and so we are delighted that we have been able to do it and we have done it with North Carolina vendors—all of the furniture in the chamber is made in North Carolina and we think now it is a very good representation of North Carolina furniture which we think is the finest in this country.
McCullen: The 2006 short session opened with three new lawmakers. They have different reasons for serving but they all tell me they are ready.
New Forsyth County Senator William Miller arrives in Raleigh to replace late Republican Senator Hamm Horton.
Miller: He’s always done a great job and you know we considered him as a legend and he has a legacy that we have to live by.
McCullen: Senator Miller admits he is a temporary senator; he does not want the permanent Senate seat.
Miller: I was not interested; I had an agenda to come in and serve for any long time as a senator here in Raleigh.
McCullen: Former Craven County Sheriff Pete Bland leaves retirement to replace former Senator Scott Thomas. Thomas resigned when Governor Easley appointed him district attorney of Craven, Pamlico, and Carteret Counties.
Bland: All my life I have been in public service and you know it has just kind of been in the position of helping people. If you are going to be a lifelong policeman you have got to like folks, you have got to feel like you are doing some good for humanity.
McCullen: Senator Bland Tice’s professional background into the local issues affecting the second district—
Bland: We’ve got our jobs in our district, you know, we can’t just live on tourism alone and development, you need jobs. Jobs will prevent crime. Jobs will help people have a way of life. Jobs will bring up the living standards.
McCullen: Representative Timothy Spear replaces former House Rules Chairman Bill Culpepper. Culpepper left to serve on the North Carolina Utilities Commission.
Spear: It is very hard to follow in Mr. Culpepper’s steps. You know he was a permanent member here and rules chair, had been here for 13 years. There is no way I can fill his shoes; I will not even try to do that. But I do look forward to representing the people of the district.
McCullen: Spear says he has received his committee assignments and is ready for his new job and responsibility to the House’s second district.
Spear: Well, I hope to be able to establish a good working relationship with my fellow legislators and a good rapport. I think working together I can be successful here in the General Assembly.
McCullen: Last week Eszter sat down with House Speaker Jim Black and House Minority Leader Joe Kiser. They talk about issues surrounding the speaker’s campaign contributions and the short session agenda.
INTERVIEW WITH SPEAKER JIM BLACK
Vajda: Speaker Jim Black thanks so much for being here today.
Black: Thank you for the opportunity.
Vajda: Over the past few months the State Board of Election has held hearings into your campaign contributions. Some members of your staff have been investigated for lobbying. What is your reaction about everything that has been going on?
Black: Well, I’ve been very busy appointing study commissions and preparing for the session coming up. We have a number of study commissions that are concentrating on education and improving our state while others are out looking for a way to take North Carolina backwards we are moving forward and I have been very busy with those things. I have cooperated fully and the investigation by the State Board of Elections and there has not been any problem that has really come to fruition as far as those that are trying to make those things happen.
Vajda: Let me stick to this subject for just a little bit. Some have called for your resignation and have called this whole situation a distraction to this session.
Black: I have not been distracted; I have continued as I just said at appointing study committees, getting ready for the session. That is the important thing going on in North Carolina that we continue to stay on target and to stay on focus and that is what we are doing. We are going to have a great session. Our economy has rebounded because of the work we have been doing in the past creating jobs and helping companies that we already have to expand. That is what we are focusing on and that is what we will continue to focus on; that is my job. I have been speaker for eight years, I am still the speaker. I am going to preside during the short session and I am running for re-election. So I am not going to be distracted. There are those who are trying to distract us but we are staying on track.
Vajda: How do you keep—how do you plan on rallying the troops and keeping everyone behind you and focusing on the issues this session?
Black: Well, doing exactly what I have been doing; I’ve been traveling over the state, meeting with legislators in their districts, listening to their constituents, and I haven’t been distracted. Some are distracted but I have not been. I just continue to do the job as speaker of the House as I have done for eight years. And just last week the Democratic caucus confirmed me overwhelmingly, they asked me to stay on the job and continue to focus on this session. That is what we have been doing.
Vajda: All right, let’s talk about some of the issues that will be coming up—the budget, there is a projected $1 billion surplus, a lot of people vying for that money. Where do you want that money to go?
Black: Well, we want the majority of it to go to education and of course it is not really a billion dollar surplus. We are—that money is already earmarked for enrollment growth and the ABC bonuses and of course we want to give teachers and state employees a long-overdue pay raise; we want to get our teachers to the national average as soon as we can. We ought to really be above the national average because North Carolina shouldn’t be average when it comes to education. We need to be moving ahead of all of the other states in this nation. Ours is a great state and we need to prove what a great state we are.
We are also working on healthcare issues. We need better quality, more accessible healthcare available to all of the people of our state, not just a few who are wealthy folks but all of our people need good, quality healthcare.
We need to focus on the environment to make sure that we are keeping a healthy environment. We are going to be clarifying some rules and regulations, campaign finance reform, ethics reform, we have some gray areas that are sometimes misunderstood and we need to clarify the rules and regulations so that we all are operating within the rules and we know what they are.
Vajda: Speaking of campaign finance, you appointed a committee with three sub-committees; what are some of the things that you hope this body passes this session?
Black: Well, for one thing we will clarify the payee line on checks—they will need to be filled in completely as they go from contributor to candidate; that is one of the things that has come to light that there is some question about. But it is clearly within the law to do that but if we need to change the law that is what we need to do. And I wish we could do something about the 527s and the individuals who don’t have any limits at all and can spend just huge amounts of money. So we just need to clarify some areas and I have declared six months ago that I would not accept gifts from lobbyists and you know I haven’t suffered a bit from that. Others can do that if they want to until we clarify the rules. If we pass legislation declaring that illegal then that will have to stop. Things like that.
Vajda: Going back to the budget for just a second, would the surplus however much it will be, some are saying that this is the year the half-cent sales tax should be repealed, the temporary sales tax that was passed in 2000; what is your opinion on that?
Black: Well, that is, it is one issue that will be on the table. And some say this is the year that we get our teachers to the national average. Some are saying that this is the year that we do something about mental health reform. Mental health is very, very important to those of us in this state who govern that care about our people. Some say this is the year to improve on healthcare to get everybody under the umbrella of good, quality healthcare. So there are some that say we should invest and then there are some that say and want us to give the money back, stick it deep in our pockets and just let our state continue on status quo.
Vajda: Some have criticized the budget process because of provisions that don’t really have anything to do with the budget and also the time reviewing the appropriations bill. Would you be doing something different this session?
Black: Well, there will always be people who criticize the budget process; if they are writing the budget then they are going to be critical. We are going to give plenty of time for people to look at the budget. You know, we are going to go in session on May 9th, there is nothing to keep people from going to the appropriations committee meetings every day. If you really want to know what is in the budget, there is not anything that keeps you from going there. You shouldn’t wait until the last minute. It is like waiting until the last minute to study for an exam. You know you need to get ready. You can find out anything that is in the budget by going to the budget meetings and I would suggest that people do that. However, we are going to give people—most of the time we gave people 24, maybe 48 hours—we will give them plenty of time to study what is in the budget. That doesn’t mean we are going to let people unravel the budget and keep us here until Christmas; we need to be finished as soon as possible and get back to our families and communities.
Vajda: With all the recent happenings, are you going to approach session in a different way than you did in prior years?
Black: I approach every session in a different way from prior years because it is a different session. The revenues sometimes come in under projection and you have to make a lot of cuts. This year our revenues are coming in over projection and we can do some things that have been on hold for a long time.
Vajda: All right, Speaker Black thanks so much.
Black: Thank you.
INTERVIEW WITH REPRESENTATIVE JOE KISER
Vajda: Representative Joe Kiser thanks so much for being here.
Kiser: It is my pleasure.
Vajda: What are some of your priorities in this legislative session?
Kiser: I think we have a medical crisis in North Carolina and I, with medical insurance and doctors’ bills and hospital bills and I have seen lately some polling that says that it is the number one thing in North Carolina, even more important than education in some polls now.
Vajda: Now last session the minimum wage passed in the House but didn’t quite make it to the Senate. What do you think is going to happen this year with the minimum wage?
Kiser: I don’t know but I have been doing a lot of talking to people in my district and I can’t find a lot of people who would be involved with minimum wage. The main thing would be waitresses and they are, have tips that come in. You know for nine years—my last nine years of teaching—I was a vocational education teacher and I placed people out on jobs. Raising the minimum wage—and it happened in those nine years—makes it more difficult to place people who are in entry-level work and I am sure that students and part-time help are going to be the ones that this would hurt the most.
Vajda: Turning to the budget, there is a billion dollar plus projected surplus. How do you recommend that money be spent?
Kiser: Well, first of all I am not sure that there is a billion dollars there. I have seen $600 million and I have seen a billion, but I can tell you that I think a lot of our departments with the increase in fuel prices, the schools for instance running their school buses; it is going to eat a major hunk of that up. And by the time we get our budget made I expect things that are necessary are going to take a large part of that. So I think we’ve got to be careful before we spend too much money.
Another area that is falling greatly behind is our court system and our public safety areas. And district attorneys are at work hollering out there for more help, clerk of courts, and you know as North Carolina grows these have to grow just like if school systems have to grow. In the justice and public safety area this has not happened.
Vajda: The temporary half-cent sales tax, there has been some talk of that. Should we repeal or extend it, what do you think?
Kiser: Well, that is one issue that Republicans feel real strong about and I would hope that we could do something in that area.
Vajda: Now let me ask you about the lottery; this is the first time that we have had the lottery up and running and there is going to be some money available from that. How will you make sure that the funds coming from the lottery will not supplant programs that are already existing?
Kiser: That is what I said on the floor would happen and I think it is going to be very difficult to do that. I would like to see someone introduce a bill to make this a true education lottery and say that the money from it goes to education. There are some counties that have some real problems with the way the school construction is—money from the lottery is to be distributed. And that needs to be looked into as well.
Vajda: Where do you propose that money come from?
Kiser: You know in the lottery a certain amount of it is dedicated to school construction. But I will give you an example. In Catawba County—they are about the same size as Alamance County—and Catawba County commissioners tell me that in their case they get half as much money for school construction because their tax rate is low and Alamance’s tax rate is higher and they have the same number of students in the system and that doesn’t seem right to me.
Vajda: Now your colleague, Speaker Jim Black, has been under some scrutiny, he is being investigated by the State Board of Elections and with possible federal indictments. What is your opinion on what is going on?
Kiser: Well, I think there is an investigation of video poker going on and you know it is being a former sheriff it is not likely that people who are in law enforcement are going to talk about ongoing investigations but I can tell you that my experience has been that when there is an investigation that is running for four years or longer, then it is an expanding investigation and that they are probably getting people—more people into it all the time or they would bring it to a close.
Vajda: How do you feel about his decision not to step down?
Kiser: That is a decision that should be made by the Democratic caucus and not the Republican caucus.
Vajda: Now do you think all of this attention on Speaker Black is going to distract from what is going on in the session?
Kiser: Well, I have never seen another session where there is so much uncertainty as we step into it. Some people will tell you it is going to be a short session, others will tell you it is going to be a long session. I don’t think anyone knows the answer to that question. You know we have a new rules chairman coming on; our rules chairman has left. And I am just wondering myself what is going to take place here.
Vajda: Now the Republican Party is also facing some issues with Representative Richard Morgan and some of the attacks against him with the upcoming election. Some political observers say that the political feuding going on will hurt the Republican Party, what do you think?
Kiser: Of course it will hurt the Republican Party. And it ought to come to a conclusion. You know back during this past session we all voted together and some people didn’t think that could ever happen again but we did on several important issues. And I thought we had turned the corner until the primary came up and then we started going after people’s jugular veins.
Vajda: As minority leader, what do you plan to do to rally the troops this session?
Kiser: Well, we have certain things that I still hope that the Republicans hold dear to their hearts and that is a physical responsibility.
Vajda: Representative Joe Kiser thanks so much for being here.
Kiser: Been my pleasure.
McCullen: Next week Eszter speaks with Senate President Pro Temp Marc Basnight and Senate Minority Leader Phil Berger.
Vajda: For more analysis of this week’s happenings, Kelly talks with three members of the Capitol Press Corps.
ANALYSIS SEGMENT
McCullen: Joining me now Barry Smith with the Freedom Papers, Mark Johnson, the Charlotte Observer, and Kerra Bolton, Asheville Citizen-Times. Well, let’s start this thing off, Barry, talking about Governor Easley’s budget—it came out actually before session was called on Tuesday. Size up the speed for us.
Smith: It came out about a couple of hours before the gavel was going to drop on Tuesday; I don’t know how significant that is. It kind of—some people were talking about well this is going on at a time when there is kind of a cloud covering the General Assembly because of all of the scandals during the interim. The budget is the budget; people are more interested in the details I think than the timing.
McCullen: How about you Mark?
Johnson: Well, I think actually the most overlooked and significant aspect of the governor’s press conference about his budget was the fact that he had a press conference the day before so two days in a row the governor made a public appearance and given his history that was actually fairly unusual. But you know the most notable things were obviously the quarter cent in the sales tax which was sort of scaling back an increase that is now in its what fifth year I guess. And so he is trying to—you know he is responding to calls from Republicans and within his own party and from the public to some degree that if you’ve got extra money give some of it back to the public.
McCullen: Kerra, what piqued your interest about Easley’s budget?
Bolton: Well, if you look at a budget from a policy standpoint position, I mean he had a number of things in there, money for the repairs and renovations, 8% increase for teachers, pay increase for teachers, for us in the west we are interested in the mental health reform and there was about $90 million for that. There were a number of other things, small environmental things, that we were looking at in the west and so I mean it, you kind of, it sort of expanded what his normal policy has been which has been education and you know, that is—he has been known as the education governor, I suppose. And so I think the budget basically says that. But if you have a $1.8 billion surplus it is kind of hard to you know—it is easy to spend when you have money. I know that when I go to the mall it is much more easy for me to buy things, buy cute outfits, when I have money as opposed to when I don’t. And similarly it is easier to put together a good budget when you have the money to spend.
McCullen: Barry what do you think about that budget proposal? You’ve been through it, it is about an inch-and-a-half thick, tabbed and—
Smith: I’ve been through some of it and still wading through a lot of it. Like Kerra said there are some taxes, tax cuts that again the sales tax that is supposed to sunset next year. Well, I mean it was supposed to sunset three or four years ago but you know they kept postponing it. It is supposed to sunset next year. Half of that according to the governor would go ahead and sunset this year. I think, one thing the governor, and I think a lot of the Democrats in the legislature don’t want to see a repeat of 1994 when Republicans said well we have this big budget surplus and they spent the whole thing. So at least they do want to be able to give some of it back.
Johnson: And they are throwing in a lot of caution there, certainly the administration. And I think some of the leadership that okay, this is a rosy year—we’ve gotten this leftover money. It is not going to happen again next year. And in fact if you break down the full budget surplus, a lot of that money is one-time revenue, it is not going to be back next year. And they are concerned not only about that but the fact that the revenue growth projections for next year are considerably lower than this year so they are trying to calm the irrational exuberance I guess over having that extra money.
McCullen: Well, Kerra let’s talk about that. We—Marc Basnight has been out there, met with the media, talked a little bit about where he wants to see the revenue spent or tax cuts, didn’t seem too keen on the idea of cutting taxes right now despite Easley and despite some folks in the House. How do you size up that dialogue that will be going on in the legislature?
Bolton: Well, it is always that argument. If you cut taxes then you have less money for education programs and some other things that they want to spend money on. So I, you know it is an old argument for a new year. The one thing we didn’t mention was the gas tax repeal that the governor included in his budget and also a proposal to increase the minimum wage. And so those are two hot topics that it seemed like the governor wanted to get in front of before the legislature and his critics continued to sort of rant about that.
Johnson: Right. And the freeze on the gas tax, mind you, he brought up after only just a few months after saying he would not eliminate the increase in the gas tax that took place in January. I mean they were very adamant in January saying well you know we are not going to cut that three cents that was tacked on now. But suddenly it is okay to put a cap on the gas actually and not allow the next freeze so having a little fun there.
Smith: There have been some bills introduced also that would actually roll back the gas tax not just cap it, some legislative Republicans have done that. One that would roll it back I think about four cents a gallon and it would take it back to fall of 2004 tax rates and that is that variable rate on the tax rate that goes up and down kind of based on the wholesale price.
Another thing I think is significant while we are talking about the gas tax and roads is there is a decrease in the transfer that would go out of the highway trust fund to the general fund. I think that is $195 million decrease and again that has been kind of a long-standing type issue that comes up every year. People say we need to quit transferring money out of the highway trust fund into the general fund. Again the highway trust fund goes to pay mainly for loops and some maintenance and that sort of thing. General funding pays for general government purposes.
McCullen: What do you think of Easley’s proposal on that, Barry? You’ve followed this issue pretty closely over the years.
Smith: Well, I tend to think with the governor’s leadership that is probably going to, that is probably going to get enacted—at least some form of that. I don’t know that that is necessarily going to satisfy everybody because you are still going to have a transfer—I think you are still going to have about a $55 million transfer this year and I asked the governor the other day when he announced that and you know he is not being real committal as to whether he wants to keep at least part of that transfer from happening every year. It is kind of a one-time thing, at least for right now.
McCullen: Kerra I see, I see priorities being the same from all the chambers talking. There are different amounts in terms of the money spent, the priorities, mental health you touched on which is a very big topic, still hasn’t been narrowed down. Where do you see the easiest common ground being made between the negotiators and the executive branch?
Bolton: I think education is going to be clear. I think we are going to see the 8%, maybe 7%, for a pay raise for teachers. That is something they are all in agreement about. I think we will definitely see, we will definitely see some state employee pay raises. I think there will be an agreement there. I think there might be disagreement on how much to do that. I think those sort of very basic things that they all agree on will probably be the easier things. When you talk about tax cuts I think that is where you get into thornier ground.
McCullen: Mark is there a slam dunk issue on that that is going to be passed in terms of pay raises, the 8% for teachers at university and community colleges?
Johnson: I don’t know if you could set a figure as being a slam dunk, but there definitely there will be a raise. You know another area of agreement I would throw in would be the ethics reforms, you are going to see a lot of agreement in both chambers. Where you will probably see the biggest fight actually goes back to the sales tax cut because you have leaders in the Senate who said, “Look well when that was raised back in 2001, we raised the sales tax and the top income tax bracket. If we raise them together we lower them together.” So they are saying those have got to be linked. And the governor acknowledged the other day that that is going to be a struggle for him.
McCullen: Barry?
Smith: I think there will also be some people who want to see small businesses get tax breaks and corporate income tax, even if we do that, most small businesses are not corporations, or at least don’t pay that corporate income tax. I think some people want to see some credit, some way for small businesses to be able to affordably give their employees health insurance. And I think maybe we are going to see something along that come in. So I don’t know how these tax cuts are going to work out. And kind of back on the issue of pay raises, I have heard some state employees say, “Wait a minute, teachers are getting 8%, we are only getting 4% in the governor’s budget.” There could be some conflict there, too.
McCullen: What about what Barry says, Kerra, about state employees not versus teachers but with a pay raise involved they stand to get more again than the rank-and-file state employee?
Bolton: Well, Dan Gerlock seems to say that if you look at state employees and their rate of compensation and their rate of education levels, that they actually get paid more than teachers do. And so this somehow in their minds is an equalizing factor, at least is a weighty factor in giving teachers more of a pay raise. But you know whenever anything wrong goes in the state when it comes to education, the number one thing they say is we need to raise teacher pay to national average; we need to take care of the teacher shortage. And I think they feel compelled, especially during an election year, to do so.
Smith: I think one thing we might see regarding teacher pay raises this year, Senator Basnight mentioned this last week. We might see an effort made at least to pay math and science teachers more than other teachers are getting paid because there is a shortage of math and science teachers. And if you think of, you know, if you think of your basic economic laws well if you’ve got a shortage of teachers well then you need to raise the pay to get them in. And apparently we do have a shortage, at least in some areas of our math and science teachers. And a lot of that is because people who are qualified to teach math and science, well they can make more money in other areas in our economy.
McCullen: What about the staggered pay increases so to speak, wearing your columnist hat, or if you have one?
Johnson: Well,, yeah I mean the argument in favor of course is the teachers’ raise gets down to you get what you pay for in that we are transitioning to an information/knowledge-based economy so the future depends on kids’ education. And if you pay teachers less than they are going to get in other states and less than other sectors of the economy then what caliber of individuals are you going to attract to that—I mean fairly common sense argument. Will it go through at 8%? Hard to say but I mean it seems likely that teachers will get some significant bump higher than rank-and-file state employees.
McCullen: Let’s switch gears to the House. We have triple co-chair, or of the rules committee replacing Bill Culpepper—size that one up.
Johnson: I would say that Bill Culpepper must feel a big compliment that it takes three people to replace him. I don’t know I mean you’ve got three, you know three of us sitting right here talking about this stuff and you can find just about any issue we would disagree on. I would think that the same thing would happen among chairs of committees, so it just seems like a complicated process. But it is interesting, in the House there are three rules committee chairs and another person who is the majority leader, four people, and in the Senate all of those roles are played by one person so we’ve got an economy of scale here.
McCullen: Well, the word is that it was done in the name of success and efficiency. What do you think Kerra?
Bolton: Well, I think if you look at it from a political standpoint it satisfies three different caucuses within the House Democratic caucus. It satisfies women with Mary McLawhorn, it satisfies the conservative base which would be Nelson Cole, and of course the African-American caucus which would be Mickey Michaux and so it is a very smart strategic move in terms of making sure that you keep your caucus together in times where things may not be so unified on the inside. So it is—I mean I don’t know, I am not saying that they aren’t but it is a way to keep everybody together and singing on the same page.
Smith: I really agree with Kerra on this one. I think that—actually her one Republican after this came out, in fact I was talking to one Republican last week and he hadn’t heard the news yet and I told him and he said, “Well, you know what, I believe that if the Democrats retain a majority in the House, Jim Black may actually continue to be speaker because of his ability to bring those factions together.”
McCullen: Kerra let’s talk about video poker.
Bolton: Video poker.
McCullen: You’ve been following this one very closely?
Bolton: Yeah I mean I have because of the angle of the eastern band of Cherokee in western North Carolina, not because I like to play because I don’t but—
McCullen: How well do they follow this issue?
Bolton: They are following it very, very closely. And their point is this, you know, they want to make sure that they can retain their rights as a federally-recognized tribe and so anything that comes out in video poker—in this case it doesn’t ban the machines at Harris Cherokee Casino. And they recognize that this is a legislative process that they have to decide. So they don’t really take a position on the debate itself.
McCullen: You know the poker debate has various facets—the west watching how the Cherokee, or watching how this issue plays out—what about everywhere else with the Senate getting it through, is it going to happen this year, Mark?
Johnson: It certainly stands a better chance than it has in the past. What is striking is that the Senate on the second day of session has basically made this pretty rude gesture to House Speaker Jim Black right off the bat in that four times the Senate has passed a ban that has gone over to the House and either he has blocked it or it has been gutted, watered down to something else. I mean he is the one, he has been the chief defender of the video poker industry all along. And so now we are in this year in which there are federal and state investigations that have touched on him or his office. The State Board of Elections has accused him of breaking the law so I mean you know politically he is down and the Senate clearly sees this as an opportunity to ram this through and they may be right.
McCullen: Barry, your thoughts?
Smith: Well, I think there isn’t a whole lot of opposition in the Senate to it. I think some of the opposition in the state to it other than the people who want to play it and the businesses who want to continue in their business, some people feel like what you are actually doing is you are taking away the competition, the gambling competition, from the state. I mean if you don’t allow for video poker then you have your state-run gambling, the lottery, and about the only other gambling you have is the Cherokee casino. And so you are going to take this ability of the people who want to put a quarter in a machine and maybe gamble a little bit, they are not going to be able to do that.
McCullen: How do you see House leadership standing on this one as this issue moves over?
Bolton: Well, I’ve, not necessarily with leadership but at least with the western North Carolina lawmakers, I’ve asked them if they would support a ban and they said, “We would if it came to the floor.” And I said, “Well, would you advocate for it to come to the floor?” Like, “Oh, well we have other stuff to do.” So it is interesting. So they are saying we will support a ban if it comes to the House floor but we are not going to advocate for a ban.
McCullen: And the minimum wage; finally Governor Easley wants 85 cents, others want a dollar. What happens to this issue as we negotiate it forward?
Johnson: Well, I think the governor made it clear in some of this remarks the other day he was not, you know, ironclad set on the 85 cents. It looks like you know something would go through; there may or there may be some kind of agreement where it has to be attached with the tax relief. But there is, you know, there is a lot of push for that. It is interesting, Senator John Edwards who last year was pushing for a minimum wage increase in just about every state except his own, is actually going to make an appearance Monday on behalf of the effort here so even he has gotten on board.
McCullen: Ten seconds Barry.
Smith: I think it is probably going to pass and I think I agree with Mark and usually Mark and I disagree on things but I agree with Mark. I think it will be attached to some sort of tax relief.
McCullen: Last word to Ms. Bolton.
Bolton: Oh the woman always gets the last word. I think that you know it is going to pass. And I think that there are going to be some tax cuts for small businesses as a sweetener.
McCullen: Good to have you, Barry, Mark, Kerra. See you soon. Thanks so much for joining us.
Vajda: That is going to do it for our show.
McCullen: We will see you next time, bye-bye.
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